Bangladesh: Irrigation Management Improvement Project

Sovereign Project | 45207-002

ADB is helping Bangladesh tap the full potential of large-scale irrigation schemes. The project will modernize the Muhuri-Kahua Irrigation Project in Chittagong and finance the feasibility study and detailed design for the upgrade of Ganges-Kobadak and Teesta irrigation projects in Khulna and Rangpur. It will help establish performance-based irrigation management and agriculture support services.

Project Details

  • Project Officer
    Srivastava, Pushkar
    South Asia Department
    Request for information
  • Country/Economy
    Bangladesh
  • Modality
    • Loan
  • Sector
    • Agriculture, natural resources and rural development
Project Name Irrigation Management Improvement Project
Project Number 45207-002
Country / Economy Bangladesh
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3135-BAN: Irrigation Management Improvement Project
Asian Development Fund US$ 46.00 million
Loan 4120-BAN: Irrigation Management Improvement Project - Additional Financing
Concessional ordinary capital resources lending US$ 13.50 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural drainage - Agricultural production - Irrigation - Rural flood protection

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project is designed to realize the full production potential of large-scale irrigation schemes in Bangladesh. It will address the recurrent lack of sustainable management, operation, and maintenance (MOM) and increase water productivity by transferring MOM schemes to private operators and introducing innovative infrastructure modernization. The project will focus on modernizing the Muhuri Irrigation Project (MIP) in Chittagong division. It will also finance a feasibility study and detailed design for modernizing the Ganges Kobadak Irrigation Project in Khulna division and the Teesta Irrigation Project in Rangpur division.
Project Rationale and Linkage to Country/Regional Strategy

The primary sources of water in Bangladesh are local rainfall (about 250 cubic kilometers (km3) annually) and transboundary inflows (about 1,000 km3 annually), derived mainly from the Brahmaputra, Ganges, and Meghna rivers. Bangladesh occupies only 8% of the total drainage area of these rivers but is located at their downstream end. The result is an abundant excess of surface water during the summer monsoon months and water shortfalls during the winter dry months. The impossibility of developing dam facilities prevents flow regulation throughout the year. Despite being scarce, water is not well managed. Minimal attention is given to water use efficiency and equitable allocation. Many farmers rely on groundwater to supplement the limited and irregular surface water supplies. However, in many areas, the use of groundwater is significantly constrained by arsenic contamination and aquifer limitations. Consequently, the minimum flows required to meet total dry season demands are less than what is available from surface and groundwater. Competition for water is increasing between sectors including agriculture, domestic and industrial water use, navigation, fisheries, and conservation of natural eco-habitats. Possible changes in temperature and rainfall patterns due to global warming may also modify crop-water requirements and water availability, and adversely widen the current gap between supply and demand.

Performance of irrigated agriculture and large irrigation schemes. In 2010, 31.5% of the population was living below the poverty line. Although agriculture's share of gross domestic product has declined, it is the primary economic sector in rural areas and provides 63% of rural employment. Bangladesh has a net cultivable area of around 8 million hectares (ha). In FY2012, about 5.3 million ha were irrigated; total rice production was 33.5 million tons with 56% being produced during the dry season. Irrigated agriculture productivity remains chronically low; since FY2004 paddy yields have averaged 3.6 tons/ha. The low land productivity is attributable to unreliable irrigation supply; inadequate agriculture extension services; and poor access to farm inputs, markets, and agricultural credit services. Around 550,000 ha or 11% of the total irrigated area is under large irrigation schemes. However, only 46% of this area is currently irrigated during the dry season.

The lack of efficient and sustainable MOM continues to impact the productivity of large irrigation schemes. In 2012, MOM cost recovery from project beneficiaries of the Muhuri, Ganges- Kobadak, and Teesta irrigation schemes averaged 24%: Muhuri 63%, Teesta 18%, and Ganges Kobadak 0.26%. As a consequence, the schemes' infrastructure is degraded and needs rehabilitation and modernization. Other factors include inadequate government financing, lack of beneficiary empowerment and engagement in MOM, and limited capacity of public agencies resulting in weak service delivery. Specific issues in MIP are (i) inadequate budget for system MOM; (ii) lack of distinction between annual, periodic, or emergency maintenance of a system; and (iii) poor cost recovery from water management groups.

