C)Z 2 '1 ZgCl - - Docuet of The World Bank FOR OMCLAL US ONLY MrCROFICHE COPY Report No. :P- 5696-NEP Type: (PR) Public Disclosure Authorized Title: SUNSSARI MORAING HEADWORKS PROJE( P-5696-NEP (Author: (ALBINSON, B. bport ND. Ext. :81928 Room:E-3C)49 Dept.:(ASTAG Y 2 VOIS 141ORANWDWAND REtMDATI OF THE PRESIDENTOF THE INTRNATIONAL DEVELOPET ASSOCIATION Public Disclosure Authorized TO THE EXECTIVE DIRECTORS ON A PROPOSEDCREDIT OF SDR 19.0 MLLION TO THE KINGDOM OF NEPAL Public Disclosure Authorized FOR A SIINSARI MORANIGEADWORKS PROJECT OCTOBER15, 1992 Public Disclosure Authorized Ts document has a resticted distribution and may be und by recipients only in the performace of their official duties. Its contents may not otherwise be disclosed without World Bankaothorization. NEAL SUNSARI MORANGHEADWORKS PROJECT CURRENCYEQUTVALENTS (as of September 1991) Currency Unit Nepalese Rupees (NRs) US$1.00 NRs 42.80 WEIGHIS AND MEASURES 1 meter (m) 3.28 feet (ft) 1 hectare (ha) - 2.47 acres (ac) A*IBRITATTONS AND ACRONYMS CCP - Chatra Canal Project CMC - Chatra Main Canal DOI - Department of Irrigation ERR - Economic Rate of Return GOI - Government of India HMGN - His Majesty's Governmentof Nepal ICB - InternationalCompetitive Bidding LCB - Local Competitive Bidding 1/s - Liter per Second m3ts - Cubic Meter per Second o&M - Operation and Maintenance POE - Panel of Experts PCR - Project Completion Report SA - Special Account SAR - Staff Appraisal Report SOE - Statement of Expenditure SMIDB - Sunsari Morang IrrigationDevelopment Board SMIP - Sunsari Morang Irrigation Project SMHP - Sunsari Morang Headworks Project Chak - Tertiary Service Area Kharif - Monsoon Cropping Period (July - October) Rabi - Winter Cropping Period (December - March) WUG - Water User Group FISCAL YEAR July 16 - July 15 FOR OFFICIAL USE ONLY UNPAT . STNSARI MORANG HEADWORKS PROJECT Cradit anA Project Summary Bor*ower: Kingdom of Nepal AM=SnD: SDR 19.00.million (US$28.00 million equivalent) QL.ma: Standard. with 40 years' maturity Financing Plan: Loual Foreign Total --- (USS million)------ Government 1.68 0.00 1.68 IDA 1.0l 27.00 28.00 TOTAL 2.68 27.00 29.68 Rcnnmie{ Ratea f Raturn: 22% Staff Appraisal Report: Not applicable han.: IBRD No.23548 Location IBRD No.23549 Detailed Layout This document has a restrktod distributionand may be used by recipientsonly in the perormanc of their oMcialduties. Its contents may not otherwib be disclosedwithout WorldBank Luthorution | MEMORANDUMAND RECOMMENDATIONOF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENTASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE KINGDOMOF NEPAL FOR A ShJNSART M HRNADWOR PROJRCTr The following memorandum and recommendationon a proposed Development Credit to the Kingdom of Nepal for SDR 19.0 million (US$28.0million equivalent) is submitted for approval. The proposed credit would be on standard IDA terms with a maturity of 40 years, to help finance the completion of the ongoing Sunsari Morang Irrigation II Project (SMIP I)Y - Credit 1814-NEP. ProjmE-t flAsnript1nn and Object{vas 1. The project would provide new headworks facilities for the Sunsari Morang Irrigation Project, initiated by the Government of India (GOI) under the Kosi Agtreementof 1954. The project commands an area of about 68,000 ha, of which about 58,000 ha are effectively irrigable. Problems with siltation began soon after the project was completed, and have defied small-scaleremedial works. Two previous credits (Cr. 812-NEP, US$30 million and Cr. 1814-NEP, US$40 million), which provided for desilting facilities as well as development of the distribution system, failed to address the technical difficulties with sufficientlyradical solutions and siltation has caused the loss of function of a significant part of the completed works. The search for the correct technical solution to the siltation problem has been actively supported by the Bank, but has proved extremely lengthy and difficult. Finally, an internationalPanel of Experts (POE) was convened and this project would implement their recommendations which include moving the intake structure 1,300 m upstream into the Chatra Gorge, and providing a very large desilting basin. The new site of the intake would allow easy extraction of water, and the desiltingbasin would permit desilting of the extracted water. Project Annkground 2. Background and Early levalo ment. Under the Kosi Project Agreement of 1954 between GOI and His Majesty's Government of Nepal (HMGN), GO undertook to finance and construct the Chatra Canal Project (CCP) in Nepal to irrigate an area of about 58,000 ha using water diverted from the left bank of the Kosi River about 20 km upstream of the Kosi Barrage at the Indian border. Constructionof the system started in 1964, and after trial operationsbetween 1970 and 1975, the project works were handed over to HMGN in 1975. The project was later renamed the Sunsari Morang Irrigation Project (SMIP). The intake and head reach of the Chatra Main Canal (CMC) were designed for a capacity of 45.30 m3/s, equivalentto about 0.66 1/s/ha over the original command area. The distribution system