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World Bank Document ReportNo. 779a-BD FILECopt Bangladesh:Appraisal of the KarnafuliIrrigation Project Public Disclosure Authorized (Haldaand IchamatiUnits) December31, 1975 Irrigation and Area Development Division South Asia ProjectsDepartment Not for PublicUse Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Documentof the World Bank Thisdocument hasa restricteddistribution and may be usedby recipients only in the performanceof their official duties. Its contents may not otherwise be disclosedwithout World Bankauthorization. CURRENCY EQUIVALENTS The Bangladesh Taka is officially valued at 30 to the Pound Sterling. The Pound now floats relative to the US Dollar and coosr- quently the Taka, US Dollar rate is subject to change. The rate below has been used throughout this report, except where stated to the con- trary. US$1 - Tks 13.0 Tk 1 - US$0.077 Tk 1 million - US$77.000 WEIGHTS AND MEASURES 1 acre (ac) - 0.405 hectare (ha) 1 mile (mi) - 1.609 kilometers (km) 1 square mile (sq mi) - 640 ac (259 ha) 1 foot (ft) - 30.5 centimeters (cm) 1 maund (md) - 82.3 lbs (37.3 kg) 1 metric ton (ton) - 26.8 md 1 cubic foot per second (cfs) - 0.028 m3/sec PRINCIPAL ABBREVIATIONS AND ACRONYMSUSED BADC - Bangladesh Agricultural Development Corporation BAISSC - Bangladesh Agricultural Inputs, Supplies and Services Corporation BRRI - Bangladesh Rice Research Institute CEC - Central Evaluation Committee GDP - Gross Domestic Product GOB - Government of Bangladesh HYV - High Yielding Varieties (of rice) IRDP - Integrated Rural Development Program IRRI - International Rice Research Institute (Philippines) MFWP - Ministry of Food Control, Water Resources and Power NEC - National Economic Council PEP - Project Evaluation Proforma PIC - Project Implementation Committee TAO - Thana Agriculture Officer TEO - Thana Extension Officer TCCA - Thana Central Cooperative Association TIP - Thana Irrigation Program TTDC - Thana Training and Development Center UAA - Union Agriculture Assistant VEA - Village Extension Agent WDB - Water Development Board GLOSSARY Aman - Rice planted before or during the monsoon and harvested in November or December (B. aman is broadcast, T. aman is transplanted) Aus - Rice planted during March and April and harvested during July and August (B. aus is broadcast, T. aus is transplanted) Boro - Rice planted in winter and harvested during the period April to June Khal - Natural drainage channel Paddy - Unhulled rice Project Eval- - A project report prepared for the Planning Commission. uation Pro- Approval of the PEP by the NEC is required before forma (PEP) local funds for the project can be released. Thana - Smallest administrative unit in Bangladesh. There are 413 thanas in the country. Six or seven thanas form a District, and there are 19 Districts in the country Union - A unit of local self government. There are about 10 unions in each thana FISCAL YEAR Ju 1 - June 30 BANGLADESH APPRAISAL OF KARNAFULIIRRIGATION PROJECT (HALDAAND ICHAMATIUNITS) TABLE OF CONTENTS Page No. SUMMARY AND CONCLUSIONS .......................... i - ii I. INTRODUCTION ..................................... 1 II. BACKGROUND ................................ 1 General . .................................... 1 AgriculturalDevelopment .................... 2 Irrigation Development ...................... 3 III. THE PROJECT AREA ....................... ; 4 General.. 4 Climate.. 5 Topography and Soils . 5 Existing Irrigationand Drainage 6 Farm Size and Land Tenure. 7 AgriculturalProduction . 8 Transportationand Marketing . 8 IV. THE PROJECT..9 :D . ~ enra ...................................... 9 General..9 Project Features.. 9 Water Quality, Demand and Supply . .12 Engineering Design...... 13 ConstructionSchedule . .13 Cost Estimates. 13 Financing . .16 Procurementsand Contracts . .16 Disbursements . .16 Accounts and Audit . .17 EnvironmentalImpact . .17 This report is based on the findings of an appraisal mission which visited Bangladeshin September-October1974, comprisingMessrs. R.R. Morton, P. Garg, U. Hpu, P. Ljung, and A. Feinstein (Consultant). Mr. L. Sprague contributedto the Annex on Fisheries. -2- Page No. V. ORGANIZATIONAND MA1AGEMENT. ......................17 Implementationof Project Works ............. 17 Consulting Services ......................... 18 Operation and Maintenance ................... 19 AgriculturalSupporting Services ............ 19 Recovery of Costs ... ................ .. ....... 21 VI. PRODUCTION, MARKETING, PRICES AND FARM INCOMES ... 22 Crop Calendars and Cropping Patterns ........ 22 Yields and Production ..... .................. 23 Marketing ................... .. ................... 24 Prices ........... ........................... 24 Farm Income ................................. 