Document of The World Bank FOR OFFICIAL USE ONLY C PY Report No. 3835-BD STAFF APPRAISAL REPORT BANGLADESH DEEP TUBEWELLS PROJECT II June 30, 1982 South Asia Projects Department Agriculture Division B 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. Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
Transcript
Document of
The World Bank
FOR OFFICIAL USE ONLY C PY
Report No. 3835-BD
STAFF APPRAISAL REPORT
BANGLADESH
DEEP TUBEWELLS PROJECT II
June 30, 1982
South Asia Projects DepartmentAgriculture Division B
This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.
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CURRENCY EQUIVALENTS
US$1 = Taka 19.5Taka 1 US$0.0513Taka 1 million = US$51,300
WEIGHTS AND MEASURES
1 acre (ac) = 0.405 hectare (ha)1 maund = 82.27 lb (37.3 kg)1 md/ac = 0.037 tons/ac1 metric ton (ton) = 26.8 md1 cubic foot per second = 0.0283 cubic meter(cusec) per second (cusec)
GLOSSARY
Agricultural Terms
Aman - Paddy planted before or during the monsoon(which begins in June) and harvested inNovember or December (b. aman is broadcastaman, T. aman is transplanted aman).
Aus - Paddy planted during March and April andharvested during July and August (b. ausis broadcast aus, t.aus is transplantedaus).
Boro - Paddy planted in November-December and harvestduring April to June.
Rabi - Dry season.
Paddy - Unhusked rice.
FISCAL YEAR
July 1 to June 30
FM OFFICIAL USE ONfLY
ABBREVIATIONS AND ACRONYMS
BADC - Bangladesh Agricultural Development CorporationBB - Bangladesh BankBIDS - Bangladesh Institute of Development StudiesBKB - Bangladesh Krishi BankBSBL - Bangladesh Samabaya BankBWDB - Bangladesh Water Development BoardCAD - Command Area DevelopmentCB - Commercial BanksCIDA - Canadian International Development AuthorityDAE - Department of Agriculture and ExtensionDCCB - District Central Cooperative BanksDPEC - District Project Executive CommitteeDTW - Deep TubewellFAO/CP - Food and Agriculture Organization/Cooperative ProgramGOB - Government of BangladeshHTW - Hand TubewellICB - International Competitive BiddingIDA - International Development AssociationIFAD - International Fund for Agricultural DevelopmentIMP - Irrigation Management ProgramIRDP - Integrated Rural Development ProgramKSS - Krishi Samabaya Samity (Village Cooperative Society)LLP - Low Lift PumpMLGRD&C - Ministry of Local Government Rural Development
& CooperativesMTFPP - Medium Term Food Production PlanODA - Overseas Development AdministrationPCC - Project Coordinating CommitteepP - Project ProformaRDA - Rural Development AcademyRWP - Rural Works ProgramSB - Sonali BankSIDA - Swedish International Development AuthoritySTW - Shallow Tubewell -
TCCA - Thana Central Cooperative AssociationTPO - Thana Project OfficerUMPCS - Union Multi-Purpose Cooperative SocietiesUNDP - United Nation Development Program
This document has a resricd distrihmim and may be usd by recivients only in the performance oftheir official duties, Its contents mna .o otherwise be dcowld withoa World Bank authorization.
BANGLADESH
DEEP TUBEWELLS PROJECT II
Table of Contents
Page No.
I. INTRODUCTION ................................... 1
II. BACKGROUND ........................ ..................The Agricultural Sector ................ .. ................Minor Irrigation Sub-Sector ............................... 2Agricultural Institutions and Input Supply .... ............ 6Agricultural Cooperative Institutions . . 6Agricultural Credit Institutions ........... .. ............. 10IDA Operations in the Minor Irrigation Sector ........... .. 11
III. THE PROJECT AREA .............................. 12General ................................................ 12Climate ..... 12Topography, Soils and Drainage ........ .................... 12Groundwater Resources and Development ...... ............... 13Irrigation ..................... 14Water Distribution System .................. ................ 14Farm Size and Land Tenure ......................... 15IRDP/TCCA/KSS in the Project Area ........ ................. 15Agricultural Situation ....................... 16Communications ....................... 16Electric Power ... ...................... 16
IV. THE PROJECT ...................................... 17Project Objectives ........ .. ......... 17Project Description ................... 17
Detailed Features ................... 18Procurement and Installation of Deep Tubewells .... ........ 18Procurement of Drilling Rigs .............................. 18Strengthening BADC ..................... 18Technical Assistance ..................... 19Groundwater Studies ..................... 19Pilot Schen.e to Study Improved Distribution System ... ..... 20Experimental Program to Test Tubewell Designs .... ......... 20Strengthening of IRDP/TCCA/KSS Program .... ................ 20Rural Credit . .............................................. 21Project Evaluation ......... ............................... 21Procurement of Diesel Fuel ........................ 21
Project Accounts and Audit ................ ................ 28
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Page No.
V. PROJECT IMPLEMENTATION .................................. 28Organization and Management ................................ 28Project Coordination ................................... 29Implementation Schedule .......................... 29Group Formation, Site Selection and Loan ApplicationProcedures .......................... 30
Operation and Maintenance . .......................... 31Flow of Medium-Term and Short-Term Credit .... ............. 31
VI. PRODUCTION, MARKETING AND PRICES ...... ..................... 33Projected Cropping Patterns ....... ........................ 33Yields and Production ......... ............................ 34Projected Command Area Development ..... ................... 35Marketing and Prices .......... ............................ 36
VII. FINANCIAL AND ECONOMIC ANALYSIS ...... ..................... 37Farm Income (Farm Models) ....... .......................... 37Cost Recovery . ............................................. 40Impact on Government Budget ...... ......................... 41Returns and Costs of Water ....... ......................... 41Project Benefits and Justification ..... ................... 42Economic Analysis and Sensitivity Tests .... ............... 43Project Risks . ............................................. 45
VIII. RECOMMENDATIONS AND ASSURANCES ...... ...................... 45
SCHEDULE A - Agricultural Medium Term Credit - Lending Terms andConditions
ANNEX 1 - Groundwater Resources and Development
Table 1 - Cainozoic Geology of BangladeshTable 2 - Aquifer Transmission PropertiesTable 3 - Estimates of Potential Annual RechargeTable 4 - BADC Deep Tubewell Installation RecordTable 5 - Gross, Net and Irrigated Accreages in Project AreaTable 6 - DTW Engines Imported to BangladeshTable 7 - Electricity Energy Balance for Bangladesh
ANNEX 2
Table 1 - Summary Project CostsTable 2 - Cost Estimate - Purchase of DTW Components by IDA
Table 3 - Cost Estimate - Purchase of DTW Components by ODA
Table 4 - Cost Estimate - Installation of 4,000 DTW
Table 5 - Unit Cost of Different Types of DTWTable 6 - Operation and Maintenance Costs for Diesel Powered DTWTable 7 - Operation and Maintenance Costs of Electrically Powered DTWTable 8 - Ccst of Drilling Rigs and Auxiliary Equipment
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Table 9 - Cost Estimate - BADC Project Implementation Unit
Table 10 - Cost Estimate - BADC Field Operations
Table 11 - Consulting Services - Capital Cost EstimateTable 12 - Consulting Services - Personnel and Other Operating CostsTable 13 - Cost Estimate - IRDP Capital Costs
Table 1 - Cropping Pattern, Area Irrigated and Phasing of DTWTable 2 - Crop Yields
Table 3 - Summary of Crop Input RequirementsTable 4 - Irrigation RequirementsTable 5 - Crop Consumptive Use EstimatesTable 6 - Climatic and Evaporation Data
ANNEX 6 - Financial Analysis
Table 1 - Financial Analysis for an Irrigation Group in Madhupur Tract(Well Drained Soils - 80 acres)
Table 2 - Financial Analysis for an Irrigation Group in Madhupur Tract(Poorly Drained Soils - 80 acres)
Table 3 - Financial Analysis for an Irrigation Group in Old BrahmaputraFlood Plains - (Well Drained Soils - 80 acres)
Table 4 - Financial Analysis for an Irrigation Group in Old BrahmaputraFlood Plains - (Poorly Drained Soils - 80 acres)
Table 5 - DTW Pricing Policy - STW Equivalent Price CalculationTable 6 - DTW Pricing Policy - Cost Structure for STW 110 ft DepthTable 7 - DTW Pricing Policy - Estimated Cost of Water Use for
STW and DTW (800 hrs/year)Table 8 - Economic Costs and Returns to Water
ANNEX 7 - Economic Analysis
Table 1 - Derivation of Prices for Rice and Wheat in the Economic AnalysisTable 2 - Derivation of Fertilizer Prices Used in the Economic AnalysisTable 3 - Financial and Economic PricesTable 4 - Economic Analysis
ANNEX 8 - Related Documents and Data Available in the Project File
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CHARTS
World Bank 23532 - Typical Well Section (Diesel Powered)World Bank 23533 - Typical Well Section (Electrically Powered)World Bank 23534 - Implementation Schedule
MAPS
IBRD 16189 - Project Area and Study AreaIBRD 16190 - Thickness of Upper Clay and SiltIBRD 16191 - Geology and Dry Season Water Levels
BANGLAIDESh
DEEP TUBEWELL (II) PROJECT
I. INTRODUCTION
1.01 The Government of Bangladesh (GOB) has requested the InternationalDevelopment Agency (IDA) for assistance in financing a Deep Tubewell (DTW)project in parts of the Mymensingh, Kishoreganj and Dacca districts ofBangladesh. The Project would support GOB's ongoing efforts to increase thearea irrigated by DTWs from 0.55M acres in 1979/80 to 1.55M acres by 1984/85,and would be an integral part of the Medium Term Food Production Plan (MTFPP)which is designed to attain food self-sufficiency by 1985.
1.02 The project as designed is based on experience gained from anumber of ongoing projects in Bangladesh, in particular upon the IDA financedNorthwest Tubewell Project (Cr. 341-BD) launched in 1969, and upon recommenda-tions of the Joint GOB/IDA Minor Irrigation Sector, 1/ and Integrated RuralDevelopment Program (IRDP) Reviews. 2/
1.03 The project was identified by GOB and IDA, and was prepared by theFood and Agricultural Organization/World Bank Cooperative Program (FAO/CP).This report is based on the findings of an appraisal mission comprising:Messrs. P.M. Tamboli, H. Sanger (IDA), W. Bakiewicz and Shrinath Singh(Consultants) who visited Bangladesh in October/November 1981.
II. BACKGROUND
A. The Agricultural Sector
2.01 Bangladesh, with an area of 35 M acres of predominantly fertilealluvial soils and ample groundwater, is well endowed with agriculturalresources. Agriculture dominates economic activity employing about three-fourths of the work force and directly accounting for about half of GDPand over three-fourths of exports. Because of the high population density(230 per sq. mile) and small size farms (60% less than 1 ac), agricultureis subsistence oriented. Food crops predominate and contribute about three-fourths of agricultural GDP. The major crop is rice covering over three-fourths of the cropped area.
2.02 Agricultural production grew very slowly in the 1950s and 1960s,with rice production growing at only 0.7% and 2.5% per annum respectivelycompared with a population growth rate of 3% during the same period. In
1/ "Minor Irrigation Sector Review A joint Review by GOB/IDA" - draftreport April 1981.
2/ "Integrated Rural Development Program, A Joint Review by Government andthe World Bank", January 1981.
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the early 1970's production received a further setback due to the war ofindependence. As a result, Bangladesh became a major importer, with foodimports averaging about 1.8M tons annually. However, in recent years,with improved use of groundwater, fertilizer and improved seeds, foodgrainproduction has increased from an average of 10.81M tons in 1971-75 to anaverage of 12.8M tons in 1976-80, and it is expected to reach 15Fi tons in1981.
B. Minor Irrigation Sub-Sector
Physical Development
2.03 Though Bangladesh has substantial surface water resources in theform of perennial rivers, the size and strongly seasonal flow regimes ofsystems such as the Ganges-Padma and the Brahmaputra-Jamuna, and the natureof the topography of the country, make the development of major storage andlarge-scale gravity irrigation impossible or difficult and very expensive.Therefore, traditionally the local farmers have concentrated on small scalelift irrigation for cropping in the dry (boro) season from November to Marchand supplementary irrigation for Aman during the monsoon season.
2.04 Traditional Irrigation. Until the 1950s practically all minorirrigation depended on manual power. Devices such as the swing basket, thehinged channel, and the counterpoised lift are still in common use to liftwater a few feet from rivers, streams, ponds and sometimes shallow dug wells.Some 1.2 M acres are irrigated in that way.
2.05 Low Lift Pumps (LLP). Under the pressure of rapidly expandingpopulation and exhaustion of new cultivable land, mechanised small scaleirrigation began to be introduced to Bangladesh about 20-25 years agoto increase cropping intensity. Emphasis was placed on relatively cheap andindividually small (1-2 cusec) low lift pumps (LLPs). It is estimated thatabout 36,000 LLPs are currently being used to irrigate about 1.4 M acres.Most LLPs are owned and maintained by the Bangladesh Agricultural DevelopmentCorporation (BADC) and rented to farmers. Five IDA projects (Credits 340,542, 605, 725 and 990) support low lift pump development. The Medium-TermFood Production Plan (MTFPP) envisages the irrigation of about 2.0 M acres ofland by exploiting surface water through fielding about 51,000 pumps with aninstalled capacity of 90,000 cusecs.
2.06 Development of Shallow Tubewells (STW) started in the mid 1970sand is being supported by two IDA projects. (Credit 724 and a part of Credit631). Typically STW are about 0.5-0.75 cusec units and easily and quickly in-stalled by local drillers using simple equipment. About 24,000 STW have beeninstalled; about half each by BADC and the Bangladesh Krishi Bank (BKB). WhileSTW are privately owned either by individuals or small farmer groups, procure-ment and installation has so far been organized by the two agencies. however,BADC has recently decided that equipment supplies and STW repairs would behandled by the private sector. MTFPP proposes increasing the area irrigatedby STW from 0.27M ac with 24,000 STW in 1980/81 to 1.08M ac by fieldingadditional 90,000 STW in 1984/85.
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2.07 Development of Hand Tuibewells (HTW) each costing only aboutUS$100 and capable of irrigating 1/2 to 1 acre of land, is the most recentgroundwater program. About 100,000 have been installed to date and another180,000 would be installed under the recently IDA assistea project (Cr. 1140).
2.08 Deep Tubewells (DTW) are expected to play a major role in GOB'sdevelopment program. DTW would typically be two cusec units (WB Charts 23532and 23533) capable of irrigating up to 100 acres. Construction requires tech-nically skilled supervision which is mainly provided by BADC. About 13,000 DTWhave been installed of which 11,500 are commissioned. So far, the programhas been supported by a number of aid programs including the IDA credit341-BD which financed 3,000 DTW. Under MTFPP, GOB envisages installing18,000 additional DTW by 1985 and has either secured or is negotiatingfinancing for about 13,000 DTW. This appears to be a rather optimisticprogram. The present project, which would install 4,000 DTW in a four yearperiod, would be an integral part of GOB's efforts to promote the MinorIrrigation Sector. At present DTW are mostly owned and maintained by BADCand rented at relatively nominal rates to farmers' groups. However, GOB hasrecently introduced a policy to sell DTW to farmers.
2.09 The present and projected future status of the various mechanicallift devices in Bangladesh is as follows:
Device Approximate Approximate Additional ApproximateNo. in Area Irrigated No. Proposed Area Proposed
Operation* (000 ac) Under MTFPP to be Irrigated(000) (000) under MTFPP
(000 ac)
LEP 36.0 1,400 51.0 2,000
DTW 11.5 640 18.0 1,080
STW 24.0 270 90.0 1,080
HTW 100.0 40 180.0 72
Total 2,350 4,232
In 1980-81 irrigation season.
In total there are about 3.7 M acres under irrigation in Bangladesh; inaddition to the above 0.2 M are irrigated by gravity, and 1.2 M by traditionalbucket-lift methods from surface water resources. Minor irrigation developmentis the keystone of the Second Five Year Plan (SFYP). GOB plans to double theirrigated area by 1985 as part the Medium Term Foodgrain Production Plan(MTFPP) - which aims at producing 18-20 M tons of foodgrain to achieveself-sufficiency by 1985.
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Groundwater Resources Management
2.10 As groundwater development in Bangladesh is still at an early stageit will be many years before regional hydrological constraints are approached.However, to minimize future problems it is imperative for GOB to start pre-paring suitable legislation for an orderly development of the country'sgroundwater and surface water resources as soon as possible. In the IDAassisted STW project, assurances were obtained that government would appointan Expert Committee to review this issue and that the Committee would submitproposals for IDA review by December 31, 1979. In order to comply with thiscovenant, GOB has now submitted Terms of Reference of the Task Force anddraft proposals for a study of water resources regulations which were accept-able to IDA. Assurances have been obtained that GOB would appoint this TaskForce as soon as possible and would furnish to IDA for its review detailedproposals for the regulation of water development not later than December 31,1983.
Minor Irrigation Sector Policy
2.11 In the past government policy had emphasized the development oflarge-scale gravity irrigation. However, by the early 1960's a change inemphasis occurred with priority being given to minor irrigation equipment(LLP, STW, HTW and DTW). Since then there has been a rapid increase inirrigated acreage due to minor irrigation equipment (see paras 2.03 to 2.09).BADC, which is by far the most important agency concerned with minor irriga-tion development, has contributed significantly to the development of thissector. However, it has been obvious for some time that it has outgrownits strength. As a result, BADC has moved increasingly to divest some of itsresponsibilities. Fertilizer wholesaling was recently transferred in partto the private sector, and, in irrigation, it is now government policy to"privatize" the procurement/distribution of equipment and spares as well asthe provision of maintenance services. In fact, in coming years the sale ofminor irrigation equipment in particular HTW, LLP, and STW would be handedover to the private sector and so would be their maintenance. However, BADCintends to retain sole responsibility for the supply and installation of DTWbecause their installation is much more technically demanding. While in thepast BADC's operations were heavily subsidized government's present policy isto gradually reduce subsidization by selling most minor irrigation equipmentto farmers' groups at full cost and charging market rates for spares andservices. An exception would be made for DTW, which because of their highcost would be sold at a subsidized rate. Government now aims at selling DTWat a price which would equate the cost of irrigation water with that from STW(see paras 7.06-7.08). This would substantially reduce the subsidy from thepresent rental operations. Moreover, to further reduce subsidization ofminor irrigation equipment, GOB has decided to sell all existing irrigationequipment to farmers at reasonable prices. As a corollary to this policyrental charges would substantially be increased during coming years. Assur-ances have been obtained by Government that adequate MT credit would beprovided to farmers to purchase existing DTW on conditions acceptable to IDAand that annual rental charges be increased from the present rate of Tk 3,400to Tk 5,000 in FY 1983/84, Tk 7,500 in FY 1984/85 and Tk 10,000 in FY 1985/86.At least 60% of the DTW rentals would be collected by June 30, 1982/83 and atleast 75% by June 30, 1983/84 and thereafter. Assurances were obtained thatall spare parts for DTW rented by BADC would be sold at full cost.
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Irrigation Management Program (IMP)
2.12 Minor irrigation equipment is currently irrigating an average of20-25 acres for one cusec installed capacity. Conservatively estimated thepotential would at least be 50 percent greater. One of the main reasons forthe under-utilization of the equipment is the poor organization and managementof the user groups. To remedy this problem, IMP was introduce in the IDA-assisted Rural Development Project (Credit 631-BD) in 1979-80. BADC, IRDPand DAE officers at the district and thana levels are jointly responsible forimplementing the program which aims at increasing the command area per unit ofirrigation equipment and thus reducing the irrigation cost. The essentialfeatures of the program are: (a) preparation of action plans; (b) selectionof DTW; (c) organizing KSS meetings to explain utility of water management;(d) training of managers, model farmers and chairmen of KSS, TCCA inspectors,village accountants, block leaders, fieldmen, and tubewell operators; (e)preparation of land maps and land registers; (f) laying of irrigation channels;and (g) preparation of irrigation budgets. The program has been very suc-cessful. During 1979/80 a pilot program which included 20 DTW, increased thearea irrigated per DTW on an average from 52 to 94 acres; average productionper DTW increased from 1,907 mds to 5,449 mds; cost of irrigation per acredecreased on an average from Tk 404 to Tk 282; and use of production creditincreased by 167%. Similar success was achieved when the IMP was graduallyexpanded in 1980/81 and 1981/82. Because of such promising results, GOB hasdecided to replicate IMP on a nationwide basis and has published a comprehen-sive manual in Bengali for implementing IMP, The proposed project area wouldreceive priority for implementing this program. Since training of districtand thana level staff of all the concerned agencies is the most importantaspect of IMP, the project would provide funds and facilities for thistraining. This support to IMP would ensure optimum utilization of DTW underthe project. Assurances have been obtained that the IMP would be implementedin the project area.
Minor Irrigation Institutions
2.13 The Bangladesh Agricultural Development Corporation (BADC) wasestablished in 1961, as a semi-autonomous agency under the Ministry of Agri-culture. It is one of the largest organizations in Bangladesh with an annualbudget of over Tk 6.2 billion (US$300 million), and over 26,000 employees.In the minor irrigation field BADC is responsible for the LLP and DTW programsand has supplied about half of the installed STW and HTW. It also has avirtual monopoly to procure and supply fertilizers and seeds. The responsi-bility for installing and maintaining irrigation equipment lies with theIrrigation Wing of BADC. Under the IDA assisted STW project (Cr. 724-BD)it was agreed that the irrigation wing of BADC in the Northwest Region wouldbe restructured. The key elements of the proposed restructuring were:(a) formation of an installation division responsible for all operationalfieldwork which would eliminate the duplication of efforts and provide neededoperational flexibility; and (b) establishment of separate supply and mainte-nance divisions which would allow BADC management to focus greater attentionon these critical but neglected areas. However, this covenant has not beenimplemented so far. This issue was discussed during the joint GOB/IDA minorirrigation sector review. As a result an agreement has been reached to carry
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out restructuring of BADC's Irrigation Wing on a national basis. However,implementation of these proposals will require considerable time since majororganizational changes involving restructuring and reorientation of a largenumber of people will be necessary. To implement this proposal, BADC hasestablished a Management Development Unit (MDU). Assurances have been obtainedthat GOB would furnish to IDA for its review proposals for the reorganizationof BADC's Irrigation Wing by September 30, 1983, and would complete imple-mentation of these proposals by September 30, 1984.
2.14 Bangladesh Water Development Board (BWDB), founded in 1959, is asemi-autonomous body under the Ministry of Irrigation, Water Development andFlood Control. It is responsible for major surface water irrigation schemes,drainage, flood and erosion control, town protection, and river training,throughout Bangladesh. It also operates small LLP and DTW programs. BWDBhas the statutory responsibility for surface and groundwater resourcesmanagement. BWDB was also the subject of a Joint GOB/IDA Review whosefindings are fully discussed in the report No. 2327-BD - April 1979.
C. Agricultural Institutions and Input Supply
2.15 The Department of Agriculture Extension (DAE) of the Ministry ofAgriculture is responsible for providing extension services. The IDA financedExtension and Research I (EAR I) project represents the first substantialeffort to strengthen DAE through introduction of the training and visit systemin the five districts of North West Bangladesh. Since the project started inFY77-78, wheat production in the project area has increased by 225X and fertil-izer consumption has reached a record high. The recently negotiated EAR IIproject would reorganize agricultural services and strengthen thiem in 15 outof the 21 agricultural districts of Bangladesh. It would cover the projectarea of the DTW project so that a separate extension component has not beenadded to this project.
2.16 GOB has recently handed over the retailing of fertilizers, pesticides,and sprayers to the private sectors and has reduced subsidies for these inputs.Although input supplies are adequate and farmers have had no difficulties inobtaining them in the project area there is a need for additional fertilizergodowns to cater for expanded use. Financing for these facilites is expectedto be provided for under the proposed Second Rural Development Project.
D. Agricultural Cooperative Institutions
2.17 There are two types of agricultural cooperatives in Bangladeshthe traditional cooperatives and the Comilla type two tier cooperative system,the Thana Central Cooperative Association (TCCA) and Krishi Samabaya Samity(KSS) system. Both cooperative systems are under the Ministry of Local Govern-ment, Rural Development and Cooperatives (MLGRD and C) with the Registrar ofCooperative Societies directly supervising the traditional cooperatives and the
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Integrated Rural Development Program (IRDP) supervising the TCCA/KSS. Thetwo systems have existed in parallel, to some extent to each others detriment.It is GOB's intention that the two systems should eventually merge and thatall primary societies should become KSS and affiliate with TCCA and that theBangladesh Samabaya Bank Ltd. (BSBL) should become the apex bank of the unifiedsystem. So far, however, GOB has not taken any concrete actions in thisdirection.
