Completion Report

Project Number: 26220 Loan Number: 1399 November 2006

Bangladesh: Command Area Development Project

CURRENCY EQUIVALENTS

Currency Unit – taka (Tk)

At Appraisal At Project Completion 30 September 1995 4 November 2003

Tk1.00 = $0.02484 $0.01715 $1.00 = Tk40.250 Tk58.300

ABBREVIATIONS

ADB – Asian Development Bank BME – benefit monitoring and evaluation BMEU – benefit monitoring and evaluation unit BWDB – Bangladesh Water Development Board CAD – command area development CADP – Command Area Development Project CMG – canal maintenance group DAE – Department of Agricultural Extension DLWU – Directorate of Land and Water Use DOF – Department of Fisheries DORP – Development Organization of Rural Poor EIRR – economic internal rate of return EMG – embankment maintenance group FY – financial year GPP – guidelines for peoples participation GPWM – guidelines for participatory water management HYV – high yielding variety IC – irrigation committee IPM – integrated pest management ISC – irrigation service charge JMC – joint management committee JMREMP – Jamuna-Meghna River Erosion Mitigation Project LCS – labor contracting society LGED – Local Government Engineering Department MDIP – Meghna-Dhonagoda Irrigation Project NGO – nongovernment organization O&M – operation and maintenance PCRM – Project Competion Review Mission PIRDP – Pabna Irrigation and Rural Development Project SDR – special drawing rights SSFD – small-scale fishery development WMA – water management association WMEO – water management extension officer WMF – water management federation WMG – water management group WMO – water management organizations WUA – water users' association WUO – water users' organizations TOT – training of trainers

GLOSSARY

Rabi – winter crops generally sown between October to February and harvested by June. Kharif – summer / Rainy season crops sown during April-July, and harvested by October Aus – variety of rice grown in rainfed areas during March–July Aman – variety of rice grown in rainfed areas during July–November Boro – season rice grown with irrigation during December–May Parishad – council in Bangla Khal – canal in Bangla Lakh – one hundred thousand in Bangla Atta – wheat in Bangla Pucca - metalled Kucha - earthened

NOTES

(i) The fiscal year (FY) of the Government of Bangladesh and its agencies ends on 30 June. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2000 ends on 30 June 2000.

(ii) In this report, "$" refers to US dollars.

CONTENTS

Page

BASIC DATA ii

MAPS vi

I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 2

A. Relevance of Design and Formulation 3 B. Project Outputs 6 C. Project Costs 6 D. Disbursements 7 E. Project Schedule 7 F. Implementation Arrangements 7 G. Conditions and Covenants 7 H. Related Technical Assistance (Consulting Services) 8 I. Consultant Recruitment and Procurement 8 J. Performance of Consultants, Contractors, and Suppliers 9 K. Performance of the Borrower and the Executing Agency 9 L. Performance of the Asian Development Bank 10

III. EVALUATION OF PERFORMANCE 10 A. Relevance 10 B. Effectiveness in Achieving Outcome 11

C. Efficiency in Achieving Outcome and Outputs 11 D. Preliminary Assessment of Sustainability 12 E. Environmental Impacts 12

IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 13 A. Overall Assessment 13 B. Lessons 13 C. Recommendations 14

APPENDIXES 1. Physical Progress of Works and Activities 16 2. Project Framework 19 3. Status of Water Management Organizations in 2005 25 4. Summary of Training Program Implemented under Part A 27 5. Brief Evaluation of Training in Part A 28 6. Male and Female Members in Beneficiary Groups 30 7. Summary of Target and Achievement of Irrigation Service Charge 31 8. Annual Irrigation in MDIP and PIRDP in the Years 2001–2005 32 9. Yield Increase Trend at the Subprojects for the Major Crops 33 10. Progress of Integrated Pest Management Program 34 11. Progress of Small-Scale Fishery Development 35 12. Summary of Benefits and Impacts 36 13. Status of Disbursements in SDR and $ 37 14. Implementation Schedule 38 15. Organization Setup 39

16. Status of Compliance with the Loan Covenants 40 17. List of Reports and Documents Prepared for CADP 55 18. Economic and Financial Analyses 58 19. Project Initial Socio-Cultural, and Other Impacts 65 20. Participatory Water Management 71

ii

BASIC DATA

A. Loan Identification

1. Country Bangladesh 2. Loan Number 1399 3. Project Title Command Area Development 4. Borrower People's Republic of Bangladesh 5. Implementing Agencies Bangladesh Water Development Board Department of Agricultural Extension Department of Fisheries 6. Amount of Loan SDR20.427 million 7. Project Completion Report Number 26220

B. Loan Data

1. Appraisal

- Date Started 12 July 1995

- Date Completed 27 July 1995

2. Loan Negotiations - Date Started 27 September 1995

- Date Completed 29 September 1995

3. Date of Board Approval 7 November 1995 4.

Date of Loan Agreement 28 November 1995

5. Date of Loan Effectiveness - In loan Agreement 26 February 1996 - Actual 26 January 1996 - Number of Extensions None

6. Closing Date - In Loan Agreement 30 June 2001 - Actual 30 June 2003 - Number of Extensions 2

7. Terms of Loan - Service Charge 1% - Interest 0% - Maturity 40 years - Grace Period 10 years

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8. Disbursements a. Dates

Initial Disbursement Final Disbursement Time Interval

6 June 1996 4 November 2003 77 months b. Amount ($‘000) Category

Original

Allocation

Last Revised

Allocation

Amount

Cancelled

Net Amount

Available

Amount

Disbursed

Undisbursed

Balance 01 18,600 17,145 0 17,145 17,326 (181) 02 2,135 1,960 0 1,960 1,906 54 03 1,561 1,432 0 1,432 1,426 6 04 3,858 3,584 0 3,584 3,610 (26) 05 2,585 2,380 0 2,380 2,360 60 06 143 135 0 135 127 8 07 805 719 0 719 718 1 08 313 296 0 296 - 296

Total 30,000 27,651a 27,651 27,433 218b

( ) = negative. 9. Local Costs (Financed) - Amount ($) 21,492,082 - Percent of Local Costs 72.9 - Percent of Total Cost 59.9 C. Project Data

1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 6.7 6.4 Local Currency Cost 43.4 29.5 Total 50.1 35.9

2. Financing Plan ($ million) Cost Appraisal Estimate Actual Implementation Costs Borrower Financed 15.1 8.5 ADB Financed 29.1 26.7 Beneficiaries 5.0 0.0 Total 49.2 35.2 IDC Costs ADB Financed 0.9 0.7 Total 50.1 35.9

ADB = Asian Development Bank, IDC = interest during construction. a Allocation reduced form original allocation due to exchange rate gain of $ over SDR. b Amount cancelled during closing of Loan account.

3. Cost Breakdown by Project Component ($ million)

Component Appraisal Estimate Actual Part A: Command Area Development Investment Cost 40.3 33.0 Part B: Integrated Pest Management 0.5 0.7 Part C: Small Scale Fisheries Development 1.9 1.5 Subtotal (A) 42.7 35.2 Contingencies Physical 3.7 0.0 Price 2.8 0.0

Subtotal (B) 6.5 0.0

Service Charge (C) 0.9 0.7

Total 50.1 35.9 4. Project Schedule

Item Appraisal Estimate Actual Flood Control Embankment Jan 1996 Jan 1996 Date Started Jun 1998 Jun 2002 Date Completed Irrigation Facilities Jan 1996 Jan 1996 Date Started Jun 1999 Mar 2003 Date Completed Drainage System Jan 1996 Jan 1996 Date Started Jun 1999 Jun 2002 Date Completed Communications Jan 1996 Jan 1996 Date Started Jun 1999 Jun 2002 Date Completed On-farm Works Oct 1995 Jan 1996 Date Started (Survey and Design) Jun 1999 Jun 2002 Date Completed Training Date Started Jan 1996 Jun 1996 Date Completed Jun 2000 Jun 2003 Fielding of Consultants Command Area Development, Part A Date Appointed Jan 1996 Aug 1996 Date Completed Jun 1998 Jun 2003 Integrated Pest Management, Part B Date Appointed Jan 1996 Aug 1997 Date Completed Jun 1998 Jan 2001 Small Scale Fisheries Development, Part C Date Appointed Jan 1996 Feb 1998 Date Completed Jun 1998 Aug 1999 Project Supervision Date Started Jan 1996 Jan 1996 Date Completed Dec 2000 Jun 2003 5. Project Performance Report Ratings Ratings

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Implementation Period mplementation Period

Development Objectives

Development Objectives

Implementation Progress

Implementation Progress

From 7 November 1995 to 31 July 1996 S PS From 1 August 1996 to 30 June 1997 S PS From 1 July 1997 to 30 June 1998 S PS From 1 July 1998 to 30 June 1999 S PS From 1 July 1999 to 30 June 2003 S S

D. Data on Asian Development Bank Missions

Name of Mission

Date

No. of Persons

No. of Person-Days

Specialization of Membersa

Fact Finding June 1994 6 60 d, i, q, r, s, t Appraisal July 1995 3 60 a, n, o Inception 4–8 May 1996 2 12 a, l Special Loan Administration 28 Feb–13 Mar

1997 1 15 K

Project Review 1 18–30 Oct 1997 2 26 a, j Project Review 2 23 Mar–1 Apr

1998 1 10 J

Project Review 3 22–29 Nov. 1998 2 16 j, l Special Project Administration 28 Jun–8 Jul 1999 3 33 d, e, j Midterm Review 24 Nov–9 Dec

1999 4 64 i, j, l, n

Special Project Administration 13–18 Jul 2000 1 6 A Project Review 4 18–27 Sep 2000 2 20 f, j Special Project Administration 9–10 Dec 2000 2 2 A Project Review 5 27 May–7 Jun

2001 3 36 g, j, l

Project Review 6 28 Nov–6 Dec 2001

3 27 g, m

Project Review 7 3–10 Jun 2002 2 16 c, g Project Review 8 30 Nov–12 Dec

2002 1 13 g

Project Review 9 13–28 May 2003 2 32 b, g Project Completion Reviewb 4–7 May 2006 4 12 g, l, n

PS = partly satisfactory, S = satisfactory.

a a – senior project specialist, b – project implementation specialist, c – gender and development specialist, d –

social development specialist, e - institutional development specialist, f – head (agriculture), g – project implementation officer, h – project officer, i – project economist, j – project engineer, k – financial analyst, l – assistant project analyst, m – administrative assistant, n – staff consultant, o – senior project economist, p – economist, q – senior project engineer, r – programs officer, s – counsel, and t – environment specialist.

b The project completion report was prepared by Zahir Uddin Ahmad, project implementation officer.

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vi

vii

I. PROJECT DESCRIPTION

1. The Asian Development Bank (ADB) and the Government of Bangladesh (the Government) funded the Command Area Development Project1 (CADP) to support the Government’s efforts to reduce poverty with flood protection and irrigation. Floods can destroy crops and do other damage, and irrigation can increase agricultural production and raise incomes. Two existing flood–control, drainage, and irrigation projects of the Bangladesh Water Development Board (BWDB) were covered under this project, having been financed earlier by ADB. 2. About 18,600 hectares (ha) of flood-prone area and a potential command area of 13,600 ha for irrigation is within the area of the Meghna-Dhonagoda Irrigation Project (MDIP), which was implemented from 1979 to 1989. The Pabna Irrigation and Rural Development Project (PIRDP) was implemented from 1979 to 1992 to provide flood protection to a gross area of 27,500 ha and irrigation to a potential command area of 18,870 ha, both under ADB financing amounting to $54.8 million and $116 million respectively. 3. The main objective of the CADP was to bring about a sustainable increase in agricultural production by realizing the full potential of the irrigable areas within the existing irrigation systems of the MDIP and the PIRDP through system rehabilitation and on-farm development, with mitigation of environmental impacts by implementing programs of integrated pest management (IPM) and small-scale fishery development (SSFD). 4. The MDIP is located on the eastern bank of Meghna River and bounded by the Meghna and Dhonagoda rivers in Matlab Upazila2 of Chandpur District. The estimated population of the command area was 139,000. Of these, landless people constituted 32%, small-scale farmers 53%, mid-scale farmers 14%, and large-scale farmers1%. Overall, about half of the population lived below poverty line. The PIRDP is situated on the western bank of Jamuna, upstream of its confluence with the Padma, and covers Bera, Santhia, and Sujanagar thanas of Pabna District. An estimated 176,000 lived in the command area. Large-scale farmers constitute 7% of householders but occupy 31% of agricultural land, mid-scale farmers 28% of households with 45% of the land area, and small-scale farmers 65% of household with 24% of the land. 5. The CADP covered both systems and had three components:

1. Part A: Command Area Development (CAD). This included (i) rehabilitation of systems and infrastructure including flood protection

embankments, irrigation systems, and drainage channels; (ii) community participation through the formation of water management

organizations; (iii) human resource development; (iv) on-farm development; (v) improved operation and maintenance (O&M) of facilities involving beneficiaries; (vi) the introduction of an irrigation service charge (ISC) for cost recovery to meet

part of O&M costs; (vii) gender development; and (viii) the introduction of joint management.

1 ADB. 1995 Report and Recommendation of the President to the Board of Directors on a Proposed Loan to the

People’s Republic of Bangladesh for the Command Area Development Project. Manila (Loan 1399-BAN(SF), for $26.7 million, approved on 7 November 1995 and closed on 30 June 2003).

2 An upazila is the administrative unit immediately under a district, previously known as thana.

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2. Part B: Integrated Pest management (IPM). This included (i) training farmers on IPM for rice, (ii) short IPM training for cash crops, and (iii) field days for short exposure of IPM knowledge to other farmers.

3. Part C: Development of Small-Scale Fisheries. This included (i) selection of suitable water areas, (ii) the formation and training of fish farmers' groups, and (iii) a seed fund and credit facility.

. ADB provided project preparatory technical assistance (PPTA)3 to (i) develop water anagement organizations, (ii) prepare an awareness campaign, (iii) develop benefit-monitoring nd evaluation systems, and (iv) assess environmental and social impacts. TA activities also

ncluded the formation of a plan for land acquisition, compensation, and resettlement and a eview of the legal framework for the registration of water management associations (WMAs).

. ADB approved a loan of SDR 20.4 million ($30.00 million equivalent) for the project on 7 ovember 1995, and the loan was declared effective on 26 January 1996.4 BWDB was the xecuting Agency (EA) for the project, whose activities were completed on 30 June 2003.5

II. EVALUATION OF DESIGN AND IMPLEMENTATION

. Relevance of Design and Formulation

. An in-depth feasibility study was undertaken under a PPTA, which analyzed the project eeds and incorporated limited consultations with beneficiaries. The project was formulated with ue regard to the recommendations of the studies prepared under the flood action plan covering nvironmental impact assessment, fisheries, O&M, and guidelines for people’s participation dopted for water development projects. Project appraisal reconfirmed its viability on the basis f expected benefits and costs estimates.

. The project design was relevant to ADB's strategic objectives contained in the Medium-erm Strategic Framework 1993-1996, which emphasized economic growth, poverty reduction,

mproving the status of the women, human resource development, and efficient management of atural resources. The CADP was also consistent with ADB's operational strategy for angladesh (1993), which focused on poverty reduction with faster economic growth, access for

he poor to growth benefits, and environmental concerns. The project design utilized the xperience of ADB and other development partners in Bangladesh.

0. The Project was highly relevant to three major development issues in Bangladesh: rural evelopment, agricultural development, and natural resource management. The project design upported the Government's strong commitment to flood control, drainage, and irrigation. ollection of an ISC was added to the project at a later stage. Project design emphasized

isheries development, which was in line with the major sector objectives of the Fourth 5-Year ADB. 1992. Technical Assistance to the People’s Republic of Bangladesh for Command Area Development. Manila

(TA 1830-BAN, for $441,000, approved on 29 December). ADB. 1998. Command Area Development Project; Aide Memoire of Project Review Mission. Manila (23 March–1

April). BWDB. 2003. Project Completion Report for the Command Area Development Project in Bangladesh. {City} (Loan

1399-BAN(SF), September).

Plan, covering fiscal year (FY) 1990 to FY1995. Project design also included an IPM componto reduce the indiscriminate use of agricultural chemicals and protect the environment. 11. The project design for flood protection, drainage and irrigation infrastructure, IPM, aSSFD was based on available knowledge and experience. The CADP was designed only surface water irrigation using water pumped into the main canal from adjacent river. Tpossibility of groundwater exploration and the conjunctive use of surface and groundwater wnot considered at the design stage. 12. The project design was supported by a group of international and national consultanADB water resource experts from the Bangladesh Resident Mission regularly visited the projand contributed to its design and formulation. B. Project Outputs

13. Physical outputs of project components were generally satisfactory in terms developing infrastructure, except in a few areas regarding institutions. A master table of physprogress of works and activities in Appendix 1 also shows targets as per the project plcumulative achievements until 30 June 2003, and the percentage of targets achieved. Appen2 presents the logical framework prepared at the time of project appraisal and includcomments from the Project Completion Review Mission (PCRM). An assessment of the outpof each component is summarized in paragraphs 13 to 28.

1. Part A: Command Area Development

14. Rehabilitation Works. The command areas of the MDIP and the PIRDP wdeveloped through rehabilitating control structures and turnouts and farmers’ rehabilitationfield channels. The rehabilitation works included (i) resectioning and slope protectionembankment and riverbank protection works; (ii) rehabilitating and lining canals includirrigation structures; (iii) re-excavating drainage channels including drainage structures, on-faworks including turnouts, and field channels (by beneficiaries), (iv) communications woincluding access roads, bridges, and culverts; and (v) procuring spare parts for the the Bpump house and other mechanical and electrical works. A summary of physical featurehabilitated in the MDIP and PIRDP areas is given in Appendix 1. 15. Design of structures for (i) flood embankment, (ii) irrigation canals, (iii) drainachannels, (iv) communication, (v) on-farm development, and (vi) riverbank and embankmprotection works, and of other works was done by the design cell of the CADP, Design Circlof BWDB. Design work was initially delayed as there were no up-to-date topographical maavailable for the two project areas. However, the Surface Water Modeling Center under supervision of the CADP design cell completed new topographic surveys and prepatopographical maps of the MDIP and PIRDP areas. The center also did a mathematmodeling study for design parameters of irrigation and drainage systems of both the projareas and a decision support system for O&M of MDIP works. 16. A number of problems related to planning, design, and construction were reported durfield visits by the PCRM. At full flow, an upstream portion of the main canal of the PIRDP buThis restricted irrigation water supply much below the design level and prevented irrigatwater from reaching all tail ends. In the MDIP as well, irrigation supplies were insufficientdeliver water to far tail ends. Cross-sections and slopes were inadequate. At many locatioalong the canal system, land not sufficiently leveled did not receive water. In some cas

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lowlands suffered water logging. Consequently, irrigation coverage never got even close to the target (para. 25). The Midterm Review Mission of the Jamuna-Meghna River Erosion Mitigation Project (JMREMP) in September 2006 made a number of specific suggestions, and BWDB has agreed to undertake a study to propose actions and measures. 17. Community Participation. The envisaged community participation foresaw increased agricultural production through participatory water management. At the start of the CADP, guidelines for people’s participation were followed for 3 years through the formation of water users’ organizations (WUOs). Later, the WUOs were reorganized from a four-tier structure into a three-tier structure in line with the Government’s Guidelines for Participatory Water Management (2001). This was a decision by BWDB rather than by WUOs. This transformation from one institutional structure to another had many implications, the most important being that it adversely affected the strengthening, functioning, and objectivity of WUOs. The farmers took the formation of WUOs as fulfilling a condition for implementation of the CADP, rather than as developing their ownership and attaining objectives. As per an investigation of the baseline situation of WMAs for the JMREMP Part B,6 although 83.6% of WMGs in the MDIP and 68.8% of WMGs in the PIRDP are registered, WMG members included only 12% of farmers in the MDIP and 39% of the farmers in the PIRDP. The organization and participation of the beneficiaries in project management are still in primary and formative stages, requiring lot of follow-up support, such as in the proposed follow-on CAD II Project. However, the WMGs and WMAs function as per cooperative rules and bylaws. The status of their formation and registration is presented with more details of the WMOs in Appendix 1. Appendix 3 presents the status of WMAs surveyed by the JMREMP in 2005. 18. The present status of the WUOs is less encouraging. The PCRM found that the pilot WUOs taken up by the JMREMP seemed to be active, but the beneficiaries expected more support from the project with, for example, vocational training leading to income generation.7 Significant efforts are required by BWDB to ensure the proper functioning and effectiveness of the WUAs and WMAs for improved ISC collection and effective O&M. 19. Operation and Maintenance. Beneficiaries were involved in O&M of project facilities, and O&M manuals and procedures were prepared. Operational instructions on O&M were also prepared and circulated among the field officials and WMOs, indicating their specific responsibilities. The PCRM observed that WUOs were not involved in O&M activities, such as selecting works and executing them. Joint management committees meet regularly but have yet to become effective. 20. The PCRM observed that the O&M manuals and procedures have not been fully operationalized. Field officials stated that, in the recent past, annual O&M planning has been carried out jointly by BWDB and WMAs. Close monitoring is needed to bring joint management of the projects effectively into practice. Annual allocations for O&M remain much lower than requirements, with total O&M allocation for the two project areas at 35.64% in FY2004, 26.60% in FY2005, and 50.41% in FY2006. BWDB has yet to introduce effective rotational irrigation plans, which were constrained by weak information dissemination from BWDB to farmers. The PCRM found that, in the post-project period, WMGs’ maintenance of embankments and canals was done only to meet emergencies.