Since 2000 substantial efforts have been made to improve irrigation MOM through the introduction of participatory irrigation management, which has been generally successful on small and medium-sized schemes in Bangladesh but yielded limited results for large schemes. The variable performance of participatory irrigation management in improving irrigation MOM is internationally documented and private sector participation through public private partnership (PPP) is seen as an alternative approach. It has demonstrated promising results in a few developing countries such as Brazil, Ethiopia, and Morocco but is still to be developed in Asia. In 2009, the Asian Development Bank (ADB) provided technical assistance (TA) to the Bangladesh Water Development Board (BWDB) to examine alternative approaches of service delivery agreements and management arrangements including PPP for sustainable irrigation MOM in large irrigation schemes. The TA proposed a conceptual framework for engaging a third party operator to address the shortcomings of the MIP's MOM. It established the basis for the social and economic feasibility of the approach and confirmed farmers' willingness to pay.

The National Water Policy, adopted in 1999, sets out a comprehensive framework for the water sector in general and for large surface water irrigation schemes, including a strategic vision comprising private irrigation MOM through leasing, concession, or management contracts. The government has established policy, legal, institutional, and planning frameworks for the water sector, which provide a suitable environment for developing necessary sector reforms. The Water Act, promulgated in May 2013, revised and consolidated existing laws that govern the ownership, utilization, and financial management of water.

The Sixth Five-Year Plan, 2011 to 2015 recognizes the need to increase agricultural productivity, foster crop diversification, and boost public spending on rural infrastructure. The plan also presents a strategic direction for medium- and large-scale surface water irrigation. At its highest level, the strategy focuses on modernization and improved management of existing irrigation systems and expansion of irrigation areas. To reduce public costs in sustainably operating these schemes and to improve delivery service, the strategy encourages the use of PPP wherever appropriate. As part of an overall investment program for the water sector, the government has approved an investment plan to rehabilitate and modernize all large surface water irrigation schemes at an estimated total cost of $745 million. The project will support the modernization of the MIP's infrastructure and MOM, including transferring MOM to the private sector. The project will finance preparation of a modernization strategy, including feasibility studies and detailed designs, for the Ganges -Kobadak and Teesta irrigation projects.

MIP construction was completed in 1986. The design enabled dry season irrigation as well as supplemental wet season irrigation by constructing the Feni Closure Dam and Regulator to create a reservoir downstream of the confluence of the Feni, Muhuri, and Kalidash- Pahalia rivers. The backwater from the barrage enters the natural khals (channels) and canal network by gravity. From there it was to be lifted by about 800 low-lift diesel pumps to irrigate the fields. The project was to increase the dry season rice area from about 6,000 ha to 20,000 ha. Initially, farmers experienced major improvements in production and were able to cultivate much larger areas with rice; however, siltation of the reservoir and khals due to lack of maintenance and reduced runoff in the river has reduced the benefits over the years. The area irrigated in the dry season decreased to 11,300 ha. The increased cost of diesel fuel combined with low pump efficiency and decrease in the rice price contributed to discouraging farmers from cultivating. Opportunities to substantially increase water use efficiency and reduce pumping cost through innovative design modernization and improved MOM were identified during the project preparatory TA and will be supported by the project.

The project is consistent with ADB's Strategy 2020 and country partnership strategy for Bangladesh, 2011 to 2015 by reinforcing core areas of operations (such as infrastructure and water resources management) and investing in irrigation infrastructure modernization.

Impact High growth of agriculture in Bangladesh sustained (Government of Bangladesh's Eighth Five-Year Plan)
Project Outcome
Description of Outcome Productivity and sustainability of the Muhuri Irrigation Project increased
Progress Toward Outcome About 66 low lift pump schemes (LLPs) were operated in last dry season, irrigating 500 hectares (ha) and irrigation charges were collected from farmers. In demonstration plots, the average yield of irrigated winter paddy (Boro) was about 5 tons/ha. The number of LLPs and irrigated areas are likely to increase significantly in the next two years.
Implementation Progress
Description of Project Outputs

Irrigation management and agriculture support services improved

Irrigation system infrastructure rehabilitated and modernized.

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

1. Contracting of a C-IMO through a 5-year performance-based design, supervision and management contract was completed on 18-Jan-2016 and is scheduled to end on 30-Jun-2022. The preparation of the long-term public private partnership (PPP) lease contract to recruit a M-IMO for the second phase of the project is ongoing. PMDC has prepared the draft PPP framework for M-IMO, which will be finalized based on recommendations of the recently engaged independent panel of experts' (IPOE). Efficient irrigation management with 100% cost recovery would be assessed towards the end of the project, but Tk. 12 lakh were collected for electricity charges from the 66 LLP schemes operated and 500 ha irrigated this year. The project completed 35 training sessions on more productive irrigated agriculture that benefited 1,391 farmers, including 286 female farmers.