2.18 The traditional cooperative system, which dates back to 1904,consists of the BSBL at the apex, financing 16 Land Mortgage Banks, 12 CentralSugarcane Growers Societies and 62 District Central Cooperative Banks (DCCB)to which about 30,000 village and union multi-purpose societies (UMPCS) areaffiliated. The traditional cooperative system is thus closely intertwinedwith the cooperative banking system. Performance of the traditional coopera-tive system has been poor. In fact, many of the UMPCS are moribund due toheavy and chronic overdues. In 1980 these overdues amounted to 53% of out-standing loans and chronic overdues of Tk. 298 M far exceeded owned capitalof Tk. 78 M. The unsatisfactory recovery performance is due to a lack ofadequate staff to supervise and guide affiliated primary societies as wellas inadequate resources in the cooperative banking system. The eventualunification of the two cooperative systems would require financialrehabilitation and reorganization of the traditional UMPCS and theirfinancing institutions.
2.19 The Integrated Rural Development Program (IRDP) was set up nearlya decade ago to initiate the national replication of the TCCA/KSS systemfollowing its successful development and testing at Comilla. The objectiveof the system is to enable economically weak, small farmers to act collec-tively through the establishment of autonomous and financially viable cooper-atives. KSS are expected to collect thrift deposits, introduce group manage-ment of irrigation equipment and provide regular training, institutionalcredit, inputs and marketing services. To date, TCCA have been establishedin about two-thirds of the thanas in the country. Between 1972 and 1980,TCCA increased from 33 to 267, KSS from 5,700 to 39,660 and KSS membershipf-em 136,000 to 1.3 M. Twenty percent of all farm families in thanas coveredby TCCA have joined as active members. TCCA/KSS are categorized A, B, C, D,and E according to the performance regarding (a) coverage of farm families;(b) loan recoveries; (c) build-up of thrift savings; (d) income/expenditureratios; (4) attendance at weekly meetings; and (f) regularity in accounts,audits and annual general meetings. Sixty-five percent of TCCA and 45% ofKSS respectively belong to A and B categories. This performance is highlynoteworthy, considering that so far only few services demanded by membershave been provided through the TCCA/KSS system. Unfortunately, over theyears, the too rapid expansion of the TCCA/KSS system has led to a deteriora-tion of its quality and loss of focus. The objective of creating self-financing, self-managed farmers' associations has been lost sight of and TCCAhad become an extension of the IRDP bureaucracy, which itself has tended tobecome Dacca bound and administration and control oriented. TCCA/KSS forma-tion became an end in itself. As a result, a large number of KSS have noadequate productive investment -- such as irrigation -- as a foundation for
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their business. Moreover, IRDP training -- a major component of its program-- has lost its initial enthusiasm and effectiveness, and whatever traininghas been provided has largely been irrelevant for want of productive activi-ties to focus on. Finally, the TCCA/KSS system's input supply and marketingoperations have also been weak. Thus, despite noteworthy quantitativeachievements, the program has revealed serious limitations as too many TCCAand KSS perform poorly and too few members receive adequate services.
2.20 The key objective of the TCCA/KSS movement is to build up its ownresources to become self-financing entities. Performance in this regardhas been quite good relative to services offered. The total owned capitalwith TCCA was Tk. 92.5 M in 1980 against TK. 11.64 M in 1972. Owned capitalwas equivalent to 45% of the total ST credit channelled by the system in1980 and represented 44% of total outstanding loans. These figures, whichare substantially higher than those for the traditional cooperative sector,indicate the potential of the TCCA/KSS system to achieve financial viability.however, due to limited activities and income, most TCCA/KSS continue todepend on annual grants from IRDP to meet a major portion of their operatingand training costs. The distribution of more irrigation equipment in thefuture is expected to greatly help TCCA/KSS to achieve the critical objectiveof becoming self-sufficient.
2.21 The major input available to TCCA/KSS members has been short-termcrop production credit. Disbursement of short-term credit increased from Tk.16.2 M in 1973/74 to Tk. 204 M in 1979/80, mainly reflecting the expansion ofthe TCCA from 33 in 1972 to 267 in 1980. In 1978/79 ST credit was providedto about 398,000 farm families or 33% of the 1.2 M national total of farmfamilies who obtained credit from institutional sources, making the TCCA/KSSsystem one of the major channels of distributing credit to farmers in thecountry. Credit recovery performance of the TCCA/KSS has been the best amongthe agencies involved in institutional credit. In fact, of the 233 TCCA forwhich full data are available, 14 TCCA had 100% recovery, while 85% of theremainder had more than 70% recovery levels. The bulk of the recordedoverdues represented delayed payments, and defaults over four to five yearsare no more than 2.5% to 3% of total overdues. When the overdues and annuallending are compared with the owned capital, the credit-worthiness of thesystem is clearly evident as at no time during the 1973-80 period has theowned capital of the system been less than 50% of annual loans.
2.22 In most recent years participation of members in the ST creditprogram has tended to stagnate, mainly because the critically important input-- irrigation equipment -- which is the main stimulant of demand For ST andMT credit, has been in short supply. Moreover, cumbersome loan applicationand approval procedures, a much higher ST loan interest rate (17.5%) thanthat charged by other institutions (12%) and very tight lending conditionshave also been contributing factors. Finally, ST credit has further beenlimited by the fact that so far it has been confined to a narrow range ofcrops as a number of specialized agencies have been given the monopoly rightto provide credit for their activities (i.e. jute, sugar-cane and cotton,etc.). GOB has been considering proposals to rationalize the interest rate
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structure so as, inter alia, to reduce the disincentive for farmers to borrowfrom TCCA/KSS. Financing has been provided under the Agricultural CreditProject (Cr. BD-1147) for a review of cooperative agricultural credit toimprove lending procedures and eligibility criteria. This would help ensurethat the proposed project would be supported by an adequate supply of short-term credit.
2.23 The Government, recognizing both the shortcomings of IRDP and alsoits potential for the successful implementation of the Second Five-Year Plan,undertook a joint review of IRDP with the World Bank to prepare recommenda-tions of how to improve the effectiveness of IRDP operations in the future.The report of the review has been finalized and it is expected that itsmajor recommendations will be implemented in the near future. The major con-clusion of the report is that equitable development can only be achievedthrough programs dealing with groups, not individual farmers. Despite theshortcomings mentioned above, the IRDP and the TCCA/KSS system have demon-strated the potential for becoming a key factor in achieving equitable andefficient development, especially in the irrigation sector. However, tofully realize this potential, a number of improvements will have to be madein IRDP's organization, training programs, credit distribution, and marketing,as well as in its general operating environment. Most critical at this stageis the future status of IRDP. The joint review of IRDP concluded that itsprogram status was undesirable as it lacked the flexibility of an autonomousorganization. It was therefore recommended that IRDP be reconstituted as anIntegrated Rural Development Board (IRDB) expecting that the status of anautonomous agency would enable IRDP to more effectively carry out its taskof promotion and development. Although this recommendation was accepted byall parties involved and the program status of IRDP ended in July 1980, sofar no action has been taken by government to change the status of IRDP. Anurgent decision is needed as the present atmosphere of indecision and uncer-tainty is seriously affecting staff morale and thus IRDP performance. Con-sidering the importance of IRDP for the successful implementation of theproject, assurances have been obtained that GOB would take all necessarymeasures to strengthen and restructure IRDP not later than December 31,1982. The proposed project is expected to make a major contribution toimproving the TCCA/KSS cooperative sector, as it would strengthen IRDPservices and TCCA/KSS would be its primary beneficiaries in distributingirrigation equipment. In fact, it is generally recognized that GOB's ambi-tious development programs for irrigation and cooperative development areinterdependent: the best nucleus around which to build a strong TCCA/KSScooperative system is irrigation development, while equitable and efficientirrigation development can best be achieved by using the TCCA/KSS system.The achievement of this twin objective is the primary goal of the Second DeepTubewell Project.
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E. Agricultural Credit Institutions
2.24 Institutional lending for agriculture is directed and coordinated bythe Bangladesh Bank (BB), the country's Central Bank, and channelled throughcooperatives, Bangladesh Krishi Bank (BKB) and the six nationalized commercialbanks (CB). Lending has expanded rapidly, particularly during the last fouryears when it rose from Tk 1,060 M in 1976/77 to Tk 2,684 M in 1979/80,mainly as a result of the rapid expansion of the TCCA/KSS cooperative system,expansion of BKB and increasing involvement of CB in rural lending. Theannual lending program for each institution is drawn up by BB, which alsoprovides refinance as required. With nearly 80,000 village cooperativesocieties, 3,800 CB branches and 557 BKB branches Bangladesh has a goodcredit distribution network. Despite rapid expansion of rural lending inrecent years, overall demand for modern inputs and thus for crop productioncredit has remained limited mainly due to lack of irrigation equipment withoutwhich the use of modern inputs is often not profitable. It is one of themajor objectives of the SFYP to increase the availability of minor irrigationfacilities and thus stimulate rural lending in the future. Since the projectwould be implemented in the co-operative sector, the discussion of creditoperations is confined to those of the TCCA/KSS system (para 2.19) and theSonali Bank which is the banker of the system.
2.25 Sonali Bank is the largest commercial bank (CB) in Bangladeshwith the most experience in agricultural lending. Sonali operates through91i branches (630 rural) and has established a rural credit department witha 28 professional staff at head office. Because of resource constraints ofBSBL, the Sonali Bank has been the exclusive refinance agency for the TCCA/KSScooperative system since 1973/74. GOB offered a 30% guarantee to Sonali toback up its loans to the TCCA/KSS just as it did for the other nationalizedcommercial banks and BKB. Through FY80 Sonali Bank had made little use of theguarantee having called up only Tk 24 M. Hence, in early FY80, GOB advisedSonali that the guarantee would be discontinued as the loans to the TCCA/KSSsystem were considered to be such that Sonali could make them at its ownrisk. However, GOB guarantees have continued to be available to BKB and allother nationalized banks for the same type of loans under the special Agricul-tural Credit Program (the Tk 100 Crore Program). As a result of the with-drawal of the guarantee Sonali has tightened its loan recovery standards forTCCA which has led to a sharp drop in the number of TCCA/KSS eligible forfresh finance. With increasing demand for MT and ST credit by the TCCA/KSSsystem and for its own direct lending to other sectors, Sonali is understand-ably apprehensive about its liquidity position and its capability to ade-quately finance TCCA/KSS credit operations ir the future. To make TCCA/KSSlending attractive to Sonali, whilst allowing the TCCA/KSS system to retain asufficient margin for its viability without its on lending rate being markedlyout of line with other rates, BB has provided Sonali Bank with a 3% interestsubsidy for all future TCCA/KSS MT credit operations financed out of its ownresources. However, the BB 3% subsidy will not resolve Sonali's eventualliquidity problems and thus ensure an uninterrupted flow of MT and ST creditto TSSA/KSS in the future. Efficient distribution of credit under thisproject, and for Sonali's other lending operations with TCCA/KSS, can only be
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assured if adequate refinancing facilities are extended to Sonali by BB. Infact, the provision of these facilities is a prerequisite for a reassessmentof Sonali's tight lending criteria to TCCA/KSS and prevailing interest ratestructure. As noted above, the Agricultural Credit Project (Cr. 1147-BD)provides funds for a review of agricultural lending in Bangladesh. Theproposed project would support these efforts to rationalize the presentrather complex institutional set-up and policies for rural lending inBangladesh.
F. IDA Operations in the Minor Irrigation Sector
2.26 The North-West Tubewell Project (Credit 341-BD) was the firstminor irrigation project in Bangladesh financed by IDA. The project origi-nally became effective in September 1970, but due to the war of independencethe project had to be reappraised and therefore became effective inJanuary 1973 only. IDA prepared a project completion report in March 1981,the relevant findings of which are summarised below. The project financed3,000 new two cusec deep tubewells each designed to irrigate about 60 acres,also included were technical assistance to aid implementation and essentialimprovements in supporting services for command area development. Estimatedproject costs and economic rate of return were US$40.85M and 26% at appraisal,and US$45.5M and 23.3% after project completion. Project financing wasassisted by an IDA credit of US$14M, a CIDA credit of US$6M, and a SIDA grantof US$7.1M. Project implementation took considerably longer than anticipateaand the original closing date of December 31, 1976 was extended three times,finally to June 1982. Project implementation delays were mainly due toproblems Bangladesh had to face after the war of independence and also todelays in procurement, lack of BADC experience in supervising contractors andlack of experience and inadequate resources of the contractors themselves.Costs exceeded appraisal estimates even though components for agriculturalsupport services, 3 triai farms, experimental wells and distribution systems,and equipment for repairing the Brahmaputra Right Embankment, were not impie-mented. Most of the increases in cost were in foreign exchange expenditures.In fact, delays in procurement caused prices for diesel engines and turbinepumps to increase by 145% and 96% in 1973 and 1975 respectively. Projectobjectives and technical aspects proved generally sound. All 3,000 wells werefinally commissioned and the average command area exceeded the 60 acrespredicted at appraisal and will eventually average 70 to 80 acres. However,an evaluation study conducted by the Bangladesh Institute of DevelopmentStudies (BIDS) demonstrated that the appraisal mission had tended to be toooptimistic in their estimates of yields. Yields of about 40 mds/acre forboro rice were found by the evaluation study compared with the appraisalmission's estimate of 50 mds/acre. Yields of wheat, a crop not consideredat reappraisal, were 29 mds/acre. In designing the second project, specialemDhasis has been placed on streamlining procurement and installation proce-dure_ anc to promoting Command Area Development through expansion of theIrrigation Manaaement Program (IMP).
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2.27 The status of the other projects under implemention is brieflydescribed below: (a) Shallow Tubewell Project (Cr. 724-BD):- US$16 M,effective December 1977. All 10,500 pumpsets have been procured. About55X0 of the pumpsets have already been sold; (b) Low Lift Pump Project(Cr. 990-BD) US$37.0 Mi, effective September 1980. 3,000 two cusec LLP and1,500 one cusec LLPs were delivered in October 1980. Orders have alsobeen placed for the remaining 4,000 LLPs. Sales for the first phase havebegun with about 1,000 LLPs sold. A detailed project action plan has beenprepared; (c) Hand Tubewell Project (Cr. No. 1140-BD):- US$18.0 M. Thiscredit only recently became effective.
III. THE PROJECT AREA
General
3.01 The project area comprises 35 thanas, including 10 thanas of theMymensingh, 11 thanas of the Kishorganj and 14 thanas of the Dacca district(IBRD Map No. 16189). The gross area of the project is about 2,568,000 acresof which some 1,874,100 acres is classified as cultivable land. However,should the demand for deep tubewells in the project area be insufficient tocarry out the project, expansion into adjacent regions would be considered.The Comilla district would be treated as a priority area for such an expansionbut any other areas classed as suitable for DTWs might be included.
3.02 The project area was selected for deep tubewell installation onthe basis of: (a) farmers' demand for more irrigation water; (b) an identi-,ied additional groundwater development potential; (c) thick surface claysand low aquifer transmissivities making part of the area with relatively deepgroundwater levels, unsuitable for shallow tubewells (IBRD Map Nos. 16190 and16191).
Climate
3.03 The climate is tropical monsoonal, with heavy seasonal rainsinterrupted by a dry period of 5 to 6 months. The average annual rainfallvaries from about 70 inches (1800 mm) in the south-west of the project areato more than 120 inches (3000 mm) in the north-east. Almost 90 percent ofthe total annual rainfall occurs between April and October. Mean annualtemperatures are about 80 0F and range between 64 F in January to about 86 Fin May. Humidity is generally high throughout the year and very high duringthe monsoon. Potential evapotranspiration (Eto. as calculated by the Penmanmethod) is about 49 inches (1250mm), varying from 2.0 inches (51 mm) inDecember to 5.5 inches (140 mm) per month in April and May. Eto exceedsaverage monthly rainfall in the period between November to April.
Topography, Soils and Drainage
3.04 As in most of Bangladesh, the project area is of low relief andsubdued topography. However, three distinct physiographic units can be
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identified: the northern piedmont plain, the meander flooc plain of theold Brahmaputra river, and the Madhupur tract. The northern piedmont plain,situated in the extreme north of the project area, comprises gently slopingland at the foot of the Shillong Plateau. It is traversed by many streamsand rivers. The surface material is mainly sandy and silty. The predomi-nantly loamy soils of the plain are prone to shallow flooding during themonsoon; adjoining these soils are clay basins, which are subject to deeperflooding. The flood plain of the Old Brahmaputra is thought to represent aformer course of the Brahmaputra - Jamuna system. It consists of scars,levees and terraces of sandy and silty soils and of clayey basins. The wholearea, particularly the clay basins, is subject to flooding during the rainyseason. The Madhupur tract is a remnant of an older, Pleistocene alluvialterrace complex. The soils are normally clayey, but may be loamy wherelater drainage channels have cut into the Madhupur clay. The old terrace isgenerally slightly higher than the surrounding areas and therefore less proneto flooding. Nevertheless the lower parts of the tract are commonly inundatedat the heighf of the monsoon.
3.u5 The project area is drained by many streams and rivers, themost important of which is tne old brahmaputra. The major part of theflood plains is inundated curing the monsoon, the depth of flooding dependingon micro-relief.
uroundwater Resources (Annex 1)
3.06 The project area forms a part of the Bengal Basin, which in recentgeological times has been filled by the alluvial deposits of the Ganges,Brahmaputra and Meghna rivers and their tributaries. Within this alluvialsequence, the coarser clastic sediments predominate thus constituting a majoraquifer complex. This complex is saturated with groundwater, often to withina few feet of ground surface. In terms of stratigraphy the strata underlyingthe area are Quaternary alluvium resting unconformably on Tertiary sediments.Within the alluvium two distinct units can be recognized: the older Pleistocenedeposits of the Madnupur tract and the younger recent alluvium of the surround-ing area. Considerable efforts are being made to update data on hydraulic pro-perties, storage properties, and on aquifer recharge. The present level ofgroundwater abstraction is estimated at something just uncer one million acrefeet per annum. This project would approximately double this. This totalstill represents only about half of the estimated recharge.
Groundwater Development (Annex 1)
3.u7 A review of groundwater development in Bangladesh in general and inthe project area in particular indicate that one of the major constraints hasDeen a shortage ot trained iiela staff. All design decisions have been andare being made at the neacquarters of the various implementing agencies (i.e.BADC or BWDB'/'. Fiela staff (mainly divisional officers) are not given theautnorit- to make any major adaptations or the standara designs to particularsite conoaiions. Consecuentiy, the design of individual tubewells is veryr_ anc uav D ia_Clie atcention tc regional variationi or :ormation grading
anc Dermeanli-tv. bezter training or tne fiela staff is ttne solution to thisem.
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3.08 BADC's level of routine data collection and analysis from thedeep tubewells constructed in the project area in the past has also been poor.Formation identification is almost entirely by untrained people; very fewdrilling samples are analysed for grain size; acceptance pumping tests (step-drawdown tests) are routinely carried out, but the results are seldom compiledand analysed. Consequently, despite the drilling of more than 2,500 DTWs inthe area, its hydrogeology is not well understood. Adequate provision hasbeen made in the proposed project to ensure good training programs. Stafftraining together with better site supervision would allow more efficientdesign concepts to be established in the future.
Irrigation
3.0J9 Because of the relatively deep groundwater levels and thick surfaceclays, large parts of the project area are not suitable for STW installationand have therefore been earmarked for irrigation development by deep tubewells.however, both shallow tubewells and low lift pumps are being operated in someparts of the area. In total, the minor irrigation facilities in the projectarea are estimated as follows:-
Type Number
Deep tubewells 2600Shallow tubewells 2000Low lift pumps 3650
In addition, there are some traditional irrigation systems, which are concen-trated in the deeply flooded regions in the eastern parts of the project area.
3.10 It is estimated that about 20 percent of the cultivated area isunder some kind of minor irrigation. About half of that is irrigated fromgroundwater sources. The principal use of the various facilities is for boropaddy and for supplementary irrigation of aman crops. The average area irri-gated per DTW is reported to have risen steadily from over 30 to bO acres overthe past few years. Greater extension efforts and better credit facilitieswould be required to further improve the use of existing irrigation equipment.
Water Distribution System
3.11 Distribution of tubewell water to the irrigated fields is normallyby channel systems constructed by the farmers. These are mainly unlined,though brick and mortar lining has been used for the main channels in a fewcases and testing of alternative distribution systems is a feature of theUNDP, Command Area Development Project. Application rates are reported to beabout 2 inches (51 mm) at a time. With anything up to 100 farmers sharingthe water from a DTW, the irrigation roster has to be simple; normally itis based on delivering water to a particular part of the command area on aparticular day of the week. Improving layouts and management of the distri-bution system is an important element of IMP (para 2.12).
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Farm Size and Land Tenure
3.12 Farms in the northern section of the project area are generallylarger than those in the southern section, but all display the nationalcharacteristics of being highly fragmented. Farm holdings average about 3.5acres in the northern and 2.5 acres in the southern part of the project area.Share cropping is widely practised. The landless are estimated to be about50% of the population. The average number of fragments per farm is ten totwelve. Farmers cooperatives, therefore, are a pre-requisite for groundwaterdevelopment.
IRDP/TCCA/KSS in the Project Area
3.13 The project would cover 35 thanas of the Dacca, Mymensingh andKishoreganj districts. So far TCCAs have been established in 27 thanas , outof which 5 are quite new. There are 7,284 villages in the project area and4,276 KSS have been organized in 3,197 of them. Total membership of KSS is128,270 or 13% of the total farm families. The number of members per KSS isroughly 30. The total equity of these TCCA/KSS is Tk. 12 million or Tk. 94per member. Loans totaling Tk. 98.6 million have been extended to these KSSsince their inception, Tk. 61.5 million have been repaid (62.4% recovery) andof the remaining Tk. 37.1 million, Tk. 27.7 million is over due (all less than3 years old) and Tk. 9.4 are current loans.
3.14 As indicated in para 2.19 IRDP ranks TCCAs and KSS by five differentcategories reflecting their performance. The classification of TCCA and KSSin the project area is given below:
Category No. of No. of KSS Without TotalTCCA 1/ With Irrigation Irrigation
The above data indicate that more than 50% of the A and B category KSS do nothave any kind of irrigation facilities. It is likely that KSS in other categ-ories will improve their performance once irrigation equipment is available.Moreover, out of the 1930 KSS which have some kind of irrigation, only 917 haveDTWs. Hence, there is great potential for DTW sales among the existing TCCA/KSSin the project area. Finally, when the recently created five new TCCA startfunctioning, and eight more are established in the near future, demand of DTWby KSS groups is expected to increase further. By the end of the projectperiod about 8,850 KSS would have been set up in the project area. Thus, it
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is likely that there will be sufficient demand for DTW in the project area.As the sale of DTW to farmers has started in 1979 only, no adequate data areavailable to carry out a more systematic demand analysis. Experience gainedso far in selling DTW indicates that demand has always exceeded supply. Asmentioned earlier, (para 3.01) in case of a shortage of demand, expansioninto adjacent regions would be considered. Farmers' demand for DTW wouldbe kept under constant review during project implementation.
Agricultural Situation
3.15 The main crops are rice, jute, oilseed, wheat and vegetables. Overallthe project area is a deficit region for food grains. Transplanted aman whichis grown on the extensive shallow flooded lands of the old Brahmaputra, thenorthern piedmont plains, and the poorly drained level terraces and shallowflooded valleys of the Madhupur tract, is the most important crop. The normalcropping pattern is for transplanted aman to be preceded by aus and some juteon the slightly deeper flooded areas. Broadcast aus is the principal crop onthe well drained soils of the Madhupur tract and on the higher ridge land alongthe old Brahmaputra flood plain. Without irrigation, a considerable portionof land is under fallow in the dry season. hence, great potential exists toincrease cropping intensities by introducing irrigation facilities for theproduction of boro rice and wheat. The existing cropping pattern and averageyields together with those projected under the project are summarized in tables6.1 and 6.2.
Communications
3.16 The project area has a reasonable internal network of roads,railways, and waterways. Communications with Dacca are also good. Plans arecurrently being implemented to connect all the district capitals to Dacca bythe all-weather national highway system. The stretch between Dacca andMymensingh is being constructed. This connection will considerably shortenthe travel time between the two cities. Secondary roads are the responsi-bility of local government authorities, who have limited resources andtherefore do little regular maintenance. Most of these roads are not ofall-weather standard; consequently, much of the project area is inaccessibleto motorised transport during the monsoon. The numerous rivers crossing theproject area are of great importance for internal transport. In the wetseason much of the countryside is flooded and access to many villages ispossible only by boat. Transportation of bulky agricultural commodities,such as jute, is mainly by waterway. Railway communications are relativelygood with both Mymensingh and Kishoreganj connected by rail to Dacca.
Electric Power
3.17 The project area lies in the eastern zone of the electricitygrid system of Bangladesh. Spare capacity exists in the system, which couldbe used to supply power to some of the deep tubewells in the area. However,power distribution is a problem; electrification of the deep tubewells in thearea would be expensive and is sure to take a long time. There is also aproblem with the reliability of supply. It is reported that farmers withwells powered by electric motors complain of voltage fluctuations resultingin frequent interruptions of pump operation.
