RESTRICTED

Report No. PS- 1

This report was prepared for use within the Bank and its affiliated organizations.They do not accept responsibility for its accuracy or completeness. The report maynot be published nor may it be quoted as representing their views.

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ENGINEERING SERVICES

FOR THE

KARNAFULI AND MUHURI IRRIGATION PROJECTS

EAST PAKISTAN

May 15, 1970

Special Projects Department

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CURRENCY EQUIVALENTS

US$ 1.00 = Rupees (Rs) 4.762

Rs 1 = US$ 0.21

Rs 1 million = US$ 210,000

WEIGHTS AND MEASURES

1 .mnvnvu = 0.037 lg~ tons

nOT n C A' OV

Khal - Small natural water course

Kharif - Summer (wet) cropping season

Rabi - Winter (dry) cropping season

DAVtTOAW.

EINGE ING SERVILrC. rFO" tn URoiAtuA DI A3D "UT1UWIDY &DUTIATd PROJECTS

ftA 1"Y " 1 %ISLABI. OFr CUflE'ILD

Page No.

SUMMARY AND CONCLUSIONS . ................. . ....... 1

I. INTRODUCTION ................................................ 1

II. BACKGROUND ................ .. * .............. 1

III. THE KARNAFULI AND MUHURI IRRIGATION PROJECTS ..... 4

Karnafuli Project -- Halda Unit ............. 5VAirnaftil4 Prn4p-t -- IThAmAtl 1n4t -, ----- 8Muhuri Project ........... .................. . 8Status of Project Preparatio-n ...... ... .... 10Need for Engineering Services ...... ......... 11

IV. THE ENGINEERING CREDIT . ............... . ....... ... 12

Cost Estimate and Financing ................. 13Disbursements ...............................

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UT DVf~f?.a,1VbTt A~TI~?l~ * * .. . ..... . . . . . . . . . . . . IL... VI. *sa.,ru.Arwa...,a. , ..o ............................ '

ANNEXES

1. Time Chart

2. Engineering Services -- Outline of Terms of Reference

3. Consulting Firms

4. Cost Estimates

5. Benefits and Costs of Karnafuli Project

'na r

This report is-based on the findings of an IDA appraisal mission to EastPakistan in November 1969, composed of Messrs. P. Kirpich and R. Marma,both of whom contributed to the report with Mr. Kirpich having primaryresponsibility.

PAKISTAN

ENGINEERING SERVICES FOR THE KARNAFULI AND MUHURI IRRIGATION PROJECTS

SUMMARY AND CONCLUSIONS

i. This report sets forth the appraisal of a project for engineeringservices for the Karnafuli and Muhuri irrigation projects located in EastPakistan. An IDA credit of US$2.4 million is proposed to cover the esti-mated foreign exchange cost of these services. The Government of the Pro-vince of East Pakistan would provide local costs at an estimated value ofUS$1.4 million equivalent.

ii. The Karnafuli irrigation project would provide flood preventionand dralnase in an area of 131.000 acres and irritation in a net area of55,000 acres. The Muhuri irrigation project would provide flood preventionand drainAae In an areA of 101;000 acres and irrieation in a net area of42,000 acres.

iii. A feasibility study of the Karnafuli Irrigation Project, com-pleted in4 Mn--y 196, rovi Jydesa nvn adequate has4n fnor pnmatljg pro4ert

costs. On the basis of comparable projects in East Pakistan, the Bank iss…tisfied that the likely benefits from th… pro4ect …^d …row…A asatisfactory economic justification. The May 1968 report is however incomplete

ith ~~~~. esett(a)-dairag facJ444- ites(b proved meth^Aa o£ 4rr4-afi4^.. n.. ... o.u~.. - ", &c&40 %A4t4 ~ S -WO - 44-.5

distribution, (c) project organization and (d) returns to and repayment-A-4l 44e4 oc par:i 4 c4pat 4ing famera.

J. t. 4.4LqJ6 UJ.A* & &"aI&u

iV. S fessi bD.L..J'iy s:uty of &I .uLAUiJ Irriga:ion rJ , da:4ed .&auMy

1967 is incomplete with respect to the same four items mentioned in theforegoing pOagra&pu& in addiJ:ir a ZJ … fC: , u

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the project area of water for irrigation needs working out. The Bank feels.u& te '.LJe.WJ.y U=LLrL.L%.s froUm t;,,e project wou.Pl a verIheJ pLUVide 8 s-

tisfactory economic justification.

v. Besides being economically Justified, the Karnafuli and MuhuriproJects are at a relatxvcly auvanceu stage of pruparacon anu can proceau Loconstruction more quickly than the many other projects in the Province thatb.s-ve beer. studied In recent years. Mne Lwo prQijectu wuJU w reuver cone itueeinitial steps in the development of further, similar projects, ultimatelycv-ver.u uver a mu..ioun acres, in the southease region or Lus rrovince. Asingle consulting group, comprised of a Pakistani and an expatriate firm wouldprovide hec engineering services for the future as will as the initial twoprojects.

vi. The largest single part of the credit--$1,100,000--would be forehe Karnafuli project; of tnis $200,000 wouid ce ror revision of tne reasi-bility study and $900,000 would be for the preparation of tender documentsand final designs. The tender documents would be prepared concurrentlywith the feasibility study revision (completion of both expected April orMay 1971) while the final designs would proceed imxediarely tnereafter.

This procedure would enable construction to start December 1971; the timesaved Would 'ie at least a year but.. it: could amour. to as uch as two earsdepending upon how rapidly subsequent steps are executed. Thus if tendering

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a year's delay would be entailed; if further postponed - until after detailedappraisal and grant;Lng of a con.struction. credit--the delay would be 'wo years.

Vii. nu Ocounu LarK25L parLt of tlhe credLL ---Y±l,VVO,UU--WOULU DC forthe Muhuri project; $200,000 would be for revision of the feasibility studyand ?800,000 for tender documents and final designs. Tne feasibility studyrevision would take until about March 1972, which, for the reasons previous-ly mentioned, requires a longer period of time than for Karnafuli. An inter-im report enabling tender documents and final design to proceed would beissued August i97i; this would enable construction to start December i972.

viii. Tne remainder of the credit--$300,000--wouid be for preliminarystudy of a scheme to transfer water from the Dakatia River to the MuhuriRiver via the Little Feni River. Since ultimately such a scheme would beof benefit to a considerable area--perhaps as much as half a million acreslocated in adjacent project areas known as "Comilla-Noakhali" and "LittleFeni"--it would be necessary to carry out reconnaissances, prepare prelim-inary designs and plan the staged development of such a scheme.

ix. In the event that either IDA or the Bank should subsequentlyassist in financing of the Karnafuli or Muhuri Irrigation Projects, con-sideration could be given to the refinancing of the proposed engineeringcredit from the proceeds of such subsequent credits or loans. When and ifsuch credits or loans are being examined, consideration should also be givento financing feasibility studies for the Comilla-Noakhali and Little Feniprojects.

x. Past IDA financing of water development projects in East Pakistanhas involved a total of US$25.05 million for four projects: Dacca-Demra(11-PAK, US$1.0 million), Brahmaputra Embankment (39-PAK, US$5.0 million),Chandpur I (40-PAK, US$5.25 million), Dacca Southwest Engineering (S-8,US$0.8 million) and Chandpur II (184-PAK, US$13 million). In addition theAssociation jointly with the United Nations Development Program (UNDP) hasfinanced the foreign exchange cost (US$4 million) of general consultants tothe East Pakistan Water and Power Development Authority (EPWAPDA), the princi-pal body charged with development of the water and power resources of theProvince. Since September 1967 the Bank has established a special Group toAssist East Pakistan in its agriculture and water developement program in-cluding the selection of water prolects for the Fourth Plan.