6 nhc.(BWDB). 2005. Special Report 14 – Reconnaissance of Baseline Situation of Water Management

Assoociations and Groups. {City} (June0. 7 Ref: discussion with J3S1T1 Outlet t3&4 at Benapole; President – Md. Abdul Fakir.

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21. Human Resource Development. Human resource development was carried out through training-of-trainers programs and imparting training to the staff members of the line agencies BWDB, Department of Agricultural Extension (DAE), and Department of Fisheries (DOF). There were too many beneficiaries under the three components and too many officials. Training was carried out by two nongovernment organizations (NGOs)8 for fisheries. Training on O&M was also conducted by BWDB and individual consultants. Appendix 4 presents beneficiary training by NGOs and a summary of the training program implemented under Part A. The quality and effectiveness of the training programs have not been comprehensively evaluated. The efficiency of the main trainers was an issue that received little attention, according to the PCRM. 22. Interviews carried out by the PCRM with WMAs suggest that the quality and effectiveness of training were low. This is also reflected in WMA’s lack of knowledge about their functions in O&M and their low awareness of their role in ISC collection. A training module designed to cover all these aspects would have redressed this problem, assuming adequate time and a feedback mechanism. Details on training are described in Appendix 5. 23. Gender Development. Gender development was built into project design (Appendix 6). Female beneficiaries participate in WMGs and fish farmer groups, and they have been trained in their respective fields in the project training program. In fish farming, more than half of the trainees were female, but in WMOs the percentage is much lower, at 8.5%. 24. Introduction of ISC Collection. ISC9 collection became one of the key issues for the project. It was introduced into the project in 2001 after farmers had used irrigation water for free for many years. Total collections for the last 4 years (2001–2005) for both the projects was only 25% to 27% of the (Appendix 7), which is too low. Also worth noting is that the ISC targets of the MDIP and the PIRDP for FY2004 was only 7.46% of actual expenditures and for FY2005 only 8.62%. 25. Irrigation Coverage and Crop Area Benefited. Year-by-year irrigation coverage in the project, as provided by the CADP management unit, is presented in Appendix 8. Achieved irrigation coverage is only 5,000 ha (26.5% of target) in the PIRDP and 8,000 ha (58.8% of target) in the MDIP. Thus, a huge percentage of area remains outside irrigation coverage. The PCRM found that adequate water supplies to the tail enders had led to the installation of shallow tube wells. The dense irrigation network throughout the project areas keeps the groundwater level high, which facilitates using shallow tube wells and low lift pumps as well as of crop diversification, particularly in favor of cash crops. However, recharging the groundwater with water from the irrigation canal system does not explain the failure of the project to come even close to the irrigation coverage target. Appendix 9 resents the production increase of major crops in 2005–2006.

2. Part B: Integrated Pest Management 26. The objective of the IPM component under the Department of Environment was to mitigate adverse environmental impacts from the excessive and indiscriminate use of farm chemicals that accompanies intensified agriculture made possible by irrigation development and to help sustainably increase agricultural production. Training included 42,000 farmers and 130 trainer-officials drawn from DAE, BWDB, and an NGO, covering both the schemes (Appendix 10) and proving to be effective. Farmers and field staff are now aware of the benefits of IPM.

8 Development Organization of Rural Poor and Seba Society. 9 ISC is the service charge that farmers pay to BWDB based on their land area.

5

Chemical use has declined during the boro (December–May) season by 81% in the MDIP area and by 80% in the PIRDP area and, during the aman (July–November) season by 84% and 87% in the two projects respectively. 10 Field visits and extensive interviews with DAE revealed that both projects areas experienced conflicts with businessmen selling agricultural chemicals, and many shops were shut down.

3. Part C: Small-Scale Fishery Development

27. The objective of the component for SSFD was to mitigate the adverse impacts on open water fisheries that existed in project areas before being affected by flood-control embankments. In the flood-free environments of PIRDP and MIDP, small-scale fisheries in ponds, borrow pits, and irrigation canals have been developed through the provision of specific aquaculture technologies, extension services, organizational support, training, and credit inputs to fish farmers. In this program, 58.5% of the farmer trainees were female. Unlike in parts A and B, NGOs in this part played a major role in implementation. The program was slightly reduced due to delays in selecting the NGOs. The two NGOs are still operating in the fishery development programs using the revolving fund provided under the CADP. Credit recovery ranges from 82% to 100%. Locally, the program has been very much appreciated. Appendix 11 presents more details about the achievements. 28. Benefit Monitoring and Evaluation. Monitoring the project activities and benefits realized, and ongoing evaluation of the project, were important tasks carried out by the benefit monitoring and evaluation unit (BMEU). Appendix 12 presents a summary of project benefits and impacts. The BMEU monitored the beneficiary training program of the NGOs and formulated and supervised other training programs of the beneficiaries conducted by BWDB. The effectiveness of the BMEU is an issue, however, particularly in view of the questions related to the accuracy of important data provided by them, such as irrigation coverage and project benefits. Realization was lacking that monitoring and evaluation is a specialized job and requires adequate training. C. Project Costs

29. During appraisal, the cost of the CADP was estimated at $50.1 million equivalent. The actual cost was $35.9 million equivalent, or 71.7% of the appraisal estimates. This substantial cost saving of $14.2 million was mainly due to changes in project design and the depreciation of the local currency against the dollar. The estimated disbursement of loan proceeds was $29.1 million, while the actual disbursement was $27.4 million (94.15%). ADB contributed 76.3% of the actual project costs. The Government contributed $8.5 million, or 23.7%, which was lower than the appraised estimate of $15.1 million. ADB financed $21.5 million equivalent of local currency cost, which was 59.9% of the project cost. The Government made counterpart funds available as needed. At appraisal, the estimated beneficiary contribution of $5.0 million was in the form of O&M, but it ultimately did not materialize. A breakdown of project costs is in Basic Data. D. Disbursements

30. A total of $27.43 million, out of net loan amount of $27.65 million at the time of loan account closing on 4 November 2003, was disbursed under the CADP from initial disbursement in the imprest account in June 1996 to final disbursement at loan account closing. The closing of

10 Record of Field Office, DAE, Pabna.

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the loan account was delayed by the late submission of final withdrawal applications. The project followed ADB's standard disbursement procedures and encountered no problems in this regard. The fund was disbursed in seven categories, among which civil works absorbed the major portion of 63%, followed by training and fellowships (8%), vehicles and equipment (7%), engineering (5%), service charge during construction (3%), and implementation support (1%). Out of ADB financing, $21.5 million was disbursed in local currency which is 72.9% of the total local currency cost of $29.5 million and 59.9% of total cost of the project of $35.9 million. Conversion between the dollar and special drawing rights (SDR) is presented in Appendix 13. E. Project Schedule

31. The Loan Agreement was signed on 28 November 1995 and became effective on 26 January 1996. The Project was scheduled to close physically on 31 December 2000, and the original loan closing date was 30 June 2001. However, the loan closing date was extended two times to 30 June 2003, for a total extension of 24 months, to accommodate delays in implementing rehabilitation and riverbank protection works, organizing beneficiaries, and adapting the four-tier WUOs to three-tier WUOs. The project was completed on 30 June 2003, and the loan account was closed on 4 November 2003. Appendix 14 shows the original and revised implementation schedule. F. Implementation Arrangements

32. As the Executing Agency, BWDB was in charge of overall project implementation. BWDB also implemented Part A, (CAD) while Part B (IPM) was implemented by DAE and Part C (SSFD) by DOF. Appendix 15 shows the organizational set up of project coordination. NGOs played important roles in the Project, particularly in SSFD. 33. The additional director general (O&M-II) of BWDB was responsible for the implementing CAD, as well as of overall project execution. The director general of DAE was responsible for implementing the IPM program, and the director general of DOF was responsible for SSFD. 34. Interagency coordination was carried out by the ministerial-level steering committee headed by the secretary of the Ministry of Water Resources. The agency-level project coordination committee, headed by the member operation & maintenance (O&M), presently the additional director general (O&M-II) of BWDB, held periodic meetings. Coordination at project director level was done by the project coordinator (the director of the project management unit of the CADP). The project coordinator’s office was supported by an in-house design cell that monitored the design and specifications of the works and the topographic survey. This implementation arrangement was well planned on the whole. G. Conditions and Covenants

35. While conditions and covenants were generally met, needed actions for O&M and ISC collection were insufficient. The ISC was introduced in the project only in 2001, and the total collection for both of the schemes is 25% to 27% of total target, which is low. The detailed status of compliance of the loan covenants on 30 June 2003 is presented in Appendix 16. H. Related Technical Assistance (Consulting Services) 36. Three teams of project management consultants were recruited and worked in the three parts of the project. There were two other separate consultancy teams for (i) the Flood Damage

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Rehabilitation Project (for the 1998 flood) and (ii) the River Erosion Prevention and Morphology study of the MDIP and the PIRDP, but these were included under the purview of project management consultancy of Part A of the project. 37. Project management consultants for Part A were to assist BWDB in managing CAD activities, including developing community-based organizations for O&M, technical guidance and assistance in system rehabilitation and O&M, video documentation of project activities, and benefit monitoring and project evaluation, including the preparation and submission of related reports. 38. Four amendments to the contract agreement were done to progressively increase in consultants’ length of services. 39. The design of consulting services for parts A, B, and C, which encompasses all the important aspects of the CADP, was appropriate. In general, the terms of reference of TA were realistic and achievable. However, some consultants were not up to the expected standard. BWDB provided necessary administration and logistical support, and ADB closely monitored the progress of TA implementation. 40. A list of the reports prepared at different times to support project activities under TA is presented as Appendix 17. I. Consultant Recruitment and Procurement

41. Consultants Recruitment. The goods and services envisaged at appraisal were procured following ADB's Guidelines on Procurement of Goods and Guidelines on the Use Consultants. However, the recruitment of consultants was delayed from January 1996 by 7 months for Part A to August 1996, by 19 months for Part B to October 1997, and by 24 months for Part C to February 1998, which partly contributed to implementation delays. The delays were procedural. Inadequate procurement experience and skill, particularly lack of familiarity among implementing agency staffers with ADB’s procurement system, caused delays. Difficulties also were encountered in selecting many contractors and engaging participating NGOs, particularly for Part C. 42. Procurement of Equipment and Vehicles. Equipment and vehicles required during implementation of the CADP had been procured as per provisions of project preparation under the heading of equipment and vehicles. Procurement was done following BWDB tender procedures acceptable to ADB. Equipment procured were 25 computers, seven photocopiers, four fax machines, one transformer for MDIP, and spare parts for pumps. Vehicles procured were eight 4-wheel-drives, three speedboats with engines, 49 motorcycles, and 28 bicycles. Additional equipment and vehicles were procured from project funds under the Part A headings of local training. 43. Procurement of Civil Works. Construction works of the CADP followed normal BWDB procedures and ADB guidelines. Some delays occurred due to slow procedures in BWDB. Supervising the quality of works was sometimes difficult due to institutional weaknesses in BWDB. However, the preparation of the quality assurance procedure, supervised by BWDB project engineers and supported by field checks and visits by consultants and engineers of the CAD design cell, helped to improve the quality to a great extent. Nevertheless, the quality of works at many sections of the main canal dyke and irrigation and drainage canals towards the tail ends was unsatisfactory.

44. In civil work contracts, beneficiaries were involved in supervising construction, but the extent of their involvement and influence over the outcome was marginal. All civil works were implemented through local competitive bidding.11 Small civil work contracts for rehabilitation and maintenance works were carried out by landless laborers in labor contracting societies. Field channels for every turnout were carried out and maintained by the respective WMGs themselves. Routine maintenance of embankment and canal dykes was carried out by embankment maintenance groups, groups of destitute and low-income women. There were some grievances among the members of the WMGs about a few of the leaders of these societies and groups appropriating the benefits, but this issue was addressed by the BWDB during FY2006. J. Performance of Consultants, Contractors, and Suppliers

45. The PCRM reviewed the performance of the consultants, major contractors, and suppliers of the project. The project implementation consultants were instrumental in designing, supervising, and monitoring the project and mostly played pro-active roles in pushing ahead project activities. Although the TA outputs were useful in developing guidelines and made effective contributions towards enhancing BWDB’s institutional capability to mobilize beneficiaries and institutional mechanisms for beneficiary participation, as well as in implementing the social preparation and beneficiary participation, their role was not satisfactory in all cases, and in many cases the competence of the consultants was unsatisfactory. Consultants for the training program in Part A did not perform well, nor did the specialist supporting the BMEU. Grameen Matsayjibi Samity and the Volunteer Organization for Social Development performed satisfactorily, but the performance of the other NGOs was less than satisfactory. The quality of goods supplied was generally satisfactory. K. Performance of the Borrower and the Executing Agency

1. The Borrower

46. The Borrower prioritized drainage and water management during preparation and provided the necessary counterpart funds. The Borrower monitored progress through the project steering committee headed by the secretary of the Ministry of Water Resources and also through the Implementation, Monitoring, and Evaluation Division of the Ministry of Planning. The steering committee met as and when required instead of meeting at regular intervals. While this served the purpose, regular meetings might have been more effective for coordination among the ministries and departments, especially the Ministry of Agriculture and the Ministry of Fisheries and Livestock. The performance of the Borrower during project preparation and implementation was generally satisfactory, according to the project’s appraisal report.

2. Executing Agency

47. Besides implementation delays of about 24 months, BWDB implemented the CADP as envisaged at appraisal. However, the long implementation delays could have been reduced if the executing agencies had succeeded in expediting preparatory activities. While BWDB’s emphasis was more on the physical activities than on social aspects of the project, there were shortcomings observed in design and construction supervision (para. 16). BWDB’s performance in organizing the beneficiaries in water management organizations, making the organizations

11 Local competitive bidding is for small contracts carried out by local pre-qualified contractors of the EA.

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effective, and collecting the ISC (para. 24) was unsatisfactory. The other implementing agencies, DAE and DOF, performed well, but they need to integrate the recommendations from the project in their regular activities. L. Performance of the Asian Development Bank 48. During implementation, ADB coordinated with the Borrower and the executing agencies and frequently consulted with beneficiaries, including the rural poor and civil society. ADB emphasized institutional strengthening of beneficiary associations and the participation of NGOs in mobilizing beneficiary participation. ADB fielded nine review missions and six special project administration missions and also utilized its previous experience in water resource development in Bangladesh and other countries in advising the implementing agencies. Further, ADB promptly responded to requests from the Borrower and BWDB regarding implementation problems and reimbursement of claims. However, closer monitoring and critical assessment of project implementation performance may have helped to address some of the shortcomings of the CADP, such as low irrigation area coverage and low ISC collection during implementation.

III. EVALUATION OF PERFORMANCE

49. The design, implementation, and operation of the CADP were evaluated based on their relevance, efficacy, and efficiency in achieving the outputs and purpose; their sustainability; and their environmental, socio-cultural and other impacts. The evaluation is summarized in paragraphs 49–65, while more detailed assessments of economic and financial analyses, socio-cultural and other impacts, and participatory water management are presented in appendixes 18 and 19. A. Relevance

50. Both the MDIP and the PIRDP, which were completed in FY1989 and FY1992, had been performing much below the envisaged level. This was mainly due to inadequate development of the command area, deterioration of the system infrastructure from inadequate maintenance, and insufficient beneficiary participation in system O&M. It was also because these areas had been desperately suffering from excessive and indiscriminate use of farm chemicals causing adverse environmental impacts, particularly on fisheries. These factors make the envisaged objectives and the components of the project relevant. 51. The project design was very much relevant to ADB's strategic objectives of economic growth, poverty reduction, improving the status of women, human resource development, and efficiently managing natural resources. The project was relevant to ADB's medium-term operational strategy, which focuses on increasing access for the poor to natural resources and on improveing and protecting the environment. The project design for improving the socioeconomic conditions of the people through increased in land productivity and organizing the beneficiaries to ensure their participation in project management was consistent with the Government's overarching development policy to reduce poverty. 52. Unfortunately, while the envisaged project concept and components were very relevant, the achievements of major components were poor, specifically very low surface water irrigation coverage (paras. 16 and 25) and unsatisfactory organizing of beneficiaries into WUOs and making them effective and functional (para. 17). Poor collection of the ISC (para. 24) additionally damages project relevance when compared with to the envisaged project concept and targets. The project is rated as partly relevant.