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IV. THE PROJECT
A. Project Objectives
4.01 The project primarily aims at increasing foodgrain production inthe project area through (a) increasing the irrigated area from 345,000 acresin 1980-81 to about 665,000 acres in 1985-86 by commissioning 4,000 DTh',(b) strengthening of TCCA/KSS (rural cooperative institution), (c) ensuringthat farmers have access to essential production inputs and credit. Theproject would also provide information to improve the design of wells anddistribution systems, increase the efficiency of implementing agencies andprovide additional groundwater data. The proposed project is an integral partof the Medium-Term Food Production Plan (MTFPP) which aims at attaining foodself-sufficiency by 1984-85.
4.02 The project design is based on experience gained from a number ofongoing projects in Bangladesh and, in particular, upon the recently com-pleted IDA financed Northwest Tubwell Project (Credit 341-BD), the ongoingRural Development Project (Credit 631-BD), and upon recommendations of theJoint GOB/IDA Minor Irrigation Sector (MIR) and the Integrated Rural Develop-ment Program (IRDP) Reviews.
B. Project Description
4.03 The project would include:
(a) procurement and installation of 4,000 two-cusec deep tubewellsincluding screens, casing, and pumpsets, and spare parts formaintaining these wells;
(b) procurement of 25 reverse circulation rotary drilling rigsand auxiliary equipment for these and 45 other drilling rigspresently owned by BADC;
(c) strengthening of BADC's capacity to plan, design and super-vise installation of DTW by providing additional staff,office facilities, vehicles, and monitoring and testingequipment;
(d) technical assistance - providing about 25 man-years of con-sultancy time for (i) BADC staff training (ii) pilot studiesto solve some special problems related to well design andoperation, (iii) regional groundwater studies outside theproject area, particularly in the Sylhet and Comilla districts,and (iv) training for IRDP staff and agricultural extensionservices;
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(e) strengthening of the IkDP and TCCA/KSS system for organizingfarmers' groups and expanding the Irrigation Management Program(IMP) through the project area, by providing incremental staff,office facilities, housing, vehicles for field officers, andtraining of thana staff and KSS members;
(f) rural credit - the provision of medium term credit throughBB and SB and to TCCA/KSS for purchase and installation of DTW.
(g) evaluation - providing consultant time to monitor and evaluatethe progress of the project by establishing base line data,and making mid- and full-term impact assessments.
(h) procurement of diesel fuel - to ensure fuel supply for IDAfinanced Minor Irrigation equipment.
C. Detailed Features
Provision and Installation of Deep Tubewells (Annex 2, Tables 2-7)
4.04 BADC would procure and install through local contractors 4,000 deeptubewells in the project area. Spare parts, sufficient for five years main-tenance and repairs would also be provided. In addition, 200 spare dieselmotors and turbine pumps would be procured for standby. Well componentswould include locally made steel casings and imported screens. 3,600 of thetubewells would be equipped with line shaft turbine pumps powered by dieselengines and the remainder would be electrically powered. The project wouldalso finance the construction of transmission lines and transformers toconnect the latter to the national electricity grid.
Provision of Drilling Rigs (Annex 2 - Table 8)
4.05 To assist BADC in attaining its objective to install targetednumber of DTW in SYFP, it would be necessary to provide additional rigsand auxillary equipment. The project would, therefore, provide for (a) 25reverse circulation rotary drilling rigs; (b) 140 tractors and trailerssuitable for hauling drill pipe and casing; (c) 55 well testing and develop-ment pumpsets; (d) 37 compressors (mainly 100 psi, 300 cfm); (e) 70 smallgenerators (about 5 KVA); and (f) 85 welding sets. These items would beimported to Bangladesh by BADC which would then sell them to selected drillingcontractors. Assurances have been obtained from GOB that adequate arrangementswould be made to provide MT credit to drilling contractors.
Strengthening BADC (Annex 2 Tables 9 and 10)
4.06 To strengthen BADC's capacity to plan, design and supervise theinstallation of deep tubewells and to carry out the proposed hydrogeologicalstudies the project would expand BADC's technical staff, provide consultantsand supply various items of hydrogeological equipment. Salaries, allowances,transport and office facilities would be financed for the following additional
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BADC staff: (a) Superintending Engineer with supporting staff in Dacca; hewould be responsible for implementing BADC's component of the project; (b) 3Executive Engineers to be stationed in Mymensingh, Kishoreganj and Dacca;they would oversee the project activities in their regions; (c) 9 AssistantEngineers, three of whom would come under each Executive Engineer; (d) 50sectional officers who would provide field supervision of tubewell installa-tion. Appointment of the Executive Engineers would be a condition ofeffectiveness.
Technical Assistance (Annex 2 Tables 11 and 12)
4.07 The project would provide the services of a consultant team consist-ing of the following specialists: (a) team leader (groundwater engineer)for 48 months; (b) irrigation engineer for 36 months; (c) hydrologist for44 months; (d) field engineer for 36 months; (e) electrical and geomechanicalengineer for 36 months; (f) modelling specialist for 12 months; (g) hydrologistfor 6 months; (h) cooperative adviser for 44 months; and (i) irrigation agri-culturist for 36 months. Overall, technical assistance would require about 300man/months of foreign consultant services and have an estimated total costof US$3.3 million. The average man/month cost, including salary, costs, fees,international travel and subsistence is expected to be about US$11,000. Inaddition to these personnel costs, the contract would include the cost ofvehicles, monitoring, training and office equipment, as well as funds forstudies and investigations. The expatriate personnel input would comprisesenior level high caliber expertise in the fields of irrigation and groundwatertechnology as well as cooperative development and agricultural extension work.BADC and IRDP would assign a counterpart engineer to each of the expatriateexperts for training and assisting with the consultant's work load. Agreeddetailed TOR of consultants are given in Annex 2, Appendix 1.
4.08 Ground Water Studies. The project would provide for groundwaterstudies in the project area and for regional groundwater studies in Comilladistrict and part of Sylhet district (IBRD Map No. 18189). These studieswould include exploratory drilling, test tubewell construction, and pumptesting. The project would finance the procurement and operation of hydro-geological equipment necessary for analyzing the information collected fromtubewell construction, and essential for the studies to be carried out withinand outside the project area. This would include: (a) 100 hydrolyticconductivity meters; (b) 100 standard sieve sets; (c) 150 water level indi-cators; (d) 20 portable chemical laboratories; (e) 3 sets of geophysicallogging equipment; (f) 6 water samplers; (g) 15 sets of survey equipment. Inaddition, materials (pipe and screening) for 18 piesometers, to be used forinterference pumping tests and later for monitoring, would also be provided.For the study areas outside the project area, funds would be provided for theexecution of: (a) 40 long term pumping tests; (b) 20 exploratory boreholes;(c) full chemical analyses of up to 550 water samples. Construction of say,40 test deep tubewells will be necessary in these study areas. These wouldbe drawn from the 4000 tubewells of the project and would be converted topermanent irrigation wells, if successful.
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4.09 Pilot Scheme to Study Improved Distribution System: In many minorirrigation installations in Bangladesh substantial conveyance losses occurdue to poor distribution. The project would install lined channel and pipeddistribution systems for about 40 DTW in the project area. The objectivesof this pilot scheme would be to (a) measure conveyance losses under linedand unlined channels and also with and without pipe distribution system;(b) estimate cost-effectiveness of these installations for optimum use ofirrigation water. BADC would appoint an Executive Engineer in charge ofthis work under the guidance of the consulting Irrigation Engineer.
4.10 Experimental Program to Test Tubewell Designs. The project wouldinclude a pilot program to test alternative deep tubewell designs. In someareas, slimmer naturally developed wells might be the most efficient design;overall there might be scope for the use of cheaper plastic materials forcasings and screens. Also there have been some interesting attempts atdeveloping cheaper types of deep well pumps recently; these should be testedunder Bangladesh conditions. All experimental tubewells constructed underthis program would be converted to permanent production wells, if successful.Assurances have been obtained that detailed plans for the testing programwould be submitted for IDA review by June 30, 1983 and Executive Engineerin charge of the Scheme would be appointed by December 31, 1982.
Strengthening of IRDP/TCCA/KSS Program (Annex 2, Tables 13 to 14)
4.11 The project would provide office equipment, vehicles and incrementalstaff at the IRDP headquarters, district and TCCA levels. By the end of theproject period, it is expected that about 8,850 KSS with a membership of about400,000 would be established as against the existing 4276 KSS. Membership perKSS is expected to increase from 30 to 50 at the end of the project period.Because of the projected increase in the number of KSS, their membership andincreased workload of implementing the Irrigation Management Program for 4000DTWs by the end of the project period, the project would provide the followingincremental staff: one Deputy Director, one Assistant Director, one accountantwith other support staff for the headquarters; 3 Deputy Project Directors atdistrict headquarters (one for each district) and 35 Deputy Project officersat the TCCA level. It would be a condition of credit effectiveness that fourDeputy Directors had been appointed. In addition, the project would provideone vehicle for headquarters, 3 vehicles for the 3 districts and 38 motor-cycles. (3 for districts and 35 for TCCAs) and 500 bicycles for thanas.
4.12 Training for IMP. To ensure optimum use of the irrigation equipmentin the project area, the project would meet the cost of training necessary forcarrying out the Irrigation Management Program. This training would be heldat district and thana levels.
4.13 Thana Facilities. The existing thana facilities in the project areaare detailed in Annex 3 Table 2. The project would provide for TCCA officebuildings, housing for TCCA/KSS and other project related staff.
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4.14 Staff office facilities are essential for successful project imple-mentation. At present only 16 TCCAs out of the existing 27 have officefacilities. The project, therefore, would provide financing for the con-struction of 19 TCCA buildings. The design and construction would followthe standard now in use which provides for a one story building which issatisfactory.
4.15 Staff accommodation is of high priority as in most thanas privatehousing for staff to rent is limited. The staffing requirements for a fullTCCA/KSS program varies between 18 to 26 officers per thana, including IRDPstaff at the thana level and other project related staff such as BADC and DAE.At present, there are only 74 twin quarters in the project area. To provide aminimum of 4 twin quarters per thana, the project would construct 66 additionaltwin quarters in the project area. IRDP staff and project related staff wouldbe given priority in the allocation of these quarters.
Rural Credit
4.16 The project would provide medium term credit to TCCA/KSS to financemost of KSS/farmers' contribution to the financing of DTW. IDA funds wouldbe passed on to the Bangladesh Bank, which in return would refinance mediumterm credit extended by Sonali Bank to TCCA/KSS. Assurances have beenobtained from GOB that lending terms and conditions would be as detailed inparagraph 5.09 and schedule "A". These would form part of a Subsidiary LoanAgreement between GOB and Bangladesh Bank and a Participation Agreementbetween Bangladesh Bank and Sonali Bank. Lending terms and conditions of thecredit component under this project would be similar to those agreed upon inthe recently approved "Agricultural Credit Project" (Cr. 1142-BD).
Project Evaluation
4.17 The project would provide funds for evaluating project performance.A recognized institute like the Bangladesh Institute of Development Studies(BIDS) would be contracted for this purpose. Project evaluation would involvethree reports, a benchmark survey at the start of the project; a mid-projectreview and an evaluation report at the end of the project. Detailed plans forproject evaluation would be submitted for IDA review by March 31, 1983.
Diesel Fuel (Annex 2 - Appendix 2)
4.18 To ensure that irrigation facilities fielded under IDA-supportedprojects will not be affected by a shortage of diesel fuel during the FY83irrigation season, the project would provide the foreign exchange needed(US$10 M) to finance the import requirements for diesel fuel (about 29,000tons) for all minor irrigation equipment expected to operate under any ofIDA's irrigation projects during FY83. This component of the project is partof IDA's contribution to alleviate the growing shortage of foreign exchangein Bangladesh. In fact, uncertainties in diesel availability would not onlyaffect foodgrain production during the FY83 dry season, but also have adetrimental impact on farmers' demand for additional equipment being madeavailable, in particular DTW to be provided under this project.
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D. Cost Estimates and Financing
4.19 Total project costs are estimated at US$142 M equivalent includingUS$9.5 M in taxes and duties. The foreign exchange component is estimatedat US$92 M or about 65% of total project costs. Estimated costs to befinanced by IDA and GOB are based on price levels prevailing in October 1981adjusted for expected domestic and international inflation to expected mid-1982 levels. Estimated costs to be financed by ODA and ADAB are based onprevailing mid-1982 price levels in the United Kingdom and Australia.physical contingencies included in the estimate amount to 5.5% of base costs.Contingencies included for forecasted price escalation over the four yearproject period amount to 16.5% of base costs plus physical contingencies.If costs for imported diesel fuel, for which no physical and price contin-gencies have been calculated, are excluded (see para. 4.18) total contingen-cies would represent 25% of the base costs of the remaining project components.This amount is considered to be adequate to cover future price increases andother project uncertainties. Project costs are detailed in Annex 2 andsummarized in Table 4.1.
(Table 4.1 - Summary of Project Cost)
4.20 The project would be financed by several foreign and local sourcesas summarized in the following table.
(Table 4.2 - Financing Plan)
- 23 -Table 4.1 Summary of Project Cost
Item Local Foreign Total Local Foreign Total % of Total(Tk million) (US$ million)
A. Procurement of 4,000 55 871 926 2.82 44.66 47.48 41.08DTWs including spareparts
B. Installation of 4,000 567 188 755 29.07 9.64 38.71 33.50DTWs
C. Drilling rigs and 37 148 185 1.90 7.58 9.48 8.20auxiliary equipment
D. Capital and incremental 23 9 32 1.18 0.46 1.64 1.43operating costsfor BADC
E. Capital and incremental 51 25 76 2.62 1.28 3.90 3.38operating costs for IRDP
Total Project Cost 973 1,795 2,768 49.89 92.04 141.93 123.80
1/ Physical contingencies are based on assessments made by the different financing agenciesconcerning the uncertainties of the project components to be financed by them.
2/ Price contingencies reflect projections made by the different financing agenciesconcerning the expected inflation rates in Australia, Bangladesh, United Kingdom andworld markets. See details in individual cost tables in Annex 2.
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"TABLE 4.2 Financing Plan(US$ Million)7 -
GOB Sonali KSS ODA ADAB IDA TotalFarmers Including
Contingencies
A. Procurement of 4,000 26.92 29.84 56.76DTWs including spareparts (c.i.f. Chittagong)
B. Installation of 23.43 2.54 2.85 22.87 51.694,000 DTWs
C. Purchase of drilling 2.23 9.00 11.23rigs and auxiliaryequipment
D. BADC 0.78 1.32 2.10
E.IRDP 1.26 3.56 4.82
F. Consultancy services 0.70 4.22 4.92including trainingand studies
G. Project evaluation 0.41 0.41
H. Imported diesel 10.00 10.00fuel
Total Financing 28.40 2.54 2.85 31.14 9.00 68.00 141.93
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The proposed IDA credit of US$68 14 would be made to GOB on standard termsand would cover about 51% of total project co,t net of taxes and duties(US$132.5 M). IDA financing would contribute to all project componentsexcept consultancy services and drilling equipment. IDA would mainly finance(a) the procurement of DTh components; (b) MT credit to be distributed toTCGA/KSS for the purchase of DTW; 1/ and (c) the importation of diesel fuel.British grant aid (ODA) of about US$31.1 M1 is earmarked to finance theprocurement of DTW components (c.i.f. Chittagong) and the foreign exchangecosts of consultancy services including studies and training. Australiangrant aid of about US$9 lvi will be allocated to the purchase of drilling rigsand auxiliary equipment. Thus, foreign aid would total US$108 M and coverabout 82% of total project cost, net of taxes and duties. It would financeall foreign exchange expenditures (US$92 M1) and about 40% of local costs(US$40.5 M); the latter would be financed by IDA.
4.21 The balance of project financing (US$34 Mv) would be covered byKSS/tarmers, Sonali Bank and GOB. Most of the local financing would berequired to finance the construction cost for the 4,000 DTW to be installedduring project implementation. About 55% of these installation costs wouldbe financed by KSS/farmers, as farmers are expected to make an increasingcontribution to the financing of DTWs in the future (see details in para 7.07).KSS/farmers would contribute 10% to the estimated cost of a DTW in the formof a cash-downpayment, ttLe remaining 90% would be financed by a medium termloan extended by the sonali bank. Sonali bank contribution, estimated at10% of the mT ioai,, would come trom its own resources, the remaining 90%would be refinancec by the Bangladesh Bank (BB), which in turn would berefinanced by GOb/IDA (see details in para. 5.09). GOb would execute aSubsidiary Loan Agreement with BB under which it would on-lend US$22.87 X
equivalent to BB on terms and conditions described in Schedule A. Refinancingof SB would be subject to the completion of d Participation Agreement betweenBB and SB. It would be a condition of effectiveness that both agreements weresatisfactory to IDA and tiad been properly executed. The remaining 45% of DTWinstallation costs (USj23.43) woula be iinanced by GOB counterpart fundsand included in BADC's annual budgetary ailocations. Moreover, BADC wouldreceive cash down-payments from KSS/farmers aO well as the amount of MT creditextended by SB to TCCA/KSS tor the purchase oI DTN. Tnese runids would enableBADC to pay drilling contractors and cover all ott,e iocad. inistallation costs(i.e. transportation of DTW equipment on site).
4.22 The balance ot GOB counterpart runds (US*4.971 4ouIO _uver part otthe local costs of the remaining components of the projecL. IThus, public (GOB)financing would amount to US$28.40 1, or US$19.90 M1 if taxes adud duties arededucted. If private funds of US*5.39 X (farmers and Sonali Bank) are addedto those of GOb, the implementation ot the DTW II project would require themobilization of US$25.29 Mv of public ana private savings representing about19% of total project costs net of taxes and duties. This amount is believedto be an adequate local contribution, considering GOB's continued difficultbudgetary situation as well as the limited development prospects of thecountry in the medium-term ruture. iunds would be made available to the
1/ As `T Credit covers oLi\ IaDuL DUa jl Etih inStallaLon cost and none ofthe procurement expenditures or iT; Lomponcnts kc.i.r. Chittagong), nodoublv tinancini- is invoiveL.
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implementing agencies in the form of budgetary allocations. It would be acondition of effectiveness that a Project Proforma (PP) satisfactory to IDAhad been approved by GOB and Annual Development Program funds for year 1 lhadbeen allocated.
Procurement
4.23 Delays in procurement of deep tubewell components and equipmenthave created unusually long "lead ins" to the implementation of past and on-going projects. To avoid such delays, draft tender documents were preparedand mutually agreed between IDA and GOB immediately after appraisal. Procure-ment of goods and services out of the funds provided by agencies other thanIDA would be subject to terms and conditions agreed upon between GOB andconcerned lending agencies.
4.24 Tenders for Well Drilling and Installation (US$23.21 MvI). Contractsfor well construction would not be suitable for ICB because the work would betoo small-scale and dispersed to attract international interest. Drillingcontracts would be let for the number of DTW required in each geographicalarea (thanas). Each contractor would be awarded contracts to construct about40-60 wells (each costing US$5,800). The contract for well constructionwould therefore be let following Local Competitive Bidding (LCB) proceduressatisfactory to IDA. The tendering would be done by BADC which would "postqualify" the tenderer to determine the number of wells each tenderer wouldbe qualified to contract for. Ex-post review by IDA would be undertaken ofa 25 percent sample of these contracts.
4.25 Tenders for Deep Tubewells Components (US$29.8 iMi). The DTW compo-nents would include 1,150 diesel engines plus spares; 3,600 turbine pumpsand gear boxes; upper well casings, well screens as well as reducer and baleplugs for 4,000 DTW. The DTW components would be purchased under ICB proce-dures. Local manufacturers would be allowed a preference of 15% in concurrencewith IDA guidelines. Tender documents for DTW components exceeding US$100,000would be submitted for IDA review.
4.26 Vehicles (US$0.29 Mi) would be purchased under ICB procedures.
4.27 (a) Civil Works (US$3.8 M) would not be suitable for ICB becausethey would include relatively small simple structures widely distributedthroughout the project area. Construction of thana facilities would bethrough contracts with local contractors let under Rural Works Program'sCompetitive bidding procedures which are satisfactory to IDA. Ex-postreviews would be undertaken of a 25% sample of these contracts.
(b) Civil Works (US$0.8 M) for channel lining would be carriedout by force account.
4.28 Furniture, and office equipment (US$0.19 M) would be procured bylocal competitive bidding. Of-the-shelf items costing less than US$25,000and not more than US$200,000 in aggregate would be procured through normalGovernment procedures.
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4.29 Diesel (US$10 M). The Bangladesh Petroleum Corporation (BDC) hassole responsibility for importing refined petroleum products and would procurediesel fuel for BADC. Considering the present state of the oil market andthe limited volume of diesel to be financed under the credit, procurementunder ICB would not be practicable. Procurement would therefore be bynegotiated contract, which would require IDA approval. To simplify procure-ment and to obtain the maximum possible amount of diesel fuel under thecredit, procurement would be in one tranche early in the project.
4.30 Each agency (BADC and IRDP) would be responsible for its procure-ment under the project and would maintain records of equipment and servicesprocured under the project for preparing applications for reimbursement fromIDA.
Disbursements
4.31 Disbursements would be made against:
A. DTW equipment; vehicles, motorcycles; bicycles and officeequipment (US$26.40 M);
(i) directly imported; 100% of foreign exchange;
(ii) locally manufactured; 100% of ex-factory cost;
(iii) locally procured (off-the-shelf); 65% of local expenditures.
B. Civil Works:
(i) construction of office buildings, staff houses and sheds;90% of local expenditures (US$2.90 M);
(ii) command area development (channel lining and piping);90% of local expenditures (US$0.50 M);
C. Amounts disbursed by Bangladesh Bank (BB) to refinance MT loansmade by Sonali Bank; 100% of local expenditures (US$17.70 M).
D. Project Monitoring and Evaluation; 100% of local expenditures(US$U.20 M).
E. BADC and IRDP salaries for local project staff; and IMPtraining; 60% of local expenditures (US$0.50 M).
F. Diesel fuel; 100% of foreign expenditures (US$10.0 M).
G. Unallocated; (US$9.80 M).
Disbursements under (a), (b(i)), and (f) above would be fully documented.Disbursements under (b(ii)), (d), (e) would be made under statement of expen-ditures, certified by the Superintendent Engineer, BADC. Disbursements under(c) would be made against Bangladesh Bank certified statements of loans made
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by Sonali Bank and refinanced by BB. BB would verify each application forrefinance by SB which would issue a completion certificate for each completedloan and BB would carry out sample checks. The supporting documentation wouldnot be submitted to IDA but retained at a central location and made availablefor inspection by IDA staff on request. Participating agencies have adequateadministrative and accounting capabilities to prepare and maintain SOE records,including facilities to keep them available for inspection. Expendituresdisbursed against certified statements of expenditures would be auditedannually by independent auditors, acceptable to IDA. The sc'aedule of esti-mated disbursements is shown in Annex 4, Table 1. It is expected that dis-bursements would be completed by December 1986, approximately six monthsafter the end of the project. Disbursements differ from the Bank's historicaldisbursement profiles, as about 90% of project costs would consist of equip-ment, the procurement of which is expected to be completed within three years.Disbursements are, therefore, expected to be made at a faster pace thanindicated in the Bank's profiles.
Accounts and Audit
4.32 Assurances have been obtained that BADC and IRDP would maintainrecords satisfactory to IDA, to identify physical and financial transactionsrelating to the project. Project accounts would be prepared annually by thechief Engineer DTW and the Director General, IRDP. Assurances have beenobtained from GOB that Auditors acceptable to IDA would audit these accountsas well as statements of expenditures, where applicable, and that auditedaccounts together with auditor's comments would be sent to IDA within sixmonths of the close of the fiscal year. Auditing procedures of participatinginstitutions are satisfactory but audit of TCCA/KSS is not up to date.Assurances have been obtained from GOB to: (a) present by March 1983 aninventory of TCCA/KSS in the project area showing the date of the last auditfor each, (b) work out a phased plan for bringing the audit up to date byJune 30, 1985, and (c) submit a quarterly report on progress of the auditprogram.
V. PROJECT IMPLEMENTATION
Organization and Management
5.01 The following government agencies would be involved in implement-ing the project. The Ministry of Agriculture would have two agencies partici-pating in the project area: (i) BADC would be responsible for: procuringwell equipment and organizing and supervising DTW drilling, constructing andcommissioning; carrying out groundwater studies and maintaining and updatingthe groundwater model; and providing technical support to TCCA/KSS in CommandArea Development (CAD); (ii) Department of Agriculture and Extension would beresponsible for supplying extension services in the project area.
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5.02 The Ministry of Local Government, Rural Development and Cooperativeswould have two agencies participating in the project area. (i) IRDP wouldbe responsible for organizing and supervising the operation and management ofTCCA/KSS and, jointly with BADC and Agricultural Department be responsible forCAD through expansion of IMP in the project area. (ii) Rural Works Program(RWP) would be responsible for constructing thana facilities.
5.03 Bangladesh Bank would be responsible for refinancing the Sonali Bankfor project lending to TCCA. The Sonali Bank is the lending agency for theTCCA/KSS system and has an adequate network of branches in the project area.