2. Under rehabilitation and modernization of MIP, about 17.75 km of coastal embankment was repaired, 373.00 km of canals were re-excavated, and one barrage was rehabilitated. Till date, about 81 LLPs schemes covering 1,830 ha with buried pipelines, pumphouse, header tanks, tele smart card-based prepaid metering systems, and pump sets have been installed and its command areas modernized. Full time pump-operators (no women) were also engaged for successfully operating the LLP schemes. Besides, works are ongoing and about 592 pump-houses and 580 header tanks have been constructed, 332 km uPVC buried pipe has been laid, pumps have been installed in 15 schemes, and 160 schemes are ready for getting electrical supply.

3. The PMU and PIU have been established, detailed designs for MIP civil works have been completed and all contracts have been procured. Feasibility studies for GKIP and TBIP modernization have been submitted. Institutional support, capacity and awareness building of BWDB and WMOs to successfully administer and support contracts and project performance monitoring system (PPMS) development, have been completed. A PPP Officer has been appointed from the Bangladesh water Development Board to support the project. The project is meeting its contract award and disbursement targets.

Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project is categorized B for environment and an initial environmental examination was prepared in accordance with SPS. The negative impacts are typical to any construction activities involving earth works which are being mitigated through adoption of measures described in the environmental management plan. Consultations were undertaken with affected stakeholders and a suitable grievance redress mechanism has been established to resolve any project related grievances. The latest semi-annual environmental monitoring reports (SEMR) were prepared and disclosed on time. There are some improvements in the implementation performance of safeguard such as (i) more than 10,000 saplings were planted against a target of 7,500 saplings under the project as a compensatory tree plantation; (ii) the IEE report for the electrical substation was prepared, which has already been approved by ADB, and (iii) locational clearance certificate for the electrical substation has been obtained.
Involuntary Resettlement The Involuntary Resettlement category for this project has been updated to B. The project initially did not anticipate any resettlement impacts since the irrigation pumps had been installed in a voluntary arrangement with the pump owners. The project also kept provision for willing purchase of land to avoid involuntary resettlement. Currently, land acquisition is unavoidable for one subproject to install a substation to generate electricity for the pumps. For this component, 40 decimals of barren land has been acquired. . Accordingly, a resettlement plan was prepared and disclosed in December 2020. Land acquisition for this substation is complete and the site has already been handed over to contractor for the construction works.
Indigenous Peoples The project is categorized as C. There are no indigenous peoples as defined for operational purposes by the SPS in MIP.
Stakeholder Communication, Participation, and Consultation
During Project Design ADB maintains close dialogue with the government and other stakeholders to ensure commitment remains and the project communication campaign keeps farmers and local politicians engaged.
During Project Implementation Participation is an important aspect of the project. Public awareness programs for gender, social, and infrastructure subproject related measures are implemented. The Stakeholders Communication Strategy implementation engage and inform relevant IMIP stakeholders and sectors with timely, accurate, and comprehensive information shared among stakeholders. Such information sharing helps to build consensus and ensure continuous stakeholder support throughout the Project. The stakeholder Engagement and Communication Strategy (SE&C) is to significantly increase stakeholder and community awareness of the Project strategy, activities and outputs in order to improve stakeholder engagement and to develop greater community support. The EA is meeting with water management groups on concerns regarding their participation in civil woks in khal excavations. Workshops are conducted in upazilas to increase awareness on the project. Trainings on productive irrigated agriculture for farmers are being carried out.
Business Opportunities
Consulting Services

Consultant selection and engagement were carried out in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). In view of the lack of experience of the Bangladesh Water Development Board (BWDB) with performance-based management contracts and the need to ensure expeditious mobilization, the government requested ADB to recruit the project management and design consultant (PMDC) and the C-IMO. BWDB was responsible for negotiating and signing the contract with the PMDC and C-IMO, issuing the notice to proceed, and supervising their services. The PMDC and IMO recruitment were adopted with a 90:10 quality-cost ratio since a high level of expertise is essential to design performance-based irrigation management approaches for the Ganges-Kobadak and Teesta irrigation projects and to establish a strong and sustainable management organization for the MIP. BWDB, with support from the PMDC, is monitoring the C-IMO's performance against the milestones.