B. Effectiveness in Achieving Outcome.

53. The goal of the CADP was to realize a sustainable increase in agricultural production by developing the full potential of the irrigated area within the existing irrigation systems12. The project rehabilitated the flood embankments to ensure safety to crops and new investment and improved the irrigation and drainage canal systems to some extent. The project has secured and increased agricultural production and brought crop diversification. 54. The training of farmers on water management, O&M of project facilities, and IPM also impacted positively by increasing agricultural production. Farmers and field staff alike are now aware of the benefits of IPM, and the use of chemicals has declined. 55. The SSFD component in the flood-free environment has developed and improved small-scale fisheries in ponds, borrow pits, and irrigation canals through the provision of specific aquaculture technologies, extension services, organizational supports, training, and credit inputs to fish farmers. This program strongly involved women, which has helped to empower them and raised their status in the family. 56. Increased agricultural production has an indirect but strong impact on poverty reduction by increasing beneficiaries’ income and access to food, particularly for poorer people, and has direct impact by increasing the employment and wages of poor agricultural laborers. 57. The CADP helped to strengthen, to some extent, the institutional capability of BWDB and WMOs. With TA for consultants and NGO support services, BWDB gained some skills regarding design, implementation, and O&M of similar projects conducted in collaboration with beneficiaries. However, the use of knowledge and skills acquired during training was not clearly visible except regarding IPM and SSFD. The skills acquired by BWDB officials and beneficiaries were found to be underutilized. 58. Effectiveness in achieving the outcome of the CADP was adversely affected by the lack of progress in organizing the beneficiaries and making WUOs effective and sustainable. Similarly, lack of irrigation coverage, slow progress in institutionalizing WUOs in O&M activities, and poor collection of the ISC reduced effectiveness. 59. The project is rated effective, and this rating may improve in the future if BWDB addresses the shortcomings mentioned above. C. Efficiency in Achieving Outcome and Outputs

60. The physical targets of the CADP have largely been met numerically but fell far short of their purpose. Planning, design, and construction had lapses. Irrigation coverage never got close to its targets, WUOs are withering away, beneficiaries have yet to show ownership of the subprojects, the involvement of WUOs was not institutionalized, and the collection of the ISC is far short of the target. Major efforts are required by BWDB to address shortfalls under the project. 61. The recruitment of staff, consultants, contracting NGOs, and many of the contractors was delayed. The procurement of equipment and vehicles was judicious. Sometimes, different 12 Appraisal Mission, 27 July 1995, Aide Memoire, Dhaka, ADB

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implementing agencies encountered some coordination problems, but these were sorted out well and coordination within BWDB and with the consultants and contractors, especially with participating NGOs and the beneficiary organizations, was generally satisfactory. 62. Based on direct benefits and costs, the project yielded an economic internal rate of return (EIRR) of 14% for the MDIP area and 19% for the PIRDP area, compared with 21.94% and 22.10% respectively projected at appraisal (based on 12% opportunity cost of capital). The EIRR was estimated for the project areas separately at 20 years from project completion. The SSFD component yielded an EIRR of 36.00%, somewhat more than the 32.45% projected at appraisal. Details about EIRR are available in Appendix 18. D. Preliminary Assessment of Sustainability

63. For both of the two project areas, sustainability remains a challenge in the face of (i) low irrigated area and poor water management at the field level; (ii) low collection of the ISC and inadequate O&M budget provision by BWDB; (iii) lack of WMG capacity in managing O&M, including ISC financial management; and (iv) poor service provider-client relations. 64. The sustainability of the project depends on several factors including (i) a properly designed canal system; (ii) a properly maintained canal system; (iii) well functioning, effective WMAs that can take full responsibility for collecting the ISC and preventive maintenance of the system; (iv) adequate annual allocations for O&M by BWDB; (v) assured supply of power to run pumps in an uninterrupted manner; and (vi) good coordination with different agencies (DAE, DOF, cooperatives, etc.) and especially with the Local Government Engineering Department (LGED) which is involved in road, bridge, and culvert construction in the area.

65. The Project has not yet reached a stage where it can be classified as sustainable. The PCRM observed that the action plans formulated under JMREMP should be pursued rigorously by BWDB to redress many of the issues affecting sustainability (para. 64). However, at this stage, the Project is less likely to be sustainable. E. Environmental Impacts

66. The CADP has no significant negative environmental impacts arising from its implementation except limited water stagnation in some low-lying areas. This is because of excess supply of water and over irrigation, which is expected to improve over time. Some of the significant environmental impacts of the project were (i) the provision of the flood-free environment required for intensive agricultural development and the reduced cost of development of internal low-fill road networks, homesteads, etc.; (ii) the introduction of high-yielding aman rice to replace local varieties in the flood-free environment where irrigation is available; (iii) reduced agricultural land in the project areas; (iv) SSFD in ponds, ditches, borrow pits, and irrigation canals in the flood-free environment; (v) IPM’s mitigation of excessive agro-chemical use brought about by irrigation development; (vi) the frequent supply of irrigation water in the system that recharges aquifers in and around it; (vii) canal waters provided for other household and recreational use; and (viii) the reduction of lost land and property with the displacement of people caused by riverbank erosion.

IV. OVERALL ASSESSMENT AND RECOMMENDATIONS

A. Overall Assessment

67. The CADP has been evaluated for its relevance, efficacy in achieving purpose, efficiency in achieving outputs and purpose, sustainability, and environmental, socio-cultural and other impacts. While the project met the numerical targets for rehabilitation of infrastructure (Appendix 1), weaknesses in planning, design, and construction resulted in only partial achievement of its targets. The vast majority of farmers remain outside WUGs. The organization and participation of the beneficiaries in project management are still in primary and formative stages, requiring a lot of follow-up support. Success in collecting the ISC is much below expectations. 68. The project contributed to poverty reduction and provided benefits to the people of the project area including (i) higher incomes through increased agricultural and fisheries production and additional farm employment; (ii) higher land values; (iii) improved communications; (iv) better access to markets; (v) improved health conditions; (vi) increased vegetation; (vii) improved access to safe water; and (viii) reduced intrusion of saline water. 69. Poor achievements (para. 67) in expected project outputs and institutional achievements make the output of the project less relevant than the envisaged project concept and targets. Lack of success in organizing the beneficiaries and making the WUOs effective and sustainable, institutionalizing WUOs in O&M activities, and collecting the ISC have adversely affected the rating. 70. Completion of the project was delayed by 2 years, irrigation coverage never got close to its targets, WUOs are withering away, beneficiaries have yet to show ownership of the subprojects, the involvement of WUOs has yet to be institutionalized, and the collection of the ISC is short of target. The project is therefore rated as less than efficient and less likely to be sustainable. 71. The overall rating of the project is partly successful13. This rating may improve in the future if BWDB takes major action through the ongoing JMREMP to redress the shortcomings mentioned in the previous sections. B. Lessons

72. Major lessons learned from the experience of implementing the CADP are institutional, technical, and financial. One key institutional lesson is that strengthening WUGs and WMAs should be undertaken up front, prior to starting physical works, and given sufficient time. Another is that, in terms of social and institutional development, community livelihoods have improved significantly from the contribution of this and earlier projects, but the institutions are weak regarding collecting the ISC and participating in O&M. Local government institutions (union parishads, upazila parishads) have the scope to be involved in the O&M of infrastructure through mobilizing local funds and manpower. There is a need to further strengthen coordination and cooperation between BWDB and LGED at both the organization and the field level. Finally, training should not be evaluated by the number of trainees but by its quality and effectiveness. Three technical lessons are that future flood-control, drainage, and irrigation investments should be located in morphologically stable areas and that smaller, that remote

13 This PCR is part of a sample of PCRs independently reviewed by the Operations Evaluation Department. The review has

validated the methodology used and the rating given.

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canals of larger systems often do not get adequate water, so they need special attention, and that locally available knowledge should be used in planning and design. The financial lessons are that too much dependence by the beneficiaries of the project on BWDB for O&M affected project sustainability, that O&M activities generally receive less attention and suffer from financial constraints, that a lack of fund mobilization for O&M activities deters the sustainability of the WMOs, and that BWDB’s annual allocations of O&M funds is inadequate. C. Recommendations

1. Project Related

73. Future Monitoring. The BMEU of the project coordinator’s office needs to be strengthened by training staff on monitoring and evaluation both during and after the project. To make the BMEU independent and effective, it should put under the additional director general (O&M-II) of BWDB, who is responsible for implementing CAD as well as for overall project execution. The functioning of WUOs and collection of the ISC should be monitored regularly, and problems should be redressed immediately. Small WUGs should be clustered and merged into a reasonable size for effective functioning. 74. Covenants. Covenants were generally met except those in relation to the functioning of WUOs, collection of the ISC, provision of adequate O&M funds, and posting of required O&M field staff. Generally the covenants remain valid. 75. Further Action or Follow Up. A number of institutional, technical, and financial follow-up actions are recommended to make the CADP successful. Institutionally, all vacant positions in the field should be filled with competent staff. Options in connection with institutional arrangements of WMAs to function effectively and sustainability (such as clustering and merging) should be discussed and worked out together with the farmers. Important issues in this connection are increasing awareness, getting the support of local government representatives, financial management of irrigation services, and the sustainability of the WMAs. WMAs need training regardless of their ISC contribution, as most are not aware of cooperative rules and regulations. Joint management committees should be activated to function regularly and effectively, and public-private partnerships (for joint O&M of water sector projects) should use performance-based O&M contracts. Technically, weak sections of the embankments and the irrigation and drainage canal system need to be identified. Designs and the quality of construction should be comprehensively reviewed, and cost-effective design and construction corrections need to be done. Correction measures may include bank protection, land leveling, and lining irrigation canals, particularly the tertiary and field channels where seepage is high. Sustainable O&M through participatory planning and implementation of pre-irrigation repair works should be operationalized. Irrigation operation, including rotational irrigation, should be improved. Financially, BWDB should ensure adequate allocation of annual funds for O&M. ISC collectors should be selected by the WMAs, and there should be punitive measures for nonpayment and punishment for failure to collect. Finally, NGOs should participate in O&M as supervisors and advisers. 76. Additional Assistance. Additional assistance will be required for the follow-up actions recommended in para. 74, to improve project performance, and to make it sustainable. In this respect, (i) the JMREMP, which is ongoing, and the proposed CAD-II Project, which is planned as a follow-on intervention, include follow up in their action plan. Given the limited availability of resources, resource reallocation of JMREMP was carried out during its Mid-Term Review Mission in September 2006.

77. Time for Project Performance Evaluation Report. The appropriate time for the project performance audit would be 2009, which would allow sufficient time for the adoption of proper and effective participatory approaches in water management.

2. General 78. In the future, before a project is taken up, it should be meaningfully discussed at different levels in the project area to explain its objectives, implications, and benefits and the obligations of beneficiaries and project authorities. Only then should a decision be made on the project, taking into account the opinion of the beneficiaries. 79. BWDB has to make a consistent plan and persistently pursue it to achieve a paradigm shift from an old-fashioned, top-down water-management culture to a culture of participatory water management. Appendix 20 provides a few major issues relevant to the participatory management and sustainability of WUOs.

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PHYSICAL PROGRESS OF WORKS AND ACTIVITIES

Items of Works

Target Cumulative Achievement Target Achievement

(as of 30 June 2003) (%) Unit PIRDP MDIP CADP PIRDP MDIP CADP PRIDP MDIP CADP

Part A Civil Works

1. Flood Control a. Flood embankment protective works Km 0.00 38.43 38.43 0.00 38.43 38.43 0 100 100 b. Bank protective works Km 3.72 1.09 4.81 3.72 1.09 4.81 100 100 100c. Flood embankment slope protective works Km 0.00 1.80 1.80 0.00 1.80 1.80 0 100 100

2. Rehabilitation of Canals a. Main canal Km 30.00 0.00 30.00 30.00 0.00 30.00 100 0 100 b. Secondary and tertiary canals km 232.00 131.00 363.00 230.00 131.00 361.00 99.14 100 99.45c. Peripheral canals km 0.00 52.00 52.00 0.00 52.00 52.00 0.00 100 100

3. Structures a. New head regulators no. 15 1 16 15 1 16 100 100 100 b. New other structures no. 87 0 87 87 0 87 100 0 100 c. Rehabilitated regulators no. 30 0 30 30 0 30 100 0 100 d. Rehabilitated other structures no. 13 0 13 13 0 13 100 0 100 e. Canal lining (tertiary) km 2.00 23.95 25.95 2.00 23.95 25.95 100 100 100f. Canal lining (secondary) km 0 28.10 28.10 0 28.10 28.10 0 100 100

4. Facilities Improvement LS LS LS LS LS LS LS 100 100 100

5. Drainage System a. Re-excavation of drainage khal km 50.00 47.17 97.17 50.00 47.17 97.17 100 100 100b. Rehabilitation of drainage structures, siphons, conduits, aquaducts, pipe, and pits no. 24 78 102 24 78 102 100 100 100

5. Communications a. Culverts no. 120 3 123 120 3 123 100 100 100 b. Access road improvement km 36.91 4.00 40.91 36.91 4.00 40.91 100 100 100c. Bridges on irrigation canals no. 9 46 55 9 43 52 100 93.48 94.55

Appendix 1

Items of Works

Target Cumulative Achievement Target Achievement

(as of 30 June 2003) (%) Unit PIRDP MDIP CADP PIRDP MDIP CADP PRIDP MDIP CADP

Part A Civil Works

1. On-Farm Works a. Structures no. 60 0 60 60 0 60 100 0 100 b. Turnouts, new (main, secondary, & tertiary) no. 225 538 763 225 538 763 100 100 100 Rehabilitation no. 618 144 762 618 144 762 100 100 100 With road crossing no. 30 0 30 30 0 30 100 0 100 2. Government-Financed Works a. River bank protection by geo-bag including Survey km 2.06 2.60 4.66 2.06 2.60 4.66 100 100 100b. Riverbank protection at Torki Shib Gazi by CC block

km 0 1.40 1.40 0 1.40 1.40 0 100 100

c. Rehabilitation of main and secondary canals, including access roads, in PIRDP km 11.50 0 11.50 9.92 0 9.92 86.26 0 86.26 Total civil work in percentage 100 100 100 97 99 98 97 99 98 Operation and maintenance in percentage 100 100 100 97 99 98 97 99 98

Training 1. Formation and Registration of WMOs a. Water management groups no. 368 387 755 368 388 756 100 100 100 b. Water management associations no. 6 9 15 6 9 15 100 100 100 c. Water management formations no. 1 1 2 1 1 2 100 100 100 d. BWDB staff training no. 130 74 204 130 74 204 100 100 100 e. Beneficiary training by NGOs no. 4,270 4,230 8,500 4,270 4,230 8,500 100 100 100f. Beneficiary training by BWDB no. 13,291 13,211 26,502 13,296 13,179 26,475 100 99.76 99.88g. Regional training no. 27 26 53 27 26 53 100 100 100 h. Meeting hall no. 3 7 10 3 7 10 100 100 100 i. Constitution of irrigation committee (ICs) and joint management committees (JMCs) no. 1(IC) 1(IC) 2(IC) 1(JMC) 1(JMC) 2(JMC) 100 100 100

CC = cement concrete 17

Items of Works

Target Cumulative Achievement Target Achievement

(as of 30 June 2003) (%)

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Unit PIRDP CADPMDIP PIRDP MDIP CADP PRIDP MDIP CADPPart A

Equipment and Vehicles 1. Equipment a. Computer, printer-related articles no. 5 3 25 5 3 25 100 100 100 b. Photocopier no. 3 2 7 3 2 7 100 100 100 c. Drafting equipment and typewriter no. 4 3 7 4 3 7 100 100 100 d. Office equipment development LS LS LS LS LS LS LS 100 100 100e. Fax machine for project coordinator’s office no. 0 0 4 0 0 4 0 0 100 f. Spare parts for Bera pumping station item 1 0 1 1 0 1 100 0 100 g. Transformers no. 0 1 1 0 1 1 0 100 100 Subtotal (A1) 13 9 45 13 9 45 100 100 100 2. Vehicles a. 4-wheel drive vehicle no. 1 3 8 1 3 8 100 100 100 b. Speedboat with engine (local) no. 1 1 2 1 1 2 100 100 100 c. Speedboat engine no. 0 1 1 0 1 1 100 100 100 d. Motorcycle (local) no. 27 22 49 27 22 49 100 100 100 f. Bicycle no. 20 8 28 20 8 28 100 100 100 Subtotal (A2) 49 35 88 49 35 88 100 100 100

Consultancy Services a. Part A: international mm 0 0 38.5 0 0 38.25 0 0 100 b. Part A: national mm 0 0 227 0 0 224.5 0 0 98.90 Subtotal: Part A 0 0 265.25 0 0 262.7 0 0 99.06 c. Part B mm 0 0 36 0 0 36 0 0 100 d. Part C: international mm 0 0 8 0 0 7.93 0 0 99.13 e. Part C: national mm 0 0 34 0 0 30.50 0 0 89.71 Subtotal: Part C 0 0 42 0 0 38.43 0 0 91.50 Total: Parts A+B+C 0 0 343.25 0 0 337.1 0 0 98.23

BWDB = Bangladesh Water Development Board, CADP = Command Area Development Project, km = kilometer, LS = lump sum, MDIP = Meghna-Dhonagoda Irrigation Project, mm = man-month, no. = numbers, PIRDP = Pabna Irrigation and Rural Development Project, WMO = water management organizations. Source: BWDB. September 2003. Project Completion Report for the Command Area Development Project in Bangladesh. (Loan 1399-BAN(SF))

PROJECT FRAMEWORK Intervention Logic Measurable Indicators Means of

Verification Assumptions Comments by PCRM

Overall Objective

Sustained economic and environmentally sound growth of irrigated agriculture and fish production resulting in a reduction of poverty

Crop production (food grain) will increase by 87,000 tons.

Fish production will increase by 2 tons per year.

Reduction of the number of people living below the poverty line by increasing the income of farmers, fishers, the landless, and destitute women, among others.

Bench mark survey

Benefit monitoring and evaluation unit (BMEU) report

Thana report of Department of Agricultural Extension (DAE) and Department of Fisheries (DOF)

Bangladesh Bureau of Statistics (BBS)

Bangladesh Institute of Development Studies (BIDS) report

Crop production increased by 113,057 tons annually (61,179 in the Padna Irrigation and Rural Development Project [PIRDP] and 51,878 in the Meghna-Dhonagoda Irrigation Project [MDIP]).

Fish production increased by more than 3.5 tons/year/hectare (ha).

Poverty reduction impact is positive. Income of all sections of population has increased, and living standard has evidently improved (Appendix 19, para. 10)

Purpose

Ensure a viable scope inside the project areas for farmers regarding the production of irrigated crops, disadvantaged fishermen, women in small-scale fish production, and the landless and destitute women by creating additional income opportunities.

An additional 45,000 farmers will receive irrigation water.

Nearly 5,000 people, mainly women, will become active in new small-scale fisheries.

The creation of 100,000 person-

BMEU report

Progress report

Input prices, e.g., for seeds, fertilizer, labor, and water, as well as output prices like paddy, ensure financial and economic viability for irrigated crop production.

About 55,000 additional farmers received irrigation.

6,225 people (58% women) became active in small-scale fisheries development (SSFD) activities.

Appendix 2

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Intervention Logic Measurable Indicators Means of Verification

Assumptions Comments by PCRM

months of employment per year, 30% for women, by increased production and the creation of approximately 50 labor contracting societies (LCSs) and 50 embankment maintenance groups (EMGs) and canal maintenance groups (CMGs) involved in rehabilitation and maintenance works.

Present flood-protection measures are sufficient.

Increased agricultural and fish production will have no adverse environmental impact.

Targeted beneficiaries like the landless and destitute women can be reached by the Command Area Development (CAD) subprogram.

Employment opportunities increased by about 100,000 person-months per year including 197 jobs in PIRDP and 92 jobs in MDIP for poor women under EMG activities. A total of 270 LCS were engaged.

Landless, destitute women took part in LCS and EMG activities.

Outputs

1) Establish, register, and train water management organizations (WMOs) and strengthen their sense of ownership to involve farmers, both men and women, in the development of the irrigation system and its operation and maintenance (O&M).

Formation, training, and registration of at least 755 WMGs, about 15 water management associations (WMAs) and two water management federations (WMFs) in which women are represented by women board members.

Establishment of around 50 demonstration plots for water management and integrated pest management (IPM) and poly-culture fish cultivation.

Construction of 15 (subsequently reduced to 10) meeting halls for WMOs.

Handing-over of minor and tertiary

BMEU report

Progress report

Review mission

Field visit report

Water users are willing to become members of registered WMOs.

Registration of WMOs will proceed smoothly and without legal impediment.

Timely recruitment of a training institute to plan, develop, and coordinate beneficiary training

Timely appointment of nongovernment organizations (NGOs) for the implementing

756 WMGs (368 in PIRDP and 388 in MDIP) and 15 WMAs (six in PIRDP and nine in MDIP) formed and registered with Cooperative Department

Two WMFs also formed in the two project areas

251 demonstration plots for water management were established.

10 meeting halls (seven in MDIP and three in PIRDP) were constructed.

Memorandum of understanding for handing

Intervention Logic Measurable Indicators Means of Verification

Assumptions Comments by PCRM

canals and meeting halls to WMOs for use.

beneficiary training

WMOs are willing to take over minor canals, structures, and meeting halls on conditions acceptable to Bangladesh Water Development Board (BWDB) and WMOs.

over minor and tertiary canals was cleared by Ministry of Water Resources, but ADB did not approve it in anticipation of disputes over possession rights.