Project Coordination
5.04 At the national level a small Project Coordinating Committee (PCC)would be set up comprising:
- The Secretary, Ministry of Agriculture and Forestry - Chairman- The Chairman BADC - Member- The Director General - IRDP - Member- The Superintendent Engineer RWP - Member- The Representative of Bangladesh Bank - Member- The Representative of Sonali Bank - Member- The Chief Engineer DTW, BADC - Executive
Secretary
The PCC would be responsible for coordinating project activities. The ChiefEngineer DTW would be responsible for overall project implementation. TheSuperintending Engineer BADC in charge of the project, and the Director ofField Services IRDP, would be responsible for implementing and reportingprogress and handling reimbursement procedures for their respective compo-nents. At the district level coordination would be through a DistrictProject Executive Committee (DPEC) chaired by the Deputy Commissioner of theDistrict. The members would include District Extension Officer, RegionalRepresentative Sonali Bank, Project Director, IRDP; and Executive Engineer,BADC as Executive Secretary. At the thana level coordination would be doneby TCCA. Establishment of the PCC, and DPECS would be a condition of effec-tiveness.
Implementation Schedule
5.05 The proposed implementation schedule is shown in chart (WB 23534).The project would be completed within 4 years. BADC would install 400 DTW inyear 1 and 1200 DTW in each following year. Based on its experience and withthe assistance from consultants to be provided under the project, BADC wouldbe able to successfully handle the technical problems in tubewell siting,such as sufficient command area, suitable site, risk of flooding, hydro-geological conditions. All DTWs would be installed by local drilling con-tractors. BADC would import the drilling equipment and then sell it tocontractors. Based on past performance, it is evident that a sufficientpool of drillers exists in Bangladesh. BADC has more than 125 pre-qualifieddrilling contractors. Each contractor would be allocated a contract for the
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construction of 40-60 wells in a specific geographical area (thanas) of theproject. For details on drilling capacity see Annex 1 pages 61-64. however,the following actions would be necessary for timely implementation.
(a) Improving Drilling Capacity. The production capacity ofthe local drilling contractors would not be sufficient toinstall DTW at the required rate without the timelysupply of the incremental drilling machinery and auxiliaryequipment to be provided under the project. BADC wouldensure that equipment be procured on time, well componentsbe available to contractors on time, and site selectionproceed well in advance of drilling requirements.
(b) Training BADC Staff. To ensure timely implementation,training programs would be organized for the newly hiredBADC staff, particularly for the divisional officers insite supervision. It is proposed to establish a trainingcenter under the control of an Executive Engineer wherelectures and demonstrations would be held; manuals wouldbe prepared which would lay out site supervision duties ina step by step manner. BADC and IRDP would also ensurethat training programs in IMP procedures would be carriedout for all concerned staff (para 2.12).
Group Formation and Site Selection
5.06 The first step would be to establish farmer groups with the assis-tance of IRDP. Only TCCA/KSS groups preferably A or B category, would begiven the right of first users. However, should the response be inadequate,the policy would be reviewed jointly by GOB/IDA. The farmers' group wouldthen apply for the purchase of a DTW in a prescribed form to TCCA. TCCA incollaboration with IRDP and BADC would scrutinize the application as to thecredit worthiness of the KSS and jointly ensure that the site selction criteriaare adhered to. The difficulty of BADC and IRDP in selecting suitable wellsites in advance of drilling has been one of the major causes of delay. It is,therefore, important that site selection procedures be improved. The suggestedsite selection criteria are: (a) DTW should not be located in areas which, inaccordance with criteria laid down by GOB, are more suitable for STW; (b)command area for 2-cusec capacity DTW should include a minimum of 80 acres ofland; and (c) topography of the command area should be suitable for deliveryof water to all participating farmers. To ensure optimum use of DTW, it isessential that the water distribution system be designed soon after the sitingof DTW is completed. The proposed command area should then be surveyed andthe lay-out of the distribution system - indicating the feeders and fieldchannels - be finalized within one to two months of the selection of thetubewell site and the construction of the distribution system be completedin about one month after the installation of DTW.
Loan Application Procedures
5.07 Loan application procedures would be that (a) KSS would apply fora DTW in the prescribed form along with a 10X downpayment but not less thanTk 10,000; (b) on receipt of the downpayment, the Assistant Engineer/Sectional
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Officer of BADC in collaboration with IRDP would determine the feasibility otthe DTW as outlined in para 5.06 above, and would then send the application tothe Executive Engineer for allotment of DTW; (c) simultaneously the TCCA wouldprocess the application with Sonali Bank for granting the loan. The numberof DTW to be installed in a given year would be pre-determined before thestart of each year. The receipt of applications with downpayment would berestricted to the estimated number of DTW to be installed in that year plus10% and DTW would be allocated on a first come first serve basis. The priceto be paid by KSS for DTW would be the price applicable on the date on whichthe application and downpayment are received by BADC.
Operation and Maintenance of DTW
5.08 There have been very few mechanical problems with tubewell pumpand engine operations and maintenance because (a) most of DTW have been inoperation for a relatively short time, (b) few of the tubewells are usedintensively (say pumping more than 1000 nours/yr), and (c) with a substantialpercentage of the DTW not being pumped at all, there is a ready source otpump and engine spares available. Maintenance and repairs of pumps andmotors have traditionally been done by BADC. However, under the privatisationpolicy of GOB, these functions are to be handed over to the private sector.As agreed between GOB and IDA under the Imports Program Credit X, BADC wouldsell spares to the private sector and, wherever BADC undertakes repairs, itwould charge full cost for spares and services so as not to undercut theprivate sector. IRDP and BADC staff would continue to work with irrigationgroups to ensure implementation of IMP procedures for high level utilizationof the equipment.
Flow of Medium Term and Short Term Credit
5.09 The successful implementation of the project would require the dis-tribution of Tk 496 million of MT credit and Tk 615 million of ST credit 1/ bythe Sonali Bank (SB) to participating TCCA/KSS. As mentioned before, (para2.24) Bangladesh Bank (BB) provides a 3% interest subsidy on SB medium-termlending operations. however, interest subsidization would not resolve SBeventual liquidity problems and thus ensure an adequate and uninterruptedflow of medium-term credit to TCCA/KSS. It is, therefore, propbsed that allmedium-term loans extended to TCCA/KSS under this project be eligible for BBrefinancing under terms and conditions similar to those agreed upon in the"Agricultural Credit Project" (Cr. 1142-BD) and the IFAD financed "SouthwestRural Development Project" (Loan 73BA). BB would thus finance about 80% ofthe DTW selling price, whereas the balance would be covered by SB (10%) andparticipating KSS/farmers (10%). Medium-term credit terms and conditions as
well as participating agencies contributions are summarized in the followingschedule:
1/ At full development in year 7; in current terms.
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Annual Interest Rates
KSS loans to final borrowers 14.0%TCCA to KSS 10.5%SB refinance to TCCA 6.5%BB refinance to SB 4.0%GOB loans to BB for refinancing SB 3.0%IDA credit to GOB Standard
Contribution
Farmer's contribution 10%TCCA/KSS loans to final borrowers 90%SB refinance to TCCA/KSS 100%BB refinance of SB loans to TCCA/KSS 90%GOB on-lending to BB 100% of BB refinanceIDA disbursements 100% of BB refinance
5.10 Interest charged to final borrowers would not be less than 14% whichwould be in line with interest rates presently charged by commercial banksin other sectors (12%) and about 2% above the projected inflation rates.Because of possible changes in inflation rates, consultations on interestrates would be undertaken between GOB and IDA from time to time. Interestspreads of 2 1/2% to SB for refinancing TCCA/KSs and 7 1/2% for TCCA/KSSwould cover lending costs and ensure reasonable returns to participatingagencies. The loan repayment period would be nine years including one year'sgrace on principal. Installment repayments between SB and BB would coincideapproximately with agreed collections from ultimate borrowers (see detailsin Schedule A). These credit proposals are considered sound because (a) thefarmers' financial participation would be an incentive to efficient useof DTWs in the future, (b) Sonali's contribution would ensure that loanswould be properly administered and recovery standards kept at strict, butreasonable levels, and lastly (c) IDA financing of credit would avoid theconstraint of GOB's national credit ceiling, as foreign exchange financedcredit would not fall within the purview of this credit ceiling.
5.11 The installation of 4,000 DTWs in the project area together with theadoption of the Irrigation hanagement Program would require the distributionof ST credit, which would, indeed, be essential to achieve the full benefitsof the project. However, as described earlier (see para 2.25) SB's eligi-bility criteria for TCCA/KSS are extremely strict because of a lack of eitherrefinancing by BB or government guarantee. The application of these eligi-bility criteria is causing hardship to KSS and individual members, as evi-denced by the decline in borrowing members both as a percentage of totalmemberships and in absolute terms. There is thus a need for greater flexi-bility in the application of loan recovery standards and criteria for dis-tributing credit to KSS/farmers in the future. The present rather complexinstitutional set-up and policies for rural lending in Bangladesh will bereviewed by GOB and IDA during coming months. Moreover, considering thegrowing financial difficulties of the country, the review would also analyzethe short-term credit requirements for agriculture, which so far have beenmet by local public and private funds. ln case foreign financing would be
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required, the inclusion of a ST credit component in a future IDA operationwould be considered; the proposed IDA Second Rural Development Project wouldbe particularly appropriate. Short-term credit needs for the DTW II projectwhich will be rather limited during the first year of the project implementa-tion (Tk 8 million), would then be included in the estimate of the incrementalworking capital requirements of the TCCA/KSS system. It is expected that thejoint review and the eventual IDA financing of ST agricultural credit wouldcontribute to setting up a more flexible and responsive agricultural creditsystem in Bangladesh.
VI. PRODUCTION, MARKETING AND PRICES
Cropping Patterns
6.01 The provision of tubewell irrigation water in the project area wouldlead to increased cropping intensity and a shift from low yielding and riskycrops to relatively risk free and high yielding irrigated crops. Rice wouldcontinue to dominate the cropping patterns, but a considerable change wouldoccur in the relative importance of rice crops. Indeed, the main effect ofirrigation would be to add a boro crop to the present T.aman dominated crop-ping pattern. Boro would be cultivated mainly as a replacement to B.aus cropson lands which currently remain fallow during the dry season. Moreover, inparts of the project area with permeable soils the project would also leadto a substantial increase in irrigated wheat, replacing oil seeds and B.aus.Finally the availability of supplementary irrigation during the early andlate monsoon season would enable farmers to use more high-yielding varieties,invest in more inputs and improve cultural practices, mainly for T.aman crops.The expected cropping pattern changes in the command area are summarized in thefollowing table.
Table 6.1 Present and future Cropping Patterns(000 acres)
Present Future with Project
B. aus 166.4 -T. aus - 04T. aman (Local) 96 64T. aman (HYV) 16u 192Boro (HYV) 144Wheat - 176Oiiseeds 25.0
Total Uroppcd Ared 44t 646
Net Cultivated Area 320 320
Cropping lntensity 14U0; 200%c
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As the Table indicates, the provision of irrigation water by DTW would add atotal of 192,000 acres to the present cropped area reflecting an increase incropping intensity from 140% to 200%. More details of the cropping patternsarea irrigated and phasing of DTW are presented in Annex 5 Table 1.
Yields and Production
6.02 The availability of an assured water supply under the direct controlof KSS/farmers would be expected to change attitudes towards risk. The assuredwater supply would make larger and more effective use of high yielding varie-ties, fertilizers and pesticides more attractive to farmers, while thestrengthening of TCCAs and KSSs would enable an increasing number of farmersto obtain credit for purchasing inputs. It is therefore expected that farmersbenefitting from the project would achieve increased yields as shown in thetable below.
Table 6.2 Present and Future Average Yields/Acreand Production Levels in Project Area
Yields (mds/acre) Production '000 mdsP W P W
B. aus 10/12 - 1,779T. aus - 31 - 1,984T. aman (Local) 15/20 20/25 1,710 1,460T. aman (HYV) 25/30 30/35 4,450 6,300Boro - 40 - 5,760Wheat - 30 - 5,200 (196,944 tons)Oilseeds 3 - 77 -
Total Paddy 7,939 15,504(296,124 tons) (578,229 tons)
Increment Paddy 7,565(282,175 tons)
P = Present.W = Future with Project.
Yield estimates and projections varying according to soil conditions are basedon field surveys in the project area and are considered to be rather conserva-tive. Substantial further increases in yields should be possible dependingon the efficiency of TCCA/KSS management and other supporting services. Thus,following project implementation, total paddy production at full development(year 7) would be about 578,000 tons, or almost double the present productionlevel of 292,000 tons. Indeed, incremental paddy production would amount to282,000 tons. Wheat production would be about 197,000 tons replacing oilseedsand B. aus. It is assumed that no major changes in cropping patterns andyields would occur in the project area without the project, as availabilityof irrigation water is considered to be a prerequisite for any major agricul-tural development in the future. The crop yields and crop input requirementsare detailed in Annex 5 Tables 2 and 3.
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6.03 Projected Command Area Development. The area commanded by the projecttubewells will depend on a variety of technical factors, namely crop waterrequirements, cropping patterns, water output rates and operating hours ofthe tubewells. The major assumptions used in estimating the command area areas follows:
A. Crop Irrigation Requirements. The estimated crop irrigationrequirements of the various crops are shown in Annex 5 Table 4.These have been calculated on the basis of crop consumptiveuse (Annex5 Table 5) and climatic data (Annex 5 Table 6). Cropirrigation requirements depend upon effective rainfall, landpreparation requirements, available soil moisture and fieldapplication and conveyance efficiency. Considering thesefactors the total irrigation requirements for cropping patternI (aus/wheat) is estimated at 16.61 inches; for croppingpattern II (aman/boro) at 36.52 inches; and for croppingpattern III (aman/wheat) at 16 inches.
B. Pumping Requirements. Peak irrigation requirements for borocrop are about 9 inches each for January, March and April,equivalent to about 2 inches per week. Thus the maximum areathat can be irrigated by a two cusec tubewell would be about100 acres requiring pumping of 6 days per week, and 18 hoursper day. With the cultivation of winter wheat requiring onlyabout one third of irrigation water compared to boro a muchlarger area could be irrigated by a DTW. For the estimatedcommand area under the project (80 acres) the utilizationrates for DTW would vary from 645 to 1,473 hours/year,reflecting the different cropping patterns and soil conditionsin the project area.
6.04 In addition to the above-mentioned technical factors, the DTW commandarea would also depend on social and institutional factors. Due to the smallfarm size and the high degree of fragmentation, the average plot in DTW commandareas would range between 0.75 to 1.5 acres. Hence, the full utilization ofDTW would require the cooperation of a large number of farmers. Past expe-rience with DTW irrigation schemes indicates that utilization of DTWs has beenpoor, averaging less than 60 acres per DTW. However, the Irrigation ManagementPilot Program, carried out under the IDA assisted RDI - Project (Cr. 631-BD)has demonstrated that cooperatives can rapidly be motivated to improve theiruse of irrigation equipment. With the help of this program irrigated areasincreased on average from 52 to 94 acres and so did farmer participation andcrop production (see para 2.12). The proposed project would provide funds forthe IMP program to be implemented in all participating TCCA/KSS, so that theaverage command area for a DTW to be financed under this project is estimatedto be 80 acres and participating farmers to number between 60 and 90. Indeed,the optimal use of DTW is one of the major objectives of the project andtherefore, DTWs would be sold only to those KSS which can ensure the develop-ment of at least 80 acres per DTW.
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Marketing
6.05 It is estimated that between 10 and 20% of the incremental paddy andwheat production would be absorbed in household consumption, particularly inthe Madhupur Tract, and as wages paid in kind to the additional hired labor.Thus, about 80-90% of the incremental project output would enter marketchannels. As Bangladesh is far from food self-sufficiency, and populationcontinues to rise at a rapid pace, there is no danger that incremental projectproduction of 282,000 tons of paddy and 192,000 tons of wheat at full develop-ment in year 7 of the project, would remain unsold. The traditional marketingsystem in the project area is well developed. A chain of primary marketsusually exists within two miles of any village where traders purchase all typesof produce. Traders may also purchase at the farmgate. Small lots of produceare then aggregated and resold at larger secondary markets for distributionto processing plants or final markets. Farmer cooperatives have officiallybeen encouraged to market paddy and wheat, but so far their activities haveremained very limited. As the project would strengthen IRDP services, it isexpected that cooperative marketing activities would accelerate in the future.Finally, in addition to the private marketing system, GOB through its FoodMinistry, has been stepping up grain purchases and may now procure about10 to 15% of grain entering commercial markets. Several projects are presentlyunderway to increase procurement centers and storage capacity in the projectarea which will enable Government to further expand its marketing operations.This would provide new market outlets for farmers and help stabilize foodprices in the future. Thus, no serious demand and marketing problems areanticipated and increased grain production would easily be absorbed locallyor find a ready market in major cities.
Prices
6.06 Crop prices in Bangladesh are largely determined by the supply anddemand situation and vary significantly between locations, seasons and fromone year to another. The Government, however, intervenes in foodgrain market-ing through its ration system and procurement-cum-support price policy.Although the procurement system still suffers from various shortcomings, andthe impact of GOB interventions on domestic price fluctuations has remainedlimited so far, it is expected that present Government efforts to constructadditional foodgrain storage facilities, to build up buffer stocks, and totighten up the official procurement machinery, would enable it to intervenemore effectively in domestic markets in the future. As a result, it isassumed that future farmgate prices (in constant terms) for paddy and wheatwould tend to be in line with the current official procurement prices whichare Tk/maund 115 and 124 for aus and aman paddy respectively, and Tk/maund124 for wheat. Fertilizer prices are fixed by GOB and have been highlysubsidized. However, it is Government's intention to reduce these subsidiesand eventually eliminate them completely, as stipulated under several IDA/IFADFertilizer Import Projects (944-BD, 1044-BD, 31-BA) as well as Import Credits.In 1981/82, the average subsidy on fertilizers was reduced to about 21%.Subsidies on pesticides have already been eliminated. For the financialanalysis, prices for inputs, including human and animal labor, are basedon prevailing Government and market prices in the project area.
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VII. FINANCIAL AND ECONOMIC ANALYSIS
Farm Income
7.01 At present, virtually all benefitting farmers have no access toirrigation. Four model irrigation groups, typical of the target groupsmall-holders within the project area, have been examined to assess theimpact of irrigation on farm incomes and cash flows. These models reflectthe social and ecological conditions prevailing in the project area whichcan roughly be subdivided into two different regions; namely the MadhupurTract and the Old Brahmaputra Flood Plains. Within these regions crop pro-duction patterns mainly depend on soil conditions (well or poorly drainedsoils). To assure optimal use of DTWs, all group irrigation models assumethat a minimum of 66 acres of land would be available for irrigation at thevery beginning of DTW operation. Irrigated land is then expected to reachan average of 80 acres four years later.
7.02 The two group irrigation models for the hadhupur Tract indicatethat farm families presently living in this area are obliged to supplementtheir subsistence needs by off-farm work. In fact, from surveys conductedin this area it appears that households with land of 2.5 acres and belowearn about half of their Tk 4,000-4,500 yearly income as laborers and fromvarious other off-farm activities. Farmers in the Old Brahmaputra FloodPlains are better off as they own on average 3.5 acres of land and thus areable to produce more than their subsistence needs. In each case the modelsassume that the project would have no effect on the cropping and the incomewhich farmers derive from their land outside the irrigation area. However,off-farm income of farmers in the Madhupur Tract would tend to decline as morefarm-family labor would be required with irrigation. Group membership wouldvary between 60 and 90 families. To simplify the financial analysis it isassumed that farmers would on average cultivate one acre of land within thecommand area. Based on these assumptions, and those described in the pro-ceeding chapter (cropping patterns, yields and prices, etc.) incremental netincomes, cash flows as well as financial returns were estimated for the fourrepresentative irrigation models as well as the average participating farmfamily (see Annex 6 Tables 1 to 4).
7.03 The following table indicates that the installation of a DTW wouldsubstantially improve farmer's net income and cash flow situation. Theimprovements would vary, however, with the type of soil and location ofholdings in the project area.
38 -
Table 6.3 - Farmers Net Income and Cash Flow
/a lbNet Farm Incomes-/for Cash Flow- for
Average Farmer in Average Farmer inRegion Irrigation Groups Irrigation Groups
(Tk) (Tk)/c Pc
I. Madhupur Tract
(a) Well drainedsoils 4,015 6,015 14 1,639
(b) Poorly drainedsoils 4,533 5,787 157 1,412
II. Old BrahmaputraFlood Plain
(a) Well drainedsoils 4,570 6,456 195 2,080
(b) Poorly drainedsoils 5,658 7,287 1,282 2,912
/a After debt service./b After deduction of estimated value of home-consumption as well as
debt service from net farm income./c At full development in year 4.
P = PresentW = Future with project
Increases in farm income would range from 27% to 50%. The largest relativeincrease would take place in the Madhupur Tract, where because of climaticand topographic constraints mostly single cropping is practiced at present,but potential exists for much more intensive cultivation with irrigation.In fact, while farmers in this area depend to a large extent on theiroff-farm income to provide for their subsistence needs the availability ofirrigation water under the project would enable them to become full farmersin the sense that increased crop production would not only allow them tocover their subsistence needs but also-after deduction of production andirrigation costs as well as debt service-leave a cash surplus, albeit arather small one. Income gains for farmers living in the more favorableOld Brahmaputra Flood Plains would be somewhat less in relative termsmainly because of the relatively high level of development already achievedin this area. In all four cases, the installation of a DThs would result ina substantial improvement in the final cash flow situation of participatingfarm families, in particular for those who had hardly any cash available atthe beginning of the project. In other words, for many farmers the installa-tion of a DTW would be the entrance ticket to modern economy. All projectionshave been based on rather conservative estimates. Indeed, as previously
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mentioned, yields have been projected at below their maximum potential.Moreover, it was assumed that irrigation groups would need about four yearsto increase the irrigated area from 60 acres to 80 acres. Well organizedgroups could not only shorten this gestation period but probably increasethe irrigated area beyond the assumed average acreage of 80 acres.
7.04 The financial viability of the project is illustrated by the highfinancial rates of return to all resources engaged in carrying out the invest-ment ranging from 51% to 70%. However, it must be mentioned here that for thepurpose of the financial rate of return calculations DTW have been costed attheir highly subsidized STW equivalent price (see paras 7.06-7.08). Returnsto KSS/farmer's own capital contribution are even higher and far exceed 100%in all four models. These high rates of return reflect not only the highpotential productivity of the proposed investment, but also the rather limitedcontribution farmers are expected to make to finance the initial investmentoutlays. However, considering the pre-project cash flow situation of mostof these irrigation groups and individual participants, a more than 10%contribution would probably be difficult to achieve. In fact, the cashdownpayment of Tk 14,000 (Tk 175/average farm family) will probably constitutea major sacrifice for most participating KSS/farmers. Thus, the loan financingof 90% of the initial investment costs as well as all incremental operatingcosts is fully justified. Finally, high rates of return reflect the fact thatfarmers would already reap some benefits from a DTW during its first year ofoperation. In fact, DTWs are expected to be installed during the dry seasonso that supplementary irrigation would be available for the following aus andaman cropping seasons. Thus, the additional income earned would partly offsetinitial investment outlays and incremental operating costs during the firstyear of DTW operation.
7.05 After the difficult start-up period, cash flow projections indicatethat with a moratorium on principal for one year, borrowers of all irrigationgroups would have no major difficulties in servicing their loans and complet-ing repayment within 9 years, well within the life period of the investmentestimated as being between 10 and 15 years for engines and pumpsets and beyond20 years for the remaining parts of a DTW. Net incremental cash flows offarmers in irrigation groups would be between 5 to 10 times the annual paymentrequired for servicing the loans received for the purchase of DTWs. In otherwords, irrigation groups/farmers would have to spend between 10% and 20% oftheir residual cash surplus on servicing their annual MT loan repayments.Moreover, it should be noted that the financial analysis assumes constantprice levels for the future. Any inflation in domestic prices would reducethe real cost of repaying the loans for DTWs and would thus make the invest-ment even more attractive to farmers. Concluding, while the uncertaintiessurrounding farm budget projections are fully recognized, the results of thefinancial analysis clearly illustrate the potentially favorable impact theinstallation of a DTW would have on farmers' income. Thus, the incentives tothe future beneficiaries of DTWs are considered to be fully adequate to ensuretheir active participation in the project and their liquidity position suffi-cient to service their debts.
