Project Name Community-Managed Irrigated Agriculture Sector Project
Project Number 33209-013
Country / Economy Nepal
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2102-NEP: Community-Managed Irrigated Agriculture Sector Project
Asian Development Fund US$ 20.00 million
Loan 8222-NEP: Community-Managed Irrigated Agriculture Sector Project
OPEC Fund for International Development US$ 7.00 million
Loan 3124-NEP: Community-Managed Irrigated Agriculture Sector - Additional Financing
Asian Development Fund US$ 30.00 million
Loan 8288-NEP: Community-Managed Irrigated Agriculture Sector - Additional Financing
OPEC Fund for International Development US$ 30.00 million
Loan: Community-Managed Irrigated Agriculture Sector Project
Kuwait Fund for Arab Economic Development US$ 17.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural production - Irrigation

Gender Effective gender mainstreaming
Description The Project aims to improve the agriculture productivity and sustainability of existing small and medium farmer-managed irrigation systems suffering from low productivity and poverty in Central and Eastern Development Regions thereby enhancing the livelihoods of the poor. This is achieved through (i) providing improved means for WUA empowerment, irrigation infrastructure, agriculture extension, and targeted livelihood enhancement to build the human capital of the poor; and (ii) strengthening policies, plans institutions and their operations for more responsive service delivery and sustainable impacts.
Project Rationale and Linkage to Country/Regional Strategy

In Nepal, irrigation is an essential input to improve agriculture productivity, which remains the lowest among the neighboring countries. The 20-year Agriculture Perspective Plan (APP) that was launched in 1995 with Asian Development Bank (ADB) assistance has prioritized irrigation as the foundation of a modern production system, with emphasis on improving the performance of traditional surface water FMIS, which account for 55% of the total irrigated area and 23% of net cultivated area of 2.6 million ha. Many FMIS suffer from low productivity that is barely above subsistence level, due to unreliable diversion and high distribution loss and maintenance costs caused by fragile and rudimentary intake and distribution structures. FMIS offer good scope for enhancing productivity, expanding the command area at relatively low cost, and short lead time, and building on the existing WUA capacities through a participatory approach.

ADB has assisted in improving FMIS since 1987 including the recently completed Second Irrigation Sector Project. While project performance has been positive, with many FMIS yielding reasonable economic benefits to smallholders, there is still scope for improvement in delivering maximum benefits particularly to the poor in the community, and enhancing WUA capacity to become more active agents that can drive dynamic agriculture development within the locality. There is need to further improve the project design by ensuring sufficient attention, time, and resources for nonstructural activities such as empowering WUAs and supporting agriculture and livelihood enhancement, and sound governance of public sector institutions for monitoring and quality control. Essential changes in the management system and behavior of public institutions to become genuine service-oriented

facilitators are also called for. Improving FMIS productivity is still a priority in the agriculture sector, with 0.3 million ha currently requiring urgent rehabilitation. However, a new approach is needed following the Government's 2002 Poverty Reduction Strategy Paper (PRSP) that committed itself to (i) reorientation of APP to strengthen its integrated and coordinated market-oriented approach, its pro-poor focus with targeting, and support for decentralization; and (ii) reforms of sector institutions for sound governance. There is a pressing need to operate the improved service delivery mechanisms for FMIS renovation that fully address these new sector needs and the lessons of previous assistance, while pursuing policy and institutional reforms that provide a sound basis for their operation.

The Project is designed to address these challenges and is needed to renovate the remaining subsistence FMIS to attain their maximum sustainable benefits, particularly those for the poor and the disadvantaged, with sound sector governance. The sector loan modality is adopted in view of the Government's sound policy and plan framework in the sector such as APP, PRSP, and the 2003 Irrigation Policy; and its progressively improving capacity to support FMIS renovation, building on the existing WUAs.

ADB's Country Strategy and Program for Nepal 2004 prioritizes investments in rural areas that generate quick benefits and support the inclusive process of development. In view of large FMIS areas still suffering from low productivity and poverty, and of the scope for promoting minor irrigation that targets the poor in nonirrigated areas, the CSP recognized that community-based irrigation is one of the strategic pillars for supporting rural development. As to FMIS, a pressing need now is to define and operate improved delivery mechanisms for their renovation, incorporating the lessons and addressing the new challenges identified in the Government's Poverty Reduction Strategy Paper, including decentralization, private sector and NGO engagement, and community participation. This objective should be pursued with necessary policy and institutional reforms that provide a sound basis for their operation. Addressing these tasks is consistent with ADB?s water policy, and will contribute to attaining maximum benefits from FMIS renovation with further empowered WUAs, and improved governance of public sector institutions.