2) Training of BWDB in participatory water management and improvement of BWDB establishment and facilities required for adequate management of both irrigation systems

Participation of about 25 BWDB staff in a regional water management study tour

Training in participatory water management for at least 150 BWDB staffers involved in CAD subprogram through a local training program

Procurement of machinery, equipment, transport, and vehicles as per project preparation

BMEU report

Progress report

Regional training report

Timely appointment of a training institute to plan, development, and coordination of BWDB staff training

53, mainly BWDB staff, participated in regional water management study tour (22 in Philippines and 31 in Thailand).

204 (130 in PIRDP and 74 in MDIP) BWDB staffers got local training on water management, but the quality and effectiveness of these training programs were unsatisfactory.

Machinery, equipment, and Vehicles were procured as per project preparation.

3) The rehabilitation, repair and protection of flood-protection embankments and irrigation, drainage, communication, and on-farm facilities of both irrigation systems, involving farmers in planning and implementation of the works

Increase of the irrigable area by a maximum of 22,500 ha with the project from about 5,500 ha without the project to a total of about 28,000 ha (including low-lift pump (LLP) and shallow tubewell (STW) irrigated areas)

Record of approved minutes of meetings with WUOs concerning planning, design, and

BMEU report Necessary design data are available.

Direct irrigation water supply did not reach the target.

LCS were involved in the rehabilitation of tertiary and minor irrigation canals.

1,555 turnouts (873 in PIRDP and 682 in MDIP) constructed or rehabilitated for irrigation coverage.

Detailed designs are prepared in a timely way.

Progress reports

Civil works can be implemented within planned budgets. Review missions

21

Intervention Logic Measurable Indicators Means of Verification

Assumptions Comments by PCRM

implementation of civil works, in particular in works related to tertiary canals, for which the beneficiaries have final say

Involvement of LCS in rehabilitating all tertiary and minor irrigation and drainage canals

Improvement of the originally planned turnout areas covering a total of 28,000 ha

Record of minutes of meetings with WMGs concerning review of location and size of turnout areas

Field visit reports

Tender submission, evaluation, and awarding are carried out on time.

Construction quality is adequate.

BWDB field and design staff committed to involving farmers in locating and determining the size of turnouts and field structures

Farmers are motivated to construct field channels.

4) The development and application of a sound O&M program, including cost recovery, which will be implemented by BWDB and WMOs

Inventory of basic scheme data complete and up-to-date

Needs-based budget updated annually

Improved O&M manual prepared for both systems, including procedures that ensure participation of WMOs

Annual O&M plan and budget prepared in consultation with WMOs

Increase of the irrigated area from 5,500 ha to a maximum of 28,000 ha

BMEU report

System performance report of Meghna-Dhonagoda and Pabna

Review missions

Field visit report

Field staff willing to prepare and implement O&M plans with WMOs

WMOs effective in enforcing operation schedules and planning maintenance

Field staff with sufficient resources to monitor O&M and collect O&M data.

Willingness of BWDB to finance O&M activities based on O&M plans

This aspect of the project did not work well or reach the target. The assumptions were wrong.

22

Intervention Logic Measurable Indicators Means of

Verification Assumptions Comments by PCR Mission

O&M expenditures spent as per O&M plan and in line with needs-based budget

Irrigation needs supplied as per irrigation schedule and approved by WMOs

Drainage requirements achieved as per drainage plan and approved by WMOs

O&M monitoring data collected by BWDB and WMOs

O&M expenditure spent as per actual O&M plan, ADP and project preparation.

O&M performance report prepared by and signed by WMOs

Pump costs covered by WMO through the collection of the ISC

Preventive maintenance implemented by EMGs and CMGs

Periodic maintenance of earthworks implemented by LCSs

Sufficient O&M budget made available

Water users willing to pay irrigation service charge based on real cost

Reliable electricity supplies to pump stations

5) Environmental protection through the introduction of

IPM adopted BMEU report IPM is viable in MDIP and PIRDP irrigation systems.

Total of 12,240 farmers received training in IPM for

23

24

integrated pest management (IPM) techniques

Training of 12,240 farmers in IPM for rice

Short term training of 3,200 farmers in IPM for cash crops

Progress report

Review missions

Field visit report

Farmers’ socioeconomic situation is favorable to adopting IPM.

rice.

2,720 farmers got short training in IPM for cash crops.

6) Restore fish production in both project areas through the introduction of small-scale fisheries in many water bodies

Utilization of about 516 ha of water bodies (drains, borrow pits, ponds) for fish culture

About 6,635 men and women, primarily from disadvantaged groups, will take up fishery in canals and ponds.

BMEU report

Progress report

Review missions

Field visits

District administration will lease canals, drains, and ponds to disadvantaged target groups.

742 ha of water bodies (514 ha in PIRDP and 228 ha in MDIP) were utilized for small-scale fisheries development.

6,225 men and women (3,635 in PIRDP and 2,590 in MDIP) participated in canal and pond fisheries.

Source: BWDB. September 2003. Project Completion Report for the Command Area Development Project in Bangladesh. (Loan 1399-BAN(SF))

STATUS OF WATER MANAGEMENT ORGANIZATIONS IN 2005

Item Unit MDIP PlRDP Total 1. Water Management Organizations a. Water Management Groups i. Registered number 388 368 756 ii Unregistered number 76 167 143 Total number 464 535 899

b. Water Management Associations (registered) number 9 6 15 c. Water Management Federations (unregistered) number 1 1 2

2. WMG Members, Water Users, and Farmers a. Members in registered WMGs i. Male members number 4,126 6,810 10,935 ii. Female members no. (%) 224(5.7) 527 (7.2) 751(6.1) Total number 4350 7337 11687 Average number of members per WMG number 11 20 15

b. Water Users and Farmers i. Total water users (in registered and unregistered WMGs) number 12,195 10,400 22,595 ii. Total farmers number 33619 24060 57679 iii. WMG members among farmers percent 12 39 20 iv. WMG members among water users percent 9 26 12 v. Average number of water users per WMG number 26 19 25 (registered and unregistered)

3. Water Availability and boro Cultivation

a. Actual i. Start of pump operations date 19/01/05 25/01/05 — ii. Water availability in field channels date 26/01/05 10/02/05 — iii. Boro transplantation date Jan 05 Feb 05 — (week 4) (week 2) b. Farmers’ Expectations i. Start of pump operation date mid Dec mid Dec mid Dec ii. Water availability in field channels date 1 Jan 1 Jan 1 Jan iii. Boro transplantation date 1–15 Jan 1–15 Jan 1–15 Jan

4. Irrigation Coverage for Boro 2003–2004

i. Total irrigable area ha 8439 18680 27119 ii. Irrigated area for boro ha 5105 5005 10110 iii. Coverage irrigation in boro percent 52 27 37.3

5. Area per WMG and per Water User 2003–2004 a. Area per WMG i. Irrigable area per WMG (regd.+ unregd.) hectare 18.78 34.92 38.80 ii. Irrigable area per WMG (registered) hectare 21.75 50.76 35.87 iii. Present irrigated area per WMG (registered) hectare 13.15 13.60 13.37

b. Area per Farmer or Household i. Irrigable area per farmer hectare 0.25 0.78 0.47 ii. Present irrigated area per water user hectare 0.42 0.48 0.45

iii. Minimum area for household self sufficiency hectare 0.61 1.01 0.00

Appendix 3 25

26

Item Unit MDIP PlRDP Total

6. Service Charge Target and Collection a. Target

i. 2001–2002 lakh taka 46.86 13.11 59.97 ii. 2002–2003 lakh taka 47.91 47.76 95.67

iii. 2003–2004 lakh taka 47.94 49.94 9788 Cumulative Total lakh taka 142.71 110.81 253.52

b. Collection i. 2001–2002 lakh taka 17.36 7.88 25.24 ii. 2002–2003 lakh taka 16.56 9.71 26.27

iii. 2003–2004 lakh taka 15.56 10.04 25.60 Cumulative Total lakh taka 49.48 27.64 77.12

c. Achievement of Target percent 34.7 24.9 30.4 i. Default percent 65.3 75.1 69.6

7. Organizational Management of WMAs a. Average number of meetings held in 2003–2004 number 4 8 5.5 b. Adopted bylaws with own goals and objectives WMA 2 3 5 c. Maintained records in 2003–2004 WMA 2 1 3 d. Maintained accounts in 2003–2004 WMA 2 2 3 e. Regular audit done in 2001–2002, 2002–2003, and and 2003–2004 WMA 7 4 11 f. Annual general meeting held in 2003–2004 WMA 7 5 12 g. Organization run by executive committee WMA 9 8 15

— = not applicable, ha = hectare, MDIP = Meghna-Dhonagoda Irrigation Project, PIRDP = Pabna Irrigation and Rural Development Project, WMA = Water Management Association, WMG = water management group. Source: BWDB. September 2003. Project Completion Report for the Command Area Development Project in

Bangladesh. (Loan 1399-BAN(SF))

Appendix 4 27

SUMMARY OF TRAINING PROGRAM IMPLEMENTED UNDER PART A

Item

Unit

MDIP PIRDP Total

Beneficiary training by NGOs number 4,230 4,270 8,500 Beneficiary training by BWDB number 13,179 13,296 26,475

Total Beneficiary Training number 17,409 17,566 34,975 Local training of BWDB staff by consultant number 74 130 204 Regional training of officials of executing agencies number Registration:

i) in Philippines number

11 11 22

ii) in Thailand number 15 16 31 Total Regional Training number 26 27 53

BWDB = Bangladesh Water Development Board, NGO = nongovernment organization, MDIP = Meghna-Dhonagoda Irrigation Project, PIRDP = Pabna Irrigation and Rural Development Project. Source: BWDB. September 2003. Project Completion Report for the Command Area Development Project in

Bangladesh. (Loan 1399-BAN(SF))

Appendix 528

BRIEF EVALUATION OF TRAINING IN PART A

1. The objectives of training and motivation are to prepare and equip staff and stakeholders with knowledge, experience, and skill so that they can perform their jobs well. Both the Pabna Irrigation and Rural Development Project (PIRDP) and the Meghna-Dhonagoda Irrigation Project (MDIP) have training components for officials and staff of the Bangladesh Water Development Board (BWDB) and other stakeholders. The participating nongovernment organizations (NGOs) have arrangements for training their own staff. It is quite amazing that the expatriate consultants coming from different social, economic, and cultural settings, and so needing training and motivation to adapt to Bangladeshi settings, do not have any provision for training. The training component was very much neglected in the first years of the projects, though they should have started by training the relevant staff to prepare them for the job. A careful reading of the progress reports prepared by the NGOs on training of the project beneficiaries and stakeholders reveals the following:

(i) The reports present a very poor comprehension of the participatory approach and NGO's responsibilities and a weak formulation of the training objectives and outputs.

(ii) They do not contain anything about how ex-trainees are doing. There is no system of continuous monitoring or evaluation or any effort to improve the training program.

(iii) Only 6 pages out of a 41-page quarterly progress report (No. 5 by Sheba Society, Project Division, dated 14 November 1999) deal with "Achievement made (physical)" and the "Activities as per TOR [terms of reference]," but 16 pages present comments of the visitors to the training center during the reporting period. These comments are regarded as "Impact of the achievements (Training)."

(iv) The progress reports do not give an encouraging impression about the training. 2. The situation of the training program for the BWDB officials and staff was even worse. The project started in August 1996 and was supposed to be completed by December 2000. The training of BWDB officials and staff started only in February 2000 and was characterized by the following:

(i) The training program was compressed into too short a time (15–27 sessions in 3 days, so about 21 hours in 3 days, at a rate of 7 working hours per day). Such a compressed program leaves practically no room for using participatory and interactive methods in the training sessions. The sessions became one-way lecture sessions.

(ii) Looking at the training module and the category of proposed participants for the training program, it appears that the training program was not objectively oriented.

(iii) The module could have been more useful with a limited number of subjects and issues and opportunity for interactive participation among the trainees. A general overview of the project and discussion of the specific tasks of the trainees, problems they are expected to encounter in performing their tasks, the skills (problem solving, communication, etc.) needed to handle those problems in an effective and efficient manner should have been the focus of the training program.

(iv) The training capacity and effectiveness of the trainers is something that has never been addressed in any discussion, meeting, or report, though its

29

importance cannot be exaggerated. There is no mechanism or practice of monitoring or evaluation or any effort to improve the training program.

(v) There are enough reasons to doubt the effectiveness of this kind of training program for these projects, or for similar future projects, unless the whole approach to, and management of, them improves.

1Quassem, M.A. 2000. Quest for a Viable Model for Stakeholders Participation in Flood Control and Drainage Projects (PhD Thesis). Dhaka.

30

Appendix 6

MALE AND FEMALE MEMBERS IN BENEFICIARY GROUPS MALE AND FEMALE MEMBERS IN BENEFICIARY GROUPS

Number of Members Number of Members Beneficiary Groups MDIP PIRDP CADP

Water Management Groups a. Female members 1,684 1,268 2,952 b. Male members 15,882 16,141 32,023 Total 17,566 17,409 34,975 Fish Farmers’ Groups a. Female members 2,466 1,167 3,633 b. Male members 124 2,468 2,592 Total 2,590 3,635 6,225

CADP = Command Area Development Project, MDIP = Meghna-Dhonagoda Irrigation Project, PIRDP = Pabna Irrigation and Rural Development Project.

Source: BWDB. September 2003. Project Completion Report for the Command Area Development Project in Bangladesh. (Loan 1399-BAN(SF))

Appendix 7 31

SUMMARY OF TARGET AND ACHIEVEMENT OF IRRIGATION SERVICE CHARGE

(in lakh taka)

Target and Achievement of ISC Collection MDIP and PIRDP MDIP PIRDP Year

Target Achievement Target Achievement Total

Target Cumulative

Achievement 2002–2003 48.00 17.34 48.00 9.70 96.00 27.04

(28.16%) 2003–2004 48.00 15.56 42.00 9.56 90.00 25.12

(27.91%) 2004–2005 48.00 17.89 55.76 8.51 103.76 26.40

(25.44%) 2005–2006a Not fixeda Not fixeda Not fixeda

ISC = irrigation service charge, MDIP = Meghna-Dhonagoda Irrigation Project, PIRDP = Pabna Irrigation and Rural Development Project. a In 2005–2006, irrigation water supply was irregular and inadequate, which generated serious commotion

among the farmers in MDIP and PIRDP. So the ISC target and collection were not finalized. Later land-use surveys and measurement of irrigated areas in both MDIP and PIRDP were conducted to ascertain the land use and actual irrigation coverage.

Source: BWDB. September 2003. Project Completion Report for the Command Area Development Project in Bangladesh. (Loan 1399-BAN(SF))

Appendix 832

ANNUAL IRRIGATION IN MDIP AND PIRDP IN THE YEARS 2001–2005 (area in ha)

Year

Target and Achievement of Irrigation

MDIP and PIRDP MDIP PIRDP

Target Achievement Target AchievementTotal

Target Cumulative

Achievement 2001–2002 12,579 12,579 12,335 12,335 24,914 24,914 2002–2003 11,550 11,550 11,425 11,425 22,975 22,975 2003–2004 8,000 6,500 9,520 3,740 17,520 10,240 2004–2005 8,866 8,240 11,248 8,010 20,114 16,250 2005–2006 8,860 * 9,000 * 17,860 *

ha = hectare, MDIP = Meghna-Dhonagoda Irrigation Project, PIRDP = Pabna Irrigation and Rural Development Project. Notes: Data provided by the command area development project management unit. The achievements in 2001–2002 and 2002–2003 have been seriously questioned by many, and rightly so. In fact, there is doubt about all the achievement figures. There is even disagreement within units of BWDB on the figures of irrigated area. Disagreement also exists between BWDB and farmers. To sort out this issue, BWDB has undertaken land-use surveys and measurement of irrigated areas in both the subprojects to ascertain the land use and actual irrigation coverage in FY2006. Once the survey reports are finalized, they will be placed with the Joint Management Committee for approval. Source: BWDB. September 2003. Project Completion Report for the Command Area Development Project in

Bangladesh. (Loan 1399-BAN(SF))

Appendix 9 33

YIELD INCREASE TREND IN THE SUBPROJECTS FOR THE MAJOR CROPS

Yield (t/ha) at Different Periods Crops 1996–1997 2002–2003 2005–2006

MDIP

Aman rice HYV 3.01 4.44 4.12 Aus rice HYV 2.04 2.88 2.81 Boro rice HYV 4.10 4.77 4.97 Wheat 2.07 2.66 1.81 Jute HYV 0.00 0.00 1.89 PIRDP Aman rice HYV 1.73 2.54 2.60 Aus rice HYV 1.69 2.17 2.87 Boro rice HYV 3.55 4.58 4.95 Wheat 1.75 2.20 2.08 Jute HYV 0.00 0.00 0.00

HYV = high-yielding variety, MDIP = Meghna-Dhonagoda Irrigation Project, PIRDP = Pabna Irrigation and Rural Development Project, t/ha = metric ton per hectare.

Source: BWDB. September 2003. Project Completion Report for the Command Area Development Project in Bangladesh. (Loan 1399-BAN(SF))

Appendix 1034

PROGRESS OF INTEGRATED PEST MANAGEMENT PROGRAM

Progress Achieved Activity Unit MDIP PIRDP CADP 1. TOT Training a. DAE officials no. 39 76 115 b. BWDB officials no. 5 5 10 c. NGO trainers no. 5 0 5

Total no. 49 81 130 2. Farmers IPM Training a. On rice (season long) no. 5,280 6,960 12,240 b. On cash crops (short training) no. 1,190 1,530 2,720 c. Short exposure to IPM no. 24,000 18,000 42,000

BWDB = Bangladesh Water Development Board, CADP = Command Area Development Project, DAE = Department of Agricultural Extension, IPM = integrated pest management, MDIP = Meghna-Dhonagoda Irrigation Project, NGO = nongovernment organization, no. = number, PIRDP = Pabna Irrigation and Rural Development Project, TOT = training of trainers.

Source: BWDB. September 2003. Project Completion Report for the Command Area Development Project in Bangladesh. (Loan 1399-BAN(SF))

Appendix 11 35

PROGRESS OF SMALL-SCALE FISHERY DEVELOPMENT

Achievement

Activity Unit MDIP PIRDP CADP 1. TOT training number 17 18 35 2. Selection of water bodies ha 228 514 742

3. Group formation number 228 594 822

4. Training of fish farmers (total) number 2,840 5,045 7,885

5. Credit disbursed lakh taka 74.40 51.91 59.35

6. Recovery of credit lakh taka 51.75 41.26 170.60

7. Savings collection taka 1,270,722 758,547 2,029,269 CADP = Command Area Development Project, ha = hectare, MDIP = Meghna-Dhonagoda Irrigation Project, PIRDP = Pabna Irrigation and Rural Development Project, and TOT = training of trainers.