- iii -

xi. The proposed project would have a total cost of US$4.6 millionequivalent including contingencies. Cost data is based on the time-duringwhich experts of various skills would be required. The work would be car-ried out by a joint venture of a Pakistani consulting firm and an expatriateconsulting firm. The terms of reference of the joint venture would requirea progressive shift of design work activities from outside to within EastPakistan. The joint venture has been selected following evaluation ofproposals and the relevant contract would be subject to the approval of theAssociation. The general consultants to EPWAPDA would assist in supervisingthe contract.

xii. The project is suitable for an IDA Engineering Credit of US$2.4million, for a term of 10 years including a grace period of 2 vears. TheCredit would cover the estimated foreign exchange requirement which amountsto 52% of the total cost. The local cost would be provided by the Governmentof the Province of East Pakistan. The Borrower would be the Central Governmentwhich would make the proceeds available to the Provincial Government.

I

PAKISTAN

ENGINEERING SERVICES FOR THE KARNAFULIAND MUHURI IRRIGATION PROJECTS

I. Introduction

1.01 This is the second engineering credit proposed for a prolect inEast Pakistan combining water control (flood prevention, drainage, irriga-tion and navlgation) with agricultural inputs. A previous such engineer-ing credit, No. S-8 for the Dacca Southwest Irrigation Project, was approvedby the Executive Direetors of the Association on December 9. 1969.

1.02 This report In hased on feaeibilitv studies carried out bvconsultants from 1965 to 1968 and on the findings of an appraisal missionconmit4ino nf Messrs. K±rplch And RArvun of the paeeial Prnometa fDepartmentwhich visited Pakistan in November 1969.

2.01 East Pakistan is predominantly agricultural. Ninety-five per-^er.t of -1 th popu'a:ior of0 '73 _fIlI .. -8 - - - I nd 58V of the proince's

*. &** J U&q VWV%yA&=.&W.~LL W& .I M AU.L.&.LWA&U &V &"~& M6., MAL".. -'W WF IWAll J.ASI.

gross production comes from agriculture. In contrast to the impressivegr..w.iL 'L. WUSC "YP.Ustan o-ver theU pas;-6 few yesrs, agrLA.iUcLUL Lre rL :

Pakistan has lagged seriously. Between 1964-65 and 1968-69, production~A&~L~mUU ~UU5 LIU A & pJL UUUIAUM, UjL UWL 6IIULL FUFU.ULALWLI WIALV11 reir.creased Aess thon 2% pea.rm ors so-wer tr-.--plti..-wc gre-w

at an annual rate of 3.2%. Therefore, East Pakistan has had to relyInCL.LVU.Ulsy upuu IMpOUIT to wee; i;8U UUfoUoLdgrai requiJrumCULLw, 'mrLY.ly ricL.

These imports, including supplies from West Pakistan, have increased stead-ily from 580,000 tons lrn 1960 to 1,200,000 tons i.n 1968-69. Rice anu wUeatimports, excluding trade with West Pakistan, averaged US$33.5 million in

2.02 Population dansities are among the world's highest, averagingmore than 1,300 persons per square mile, but ranging in some rural areasas high as 2,000-3,000 per square mile. with popuiation growing at 3.2%annually, the population will almost double during the next two decades.

2.03 Approximately 22 million acres, 64% of the province, are culti-vateu. As8all land suitable for agriculture is already being cultivated,increases in production are possible only by increasing yields per acre.Farms are smail (3.4 acres on the average) and highly fragmented. Relativelylittle capital is employed and the yields per acre and per worker are amongthe lowest in the world. 1tzch of the agricultural production is assentiallyfor subsistence. Rice is overwhelmingly the most important crop, accountingfor as much as 82% of the total output of major crops. Jute is the mostimportant cash crop and the province's main export.

2.04 The climate of East Pakistan is one of extremes of heavy rain-fall aw.ad flo"-s fo$.- elved by fou:r. to five -tb.s of relat.4-v A.. -- °

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fall averages 85 inches, of which about 58 inches fall during the rainy@sea;.4 fro MIa to OctsI VOber.6L * .L UJF#1.IC-Wt OVo bRWL rinJ' UL .LiaD fa.ULl] aVV%L lgi

from 48 inches in the west to more than 200 inches in the Himalayan foot-hl Ls1. Cyclonic stor-ms, originating in the Bay of Bengal in autumn causewidespread destruction from wind and flooding each year. Even during.he monsoon period, bcause of irregulaL rainfall, there May be iUsufficieIntwater for crops. For the most part during this time, however, crops general-ly suffer 'rom excess water and flooding, ad rice growth i: retarded bycloudy skies. During the dry season, quick maturing crops, mainly pulsesand cere1As "(iLULy U1;lLUJ are grown. AbOUL OVA 01 LUC cU;EiV8LCU lanois left fallow in the dry season because of insufficient water.

2.05 Most of East Pakistan is an extensive, very flat, flood plainstretching from tiu: Himalayas Lo Luc Bay or Bengal. ine buli or thisplain is less than 30 feet above sea level and comprises a vast networkof rivers and c'nannels. T-ne Ganges, Bra'nmaputra and meg-nna nivers, witnmore than 600,000 square miles of drainage area, of which only 55,000 liein East Pakistan, meet tnere to form tne iargest deita in the worid. One-half of the delta is flooded annually; however, almost two-thirds is sub-ject to flooding at one time or other. Generally, the fiood waters risegradually beginning in June, reaching their highest levels in July andAugust. Such floods are caused by spills from the main rivers to theland and from the fact that local runoff from the monsoon rains is backedup by flood levels in the main rivers. Another but less general type offlooding is from tributary streams draining hilly areas near the Indianborder. While the duration of this type of flooding is less, the rise andfall in flood levels is much more rapid. The Karnafuli and Muhuri projectsare in areas subject to the latter type of flooding.

2.06 IDA has so far assisted in the financing of construction ofthree water development projects in East Pakistan with a total of US$24.25million of credits. In addition, in 1969, IDA provided an engineeringcredit of US$0.8 million for the Dacca Southwest irrigation project (S-8).The first of the three construction credits (11-PAK) was in 1961 for theDacca-Demra project for US$1.0 million. The construction phase of thisproject, which provided partial flood protection and irrigation in an areaof 15,000 acres, was substantially completed in 1967 and benefits are beingobtained. The second (39-PAK) was for the Brahmaputra Embankment projectin 1963 for US$5.0 million to provide flood protection to an area of580,000 acres by means of 135 miles of embankment and appurtenant structures.This project was completed in late 1968 and flood protection benefits arebeing obtained.

2.07 A third credit (40-PAK) of US$9.0 million was made in 1963 forthe Chandpur project, a combined irrigation and flood protection schemecovering 127,000 acres. The irrigation features were dropped in late 1965and the credit reduced to Us05.25 million. Work proceeded on tne floodcontrol features but these too were halted early in 1967 and the remainingproceeds of the credit were used to engage new consultants to assist in thepreparation of a revised project which would restore irrigation as a primaryfeature of the project but on a substantially modified basis as comparedwith the original project. Whereas, under the original project, irrigationdistribution was to have been accomplished by means of canals elevatedabove the terrain, the revised project would make use of natural drainagechannels; water would be lifted from the drainage channels by means of por-table low-lift pumps. Besides involving lower construction costs, therevised project requires acquisition of much less land -- an important con-sideration in East Pakistan in view of the severe pressure of the growingpopulation on the land (see para. 2.11). The revised project was appraisedby a mission that visited Pakistan in July 1969 and a credit for constructionamounting to US$13 million was approved April 14, 1970 by the ExecutiveDirectors of the Association. The revised project would provide flood pro-tection for a gross area of 140,000 acres and irrigation to a net area of75,000 acres. _/

2.08 The Bank has assisted EPWAPDA (East Pakistan Water and PowerDevelopment Authority) in its planning efforts in various ways since late1963. EPWAPDA is a statutory semi-autonomous body charged with coordinateddevelopment and utilization of the water and power resources of the Pro-vince. In September 1967, the Bank established a special group (the EastPakistan Agricultural and Water Development Program Bank Group)'to assistEast Pakistan's Government in its agriculture and water development pro-gram. 2/ In January 1969 IDA provided financing to the extent of US$2.0million (136-PAK) which together with $1,947,300 from the United NationsDevelopment Program will pay for the foreign exchange costs of general con-sultants to EPWAPDA during an initial two-vear neriod.