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Cost Recovery
7.06 All minor irrigation equipment was until recently heavily subsidizedlike most other agricultural inputs. To improve the budgetary situation GOBhas adopted a policy to eliminate such subsidies by selling minor irrigationequipment to farmers at full cost in the future. However, because of thevery high cost of DTW, it was generally accepted that the application ofthis new policy would be too great a burden on farmers who depend on DTWsfor their water requirements. Hence, in a joint GOB/IDA review of the minorirrigation sector it was agreed that DTWs should be sold at a price whichwould equate the cost of irrigation water with that from STW. Underlying thispricing principle is the fact that STW are the core of GOB's minor irrigationdevelopment program and are being sold at almost full cost. It was, therefore,recommended that different types of minor irrigation equipment be sold eitherat their full cost or at a price based on their STW equivalent price. This isthe price at which the cost of a given volume of water would be the same asthe STW cost. As the total cost of water (ac/in) produced by a DTW is muchhigher than that by a STW - mainly reflecting the different groundwaterlevels - DTW users would thus pay only the STW equivalent price for their useof water. In other words, on social and equity grounds continued subsidizationof the DTW selling price would put DTW users on an equal footing with the moreadvantaged STW owners. Although this pricing recommendation was accepted,actual selling prices for DTWs have so far been below the STW equivalentprice. In fact, the present official DTW selling price is Tk 85,000, whilethe present STW equivalent price is estimated at about Tk 140,000 (Annex 6,Tables 5-7).
7.07 The financial analysis indicates that KSS group's cash flow situa-tion with the project would be adequate to finance a DTW at its estimatedSTW equivalent price. However, a general consensus exists that it would bedifficult, if not impossible from a sociai and political point of view, tocharge farmers the full STW equivalent price in the immediate future. It is,therefore proposed that the full STW equivalent price be reached after afive-year period in FY1986/87. Application of this recommendation would meanthat farmers' contribution to the financing of DTWs whose total cost isestimated at Tk 400,000 in 1982 prices would increase from about 21% of totalcost in 1982/83 to 35% in 1986/87. To reach this target the DTW sellingprices in real terms would have to be raised by about 15% during each yearof the five-year period (FY1982/83 - Tk 85,000; FY1983/84 - Tk 100,000;FY1984/85 - Tk 110,000; FY1985/86 - Tk 120,000; and FY1986/87 - Tk 140,000).
To these increases future price inflation rates would have to be added. AllO&M costs would be borne by DTW users from the outset. While Government'scontribution to the financing of DTWs would remain substantial at projectcompletion, it must be underlined that the application of the STW equivalentprice policy would be a major improvement compared with practices in thepast, during which DTWs were distributed to farmers as quasi free gifts.Assurances have been obtained that the above recommendations be applied, andactual price increases for DTWs be reviewed annually by Government and IDAalong the guidelines set out in this report.
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7.08 It may appear from the financial analysis that farmers wouldeventually be able to make a greater contribution to the financing of DTWcapital costs than proposed under this project. However, it is felt, atthis stage, that significant increases going beyond the STW equivalent priceshould only be considered when: (a) the technical efficiency and organiza-tional arrangements for the operation of DTW, in particular their ability toprovide an assured and timely water supply, have clearly been demonstrated;and (b) reliable data on the actual benefits accruing to project participantshas been obtained. In fact, given the often poor efficiency of existing DTW,it is difficult to expect that farmers would be willing to make greatercontributions until the benefits of the new DTW technology have clearlybeen established. These uncertainties and lack of experience in selling DTWto KSS farmers also explain why a more gradual increase in DTW selling pricesis advocated under this project. The project would provide funds to closelymonitor its results so that at project completion an informed decision couldbe taken with regard to the future pricing of DTW.
Impact on Government Budget
7.09 The government's share of the project cost, including contingencies,would amount to about Tk 554 M. Out of this amount, some Tk 185 M would berecovered in duties and taxes paid by the project, leaving a net governmentfinancing requirement of Tk 369 N over four years. After project completiongovernment would have to pay for salaries of IRDP incremental staff, as well asoperating and maintenance costs for office equipment and vehicles, estimatedat Tk 2.5 M. however, as the cooperatives become financially viable govern-ment financing would gradually be reduced. Admittedly, the pace of this processis difficult to predict at this stage. At full development the project wouldgenerate additional income of Tk 566 M1, of which 80 to 90% would enter the casheconomy of Bangladesh. Considering the present national tax/GDP relationshipof about 9% it can be assumed that project derived incremental income wouldgenerate about Tk 40 M in additional tax income per year for the government.Although this estimate is admittedly a very approximate one, it indicates thatgovernment's additional tax income might well exceed its financial requirementsafter project completion and thus leave a substantial balance to contribute togovernment's debt payments for the financing of the project. Drilling rigsand auxiliary equipment would be sold to private contractors and part of theconstruction cost of thana facilities would be recovered by a small rent paidby TCCAs for these facilities. In the long run the budgetary impact of DTWProjects would mainly cepend on Government's DTW pricing policy. The proposedSTW equivalent pricing policy for the sale of DTW to be applied under thisproject would go along way to improving GOB's budgetary situation in themedium term future.
7.10 Returns and Costs of Water. As a further measure of the profit-ability of the proposed investment and as a link to the following economicanalysis the returns and costs of water for the four irrigation groupswere calculated in economic prices. The economic value of the water dependson the level of agricultural development and the water supply situation.Based on the estimated cropping patterns, yields, farm inputs and waterrequirements for the four irrigation models considered, the average economic
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return per unit of water (m ) used would range from Tk 2.56 to Tk 0.95 (seeAnnex 6, Table 8). The cost of producing one unit of water taking intoaccount both investment and operating costs is estimated between Tk 0.32 toTk 0.61 for the four irrigation groups considered. Thus, the returns wouldbe between twice and four times as high as the cost of producing a unit ofwater from the DTWs to be installed under the project.
Project Benefits and Justification
7.11 Strengthening and expanding the TCCA/KSS operations in the projectarea would make it possible for small farmers to benefit from productionactivities to which individually they could not aspire. The project, throughthe TCCA/KSS program, would provide smallholders with the necessary technicalknow-how and financial means to diversify their activities and thus enablethem to earn higher incomes. The IMP program under the project would helpremove obstacles - often of a social nature - to a fuller utilization of theirrigation infrastructure. Overall, the installation of a DTW would not onlyincrease farmers' income, but more importantly also act as a catalyst forsmallholders to organize themselves into cooperatives, which in the long runwould enable them to reap benefits which would probably go far beyond thosecalculated for this project.
7.12 Production. At full development, in 1989, successful projectimplementation would lead to incremental annual production of about 282,000tons of paddy and 197,000 of wheat, which would make an important contributiontowards the endeavors of GOB to attain food self-sufficiency. Based on pro-jected world market prices the extra grain produced would represent a grossforeign exchange value of about US$95 million a year. Allowing for increasedforeign exchange expenditures (US$23 million) on fertilizers, pesticides, aswell as fuel, spares and replacements for DTWs the net annual foreign exchangesavings due to the project would be about US$72 million.
7.13 Employment. Increases in employment opportunities due to the projectwould be substantial. The more intensive land use under the project wouldcreate additional labor requirements of about 27 million man/days for farmingoperations at full development. Most of the additional employment opportuni-ties would benefit under-employed farm family members, in particular during thedry season when agricultural employment is low. About 40% (10.8 M man days)of the additional farm labor requirements would be for hired labor, mostlylandless laborers who would thus also benefit from the project. Moreover,additional permanent labor would be required to operate DTIVs, not to mentionsecondary employment generated by activities such as marketing of produce,transportation, processing and other services resulting from increased agri-cultural production and DTW operations. Admittedly, it is difficult to makereliable estimates of these secondary employment opportunities but it iscertain that project's impact on employment would go far beyond the abovementioned estimates of incremental farm labor requirements. Overall, the mainimpact of the project on the employment situation and prospects in the projectarea would be to provide more year-round activities for presently under-employed people; permanent new employment positions would be limited,estimated at between 4,000 to 5,000.
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7.14 Beneficiaries. Assuming that membership in DTW irrigation groupswould vary between 60 and 90 families, about 300,000 farm families woulddirectly benefit from the project. The profile of project beneficiarieswould to a large extent reflect prevailing land ownership patterns in theproject area. However, BIDS evaluation survey of the Northwest TubeweilProject showed that the surveyed DTW groups contain a higher proportion ofsmall farms than the overall farm size distribution in the Rajshashi Division.Based on this and the use of the TCCA/KSS system to channel irrigation equip-ment, knowhow and credit to the farmers, it is expected that the project wouldbe of major benefit to small farmers. It is estimated that at present about30% of project's beneficiaries, mainly those living in the Madhupur Tract,would live at the poverty line. From the farm budgets it can be concludedthat the small farmer who receives irrigation through the project wouldincrease his annual income varying from Tk 1200 to Tk 2050 per acre irrigated,representing an increase of between 27% and 50% (see para 7.03). As notedearlier, projections have been based on rather conservative assumptionsconcerning yields and phasing of project benefits. hiuch of this increasedincome would derive from more productively employing farm family members.While these income gains in absolute terms appear modest (US$62 to 103 perfamily) experiences made in other parts of the subcontinent have shown thatthe installation of minor irrigation facilities and the setting up ot coop-eratives can transform presently poverty stricken people into an active andrelatively prosperous community. The project should therefore be consideredto be only the starting point of this transformation.
7.15 Economic Analysis and Sensitivity Tests. The economic analysis hasbeen carried out for the project as a whole. Summary economic costs andbenefits are presented in Annex 7, Table 4. The following main assumptionswere made in the analysis:
(a) Benefits: Project benefits would be derived mainly fromadditional cropped paddy and wheat areas during the dryseason. In addition assured water supply during the wetseason would make larger and more effective application orhigh yielding varieties, fertilizers and pesticides moreattractive to farmers.
(b) Prices: Traded commodities have been valued at the averageof Bank forecasts for 1982-1990 and adjusted tor treight,handling, processing and quality difterences as appropriate(Annex 7, Tables 1 and 2). Non-traded goods and serviceshave been adjusted by a standard conversion tactor (0.83).The exchange rate is taken at a constant Tk 19.5 = US$1.
(c) Investment Costs. After deducting price contingencies, indirecttaxes and subsidies the economic analysis includes all finan-cial investment costs, except those for drilling rigs andauxiliary equipment. These items would be procured underthe project primarily to improve the general drilling capacityin the country and their use wouli not be restricted to projectactivity. Drilling equipment costs are included as deprecia-tion allowances in the estimatec installation costs of a DTi.
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Construction of the water distribution system is consideredto be an annual cost because of the temporary nature of thechannels, most of which will have to be reconstructed eachyear. Non-traded investment costs were adjusted by a standardconversion factor of 0.83.
(d) Production Costs: The analysis also includes all incrementalfarm production costs as well as irrigation operating, recon-struction and maintenance costs. The financial cost ofunskilled labor, Tk 15 per man/day has been adjusted - inaddition to the SCF of 0.83 - by a factor of 0.68 to reflectits real value because of present and foreseeable un- andunder-employment in the project area.
(e) Institutional Support Cost: Full costs of the institutionalsupport components (BADC, IRDP and consultants) have beenincluded. however, at project completion consultancy andBADC services would be discontinued as they would mainlybe required to supervise the installation of 4000 DTWs underthe project. Only IRDP services and IMP training for TCCA/KSSwould continue after project completion.
(f) The period of analysis is 21 years.
Based on these assumptions, the best estimate for the IRk is 30.4% and for theNPV (at the opportunity cost of capital at 12%) Tk 2,878 M. Sensitivity testsindicate that the project is mildly sensitive with respect to most variables.Returns are highly sensitive to changes in command area, yields and outputprices than changes in costs underlining again the importance of efficientsupporting services (IRDP) for successful project implementation. however,even for a combination of possible adverse circumstances, the project maintainsan economic rate of return well above the opportunity cost of capital.
Table 7.1
Switching Values /a
1. All investment costs + 4782. All production costs + 1213. All costs + 524. Total Benefits; Command Area,
yields and/or output prices - 34
/a Percentage changes in variables which would make the netpresent value of the project, evaluated at the opportunitycost of capital, equal to zero.
The favorable rate of return is essentially a result of the highly productiveand well proven technical package proposed to farmers under this project;namely irrigation water and modern farm inputs. Moreover, this combinationhas the additional advantage of having a short gestation period, yieldingbenefits within one year of the investment.
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Project Risks
7.16 The high rate of return would provide a reasonable cushion againstpossible project risks which are considered to be rather limited. A possiblerisk would be the under-utilization of tubewells. In the past low runninghours and small areas irrigated by DTWs were caused mainly by inadequatesupport services, lack of credit and social factors. A further risk wouldbe that the project might overextend the implementation capacity of agenciesconcerned. Should this occur targets would not be met and thus benefitswould be less than projected. Overall, the main risks of the project wouldprimarily be related to institutional weaknesses and lack of coordinationamong the various government institutions involved in project implementation.The project has, however, the advantage of drawing on lessons learned duringthe implementation of the first DTW project (Credit 341-BD) and other ongoingprojects in the minor irrigation field. This, together with provisions madeunder the project to (a) strengthen IRDP and BADC services, (b) to imposestrict selection criteria for DTW installation, (c) to provide adequate MTcredit for TCCA/KSS, (d) to recruit a consultant team and lastly, (e) toregularly monitor project performance, should help minimize these organiza-tional and institutional risks. Overall, considering the urgency of GOB toexploit its rich groundwater resources in order to feed its ever-increasingpopulation, and the high potential benefits associated with minor irrigationinvestments, the risks described above are considered acceptable.
VIII. RECOMviMENDATIONS AND ASSURANCES
8.01 The following major assurances were obtained:
(a) Task force would be appointed and proposals for the regulationof water development would be submitted for IDA approval notlater than December 31, 1983 (para 2.10);
(b) Adequate MT credit would be provided to farmers to purchaseexisting DTW (para 2.11);
(c) Annual rental charges would be increased in real terms fromthe present rate of Tk 3,400 in FY1982/83 to Tk 5,000 inFY1983/84, Tk 7,500 in lY1984/85 and Tk 10,000 in FY1985/86(para 2.11);
(d) At least 60%O of the DTW rentals would be collected by June 30,1982/83 and at least 75/a by June 30, 1983/84 and thereafter(para 2.11);
(e) All spare parts for DTW rented by BADC would be sold at fullcost, including taxes and duties (para 2.11);
(f) The Irrigation Hanagement Program would be implementedin the project area (para 2.12);
(g) Measures would be taken to strengthen and restructure IKDPnot later than December 31, 1982 (para 2.23);
(h) Aaequate arrangements would be macie LO provice M1T creditto drilling contractors (para -. U);
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(i) Detailed plans for t;.e well testing program would besubmitted for IDA review by June 30, 1983 and ExecutiveEngineer in charge of the Scheme would be appointed byDecember 31, 1982 (para 4.10);
(j) Detailed plans for project evaluation would be submittedfor IDA review by March 31, 1983 (para 4.17);
(k) Auditors acceptable to IDA would audit the projectaccounts and statements of expenditures where applicable.Audited accounts together with auditor's comments wouldbe sent to IDA within six months after the close of eachfiscal year (para 4.32);
(1) The Registrat of Cooperatives, by March 31, 1983 wouldprepare an inventory of TCCA/KSS in the project areashowing the date of last audit for each and prepare aphased plan for bringing the audit up-to-date by June 30,1985. It would submit a quarterly report on progress ofthe audit program (para 4.32);
(m) Criteria for DTW group and site selection and proceduresfor loan application would be adhered to (paras 5.06 and5.07); and
(n) DTW selling price would reach the full STW equivalentprice in 1986/87. Actual annual selling price increasesfor DTW would be reviewed annually by GOB ana IDA followingagreed guidelines (para 7.07).
8.02 Conditions of credit effectiveness would be chat:
(a) BADC's key project staff had been appointed (para 4.U6);
(b) The key staff for IRDP headquarters, District officesand TCCA/KSS in the project area had duly been appointed(para 4.11);
(c) A Subsidiary Loan Agreement between GOB and BangladeshBank (BB) with regard to refinancing requirenients of SonaliBank (SB); and a Participation Agreement between BangladeshBank and Sonali Bank, both satisfactory to IDA, had beenexecuted; and the Project Proforma (PP), and AnnualDevelopment Program (ADP) for year 1, satisfactory toIDA, had been approved by GOB (paras 4.21 and 4.22);
(d) The Project Coordinating Committee and District ProjectExective Committees had been established (para 5.04);
(e) The co-financing agreements between ODA and GOB, andADAB and GOB had been signed.
8.03 With the above assurances and conditions the project is suitablefor an IDA credit for US$68 M.
47Schedule APage 1
BANGLADESh
SECOND DEEP TUBEWELL PROJECT
Agricultural MT Credit - Lending Terms and Conditions
1. GOB to BB
(a) annual interest rate of 3% for BB refinancing SB;
(b) repayment period up to 12 years inclusive up to twoyears grace period; and
(c) foreign exchange risk to be borne by BB; and
(d) refinancing up to 100% BB refinance.
2. BB to SB
(a) interest rate to be not less than 4% for onlendingthrough TCCA/KSS;
(b) installment repayment to coincide approximately Witt
agreed collections from ultimate borrowers; and
(c) refinancing up to 90% of individual loans.
3. SB to TCCA
(a) interest rate to be not less than 6-1/2%;
(b) installment repayment to coincide approximately withagreed collections from ultimate borrowers; and
(c) refinancing up to 100% of individual loans.
4. TCCA to KSS
(a) interest rate to be not less than 10-1/2% per annum; and
(b) allocation for bad debt reserve to be not less than 2%.
48 Schedule A
Page 2
5. KSS to Ultimate Borrowers
(a) interest rate to be not less than 14% per annum;
(b) borrowers' contribution 10% plus obligatory purchaseof KSS shares;
(c) repayment periods to be based on the ultimate borrowers'repayment capacity but generally not to exceed nine yearsinclusive of grace period of up to one year.
6. General
(a) security to be in accordance with arrangements betweenSB and BB;
(b) BB shall:
(i) cease lending, to be refinanced out of the proceeds ofthe credit to SB in respect of any TCCA, whenever loanrecovery over the proceeding 12-month period falls below65% of demand.
(ii) cause SB to implement a loan recovery program satisfactoryto BB and IDA, in any project area TCCA for which loanrecovery drops below 75% of demand.
(c) possibilities for a future increase in loan recovery percentageswould be discussed and agreed upon between GOB and IDA.
For the purpose of the above conditions "demand" means principaland interest falling due over the preceeding 12-month period inquestion plus overdues from previous years.
-49 - ANNEX IPage 1
BANGLADESH
DEEP TUBEWELL (II) PROJECT
Groundwater Resources and Development
Introduction
1. This annex contains a review of the hydrogeology of Bangladesh asa whole, on the basis of which the project area was delineated (IBRD (Map16189). It also discusses past groundwater development on a country widebasis but with a definite focus on the project area. Finally, in the futuredevelopment section, the development proposed under this project is dis-cussed.
2. In terms of geological structure, Bangladesh is located in a sub-siding basin and it contains the confluences of some of the largest riversin the world. Consequently, the basin has been filled up with fluviatilesediments often of the sand and gravel grading, thus forming a huge aquifercomplex. Because of prolific monsoon rainfall, the complex is filled up withwater to near the ground surface.
3. The quality of the aquifer and the groundwater it contains isusually very good. Hence, water supplies have been obtained from thissource, originally for drinking purposes and then for irrigation, by avariety of different structures, ranging from large diameter open wells toturbine pumped deep tubewells. In recent years, tubewells have become one ofthe major sources of irrigation water; further large scale tubewell develop-ments are planned.
Previous and On-Going Studies
4. Systematic groundwater studies were started in Bangladesh in the1960s. Originally most of the work was of a generalized appraisal nature(Peterson 1964, FAO 1966, McDonald 1969) or specifically oriented towardsdomestic supplies for urban centres (James M.M. Inc. 1965, Parsons Corp.1966, Camp, Dresser & McKee 1967).
5. The major local participant in these early groundwater surveys wasEPWAPDA (East Pakistan Water and Power Development Authority), who startedappraisal work in 1964. They issued their first report in the same year anda fuller report describing the results of their investigations in 1968. Allthis work as highly general and, for development projects, useful only asbackground material. EPWAPDA's successor, BWDB, has continued this generalwork and has issued a number of publications both of countrywide and regionalscale (1970, 1972, 1974, 1979 and 1980).
- 50 - ANNEX 1Page 2
6. In 1971-72 IBRD carried out studies and published their first majorwork on land and water resource development in Bangladesh. 1/ An evaluationof water resources (including groundwater), water requirements and con-straints to development were included.
7. The major technical work undertaken since 1972, has been done bySir M. MacDonald and Partners (MMP), consulting engineers, on behalf of BADCand BWDB, mainly in connection with the recently completed deep tubewellproject in the northwest of Bangladesh. This BADC/IDA project included theconstruction of 3,000 irrigation wells and an extensive program of analysisof geological, hydrochemical, water level and test pumping data. The sub-sequent report published in 1977 contains a comprehensive review of thehydrogeology of the north west region.
8. Additional reports by MMP, essentially dealing with the sameregion, covered aquifer conditions and tubewell depths, shallow tubewelldevelopment, screen materials, tubewell electrification, command improvementand overall development potential. (MMP 1978 a, 1978 b, 1979 and 1980).The development potential estimate was based on a digital modelling exercise,which has now been superceded by a more sophisticaed model.
9. In 1978, UNDP in conjunction with BWDB started a countrywide surveyof the groundwater conditions of Bangladesh. They have now issued their mainreport (draft) which provides a very useful base level data compilation, onwhich future groundwater development planning should be based. In additionthey produced a number of regional reports including those dealing with NorthMymensingh, Madhupur and Comilla areas and propose to cover all the remainingregions of Bangladesh. Unfortunately, these regional reports add little tothe country-wide compilation (in fact some are definitely inferior).
10. It has emerged very clearly from all this work that almost thewhole of Bangladesh is suitable for the installation of high capacitytubewell; the only exceptions can be easily identified on the basis of sur-face geology and morphology. The major unknowns constraining groundwaterdevelopment in Bangladesh were identified as aquifer recharge and safe yield.Two studies have recently been initiated, which are of relevance to thisproblem: the digital groundwater modelling study of the northwest undertakenby MMP for BADC/IDA and a water balance study of North Bangladesh also beingdone by MMP but for BWDB/UNDP. Both studies would be completed in 1982.
11. The modelling study of the northwest is intended primarly to quan-tify the various groundwater balance components, including recharge and
1/ Bangladesh Land and Water Resources Sector Study Report No. PS-13,December 1, 1972.
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Page 3
potential recharge, more accurately than has been done before, by matchingthe model output with the observed behaviour of the groundwater system. Themodel utilizes data derived from tte first BADC/IDA DTW project and onceproperly calibrated against present conditions and historical data, will beused to predict the aquifers behaviour under anv proposed groundwaterabstraction regime.
12. The water balance study aims at accurately quantifying the totalwater resources (including groundwater) of North Bangladesh. It utilizes apackage of computer programs, includng a grondwater model. The treatment ofthe groundwater component of this water balance will necessarily be cruderand less accurate than in the northwest model as the data base is very nuchinferior.
OCCURRENCE OF GROUNDWATER
Geological Setting
13. Bangladesh is located in or adjacent to the Himalayan foredeep, asubsiding region in front of the mountain belt, which stretches right acrossthe Indian subcontinent to Pakistan in the west. The great rivers debouchingfrom the Himalaywas, once they enter the subsiding foredeep, are divertedalong it, either to the southwest as the Indus system or to the east as theGanges and Brahmaputra systems.
14. tiost of the country is covered by Quaternary alluvium, with onlysmall Tertiary inliers found in sylhet and Comilla districts, and biggerTertiary outcrops occuring in the Chittagong region. No outcrops ofpre-Tertiary strata are found in Bangladesh at all. Evidence of olderstratigraphy and structure has been obtained from oil, gas and coal explora-tion drilling and from aerial geophysical surveys.
15. The region is underlain by Precambrian Basement complex whosesurface dips generally southwards. This Archean surface is very irregular,probably due to block faulting. It has been recorded at 450 feet in Dinajpurdistrict, at 9,000 ft at Pabna and is expected to lie at over 4,000 feet inSylhet.
16. A discontininuous sequence of Palaeoz-oic and Mesozoic strataoverlie the Basement. They are mainly of continental and volcanic facies,though marine shales and sandstone have been identified as well. The erraticoccurrence of these strata reflect the long term tectonic instability of theregion, associated with the Tethys geosyncline and the Alpine/HimalayanOrogeny.
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17. The Alpine tectonisms have continued into the Tertiary times, aswitnessed by the discontinous stratigraphic record (Table 1). The formatiornare mainly marine sands, silts, clays, and subordinae limestones, becomingincreasingly consolidated with stratigraphic age. The top member of theTertiary succession, the Dupi Tila formation, consists mainly of fluviatilesands and forms a valuable squifer where it occurs near the land surface.
18. Resting uncomfortably on the Tertiary sequence is the Quarternaryalluvial complex. It is usually divided into older and younger alluvia. Theformer includes the Barind and Madhupur tracts and the underlying fine andmedium sands (sometimes pebbly). The latter is mainly sandy with clay andsilt layers, except at the coast where the sands pass into fine graineddeltaic and swamp deposits. The whole quaternary succession is affected byfaulting showing that the tectonic instability has continued into recenttimes.
i9. The Quarternary alluvial complex is the main aquifer of Bangladesh.It is normaly at least several hundred feet thick, contains numerous highlypermeable sands and gravels and, away from the coast, is saturated with goodquality groundwater.