For the MIP, BWDB recruited the private consulting consortium as the C-IMO through competitive selection for 5-year irrigation management contract agreement. The C-IMO is responsible for (i) the delivery of efficient service and revenue collection to recover the cost for MOM, (ii) construction supervision of MIP civil works, (iii) participatory design of level 3 system modernization, and (iv) development of pilot agricultural demonstrations and income generating activities. It is envisaged that after 5 years, the management phase-irrigation management operator (M-IMO) will be recruited through a 15-year lease contract to maintain the MOM levels established during the 5-year first stage. The contract will be awarded through a competitive tender based on (i) a fixed fee for the lease with bidders presenting a financial offer for the water charge, or (ii) a predetermined water charge with bidders presenting a financial offer for the lease. After 15 years, the contract will be retendered.

Procurement All procurement of goods and works were undertaken in accordance with ADB's Procurement Guidelines. Procurement packages for civil works were done by nine packages.
Responsible ADB Officer Srivastava, Pushkar
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission
Executing Agencies
Bangladesh Water Development Board
Mr. M. S. Miyan
3 DIT Extension Avenue
Hoque Chamber, Motijheel Commercial Area
Dhaka, Bangladesh
Timetable
Concept Clearance 12 Sep 2012
Fact Finding 21 Jul 2013 to 05 Aug 2013
MRM 22 Nov 2013
Approval 30 Jun 2014
Last Review Mission -
Last PDS Update 26 Sep 2021

Loan 3135-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Jun 2014 14 Aug 2014 16 Sep 2014 31 Dec 2020 31 Dec 2023 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 58.00 Cumulative Contract Awards
ADB 46.00 17 Jun 2022 38.25 0.00 92%
Counterpart 12.00 Cumulative Disbursements
Cofinancing 0.00 17 Jun 2022 37.62 0.00 91%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

Loan 4120-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Sep 2021 23 Dec 2021 20 Jan 2022 31 Dec 2023 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 14.63 Cumulative Contract Awards
ADB 13.50 17 Jun 2022 8.70 0.00 64%
Counterpart 1.13 Cumulative Disbursements
Cofinancing 0.00 17 Jun 2022 0.00 0.00 0%

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Irrigation Management Improvement Project: Audited Project Financial Statements (July 2020-June 2021) Audited Project Financial Statements Dec 2021
Irrigation Management Improvement Project: Procurement Plan Procurement Plans Jul 2021
Irrigation Management Improvement Project: Audited Project Financial Statements (July 2019-June 2020) Audited Project Financial Statements Dec 2020
Amendment to the Project Agreement for Loan 3138-BAN and Grant 0396-BAN: Flood and Riverbank Erosion Risk Management Investment Program - Project 1 Project/Program Agreements Dec 2020
Irrigation Management Improvement Project: Audited Project Financial Statements (July 2018-June 2019) Audited Project Financial Statements Dec 2019
Irrigation Management Improvement Project: Audited Project Financial Statements (July 2017-June 2018) Audited Project Financial Statements Dec 2018
Irrigation Management Improvement Project: Audited Project Financial Statements (July 2016-June 2017) Audited Project Financial Statements Dec 2017
Amendment to the Loan Agreement for Loan 3135-BAN: Irrigation Management Improvement Project Loan Agreement (Special Operations) Jun 2017
Irrigation Management Improvement Project: Audited Project Financial Statements (July 2015-June 2016) Audited Project Financial Statements Jan 2017
Irrigation Management Improvement Project: Audited Project Financial Statements (July 2014-June 2015) Audited Project Financial Statements Dec 2015
সেচ ব্যবস্থাপনা উন্নয়ন প্রকল্প : প্রকল্প তথ্যপত্র Translated PDS Oct 2014
Loan Agreement (Special Operations) for Loan 3135-BAN: Irrigation Management Improvement Project Loan Agreement (Special Operations) Aug 2014
Project Agreement for Loan 3135-BAN: Irrigation Management Improvement Project Project/Program Agreements Aug 2014
Irrigation Management Improvement Project Reports and Recommendations of the President Jun 2014
Irrigation Management Improvement Project Project/Program Administration Manual Jun 2014
Irrigation Management Improvement Project Gender Action Plans Jun 2014