was terminated at turnouts serving an area of 100-200 ha. Because no minor canals were built below this level, the system could not irrigate the whole command area. Siltation problems troubled the project from its inception, and these problems became progressively worse over the years as the river migrated 1J The acronyms used for the various stages are: SNIP: The whole irrigable area commanded by the Chatra main Canal, about 58,000 ha. SMIP I: Stage I development, about 9,750 ha (Cr. 812-NEP, USS30.00 million, 1978, project cost US$41.90 million). SNIP II: Stage II development, about 16,700 ha (Cr. 1814-NEP,US$40.00 million, project estimated cost US$50.00 million). SNIP III The unimproved balance of about 31,550 ha which will benefit partially from SNHP. -2- westward. As a result of these deficiencies,the project as originally built did not fulfill its objectives and HMGN requested IDA assistance to overcome the shortcomings of the original project. IDA involvement in the project has been divided into two stages: Stage I (9,750ha) and Stage II (16,700ha). 3. Sunmari Morang Irrigation andt nrainage I Projant - (:x A12-ISIP, UsR50.0 mdillion. 17ra. In 1978, IDA approved this project (SMIP I), which was designed to rehabilitate and improve the irrigation and drainage system on the command area of the CXC. The physical works included: (a) arrangementsfor river control and flood protection along the Kosi River in the vicinity of the CMC intake; (b) sediment control arrangements on the canal system and restoration, improvement and expansion of the existing canal system; (c) design and constructionof minor distribution systems extending to outlets each serving 10 ha on 18,000 ha: (d) drainage improvements for 15,000 ha; (e) a pilot tubevall irrigation scheme: and (f) pilot hydroelectric schemes. Implementationof the project was delayed, mainly because of procurement problems. In 1983, the project was modified to provide an improved irrigation and drainage system for about 12,000 ha. The original proposal to provide a desilting basin with dredger at the head reach of the CMC was postponed in favor of a supposedly cheaper maintenance solution, and the pilot hydroelectric schemes were deleted from the project. The area of 12,000 ha intended for improvementwas reduced to 9,750 ha because about 1,400 ha of very sandy soils within the area were found unsuitable for surface irrigation;and, a local contractor,who was awarded the works on 850 ha, failed to perform. 4. SMIP I, now called Stage I, was completed in 1985, but the steps taken to deal with the siltation problem were not effective, and increasing siltation prevented the full benefits from being obtained. Moreover, the distribution system design was too complex, attempting to provide demand-based irrigation to very small groups of farmers. The siltation problem, and the complexity of the distribut'.on network, made the system impossible to operate as designed. S. sungari Morang Irrigation II Project - tCr. 8l4-NREP, USS40.0 millio,. li8.Il. In 1987, IDA processed a second project (SMIP II, Stage II), which provided for the rehabilitationof 16,700 ha of the command area and facilities to eliminate the siltationproblem. The physical works included: (a) improvementsto the main canal; (b) improvementsin the desilting operation; (c) rehabilitationand improvementof irrigation distributionand drainage works in 16,700 ha in the Stage II area; (d) improvement of the irrigation and drainage system in the Stage I area (9,750 ha); Ce) construction of buildings for offices and staff quarters, and also the provision for (i) purchase of equipment and vehicles for O&N (including spares) and (ii) radio communication for the canal system operation; (f) expatriate technical assistance, training, monitoring and evaluation and studies: and (g) support for incrementalproject establishmentand maintenance costs. 6. The rehabilitation of the command area has proceeded on schedule and about 40% of the distribution system has been completed. However, the siltation problem, exacerbated by the continued westward migration of the Kosi River, has proved extr emly difficult to solve technically, and HNGKobtained the advice of an international Panel of Experts, which recommended the following modifications to the Stage 1I concept: (a) moving the intake 1,300 m upstream, (b) constructing a larger capacity desilting basin, (c) utilizing larger capacity dredgers, and (d) constructinga microhydro unit to provide power for the dredger operations. 7. Although the silt ingestion was the major problem in Stage I, difficulties were also experienced with the over-complex irrigation system adopted. The design of the Stage II distribution network has been modified in light of the Stage I experience and a simplified design is now being implemented with constructionfor 7,000 ha completed in June 1992. Until the increasing levels of -3- silt inhibited operation, this simplified system proved effective and easy to operate and shows that once the silt problem is solved, the project will yield the benefits projected at the time of appraisal.