Geomorphology
20. Most of Bangladesh is a flat featureless plane surrounded by lowhills. The north-western and western natural boundaries are the RajmahalHills of India, formed by Jurassic plateau basalts; the northern boundary,the Shillong Plateau is composed of basement complex rocks overlain byarenaceous and carbonate Eocene strata; the eastern margins are the Sylhet,Tripura and Chittagong Hills which are folded Tertiary marine sediments.
21. Although the land is mainly of low relief and practically feature-less, three distinct geomorphological units can be recognized: (a) Thepiedmont plains; (b) the recent flood plains and alluvial interfluves; and(c) Older, Pleistocene alluvial terraces, probably brought up to the surfaceby faulting.
22. The piedmont occur in narrow strips adjacent to the Himalayan andBurmese highlands in the northwest, north and southwest of Bangladesh. Theyconsist mainly of well drained sandy and silty soils.
23. The recent flood plains and interstream alluvial areas occupy thebulk of the country, excluding the swampy coastal zone. They consist ofactive flood plains and older scars, levees and terraces, mainly of sandy andsilty materials, with more clayey basins. The whole area, particularly thebasins are subject to flooding during the monsoon.
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24. The Pleistocene terraces (the Barind and Madhupur tracts) occur atsomewhat higher elevations than surrounding alluvium. They are mainly ofclayey deposits and are thought to have been up-faulted into the presentpositions. Being higher than the surrounding country they are less prone toflooding but may be partly submerged at the height of the monsoon.
Aquifer Geometry
25. The principal exploitable aquifers of Bangladesh are sand andgravel layers found within 600 feet of the ground surface in the alluvialareas. Normally, the near-surface strata tend to be clayey or a mixture ofclay, silt and sand, but are underlain by beds of clean coarse elasticmaterial such as sand and gravel. According to UNDP (1981) the succession ofinterest from the point of view of groundwater abstraction, can be rational-ized into four broad units as follows: (a) Upper clay/silt/fine sand layer;(b) Main aquifer; mainly medium to coarse sand with some gravel; (c) Lowerclays; (d) Deep aquifer; mainly fine to medium sand, sometimes pebbly.
26. The uppermost unit is highly variable in composition and thickness,which may vary from 0 to more than 100 feet. It frequently contains bedsof fine sands, some of which are exploited by shallow wells. The clays ofthis unit are of the non-swelling type and therefore have a reasonably highinfiltration and permeability even when wet.
29. The lower aquifer tends to be somewhat finer than the upper and itsthickness is unknown but it may be very great. It contains clay and siltlayers. Its real distribution is poorly known but it has been identifiedboth in the north and in the Dacca area; it may occur under most of thealluvial areas of Bangladesh.
30. The great majority of groundwater exploited in Bangladesh is pumpedfrom the main aquifer, except where this is missing as on the Barind andMadhupur tracts where the surface outcrop is of the lower clays. The loweraquifer is also exploited in the Dacca urban area.
31. The depth to exploitable aquifer, that is the thickness of upperclay and silt has been mapped for most of Bangladesh and is shown in map 2.Sucn topmost layers tend to be thick in the old Pleistocene terrace areas,but other areas of thick surface clay exist as well, particularly in Dacca,Comilla, Jessore and Faridpur districts.
32. Sharp lateral boundaries are sure to exist because of the commonoccurrence of faulting within the alluvial comlex. However, on the evidenceof pump test data the faults seldom act as hydraulic barrier boundaries; itwould appear that within the aquifer system, most commonly the faultingmerely brings different sets of sandy beds into juxtaposition.
54 AN\NEX 1Page 6
33. The whole of the alluvial complex is saturated with groundwater,usually to within a few feet of ground surface. Individual aquifers withinthat complex are often confined or semi-confined with the piezometric surfacemore or less coincident with the water table, indicating that the phreaticzone is hydraulically connected with the exploitable groundwater.
34. The characteristic pattern of natural water level fluctuation is alowest position at the end of the dry season, a rise to the ground surfacewithin the first one or two months of the monsoon and a decline following theend of the rains. The low position of the water level, which is one of thecritical parameters in well design, has been plotted for the whole ofBangladesh and is shown on Map 3.
Aquifer Properties
35. Little data on the grading of the aquifer material is availableexcept for the northwest region. In the project area the median grainsize(D50) range seems to be from 0.2 to 0.8 mm, with uniformity coefficientsusually between 1.5 and 2.5. There is some evidence that, as expected, theformations generally become finer southwards. Thus, in the project area theformations of the Mymensignh and Kishorgang districts can be expected to besomewhat coarse than those of Dacca.
36. Much data exists on the transmission properties of the aquifers, inthe form of step-drawdown tests, which are carried out as a matter ofroutine, on newly constructed tubewells. Unfortunately, few of these havebeen analyzed. The available results of aquifer trasmissivity and lateralpermeability are listed in Table 2. No clear regional pattern emerges. Mostof the permeability results fall within the credibly narrow range of 0.001 to0.002 ft/sec.
37. The storage parameter of the aquifer complex is poorly known.Analysis of pump test results gives values of about 103 which merely indi-cates that at relatively rapid pressure declines, the aquifer behaves in aconfined or semi-confined manner. The usual range of storage coefficientsfor this kind of alluvium is 5 to 15 percent. Calculatons done by MMP on thebasis of groundwater level recession curves gave a wider range of I to 22%;in the northwest, the calibration of the aquifer model generated a generalstorage coefficient value of 12 percent.
Groundwater Quality
38. From the point of view of irrigation, groundwater quality in
Bangladesh is generally good to excellent, except in the coastal zone, wherethe influence of recent marine conditions is still evident. In the projectarea the E.C. (electrolytic conductivity) of groundwater is mainly within the
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range 150 to 750 micromhos/cm; moreover no toxic levels of any individualions have been identified.
39. Irrigation water quality problems have been reported in Comilla,including boron toxicity. Since toxic levels of boron in groundwater areextremely rare, the Comilla problems need checking by sampling and analysis;in fact the hydrochemistry of the area is due for a review.
40. In general, the groundwaters of Bangladesh have a reducing ratherthan oxidising tendency. PH values are commonly less than 7 and redox poten-tials (Eh) are usually negative. Hence corrosion of the metallic (par-ticularly mild steel) well components can be expected to be a problem.However, the performance of existing wells suggest that cases of severe andrapid corrosion are rare.
Groundwater Movement
41. Water level data indicate low regional gradients and correspond-ingly low lateral groundwater movement. The exception to this are areasadjacent to the rivers where the surface water-groundwater interaction may besignificant and steep groundwater gradients can be locally set up by thefalls and rises of the river level.
42. On the regional scale, the main components of the groundwaterbalance are vertical. The main inflows to the aquifer complex are infiltra-tion of rainfall and floods; the main outflows are evaporation and evapotran-spiration.
Recharge and Safe Yield
43. Groundwater recharge conditions are favorable all over Bangladesh.As a result of the prolific monsoon rainfall much of the country is floodedfor several months infiltration rates are generally high and, although manyof the aquifers are to some extent confined by clayey and silty strata, suchconfining beds have relatively high vertical permeability. In most areas theaquifer complex fills up to ground surface and rejects recharge during thelate part of the monsoon season.
44. To evaluate the safe yield of any part of Bangladesh, a concept ofpotential recharge is used; this can be defined as the amount of water whichwould reach the groundwater reservoir if there was room for it. UNDP (1981)computed potential recharge in various parts of the country from meteorologi-cal records as shown in Table 3.
45. In the project area, the preparation report estimates potential
recharge, on the basis of similar calculations, as about 17 inches per yearin the Madhupur tract and as between 18 and 36 inches per year on the flood
- 56 -ANNEX IPage 8
plain of the old Brahmaputra. The modelling studies being currently under-taken by MMP should refine these estimates but no final model output is yetavailable. Consequently for the time being a general conservative figureof 18 inches per annum is adopted. This is equivalent to about 4 millionacre feet.
PAST GROUNDWATER DEVELOPMENT
Introducton
46. Manually powered groundwater abstractions in Bangladesh were prob-ably first developed thousands of years ago. Some mechanically pumpedtubewells go back to the early years of this century, but wide spread use ofdeep and shallow tubewells for irrigation started in the 1960s. Currentlythere are reported to be about 11,500 DTWs and 24,000 STWs in an operationalstate in the country.
47. The first major effort to exploit groundwater for irrigation wasmade between 1961 and 1966 with the installation of 380 DTWs by EPWAPDA inthe northwest. Since then his particular aspect of groundwater developmenthas been taken over by BADC, who has constructed almost 13,000 DTWs as shownin Table 4.
Existing Abstractions
48. The current total groundwater abstraction in Bangladesh isestimated to be about 4 million acre feet. Most of this abstraction is forirrigation, but significant amounts are also pumped for urban water supply.In areal terms the abstraction is mainly in the range of 3 to 6 inches,except in the immediate vicinity of Dacca where it is much higher.
49. The abstractions are usually well within safe yield limits and nopermanent water level decline has been recorded anywhere, except at DaccaCity, where the ever increasing municipal demand has resulted in groundwaterpumpage of about 70,000 acre feet per year. Since 1967 the groundwaterlevels in Dacca have fallen by about 5 to 10 feet and the decline continuesat an annual rate of about 1 ft.
Deep Tubewell Design and Characteristics
50. The early EPWAPDA tubewells were designed for discharges of between3 and 5 cusecs. Since then it has been established that such discharges aretoo large for farmers' groups to utilize efficiently and a BADC standard DTWis designed for an output of 2 cusecs. DTWs yielding less would beeconomicaly less advantageous.
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51. Most of the BADC DTWs have been of almost identical design:
Drilling method reverse circulation rotary
Drilled diameter 20-22 inchesdepth about 300 feet
Upper well casing GRP or mild steel;dia. 14 incheslength 70-90 feet
Lower well casing GRP or mild steeldia. 6-8 incheslength 90-110 feet
The major departures from this standard have been some wells in Serajganj,
which have been equipped with stainless steel wirewound screens of variablelength, and wells equipped with electric motors where electric power isconveniently available.
52. The pumps are normally shaft-driven vertical turbines of the mixedflow type. Several makes are represented, the most common being probablyJohnston and KSB. The diesel engines are mainly air cooled of between 20 and
30 BHP (brake horse power) with Ruston, MWM, Lister and Deutz being the mostcommon makes.
53. At 2 cusecs production rates, the specific drawdowns of most of thewells are within the range of 5 to 20 feet per cusec. Analysis of thestep-drawdown tests shows that total well drawdown Sw can normally beexpressed by an equation of the type
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Page 10
2Sw = AQ + BQ
where Q = discharge rate
and A and B are constants.
In feet-second units this equation can be approximated by
Sw = 1.22 q + 1.5 Q2T
where T = transmissivity
54. Reportedly no major problems of well deterioration have beenexperienced, except in the case of old wells (more than 15 years). In fact,instances of well failure of any kind are remarkably low. Part of the reasonfor this has probably been the low utilization factors of the wells in thepast.
Operation and Maintenance
55. Most of the deep tubewells have a BADC trained operator employed bythe irrigation group; he is usually one of the local farmers. Among hisduties is keeping of a logbook with records of pump operation, dieseldelivery, etc. For the great majority, if not all wells, this duty isneglected.
56. Routine maintenance and repairs have been the responsibility of thelocal thana office of BADC. Under the present policy of privatization, thesetasks will be handed over to private enterprise in the future. BADC will,however, maintain stocks of spare parts and supply these to selected privateworkshops on demand.
FUTURE DEVELOPMENT
Selection of Development Area
57. In delineating an area for deep tubewell irrigation, the followingfactors should be considered:
(a) Demand for groundwater irrigation among the farmersof the area.
(b) The farmers' ability to operate an installed facilityreasonably efficiently and economically.
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Page l1
(c) Potential interference of the proposed developmentswith existing facilities.
(d) '-lie farmers' ability to pay such rental or purchasecharges and operating costs as would be involved.
(e) Aquifer conditions such as transmission and storagewater levels and groundwater quality.
(f) The potential of the aquifer system to be exploitedto support the proposed development on safe yieldbasis (or any other acceptable basis stipulated).
(g) Suitability of the area for deep tubewell development,or rather its unsuitability for any cheaper form ofdevelopment.
(h) Data base with respect to design of a viable develop-ment project.
(i) Overlap with other ongoing or planned developmentprojects.
(j) Relation of the project area boundary and those ofthe administrative regions from the point of viewof facilitating cooperation with the local admin-istration.
(k) Economic and financial viability of the proposedproject.
58. The project area has been selected according to these criteria andcomprises 35 th-anas in total, including 10 thanas of Mymensingh, 11 thanasof Kishorgaj and 14 thanas of Dacca district (Table 5). The gross area isabut 2,568,100 acres of which some 1,874,100 acres (or 73%) is classed ascultivable land.
Development Potential
59. The proposed development of 4,000 DTWs would abstract groundwaterat a rate of about 1 million acre-feet. This would make the total abstrac-tions in the project area still only about half of the estimated potentialrecharge.
60. Because of the weakness of the data base, more intensive abstrac-tions are not recommended at present. The digital model of the groundwater
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reservoir, to be constructed as a part of the project, should help accurately
to quantify accurately the maximum safe yield of the aquifer in the project
area, provided that it is constructed on the basis of sound data and is
properly calibrated.
61. The problem of well spacing or rather the minimum permissibledistance between adjacent wells has received much attention in the past.
This is not now considered important and in the future the establishedcriterion of spacing greater than 2,500 feet should be relaxed. Particular
cases of groundwater demand should be considered entirely on their own
economic merit, provided that the safe yield of the aquifer as a whole is not
exceeded. In cases where it is proposed to install two of more DTW closetogether (say less than 1,000 feet apart), it is recommended that their
probable mutual interference is evaluated and these effects taken into
account at the design stage.
Well Design
62. The objective of sound well design is to produce the required
quantity of water, of acceptable quality, over a specified period of time, at
the lowest possible cost. This objective is best achieved, or at leastapproached, by adopting generally accepted hydraulic concepts, sometimes
modified in the light of local experience.
63. Fixed well components currently being used for deep tubewels in
Bangladesh appear satisfactory. These are mild steel 14" dia. upper well
casng (locally made), 6" dia. galvanized (GI grade) lower well casing and 6"
dia. GRP slotted screen. The lengths and disposition of the various com-
ponents used may not be optimum but should be accepted until better criteriacan be evolved on the basis of analysis of past records and of the earlytubewells of this project.
64. The design of gravel pack grading and screen slot size should besuch as to ensure reasonable well efficiency and long-term production of sand
free discharge. Though little formation grain size data are available, on
present evidence, different slot sizes and gravel filters appear appropriatefor the north (Mymensingh and Kishorganj) and the South (Dacca) of the
These criteria should be reviewed periodically in the light of availableformation grain size data.
65. There is some evidence that in part of the project area the forma-tion contains an appreciable gravel fraction. In such cases, naturallydeveloped wells (without a gravel pack), equipped with stainless steelwire-wound screens may be considerably more efficient than the standarddesign. Provision is made t include 10% of such wells in this project.
66. Well development at present is by overpumping with back-washingusing a turbine test pump. Development is taken as completed when the dis-charge becomes clear and sand-free. This is satisfactory for gravel packedwells but natural development should be with a powerful compressor and maytake longer. Project funds have been allocated for the procurement of twosuch compressors (200 psi, 6,0 cfm).
67. The connections between lengths of steel casing and screen shouldbe either welded or of the threaded type. Where two different metals areused such as mild and stainless steel, couplings with insulators should beused to minimize electrolytic corrosion. Connections of the spigot andgroove type, normally used for GRP screen, are considered satisfactory.
Screen and Casing Requirements
68. The quantities of screen and casing to be procured under theproject were calculated on the basis of and the designs discussed above.
69. Shaft driven vertical turbine pumps with operational speeds of1,500 rpm, standard for existing BADC DTWs are considered satisfactory. Thepreparation report estimates the required numbers of pumps of various duties(all of 2 cusecs discharge rates) on the basis of the UNDP report (1981) withrespect to static water level and specific drawdown:
Pump category 1 2 3 4 5
Lowest rate WL* (ft) 15 20 20 35 35Lowest normal working WL (ft) 30 40 50 60 70Pump mounting above GL** (ft) 2 2 2 2 2Static head (ft) 32 52 52 62 72Number of pumps 1,650 700 350 700 400*WL - water level**GL - ground level
The required number of pumps of various categories should be reviewed in thelight of the pre-project analysis of the characteristics of existing wells.
70. These pumps would be powered by diesel engines mounted on rigidconcrete foundations. The engine horsepower requirements for various pumpcategories, assuming overall pump efficiency of 60%, were computed as follos:
For simplicity this should be nationalized into two or three types such as 21and 30 BHP or 15, 25 and 30 BHP. The exact numers of each kind requiredshould be decided on the basis of the pre-project review of the performanceof existing wells.
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71. In selecting diesel engine type and make two other major factorsshould be considered:
(a) Standardization of new engines with those alreadyin operation in Bangladesh, for ease of maintenanceand repairs.
(b) Willingness of the supplier to set up engine recondi-tioning (particularly crankshaft regrinding) facili-ties in Bangladesh.
In this context, it is relevant to list the number of diesel engines of thetype that are or can be used for powering deep tubewell pumps already inBangladesh (Table 6).
72. In addition to the diesel/turbine pumpsets, it is proposed toprovide and install 400 electrical submersible pumpsets for use in DTWs in anarea (or areas) where electric power can be made available. The exact dutiesof these would be specified at the inception/planning stage of the project.
Diesel Fuel
73. Petroleum products are imported to Bangladesh by the PetroleumCorporation. Diesel oil is refined either abroad or at the refinery inChittagong. For agricultural use, diesel and lubricants are retailed by BADCat Tk 24.5 and Tk 93.5 per imperial gallon, respectively, which is slightlylower than the prices of other supplies.
74. At the end of the project, the estimated quantity of diesel likelyto be required in the peak irrigation month for all the old and newly ins-taled pumping facilitiesis estimated at about 2.5 million gallons. ExistingBADC storage facilities in the project area are for about 700,000 gallons,mainly in 25,000 and 50,0000 gallon tanks, usually at thana headquarters.
75. It is likely that with the projected increase in operationaltubewells, additional diesel storage would be required. It is, however, GOBpolicy not to increase BADC's facilities further, but to encourage privateenterprise to undertake petroleum product storage, distribution and retail-ing. It is understood that credit is available for this purpose.
Electrification
76. The electricity grid system in Bangladesh is divided into two areascovering the western and eastern sides of the Brahmaputra. An interconnec-tor, under construction to unify the two systems would be completed in 1982.The project availability of electric power in the future is shown in Table 7.
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It shows that before the completion of the interconnector, power shortagesmay occur, but from 1983 on, a surplus generating capacity should be avail-able.
77. The electricity distribution network in rural Bangladesh is
extremely limited. In the project area, there are 230 kV transmission linesto the east and west of Dacca and a 132 kV line passing northward through the
area via Mymensingh towards Jamalpur. Electrification of the projecttubewells would be based on offtakes from this line.
78. Detailed plans for the proposed electrification of 400 deeptubewells would be made in the early stages of the project. It is envisagedthat one or two well fields would be electrified and that the project wouldfinance the distribution downstream of 132 KV line that is 132/33 KV and33/11 KV substations, 33 KV, 11 KV and LV transmission lines, pole trans-formers, various isolators and connectors and individual well connections.
Implementation Capacity
79. Under the MTFPP and the second five year plan, the GOB schedulefor deep tubewell installation for the period 1980-1985 is:
18,000 DTWs to be installed.17,000 DTWs to be commissioned.
So far some 1,250 DTWs have been constructed in the 1980-1981 dry season.
80. All the DTWs are to be installed by local drilling contractors.Since contractors cannot import foreign made equipment without payingprohibitative duties, BADC does all the importing and then sells the equip-ment to contractors. The state of drilling machinery in Bangladesh is asfollows:
(a) Already in the country and in workingorder (owned by contractors) 37 drilling rigs
(b) Already procured by BADC and expectedto be sold to contractors by end-February 1982 25 drilling rigs
(c) Being procured by BADC; expected to besold to contractors by end-February 1982 18 drilling rigs
(d) To be procured by the project; should besold to contractors by the end of 1982 25 drilling rigs
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81. It is estimated that each rig can install between 30 and 60 DTWsper dry season. Thus, the yearly capacity of the Bangladesh drillingindustry should be approximately:
82. The actual rates of construction attained will also depend on theavailability of imported auxiliary equipment. The lack of such equipment isa serious constraint at present. Therefore, the project would finance theprocurement of the following:
For the drilling rigs to be financed by the project
For the drilling rigs procured by BADC and those aleady with contractors
90 tractors and trailers45 generators (6 kw)60 are welding sets23 compressors (100 psi 300 cfm)30 test pump sets
This equipment is generally used at rig sites during well construction,except for the two large compressors (200 psi, 600 cfm) which are specifi-cally intended for the development of the proposed 400 naturally developedwells.
83. The availability of skilled drilling personnel could also be a
constraint to well installation rates. However, it is the unanimous opinionof all groundwater agencies and the contractors that a sufficient pool ofskilled drillers exists in Bangladesh to make efficient use of the proposedinflux of new drilling and auxiliary machinery.
84. In addition to the contractors equipped with heavy machinery, thereare some 80 firms specializing in the manual jetting well installation tech-nique with an estimated capacity to construct about 1,200 tubewells per year.They are mainly involved in shallow tubewell construction and reservations
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Page 18
have been expressed about this as a method to be used for DTW installation.A thorough evaluation of this subject is required and should be done at thebeginning of the project.
85. Apart from strengthening the contractors capabilities by supplyingthem with imported equipment, the project would also strengthen BADC'scapacity to supervise the contractors' work by providing them with supportingfacilities such as transport and office accommodations and the followingextra staff:
(a) One Superintending Engineer with supporting staff inDacca; he would be in overall charge of the project;
(b) Three Executive Engineers to be stationed in Mymensingh,Kirshorgang and Dacca; they would overses the projectactivities in the regions;
(c) Nine Assistant Engineers, three of which would comeunder each Executive Engineer; and
(d) 50 sectional officers who would provide fieldsupervision of tubewell installation.
BbNGLADESH
DEEP TUBEWELL PROJECT II
Cainozoic Geology of Bangladesh
Age Formation or Group Lithology Hydrogeological Significance
Recent to sub-recent Alluvium Coast- swamp and deltaic deposits; Piedmont Aituvial sands form highly productive- silt, sand and gravel; Alluvium - flood an;.--rzplain Pnd inter-stream clay, silt sands andgravel.' Variable thickness, but can beover 3,000 ft.
Pleistocene Dihing (Madhupur and Mainly clay with sand and pebbles, exposed Sands are productive. Clay formsBarind Clav) on the Barind and Madhupur Tract, usually substantial aquiclude/aquitard
described as 'old alluvium'. Up to 150 ftthicl'
U N C O N F O R M I T Y_
Late Miocene to Dupi Tila Unconsolidated fluviatile sands, 60-900 ft Good aquifer potentia , but onlyPliocene thick accessible by deep drilling except
in Sylhet
Ul N C 0 N F 0 R M I T Y
Middle Miocene Tipam (U. Miocene Geosynclinal facies is mudstone (ailtstone/ All aouicludes or aquitardscpartshelf facies) sandstone (3,200 ft) over Tipam sandstone from Tipam Sandq?t^n. -h!ch forms
XEarly Miocene Surma (Geosynclinal (4,000 it) over Baka Bil (6,000 ft) and Bubil a low permeability sufer.facies) (13,000 ft) which is shale/mudstonelsiltstone.
sandstone sequence. Miocene shelf facies(Surat) is condensed version of same (1,350 ft)
U N C O N F O R MITY _ _
Oligocene Barail Geosynclinal facies is Jenam formation, carbona- Aquicludeoceous shale, siltatone, sandstone (over 2,000 ft).Shelf facies is shale of the Bogra fnrmation(535 ftW
Late Eocene Kopili - carbonaceous shale with sandstone and Aquicludelimestone including coal(SOO ft +)
Middle Eocene Jaintia Sylhet limestone - fossiliferous limestone and Poor aquife- with highly mineralizedminor sandstone, Not always present. water
Palaeocene- Jaintia Tura sandstone (790 ft) - sequence includes Sandstone are poor aq;lifers with highlyEarly Focene coal, shale and sandstone mineralised water. -
U N C O N F O R M I T YC r e t a c e o u s a n d E a r I i e r
Source, Report of the Bangladesh Deep Tubewells Project - Preparation MissionFAO/CP Report No. 37/8/BGD 27 dated 6 October 1981.