2.09 A considerable part of the East Pakietan Bank Groun's work dinceits inception has been devoted to providing assistance to the Governmentof East Pakistan In the selertion of water nroiaeta for the Ynurth PlvuYear Plan (1970-75). There have now been four Bank missions on this sub-iect and. as a reault of the diAloauan betweon RPWAPDA and the PlAnning

Department of GOEP on the one hand and the Bank Group on the other, ithaa been agreed that in ldent4fving And aelertfng proJeets ttiehnnlngar4 land economic factors must receive full consideration and the limitationsof provincial inatituttona In impnlamanting nronisets Mt he recognn4edand the institutions strengthened. Accordingly, projects are now being

1/ "Gross area" is the total surface within the geographical limits ofthe project. "Net irrigable area" is that part of the farmlands inthe project that can be irrigated.

2/ See the President's statement to the Board on this subject', datedSeptemher R. 1967.

-4-

planned and implemented on a sounder basis than heretofore. The BankGr-oup -41W cont4.ue *.j au1 wto . *the assistance n0 -.w Wv.ae1a.b.le fro

the general consultants, it is expected that a sound program of identify-t g andA preparing pro4eces car. con.tinue t-o -vove

IL.1 4D lur'lng the n-ext: fWew years it- 'Ls expected O&-tha feasib.l.lit;L studiesfor a number of water-control projects involving the investment of severalZILIntLCU ULL.L.L.Lons oL U WVA CLO O Will Ue reCvie andu CO-VUplelted. * V-Uring the

same period, efforts will be made to prepare proJects involving agricul-tural irrputs uc as irrigat.io. water 'roum, tubeells an.d l Aow-l'f pue.a,

improved seed, fertilizer, pest-control and credit. It is possible thatas a reCu.L of Lthes eiforLt pEOj=ULs IL oL' hi L LrLae of return t0a the

Karnafuli and Muhuri projects could result. However, the Karnafuli andMunuri projects have saLlaractorl-y hLgh raues of return anlu they are: at arelatively advanced stage of preparation as compared with other projects.Tnere is thus no reason to delay their construction and iWplemUntation.The two projects would moreover constitute initial steps in the developmentof further, similar projects ultimately covering over a milliou acres in theSoutheast region of the Province (see paras. 3.18-3.20).

2.11 The Karnafuli and Muhuri projects would follow a strategy of waterproject development that has gradually evolved over tne past five years andwhich is being followed in the case of the Chandpur and Dacca Southwest pro-jects. This strategy includes the following three principal elements: (a)internal irrigation distribution would make use of natural drainage channels(better suited to the small, fragmented pattern of landholdings -- see para.3.09; also, one of the impediments to past projects, that of obtainingrights of way for canals, would be minimized); (b) recognition of the factthat the farmers have historically adjusted their practices and croppingpatterns to flooding so that floods within the projected area must beeliminated gradually to allow time for modifications in the farmers' prac-tices; (c) agricultural implementation -- that is, the provision of agri-cultural inputs -- should be concurrent with construction of the projectrather than waiting until the construction phase is complete.

III. The Karnafuli and Muhuri Irrigation Projects

3.01 The Karnafuli irrigation project includes four sub-projects ofwhich two -- the Halda unit with a gross area of 131,500 acres and theIchamati unit with a gross area of 16,000 acres - are proposed for earlyimplementation. The other two subprojects with a combined gross area of35,000 acres have been deferred indefinitely. Engineering services forthe Halda and the Ichamati sub-projects together with the Muhuri irrigationproject with a gross area of 101,000 acres would be included under the pro-posed credit.

3.02 Feasibility reports for the Halda and Ichamati units of theKarnafuli projects were completed in May 1968 by the consulting engineer-inR firm Justin-Courtney-Hohlweg-Watts (USA); the foreign-currency costwas financed by US-AID. A feasibility report for the Muhuri project wasprepared January 1967 by the consulting engineering firm Techno-Consultof Karachi, Lahore and Dacca.

Karnafuli Project -- Halda Unit

3.03 In the case of the Halda unit, flood protection would entail adike svstem with a total length of 70 miles. There would be 8 miles ofdike with an average height of about eight feet along the right bank ofthe Karnafuli River. There would be 26 miles of dike along each bank ofthe Halda River with an average height of about 10 feet and with a maximumheight of 12 feet. Finally. there would be 10 miles of dike averagingabout eight feet in height along the two principal tributaries, the Sonaiand Sarta KhAIn- TheRe embhAnkmaent wnuld eliminate flooding from thestreams mentioned.

3.04 Flooding occurs every year during the monsoon season when largennrtinnR nf the Area are 4ni,ndAmtr tn depthA of 3 tn 6 but aA mUgIh ae 9

feet. Typically, farmers now grow aus followed by aman rice in areas ofmditlm t-n Aman flnnMgo a"n nmAn r41 e In AreAe nf shAllnW flooding. 1/I

3.05 S4ne- f1no%i4n& Anoes not rA4nnrlv Inat more thnn a week Or t-wo

the farmers grow transplanted rather than lower-yielding broadcast rice. Onthe other hand, the transplanted rice is ot .,svrl dmaeA hw flshfloods. Rice yields, which are presently low, could be about tripled throughelimin.ation. of .flooding .- A pro4IAior. ". of ..4 ..ee4 ^.ih j4 p iw.d. 4-1.h

basis for a modernized agriculture.

3.06 As proposed in the 1968 report, the embanked channel of the.U1Ala R^iver would have a discharge capac-it: of 22,000 cusecs "i:h a turee*UJ.~4~ AV~L W~JU.&~ £ZUV L F%WAAft&5W %-@PU%J6.LY %P. L. YUWU I W.L F.1 AA LILU

foot freeboard. The maximum flood flow observed to date has been only11) 7Cn L.. L… 1.. aJ.-. L. U.-. UJL…-1275 ~ .JJ cusecs; however, t;l,e consulta.nts estimate- -.h1sL. thLe h1'&heIL caUpaLcL'would be required because confinement of the river by embankments wouldelimin.ate n0atural valle-y torage a-nd therefore increase the dicharge ascompared with natural conditions. The proposed studies should review thecon5u'Ltanuts uaJyi8i particularly as reugarus scouring and reau;sing main-tenance problems.

3.07 The other major features of the Halda sub-project, besides floodcontrol, would be drainage, irrigation and navigation. For drainage, theconsultants recommend excavation of a 9-mile long channel, called the West%auLn urain. oume auulLional urainagc works migght b necessary fur Luclarge low-lying"area in the southeast portion of the project and this wouldbe studied under the proposed engineering project.

I/ Aus rice is planted in March and harvested in June or July. Aman riceis harvested in November or December. The aman rice in the Karnafuliarea is of the transplanted rather than the broadcast variety.

3.08 For irrigation of the Halda unit, the consultants proposeda main pumping station (capacity 1,750 cusecs) which would lift waterfrom the Karnafuli River into a main gravity canal at elevation 23 feet.After flowing in this canal for a distance of five miles, water would berelifted by a second pumping station (capacity 1,060 cusecs) to eleva-tion 45 feet. The irrigable area would be 84,600 acres net and distri-bution would be by means of conventional gravity-type canals. The systemproposed, besides being costly, would not be suitable under the conditionsof small land-holdings that prevail. The average farm holding is about2.6 acres of which 2.1 acres are presently under cultivation. Conditionsin this respect are similar to those at Chandpur where the average holdingis two acres which is fragmented into as many as ten pieces. Also, as atChandpur, the project area is cries-crossed by many natural watercourses(khals) and excavated drainage channels which are tributary to the khals;there is thus hardly any point in the project area more than a mile froman existing drain. It should thbrefore be practicable to irrigate a largepart of the area by low-lift pumps taking the water from the khals and thuseliminating the need to take land for canals. (This is the system proposedfor the Chandpur project.) The water would be pumped from the KarnafuliRiver and utilizing low-lift pumps it should be possible to irrigate a netarea of about 55,000 acres located between elevations 7 and 25. The maximumstatic lift would be 18 feet and the average would be only about 9 feet --much less than required by the pumping stations proposed in the 1968 report.Following further investigations it might be possible to further extend theestimated area beyond 55,000 acres, either by additional pumping (relifting)or by development of ground water, particularly in the higher, foothill areas.For the latter type of development, Rroundwater surveys and explorations wouldbe necessary but these could be carried out gradually without holding up themain. firststage development; the surveys and explorations would however beincluded as part of the feasibility study revisions.