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Irrigation Management Improvement Project: Environmental Monitoring Report (July-December 2021) Environmental Monitoring Reports Apr 2022
Irrigation Management Improvement Project: Social Monitoring Report (July-December 2021) Social Monitoring Reports Jan 2022
Irrigation Management Improvement Project: Environmental Monitoring Report (January-June 2021) Environmental Monitoring Reports Aug 2021
Irrigation Management Improvement Project: Initial Environmental Examination Initial Environmental Examination Jun 2021
Irrigation Management Improvement Project: Social Monitoring Report (July-December 2020) Social Monitoring Reports Dec 2020
Irrigation Management Improvement Project: Environmental Monitoring Report (July-December 2020) Environmental Monitoring Reports Dec 2020
Irrigation Management Improvement Project: Resettlement Plan Resettlement Plans Dec 2020
Irrigation Management Improvement Project: Environmental Monitoring Report (January-June 2020) Environmental Monitoring Reports Jun 2020
Irrigation Management Improvement Project: Environmental Monitoring Report (July-December 2019) Environmental Monitoring Reports Dec 2019
Irrigation Management Improvement Project: Environmental Monitoring Report (January-June 2019) Environmental Monitoring Reports Jun 2019
Irrigation Management Improvement Project: Environmental Monitoring Report (July-December 2018) Environmental Monitoring Reports Dec 2018
Irrigation Management Improvement Project: Environmental Monitoring Report (January-June 2018) Environmental Monitoring Reports Jul 2018
Irrigation Management Improvement Project: Environmental Monitoring Report (July-December 2017 ) Environmental Monitoring Reports Feb 2018
Irrigation Management Improvement Project: Environmental Monitoring Report (January-June 2017) Environmental Monitoring Reports Nov 2017
Irrigation Management Improvement Project: Environmental Monitoring Report (July-December 2016) Environmental Monitoring Reports Jan 2017
Irrigation Management Improvement Project: Environmental Monitoring Report (July 2015-June 2016) Environmental Monitoring Reports Sep 2016
Irrigation Management Improvement Project Resettlement Frameworks Dec 2013

Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Loan No. 3135-BAN: Irrigation Management Improvement Project (IMIP) [CW-06 ICB] Invitation for Bids Closed 27 Sep 2018 26 Nov 2018
Loan No. 3135-BAN: Irrigation Management Improvement Project (IMIP) [CW-05 ICB] Invitation for Bids Closed 08 May 2018 23 Jul 2018
Loan No. 3135-BAN: Irrigation Management Improvement Project (IMIP) [CW-04] REBIDDING Invitation for Bids Closed 11 Apr 2018 23 May 2018
Loan No. 3135-BAN: Irrigation Management Improvement Project (IMIP) [CW-04] Invitation for Bids Closed 13 Dec 2017 11 Jan 2018
Loan No. 3135-BAN: Irrigation Management Improvement Project (IMIP) [CW9] Invitation for Bids Closed 19 Sep 2017 18 Oct 2017

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
CW-07: FARMER DISTRIBUTION PUMPS AND PREPAID METER SYSTEM-STAGE 4: 5 700 HA Loan 3135 08 Sep 2021 M/S LUDWIG PFEIFFER HOCH-UND TIEFBAU GMBH&CO. | LILIENTHALSTRASSE 33 34123 KASSEL GERMANY Bangladesh Water Development Board 4,836,239.51 4,367,999.88
CW - 5: FARMERS' DISTRIBUTION SYSTEM, STAGE 2: 5,4 00 HAC OF BURIED PIPE SYSTEMS, WITH PUMP AND TELE PREPAID METERS Loan 3135 30 Dec 2019 SA-KBL (JV) | 194/1, HOQUE PLAZA (1ST FLOOR), SSK ROAD FENI BANGLADESH Bangladesh Water Development Board 6,767,332.58 6,089,163.88
CW-4: TURNKEY CONTRACT FOR INDOOR TYPE SUBSTATION AND UPGRADING OF ELECTRICAL DISTRIBUTION SYSTEM FOR MUHURI IRRIGATION PROJECT Loan 3135 03 Dec 2018 ENERGYPAC ENGINEERING LIMITED | ENERGY CENTER 25, TEJGAON I/A, DHAKA-1208 BANGLADESH Bangladesh Water Development Board 5,299,231.20 5,296,801.57
CW-8A: Construction of New Water Control Structure S, Sluices; Rehabilitation of Structures, Sluices Loan 3135 27 Jun 2017 Dawn Corporation - Nahean Engineers & Builder | Takia Road, Syed Bari, Rampur, Feni, Bangladesh Bangladesh Water Development Board 1,385,553.00 1,233,449.00
Supply of Geo-Textile Bags at Kaitala in Pabna, Chauhali in Sirajganj, and Harirampur in Manikganj Dist. (G-04/2016-2017) Loan 3135 26 Jan 2017 Dhaka Metal | Trunk Road, Feni Bangladesh Bangladesh Water Development Board 162,959.09 144,768.67

Procurement Plan