District Gross Area Net Cultivable Area Area Irrigated by
and Thana Acres Acres P. DTW, STW and LLP(Acres) (°7 of CA)
MYMENSTNGH
Nandail 80,600 66,800 82.9 4,300 6.4
Iswarganj 68,800 55,500 80.7 1,400 2.5
Phulpur 164,500 138,500 84.2 10,500 7.6
Halaughat 105,600 81,700 77.4 15,000 18.4
Ghaffargaon 98,600 84,500 81.2 15,900 18.8
Trishal 62,100 50,400 81.2 5,400 10.7
Muktagacha 77,400 59,600 77.0 6,900 11'6
Kotwali 93,400 78,400 83.9 3,400 4.3
Bhaluka 109,400 54,100 49.5 8,500 15.7
Phulbaria 104,300 70,300 67.4 13.100 18.6
Sub-Total 964,700 739,800 76.7 84,400 11.4
KISH(ORGANJ
Kishorganj 44,200 27,300 61.8 3,800 13.9
Terail 35,200 28,300 80.4 2,900 10.2
Karimgonj 49,200 42,000 85.4 5,000 11.9
Hossainpur 29,400 25,100 85.4 4,000 15.9
Pakundia 44,200 32,200 72.9 4,000 12.4
Katiadi 55,000 39,300 71.5 5,100 13.0
Bajitpur 46,800 39,000 83.3 13,300 34.1
Purbadhala 85,800 46,600 54.3 14,900 32.0
Atpara 47,400 25,200 53.2 5,100 20.2
Kendua 82,600 69,800 84.5 5,200 7.4
Netrakona 77,400 51.000 65.9 7,800 15.3
Sub-Total 597,200 425,800 71.3 71,100 16.7
DACCA
Savar 85,100 58,200 68.4 27,500 47.3
Kaliakor 77,400 45,300 58.5 23,500 51.9
Joydepuir 89,000 57,100 64.2 22,800 39.9
Sreepur 114,600 73,300 64.0 5,600 7.6
Kapasia 89,000 57,300 64.4 5,400 9.4
Raligonj 70,400 46,900 66.6 13,300 28.4
Manikgonj 48,600 34,900 71.8 7,700 22.1
Singair 53,800 43,100 80.1 4,000 9.3
Dhiamrai 74,900 49,600 79.6 22,500 37.8
Sat-uria 39,700 28,900 72.8 3,100 10.7
Narsingdi 52,500 40,100 76.4 15,900 39.7
Shibpur 55,700 42,000 75.4 11,000 26.2
Monohardi 61,400 47,600 77.5 13,400 28.2
Raipur 94,100 74.200 78.9 13.600 1R.'
Sub-Total 1,006,ZOO /08,500 70.4 189,1O0 26.7 - -
TOTAL 2,568,100 1,874,100 73.0 344,800 18.4
BANGLADESH
DEEP TUBEWELL PROJECT II
Deep Tubewell Engines Imported to Bangladesh Upto Mid-1981
Manufacturer Engine Model Engine Type Application Ntumber Imported to Bangladesh Remarks
Ruston-Hornsby 2 YWA Air cooled - fly LLP & DTW 15,550 These models no longer manufactured3 YWA Wheel blower DTW 6,500 in United Kingdom, but still made in India,
Deutz F 2L712 Air cooled - LLP & DTW 3,300 Engine reconditioning facilities being metF 2L812 belt driven LLP & DTW 4,960 up in Bangladesh. May soon start a localF 2L912 fan LLP & DTW 7,737 assembling plant
MWM D 327-2 Air cooled-belt DTW 2,273D 327-3 driven fan DTW 827
Lister HR-2 Air cooled-fly DTW 1,174 Lister granted COB approval to start localHR-3 wheel blower DTW 528 manufacture
Russian Water cooled DTW 200
Yanmar 2 TLE Water cooled DT1W 101 Engine reconditioning facilities being set upin Bangladesh.
1/ See Annex 2, Table 1.2/ For experimental construction of naturally developed vells.
3/ At 20% of engine costs.4/ Including gear head.5/ At 10% of pump costs.6/ For standby reuuirements in case of malor breakdowns.7/ Price increase in foreign costs: Year I - 8%; Year 2-4 = 7.5%. Price increasein local costs: Year 1 15%; Year 2 13%; Year 3 11%; Year 4 = 10%.
ANNEX 2Table 3
BANGLADESH
DEEP TUBEWELLS II PROJECT
Cost Estimate - Purchase of DTW Components by ODA(Tk '000)
TotalUnit.!' Year I Year 2 Year 3 Year 4 Foreign X Of
Items Cost Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost Exchange F-..
A. Well Components100 ft Lower Well Casings 19,950 1,300 25,935 1,400 27,930 1,300 25,935 4,000 79,800 79,800 100
1/ Based on information provided by the "Overseas Development Administration"(ODA - Great Britain).2/ At 20% of engine cost.3/ At 10% of pumpset and gear cost.41 For standby requirements in case of major breakdowns.5/ 1983/84 - 9%; 1984/85 - 8%; 1985/86 - 8%.
ANNEX 2Table 4
BANGLADESH
DEEP TUBEWELLS II PROJECT
Cost Estimate - Installation of 4,000 DTW1
!(Tk '000)
TotalYear 1 Year .2 Year 3 Year 4 Foreign %
IJnit Cost Unit Cost Unit Cost Unit Coat Unit Cost Exchange F.E,
Grand Total 147,608 294,540 297,906 267,965 1.008,019 251,598 25
1/ Based on information received by BADC. Prices have been adjusted for expected domestic and international inflation to project unit costs to mid-1982.2/ Estimated at 6.5% of F.E, of imported materials. See Annex 2, Table 5.3/ See Annex 2, Table 5.4/ Estimated at 7.5% of all costs.5/ Estimated at 15% of F.E. of imported materials.6/ Price increase in foreign costs: Year I = 8%; Year 2-4 - 7.5%.
Price increase in local costs: Year 1 = 15%; Year 2 = 13%; Year 3 = 11%; Year 4 = 10%.
BANGLADESH
DEEP TUBEWELLS PROJECT II
Unit Cost of Different Tyvpes of TW!(Tk)
Cost Standard Diesel Standard Electric Stainless Steel ScreenItem Unit Local Cost Foreign Ex. Total Cost Engine Well Motor Well Diesel Engine Well
Quantity P.E. Total Quantity F.E. Total Quantity P.E. Total
A. Materials
Diesel Engine- Lump Sum - 78,400.00 78.400.00 1 78,400.00 78,400.00 1 78,400.00 78,400.00Gear Head, Et 2 . Lump Sum - 13,000.00 13,000.00 1 13,000.00 13,000.00 1 13,000.00 13,000.00Turbine Pump- Lump Sum 22,400.00 24,100.00 46.500.00 1 24,100.00 46,500.00 1 24,100.00 46,500.00
Electric Submers.YPump Motor Lump Sum - 67,300.00 67,300.00 - 1 67,300.00 67,300.00
Discharge Pipe Lump Sum - 9,700.00 9,700.00 - 1 9,700.00 9,700.00Switchgear, etc. Lump Sum - 20,500.00 20.500.00 - 1 20,500.00 20,500.00
Electric PowerTransmission per well Lump Sum 100,000.00 150,000.00 250,000.00 - 1 150,000.00 250,000.00
D. BADC SupervisionD usts 7.5% of all costs (A + B + C + E) Sub-total 4,700.00 27,400.00 Sub-total 7,800.00 45,300.00 Sub-total 4,700.00 27,200.00
E. Taxes and Duties 15% of F.E. of Materials (A) Sub-total - 26,700.00 Sub-total - 46,500.00 Sub-total - 28,200.00 m
TOTAL 224,000.00 393,000.00 TOTAL 362,900.00 648,900.00 TOTAL 234,400.00 390,000.00
-/Based on October 1981 prices provided by manufacturers and BADC and adjusted for expected domestic and international inflation to project unit costs to mid-1982 (figures are rounded).
-/ Imported Engine
-/Assuming imported partially manufactured parts with machining and assembly done locally.
-/ Assuming mild steel locally produced from imported sheet.
-/ Based on BADC tender documents. Foreign exchange component estimated by mission.
BANGLADESH
DEEP TUBEWELLS PROJECT II
Operation and Maintenance Costs for DTW (Diesel Powered)(Tk)
Madhupur Tract Madhupur Tract Old Brahmaputra Old BrahmaputraWell Drained Soils Poorly Drained Soils Flood Plain - Poorly Flood Plain - Well
C. Operating and Maintenance Costsper Acre 406 818 818 394
1/ See Annex 5, Table 42/ Seasonal Lump Sum3/ Assume 20 hp engine consuming 0.05 gallons/hp hour. Estimated farm-gate price is Tk 26/imperial gallon.4/ Assume oil consumption at 0.75% of fuel consumption. Farm-gate price estimated at Tk 110/imperial gallon.5/ Taken as 5% of the capital cost of pump and engine(including taxes and duties) per 1000 running hours.6/ Channels are generally reconstructed each year. Estimated at 130 days work at Tk/15/day for 80 acres.7/ Seasonal salary of two part-time ditch riders. Mission estimate.
BANGLADESH
DEEP TUBEWELLS PROJECT II
Operating and Maintenance Costs for DTW (Electrically Powered)(Tk)
Madhupur Tract Madhupur Tract Old Brahmaputra Old BrahmaputraWell Drained Soils Poorly Drained Soils Flood Plain - Poorly Flood Plain - Well
C. Operation and Mainteniance Costsper acre 272 485 485 266
1/ See Annex 5, Table 42/ Seasonal Lump Sum3/ Assumed 50ft total lift,overall pump and motor efficiency 65X. Price of electricity taken as Tk 0.5/Kwhr for the first 250 units and
Tk 1.25 per Kwhr for the rest.4/ Taken as 2.5X of the capital cost of the pumpset per 1000 running hours plus 1l of the electricity distribution system per year
(including taxes and duties).
5/ See Annex 2, Table 3
BANGLADESH
DEEP TUBEWELLS PROJECT II
Cost of Drilling Rigs and Auxiliary Equipment-/
(Tk '000')
UnitJ/ Year 1 Year 2 Year 3 Year 4 TotalItems Cost Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost Foreign Exch. 2 F.E.
A. New Drilling Rigs 3.120 25 78,000 25 78,000 62,400 80
I/Based on October 1981 prices provided by manufacturers and BADC and adjusted for expected domestic and international inflation to project unit costs to mid-1982.2/Includes 15Z of import taxes and duties. m x3/ 1) Price increase on foreign costs: year 1 - 8%; year 2 - 7.52
2) Price Increase on local costs: year I - 15%; Year 2 - 13%: year 3 - 11%; year 4 - 10%.
BANGLADESH
DEEP TUBEWELLS PROJECT II
Cost Eatimatel' - BADC Proiect Implerentatinn Unit I-XI
('ftC' ~~~~~~Foreigr.Categories Unit t us; Year 1 Year 2 Year 3 Year 4 Cost ExchangX F.E,
GRAND TOTAL 1,454,849 584,246 648,160 709,918 3,397,173 941,792 28
1/ Based on October 1981 prices provided by BADC and adjusted for expected domestic and international inflation to project unit costs to tid-1982.2/ Salaries have been set at the mid-point of the salary scale. Allowances for rent and medical aid have been taken at the maximum for each category. 'U
Travel allowance has been estimated at Tk 900.
3/ Vehicles have been costed at c.i.f Chittagong plus 42 port handling charges, 452 import duties and 202 sales tax.4/ Office furniture and equipment including deskt (14), chairs (13), typewriters (3), 1 duplicating machine 3 electric print calculators and 10 pocket
calculators and a lump sum of Tk 33,000 for miscellaneous items.
5/ Operating cost of vehicles: Landrover (Diesel) 15,000 miles/year at Tk/26 gallon * Repairs and maintenance Tk 15,000/year.Car (Fuel) 16,000 miles/year at Tk/50 gallon. Repairs and maintenanice Tk 12,000/year.
6/ Operating costs as a lump sum of Tk 44,6
00/year.7/ 1. Price increase on foreign costs: year 1 - 82 year 2 to 4 - 7.52
2. Price increase on local Zosts: year I - 15%; year 2 - 13%; year 3 - 117; year 4 - 10%.
Grand Total 20,884,992 2,065,735 2X,29,172 1,.407889 26.627.788 18.492,269 69
1/ Based on information obtained by ODA and BADC. Prices were adjusted for expected domestic and international inflation to project unit costs to mid-1982.
2/ To be used in long duration pumping tests.
3/ Vehicles have been coated at c.i.f. Chittagong plus 4% handling charges, 452 import duties and 202 sales tax.
4/ Mainly audio-visual equipment.5/ Price increase in foreign costs: Year I - 9%; Year 2-4 - 8%; (ODA).
Price incresse in local costs: Year 1 - 15%; Year 2 - 13%; Year 3 - 11%; Year 4 - 10%.
ANNEX 2
Table 12BANGLADESH
DEEP TUBEWELLS II PROJECT
Consulting Services - Personnel and Other Operating Cost 1/(Tk)
Total
Year 1 Year 2 Year 3 Year 4 ForeignItems Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost Exchange % of F.E,
D. TrainingRental of Training Center 56,000 56,000 56,000 56,000 56,000 224,000Allowance for Students 90,000 90,000 90,000 90,000 90,000 360,000Running Expenses 22,400 22,400 22,400 22,400 22,400 89,600
Grand Total 14,858.472 16.382,581 17,597,561 20,411,373 69,249,987 65,697,847 95
1/ Based on information received by ODA and BADC. Prices have been adjusted for expected domestic and international inflation to project unit costs to mid-1982.2/ ODA estimates average cost of man/month for consultancy services at b 5,000. Final cost estimate will be made after bids have beeni received from British consaulting firms.3/ Operating costs for jeeps have been estimated at 15,000 miles/year at Tk26/gallon of diesel oil. Repairs and maintenance are assumed at Tkl6,000/year.4/ Lump sum.5/ Price increase on local costs: Year 1 15%; Year 2 - 13%; Year 3 = 11%; Year 4 - 10%.
Price increase on foreign costs (consulting services): Year 2 = 9%; Year 3 - 10%; Year 4 - 10%.
ANNEx 2Table 13
BANGLADESH
DEEP TUBEWELLS 11 PROJECT
Cost Estimate - IRDP Capital Coats 1/(Tk)
Total
Year I Year 2 Year 3 Year 4 Foreign % of
Items Unit Cost Unit Cost Unit CoSt Unit Cost Unit Cost Unit Cost Exchange F.E.
Grand Total 27.816.516 38 144 602 17.108.554 83 06967 28.405.257 34
1/ Based on October 1981 prices provided by IRDP and adjusted for expected domestic and international inflation to project unit costs to mid-1982.2/ Office building consists of seven rooms, one store and two bathrooms (2,500 sq. ft.).3/ Residential quarters consist of twin quarters to accommodate eight officers.4/ For Deputy Director (headquarters) and Deputy Project Directors at District level.5/ For Deputy Project Officer at Thana level. Motorcycles will remain property of IRDP.6/ For Tnspectors and other grass-rout level IRDP staff. Bicycles will be sold to staff.7/ For headquarters and district offices.8/ 1) Price increase on foreign costs: year I = 8E; years 2-4 = 7.57.
2) Price increase on local costs: vear I = 157; year 2 = 137.; year 3 = 11%; year 4 = 10%.
Grand Total 198454l 2,626.973 2.924.696 3.209280 10.745.490 Z.126i,1 20
1/Based on October 1981 prices provided by IRDP and adjusted for expected domestic and international inflation to project unit costs to mid-1982.
2/Training will be provided for District and Thana level IRDP staff as well as KSs personnel/DTW managers, model farmers, etc.
3/Operating costs for vehicles have been estimated at 15,000 miles/year at Tk 26/gallon diesel oil. Repairs and maintenance are assumed at Tk 16,000/year.
4/Running and maintenance costs are estimated at Tk 8,800/year.5/ 1) Price increase on froeign costs: year 1 - 8%; years 2 to 4 - 7.5%. Irr
2) Price increase on local costs: year 1 - 15%; year 2 - 13%; year 3 - 11%; year 4 - 10%.
ANNEX 2
88 Appendix 1
BANGLADESH
DEEP TUBEWELLS II PROJECT
Technical Assistance
Technical Assistance
I. The executing agencies for the Project will be BADC/IRDP withsupport from the Extension Service of the Ministry of Agriculture. It isintended that the project be supported by a consultant team covering themain disciplines involved. They will be required to:
(a) provide professional advice tor overall project implementation;
(b) undertake a program of training, including on the job training,for both project staff and the cooperative farmer movement;
(c) assist in carrying out a number of project related studies;
(d) advise and assist in the adaptation and development of existingmonitoring and record keeping procedures for the project.
2. The executing agencies will provide counterpart staff to work inclose collaboration with the consultants. These counterparts will be drawnfrom the project implementation staff.
3. To upgrade BADC's capability to undertake groundwater studiesand monitoring, the project will finance the procurement and operation ofspecialized equipment, including conductivity meters, water level indicators,sieve sets, portable chemical laboratories, electric loggers, water samplersand surveying sets. In addition, it will fund investigatory work such asexploratory drilling, piesometer construction and test well pumping.
Outline Terms of Reference for the Project Consultants
4. Preliminary Phase
(a) Review previous reports and other publications pertaining to thegeology, hydrology, hydrogeology, groundwater development andirrigation in the project area.
(b) With the assistance of the counterpart statf, collect, analyze,collate and compile all available information from existing deeptubewell irrigation schemes previously constructed in the projectarea.
89 ANNEX 2
Appendix 1
5. Construction Phase
(a) Assist and advise the executing agencies in the implementationof the project including:
(i) Site selection
(ii) Drilling and installation of wells
(iii) Installation and commissioning of pump sets
(iv) Layout and construction of irrigation systems
(v) Operation and Maintenance Systems (e.g. PlannedPreventative Maintenance)
(vi) Cooperative Water Users Organization
(vii) Irrigated agricultural development
(b) Continue formal and field training in all the above areas.
(c) Advise and assist with data collection and with the analysis,collation and compilation of such data.
(d) Make recommendations on further groundwater development in theproject area.
(e) Assist BADC.in the preparation of interim progress reports andthe final report on the completion of the project.
6. Studies and Pilot Projects
(a) Analyze, collate and compile all data collected. The study area,which will be precisely defined, will include parts of Comillaand Sylhet districts as well as the project area.
(b) Review all reports, publications and data pertaining to thegeology, hydrogeology and groundwater development of the Comillaand Sylhet districts.
(c) Organize field inventory of drilled wells in the study area.
(d) Plan and supervise a study campaign including drilling, geophysicallogging, well testing and sample analysis.
(e) Make an assessment of the groundwater development potential forirrigation of the study areas.
90 ANNEX 2Appendix 1
(f) Evaluate the probable costs of groundwater development.
(g) Prepare a final report on the studies and make recommendationson further investigations and/or development.
(h) Advise and assist on the requirements for, location of andsupervision of the more specialized testing procedures, suchas geophysical logging and long duration pumping tests andanalyze the results.
(i) Assist with the implementation of the various pilot projectsand evaluate the significance of the results.
(j) In the light of (c), (d) and (e) above, advise on themodifications of BADC's standard designs.
(k) Prepare a finite difference or finite element digital modelof the aquifer system of the project area.
(1) Calibrate the model using historical abstraction and monitoringnetwork results.
(m) Use the model for long term predictions of water level behaviorin response to various abstraction regimes.
7. Discipline Requirements
(a) Groundwater Engineering
It is assumed that the Project Leader will be a highly experiencedCivil/Groundwater Engineer who can cover both this aspect and themanagement of the consultancy team. He will be responsible tothe executing agencies for carrying out the activities specifiedfor the consultants under the agreed terms of reference. Inparticular he will be responsible for:
(i) overall professional support and advice to the executingagencies on the implementation of the project;
(ii) coordination and supervision of the activities ot theexpatriate staff;
(iii) liaison with the executing agencies;
(iv) the technical content and timely submission ol theConsultants' reports;
(v) advice and assistance with the planning and supervisionof implementation of the pilot projects;
ANNEX 2Appendix 1
(vi) formulation recommendations on modifications of BADC'sstandard designs in the light of incoming well constructionresults;
(vii) coordination of the training program for the project, inconsultation with staff in other disciplines.
(b) Irrigation Engineering
Advice and assistance:
(i) with the refinement of criteria for site selection, trainingof BADC section officers in site selection, and monitoringthe application of the criteria;
(ii) with a review of the presently prevalent designs of thedeep tubewell irrigation systems;
(iii) with a review of the present practices of the on-farmwater management and recommendations for its improvement;
(iv) with selection and design of the improved tubewell commandareas (including lining of channels);
(v) with counterpart staff training in all aspects of irrigationengineering.
(c) Hydrogeology
Advice and assistance:
(i) with a review of previous work relevant to the hydrogeologyof the project area and the study areas;
(ii) with the direction and supervision of the analysis, collectionand compilation of previous drilling and well testing results;
(iii) with the planning and implementation of the monitoring program,designed to provide data on well performance and for thecalibration of the G.W. model.
(iv) with the direction and supervision of the analysis andprocessing of the well construction data as these becomeavailable.
(v) with the planning and supervision of the field investigationsin the study areas, including well inventories and sampling,drilling and testing programs.
ANNEX 292 Appendix 1
(vi) with analysis and synthesis of all results obtained fromthe study areas.
(vii) with recommendations on the development potential of thestudy areas.
(viii) with counterpart staff training in all aspects of hydrogeology.
(d) Field Engineering
General assistance and support as may be required for the hydro-geology and irrigation engineering components of the project.In particular advice and assistance:
(i) with the implementation of the pilot projects and thesampling, drilling and testing procedures in the study areas;
(ii) with the program of data collection;
(iii) as necessary with the training program.
(e) Electrical and Mechanical Engineering (only one consultant isenvisaged)
Advice and assistance:
(i) with the assistance of the diesel driven pump sets;
(ii) with the establishment in the project area of the appropriatemaintenance programs and procedures.
(iii) any problems that may arise with the arrangements fordeveloping the private sector capacity for maintenanceand repair;
(iv) with the aspects of electrification relevant to the project;
(v) with the supervision of the borehole drilling program;
(vi) with counterpart training in all these aspects;
(vii) with a program of training for pump operators and maintenancemechanics (in association with the cooperative developmentprogram).
(f) Hydrology
(i) Review of meteorological and hydrological data availablefor the study area.
(ii) Preparation of a suitable package of computer programs tosimulate the groundwater system of the study area.
ANNEX 2Appendix 1
93
(iii) Advising the resident project team on the data requirementsof the model.
(iv) Setting up and preliminary calibration of the model, mainlyto identify gaps in the available data base.
(v) Recommendations on the upgrading of the data base.
(vi) Final calibration of the model.
(vii) Predictive runs to examine the future effects of ongoingdevelopment and to quantify further development potential.
(viii) Calibration and prediction runs should be carried out afterthe assessment of the data obtained during the first andsecond years drilling program, and the model should produceoutputs by the end of the project's third year;
(ix) Training of BADC counterpart staff in all aspects ofgroundwater modelling.
(h) Irrigation and Agronomy and Extension
Within the existing Ministry of Agriculture Extension constructionand in association with the ongoing Irrigation Management Programadvice and assistance;
(i) with all aspects of on-farm water management
(ii) with liaison within the project group for the agriculturalaspects
(iii) with a program of farmer training
(iv) with the agricultural aspects of the pilot projects
(v) counterpart training in irrigation agronomy.
(j) Cooperative Development
Within the existing IRDP structure, advice and assistance:
(i) with organization of water users associations
(ii) with relevant structures and procedures for inputs,credit and marketing for the crops
(iii) with liaison within the project group for the coope-ativedevelopment aspects
(iv) with a program of training for officials in the coops.
94 ANNEX 2Appendix 2
BANGLADESH
DEEP TUBEWELL (II) PROJECT
Import of Diesel Fuel for Irrigation
1. As part of the proposed Credit, IDA will make available US$ 10 millionin foreign exchange for the import of high-speed diesel (HSD) for use in irriga-tion. At present prices, this would cover the import of approximately 29,000metric tons of HSD, equivalent to 28% of total projected HSD requirements in theirrigation sector during FY83. Table 1 shows the estimated total demand for HSDin the Bangladesh economy and in the agriculture (i.e., irrigation) sectoritself for the years from FY80 through FY85.
2. It is estimated that the total HSD requirements during FY83 for allminor irrigation equipment fielded under IDA-supported irrigation projects 1/
Table 1: TOTAL AND AGRICULTURAL HSD DEMAND IN BANGLADESH (FY80-FY85)(in '000 long tons)
/a The sharply reduced HSD use and the additional consumption of supe-rior kerosene oil (SKO) in agriculture in FY81 are explained by thesignificant price differential favoring SKO use during that year.
Source: Bangladesh Petroleum Corporation.
1/ Deep tubewells under Credits 341-BD and 631-BD, shallow tubewells underCredits 631-BD, 724-BD, 1071-BD and 1147-BD, and low-lift pumps underCredits 340-BD, 542-BD, 605-BD, 631-BD, 900-BD and 990-BD.