3.09 The Agricultural Development Corporation (ADC) 1/ of East Pakistanhad placed 11,000 low-lift pumps throughout the province bv March 1969 andits plans call for 19,000 low-lift pumps to be installed by the winter of1970. Under the so-called "Thana Irrigation Plan." a "pumo groun" of thefarmers -- usually from 40 to 75 -- has been formed within the area servedby eaceh numn. Thi-nq han averaged about 50'acren: thua about I1onn npumnp-S r _ ---r - -o - ,- - - - -- - r- r --

would be required for the Halda Unit. The pump group collects pump-rentalanA fuel hrnrges and arranges for the AxcAvatinn of field channels forwater distribution. The layout of these channels within a typical 50-acrearea,.,h4le impeded by the fragmented holdingn and small plot8 in far leAn

1/ ADC is a statutory semi-autonomous body constituted to carry out thefunct4"os of supply of c&odmA4f*4nc euia".t- nnd servrIes for theagricultural sector and is the body responsible for the low-lift pumpprogram throughout ast Pakstan.

complex and less land consuming than what would be required for a conven-tional gravity system. 1/

3.10 Still another important benefit of the project would be theprovision of interior navigation. Rural roads are lacking in the projectarea and moreover the economic level of the typical rural family is toolow to be able to afford wheeled vehicles; native country boats on theother hand are available everywhere. The improvement of the numerousdrainage channels will provide many new navigable waterways and the main-tenance of a minimum water level inside the project area during the dryseason as well as a maximum level during the wet season will greatly ex-tend the availability of navigation. At some of the principal naturalchannels, navigation locks would be provided to permit boats to enter andleave the empoldered areas.

3.11 A key problem in any agricultural or water development projectin East Pakistan is that of organizing to assist the farmers to increasetheir crop yields and thus benefit from the project. This is particularlytrue with respect to agricultural inputs (including low-lift pumps). Forthe Chandpur project, the Provincial Government has decided to assign theseaspects of the proiect to the Secretarv of Agriculture of the Province whowill designate a project director for the purpose. The activities of theproiect director at Chandnur will begin and will be concurrent with theconstruction of the major project works as carried out by EPWAPDA. Onthe auricultural side the program will eonnint prlImrily nf (al fieldInglow-lift pumps and (b) preparing farmers for the cropping changes theymust make in their farming prartirAo and croppIng pattarna as the nrn4erteffects a gradual reduction and stabilization of water levels, within thenro1ect and (el in mak4ne AvA41*hbl tha ACr'ietltl1PAl inputm (includ4ng fr-m

1i The ADC experience has indicated that a 2-cusec low-lift pump cannotbe expected to irrigate more than about 50 acres or 25 acres per cusec.This is only about a third of the area (75 acres per cusec) that shouldnormally be expected. The water wastage indicated by these figures isunaveidable and is due to the small fragmented landholdings that pre-vail and that prevent rational layout of field channels. This waterwastage is however less critical than under the gravity system of dis-tribution previously considered (para. 2.07-211) for the reason thatthe waste-water will not escape from the project area but will berecirculated by the low-lift pumps. Land consolidation to permit amore rational layout of field channels is not practicable at present.In the long run however, as the value of irrigation is understood bythe farmers, they will gradually realize that consolidation wouldenable them to irrigate and cultivate more efficiently. An evolution-ary process can be expected including gradual replacement of some ofthe portable pumps by fixed installations of larger capacity servinga larger area (this would involve some gravity canals and/or pipedsystems) with resulting economies of scale.

credit) required to increase agricultural production. The developmentschedule fo: Chn dpur, which h aas-,ab ^f 75,nnn acres or s -what greater than the Halda unit, calls for fielding of low-lift pumps

(5 p requireal) iJn %ree years. Ex-erience haz ShOw4. that: , W ss of. the

big benefit from winter-season irrigation, farmers are eager to make use ofLgW-LLLLWII~I W.LIL~L WLI~A J.D av L~CW.& &A& UMWJ %I

4. & . AL . U%.. UiluW-lift pui-;ps wfflenn -'Luter Water ls# nvaabe4nzJz;.t>u-s :e

and/or drainage channels. A study of the organizational problem and theUeveLopmert -periud would ua .LU'Oa iUcluded i.14 Ule engilnering servi.s to bV plr-

vided (see para. 4.01).

Karnafuli Project -- Ichemati Unit

3.12 As proposed in the 1968 feasibility report this unit will havea gross area or 160,000 adu a net ar-ea ofL 11,U800 acres. I,LU l96, was

noted that 6,300 acres or a little more than half of the irrigable areawere already irrigated by low-lift pumps. Water supplies for thues pumps

have been made possible largely by two regulating structures already con-structed by EMAruDA. These structures a'lso prevent flooding from theKarnafuli River. The project area is still subject, however, to flooding

from the Ichamati River.

3.13 The local farmers are anxious to expand their successful irriga-tion and believe they have sufficient water to install additibnal low-liftpumps. Interest was expressed in a 100 cusec high level canal from theKarnafuli River similar to that proposed in the 1968 feasibility report.However, as an alternative, additional development of the 1Knals, as hasalready occurred, including utilization of the Ichamati River as an irriga-tion distributary would be considered. Groundwater would also be consi-dered. As a matter of fact, local residents have already made applicationto ADC for 40 tubewells.

3.14 The Ichamatl unit is much smaller than the Hasda unit and sincethe two units are near each other, the consultants to be engaged for theHalda unit could easily make required studies for the Ichamati unit.

Muhuri Project

3.15 The 1967 report described a project limited to flood preventionand drainage. There would be 92 miles of major embankments with an aver-age height of nine feet along the banks of the Muhuri and Selonia Rivers,and along the right bank of the Feni River. In addition, there would be56 miles of smaller embankments along some of the tributary streams.Channel improvements would eliminate bends in the Muhuri and Selonia Ri-vers so as to increase their carrying capacities. With these works, theMuhuri River would have a discharge capacity of 25,000 cusecs which cor-responds to a 10-year flood, which seems adequate under the conditionsorevailing. The 1967 report contains no discussion of the velocities inthe Muhuri and Selonia channels as related to their stability and theresulting maintenance problems and this needs review. The consultantsfelt that the lower 10 miles of the Muhuri River would not require em-

banking and that overflow from this portion of the river could be allowedto spill into a low-lying area. This feature also requires review as itshould be relatively easy with low embankments to carry most of the floodflow to the mouth of the Muhuri River.

3.16 It appears that an additional 2-mile long embankment is neededto form a closure between the existing right bank Selonia embankment andan existing coastal embankment. The cost of such a closure and whetherthis should be part of the Muhuri Project needs clarification. Furtherstudy of the drainage problem will also be needed, first with respect tothe low-lying area mentioned in the preceding paragraph and secondly withrespect to other low-lying areas that cannot be drained during high levelsin the main exit channels, namely the Muhuri and the Selonia. These streamsempty into the Bay of Bengal which is subject to a normal tidal range ofabout 8 feet. Drainage can be accomplished during the low part of thetidal cycle and it seems probable therefore that pumping for drainagewould not be economically iustified. In order to reach a conclusion, fur-ther knowledge is needed regarding the frequency and depth of floodingcaused by impoundment of drainage water during the hi8h nart of the tidalcycle.

3.17 The irrigation plan proposed in the 1967 report would provideLravitv irrlgat1on- utilizlng the limIted waters of the Muhuri River whichare sufficient only for an area of 8,700 acres in the higher, northernnortion of the nrn4er_t The nrnineIapd grAVitY avRtam in moreover tnworkable

because of high population density and small lanholdings as explained abovein connectIonn with the Karnaftl4 pron4Jeet.