Impact

National food security is increased.

Project Outcome
Description of Outcome

Participating farmers increase agricultural production.

Progress Toward Outcome

Loan 2102 CMIASP: The Project is implementing 111 ISPs (target 101) covering a total area of 15,677 ha (target 13,700 ha) serving 178,285 beneficiaries (target 115,600). The average increase in cropping intensity is 34.7% (target 40%); cereal crops production increased by 73,869 ton (target 16,700 ton) and potato production increased by 16,780 ton (target 10,800 ton) with an overall annual increase in crop production by 90,649 ton (target 40,000 ton), hence exceeding all the project outcome targets. The Project has envisaged achieving the outcome targets after 3 years of project operation. Thus, it is expected that the results by the end of 2017 will further consolidate the project achievements. The gross margin per farm family has increased by 117% (target 70%). The Project has supported for permanent employment of 1.2 million days in agriculture (target 1.3 million days) and temporary employment of 1.2 million days in construction work. The annual family income of landless laborers has increased by 360% to NRs7,188 (target NRs2,000).All the WUAs of 111 ISPs are registered and trained by the Project in leadership, management, agriculture extension, and sustainable operation of the ISPs. Women representation in WUA is 33% in 40% ISPs and 30% in overall (target 33%), of which 6% have assumed leadership position. The beneficiary farmers (members of WUA) have contributed 4.52% of the construction cost in average (target 3%). The project strengthened capacity of IA through various training and capacity development program, because of which they have been able to implement 2 to 5 ISPs at a time in each irrigation division offices (target 4 ISPs).

Loan 3124- CMIASP-AF:The Project planned to implement 163 Farmers Managed Irrigation Systems (FMIS) and 6 Agency Managed Irrigation Systems (AMIS) covering a total area of 26,566 hectares out of which 163 FMIS and all six AMIS are completed- irrigating about 26,464 ha of land. As per the PBME survey, crop yield has been increased by 38.9% (irrespective of crops). Cropping intensity has increased to 224.5%. The overall cropping intensity increased by 63.4% (66.6 %-Hill & 57.5% Terai) compared to pre-project situation. Seed replacement rate increased to 18.13% from base 13.0%.So far, a total of 166 subprojects have been completed including AMISs. One subproject was terminated, and two subprojects could not be completed as designed. As of 31 March 2022, overall physical progress of the project is about 99% against an elapsed period of 91%. All parameters indicate that all the desired outcomes by the project will be achieved.All the WUAs of 166 ISPs are registered and trained by the Project in leadership, management, agriculture extension, water management and sustainable operation of the ISPs. The WUAs are inclusive and have equitable representation. The overall representation of women is 38.06%. All WRIDD buildings in districts and a working area in DOWRI was constructed/rehabilitated by the project.

Implementation Progress
Description of Project Outputs

4 - National institutions are strengthened for effective irrigation service delivery.

2 - WUAs independently manage irrigation systems in a socially inclusive and equitable

manner.

3 - Farmers adopt improved agricultural practices.

1 - Farmers in subproject areas have improved irrigation infrastructure.

Status of Implementation Progress (Outputs, Activities, and Issues)

- The ICWM activities are being implemented in 22 FMISs. Rest are under plan. The Agri-engineers who are working with WUA and assisting them in preparing system specific canal O&M plan.

- Infrastructure improvement works have been completed in 111 ISPs under CMIASP and 166 ISPs under AF providing improved irrigation services to 41,621 ha. (15,677 ha from CMIASP and 25,464 ha under CMIASP-AF).

- In all 277 ISPs and AMIS, WUAs were formed and duly registered with government. The preliminary assessment of WUA shows that most of the are active with resource mobilization and ISF collection in regular basis, permanent WUA staff member were responsible for managing equitable water distribution, recurrent maintenance in regular basis. WUAs were socially inclusive and included representation from Dalits and vulnerable communities, women (at least 33%). They were provided training on system O&M, financial management, and leadership.

- WUA executive committees have been noted fairly inclusive with representation from the head, middle and tail of the canal system. The representation stands at 26% from head reach, 41% from the middle and 33% from the tail reach of the system.

- Representation of women in the committee is fairly inclusive which is 38%. 75% of WUAs have one or more woman holding key leadership position. Similarly, the representation of Janajati stands around 37% of total executives whereas 7% of the executives are from the Dalits community.

