Nepal : Mechanized Irrigation Innovation Project

Sovereign Project | 52130-001

The project will provide long-term sustainable solutions to increase year-round access to irrigation water in about 22,400 hectares (ha) of two districts of Madhesh Province in the Terai by constructing a large-scale network of about 500 tube wells with dedicated electricity distribution networks. The management, operation, and maintenance (MOM) of the tube well irrigation schemes will be contracted to a third-party operator, using a design-build-operate (DBO) contracting modality. On-demand irrigation services will be provided to about 22,000 farm households using a prepaid irrigation system.

Project Details

  • Project Officer
    L'Hostis, Marie
    Sectors Group
    Request for information
  • Country/Economy
    Nepal
  • Sector
    • Agriculture, natural resources and rural development
Project Name Mechanized Irrigation Innovation Project
Project Number 52130-001
Country / Economy Nepal
Project Status Proposed
Project Type / Modality of Assistance Grant
Loan
Technical Assistance
Source of Funding / Amount
Grant: Mechanized Irrigation Innovation Project
Asian Development Fund US$ 15.00 million
Loan: Mechanized Irrigation Innovation Project
Concessional ordinary capital resources lending US$ 100.00 million
TA: Mechanized Irrigation Innovation Project
Technical Assistance Special Fund US$ 750,000.00
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP5: Promoting rural development and food security
OP6: Strengthening governance and institutional capacity
Sector / Subsector

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

Energy / Electricity transmission and distribution

Gender Effective gender mainstreaming
Description The project will provide long-term sustainable solutions to increase year-round access to irrigation water in about 22,400 hectares (ha) of two districts of Madhesh Province in the Terai by constructing a large-scale network of about 500 tube wells with dedicated electricity distribution networks. The management, operation, and maintenance (MOM) of the tube well irrigation schemes will be contracted to a third-party operator, using a design-build-operate (DBO) contracting modality. On-demand irrigation services will be provided to about 22,000 farm households using a prepaid irrigation system.
Project Rationale and Linkage to Country/Regional Strategy

Agriculture accounts for about 26% of Nepal's gross domestic product. In 2018, about 55% of the working age population was engaged in agriculture, forestry and fishing, of which 62% are women and 38% are men, either directly or indirectly in producing, processing and marketing of agriculture products. Over the past decade, Nepal's agriculture sector growth has stagnated at an average rate of 3% annually, mainly due to limited access to irrigation systems that provide reliable access to water. Climate change is now threatening Nepal's water and food security and is projected to reduce Nepal's economy by up to 4% unless about $2.4 billion in adaptation costs are invested by 2030. Low agricultural productivity, exacerbated by climate change, directly contributes to consistent poverty incidence throughout rural Nepal. Madhesh Province is one of the provinces with the highest poverty rate of 28%.

Nepal's total cultivated area is about 2.6 million hectares (ha) but only 1.4 million ha is irrigated. Most irrigation systems, about 1.2 ha, are in the Terai plains and operate only to provide supplementary irrigation during the monsoon season for paddy cultivation. Less than 40% of irrigation systems provide perennial irrigation services. Climate change is expected to reduce rainfall reliability and hence increase irrigation demand. Droughts have been the most severe hazard and has contributed to 39% of agriculture-related losses caused by weather-related events between 1971 and 2007 (footnote 3). The expansion of irrigated areas and provision of reliable irrigation services during the dry season is constrained due to the high cost of investment in storage dams, inter-basin water transfers, and surface irrigation systems. Alternatively, year-round irrigation in the Terai area can be achieved by tapping available and renewable groundwater through efficient and sustainable mechanized pumped irrigation.

Impact

Agricultural production and productivity increased (Energy, Water Resources and Irrigation Sector's current status and roadmap for future, White paper 2018)

Outcome

Farmer's productivity and incomes increased in the project area

Outputs

Sustainable groundwater irrigation systems established

Climate resilient and diversified cropping practices adopted

Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects The project will not cause serious unpleasant and diverse environmental impacts in the target locations. There were analyses and reports that served as reference materials to acquire preliminary understandings of groundwater resources and its interactions with the surface environment. In fact, the amount of water withdrawal through the high lift irrigation schemes were estimated insignificant compared to high river discharge and limited downstream users. The project locations have no environmentally-sensitive areas and the impacts are mostly momentary disturbance during construction. Due diligence will be carried out during project preparation.
Involuntary Resettlement Small portions of private land will be required for pumping stations. The project will construct 500 deep tube well schemes, covering an area of 22,400 hectares (ha). Each scheme will involve construction of (i) a head tank and pump house, occupying 5x5 m of private land and, (ii) a network of buried pipes and outlets. Each pumping irrigation scheme involves the construction of: (i) one high lift pump and pump house, occupying 3x5 m of private land, (ii) one storage tank; occupying 6x5 m of private land, and (iii) buried pipelines and outlets connecting the storage tank to the field. Small portions of private land will be required to accommodate the pumping stations and storage tanks. This irrigation infrastructure is ideally placed in the corner of adjoining paddocks so that farmers can access water to irrigate their crops. In such cases, the ADB project team proposes that farmers be given the option to voluntarily donate small portion of land to the project, provided that the farmer: (i) directly benefits from the project, (ii) can exercise power of choice, (iii) the donated land is less than 5% of the farmer's holding, (iv) the farmer's decision to donate is made free of coercion. The full extent of physical and economic losses associated with the project, including to non-title holders that may live on government land, will be assessed during project preparation.
Indigenous Peoples A desk-based demographic analysis highlights the presence of indigenous peoples (IP) in the project areas, however, the extent to which IPs are impacted by the project is unknown. IP studies from the region indicate that the Terai IPs (the Tharu and others) derive their livelihood from non-farming activities and thus may not be directly or indirectly impacted. A poverty and social assessment will be conducted during project preparation to determine whether the project triggers ADB's Indigenous Peoples policy.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services The executing agency will administer consulting activities.
Procurement The executing agency will administer procurement activities.
Responsible ADB Officer L'Hostis, Marie
Responsible ADB Department Sectors Group
Responsible ADB Division Agriculture, Food, Nature, and Rural Development Sector Office (SG-AFNR)
Executing Agencies
Ministry of Energy, Water Resources and Irrigation
Timetable
Concept Clearance 19 Sep 2022
Fact Finding 08 Apr 2024 to 19 Apr 2024
MRM -
Approval -
Last Review Mission -
Last PDS Update 19 Sep 2022

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.

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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
Mechanized Irrigation Innovation Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Aug 2022

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.

None currently available.


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 52130-NEP: Mechanized Irrigation Innovation Project [Civil-01/GWIS/MIIP/2079-80] Invitation for prequalification Closed
DWRI/MIIP/CS-01/2079-80 Firm - Consulting Closed
52130-NEP: Mechanized Irrigation Innovation Project Other Notice Closed
NEP: Mechanized Irrigation Innovation Project Other Notice Active

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.