3.18 iurfna wanter fvr.m rdl4nt-a.t na*a cpu,ld him trsnafear,A t the

Muhuri project area. This appears feasible in view of the flat terrainAnAuu t&ho va inr nurroi "a-tw A,.n4yinama ,hvia"~ *i. Aiia '#a4 1.…n. t serous .n.tur.l drain.ae -h-.nls. nre -- ------would be to obtain water from the Dakatia River which receives water at alltlmes from the Meghna (see Map). Water would be pum-ed from a po-4" soe-where east of Hajiganj, where the Dakatia has a wide navigable channel, intoa "lin.k caral" leadir.g----- to the Little FRiver_ ThUe link canal ol follwthe course of a natural channel which would be deepened and embanked. Theexisting, large r-egulatIg structure (Kaz4rhat Re-@_a-or D= __ ap at_\ t* he

mouth of the Little Feni River would be raised a few feet which would enabletransfe:" of twatw-r, via exis:lr.ig r.atural ca.esto. .he6 Selor.ia °ivr,- -hich_

is part of the Muhuri River system.

3.19 To lift water from the Dakatia River into the link canal wouldrequire a pumping stats LL ; .o provLdUe n.avigation requlirements th'Ue sL-ub- Ustructure for the pumping station would incorporate a navigation lock.ObJviJLous'ly, such'i a pumpiLng statULonI milght ultlumately hs-ve to serV-e part of

the Comilla-Noakhali project area (800,000 gross acres) as well as partof the Litle Feni project area whLiose extent-is i8 outL 2L6,000 grous acres.

Since irrigation of either of those two large areas would be accomplishedgradually, t[- pumlping statUlGu-l and ponUsibb.y Ualso thle lJlnkw cnna6 l cou.Lud be

constructed in stages. In the case of the Little Feni project area it

would appear that the initial stage of development would entail enlarge-mont nf tho area alveadv 4rra4te1d by mpans of lnw-lift p"mns; th4s nowcovers about 5,000 acres in the zone just upstream of the Kazirhat Regu-lator. This structure, comr1=V in 16Q5 by, PADflA prir4 ly to p

tidal inundation and saline water intrusion, has served to impound sur-fae^ f10-, oft-Ltl F enli&vo ^ V4,vm_ v.^4%4ham^ mnal1A 4"_4-#e4- G..

_ _ b __ *. __ z _ s I- * -- Much I -_ _* 5WI, %.w

the extent of the 5,000 acres mentioned; if more water became available,as by d -:sion f:.om T-the D4akaLa - -- ----paa of t4-- .l*ua slow-liftJ

pumping would be possible. As part of the study of the Dakatia-Muhuriwater .transfer, a prelimi,Mary reccor,r.issarce wouldCIA bU e carri=ed out tLo

determine the probable phasing of development in both the Comilla-NoakhaliaLd Lttle Feni proJeCt areaLs a.nd the resul36tLaCLnt U-WLA olLf - rUL.ULd LUor

water. l/

3.20 Engineers of EPWAPDA acquainted with local conditions thoughtL',e u at'La-'r'uLur'. water transfer would bue feasibLU.Le and surveys ol thlenatural channels were begun in November 1969 to provide basic topographicdata Tor prelmlinary design aid cs08 estimating.

n 11 - n t - 1 -- _ - -… - - --- ~-- - anr - - --3.21 Within the munuri project area between exevaL1fio 25 ana i5 tnereare 57,000 acres of land. The corresponding net area,is about 42,000 acres.Water transferred as outlined in the preceding paragraphs, could be dis-tributed by means of low-lift pumps which would obtain their supply fromthe drainage system.

3.22 Previous investigations inuicate that tne prospecte of develop-ing ground water seem favorable on the east side of the Muhuri valley butmucn less so on the west side. Tubewells would provide a desirable meansof obtaining water for irrigation of higher lands above elevation 25.Groundwyater investigations would be part of the future feasibility studyrevisions as described below.

3.23 As in the Halda unit of the Karnafuli project, navigation couldprovide an important additional benefit to the Muhuri project.

Status of Project Preparation

3.24 The 1968 feasibility report on the Halda unit of the Karnafuliproject contains much useful information, particularly with regard to theflood control embankments which constitute the ost costly project fea-ture. The costs of other major project works (major drainage channels,pumping stations, regulators and navigation locks) will require revisiontaking into account the alternative approaches and designs described above.

,t Terecnra'sc w-ou'd be- fo'loe ':e or b- C-41ail: -&-ud'es.f LUC C.IA&.COL. Wi.U%A.I% IJC ~WLP.&ww..A a.U " WY &W.CCC.&..&U WLI4uJ.

of appropriate portions of these two project areas. It is thoughtHhtRnar.clng of- - portion. oftc cos: o s_6 ch st-udies -o' possib'y

L.LIC.L L.LUOX%.IL U8.IL WA. CS YUL UJ.L1 &i "ML %-O W4. Ci.. . U %&&WLO %-VVJ6%&. FW a.uJ.Ly

be included in the future construction loans or credits for theL\r-ur'u.l.L CUUFo IlL%UPL%A.L proJects.

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Of these the most important revision concerns the method of irrigationdistribution within the project area (see para 3.08). The report on theHalda unit is also inadequate with respect to project organization (seepara 3.11) and project repayment. Regarding the latter, an analysis isneeded to establish repayment capacity, water charges and the time periodover which they can be progressively imposed. 1/

3.25 Revision of the Halda feasibility report, as described in thepreceding paragraph, would be needed before appraisal by the Associationof a construction credit would be undertaken. On the other hand, the re-latively advanced status of project preparation as well as the favorablejudgment reached by the mission regarding economic justification (seepara 5.03 below) indicate that the Halda project should proceed withoutdelay to the stage of tendering and final design.

3.26 With respect to the Ichamati unit, extensive revision of thefeasibility report will be required as has been indicated above. Tender-ing and final design for this small project should be deferred until aftercompletion of the revised feasibility study.

3.27 The 1967 feasibilitY study for the Muhuri proiect, whileextensive and of great value, is insufficient to enable either an appraisalof the proiect for construction or an authorization to proceed with ten-dering and final design. The status of preparation of the Muhuri projecthas thus been iudged by the mission to be less favorable than for theHalda unit of the Karnafuli project. Basically, this is because there aremore outstanding problems. As described nrevioualv. these involve: (a)revision of the flood prevention scheme; (b) determination of a source ofwater for irrigation; and (el determination of the beat method of irrigationdistribution. In addition, as mentioned with respect to the Halda project,nrolect organfzatlon and nroJect renavment would need fu-rther Rtudv and

analysis.

Need for Engineering Services

3.28 By proceeding now with engineering for the Karnafuli project(Halda UnIt) under the prn4ect npnropel for TIA fin.Acin.g, it- untld bepossible to initiate construction by December 1971. The various activi-

1/ In the case of the Chandpur project, these subjects were studied ina preliminary manner by the consultants. The Province has agreed toprepare within 18 months a plan providing for recovery of operationand maintenance (O & M) costs of the major project works, estimatedat Rs 15 per acre. 0 & M of the low-lift pumps (including fuel),estimated at Rs 97 per acre, will be collected from farmers on ascale rising progressively to full value in 10 years. Recovery ofcapital costs are recognized to be more difficult; the Province hashowever agreed to prepare a plan for recovery of as much as practic-able of the capital cost. (See project agreement signed with IDA,Chandpur II Irrigation Project, May 15, 1970, Section 2.07.)

ties involved including tendering and preparation of final designs areshlo-woru diagrammatically 'li,J JUIrex 1. 'I' tendering 'Ls pOstpOn,ed until aftercompletion of the feasibility study revision about a year's delay wouldbe enLailedu if furuher postponed -- until aiLer detailed appraisal anugranting of a construction credit -- the delay would be two years.

3.29 In the case of the Muhuri project, because of the need to reviewcertain features of the flooa control scheme and investigate a source ofwater supply, a longer time would be necessary to conduct the revisionof the feasibility study. Tnis delay wouid, on the other hand, enabiea more efficient use of the consultants since they would concentrate duringthe tirst year on the revisions of tne Karnafuli project and tne water-transfer scheme, and during the second year on the revisions of the Muhuriproject. As indicated in Annex 1, work on the feasibility study revisionwould begin February 1971 and would be completed April 1972; an interimreport setting forth the principal dimensions of the major project workswould be issued August 1971 and would enable proceeding with preparationof tender documents and tinal design tor these works. since the outiookfor economic justification of the Muhuri project is favorable (see para5.04), it is reasonable to proceed in this manner and to incur the relative-ly minor expenditure involved (about US$600,000 or three-fourths of thatindicated in para 4.04). By proceeding with tendering concurrently withpreparation of the feasibility study revision it would be possible tostart construction of the project in December 1972. Again possibly asmuch as two years in start of construction would be gained by this scheme.