- The analysis of the O&M practices adopted by the WUAs revealed that majority of WUAs (150 out of 166) have functional and effective system of O&M and are raising ISF on need basic. The 100 WUAs are regularly raising ISF with an average rate of NRs. 1400/ha./year. The labor mobilization for recurrent maintenance of 150 WUAs showed that average mobilization for maintenance requirement around 228-person day/year. Similarly, 61 WUAs have appointed paid staff for canal operation and are paying in average NRs.55,664 per year/staff.

- The ICWM activities are being implemented in 22 FMISs. Rest are under plan. The Agri-engineers who are working with WUA and assisting them in preparing system specific canal O&M plan.

- The initial result indicates that 18.13% seed replacement rate has been achieved in the completed subprojects. The indication so far is the Project will achieve the target.

- One participant from each subproject have been provided with leader farmer training of which 42.7% are women. They are certified farmers.

- 57% of the total trainees of commodity-based agriculture extension program are women.

- 111 ISPs completed under CMIASP (6 partially completed) on time and within budget; and 169 ISPs under CMIASP-AF have been awarded and construction of 166 ISPs have been completed. Three projects could not be completed due to various reasons. Overall physical progress of the project is 99%.

- DOI association organizers worked with WUAs of all 111 ISPs under CMIASP to mobilize farmers. Their service has remained same in the Batch I, II and III ISPs under CMIASP-AF. Both availability of AO in the division offices and the quality of their service requires improvement.

- Irrigation Policy was approved by the government on 2013. IWRM policy was drafted. DOI mission and vision document prepared. DOI new organizational restructuring completed. Irrigation act is drafted, approved by the Cabinet and is currently under review by the Parliament. Government is also drafting an integrated water resource act.

Geographical Location Bara, Bhaktapur, Bhojpur, Central Region, Chitawan, Dhading, Dhankuta, Dhanusa, Dolakha, Eastern Region, Harinmari, Ilam, Jhapa, Kabhre Palanchok, Kathmandu District, Khotang, Lalitpur, Mahottari, Makwanpur, Morang, Nuwakot, Okhaldhunga, Panchthar, Parsa, Ramechhap, Rasuwa, Rautahat, Sankhuwasabha, Saptari, Sarlahi, Sindhuli, Sindhupalchok, Siraha, Solukhumbu, Sunsari, Talkharka, Taplejung, Terhathum, Udayapur
Safeguard Categories
Environment B
Involuntary Resettlement
Indigenous Peoples
Summary of Environmental and Social Aspects
Environmental Aspects

Initial environmental examination (IEE) reports of all 111 subprojects were prepared with environment management plan and approved by ADB.

IEE for CMIASP-AF subprojects are also prepared along with environment management plans (EMP) for all 166 ISPs. The EMP provisions were included in the contract agreement for works. Construction Monitoring Committee of WUAs and IDDs/IDSDs staff carried supervision of construction works and along with that the EMP compliance monitoring. Given the small size and nature of subprojects, environmental impacts were minor and readily mitigated.