Source: BWDB. September 2003. Project Completion Report for the Command Area Development Project in Bangladesh. (Loan 1399-BAN(SF))

Appendix 1236

SUMMARY OF BENEFITS AND IMPACTS

Benefits and Impacts

Unit MDIP PIRDP

A. Production of Food 1. Total food grain production (2002–2003) ton 135,286 108,244 2. Total food grain production (benchmark 1996–1997) ton 83,408 47,065 3. Incremental food production in 2001–2002 ton 45,606 48,747 4. Incremental food production in 2002–2003 ton 51,878 61,179

B. Access to Food 1. Access to food per capita

(clean rice/atta per day, national average 0.42 kilograms)

kilogram

0.99

0.63 2. Project impact on food access per capita % increase 46 93

C. Impact of IPM Program 1. Reduced use of pesticides in T. aman season % reduction 84 87

in boro season % reduction 80 80 D. Development of Small-Scale Fisheries 1. Yearly production of fish (2002–2003) ton 665 1,215

E. Beneficiary Training 1. Training on water management, O&M, service charge,

and joint management number 17,566 17,409

2. Training on integrated pest management number 6,470 8,490 3. Training on small-scale fishery development number 2,590 3,635

F. Access to Employment 1. Project impact on employment opportunity in agriculture % increase 50 70 2. Project impact on nonagricultural employment % increase 30–40 10–15

G. Income Increase among the Poor Reflected through 1. Access to minimum clothing % increase 10–20 5–10 2. Access to better housing

% increase 15–20 5–10

H. Calorie intake 1. Below 1,805 calories (national average 22.7%) % 14 23

Cal = calorie, MDIP = Meghna-Dhonagoda Irrigation Project, O&M = operation and maintenance, PIRDP = Pabna Irrigation and Rural Development Project. Source: BWDB. September 2003. Project Completion Report for the Command Area Development Project in

Bangladesh. (Loan 1399-BAN(SF))

Appendix 13 37

STATUS OF DISBURSEMENTS IN SDR AND $ ‘000 Category Category Original Last Amount Amount Undisbursed

No. Name Allocation Revised Cancelled Balance Allocation

01 Civil Works 10,846 12,665 12,800 -135 16,194 17,001 17,326 -181 02 Equipment 1,495 1,454 1,416 38 2,232 1,805 1,906 54 03 Engineering 625 1,063 1,056 7 933 1,392 1,426 6 04 Training/Fellowship 1,851 2,627 2,645 -18 2,764 3,395 3,610 -26 05 Consulting Services 1,070 1,760 1,717 43 1,598 2,360 2,320 60 06 Implementation 1,796 97 91 6 2,682 121 127 8 07 Service Charge 579 548 548 0 864 680 718 1 08 Unallocated 2,165 213 0 213 3,233 368 0 296 Total SDR 20,427 20,427 20,273 154 Total $ 30,500 27,122 27,433 218 SDR = special drawing right. Source: ADB, September 2003. Loan Finance Information System (LFIS)

IMPLEMENTATION SCHEDULE

4 1 2 4 1 3 4 2 3 4 1 2 3 4 1 2 3 4 2 3 4 1 2 3 4 1 2 3 4

7

Integrated Pest Management Part-B

Small Scale Fisheries, Part-C

8 Project Supervisor

Fielding of ConsultantsCommand Area Development Part A

5 On farm Works

6 Training

4 Communications

3 Drainage System

1 Flood Control Embankment

2 Irrigation Facilities

3 2 1 1Quarter

2000 2001 2002 20031996 1997 1998 1999Sl. Activities

Calendar Year No.

Source BWDB. September 2003. Project Completion Report for the Command Area Development Project in Bangladesh. (Loan 1399-BAN(SF))

Appraisal Actual

Appendix 1438

ORGANIZATION SETUP

B

BWDB

Wat

er M

anag

emen

t Org

aniz

atio

ns

BW

DB

Policy Issues

Part A

Part A

Part A P

Director L&R

Project Director PIRDP

Project Director

MDIP

XEN O&M XEN Mech

DCEO

XEN O&M XEN Mech

DCEO

Appendix 15 39

PROJECT STEERING COMMITTEE

BWD

P

DA

E

DO

F

art B Part C

Chief* Water Management

Director T&SO

BME Unit

Training Expert

DAE

Wat

er M

anag

emen

t Org

aniz

atio

ns

BW

DB

Part B

Part B

Part A Pa

ADO&

Pa

ProjeCoordi

Offic

SE Design

Cell

ConsultantPart A

SWMC

DOF

Part C

PROJECT COORDINATION COMMITTEE

P

Project Level

Part C

COORDINATION MDI

CO-ORDINATION PIRD

DAE

DOF

DA

E

DO

F

rt B Part C

B** M II

rt A Part B

ct nator e

ProjecManag

DAE

Consultant Part B

Implementation Issues

Implementation Issues

Part B

IMPLEMENTATION Parts A, B, and C

Parts A, B, and C

DGDAE

Mt er

CoP

DGDOF

Project anager DOF

nsultant art C

NGOs Part C

** Previously Member, O&M * Previously, Director Land and Water Use

Appendix 16 40

STATUS OF COMPLIANCE WITH THE LOAN COVENANTS

Covenant Reference in Loan Agreement

Status of Compliance

The Borrower shall cause BWDB, DAE and DOF to carry out the Project with due diligence and efficiency and in conformity with sound administrative, financial, engineering, environmental and command area development practices.

Section 4.01 (a) Complied with.

In the carrying out the Project and operation of the Project facilities, the Borrower shall perform, or cause to be performed, all obligations set forth in Schedule 6 to this Loan Agreement.

Section 4.01 (b) Generally complied with. Obligations of schedule 6 have been described separately.

In the carrying out the Project and operation of the Project facilities, the Borrower shall perform, or cause to be performed, all obligations set forth in Schedule 6 to this Loan Agreement.

Section 4.01 (b) Complied with.

The Borrower shall ensure that the activities of its departments and agencies with respect to the carrying out of the Project and operation of the Project facilities are conducted and coordinated in accordance with sound administrative policies and procedures.

Section 4.03 Complied with.

In respect of Parts B and C of the Project, the Borrower shall make, or cause to be made, arrangements satisfactory to the Bank for insurance of the equipment financed out of the proceeds of the Loan to such extent and against such risks and in such amounts as shall be consistent with sound practice.

Section 4.04(a) Complied with.

Without limiting the generality of the foregoing, the Borrower undertakes to insure, or cause to be insured, the goods to be procured, if any, for Parts B and C of the Project and to be financed out of the proceeds of the Loan against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable to replace or repair such goods.

Section 4.04 (b) Complied with.

In respect of Parts B and C of the Project, the Borrower shall maintain, or cause to be maintained, records and accounts adequate to identify the goods and services and other items of expenditure financed out of the proceeds of the Loan, to disclose the use thereof in the Project, to record the progress of Parts B and C of the Project (including the cost thereof) and to

Section 4.05 (a) Complied with.

41

Covenant Reference in

Loan Agreement Status of Compliance

reflect, in accordance with consistently maintained sound accounting principles, the operations and financial condition of the agencies of the Borrower responsible for the carrying out of the Project and operation of the Project facilities, or any part thereof.

The Borrower shall (i) maintain, or cause to be maintained, separate accounts for Parts B and C of the Project; (ii) have such accounts and related financial statements audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualifications, experience and terms of reference are acceptable to the Bank; (iii) furnish to the Bank, as soon as available but in any event not later than twelve (12) months after the end of each related fiscal year, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto (including the auditors’ opinion on the use of the Loan proceeds and compliance with the covenants of this Loan Agreement as well as on the use of the procedures for imprest account and statement of expenditures), all in the English language; and (iv) furnish to the Bank such other information concerning such accounts and financial statements and the audit thereof as the Bank shall from time to time reasonably request.

Section 4.05 (b) Complied with. Project accounts maintained at Project Management Unit that were audited each year and submitted to Bank within stipulated time. Progress on settling audit observation were followed up by ADB.

The Borrower shall furnish, or cause to be furnished, to the Bank, in respects of Parts B and C of the Project, all such reports and information as the Bank shall reasonably request concerning (i) the Loan, and the expenditure of the proceeds and maintenance of the service thereof; (ii) the goods and services and other items of expenditure financed out of the proceeds of the Loan; (iii) the Project; (iv) the administration, operations and financial condition of BWDB and agencies of the Borrower responsible for the carrying out of the Project and operation of the Project facilities, or any part thereof; (v) financial and economic conditions in the territory of the Borrower and the international balance-of-payments position of the Borrower; and (vi) any other matters relating to the purposes of the Loan.

Section 4.06 (a) Periodical reports and information received from EAs, including other reports and information as and when requested.

42

Covenant Reference in Loan Agreement

Status of Compliance

Without limiting the generality of the foregoing, the Borrower shall furnish, or cause to be furnished, to the Bank quarterly reports on the carrying out of Parts B and C of the Project. Such reports shall be submitted in such form and in such detail and within such a period as the Bank shall reasonably request, and shall indicate, among other things, progress made and problems encountered during the quarter under review, steps taken on proposed to be taken to remedy these problems and proposed program of activities and expected progress during the following quarter.

Section 4.06 (b) Complied with. Detailed quarterly progress reports received.

Promptly after completion of Parts B and C of the Project, but in any event not later than three (3) months thereafter or such later date as may be agreed for this purpose between the Borrower and the Bank, the Borrower shall prepared and furnish to the Bank a report, in such form and in such detail as the Bank shall reasonably request, on the execution of Parts B and C of the Project, including the costs involved, the performance by the Borrower of its obligations under the Loan Agreement and the accomplishment of the purposes of the Loan.

Section 4.06 (c) Complied with. The Borrower prepared a project completion report immediate after closing the Loan.

The Borrower shall enable the Bank’s representatives to inspect the Project, the goods financed out of the proceeds of the Loan, and any relevant records and documents.

Section 4.07 Complied with. ADB inspected the Project, its goods and records through review missions.

The Borrower shall take all action which shall be necessary on its part to enable BWDB to perform its obligations under the Project Agreement, and shall not take or permit any action which would interfere with the performance of such obligations.

Section 4.08 Complied with.

It is the mutual intention of the Borrower and the Bank that no other external debt owed a creditor other than the Bank shall have any priority over the Loan by way of a lien on the assets of the Borrower. To that end, the Borrower undertakes (i) that, except as the Bank may otherwise agree, if any lien shall be created on any assets of the

43

Covenant Reference in

Loan Agreement Status of Compliance

Borrower as security for any external debt, such lien will ipso facto equally and ratably secure the payment of the principal of, and service charge and any other charge on, the Loan; and (ii) that the Borrower, in creating or permitting the creation of any such lien, will make express provision to that effect.

The provisions of paragraph (a) of this Section shall not apply to (i) any lien created on property, at the time of purchase thereof, solely as security for payment of the purchase price of such property; or (ii) any lien arising in the ordinary course of banking transactions and securing a debt maturing not more than one year after its date.

Section 4.09 (b) Complied with.

The term “assets of the Borrower” as used in paragraph (a) of this Section includes assets of any administrative unit or any agency of the Borrower and assets of any agency of any such administrative unit, including any assets of the Borrower held by Bangladesh Bank and any other institution performing the functions of a central bank for the Borrower.

Section 4.09 (c) Complied with.

Organizational Arrangements

BWDB shall be responsible for the overall coordination for Parts A, B, and C of the Project. Member (O&M) of BWDB shall be responsible for the overall project implementation, particularly Part-A, and will ensure that (i) the necessary staff resources are allocated for the Project; (ii) the Borrower’s GPP are followed; (iii) implementation schedules are met; and (iv) high standards for construction quality are met and maintained.

Schedule 6,

para. 2(a)

Complied with.

Within three months of the Effective Date, the Borrower shall form a Steering Committee chaired by the Secretary, Ministry of Water Resources and comprising representatives of the Project Executing Agencies, for coordination of Project activities. The Steering Committee shall meet as required to decide on major inter-agency matters, mostly of a policy nature.

Schedule 6,

para. 2(b) (i)

Complied with.

The Borrower shall also form an operation- oriented Project Coordination Committee with similar representation as the Steering Committee

Schedule 6,

para. 2(b) (ii)

Complied with.

44

Covenant Reference in

Loan Agreement Status of Compliance

at the national level to supervise Project implementation. The Project Coordination Committee shall meet quarterly or more frequently as necessary.

Project committees, made up of representatives from the Project Executing Agencies, CBOs and local administration, shall also be formed in the Project Area in line with the recommendations of GPP for coordination of Project activities at the grass-roots level.

Schedule 6,

para. 2(b) (iii)

Complied with.

BWDB shall appoint a Project Coordinator, who shall not be below the rank of a Director, for coordination of activities under the various Project components in accordance with this Loan Agreement and the Project Agreement. The Project Coordinator shall also prepare quarterly progress reports and shall work in close coordination with the BMEU.

Schedule 6,

para. 2(c)

Complied with.

Detailed organizational arrangements for different components shall be as follows:

Scheduled 6,

Para. 2(d)

Part-A (i)

The Project Coordinator shall supervise the work of consultants recruited under Part-A in accordance with schedule 5 of this Loan Agreement.

Schedule 6,

para. 2(d) (i), (1)

Complied with.

DLWU shall be responsible for organization of farmers, development of on-farm fields channels (with technical assistance from O&M engineers) and BME.

Schedule 6,

para. 2(d) (i), (2)

Complied with.

Responsibility for implementing all civil work and O&M activities under this component shall be assigned to Executive Engineers in each of the two irrigation systems comprising the Project Area. Each Executive Engineer shall be required to reside on a full-time basis at the Project site where he or she is assigned and to work under the guidance of its superintending engineer.

Schedule 6,

para. 2(d) (i), (3)

Complied with.

The Borrower shall cause BWDB to assign at least three women sub-divisional engineers, one to each of the Executive Engineers at Pabna, Bera, and Meghna Dhonagoda, who shall be responsible for works related to LCSs and EMGs.

Schedule 6,

para. 2 (d) (i), (4)

Compliance tried but did not work. One woman executive engineer and Sub-Divisional Engineer

45

Covenant Reference in Loan Agreement

Status of Compliance

BWDB shall ensure that 10 to 20 percent of the extension overseers assigned by DLWU to the sites shall be women.

(SDE) were appointed. Because of their unwillingness to work in remote places, they are posted in CAD Design Cell. Presently, 3 women extension overseers are working under the Project which is __% of total extension overseers in the Project area.

BWDB shall establish a CAD Design Cell under the Member (Implementation) and Chief Engineer (Design) with at least two Executive Engineers, one from each irrigation system of the Project Area. The CAD Design Cell shall assist BWDB in the survey and design of system improvements and shall be responsible for ensuring that constructed facilities under the Project follow the approved designs. The CAD Design Cell shall review the design for embankment works and, in particular, develop specifications for the necessary level of compaction. In the case of bank protection works at Meghna-Dhonagoda, the CAD Design Cell shall revise the design on the basis that a geotextile underlayer is required and seek the Bank’s approval for the revised design. The CAD Design Cell shall make frequent visits to work sites in the Project Area and keep a record of meetings and site visits which shall be forwarded to both BMEU and the Project Coordinator for inclusion in the quarterly progress reports to be submitted to the Bank.

Schedule 6,

para. 2(d) (i), (5)

Complied with.

Part-B (ii)

The Director General, DAE shall have overall responsibility for implementing this component. Field level coordination shall be the responsibility of the respective DAE District Officers at Pabna and Chandpur who shall liaise as necessary with the responsible BWDB Executive Engineers and superintending engineers and also with the District Officers of DOF

Schedule 6,

Para. 2(d) (ii)

Complied with.

46

Covenant Reference in Loan Agreement

Status of Compliance

Part-C (iii)

The Director General, DOF shall have the overall responsibility for implementing this component. Field level coordination shall be the responsibility of the respective DOF District Officers at Pabna and Chandpur who shall liaise as necessary with respective BWDB Executive Engineers and superintending engineers as well as with the District Officers of DAE.

Schedule 6,

para. 2(d) (iii)

Complied with.

O&M Arrangements

Through its officers at Pabna and Chandpur O&M Circle, BWDB shall be responsible for O&M of the irrigations and drainage systems, as well as the associated flood embankments in the Project Area during the Project implementation and thereafter.

Schedule 6,

para. 3

Complied with.

The Borrower shall (a) ensure the annual inspection of the facilities with the farmers will be made and needs-based budgets developed that prioritize the work by importance, and (b) provide necessary funds through its normal procedures as and when necessary for the O&M of the irrigation, drainage, and flood control facilities in the Project areas. The Borrower shall also cause BWDB to form EMGs comprising landless women to undertake preventive maintenance of the Project’s flood embankment and major irrigation canals.

Schedule 6,

para. 4

Complied with half-heart and partial. Anuual inspection conducted and required budget prepared. The budget always came out with deficit ones due to low collection of irrigation service charges (ISC) for O&M, and short of Government allocation for O&M.

The Borrower shall initiate cost recovery of O&M through collection of irrigation service fees in the Project Areas. Irrigation services fee shall be collected from the farmers through WMAs and a portion thereof shall be passed on to BWDB as part of its irrigation pumping costs. The Borrower shall ensure that the portion of the irrigation pumping costs recovered through irrigation service fees progressively increases so that full recovery of the electricity cost for irrigation

Schedule 6,

para. 5

Cost recovery for O&M initiated, but progress is far below target. There is reluctance from the farmers to pay and BWDB officials need to push the issue more. Other factors causing this low progress might be due

47

Covenant Reference in Loan Agreement

Status of Compliance

pumping shall be achieved by the fiscal year 2000/2001.

to inadequate design of ISC collection system such as lack of ways enforceable legal right to collect service charge, and penalty for non-payment. ADB’s ongoing JMREMP is examining it to come out with a refined design.

The Borrower and BWDB shall initiate leasing of the canals, embankments, borrowed pits and drainage ditches to WMAs and WMFs under appropriate arrangements satisfactory to the Bank in return for their assuming the O&M of these facilities as mentioned in paragraph 5 above. WMAs shall be assisted in developing income-generating schemes on the leased structures so that the income generated therefrom can be used by them to offset the cost of minor maintenance. The Borrower and BWDB shall, depending on the capability of WMAs and WMFs, lease all the lands and canals in the Project Area within 12 years of the Effective Date.

Schedule 6,

para. 6

Compliance not yet done, BWDB officials need to be pro-active.

Formation of CBOs and Their Participation in Project Activities

Staff of DLWU shall, as soon as possible, undertake activities to assist Project beneficiaries to form CBOs. Prior to actual formation of CBOs, the DLWU staff shall identify the Project beneficiaries who shall form such CBOs and ensure their participation in meetings relating to preliminary surveys, collection of date, prioritization of proposed work, and finalization of design and implementation schedules for project activities.

Schedule 6,

para. 7

Complied with, BWDB officials need to be pro-active.

The Borrower and BWDB shall, with assistance of consultants appointed under Schedule 5 to this Loan Agreement, assist Project beneficiaries in drafting of by-laws and registration of CBOs. In particular, BWDB shall ensure that

Schedule 6,

para. 8

Complied with.

48

Covenant Reference in Loan Agreement

Status of Compliance

disadvantaged groups within the Project Area are represented including, but not limited to, the landless, the poor, the elderly, women and small fishermen.

Within six months after the Effective Date, the Borrower shall submit to the Bank an action plan acceptable to the Bank, which shall include, among other things, the legal arrangements for the registration of WMAs as legal entities under the Cooperative Societies Ordinance, 1984 of the Borrower. Such legal arrangements shall, among other things, specially provide for WMAs to (a) own and lease land and facilities; (b) enter into contracts with third parties; (c) open bank accounts and borrow funds; (d) enforce collective decisions on individual members; (e) collect fees, including fees for O&M, from members and other beneficiaries of facilities owned and managed by the WMAs; (f) sanction delinquent members (through fines, disconnection of water and other appropriate modes); and (g) associate with other WMAs to form broader groups such as FWMAs vested with similar powers.

Schedule 6,

para. 9 (a)

Complied with.

The Borrower shall ensure that the by-laws of WMAs assure representation of disadvantaged groups within the Project areas concerned, including but not limited to, the landless, the poor, the elderly, women, and small fishers.

Schedule 6,

para. 9 (b)

Complied with. By-laws for WMGs prepared in 1997 and for WMAs in 1998 incorporating pro-gressive amendments to the Co-operative Ordinance 1984. Following GPP-94 members of MWGs were limited to farmers but GPWM-2001 included all stake-holders.

Within twelve months after the Effective Date, the Borrower shall submit to the Bank a proposal, acceptable to the Bank and WMAs concerned, for the organization of the WMAs into WMFs (at least one in each of the two Project areas), which shall be independent legal entities, with article of association, having the same power as described in paragraph 9(a) above, and registered in the form of public non-profit corporations governed under the Company Act 1994 of the Borrower as subsidiaries of BWDB.