3.30 EPWAPDA has already started surveys of the drainage channelsof the Karnafuli project as well as the surveys of channels needed inconnection with the Dakatia-Muhuri water transfer. Additional topographicsurveys carried out by EPWAPDA would be needed for detailed planning ofon-farm works. These would be started at the beginning of the next con-struction season in December 1970 and continued over a period of severalyears as needed. An assurance that EPWAPDA will carry out these surveysin a timely manner would be obtained during negotiations.

IV. The EnaineerinR Credit

4.01 The engineering services to be financed in part by the proposedIDA credit would be mainlv (70%) for oreparation of tender documenta andfinal designs for an initial portion of the major works of the Halda unitof the Karnafuli nroiect and of the Muhuri protect. The next lareest nor-tion amounting to about 18% of the total would be for revision of theexistine feasibilitv studies. This would include the Muhuri nroieet andboth the Halda and Ichamati Units of the Karnafuli project. Tender docu-ments and final denians for the Ichamati Unit would not be covered bv theproposed Engineering Credit; their financing could be considered for in-clusion in a future eredit or loan for the eonatruetion of the MaTdA UTnit.

- 13 -

In conducting revisions of the feasibility studies there would be adequateconsideration of the subject of project organization and of repayment ca-pacity of the farmers. Finally, 12% of the credit would be for study ofthe Dakatia-Muhuri water transfer scheme.

4.02 Further details on the engineering services are in Annexes 1and 2. The tender documents would include only preliminary outlinedrawings and construction quantities as needed for construction contractsbased on unit prices. The nature of the work involved (earth embankmentsand heavy concrete structures for navigation locks and pumping stations)enables tendering to proceed on the basis of outline drawings rather thanon final design drawings. The consultants would proceed with the finaldesigns subsequent to tendering and these would be furnished to the suc-cessful bidder in time so that construction could start.

4.03 Detailed terms of reference for the consultants were prepared byEPWAPDA and a8treed by the Association. EPWAPDA informed the Associationregarding six firms from various countries to make proposals that it in-tended to invite -- listed in Annex 3 -- and the Association stated it hadno objection. The firm chosen would be required to enter into a jointventure with a Pakistani firm. choosing such a firm from among a list ofsix designated by EPWAPDA (see Annex 3). Whereas at first the bulk of thedesign work would be done in the home office of the selected exnatriatefirm, this would be gradually transferred to the Dacca office of the jointventure. EPWAPDA has extensive experience in the use of consultants;moreover, in monitoring the consultants, EPWAPDA would be supported by itsgeneral consultants (Acres; International of Canada) financed in partunder credit 136-PAK (see para 2.08). The contract between EPWAPDA andthe consultants as wli as key nersonnel to be assigned by the consultantswould be subject to the approval of the Association. The issuance of aletter of intent wherein it i8 Latly,tln tet thart alr-h a r-ntrag-t wnuld besigned within 90 days would be a condition of effectiveness of the proposedcredi t

Cost Estimate srnd Flr.ar.c4r.

4.04 the cost of the en.gineering servicea, ircluding contingencies,is eNtimated at US$4.63 million equivalent including foreign exchangecosts of US$2,400,000 (see Ar..e A 40r nAA4Pt4o%n1 details):

- 14-

raS (ehousaUuds uS$ (ehouaands) la o0 A o0

Foreign TotalExpen- Expen-

Local Foreign Total Local Foreign Total diture diture

1. KarnafuliirrigationProject

a. Revise feasi-bilicy study i,100 950 2,050 230 200 430 8 9

b. Tender docu-ments and finaldesign 2,000 4,270 6,220 420 900 1,320 38 29

2. Muhuri IrrigationProject

a. Revise feasi-bility study 1,200 950 2,050 230 200 430 8 9

b. Tender docu-ments and finaldesign 4,800 3,800 8,600 1,010 800 1,810 33 39

3. Dakatia-Muhuri WaterTransfer Study 1,600 1,430 3,030 340 300 640 13 14

Totals 10,600 11,400 22,000 2,230 2,400 4,630 100 100

4.05 The firms International Engineering Co. (IECO) and Rahman andAssociates were invited for negotiations and the estimated cost of consul-tant services are based on prices negotiated May 1969 between EPWAPDA andthese consultants. Contingency allowances are necessary because of pastexperience with EPWAPDA projects and because the contract has not yet beenreviewed by the Association.

Disbursements

4.06 The credit would finance the foreign exchange cost of expendituresfor the engineering services. The period of disbursement would be fromJuly 1970 until December 1972 in accordance with the following schedule:

1970/71 1971/72 1972/73 Total

Foreign currencyUS$ (thousands) 1000 900 500 2400

Lncal curreneyPRs (thousands) 4200 4200 2200 10600

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4.07 The term for the Association credit would be ten years includinga two-year grace period. The borrower would be the Central Governmentwhich would make the proceeds available to the Provincial Government underthe same terms. The Provincial Government in turn would make the proceedsavailable to EPWAPDA. The local currency required would be provided bythe Provincial Government. In the event that either IDA or the Bank shouldsubsequently assist in financing of the Karnafuli or Muhuri projects, re-financing of all or portions of the proposed engineering credit from theproceeds of such subsequent credit or loan could be considered.

V. Justification of the Proposed Engineering Credit

5.01 The enRineering credit is justified in order to provide foreignexpertise needed for final design and for revision of the existing feasi-bility studies and thus advance the start of construction of the Karnafuliand Muhuri projects by at least one and possibly two years.

5.02 With respect to the location at which the final designs willbe carried out. it should be noted as explained in greater detail in Annex2, that whereas in the first year final design work would be performedoutside Pakistan at the home office of the selected firm, in the secondand third years it would be performed in Pakistan to the maximum extentpracticable. The firms listed in Part 1 Annex 3 have been recuired tojoin with a Pakistani firm (listed in Part 2 of Annex 3) in providing theservices needed.

5.03 Although an annraisal of the KarnAfuli and Muhurl mrnioets eotuldnot take place until after the revised feasibility studies have been com-pleted. the Bank's East Pakistan Agriculture and Water Develnpment Grouphas made an initial determination of the economic justification of theKarnafuli nrnoJet (HaldAn init). As nMMAvr4eAd in Annexv 5 thiR Adter-mination has been based on a comparison of costs and benefits of KarnafulinroJect with thnoA of the rhanAntpr proJAc-t A co1nnfQuti,on ci'it £ i

was recently appraised by an IDA mission. This comparison indicates thatcnota on a p ar acre hbna4 na asnolwS (t n a..naaa (In r u-vee

CharApui-r VaV,nr. 14

Cost per not 4rr48ateA acea 1720 1420

Coat ----e--- ----flooding 920 590

= JV -

Benefits as described in Annex 5 would be substantially higher at Karnafuli.Slnce Cot;s would be lower and benefits h,.gher, it iL concluded that arna-full would have a rate of return substantially higher than for Chandpur,-walch had boeen eat…imated at 18.5X. 1

e W .LA, iU _ _L. -_ .L_ - _ .- -5v.0 With respectL tu hea munurl projec;t economic jusLtiication isless clear than for the Karnafuli project. As regards benefits, the avail-sbl.e iurw-rsatiuu iuin esUu hLZaL nehes woulu be relatively nign in ene nunuriproject area. Of the gross area of 101,000 acres, 72,500 are now cultivated.Tne present average yield of the ukharif rice crop per eultivated acre. iSabout the same as at Chandpur while the area cultivated during the rabiseason is proportionately less. w"lt complete water control it thus ap-pears that the benefits per acre at Muhuri would be substantially higherthan at Chandpur.

