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RESTRICTED Report No. PS- 1 Public Disclosure Authorized This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. ,t,--, I I T T I XTT TT/%1IT tYl I 'TI-E TNT" ?T7T I 'ITt-%%T I T YN?!1 7TO7 SL4QLAr!T %S'OIA TIO LINI K1r.xNA±I.& .JiN&L 1. VM rLAW.Jr1JYiJN i A I'LL.) Public Disclosure Authorized ENGINEERING SERVICES FOR THE KARNAFULI AND MUHURI IRRIGATION PROJECTS EAST PAKISTAN Public Disclosure Authorized May 15, 1970 Public Disclosure Authorized Special Projects Department CURRENCY EQUIVALENTS US$ 1.00 = Rupees (Rs) 4.762 Rs 1 = US$ 0.21 Rs 1 million = US$ 210,000 WEIGHTS AND MEASURES 1 .mnvnvu = 0.037 lg~ tons nOT n C A'OV Khal - Small natural water course Kharif - Summer (wet) cropping season Rabi - Winter (dry) cropping season DAVtTOAW. EINGE ING SERVILrC. rFO" tn URoiAtuA DI A3D "UT1UWIDY PROJECTS&DUTIATd ftA 1"Y " 1 %IS LABI. OFr CUflE'ILD Page No. SUMMARY AND CONCLUSIONS . ................. ....... 1 I. INTRODUCTION ................................................ 1 II. BACKGROUND ................ .. * .............. 1 III. THE KARNAFULI AND MUHURI IRRIGATION PROJECTS ..... 4 Karnafuli Project -- Halda Unit ............. 5 VAirnaftil4 Prn4p-t -- IThAmAtl 1n4t-, ----- 8 Muhuri Project ........... .................. 8 Status of Project Preparatio-n ...... ... .... 10 Need for Engineering Services ...... ......... 11 IV. THE ENGINEERING CREDIT . ............... ....... ... 12 Cost Estimate and Financing ................. 13 Disbursements ............................... V. ?lIOqYDTYT'A'VTf%?l fAD q43D flflI^lP.0UT %WeTM11PW-0r?I, inmDv it1 VT. JUSW 7CAUMA TION& OFleEp^PST ttIER. RDT.' VI. *sa.,ru.Arwa...,a.UT DVf~f?.a,1VbTtA~TI~?l~ , o.. ............................* * .. ..... IL...' ANNEXES 1. Time Chart 2. Engineering Services -- Outline of Terms of Reference 3. Consulting Firms 4. Cost Estimates 5. Benefits and Costs of Karnafuli Project 'na r This report is-based on the findings of an IDA appraisal mission to East Pakistan in November 1969, composed of Messrs. P. Kirpich and R. Marma, both of whom contributed to the report with Mr. Kirpich having primary responsibility. PAKISTAN ENGINEERING SERVICES FOR THE KARNAFULI AND MUHURI IRRIGATION PROJECTS SUMMARY AND CONCLUSIONS i. This report sets forth the appraisal of a project for engineering services for the Karnafuli and Muhuri irrigation projects located in East Pakistan. An IDA credit of US$2.4 million is proposed to cover the esti- mated foreign exchange cost of these services. The Government of the Pro- vince of East Pakistan would provide local costs at an estimated value of US$1.4 million equivalent. ii. The Karnafuli irrigation project would provide flood prevention and dralnase in an area of 131.000 acres and irritation in a net area of 55,000 acres. The Muhuri irrigation project would provide flood prevention and drainAae In an areA of 101;000 acres and irrieation in a net area of 42,000 acres. iii. A feasibility study of the Karnafuli Irrigation Project, com- pleted in4 Mn--y 196, roviJydesa nvn adequate has4n fnor pnmatljgpro4ert costs. On the basis of comparable projects in East Pakistan, the Bank is s…tisfied that the likely benefits from …^d…row…Ath… pro4ect a satisfactory economic justification. The May 1968 report is however incomplete ith ~~~~.esett(a)-dairag facJ444-ites(b proved meth^Aa o£ 4rr4-afi4^ .....n..o.u~.. - ", &c&40 ~%A4t4 S -WO - 44-.5 distribution, (c) project organization and (d) returns to and repayment -A-4l 44e4 oc par:i 4 c4pating4 famera. J. t. 4.4LqJ6 UJ.A* & &"aI&u iV. S fessi bD.L..J'iy s:uty of &I .uLAUiJ Irriga:ion rJ , da:4ed .&auMy 1967 is incomplete with respect to the same four items mentioned in the foregoing pOagra&pu& in addiJ:ir …a ZJfC: , u U.4"aU4.L.L6AWA9 U 04..AIUUWLL %ULJ.UULWL LLU& ihJU the project area of water for irrigation needs working out. The Bank feels. u& te '.LJe.WJ.y U=LLrL.L%.s froUm t;,,e project wou.Pl verIheJ pLUVide 8a s- tisfactory economic justification. v. Besides being economically Justified, the Karnafuli and Muhuri proJects are at a relatxvcly auvanceu stage of pruparacon anu can proceau Lo construction more quickly than the many other projects in the Province that b.s-ve beer. studied In recent years. Mne Lwo prQijectu wuJU w reuver cone ituee initial steps in the development of further, similar projects, ultimately cv-ver.u uver a mu..ioun acres, in the southease region or Lus rrovince. A single consulting group, comprised of a Pakistani and an expatriate firm would provide hec engineering services for the future as will as the initial two projects. vi. The largest single part of the credit--$1,100,000--would be for ehe Karnafuli project; of tnis $200,000 wouid ce ror revision of tne reasi- bility study and $900,000 would be for the preparation of tender documents and final designs. The