Involuntary Resettlement No or minimal strip acquisitions were required for rehabilitating the canals. A resettlement framework (RF) was prepared to address the limited land acquisition requirement in the subprojects. Construction activities did not start until the resettlement plan (RP, containing an inventory of loss, the number of affected men and women and agreed upon compensation, whether voluntary/involuntary) were signed by the affected persons (APs). Preparation of the RP was part of subproject preparation, and their implementation was carried out in close consultation with and participation of APs and WUA members, at times with acceptable third party witness (generally earlier VDCs and village municipalities/municipalities). Landowners voluntarily contributed their land for construction of canal structures. Based on the negligible impact, Due Diligence Report were prepared instead of Resettlement Plan. A standard format was prepared for the Due Diligence Report. Total 16 short resettlement plan and 95 numbers of Due Diligence Report were prepared in CMIASP. WUAs have functioned as grievance redress committees, and no major grievances were recorded in the project. Similar arrangements were adopted in CMIASP-AF.
Indigenous Peoples Indigenous people's issues were found insignificant in the subprojects, where the beneficiary group comprised of ethnic local majority but a national minority. Hence, preparing indigenous peoples specific actions was not deemed necessary, as they were actually the beneficiaries of the project. Livelihood enhancement plan (LEP) targeted women, landless, poor, vulnerable and dalit households to provide them income generation training. No such adverse impacts were incurred to IPs by CMIASP-AF which rather supported in their livelihood improvements due to available irrigation water and increased agricultural yield.
Stakeholder Communication, Participation, and Consultation
During Project Design During the project preparatory stage of both CMIASP and AF, the Government with the assistance of the consultants undertook initial consultations in a few sample subproject areas, and presented resettlement framework (RF) translated into the local language. The feedback and observations made at the stakeholders' meetings were used in preparing the entitlement matrix and discussing the project benefits for affected people. The consultations revealed that, while households were concerned that they would lose a certain level of income due to the acquisition of the strip of land, they opined that the loss would be far outweighed by the benefits from increased reliability and availability of irrigation water that would enhance crop productivity and intensity. Secondly, the work belonged to only rehabilitation of existing structures. Intakes in many ISPs were, although new replacing temporary earth and logs made water diversion structures. Considering benefits, all households were ready to voluntarily contribute their land. It was also confirmed that the female heads of vulnerable households would be given priority access to subproject agriculture and livelihood enhancement programs and employment opportunities. Further consultation and finalization of the entitlement matrix and resettlement plan will continue prior to the approval of the subproject's detailed design, including the written agreements between the landowner and the WUA, with a "no coercion" clause and witnessed by a neutral party in case of voluntary land contribution.
During Project Implementation The project promoted participatory approaches by mobilizing communities through the organization of 111 WUAs of CMIASP and 166 WUAs of CMIAP-AF (total 277) representative farmers. WUAs were from head, middle and tail reaches, had dalit and vulnerable members, and ensured at least 33% women members. Charter of the WUAs were prepared, they were duly registered in the government, and WUA executive committees were elected by the farmers. The construction, design, extension, and training activities were carried out in close consultation with the WUA and farmers. The Project ensured WUA capacity is sufficiently strengthened and provided capacity-building trainings through project and their own national federation (NIFWUAN). The Project supported in establishment of steering committee, which included representatives of the ministries and departments of all concerned line agencies. Special consideration was given to gender mainstreaming and environmental mitigation in all activities. Department of Agriculture implemented agriculture development activities by forming agriculture groups, providing lead farmer training, distributing mini hand tillers, and providing training on commercial agriculture farming. Time to time media trips were carried out and news on project activities were published in newspaper and TVs.
Business Opportunities
Consulting Services A total of 25 person-months of international consultant (team leader, individual under 1 package), and 690 person-months of domestic consultant firm (1 package), individual consultants (5 packages) and consulting firms for miscellaneous support services (2 packages).
Procurement All ADB-financed and administered procurement will follow ADB's Guidelines for Procurement. Civil works (estimated at $60 million in total) will be undertaken following NCB in each of some 161 FMIS and 6 AMIS. An estimated 12 packages for goods (vehicles, equipment, power-mini-tillers, motorcycles and office equipment). Similarly, 1 package for DOWRI building and around 40 shopping packages will be for building rehabilitation work.
Responsible ADB Officer Singh, Deepak Bahadur
Responsible ADB Department Sectors Group
Responsible ADB Division Agriculture, Food, Nature, and Rural Development Sector Office (SG-AFNR)
Executing Agencies
Ministry of Irrigation
Timetable
Concept Clearance 01 Mar 2002
Fact Finding 09 Sep 2003 to 01 Oct 2003
MRM 16 Feb 2004
Approval 14 Dec 2004
Last Review Mission -
PDS Creation Date 29 Nov 2006
Last PDS Update 29 Jun 2022

Loan 2102-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 Nov 2004 23 Dec 2005 13 Jan 2006 30 Sep 2012 30 Sep 2014 22 Sep 2015
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 29.40 Cumulative Contract Awards
ADB 20.00 21 Jul 2023 16.12 0.00 100%
Counterpart 9.40 Cumulative Disbursements
Cofinancing 0.00 21 Jul 2023 16.12 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

Loan 3124-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Apr 2014 16 May 2014 03 Jun 2014 31 Jan 2021 31 Dec 2022 26 Apr 2023
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 32.20 Cumulative Contract Awards
ADB 30.00 21 Jul 2023 24.29 0.00 100%
Counterpart 2.20 Cumulative Disbursements
Cofinancing 0.00 21 Jul 2023 24.29 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

Loan 8222-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Dec 2004 21 Dec 2005 22 May 2006 31 Dec 2009 30 Sep 2014 25 May 2016
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 7.00 Cumulative Contract Awards
ADB 0.00 21 Jul 2023 0.00 5.43 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 7.00 21 Jul 2023 0.00 5.43 100%

Loan 8288-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Sep 2014 05 Feb 2015 20 Apr 2016 30 Sep 2019 30 Jun 2022 09 Jan 2023
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 30.00 Cumulative Contract Awards
ADB 0.00 21 Jul 2023 0.00 24.36 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 30.00 21 Jul 2023 0.00 24.36 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory
 
This page was generated from /projects/33209-013/main on 02 February 2024

Source URL: https://www.adb.org/projects/33209-013/main