ANNEX 295 Appendix 2
would approximate some 8.9 million gallons (i.e., almost 29'000 metric tons)with an import cost of about US$ 9.9 million at present prices (USs 345 permetric ton, c&f Chittagong). Table 2 shows details concerning irrigation equip-ment expected to be operating during the FY83 irrigation season -- both under!DA-supported projects and under a2l irrigation schemes.
3. Bangladesh's balance of payments and overall financial prospects forFY83 and the next few years are very precarious, mainly as a consequence ofsevere terms-of-trade losses and declining real aid inflows. Import require-ments, particularly for petroleum products, have risen sharply in nominal terms,and the country has had to borrow extensively on commercial terms to financeits crucial import needs for petroleum and petroleum products ir both FY81 andFY82. Outstanding commercial debts incurred on this account amount to roughlyUS$ 100 million at the end of FY82 and will need to be either repaid or rolledover in early FY83, and the possibilities for additional comnnercial borrowingsto finance petroleum imports in FY83 are virtually nil. As anticipated exportearnings, workers' remittances and aid inflows during FY83 will fall short ofeven rminimally comfortable import financing requirements, the economy will befaced with severe reductions in real levels of imports this year, which in turnwill affect the rate of economic activity in most sectors of the economy.
4. The agriculture sector alone ho ds any promise of substantial realgrowth in FY83 -- but this will depend as much on the assured availability ofdiesel fuel for irrigation equipment as on the weather. It will be crucial,therefore. that the requirements for HSD in the irrigation sector be fully metand that the HSD supply situation be comfortable as Bangladesh heads into theFY83 irrigation season. In view of the very tight outlook for overall balanceof payments financing, it is very likely that petroleumn imports would have to becurtailed along with imports of virtually all other commodities -- since thereis already very little slack (represented by non-essential consumer goods) inthe country's commodity import list -- unless specifically earmarked foreignexchange resources can be made available for this purpose. Without an assuredsupply of HSD, agricultural production -- primarily of foodgrains -- during theFY83 dry season would be subject to major rlsks and likely to fall again farshort of the country's potential. Moreover, uncertainties in dieselavailability would have a significant detrimental impact on farmer demand foradditional irrigation equipment being made available, including DTWs to beprovided under the proposed project.
5. Accordingly, and to ensure that irrigation facilities fielded underIDA-supported projects will not be idled during the crucial FY83 irrigationseason for lack of diesel fuel, the Credit would provide the foreign exchangeneeded to finance the entire import requirements for diesel fuel for all minorirrigation equipment expected to be in operation under any of IDA's irrigationprojects during FY83.
6. The fuel would be imported by Bangladesh Petroleum Corporation (BPC)under arrangements satisfactory to IDA. Procurement is likely to be in the formof long-term purchase contracts with favorable pricing and/or price discount
ANNEX 2
96 Appendix 2
Table 2: IRRIGATION EQUIPMENT AND DIESEL REQUIREMENTS, FY83 (Projected)
HSD Use per Unit /a(gallons/season) 660 120 300 165
Total HSD Requirements('000 gallons/season) 2,112 2,436 1,200 1,964 8,930
B. Country Totals
Total Units /b 13,500 105,000 42,000 (160,500)
Total HSD Requirements /a('000 gallons/season) 8,910 12,600 10,500 32 010
/a Such estimates may vary widely, depending on the assumptions made concerningthe number of operating hours per unit per season. Fuel use is estimated toaverage 0.05 gallons per horse power per hour. Average engine size is about22 hp per DTW, 6 hp per STW, 12 hp per 2-cusec LLP and 6 hp per 1-cusec LLP.With an estimated average operating time of 600 hours per season, for example,diesel consumption would be 550 gallons per DTW, 150 gallons per STW, 300gallons per 2-cusec LLP and 150 gallons per 1-cusec LLP. With an estimatedaverage operating time of 800 hours per season, on the other hand, dieselconsumption would amount to 880 gallons per DTW, 240 gallons per STW, 480gallons per 2-cusec LLP and 240 gallons per 1-cusec LLP. The estimates shownin the table above reflect estimated operating times per season of 600 hoursper DTW, 400 hours per STW, 500 hours per 2-cusec LLP and 600 hours per 1-cusecLLP.
/b Excluding BWDB's primary pumps.
Note: 1 barrel = 42 gallons; 1 metric ton = 7.4 barrels of HSD (approximately).
Source: IDA estimates and projections.
ANNEX 297 Appendix 2
provisions. The diesel imported by BPC under the Credit would be sold to BADCfor resale to pump and tubewell owners and operators. BADC's sales prices wouldhave to be identical to those charged by BPC's marketing companies -- i.e., theywould have to reflect the petroleum products price increases effected by BPCon July 1, 1982, to offset the higher cost of supplies as well as any furtherprice increases that would be implemented by BPC during FY83.
98 ANNEX 3Table 1
BANGLADESH
DEEP TUBEWELLS PROJECT II
Projection of No. of TCCA-KSS and Membership
Total in 35 1981-8' 1982-83 1983-84 1984-85 1985-86Thanas
1. Figures in brackets indicate additional requirement.2. * TCCA building first floor to be constructed3, ** 10 godowns 900 tons each at village level4. N No TCCA established as yet.
100
ANNEX 4Table 1
BANGLADESH
DEEP TUBEWELLS II PROJECT
Estimated Schedule of Disbursements
IDA Fiscal Year and Semester DisbursementSemester Cumulative----- (US$ '000 equivalent) ------
Fiscal Year 1982/83
First -Second 15,600 1/ 15,600
Fiscal Year 1983/84
First 16,500 32,100Second 10,500 42,600
Fiscal Year 1984/85
First 9,500 52,100Second 6,100 58,200
Fiscal Year 1985/86
First 4,800 63,000Second 3,200 66,200
Fiscal Year 1986/87 2/
First 1,800 68,000Second
1/ Including US$10 M for the purchase of diesel fuel expected to be dis-bursed in FY 1982/83.
2/ Project is expected to be fully disbursed by December 1986 or sixmonths after its completion date of July 1986.
ANNEX 4Table 2
101
BANGLADESH
DEEP TUBEWELLS II PROJECT
Proposed Allocation of Credit
Proposed Allocation Percent of Expendituresof Credit to be Financed
Category (US$ Million)
A. Equipment
1. DTW components 26.00 100% of foreign expendituresor 100% of local expenditures
2. Vehicles, motorcycles, (ex-factory); or 65% ofbicycles and office local expenditures (off-theequipment. 0.40 shelf)
B. Civil Works
1. Construction of office 90% of local expenditures.buildings, staff housesand sheds. 2.90
2. Command area development 90% of local expenditures.(channel lining). 0.50
C. Medium Term Credit Refinancing 17.70 100% of local expendituresfor the amounts disbursedby BB.
D. Project Monitoring andEvaluation 0.20 100% of local expenditures.
E. BADC and IRDP
Salaries for local staff 1/and IP training 0.50 60% of local expenditures.
F. Diesel Fuel 10.00 100% of foreign expenditures.
G. Unallocated 2/ 9.80
Total 68.00
1/ Excluding counterpart staff for ODA financed consultants.2/ Not to be used for imported diesel fuel.
BANGLADESH
DEEP TUBEWELLS PROJECT II
Cropping Patterns, Area Irrigated During Dry Season and Phasing of DTWs
Cropping PatternWithout Project With Project Area Irrigated in Dry Season per DTW Phasing of DTW Installation
Area Crop Cropping Intensity Crop Cropping Intensity Year 2 Year 3 Year 4-20 Year 1 Year 2 Year 3 Year 4 Total
1/ See Annex 5 Table 62/ Calculated according to Doorenbos and Pruit (1977)3/ See Annex 5 Table 64/ For rice assumed as 0.118 inn per day; For wheat field irrigation efficiency
taken as 60 percent.5/ Assumed as 3 ins for Aus and Aman and 5 ins for Boro6/ Assumed as 0.3 ins per month
7/ Conveyance efficiency assumed to be 85 percent.
BANGLADESH
DEEP TUBEWELLS PROJECT II
Crop Consumptive Use Estimates (inches)
Crop Planting/ January February March April Nay June July August September October November December Totel
HarvestDate
Rice Aus90 days 16/4-14/7 1.81 7.17 6.65 1.22 16.85
Rice Aman105 days 11/7-23/10 3.62 5.59 5.08 2.83 17.12
Percentage of ItT Credit DebtService to average Farmer'sCash Surplus 182 17% 172
1/ For the purpose of the financial rate of return calculations, all benefits and costs, except investments are deferred by one yearand an incremental working capital stream is introduced. These adjustments are made to allow for the time lags occuring betweenincremental costs and benefits in different farming systems. (See details in "Methodology of Farm Investment Analysis" EDI CN-67August 1979 by N. Schaeffer Kehnert).
2/ Year 12 has been added for discounting purposes only.3/ Estimated STW equivalent price for DTW. See Annex 6, Tables 5, 6 and 7.E/ See details, Annex 2, Table 3.5/ Assuming two cropping seasons, working capital is estimated to amount to 50t of incremental operating cost of the following year.
Working capital ts recovered at the end of the projection period as part of project salvage value.6/ Salvage value of DTW). Estimate is based on full cost of DTW and not its STW equivalent price.7/ Medium Term Credit at 142 p.a., one year grace period, maturity period nine years to cover 90% of DTW investment coats
(STW equivalent price).8/ Short Term Credit at 16% p.a., to finance cumulative incremental working capital.9/ Estimated to be about Tk 12/day for an average farm family of six persons. Tk 12/day represents the value of about 4 kgs of grain.
109
Table 2
BANGLADeSH
DEEP TUBEWELLS PROJECT II
Financial Analysis for an Irrigtion Group in the Madhupur Tract 11
(Poorly Drained Soils - 80 acres)
Without the Year 1 Year 2 Year 3 Year 4 Year 5-10 Year 11 Year 12 2/Project
Inf lowsGross Value of Production 304,560 304,560 323,160 598,400 644,400 690,400 690,400 690,400(comand area)
Net Value of Production(outside cou-and area) 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000
Percentage of MT Credit DebtService to average Farmer'sCash Surplus - - - 22% 21% 19%
1/ For the purpose of the financial rate of return calculations, all benefits and costs, except investments are deferred by one yearand an incremental working capital stream is introduced. These adjustments are made to allow for the time lags occurring betweenincremental costs and benefits in different farming systems. (See details in "Methodology of Farm Investment Analysis" EDI CN-67August 1979 by N. Schaeffer Kehnert).
2/ Year 12 has been added for discounting purposes only.3/ Estimated STw equivalent price for DTW. See Annex 6, Tables 5, 6 and 7.4/ See details, Annex 2, Table 3.5/ Assuming two cropping seasons, working capital is estimated to amount to 50% of incremental operating cost of the following year.
Working capital is recovered at the end of the projection period as part of project salvage value.6/ Salvage value of DTW. Estimate is based on full cost of DTW and not its STW equivalent price.7/ Medium Term Credit at 14% p.a., one year grace period, maturity period nine years to cover 90% of DTW investment costs
(STW equivalent price).8/ Short Term Credit at 16% p.a., to finance cumulative incremental working capital.9/ Estimated to be about Tk 12/day for an average farm family of six persons. Tk 12/day represents the value of about 4 kgs of grain.
110 ASNEL 6BM.DZSII Table 3
DEEP TUBIWELLS PROJECT I1
Financial Analysis for an Irrigation Group in the Old 8rahuaputra Plood Plain 1/(Well Drai Soils - 80 Acres)
Without theProject Year I Year 2 Year 3 Year 4 Year 5-10 Year 11 Year 12 2/
Inf lowsGross Value of Production 247,600 247,600 266,200 496,000 533,200 570,400 570,400 570,400
(Command Area)Net Value of Production 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000
Percentage of Medium Term Credit Debt 18% 16Z 14%Service to Average Farmer's Cash Surplus
1! For the purpose of the financial rate of return calculations, all benefits and costs, except investments are deferred one year and anincremental working capital stream is introduced. These adjustments are made to allow for the time lags occurring between incremental costs andbenefits in different farming systems. (See details in "Methodology of Farm Investment Analysis" EDI CN-67 August 1979 by N. SchaefferKehnert).
2/ Year 12 has been added for discounting purposes only.3/ Estimated STW equivalent price for DTW. See Annex 6, Tables 5, 6 and 7.4/ See details Annex 2, Table 3.5/ Assuming two cropping seasons, working capital ts estimated to amount to 50% of incremental operating cost of the following year.
Working capital is recovered at the end of the projection period as part of project salvage value.6/ Salvage value of DTW. Estimate is based on full cost of DTV and not on its STW equivalent price.7/ Medium Term Credit at 14% p.a., one year grace period, maturity period nine years to cover 90% of DTW investment costs (STW equivalent price).8/ Short Term Credit at 16% p.a., to finance cumulative incremental working capital.9/ Estimrated to be about Tk 12/day for an average farm family of six persons. Tk 12/day represents the value of about
4 kgs. of grain.
ANNEX 6
lll Table 4
BANGLADESH
DEEP TUBEWELLS PROJECT II
Financial Analysis for an Irrigation Group in the Old Brahbuputra Flood Plain 1/(Poorly Drained Soils - 80 Acres)
Withoutthe
Project Year 1 Year 2 Year 3 Year 4 Year 5-10 Year 11 Year 12 2/
Inflows
Gross Value of Production 304,560 304,560 323,160 598,400 644,400 690,400 690,400 690,400(Command Area)
Net Value of Production 270,000 270,000 270,000 270,000 270,000 270,000 270,000 270,000Outside Command Area
Total Inflows 574,560 574,560 593,160 868,400 914,400 960,400 960,400 960,400
Percentage of Medium Term Credit DebtService to Average Farmer's Cash Surplus 122 11% 10%
1/ For the purpose of the financial rate of return calculations, all benefits and costs, except investments are deferred one year and anincremental working capital stream is introduced. These adjustments are made to allow for the time lags occurring between incremental costs andbenefits in different farming systems. (See details in "Methodology of Farm Investment Analysis" EDI CN-67 August 1979 by N. SchaefferKehnert).
2/ Year 12 has been added for discounting purposes only.3/ Estimated STW equivalent price for DTW. See Annex 6, Tables 5.6 and 7.4/ See details Annex 2. Table 3.5/ Assuming two cropping seasons, working capital is estimated to amount to 50% of incremental operating cost of the following year.
Working capital is recovered at the end of the projection period as part of project salvage value.6/ Salvage value of DTW. Estimate is based on full cost of DTW and not on its STW equivalent price.7/ Medium Term Credit at 14% p.a., one year grace period, maturity period nine years to cover 90% of DTW investment costs (STW equivalent price).8/ Short Term Credit at 16% p.a., to finance cumulative incremental working capital.9/ Estimated to be about Tk 12/day for an average farm family of six persons. Tk 12/day represents the value of about
1/ STW - at 12% interest rate assumed to be the opportunity costof capital in Bangladesh; 7 year life of engine, 10 yearlife for pumpset and 20 year life for remaining componentsof STW.
2/ Diesel powered DTW (see details in Annex 2 Table 2) at 12% interest
rate assumed to be the opportunity cost of capital in Bangladesh;10 year life of engine, 12 year life of pumpset and 20 year lifefor remaining components of DTW.
3/ Diesel at 0.05 gal/hp/hour at 26Tk/gallon.
4/ Oil consumption estimated at 0.75 of fuel consumption at TKllO/gallon.
5/ Taken as 5% of the capital cost of pump and engine (including duties
and taxes) per 1000 running hours.
6/ Taken as 10% of capital cost of engine and pump (including duties andtaxes) per 1000 running hours.
7/ Seasonal salary for part time ditch riders. Mission estimate.
SANGLADESH AME 6TABLE 8
DEP TUIZWELLS PROJ1CT II
Iconomic Costs and Returng to WAter(Tk - eGonomic price.)
Madhupur Tract M4adhupur Tract Old lrahmeputra Flood Plait. Old Brahmaputra Flood PlainsWell Drained Soils Poorly Drained Soils Poorly Drained Soils Well Drained Soils
5. Water Pumped ( 3/year) 136.706 300,595 300.595 131,680
6. cost ner a3/vear 0.59 0.37 0.37 0.61
B. Value of Water
1. Incremental Net Value 3/ 350,246 286.376 286,376 281,660of production (at fulldevelopment)
2. Water Requirements (a /year) 136,706 300.595 300,595 131,689
3. Value of Water (Tk/m 3 2.56 0.95 0.95 2.14
1/ For standard 2 cusec diesel-powered DTW._/ At 121 which is considered to be the opportunity cost of capital in Bangladesh. Life expectancy for engine is 10 years; for puapset 12 years
and well components 20 years.3/ Met incremental Val.u of production: gros. val of prodvtior -4- aonomic cost for hired and family labor, fertilizers, plant protection,
bullocks and seeds minus net incom of present situation.
116
BANGLADESH ANNEX 7TABLE 1
DEEP TUBEWELLS PROJECT II
Derivation of Prices for Rice and Wheat in the Economic Analysis(1981 Constant Prices)
Items Rice / Paddy WheatAman Aus/Boro
Projected World 1/ 510 510 220
Market Price 1982-90US$/M.T.
Freight to Bangladesh Port 32 32 65
C.I.F. Chittagong (US$/M.T.) 542 542 285
C.I.F. Chittagong (Tk/Md) - 394 394 207
Adjustment for Quality 3/ G.70 0.65 0.90
Differential (factor)
Adjusted C.I.F. Price (Tk/md) 275 256 186
Local Costs between Port -/ 18 18 20
and Market (Tk/Md)
Market Price (Tk/Md) 293 274 206
Local Costs between -/ -63 -63 -42
Market and Farmgate (Tk/Md)
Sub-total 230 211 164
Processing Ratio 0.65 0.65 1
Farmgate Price (Tk/Md) 150 137 164
1/ Source: IBRD Price forecasts dated December 24, 1981.
Rice: Thai, milled 5% broken FOB Bangkok; Wheat Canadian
No.1 Western Red Spring in store Thunder Bay.
2/ Official exchange rate of Tk 19.5 = US$1 One metric ton
(M.T.) = 26.8 maunds
3/ For 25% to 35% broken. Larger percent for Aus and Boro
crops which are of inferior quality.
4/ DaLa supplied by Ministry of Food adjusted by a SCF of
0.o3 for non-traded items.
5/ Costs established by a GOB study and adjusted by SCFof 0.83 for non-traded items.
* 117 -
BANGLADESH ANNEX 7TABLE 2
DEEP TUBEWELLS PROJECT II
Derivation of Fertilizer Prices used in the Economic Analysis(1981 Constant Prices)
1/ For the purpose of the economic rate of return calculations, all benefits and costs, except investments are deferred one year and an
incremental working capital stream is introduced. These adjustments are made to allow for the time lags occurring between incremental
costs and benefits in different farming systems. (See details in "Methodology of Farm Investment Analysis" EDI CN-67 August 1979 byN. Scaheffer Kehnert).
2/ Life expectancy of DTW engine - 10 years; pumpsets - 12 years; cars and jeeps - 5 years.3/ Salvage value of DTW engines and pumpsets only.
4/ IRDP and training costs only.5/ Including farm family labor.6/ Introduction of a working capital stream to reflect farmers need (liquidity) to meet operating costs about half a year before the
benefits are received. Working capital is equal to 50% of the difference between farm production and irrigation costs for each yearand the following year. Working capital is recovered at the end of project projection period, as part of its salvage value.
- 120 ANNEX 8
BANGLADESH
DEEP TUBEWELLS PROJECT II
Related Documents and Data Available in the Project File
A. Reports Relating to the Project
1. "Report of the Bangladesh Deep Tubewells Project" by PreparationMission. FAO/CP Investment Centre. Report No. 37/81 BGD-27 datedOctober 6, 1981. Main report with 10 annexes.
B. Selected Working Paper
1. Working Papers on Tender Documents, prepared by FAO/CP InvestmentCentre, October 6, 1981.
2. Bibliography.
121
BANGLADESHDEEP TUBEWELLS PROJECT
TYPICAL WELL SECTION(DIESEL POWERED)
Gearbox
8" dia. HaHrdy spicer shaftdischarge pipe L d Clutch
Level of pwel c 14" die.
emounti- - Engling 6" d
gn ~~~~~~~~~~~~~~~~~~~~~~~Sre 6'da
Gravel ftMovement JointloPump suspension tube
SeCtiOn A-A 2 . ~ Still water lewl
construco se O. N.Outlet connectionLowest normal working water level . -|sCenter line of first stage impeller
Pump bsyi mt Inlet tO pump body
4 1 ~~~~~~~~Working water level
Lower and of wsution pipe
1 b ~~~Upper vvell casing 14" dia.
_ T r ~~~Reducer
~~~~Lower well casing 6" dia... _ , . ~~~where ordered
, & r. ~~~Screen 6" dia.
r ~~~~Gravel filter
< ~~~~Lower well casing 6'' dia.: § ~~~~~where ordered
+ ~~~~~Bail plug 6'' dia.
s ;'-0" l W ~~~~~Centralizer
NOTES t2:tw1. For details of tubevvell house
construction see Drg. No. iDA DTW 4 20''
2. D imensions are typical onivDiameter WVorld Bank-23532
122
BANG LAD ESHDEEP TUBEWELL PROJECT
TYPICAL WELL SECTION(ELECTRICALLY POWERED)
To P.B. orREB. pole -.-
112'" G.l. Pipe p e.o
Tubewell house for details see Mains supplydrg. n. IDADTW 4
Control
Discharge box 8" diafor details see discharge pipedrg. n. IDADTW 4
_ _ _ |= ~~~~~~~~~~~~Pump power cables and
A A lovwb level electrode
I § $ x ~~~~~~~~~~~~~~~~~~~~~~~~~F.G. L.
__O. G.L.Combined coverplate
LL U- and rising mainoL O anrsngano f Approved movement joint >-t support
ra l ~~~~~~~~~Still water level RllL ising mainl ~~~~~~Pump set power cables
Lowest normal working water level
Low water level electrode
Center line first stage impelier
Submersible pumpset
14" dia. upper well casing pipe
World Bank-23533
123
BANG LAD ESHDEEP TUBEWELL PROJECTS
Implementation Schedule
Yawr Yer 2 Yea 3 Year 4ActwirVi Prei-Proluct Dr-,Monoon-Dr--O--Dr
SDr i Anmon Dry Monsson Sron Monsoon Dro Monsoon
Procurement of GRP and Mild Steel DWell Components D
Procurement of Stainle Steel Screen D
Procurement of Pumps and Motors _ _
Procurement of Drilling Rigs andcAuciliarien
Site Selection . .....
Irsuing Drilling Con,racts
Well Construction
Commissoning ot Wells -_
Procurement of Vehicles ancEquipment
Training of BADC Staff ..... .............................. ........................................
Pilot Projects Equipment Procurement
Pilot Projects Impiementation andMonitoring .........._...................................
Studies
Full-time Actiolty World Bank-23534.Pars-time Activity
........... Part-nme ActiyitsD Defiverv
IBRD 16189
) goO 9'0 BANGLADESH FEERUARY 19828) T,hs map has boon prepared bV the
Wo)ld -- t staff essise/y tot DEEP TUBEWELL PROJECTth. conPn,n, o h ( the-re drsfthe report to edhich e ls attachedThe denorme,ioe,s tsed end the1 ottdar,eotshownt so th,t map^ ^ do not ,rnpt on the part of the _ PPROJECT AREAWorld Pa-k and its sf0lrates. anyJudgmef -t othlg alstatvo i STUDY AREAa nV territtr orV err! enndorsement Jo ert epteone of sooh boundar-es ROADS
RAILWAYS
THANA BOUNDARIES
DISTRICT BOUNDARIES
/ ,. - - INTERNATIONAL BOUNDARIES
I N D I AKILOMETERS i 20 40 E0 Bp
I LES 0 10 2h 30 40 doo> SRahadu rabad|
G-t ~ ~ ~ '
240 G-ae Jrrris _JSso-a
lJamalpu~~~~~~hsrgo U - - '\,hl - / '
, Shapgur . . -an•
23
J~~~~~~~~~~~~~~~Gf' KannaohDanl H t~ b,/
/. \-:
-to--I X SaXtgaEt-
Tangail, , '!. < Srspuri . X ~~t / .3 Sr,p!
-- O ~ , ,r-:
F . / , 8 ~~~~~~I N D I A
I)~~~~~~~NI
INDIA 27-'2>\ 220
j~~~~ 1.URM
-- ,I,,1,: '.9 L\-
9¶O 2-. 92L '_________________________________________________ --' S~ .T Ch n I -
Itie <<\ ., S9° 90' 92'BANGLADESH
DEEP TUBEWELL PROJECTThickness of Upper Clay and Silt
Range of thickness of-26* upper clay and silt (ft.): Road
i * -= 4_ \ rr rfi - !, ' CHITTAGONG NOTThis map has bhen prepared by theWorkd Banks staff exclus-ve - for'the convenience of the readers of . -the report toehh it isattached.The deno`oatisns s`ed and the -boundaries shown on thns map - P .do not iply, -o the part of theWorld Bank and itS affifiatas, any _judg-ent en the legal status ofany terrtory or any andorsement A VA /LABL Z=or acceptance of o-ch boundaries.-