Schedule 6,

para. 10

Complied with.

49

Covenant Reference in Loan Agreement

Status of Compliance

The Borrower shall complete, in a manner satisfactory to the Bank, registration of WMAs and WMFs with appropriate agencies as required by the relevant laws and regulations of the Borrower, in accordance with the action plan and the proposal accepted by the Bank pursuant to paragraphs 9 and 10 above, respectively, not later than two and a half years after the Effective Date.

Schedule 6,

para. 11

Complied with.

Training and Human Resources Development

Part-A

Training and human resource development activities under Part A of the Project shall comprise the following:

Training of farmers in organizing and managing their CBOs, including training of women in accounting and bookkeeping to enable them to play an active role in the WMAs, especially in the collection of irrigation fees and managing the accounts. Demonstration plots shall be developed for training of farmers. Consultants appointed under Schedule 5 to this Loan Agreement shall identify other training needs of the farmers and BWDB shall submit to the Bank a training program for WMAs within one year of the Effective Date. Such training program may include engagement of NGOs for organizing and providing other support to WMAs.

Schedule 6,

para. 12 (a)

Complied with partly, BWDB needs to be more active in this respect.

BWDB staff, mainly from DLWU, shall be provided short-term additional training in on-farm water management. Consultants engaged under Schedule 5 to this Loan Agreement shall develop a program for this training and the same shall be submitted by BWDB to the Bank within six months of the Effective Date.

Schedule 6,

para. 12 (b)

Complied with.

On-the-job training shall be provided by the consultants engaged in Schedule 5 to this Loan Agreement to BWDB staff in the O&M Wing in the preparation of need-based O&M budget.

Schedule 6,

para. 12 (c)

Complied with.

BWDB, with assistance of consultants engaged in Schedule 5 to this Loan Agreement, shall

Schedule 6,

para. 12 (d)

Complied with.

50

Covenant Reference in

Loan Agreement Status ofCompliance

make an assessment of the training requirements for DLWU extension workers in assisting farmers to organize CBOs. Such training may include group formation and resolution of conflicts.

Part B

DAE and other concerned agencies, and NGOs field staff, shall be trained as IPM trainers at three training sessions, each lasting one crop season of about 90 days.

Schedule 6,

para. 13

Complied with.

The IPM trainers shall train about 9,000 farmers in IPM techniques over a three-year period, while farmers several times that number will receive training “through doing”. DAE shall submit to the Bank for its approval a comprehensive training program within 12 months of the Effective Date.

Schedule 6,

para. 14

Complied with.

Part C

More than one hundred NGO personnel and 5,000 villagers, particularly women, shall be trained in initiating and maintaining small-scale fisheries. Initial inputs (seed costs) shall be financed under the Project for four years and the same shall be recovered and utilized in the subsequent years by the NGOs. The contractual arrangements shall be finalized after discussions between the NGOs and DAE with the assistance of the consultants.

Schedule 6,

para. 15

Complied with

DOF shall submit to the Bank for its approval a comprehensive training program within 12 months of the Effective Date.

Schedule 6,

para. 16

Complied with.

Project Reviews

Project reviews by the Bank shall be coordinated with periodic surveys that will be part of the program for monitoring the Project benefits, and social and environmental impacts. The review missions will periodically reassess the key assumptions on which the Project is based, namely, that: (i) sustained yield increases can be achieved by all farmers; (ii) WMAs, including WWUGs and FIWUGS, can be formed and can operate effectively under an appropriate legal framework; (iii) facilities of sound quality can be constructed in accordance with approved designs; (iv) O&M budgets are available and can

Schedule 6,

para. 17

Being complied with.

51

Covenant Reference in

Loan Agreement Status ofCompliance

be effectively deployed; (v) the cost recovery plan can be implemented successfully; (vi) the Project Executing Agencies, communities and NGOs can work together effectively to achieve tangible beneficiary participation; (vii) extension programs can reach beneficiaries and resolve emerging technical issues; (viii) the small-scale fisheries program can be correctly targeted and effectively managed to achieve benefits for landless and marginal people, especially women; and (ix) the LCS and EMG programs can be targeted at landless and marginal landholders, especially women, and that the EMG program is technically sound and can succeed in promoting good utilization of the embankments in the broader community.

A comprehensive mid-term review shall be undertaken by the Bank and the Project Executing Agencies after two-and-a-half years of the Effective Date. The mid-term review shall reassess Project strategies in the light of feedback provided by socioeconomic data collected by BMEU, examine progress, particularly the formation and registration of WMAs, and address problems encountered in implementation. The mid-term review shall also evaluate the information collected as part of the monitoring program, examine changes in the social conditions of the Project beneficiaries, assess their views on Project activities, review the appropriateness of Project design and scope, check physical progress and adequacy of local funding, and review the adequacy and performance of project staff and consultants.

Schedule 6,

para. 18

Complied with.

Environment

The Borrower shall cause the Project Executing Agencies to implement, operate and maintain the Project in a manner consistent with the Bank’s Environmental Guidelines for Selected Agricultural and Natural Resources Development Projects and the Borrower’s environmental standards. The Borrower shall monitor the Project’s environmental impact to allow timely intervention if adverse impact should occur.

Schedule 6,

para. 19

Complied with.

52

Covenant

Reference in Loan Agreement

Status of

Compliance BMEU

The Borrower shall cause:

BWDB to establish a BMEU within the DLWU to, among other things, provide monitoring and guidance throughout the Project.

Schedule 6,

para. 20 (a)

Complied with.

With the assistance of consultants appointed for Part A of the Project under Schedule 5 to this Loan Agreement, BMEU shall prepare a BME plan for the Project and submit the same to the Bank within one year of the Effective Date.

Schedule 6,

para. 20 (b)

Complied with.

The BME plan shall be comprehensive (covering key economic, health, social and environmental indicators) and action-oriented so that the data collected thereunder is analyzed and presented in a format that allows assessment of trends and highlights needs for interventions.

Schedule 6.

Para. 20 (c)

Complied with.

Restructuring of BWDB

The Borrower shall consult with the Bank on any proposed revision to the order and reorganization or restructuring of BWDB.

Schedule 6,

para. 21

Complied with.

BWDB shall make available, promptly as needed, the funds, facilities, services, equipment, land, and other resources which are required, in addition to the proceeds of the Loan, for the carrying out of the Project.

Project Agreement Section 2.02

Complied with but in a limited way.

In the carrying out of the Project, BWDB shall employ competent and qualified consultants and contractors, acceptable to the Bank, to an extent and upon terms and conditions satisfactory to the Bank.

Section 2.03 (a) Complied with.

BWDB shall carry out the Project in accordance with plans, design standards, specifications, work schedules and construction methods acceptable to the Bank. BWDB shall furnish, or cause to be furnished, to the Bank, promptly after their preparation, such plans, design standards,

Section 2.04 Complied with.

53

Covenant

Reference in Loan Agreement

Status of

Compliance specifications and work schedules, and any material modifications subsequently made therein, in such detail as the Bank shall reasonably request.

Without limiting the generally of the foregoing, BWDB undertakes to insure, or cause to be insured, the goods to be imported for the Project and to be financed out of the proceeds of the Loan against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable to replace or repair such goods.

Section 2.05 (b) Complied with.

BWDB shall (i) maintain, or cause to be maintained separate accounts for Part A of the Project and for its overall operation; (ii) have such accounts and related financed statements (balance sheet, statement of income and expenses, and related statements) audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualifications, experience and terms of reference are acceptable to the Bank; and (iii) furnish to the Bank, promptly after their preparation but in any event not later than twelve (12) months after close of the fiscal year to which they relate, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto (including the auditors’ opinion on the use of the Loan proceeds and compliance with the covenants of this Loan Agreement as well as on the use of the procedures for imprest account and statement of expenditures), all in the English language. BWDB shall furnish to the Bank such further information concerning such accounts and financial statements and the audit thereof as the Bank shall from time to time reasonably request.

Section 2.09 (a) Being complied with.

BWDB shall enable the Bank, upon the Bank’s request, to discuss BWDB’s financial statements and its financial affairs from time to time with BWDB’s auditors, and shall authorize and require any representative of such auditors to participate in any such discussions requested by the Bank, provided that any such discussion shall be conducted only in the presence of an authorized

Section 2.09 (b) Complied with.

54

Covenant Reference in Loan Agreement

Status ofCompliance

officer of BWDB unless BWDB shall otherwise agree.

BWDB shall furnish to the Bank all such reports and information as the Bank shall reasonably request concerning (i) the Loan and the expenditure of the proceeds; (ii) the goods and services and other items of expenditure financed out of the proceeds; (iii) the Project; (iv) the administration, operations and financial condition of BWDB; and (v) any other matters relating to the purpose of the loan.

Section 2.08 (a) Complied with.

Without limiting the generality of the foregoing, BWDB shall furnish to the Bank quarterly reports on the execution of the Project and on the operation and management of the Project facilities. Such reports shall be submitted in such form and in such detail and within such a period as the Bank shall reasonably request, and shall indicate, among other things, progress made and problems encountered during the quarter under review, steps taken or proposed to be taken to remedy these problems, and proposed program of activities and expected progress during the following quarter.

Section 2.08 (b) Being complied with.

Promptly after physical completion of the Project, but in any event not later than three (3) months thereafter or such later date as the Bank may agree for this purpose, BWDB shall prepare and furnish to the Bank a report, in such form and in such detail as the Bank shall reasonably request, on the execution and initial operation of the Project, including its cost, the performance by BWDB of its obligations under this Project Agreement and the accomplishment of the purposes of the Loan.

Section 2.08 (c) Complied with

LIST OF REPORTS AND DOCUMENTS PREPARED FOR CADP

No. Name of Report Purpose of the report 1. Report on Seepage Control and Flood

Embankment Protection in connection with PIRDP and MDIP, December 1996 (D-61)

The report discusses the problems of (i) seepage of canal dykes and embankment bases and (ii) erosion to embankment slope and riverbank that existed as a problem for MDIP and PIRDP before starting CADP and suggested technical options for solutions to the problems.

2. Report on Training Program, April 1997 (D-72)

The report gives the program of training that would be conducted for command area development activities for the beneficiaries as well as for project officials. Major subjects of the training program are (i) water management practices, (ii) O&M of irrigation systems, (iii) on-farm development, (iv) organizing beneficiaries for participation, (v) cost recovery, (f) environmental issues, and (vi) women in development.

3. Benefit Monitoring and Evaluation Plan, November 1997 (D-153)

The report is the initial plan for benefit monitoring and evaluation (BME) of the project giving the nature, scope, and methodology of the BME system using mainly (i) service-delivery indicators (infrastructure construction), (ii) service use indicators (training of beneficiaries, irrigation coverage), and (iii) effect indicators (increase in production, income, and employment and reduction in poverty).

4. Guidelines for Labor Contracting Societies (LCSs), February 1998 (D127)

The report gives the formulation and procedure of implementation of earthworks of smaller contracts through LCSs as part of increase in employment opportunity, poverty alleviation, and participation of project people in civil works of the rehabilitation project.

5. Guidelines for Embankment Maintenance Groups (EMG), February 1998 (D-126)

The report gives the procedure for doing routine maintenance work on embankments employing poor and destitute females in groups as part of a poverty alleviation program and participation of local poor in project maintenance.

6. Community Development Report, May 1998 (D170)

The report gives the status of, and issues related to, the community-development activities of the project.

7. Mathematical Model Study for Evaluation and Selection of Design Parameters for Irrigation and Drainage System, December 1998, SWMC Volume-I MDIP(D-211)

The report gives the basis of the hydraulic designs of the existing irrigation and drainage systems of Meghna-Dhonagoda Irrigation Project.

Appendix 17 55

Name of Report What for the report is 8. Mathematical Model Study for Evaluation

and Selection of Design Parameters for Irrigation and Drainage System, December 1998, SWMC Volume-II PIRDP (D-205)

The report gives the basis of the hydraulic designs of the existing irrigation and drainage systems of PIRDP Project.

9. Quality Assurance Procedure, May 1999 (D-208)

The report deals with the procedures to implement civil works aiming to achieve construction of them as per design and specifications.

10. Operation and Maintenance Procedures for MDIP, April 1999. June 1999 in Bangla (D-215A)

The report and its Bangla version give procedures to be followed in brief for O&M involving WMOs for MDIP.

11. Operation and Maintenance Procedures for PIRDP, April 1999, June 1999 in Bangla (D-214A)

The report and its Bangla version give procedures to be followed in brief for O&M involving WMOs for PIRDP

12. Final Operation and Maintenance the Manual of MDIP August, 1999 (D-196A)

The manual gives detailed procedures for system operation, maintenance, budgeting, and performance involving system users of MDIP.

13. Final Operation and Maintenance Manual of PIRDP, August 1999 (D-195A)

The manual gives detailed procedures for system operation, maintenance, budgeting, and performance involving system users of PIRDP

14. Proceedings of O&M Workshops Held in MDIP and PIRDP, January 2000 (D-256)

The report gives the proceedings of the two workshops held at Bera (PIRDP) on 22-23 September 1999 and at Matlab (MDIP) on 11-12 October 1999 on the O&M procedures of both the projects.

15. Report on Post Work Checks, September 2000 Meghna-Dhonagoda O&M Division (MDIP) (D-247) Bera O&M Division, PIRDP (D249) Pabna O&M Division, PIRDP (D248)

These reports give O&M Division wise post work sections with superimposed design sections of irrigation canals, canal dykes, drainage channels, and embankments rehabilitated during 1999–2000.

16. River Erosion Prevention and Morphology Study of PIRDP, November 2000 (D-262)

These two study reports give morphological changes and trends of riverbank erosion and alternative measures for erosion control at the pre-feasibility level including immediate and long-term measures of riverbank protection of the Jamuna at PIRDP and of the Meghna at MDIP sites.

17. River Erosion Prevention and Morphology Study of MDIP, November 2000 (D-261)

18. Final Report on Training of Beneficiaries and Stakeholders in Pabna IRD Project, April 2001, Sheba Society (D-270)

These two reports give information on the training activities conducted by the two NGOs (DORP and Sheba Society) for beneficiaries and stakeholders on water management practices, O&M of system facilities, on-farm activities, and cost recovery for MDIP and PIRDP.

19. Final Report on Training of Beneficiaries and Stakeholders in Meghna-Dhonagoda Irrigation Project, July 2001, DORP (D269)

20. Construction of Bank Protection Works (Immediate Measures under the Government Financing) Monitoring / Status Report, April, 2001 (D-268), Mid-June, 2001 (D-31 1), End September, 2001 (D298)

The reports give information on the implementation of. immediate riverbank protection works by single-size geo- textile bags taken up and done to protect the flood embankments of two projects (PIRDP and MDIP) from riverbank erosion of the Jamuna and Meghna.

56

57

Name of Report What for the report is 21. Establishment of Demonstration Plots in

Meghna-Dhonagoda Irrigation Project and Pabna Irrigation and Rural Development Project for the year 1999-2000 and 2000-2001, July 2001 (BMEU) (D-330)

The report gives optimum time of transplanting, the yield gap between farmers’ practice and researchers’ recommendations, the most suitable rice variety for the agro-climatic zone, and most profitable cropping pattern, etc., in CADP areas.

22. Proceedings of the First Mini Workshop on Guidelines for Participatory Water Management with Special Focus on Command Area Development Project, Dhaka, September 13, 2001 (D-292)

The booklet gives the deliberations and discussions on the new guidelines for participatory water management 2001 and recommendations for CADP, including major points of difference with the earlier guidelines for people's participation (1994)

23. Guide for Fertilizer and Irrigation Management in Command Area Development Project, January 2002 (BMEU) (D-331)

The report gives the fertility status of soils, soil and fertilizer management, fertilizer recommendation; crop water requirement, irrigation scheduling, and fertilizer response to irrigation.

24. Validation of Decision Support System to Support Annual CADP Maintenance, MDIP, March 2002 (SWMC) (D-335)

The report gives a computerized management system of U2 system of MDIP.

25. Preparation of Chawkbandi Maps Final Report, June 2002, House of Consultants, MDIP (D-358) PIRDP (D-359)

The reports of PIRDP and MDIP gives maps of turnouts and scheme maps of secondary and tertiary canals in Chawkbandi with land-ownership lists as per the settlement record.

25. O&M Generalized Plan Format, July 2002, (BMEU) (D-339)

This gives suggested formats for preparing annual O&M plans.

26. Gender Action Plan, September 2002 (D-347)

The action plan gives strategic and practical plans to address gender needs.

27. Operational Instructions on O&M for Joint Management, September 2002 (D-346)

The report gives specific O&M responsibilities of BWDB field personnel and WMOs.

28. Proceedings of the Workshop on Financial Accounting Auditing and Internal Control of ADB Assisted Projects of BWDB, 13-14 November 2002 (D-353)

Organized jointly by BWDB and FAPAD, and sponsored by CADP, the workshop proceedings give procedure and practical problems faced in accounting and auditing and recommendations for solutions to the audit problems that came out in the workshop.

BDWB – Bangladesh Water Development Board BMEU – Benefit Monitoring and Evaluation Unit CADP – Command Area Development Project FAPAD – Foreign Aided Project Audit Directorate MDIP – Meghna-Dhonagoda Irrigation Project O&M – Operation and Maintenance PIRDP – Pabna Irrigation and Rural Development Project SWMC – Surface Water Modeling Centre Source: BWDB. September 2003. Project Completion Report for the Command Area Development Project in

Bangladesh. (Loan 1399-BAN(SF))

Appendix 1858

ECONOMIC AND FINANCIAL ANALYSES

1. The Command Area Development Project (CADP) intensified economic and organizational activities in the project area, especially on-farm activities. In addition to higher agricultural production’s contribution to the gross domestic product, the creation of an additional 3 million person-days of agricultural labor was the direct effect of the project intervention. 2. Methods and Estimation Assumptions. Benefits over costs of project interventions were assessed by conducting an economic and financial analysis. The analysis estimated economic costs of all crop outputs valued at international trade prices, with adjustments for quality, transport, storage, processing, and marketing costs to reflect world prices at the farm gate. Project inputs and outputs, including for non-traded goods except agricultural labor conversion factors, were used to convert market prices to economic prices and financial costs to economic costs. (For conversion factors at shadow prices see tables A18.4 and A18.5.) A conversion factor of 0.85 has been applied to convert the market wage rate to the shadow wage rate for all categories of agricultural wage labor. The economic life of the project is assumed to be 20 years, with the base period starting in 1997–1998, the actual beginning of the CADP. 3. The present estimates have been done following the methodology of the appraisal estimates, and the benefits could be attributed to present project activities. Based on the direct benefits and the costs, the Project yielded an economic internal rate of return of 14% for the Meghna-Dhonagoda Irrigation Project (MDIP), less than the 21.94% of the appraisal projection (based on a 12% opportunity cost of capital), and 19% for the Pabna Irrigation and Rural Development Project (PIRDP), also less than the 22.10% of the appraisal projection. In the present study, the economic internal rate of return (EIRR) was estimated for the subprojects separately at 20 years from project completion. The appraisal estimate also indicated that the project will increase incomes by from 14% to 33% (as a wide range of income variation was anticipated). The small-scale fisheries development (SSFD) component yielded an EIRR of 32.45% in the ADB appraisal but rose in the current estimate to 36%. Cross-section survey data were used in estimating EIRRs and for socio-cultural analysis (details in section XI). 4. Costs and production data were collected for the crops grown in the year 2005. Rainy season and autumn rice was affected by drainage congestion owing to excessive rainfall in the MDIP area, and the PIRDP area was also affected by water-logging problems and electricity failures affecting pump operations. So the income generated by the project during the study year was not as was expected earlier, and this deviation from appraisal estimates brought down the EIRR of the project. This was more so as the bases of EIRR estimates were farmers’ income derived from the crop production. This deviation is not unlikely when yield for crops, which are prime sources of income for farm households, varies from year to year. But the subprojects appear viable in terms of economic returns (real growth), yielding more than the opportunity cost of capital of 12%. The survey estimate of EIRR for the MDIP is 14% (Table A18.1) and 19% for PIRDP (Table A18.2). The SSFD component yielded an EIRR of 36% (Table A18.3). 5. A sensitivity analysis was conducted to assess the project situation at a 10% decrease in incremental benefits or a 10% increase in project implementation costs, retaining the project benefit stream at the present rate. The MDIP currently is at the threshold of operation because of recurring water-logging problem during the rainy season and the many dysfunctional irrigation turnouts and schemes. A further reduction in benefits of 10% will decrease the EIRR of the MDIP to 3%, well below the 12% opportunity cost of capital. This also would be true if operation costs rose by 10%, which would bring the EIRR down to 10%, which is not viable in the long

59

run. Such high sensitivity of estimates is likely when dealing with samples that are relatively small (Appendix 19). Steps have to be taken to ensure there are no crop failures and to reduce operational costs. Surface water irrigation has to be increased substantially as projected in the feasibilities studies. In the PIRDP, a 10% reduction in benefits generates an EIRR of 7%, which is not viable for running the project. A 10% increase in operational costs in the PIRDP generates an EIRR of 14% and allows project activities to continue. However, steps must be taken to increase project revenues, and lower costs would improve subproject viability. 6. Farmers in both project areas are using adequate chemical fertilizers for almost all crops. Most crop yields have increased progressively with the implementation of the CADP. The yield of high yielding boro rice increased by about 21% in the MDIP and 39% in the PIRDP since before the CADP. Most crops are experiencing a similar trend, which increases incomes for farm households and constitutes a direct contribution of the project. In the PIRDP, adopting high value crops such as vegetables and spices has been very encouraging. At Matlab North in the MDIP area, tree planting on higher ground is a new phenomenon. Many orchards of guava and papaya and timber plantations have been planted. Changing cropping patterns toward higher-value crops and increasing cropping frequency has demonstratively gathered momentum in Bera and Santhia Upazilas (with flood control and drainage (FCD) support), more so than in Shahjadpur (a neighboring upazila of the PIRDP area), which is also flood prone, as Bera-Santhia was before the FCD structures.

