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Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 15823 PERFORMANCE AUDIT REPORT Public Disclosure Authorized BANGLADESH DRAINAGE AND FLOOD CONTROL II PROJECT (CREDIT 1184-BD) June 27, 1996 Public Disclosure Authorized Public Disclosure Authorized Operations Evaluation Department 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 Name of Currency: Taka (Tk) Rate of Exchange: End of Year Appraisal (1980): USDI.00= Tk 16.3 Average (1981-88): USDI.00 = Tk 27.5 Completion (1989): USD1.00 = Tk 32.3 Abbreviations and Acronyms Bank World Bank BWDB Bangladesh Water Development Board ERR Economic Rate of Return FAP Flood Action Plan FCD Flood Control and Drainage FCD/I Flood Control and Drainage, and Irrigation FDR Flood Damage Restoration Programme FFW Food-for-Work Programme HYV High Yielding Varieties I Irrigation IDA International Development Association ICR Implementation Completion Report I/O&M Improved Operations and Maintenance IRRI International Rice Research Institute O&M Operations and Maintenance OED Operations Evaluation Department PAR Performance Audit Report PCR Project Completion Report PIE Project Impact Evaluation PPAR Project Performance Audit Report PRA Participatory Rural Appraisal RRA Rapid Rural Appraisal SAR Staff Appraisal Report SDR Special Drawing Rights SRP Systems Rehabilitation Project STW Shallow Tubewell TA Technical Assistance Fiscal Year Government of Bangladesh: July I to June 30 Weights And Measures Metric System Borrower Government of Bangladesh FOR OFFICIAL USE ONLY The World Bank Washington, D.C. 20433 U.S.A. Office of the Director-General Operations Evaluation June 27, 1996 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Performance Audit Report on Bangladesh Drainage and Flood Control H Project (Credit 1184-BD) Attached is the Performance Audit Report on Bangladesh, Drainage and Flood Control II project (DFC II), prepared by the Operations Evaluation Department. DFC 11 was supported by a credit for US$27 million equivalent approved in FY82. The credit was closed in FY 89, fully disbursed after two extensions of the closing date. The objective of DFC II was to promote an increase in rice and other crop production by providing flood control and drainage at three widely dispersed sites, Chalan Beel, Satla Bagda and Hail Haor. At the first two, embankments would be built to eliminate flooding from the surrounding rivers, accompanied by improvements in gravity drainage through and out of the polders. At the third, several straight dikes would be built to direct floods away from dry and wet season crops. Other changes would include shifts to transplanted, high yielding rice varieties, less tolerant of deep flooding. Small gated inlets through the embankments would be provided at the first two sites to support dry season irrigation. Some damage to fisheries was anticipated at all sites, and for Hail Haor the project supported studies and subsequent investments to help maintain the fish populations. Works at the Chalan Beel and Satla Bagda polders were completed behind schedule but generally in accordance with appraisal proposals. The completed embankments were challenged almost immediately by the exceptional floods of 1987 and 1988, which caused substantial damage to all structures and called for project and postproject repairs. The embankments at Chalan Beel were also subject to natural and deliberate breaches during lesser floods, a consequence of unexpected hydrologic pressures on the western margin. Works at Hail Haor were delayed and finally redesigned, again in response to changes in local hydrologic forces. Agricultural impacts at the two polders were less than envisaged at appraisal but positive nonetheless. Falling rice prices depressed rate of return re-estimates everywhere, and these were further undermined at Chalan Beel by indirect costs imposed on inadequately protected nearby areas and to riverine fisheries. These costs exceeded expectations and offset the economic gains from crops. The cropping benefits may also be reversed if standards are not substantially improved to safeguard the new flood control assets. Cropping gains and fishery losses at Hail Haor were minimal, since the principal 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. 2 flood control structures were abandoned and the project financed by the credit resulted mostly in improved roads. The outcome of DFC II is unsatisfactory, with negligible institutional development. Indirect costs have undermined the otherwise satisfactory outcome in agricultural production on the two major polders, without eliciting any significant remedial measures. Hail Haor further depresses the ratings. Sustainability is rated uncertain: dependent on very uncertain improvements in O&M. These ratings are in line with those in the Project Completion Report. Lessons that can be drawn from this project include: (i) well designed flood control investments can have significant positive impacts on flood-sensitive crops in the wet season and, depending on the location, in protecting maturing dry season crops as well; (ii) in unstable water regimes such as those in Bangladesh, regional hydrological forces must be carefully taken into account when designing polders and dikes; (iii) fishery losses to polder emplacement can be substantial in relation to agricultural benefits, and remedial measures must enter the project design and be enforced; and (iv) the tendency to ignore fanner organizations in flood control operations, as distinct from irrigation operations, must be reversed. The project demonstrates how the absence of participatory O&M threatens the sustainability of all project works. Attachment FOR OFFICIAL USE ONLY Contents Preface ....................... ................................................................................ 3 Basic Data Sheets .................... ...................................................................... 5 Evaluation Summary...... ....................................... 7 1. Introduction and Background A . Introduction ........ .................................................................................... 13 B. Flood Control and Drainage .. ............................................................... 13 C . A udit of D FC I ............................................................................................................. 15 2. Project Objectives and Preparation A . Objectives ................................................................................................................. 16 B. Preparation ............................................................................................................... 16 3. Project Im plem entation .................................................................................................. 19 4. Operation and Maintenance ........................................................................................... 23 5. Outcome A . General Rem arks.................................................................................................... 27 B. Chalan Bee ....................... ................................................. 28 C. Satla Bagda............................................. 30 D. Hail Haor.............................................. 33 E. Overall Rate of Return .......................................................... 34 6. Findings and Lessons A. Findings 1. Im pact on Cropping............................................................................................. 36 2. Regional Hydrology ............................................................................................. 37 3. Fisheries.................................................................................................................. 42 4. Embankments ................................. ........ 43 5. Influence of O&M on Project Impact........................... 43 B. Lessons ............................................... 44 This report was prepared by Edward B. Rice (Task Manager), with support from S.A.M. Rafiquzzaman (Bank), Azharul Haq (IIMI), Jayantha Perera and Annemarie Brolsma (consultants), who audited the project in October 1994 and July 1995. Afi Zormelo and Megan Kimball provided administrative support. The report was issued by the Agriculture and Human Development Division (Roger Slade, Chief) of the Operations Evaluation Department (Francisco Aguirre-Sacasa, Director). 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. Annees 1. DFC II Infr tructr W orks .................................................................................................. 47 2. Field Report on Chalan Beel and Satla Bagda................................................................ 49 3. Governments Comments on the Draft PAR A. M inistry of W ater Resources................................................................................... 53 B. Ministry of Planning .................................................................................................. 57 Maps I. Bangladesh: Subproject Sites (IBRD 27713).....................................................................end