25 VII. BENEFITS AND JUSTIFICATION ....................... 26 General . .................................... 26 Rice Production ............................. 26 Employment Opportunities .................... 27 Income Distribution .......................... 27 Economic Rate of Return ..................... 27 VIII. AGREEMENTS REACHED AND RECOMMENDATIONS ........... 29 ANNEXES 1. AgriculturalDevelopment 2. Climatic Data 3. Project Works 4. Fisheries Development Program 5. Irrigation Water Requirements 6. Construction Schedule 7. Cost Estimates 8. Schedules of Expenditures, Proposed Credit Allocation, and Disbursements 9. Agricultural Supporting Services 10. Present and Projected Cropping Patterns and Production 11. Prices for Economic and Financial Analyses 12. Crop Inputs and Farm Budgets 13. Farm Labor Analysis 14. Economic Analysis NAP NO. 11537 Project Location 11538 Project Area BANGLADESH KARNAFULI IRRIGATION PROJECT (HALDA AND ICHAMATI UNITS) SUMMARY AND CONCLUSIONS i. Agriculturedominates the economy of Bangladesh. It accounts for over half of GDP, 75% of employment,and over 80% of exports. Although rice is grown on about 80% of the cultivatedacreage and represents about two- thirds of the value of agriculturalproduction, rice production has not been able to meet the requirementsof a rapidly growing population. In 1960/61 food grain imports amounted to 0.7 million tons and had, by 1974/ 75, risen to 2.4 million tons. The First Five-Year Plan (1974-78)gives high priority to increasingrice production through promotion of modern inputs (improvedseeds, fertilizersand pesticides)and through further expansion of irrigationfrom low-lift pumps and tubewells. ii. The proposed project would provide irrigation,flood control and drainage to a net area of about 38,000 ac in the lower Halda River Basin, and 8,000 ac in the lower Ichamati River Valley. Because of the irrigation facilities to be provided under the project, the dry season rice area would expand from the present 20,000 ac to about 38,000 ac. In the wet season, project works would reduce flooding and provide supplementaryirrigation. This would increaseyields and permit a shift from local to high yielding rice varieties on 15,000 ac. About 840 units of 7-10 hp diesel-powered low-lift pumps, each serving an average area of 45 ac, would irrigate the area from an extensive network of natural and project-improvedchannels (khals). In the Halda Unit, the khal system would be supplied by tidal recharge whereas in the Ichamati Unit it would be by a main pumping plant. In both areas, high-level khals would be filled by relift pumping stations. Both project areas would be protected from outside flooding by perimeter embankmentsand regulators on the khals. The Ichamati pumping plant would serve to drain excess water in the unit during the wet season. Khal exca- vation and the regulators would make navigation by small boats possible in most parts of the project area. In addition to pumps and civil works, the project would provide a fisheries developmentprogram as well as workshops, equipmentand vehicles for both operation and maintenanceand agricultural supporting services. iii. The Water DevelopmentBoard, under the Ministry of Flood Control, Water Resourcesand Power, would have overall responsibilityfor execution and management of the irrigation and flood control component of the project works. Several Government agencies would be involved in implementingthe project. Interagencycoordination would be provided by an interdepartmental Project ImplementationCommittee chaired by the Project Director. The Minis- try of Forests, Fish and Livestock would be responsiblefor the implementa- tion of the fisheries development componentof the project. A Central Eval- uation Committee comprising senior representativesof the various ministries - i:i - and agencies involved and chaired by the Minister of Flood Control, Water Resources and Power, would periodicallyreview project progress and resolve coordinationproblems. Consultantswould be engaged to assist in project implementation. iv. The estimatedcost of the project is US$30.3 million equivalent of which US$9.4 would be in foreign exchange and US$2.6 million equivalent in local taxes and duties. Out of the proposed credit of US$22.0 million, US$18.9 million would be used for financing the full foreign exchange costs and some local costs, or about 68% of the total project cost net of taxes and duties. The remainingUS$3.1 million of the proposed credit would re- finance an earlier technicalassistance credit (Credit S-14-BD). Contracts for the supply of vehicles, equipment and imported materials amounting to about US$3.6 million would be awarded after internationalcompetitive bid- ding. Because internationalcompetitive bidding would not be practical for
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