7. Reviewing and analyzing the fishery-related data led to an EIRR of 36%. The scope of open water fisheries has fallen with the establishment of embankments, and fish culture has taken a new turn. Pond aquaculture has increased substantially, which increased production of exotic species. 8. The CADP positively changed cropping patterns and increased crop cultivation frequency. Beneficiaries moved from local varieties to high yielding or improved crop varieties, particularly cereals. In addition, the usual growing area that had produced only one crop now produces separate non-cereal crops, including vegetables, or has seen orchards, timber tree plantation, or fish ponds established. The cropped area for high-yielding crop varieties is increasing faster than the cropped area for local varieties. The areas of high-yielding aman rice increased by about 16%, and of improved, transplanted aman rice by about 55% over benchmark values in 1996. The yield of high-yielding aman rice increased by about 5%, and of improved, transplanted aman rice by about 30% over the pre-CADP situation The CADP interventions have thus directly exerted positive influence on agricultural productivity.

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Table A18.1: Economic Cost Benefit Stream Meghna-Dhonagoda Irrigation Project

(lakh taka in real terms)

Year Capital Cost

O&M Cost

Total Cost

With Project Benefit

Without Project Benefit

Incremental Benefit

Net Cash Flow

1997–1998 593.44 0 593.44 3,740.55 3,595.28 145.27 (448.17) 1998–1999 1,562.88 0 1,562.88 4,083.04 3,595.28 487.76 (1,075.12) 1999–2000 1,841.28 0 1,841.28 4,311.36 3,595.28 716.08 (1,125.2) 2000–2001 2,064.68 0 2,064.68 4,624.75 3,595.28 1,029.47 (1,035.21) 2001–2002 2,761.95 0 2,761.95 5,723.13 3,595.28 2,127.85 (634.1) 2002–2003 1,955.86 0 1,955.86 5,861.46 3,595.28 2,266.18 310.32 2003–2004 558.78 558.78 5,444.32 3,595.28 1,849.04 1,290.26 2004–2005 558.78 558.78 5,444.32 3,595.28 1,849.04 1,290.26 2005–2006 558.78 558.78 5,444.32 3,595.28 1,849.04 1,290.26 2006–2007 558.78 558.78 5,444.32 3,595.28 1,849.04 1,290.26 2007–2008 558.78 558.78 5,444.32 3,595.28 1,849.04 1,290.26 2008–2009 558.78 558.78 5,444.32 3,595.28 1,849.04 1,290.26 2009–2010 558.78 558.78 5,444.32 3,595.28 1,849.04 1,290.26 2010–2011 558.78 558.78 5,444.32 3,595.28 1,849.04 1,290.26 2011–2012 558.78 558.78 5,444.32 3,595.28 1,849.04 1,290.26 2012–2013 558.78 558.78 5,444.32 3,595.28 1,849.04 1,290.26 2013–2014 558.78 558.78 5,444.32 3,595.28 1,849.04 1,290.26 2014–2015 558.78 558.78 5,444.32 3,595.28 1,849.04 1,290.26 2015–2016 558.78 558.78 5,444.32 3,595.28 1,849.04 1,290.26 2016–2017 558.78 558.78 5,444.32 3,595.28 1,849.04 1,290.26 2017–2018 558.78 558.78 5,444.32 3,595.28 1,849.04 1,290.26 2019–2020 558.78 558.78 5,444.32 3,595.28 1,849.04 1,290.26 2020–2021 558.78 558.78 5,444.32 3,595.28 1,849.04 1,290.26 2021–2022 558.78 558.78 5,444.32 3,595.28 1,849.04 1,290.26 2022–2023 558.78 558.78 5,444.32 3,595.28 1,849.04 1,290.26 2023–2024 558.78 558.78 5,444.32 3,595.28 1,849.04 1,290.26 2024–2025 558.78 558.78 5,444.32 3,595.28 1,849.04 1,290.26 2025–2026 558.78 558.78 5,444.32 3,595.28 1,849.04 1,290.26 2026–2027 558.78 558.78 5,444.32 3,595.28 1,849.04 1,290.26 2027–2028 558.78 558.78 5,444.32 3,595.28 1,849.04 1,290.26

EIRR = 14%( ) = negative, EIRR = economic internal rate of return, O&M = operation and maintenance. Source: Calculated based on the approach set in RRP.

Sensitivity analysis: (i) If benefits reduce by 10%, the EIRR is 3%. (ii) If operational costs increase by 10%, the EIRR is 10%.

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Table A18.2: Economic Cost Benefit Stream Pabna Irrigation and Rural Development Project

(lakh taka in real terms)

Year Capital

Cost O&M Cost

Total Cost

With Project Benefit

Without Project Benefit

Incremental Benefit

Net Cash Flow

1997–1998 981.99 0 981.99 3,779.8 3,514.28 265.52 (716.47) 1998–1999 1,235.3 0 1,235.3 3,981.29 3,514.28 467.01 (768.29) 1999–2000 1,773.68 0 1,773.68 4,517.92 3,514.28 1,003.64 (770.04) 2000–2001 1,856.15 0 1,856.15 5,201.32 3,514.28 1,687.04 (169.11) 2001–2002 2,593.55 0 2,593.55 5,403.85 3,514.28 1,889.57 (703.98) 2002–2003 1,973.68 0 1,973.68 5,458.44 3,514.28 1,944.16 (29.52) 2003–2004 532.18 532.18 5,828.54 3,514.28 2,314.26 1,782.08 2004–2005 532.18 532.18 5,828.54 3,514.28 2,314.26 1,782.08 2005–2006 532.18 532.18 5,828.54 3,514.28 2,314.26 1,782.08 2006–2007 532.18 532.18 5,828.54 3,514.28 2,314.26 1,782.08 2007–2008 532.18 532.18 5,828.54 3,514.28 2,314.26 1,782.08 2008–2009 532.18 532.18 5,828.54 3,514.28 2,314.26 1,782.08 2009–2010 532.18 532.18 5,828.54 3,514.28 2,314.26 1,782.08 2010–2011 532.18 532.18 5,828.54 3,514.28 2,314.26 1,782.08 2011–2012 532.18 532.18 5,828.54 3,514.28 2,314.26 1,782.08 2012–2013 532.18 532.18 5,828.54 3,514.28 2,314.26 1,782.08 2013–2014 532.18 532.18 5,828.54 3,514.28 2,314.26 1,782.08 2014–2015 532.18 532.18 5,828.54 3,514.28 2,314.26 1,782.08 2015–2016 532.18 532.18 5,828.54 3,514.28 2,314.26 1,782.08 2016–2017 532.18 532.18 5,828.54 3,514.28 2,314.26 1,782.08 2017–2018 532.18 532.18 5,828.54 3,514.28 2,314.26 1,782.08 2019–2020 532.18 532.18 5,828.54 3,514.28 2,314.26 1,782.08 2020–2021 532.18 532.18 5,828.54 3,514.28 2,314.26 1,782.08 2021–2022 532.18 532.18 5,828.54 3,514.28 2,314.26 1,782.08 2022–2023 532.18 532.18 5,828.54 3,514.28 2,314.26 1,782.08 2023–2024 532.18 532.18 5,828.54 3,514.28 2,314.26 1,782.08 2024–2025 532.18 532.18 5,828.54 3,514.28 2,314.26 1,782.08 2025–2026 532.18 532.18 5,828.54 3,514.28 2,314.26 1,782.08 2026–2027 532.18 532.18 5,828.54 3,514.28 2,314.26 1,782.08 2027–2028 532.18 532.18 5,828.54 3,514.28 2,314.26 1,782.08

EIRR = 19% ( ) = negative, EIRR = economic internal rate of return, O&M = operation and maintenance. Source: Calculated based on the approach set in RRP.

Sensitivity analysis:

(i) If benefits reduce by 10%, the EIRR is 7% (ii) If operational costs increase by 10%, the EIRR is 14%

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Table A18.3: Economic Internal Rate of Return for Fisheries as a Project Component (lakh taka in real terms)

Year Capital Cost O&M Cost

Total Cost

With Project Benefit

Without Project Benefit

Incremental Benefit

Net Cash Flow

1997–1998 9.77 0 9.77 141.88 127.11 14.77 5.00 1998–1999 46.53 0 46.53 154.18 127.11 27.07 (19.46) 1999–2000 136.07 0 136.07 160.88 127.11 33.77 (102.30) 2000–2001 78.26 0 78.26 206.8 127.11 79.69 1.43 2001–2002 0 0 233.21 127.11 106.1 106.10 2002–2003 0 0 233.21 127.11 106.1 106.10 2003–2004 0 0 233.21 127.11 106.1 106.10 2004–2005 0 0 233.21 127.11 106.1 106.10 2005–2006 0 0 205.23 127.11 78.12 78.12 2006–2007 0 0 205.23 127.11 78.12 78.12 2007–2008 0 0 205.23 127.11 78.12 78.12 2008–2009 0 0 205.23 127.11 78.12 78.12 2009–2010 0 0 205.23 127.11 78.12 78.12 2010–2011 0 0 205.23 127.11 78.12 78.12 2011–2012 0 0 205.23 127.11 78.12 78.12 2012–2013 0 0 205.23 127.11 78.12 78.12 2013–2014 0 0 205.23 127.11 78.12 78.12 2014–2015 0 0 205.23 127.11 78.12 78.12 2015–2016 0 0 205.23 127.11 78.12 78.12 2016–2017 0 0 205.23 127.11 78.12 78.12 2017–2018 0 0 205.23 127.11 78.12 78.12 2019–2020 0 0 205.23 127.11 78.12 78.12 2020–2021 0 0 205.23 127.11 78.12 78.12 2021–2022 0 0 205.23 127.11 78.12 78.12 2022–2023 0 0 205.23 127.11 78.12 78.12 2023–2024 0 0 205.23 127.11 78.12 78.12 2024–2025 0 0 205.23 127.11 78.12 78.12 2025–2026 0 0 205.23 127.11 78.12 78.12 2026–2027 0 0 205.23 127.11 78.12 78.12 2027–2028 0 0 205.23 127.11 78.12 78.12

EIRR – 36% ( ) = negative, EIRR = economic internal rate of return, O&M = operation and maintenance.

Table A18.4: Economic Prices of Agricultural Input/Output

MDIP Crop Unit Market Price Conversion

factor Economic Price

(taka) Output Price

Aus HYV kg 8.03 1.05 8.43 Jute HYV kg 13.50 1.35 18.23 Aman HYV kg 8.50 1.05 8.92 Aman LIV kg 9.00 1.05 9.45 Boro HYV kg 7.64 1.05 8.03 Potato HYV kg 6.00 0.90 5.40 Mustard kg 10.33 0.90 9.30 Wheat kg 15.00 1.39 20.85 Lentil kg 15.00 0.90 13.50 Sugarcane taka/ha 55,575.00 0.90 50,017.50

Input Price Aus HYV taka/ha 1,544.55 1.05 1,621.78 Aman HYV taka/ha 1,961.47 1.05 2,059.54 Aman LIV taka/ha 4,446.00 1.05 4,668.30 Boro HYV taka/ha 3,069.94 1.05 3,223.43 Potato HYV taka/ha 2,223.00 1.05 2,334.15 Mustard taka/ha 855.00 1.05 897.75 Sugarcane taka/ha 444.60 1.05 466.83 Fertilizer Urea taka/ha 2,036.36 1.05 2,138.18 TSP taka/ha 1,497.53 1.17 1,752.11 MP taka/ha 1,342.23 1.17 1,570.41 Insecticides taka/ha 523.21 0.90 470.89 Labor taka/ha 4,875.29 0.85 4,144.00 Power tiller taka/ha 3,263.14 0.90 2,936.82 Irrigation Boro HYV taka/ha 3,411.04 0.90 3,069.94 Potato HYV taka/ha 3,149.25 0.90 2,834.33

Source: BWDB. September 2003. Project Completion Report for the Command Area Development Project in

Bangladesh. (Loan 1399-BAN(SF))

63

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Table A18.4: Economic Prices of Agricultural Input/Output

Crop Unit

PIRDP Market Price Conversion

factor Economic Price

(taka) Output Price Aus HYV kg 8.59 1.05

0.90

1.05

taka/ha TSP taka/ha 1,365.54 1.07 1,461.12

1.07 4,313.17

taka/ha

9.02 Jute HYV kg 14.00 1.35 18.90 Aman HYV kg 9.56 1.05 10.03 Boro HYV kg 9.03 1.05 9.48 Mustard kg 18.33 16.50 Wheat kg 12.50 1.39 17.38 Chili kg 11.00 0.90 9.90 Onion kg 6.33 0.90 5.70 Input Price Aus HYV taka/ha 2,267.85 1.05 2,381.24 Jute HYV taka/ha 2,650.21 1.05 2,782.73 Aman HYV taka/ha 1,174.10 1.05 1,232.81 Boro HYV taka/ha 2,662.43 1.05 2,795.55 Mustard taka/ha 169.61 1.05 178.09 Wheat taka/ha 2,321.43 1.05 2,437.50 Chili taka/ha 2,708.07 1.05 2,843.48 Onion taka/ha 5,650.13 5,932.63 Fertilizer Urea 1,702.07 1.05 1,787.18 MP taka/ha 737.41 789.03 Insecticides taka/ha 0.90 3,881.85 Labor 10,190.19 0.85 8,661.66 Power Tiller taka/ha 3,651.15 0.90 3,286.03 Irrigation Boro HYV taka/ha 4,636.28 0.90 4,172.65 Source BWDB. September 2003. Project Completion Report for the Command Area Development Project in

Bangladesh. (Loan 1399-BAN(SF))

Appendix 19 65

PROJECT INITIAL, SOCIO-CULTURAL, AND OTHER IMPACTS

1. The Project Completion Review Mission (PCRM) assessed the initial, socio-cultural and other impacts of the Command Area Development Project (CADP). The mission reviewed the relevant documents produced under CADP by the Bangladesh Water Development Board (BWDB) and ADB. The mission visited CADP areas, especially the major infrastructure outputs, and held focus group interviews with project participants, sought the opinion of water management associations and water management organizations and met some nonmember farmers. The mission also discussed CADP implementation with the field staff of BWDB and Department of Agricultural Extension (DAE) and Department of Fisheries (DOF) officers and collected relevant information from them. Before the field visit, thorough discussions were held with the benefit monitoring and evaluation unit (BMEU) of BWDB and the director general of the CADP to have a prior understanding on the latest situation and developments in project activities. A field research group surveyed 195 farm households randomly selected in 18 villages of Matlab North in the Meghna-Dhonagoda Irrigation Project (MDIP) area. Six villages were randomly chosen from each of three categories of villages on the basis of high, medium, and low elevation as categorized by BWDB, which have different levels of access to surface water irrigation facilities and water accumulation during the rainy season. From each village, large-, medium-, and small-scale farmers were chosen in a ratio of 1:2:3 respectively covering the selected village. No more than one household was chosen from a single family. In addition, 220 farm households were chosen in the Pabna Irrigation and Rural Development Project (PIRDP) areas following the same survey technique and covering the same number of villages. All interviewees were project beneficiaries using canal irrigation water for crop production. A perception survey covering a cross-section of rural households with professional diversity was also conducted in both of the project areas (20 questionnaires from Matlab North and 26 questionnaires from PIRDP) to elicit the opinion of rural people living by different means in the project areas. The field visits and surveys provided feedback for an initial assessment of institutional, socio-cultural, and environmental impacts.

by the Intervention

2. Agricultural lands of the project areas have benefited very significantly from ensured flood protection and drainage improvement. Major crops benefiting from flood protection and drainage improvement are aus rice at maturing stage and aman rice at planting. However, in the rainy season, the absence of adequate drainage brought water logging in both project areas. Twenty percent of the cultivable lands remained 1–2 meters under water in Matlab North during the entire rainy season, and 34% cultivable lands of the PIRDP remained under 1–2 meters of water, with 12% of land under more than 2 meters of water. This damages standing transplanted aman and jute crops. However, the total crop areas benefited by irrigation and flood protection are shown in Table A19.1.

Table A19.1: Total Crop Areas Benefited up to 2002–2003

Crop Area Benefited Benefited Crop Area

(ha) MDIP PIRDP CADP

From irrigation 11,550 11,425 22,975 From flood protection and drainage improvement 21,000 22,345 43,345 Total 32,550 33,770 66,320

CADP = Command Area Development Project, ha = hectare, MDIP = Meghna-Dhonagoda Irrigation Project, PIRDP = Pabna Irrigation and Rural Development Project.

Source: BWDB. September 2003. Project Completion Report for the Command Area Development Project in Bangladesh. (Loan 1399-BAN(SF))

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3. Irrigation facilities were also developed by using groundwater in the PIRDP area in private initiatives where, at the tail ends, water is not available from project irrigation and/or where irrigation structures were not built. Such private initiatives were facilitated by the raised aquifer caused by irrigation in the project areas. Samples were not drawn from farmers using shallow or deep tube wells. In the MDIP area, there is little chance of using groundwater because of its high iron content and salinity. 4. Agricultural production is the major source of farm household income. Agricultural productivity has risen for all categories of land types. In Table A19.2, the yield increase of major crops from the benchmark period to project completion in 2002–2003, and to the time of the last survey, is reported for both project areas.