tender documents would be prepared concurrently with the feasibility study revision (completion of both expected April or May 1971) while the final designs would proceed imxediarely tnereafter. This procedure would enable construction to start December 1971; the time saved Would 'ie at least a year but.. it: could amour. to as uch as two ears depending upon how rapidly subsequent steps are executed. Thus if tendering __ . _ ._ J1 bs* ___ c -- 4U4kX 1 4 .. .. .. .Ls posUtponUU5U unLl. afterL completo of I.L&W L==*5LU.LA.LUYl 6Wy LCV&=V a.LV4U, LSLOUUULI a year's delay would be entailed; if further postponed - until after detailed appraisal and grant;Lng of a con.struction. credit--the delay would be 'wo years. Vii. nu Ocounu LarK25L parLt of tlhe credLL ---Y±l,VVO,UU--WOULU DC for the Muhuri project; $200,000 would be for revision of the feasibility study and ?800,000 for tender documents and final designs. Tne feasibility study revision would take until about March 1972, which, for the reasons previous- ly mentioned, requires a longer period of time than for Karnafuli. An inter- im report enabling tender documents and final design to proceed would be issued August i97i; this would enable construction to start December i972. viii. Tne remainder of the credit--$300,000--wouid be for preliminary study of a scheme to transfer water from the Dakatia River to the Muhuri River via the Little Feni River. Since ultimately such a scheme would be of benefit to a considerable area--perhaps as much as half a million acres located in adjacent project areas known as "Comilla-Noakhali" and "Little Feni"--it would be necessary to carry out reconnaissances, prepare prelim- inary designs and plan the staged development of such a scheme. ix. In the event that either IDA or the Bank should subsequently assist in financing of the Karnafuli or Muhuri Irrigation Projects, con- sideration could be given to the refinancing of the proposed engineering credit from the proceeds of such subsequent credits or loans. When and if such credits or loans are being examined, consideration should also be given to financing feasibility studies for the Comilla-Noakhali and Little Feni projects. x. Past IDA financing of water development projects in East Pakistan has involved a total of US$25.05 million for four projects: Dacca-Demra (11-PAK, US$1.0 million), Brahmaputra Embankment (39-PAK, US$5.0 million), Chandpur I (40-PAK, US$5.25 million), Dacca Southwest Engineering (S-8, US$0.8 million) and Chandpur II (184-PAK, US$13 million). In addition the Association jointly with the United Nations Development Program (UNDP) has financed the foreign exchange cost (US$4 million) of general consultants to the East Pakistan Water and Power Development Authority (EPWAPDA), the princi- pal body charged with development of the water and power resources of the Province. Since September 1967 the Bank has established a special Group to Assist East Pakistan in its agriculture and water developement program in- cluding the selection of water prolects for the Fourth Plan. - iii - xi. The proposed project would have a total cost of US$4.6 million equivalent including contingencies. Cost data is based on the time-during which experts of various skills would be required. The work would be car- ried out by a joint venture of a Pakistani consulting firm and an expatriate consulting firm. The terms of reference of the joint venture would require a progressive shift of design work activities from outside to within East Pakistan. The joint venture has been selected following evaluation of proposals and the relevant contract would be subject to the approval of the Association. The general consultants to EPWAPDA would assist in supervising the contract. xii. The project is suitable for an IDA Engineering Credit of US$2.4 million, for a term of 10 years including a grace period of 2 vears. The Credit would cover the estimated foreign exchange requirement which amounts to 52% of the total cost. The local cost would be provided by the Government of the Province of East Pakistan. The Borrower would be the Central Government which would make the proceeds available to the Provincial Government. I PAKISTAN ENGINEERING SERVICES FOR THE KARNAFULI AND MUHURI IRRIGATION PROJECTS I. Introduction 1.01 This is the second engineering credit proposed for a prolect in East Pakistan combining water control (flood prevention, drainage, irriga- tion and navlgation) with agricultural inputs. A previous such engineer- ing credit, No. S-8 for the Dacca Southwest Irrigation Project, was approved by the Executive Direetors of the Association on December 9. 1969. 1.02 This report In hased on feaeibilitv studies carried out bv consultants from 1965 to 1968 and on the findings of an appraisal mission conmit4ino nf Messrs.
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