J.05.'2 On tne cost side, while information is deficient at present withregard to the three primary elements -- flood control, drainage and irri-gation, in view of similarity of terrain and size of iand-hoidings, itseems reasonable to expect that costs per acre will be similar to that ofthe Karnafuli project. Tnese costs do not however inciude the cost ofimporting water via the Dakatia-Muhuri water transfer scheme. Since how-ever tnis scheme would ultimately benefit substantial areas in the Comilla-Noakhali and Little Feni areas, the allocation chargeable to Muhuri wouldnot have a serious effect on the rate of return of the Muhuri project par-ticularly if the development of these areas proceeds as expected (para 3.19).In general, therefore, the outlook appears favorable as regards the economicjustification of the Muhuri project. Substantiation of this preliminaryconclusion should be possible at the time that the interim report is issuedin August 1971.

VI. Recommendations

6.01 During negotiations assurances were obtained that EPWAPDA willcarry out topographic surveys in a timely manner (para 3.30).

6.02 A condition of effectiveness of the credit will be the issuanceof a letter of intent stipulating that a contract between EPWAPDA and theconsultants according to terms approved by the Association will be signedwithin 90 days (para 4.03).

6.03 With the indicated assurances, the proposed project constitutesa suitable basis for an Association credit of U.S. dollars $2,400,000 fora term of ten years including a two-year grace period.

10 -. -pria reor - o -uau -hW -2X. "--cver, an a-djust-.El mLL ent LaLJ. LCrUL L LUL reduces ur t s to- 18.5X; se Anj 5.at

menit for sunk costs reduces this to 18.5%; see Annex 5.

KARNAFULI AND MUHURI IRRIGATION PROJECTS (EAST IPAKIISTANN)PROGRAM OF PIRE-IINVESiTMEINT ACTIVIITIES

1969 1970 1971 1972 1973 1974 1975- -T-7r~ 7---~TTT -T- -- T7-rT- -VT T l FFT- -T-TF FTTT- ~ 1-T-1 ff7TYT- -'T-rhF TT1YT - -

SELECTION OF CONSULTING FIPW m m

KARNAFIJU PROJECT

SURVEYS OF DRAINAGECHANNELS (BY EPWAPDA)

, INTERIM RE:PORT

FEASIBILITY STUDY REVISIONTENDER DOCUMIENTS CONSTRUCTION DRAWINGS

MAJOR WORKS (STAGE I) - DESIGN I *E_ _

TENDERING n 4 AWARD r CON3STRUCTION

MAJOR WORKS (STAGE I) - CONSTRUCTION E I 1 m _1

MUHURI PROJECT

SURVEYS OF DRAINAGECHANNELS (BY EPWAPDA) I

INTE RIM REPI ORT

FEASIBILITY STUDY REVISION rIMR-

TENDER DDCUMENTS CONSTRUCTICON DRAWINGSMAJOR WORKS (STAGE I) - DESIGN I=- 1 ~ i m

TENDEFRING *t AWAR1I rCoN3sTRUCTION

MAJOR WORKS (STAGE I) - CONSTRIJOTON * R i i n _ - _

I)AKATIA - MUHURIWATER TRANSFER

SURVEYS OF CHANNELS (BY EPWAPDA) _

PLANNING REPORT I _

LITTLE FENI OR COMILLA-NOAKIAU PROJECT

SURVEYS OF DRAINAGECHANNELS (BY EPWAPDA) I _ *

DECISICIN TO PROCEED+1 TINTERIM RE_pORT

FEASIBILITY STUDY I_ _

TENiDER DC CONSlRUCTION DRAWINGSMAJOR WORKS (STAGE I) - DESIGN C _MN 0 * _-

TEN1DERING 1 *AWARD r CONSTRUCTIOt

MAJOR WCRKS (STAGE 1) - CONSTRIUCTION * * _

By EPNAPDA ntil Junmt 1, 1970, there!Fter by the consulting fn. IBRD - 4576(3R)

ANNEX 2Pagea 1EAST PAKISTAN

ENGINEERING SERVICES FOR THE

KARNAFULI AND MUHURI IRRIGATION PROJECTS

OUTLINE OF TERMS OF REFERENCE'

1. Feasibility reports for the Halda and Ichamati units of theKarnafuli nroiect were comnleted in MNv 1968 and for the Muhuri prolectin January 1967 (para 3.02). Revisions of these reports are needed inorder to provide additionnal informati on wi th rAgard to

(paras 3.06 and 3.15);

(b) drainage facilities (paras 3.07 and 3.16);

(c) the method of irrigation distribution which would.,.ake -S 04e -A r.at-alZ arj.d CartificPial C dr.a=inago C,>n&a"Mels

supplemented by low-lift pumps (paras 3.08 and 3.15);

(d) use of the drainage/irrigation channels for navigation(para 3.10' dd3.3)

(e) project, orga-lu.zUati0n. speCia.Ly W1ItL retgardU b

cultural inputs (paras 3.11 and 4.01); and

(f) repayment capacity of the farmers and proposals withregard to water cnarges and the time period over wmicnthey can be progressively imposed (paras 3.24 and 3.27).

2. In addition to the above items, two additional items need studyfor the Nuhuri project as follows:

(a) Revision of the flood-control scheme for thelower 10-mile portion (para 3.15); and

(b) Development of a plan for importation of waterfor irrigation from outside the project area(paras 3.18 and 3.20).

3. Regarding the latter item, preliminary study would be made ofa scheme to transfer water from the Dakatia River to the Muhuri Rivervia the Little Feni River. Ultimately such a water transfer might

1/ Detailed termn of reference were prepared by EPTAFD andagreed by IDIA (para 4.03).

. %kLX 2

Page 2

permit the irrigation of as much as half a million acres located inadjacent areas known as "Comilla-Noakhali" and '1 Little Feni" and itwould be necessary to carry out reconnaissances, prepare preliminarydesigns, and establish the proper order of staged development of theworks needed to accomplish the water transfer. Feasibility studiesof the Comilla-Noakhali and Little Feni project areas would be carriedout at a later stage and would not be included in the scope of work ofthe engineering services financed by the currently proposed credit.

4. Most of the engineering services (71%) financed by the Creditwould be for preparation of tender documents and final designs for theKarnafuli and Muhuri projects. The tender documents would include onlypreliminary outline drawings and construction quantities as needed forconstruction contracts based on unit prices. The nature of the majorproject works (earth embankments and heavy concrete structures for navi-gation locks and pumoing stations) enables tendering to proceed on thebasis of outline drawings rather than final design drawings. The consult-ants would proceed with the final designs subseauent to tendering andthese would be furnished to the successful bidder in time so that constru-Ction could start.

In the ease of the Karnafnli nroiect. work on the tender docu-ments would start about October 1970, shortly after issuance of an"interim rpnort" which wonl d he for the purpose of establishing theapproximate principal dimensions of the major project works. Preparationof the tender documents wnoul1d prone.%A eonwbeurently with +he feasibilitvstudy revision and completion of both would be expected by April orMa-y 1Q71 - The frinal desi Ao,Aii1 .. 'pceed si4..e1,r there2fter; hnA SO

doing, it should be possible to start construction December 1971.

6. In the case of the Muhuri project, the feasibility study.V ' dW%4J. A W-"', ULk.L. aLb M_; 1J7.2J. nru& J.-u&eJ. report e 4-

preparation of tender documents to proceed would be issued August 1971_and1 4--A- terde dow,rt w db SSuG about -t-rch 'I972.J V- A.a dsin

would proceed immediately thereafter and this would enable construction

7. In_ bot cases,-c fnal design fiane udr heCedtwolI'*I1 UV uo Udrr L1=.L UqWj.LgI10 L.U c1J;XutU WSUIU'Z VIstt; U.-'U_LU WVU.L-

cover only portions of the major works of the project,to the extentILC±LLWU. JRi -1InUU.bL cu rction contractUs5 and Only up to U1. UdtU VIconstruction award (December 1971 in the case of Karnafuli and December1972 in the case of Muhuri), Tne foreign exchange costs of further finaldesign work would be included in subsequent construction credits, ifapproved.

8. Tne consultants would assist in the prequalification of tenderersand, following receipt of tenders, on or about June 1, 1971 for Karnafuliand April 1, 1972 for -ivuhuri, tne consultants would make analyses of the

Page 3

tenders witn appropriate adjustments so that a' are coQpa9Uble.t. LI

manufacturers' drawings for the equipment involved would be reviewedfor correctness.