Table A19.2: Yield Increase Trend for Major Crops

MDIP Crop Yield (ton/ha) a 1996–1997 2002–2003 2005–2006 Aman HYV 3.01 4.44 4.12 Aus HYV 2.04 2.88 2.81 Boro HYV 4.97 Wheat Jute HYV

4.10 4.77 2.07 2.66 1.81

1.89 ha = hectare, HYV = high yielding variety. a Survey results─ PCR Field Survey

Crop Yield (ton/ha) a

PIRDP

1996–1997 2002–2003 2005–2006 Aman HYV 1.73 2.54 2.60 Aus HYV 1.69 2.17 2.87 Boro HYV

Jute HYV - - -

3.55 4.58 4.95 Wheat 1.75 2.20 2.08

ha = hectare, HYV = high yielding variety. a Survey results─ PCR Field Survey

5. Yield performance further improved in the PIRDP along with increased cost structure. Yield performance lagged for aman high yielding variety (HYV) rice, aus HYV rice, and wheat during 2005-2006 compared with 2002-2003, but not for boro rice in the MDIP subproject. The increase of crop yields was substantial over the pre-CAD period. The area of HYV boro rice increased by about 49.4% in the last year of the CADP in the PIRDP area as compared with the benchmark. In the MDIP area, this increase was 12.5%. The yield of HYV boro rice increased by about 23% in the PIRDP area and by 16% in the MDIP area over the pre-CAD period. The reasons for high rice yield are better on-farm water management, replacing local varieties with HYVs, pest management, and judicious application of fertilizer.

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6. In the PIRDP area, the main crop in the boro-rabi season was HYV boro, which covered about 55% of the net cultivated area, wheat (7.5%, virtually decreasing areas leaving space for HYV Boro and vegetables), potato (3.2%), pulses (9.7%), onion and garlic (12.72% area) are also growing well. The survey revealed that the yield of all these crops increased over the base period of 1997-1998.

8. In the PIRDP area, 8,670 hectares (ha) out of 18,670 ha were brought under cultivation during the kharif-1 season. However, 3,100 ha of HYV aus were planted, covering about 36% of the net cropped area.

9. In the MDIP area, 6,500 ha of land was brought under HYV aus cultivation, which is about 82% of the net cultivated area. Kharif-I, jute, Local Improved Variety (LIV) aman rice and other crops covered about 18%. The yield of all these crops increased over the pre-CAD period.

7. In the MDIP area, the main crop was also HYV boro, which covered about 91% of the net cultivated area. Wheat, potato, sugarcane, oilseeds, pulses, and winter vegetables are grown in limited amounts. The yield of all these crops increased to some extent as compared with the base period.

10. Participants’ survey responses detailed the benefits received from the project. Table A19.3 reveals the nature of the benefits received by the households in the project areas.

Table A19.3: Nature of Benefits Received by Project Area Inhabitants

Nature of Benefits Received Opinion Expressed by Respondents (%)

MDIP PIRDP Flood control 35.5 41.2 Irrigation water supply 53.8 47.4 Opportunities of organizational activitiesNew opportunities for fish culture Learning IPM

3.6

1.0 1.0 3.6 2.6 0.0 0.0

Drainage improved 1.5 4.6 Agricultural advice 2.1 Opportunities of work with NGOs 0.0 0.5 Others 1.0 0.5 Total 100.0 100.0

IPM = integrated pest management, MDIP = Meghna-Dhonagoda Irrigation Project, NGO = government organization, PIRDP = Pabna Irrigation and Rural Development Project.

non Source: Mission survey. 11. Access to irrigation water and control of rainy season flooding were the two prime benefits perceived by survey respondents. A few also said that new opportunities for aquaculture were direct benefits of the construction of flood-control embankments. 12. The provision of irrigation water positively influenced higher agricultural productivity and diversity, as well as taking pressure off the environment. However, problems of shortages of drinking water and water pollution emerged. Forty-three percent of households in Matlab Nort,h, and 41% of households in the PIRDP area, suffer shortages of pure drinking water. Groundwater arsenic contamination has become rampant in Matlab North.

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13. The construction of embankments helps stop recurring seasonal flooding and facilitates the flow of surface water. The withdrawal of surface water in the dry season created serious problems for respondents in both project areas. Fifty-two percent of respondents in both Matlab North and the PIRDP area reported facing problems due to the withdrawal of surface water. 14. Those who faced problems revealed various dimensions of the problem as reported in Table A19.4.

Table A19.4: Problems Encountered Due to the Withdrawal of Surface Water.

Problem Type Respondents (%) MDIP PIRDP Shortage of drinking water 21.9 26.9 Absence of aquatic weeds

35.6

Total

19.9 25.0 Shortage of animal feed 24.0 Lost spawning grounds for fish 19.3 16.3 Others 9.9 1.3

100.0 100.0 MDIP = Meghna-Dhonagoda Irrigation Project, PIRDP = Pabna Irrigation and Rural Development Project.

Source: Field survey.

% of Participants

15. The socioeconomic and ecological impacts of the observed problems need close monitoring and analysis in the long run.

16. BWDB, Department of Agricultural Extension (DAE), and Department of Fisheries (DOF) have exerted influence on empowering men and women through training programs under the CADP. Sixty-nine percent of respondents in the MDIP area, and 38% of respondents in the PIRDP area, received training during the CADP period. Table A19.5 shows the extent of participation of the organizations in farmer training.

Table A19.5: Participation in Training Programs under Nation-Building Organizations.

Organizations MDIP PIRDP BWDB 31.1 48.4 DAE 68.9 27.4 DOF 0.0 6.3 NGO 0.0 2.1 Others 0.0 15.8 Total 100.0 100.0

BWDB = Bangladesh Water Development Board, DAE = Department of Agricultural Extension, DOF = Department of Fisheries, MDIP = Meghna-Dhonagoda Irrigation Project, NGO = nongovernment organization, PIRDP = Pabna Irrigation and Rural Development Project.

Source: Field Survey 17. BWDB reported a total of 34,975 beneficiaries receiving the training it provided or arranged. DAE provided training to 14,960 beneficiaries and DOF to 6,225 beneficiaries.

18. DAE training emphasized improving agricultural practice and, in the future, should be provided evenly in both subproject areas, or more so in areas with high agricultural potential.

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19. The small-scale fishery development (SSFD) program saw many female participants (3,633 or 58% of the total) provided with fisheries training and credit for fish farming from contracted nongovernment organizations (NGOs). Moreover, water management organizations allowed a good number of women to receive agricultural training alongside male members. This has made the impact of making irrigation and culture fisheries management benefits more sustainable.

20. In the pre-CAD situation (1996-1997), 26% of households suffered chronic food deficits and 27% temporary deficits. These figures were reduced to 13% for chronic deficits and 18% for temporary deficits in 2002-2003 in the MDIP area. In the PIRDP area, 37% suffered chronic food deficits and 23% temporary shortages pre-CADP, reduced to 20% and 19% in 2002-2003. At present, families with food surpluses represent 32% of the total in the PIRDP area and 25% in the MIDP area. Poverty reduction was more pronounced in the PIRDP than in the MDIP area. Famine was reduced in both project areas. 21. The CADP has generated self-employment opportunities in both of the project areas. Paving embankment tops has created better transportation facilities. Rickshaw, microbuses, auto-rickshaws, and tricycle vans have diversified business opportunities and employment. Land values have appreciated sharply as more land is free of flooding. Accessibility to markets by road from respondents’ residence increased tremendously. Table A19.6 reveals that 46% households in the PIRDP area and 30% in the MDIP area have access to markets along pucca roads.

Table A19.6: Road Accessibility to Markets from the Respondents’ Houses

Type of Road Facility % of Respondents with Access

MDIP PIRDP 46.2 Pucca road 30.0

Kutcha road 55.0 46.2 Waterways 0.0 0.0 Partly pucca partly kutcha 25.0 15.4 Total 100.0 100.0

MDIP = Meghna-Dhonagoda Irrigation Project, PIRDP = Pabna Irrigation and Rural Development Project. Source: Field Survey 22. Women’s participation in agricultural activities has increased with Flood Control and Drainage (FCD) improvement and CADP interventions, which have exerted positive influences on social attitudes and agricultural labor supply. Table A19.7 reveals the extent of women’s participation.

Table A19.7: Women’s Participation in Agricultural Activities

Extent of Participation Respondents’ Wives Participated (%)

MDIP PIRDP Participate regularly 55.0 23.2 Participate occasionally 45.0 57.7 Do not participate 0.0 20.1 Total 100.0 100.0

MDIP = Meghna-Dhonagoda Irrigation Project, PIRDP = Pabna Irrigation and Rural Development Project. Source: Field Survey.

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23. Matlab North has the more forward-looking outlook toward women’s participation in agricultural activities. Participation in NGO and local government activities by women is revealed in Table A19.8. The women are predominantly involved in micro-credit and income-generating activities, especially in small trade, fish culture, livestock and poultry rearing, and homestead gardening.

Table A19.8: Women’s Participation in NGO and Local Government Activities

Participation in NGO Activities % of Respondents’ Wives Participated

MDIP Yes 20 15

PIRDP

No 80 Total 100

85 100

MDIP = Meghna-Dhonagoda Irrigation Project, NGO = nongovernment organization, PIRDP = Pabna Irrigation and Rural Development Project.

Source: Field survey. 24. There has been an overall improvement in livelihoods. Ninety percent of households in the MDIP area and 98% of households in the PIRDP area have access to drinking water from tube wells. Eighty-two percent of households in Matlab North, and 73% of households in the PIRDP area have established pan toilets to replace open pits or other temporary structures. 25. Participation in family-planning activities by women reflects consciousness of population control. CADP activities and training of women increased social consciousness to a great extent. Considering socioeconomic changes and impacts, creating momentum in agricultural and off-farm activities, the Flood Control and Drainage (FCD ) and CADP interventions together appeared to be socially and economically successful.

Family Planning Active Participation

Table A19.9: Women’s Participation in Family-Planning Activities

% of Respondents’

Wives MDIP PIRDP

Yes 65 62 No 35 38 Total 100 100

Regular Contact with Family-Planning Workers

% of Respondents’ Wives

MDIP PIRDP Yes 92 94 No 8 6 Total 100 100 MDIP = Meghna-Dhonagoda Irrigation Project, PIRDP = Pabna Irrigation and Rural Development Project. Source: Field survey.

Appendix 20 71

PARTICIPATORY WATER MANAGEMENT

A. Historical Background

1. Bangladesh has little history of participatory water management, either for flood control or for irrigation. Historical evidence suggests that both flood control and irrigation were done by rulers, with people accepting these works as gifts from their rulers.

5. However, examples of local initiatives in water management are available in history, such as the indigenous irrigation systems prevalent in the hilly regions from ancient times to create little reservoirs for retaining flood water for irrigation, and the indigenous construction of haors—what today are referred to as "submersible embankments"—and their maintenance by the people, But these were local and sporadic individual or small-group initiatives that never took any institutional form.

7. In the late 1970s and early 1980s, attempts were made to incorporate participatory water management in planning, design, and operation and maintenance (O&M) in the Delta Development and the Land Reclamation projects funding by the Netherlands. That attempt failed primarily because of the following crucial factors:

(iii) Neither the Government of Bangladesh nor donors looked at that time at participatory water management as crucial to the success of water management projects.

2. References in the Vedas and Indian scriptures suggest that, in ancient times, digging wells, canals, tanks, and dams for irrigation, and their efficient operation and maintenance, were the responsibility of the state. 3. The rapid advances in water management, particularly irrigation and, to an extent, flood control in medieval India took place under the rulers of different dynasties, as agriculture was the main revenue source. The fall of dynasties has always been associated with the degeneration of agriculture. 4. Under British rule, water management—primarily flood control—no longer received state patronage, so water management and consequently agriculture generally deteriorated. Whatever little was done in this respect was done under the aegis of the rulers.

6. Under Pakistan (1947-1971) and Bangladesh (since 1971), flood control and irrigation was undertaken by the Government. During these periods, people consider development projects as gifts from the Government and their maintenance a Government responsibility. B. The Early Initiative

(i) Rural elites in the project areas offered stiff resistance, thinking that such a management model would jeopardize their social control over weaker segments of the rural population and the basis of prevalent client-patron relationships.

(ii) These initiatives took place in isolation from the mainstream of Bangladesh Water Development Board's project management culture, which is centralized Government management, essentially top-down.

C. The Issue Reborn

8. In the 1990s, the issue of participatory management was re-born, and a few projects have since been completed. Unfortunately, after projects are completed and the flow of funds from the Government and donors stops, water users’ organizations wither away. So the question arises: Why are participatory approaches not being sustained in Bangladesh under a

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situation in which the Government has adopted participatory water management as its policy, development partners are pursuing it, and government agency people have accepted it (generally as a fait accompli). A few issues directly related to this question are briefly discussed in the following paragraphs

1. Top-Down Approach 9. The initiative for introducing the participatory approach is primarily driven by development partners without any demand from the local population. Establishment of the water institutions is agency administered, highly directed, target oriented, and deadline driven, to form a pre-determined hierarchy of water users' organizations (WUOs), with the institutional structure, composition, tasks, and modus operandi of each predetermined by guidelines. This is essentially a top-down approach, limiting the scope for local participation in evolving suitable institutions. Guidelines should be considered as only resources to be used innovatively and pragmatically.

10. The participatory approach is a bottom-up, democratic process and must follow the democratic principles "of the people, by the people, and for the people." The bottom-up, of-the-people-and-by-the-people approach is a time-consuming process that demands more effort and time than the top-down approach. The most important aspect of such a strategy is to encourage and support spontaneity and creativity in people instead of ignoring them. This is the opposite of the techno-bureaucratic approach. Instead of teaching them, development practitioners should learn from the stakeholders—their way of thinking, logic, experience, and the success stories.

2. Concretization and Acceptance of the Changed Roles 11. By definition, the role of the water institutions is to bring a new dimension in project management. The identification of works and their prioritization, preparation of investment plans, and supervision of works all will now be done by WUOs, not as previously by agency staff. The role of the Government agencies changes from control to facilitation, with the main responsibility being to render technical advice to the water institutions, help in formulating and processing Government financing, and help in meditating conflicts. Government officials lose the control, authority, and privileges they have so long enjoyed. On the one hand, there is great reluctance among the agency staff to accept this situation. On the other hand, WUOs are unaware of their role under the changed circumstances.

3. Sustainability and Incentives 12. The sustainability of water institutions is the real challenge. Maloney (1998) writes about water management associations (WMAs): "Many thousands of WMAs have been formed in developing countries in recent decades which have failed. In Bangladesh, many water user groups/cooperatives were formed on canal irrigation systems, which functioned as long as ’loans‘ were available." Oakley et al. (1994) writes: "Dependable incentives are important in sustaining the participation.... Participation evaporates when the incentives fail to materialize." There are more factors other than the sense of ownership of the water institutions that are important for their sustainability. In the words of the project director of Netherlands-assisted Compartmental Pilot Project: "Two more crucial factors for sustainability are guarantees of funds (resource mobilization—an incentive) for O&M activities and execution of minor works by the water institutions (additional incentive)."

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13. In the Compartmental Pilot Project, execution of minor physical works up to Tk. 0. I5 min ($3,000), and 25% of the construction works done by the labor contracting societies (LCSs) were executed through the water institutions to give them incentives. Profits from these works could be utilized as funds for further O&M activities. After the project was completed, these incentives stopped, and the WUOs gradually withered away.

(i) timely mobilization of a minimum fund for O&M,

14. The same thing happened in the 3,200 hectare Sreenagar Mawa Bhagyakul Polder Project in Bangladesh, where the present author tried to introduce a participatory approach to O&M. The WUOs worked quite well for 2 years but stopped when the funds did. They suggested the following as incentives for the sustainability of the WUOs:

(ii) effective participation of the water institutions in selecting works, and (iii) management of the investment plan and overview and control over expenditure.

15. The situation in the Local Government Engineering Department is little better. The department has transferred 259 small subprojects varying in size from 300 ha to 800 ha to the local communities through formal agreements. Many are working well but with the support of a number of incentives, the most important of which is micro-credit to the WUAs under a program of the Japan Fund for Poverty Reduction. What happens after the incentives dry up is yet to be seen. 16. Incentives for agency staff to compensate for lost authority, power, and privileges is equally important, as the success of the participatory approach in a top-down situation is integrally linked with, as well as dependent on, the attitude and support of agency staff.

4. Training 17. Stakeholders' participation is not absolutely a technical (e.g., engineering and agricultural) issue or an economic or a sociological one, but is essentially a management issue with the involvement of technical, economic, sociological, and other variables, including complex ones like the psychographic elements of human attitudes and behavior, individual and social values, group dynamics, etc. This may sound strange to many unitary professionals like engineers, agriculturists, economists, sociologists, anthropologists, and public administrators, who have long addressed the issue but are not used to looking beyond their own professional horizon. 18. The participatory approach is essentially a method, and its application requires technical, human, conceptual, and design skills. Trainees need to acquire these skills. Unfortunately, the capacity and quality of trainers—their knowledge, practical experience of the lecturing on issues, and training skills—are in most cases poor. Very little concern has been observed among the sponsors of the projects for the quality of the training or its usefulness or effectiveness.

19. In the general overview of the project, the problems that people may expect to encounter in performing their tasks, and the problem-solving and communication skills to handle them in an effective and efficient manner, should be the focus of training programs. There should be mechanisms for continuously monitoring, evaluating, and improving the training contents, methods, outcome, and effectiveness. 20. Training to develop institutional capacity has become a regular component of development projects, and a considerable amount of money is spent on it. Nevertheless, the

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performance quality or attitude of trainees is not improving. This suggests that training is not effective or efficient. Training should not be used, as it is now, to make the project easy to sell; rather, it should be considered as a tool for acquiring knowledge and skills for the project. 21. A sense of ownership is not enough for sustaining participation. Stakeholders’ attitude and reaction to participation, on the demand side, is the most important issue, which essentially depends on their comprehension of what participation means. Such demand may be created by social awareness against complacency, as in the Netherlands, or by providing incentives, as in Bangladesh, combined with legislative actions. These should be worked out with WMOs in the project planning stage. The Netherlands experience also suggests that financing (for O&M in Bangladesh) is a crucial condition for smooth functioning of the water boards (WUOs in Bangladesh). 22. People will feel consulted only when their ideas are examined by the authorities concerned. D. New Approach 23. New approaches will be successful only if they are in line with the historical development of the country, its traditions, and age-old local institutions. Otherwise, new concepts are likely to fail. In this respect, reviewing the past is crucial to understanding the present and making decisions for the future. This would mean not trying to bypass existing institutions but to make use of them and add new values to make them genuinely participatory. Otherwise, the existing structure may obstruct the process. It is important that new initiatives should not be looked upon as a threat to existing institutions. In this respect, it is very important to encourage and support spontaneity and creativity in people instead of ignoring them. Rather than teaching them, development practitioners should learn from the stakeholders—their way of thinking, logic, experience, and success stories. Also, instead of introducing new structures and systems for WUOs, practitioners should look to existing local institutions and community-based organizations. No country can supply a blueprint for development to another. Sustaining WUOs after the project is over requires that they be knit into a national institution. E. Conclusion 24. Participatory approaches break with the conventional top-down bureaucratic approach and feudal heritage. The transition from the conventional to the participatory approach is not easy, as the concept is new and contrary to the conventional education, training, and practice. It is challenging and time consuming 25. The establishment of water institutions, their assumption of their roles, and their sustainability require a fresh perspective and a paradigm shift from the conventional approach to the participatory approach, new roles for WUOs, and a changed role of the relevant state agencies. 26. To accomplish this stupendous task in a top-down situation like Bangladesh, government agencies, facilitating staffers and water users must be trained in and willing to perform their new roles. The Government should facilitate and monitor the targets and achievements. At the same time, to prepare young water professionals for the future, the curriculum of engineering education, apart from working with the text books, drawing boards, and computers, should include opportunities for practical work with the people in the field. Students should also be trained in skills to communicate with the common people.

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References:

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1. Bangladesh Water Development Board, Division-I. 1998. Minutes of Meetings with Stakeholders of Sreenagar-Mawa-Bhagyakul Polder Project. Dhaka.

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