9. In preparing the tender documents and fial designs, theconsultants would review all data on surveys, foundation and investiga-tions, soils, sample areas, and mLscellaneous items needed for tendering,final design and construction, and would define for EPWAPDA the workprogram necessary to service the construction program.

ANNEX 3

EAST PAKISTAN

ENGINEERING SERVICES FOR THE

KARNAFULI AND MMHURI IRRIGATION PROJECTS

CONSULTING FIRMS

PART 1 - T.TRP OF 'Mq TJTITTk n MAT]PJ PnPROqAT.

International Engineering Co., San Francisco, Calif., USA

Leedshill-De Leuw!, San Francisco, Calif., USA

Sanyu Consultants International, Inc., Nagoya, Japan

Sir Malcolm MacDonald & Partners, London, England

Sogreah, Grenoble, France

Tippetts-Abbett-McCarthy-Stratton, New York, N.Y., USA

PART 2 - LIST OF PAKISTANI FIRMS WITH WHICH ABOVE FIRMS MAY JOIN

Associated Architects & Engineers Ltd.

Engineering Consultants and Associates

Consociates International Ltd.

Engineering Consultants Inc. (Pak.)

Rahman and Associates

SARM Associates

ANNEX 4

EAST PAKISTAN

ENGINEERING SERVICES FOR THE

KARNAFULI AND MUHURI IRRIGATION PROJECTS

COST ESTIMATES

A. Foreign Currency Cost (ICO)

1. Resident staff, 200 man-months $ 420,0002. Visiting staff, 23 " 40,0003. Home-office staff, 230 " 350,000

Subtotal 810,000

4. Overhead 480,0005. Fixed fee 380,000

Subtotal 1,670,000

6. Direct costVehicles and household equipment $ 80,000Office, soil survey and

groundwater explorationequipment 140,000

Miscellaneous 210.000 430.000

Subtotal 2,100,000

ContingenciesAR 300.000

T O T AT. L 2J1^00.00

B. Local rurencYv GOsts (RahmAn & AssOGiattAS)

1. Rnhman PayrolI 1, 298 Q9n-n_mOnthS RS l,q70,0002. Overhead 940,0003.~ ~~n+ ret +os 1.70n0004. Fee 500,00

Rahman Subtotal 3,480,000

5. IECO Local Costs 5,960,000

Subtotal Rs 9,440,000

Contingencies 160,000

T O'T A L Rs 10,600,000

equivalent)

ANNEX 5Page 1

EAST PAKISTAN

ENGINEERING SERVICES FOR THE

KARNAFULI AND MUHURI IRRIGATION PROJECTS

flMW 'Tl~ A?%rr% nnomcL (r AlTA'1Tslf7~¶lEJ*±JLi#LJA AO m 'UJ STS] 'J OF KAMNA1. ULT PROJEiCL

1. In this annex the benefits and costs of the Karnafuli project(Halda Unit) are compared with those for the Cnandpur project. T'ne latterproject was recently appraised by an IDA mission and the rate of returnestimated by the mission was 22%. An adjustment to allow for sunk costsreduces this to 18.5%. M/

2. Area factors are as follows (in acres):

Chandpur Karnafuli

Gross area 140,000 131,500Cultivated area (at present) 96,000 85,000Net area irrigated (future 75,000 55,000

3. A study of the present cropping patterns of the two areasindicates that the average present kharif yields per cultivated acre arethe equivalent of 19 maunds at Chandpur and 20 maunds at Karnafuli. Futureyields with water control (flood control, drainage and irrigation) are pro-jected at 50 maunds in about five-sixth of the net irrigated area in bothcaees. The non-irrigated area is expected to have a small increase inyield -- to 25 maunds -- attributable to flood control and improved prac-tices but without irrigation.

4. The rabi crop at Karnafuli is now only 13,400 acres whereas atChandpur it is 4.000 acres. The proportionately higher rabi area atChandpur, almost all of which depends on residual soil moisture (ratherthan low-lift pumping) is presumably due to later natural flooding andthe smaller percentage of transplanted aman (harvested later than broad-cast aman) as compared with Karnafuli.

5. Summarizing. the kharif benefit per net irrigated acre atKarnafuli should be about the same as at Chandpur while the rabi benefitshould be substantially greater-

1/ The Chandpur appraisal mision, in its nalysis, included Rs 25.2million for the salvage value of materials, equipment, land andbuildings. There was an additional sunk cost of Rs 33.9 million(for completed construction having no salvage value), which ifincluded in the c-ost stream, reduces the rate of return from. 22%to 18.5%.

ANNE!;X 5Page 2

6. Costs are in Table 1. On a per acre basis, these compareas follows (rupees per acre):

Chandpur Karnafuli

Cost per net irrigated acre 1,720 1,420

Cost per gross acre protectedfrom flooding 920 590

7. Since benefits per net irrigated acre at Karnafuli arehigher while costs are about 20% less and since benefits in tile non-irrigated part of Karnafuli are also proportionately higher,Y therate of return for the Karnafuli project should be substantially higherthan for Chandpur.

/ The non-irrigated area would cover 21,000 acres (15.) atChandpur and 30,000 acres (23%/ at Karnafuli; thus the benefit^..1v kq nroportionately higher in the latter case.

Table 1

Costs in Millions of Rupees"JFarna.-CL-" ;-

Chandpur Halda Unit

Embankments incl. land 44 241/Regulators and pumping stations -

Alloc. to flood2 5 ,ontrol 6 71/:: :: other.a 22 i3

Drainage, major channels only 8 10Y

Sub-total, physical work 80 54

Engineeringv 26YJ 871Overhead of EFwAPDA 4 2

Sub-total, .mjo rk 110 64~

To_-lift v.l1ivwr8 / 19 ° .....T" --- r-P- 8 -'

Total 129 78

1/ The 1968 report contains estimates as follows:

Field cost Rs. 16.4 millionContingencies 5% .8 It

Sub-total 17.2 "

.g1 neering dand `nvsigvo Ls 1 26 !

Land, 980 ac. at Rs. 4,500 4.4

Sub-total 24.2 "

Overhead 2--/2% o.6

Total 24.8 H

Most of the field cost would be for embankments for which a unit costof Rs. 1.3 per cubic yard was used. The cost seems reasonable exceptfor contingencies which should be about 15%. With this adjustment thecost would be Rs. 26.8 million. If engineering is omitted the costwould be Rs. 24 million.

/ Irrigation, drainage and navigation.

2/ To maintain elevation 7 within the drainage system (see para 3.08, maintext) during the dry season a primary pumping station would be needed.It seeMs, vracticuabl to place such a stabiqu within a barrier um -whi-chcould be located at or near the Chittagong/Kaptai highway crossing ofthe Halda River. In addition. a navization lock could be Dlaced here.Such a structure should cost roughly the same as the Char Baghadi regu-lator, navigation lock and pumping station at Chandpur (includes 6-200cusec ¶1.s,, Rs. 15 mi:I 4 nn iliius hou e 13- or. a-l"o- *Pl- forloodgates or alternatively for a "balloon-type" dam made of rubberized nylonfabric, as considered in the 1968 report (page IV-18).

v aThis is twice the cost estimated in the 1968 report.

2/ Includes feasibility studies field surveys, final design, supervisionof construction and establisLment of permanent project organization.

P/ Past as well as future work.

7J/ 'G%,ue- -- I, only. As-,vd-. 'leaof cost of4 phsia wo.ks oaD 'houlLLULVVi'J.L £VAJL.Ly. AIOOLUAIiU L,I U.L UUD Li . .L.J UZ ±11± LLUU.

be conservative considering that the same consultants would be used forthe Muhuri and Karnafuli proiects (see text!.

Klllb EAST PAKISTANDil; C A amchanch

0 IKARtJAFULI AlqD hiUHLIRIb1l.yonganj 0Murac IRRIGATION PROJECTS

ldw-or Feasibility situdy revisiDn and final design

udiu)ndi Feasibility study revisio.Chok no Reconncrssa,�ce in connection withn 0 Dakatia-Mulhuri watef transfer

I LOL A Project unditr development

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L srFEBRUARY 197C [BRD-2800