Project Proposal Sikta Irrigation Project, Nepal

Project Proposal for the Implementation of Sikta Irrigation

Project

1. BACKGROUND
The Sikta Irrigation Project is situated in the Banke District of the Mid Western Development
Region. The Project, with a cultivable command area 33,766 ha including the rehabilitation of
Dunduwa Irrigation system, constructed by Indian Cooperation Mission in 1964, would
irrigate almost all the low lands of the Banke District and its economic impact could be
significant for this development region. The Project area comprises 34 Village Development
Committees (VDCs) and the municipality of Nepalgunj, which is the District head quarter.
The irrigated area can be further extended by 9000 ha of 9 VDCs lying on the left bank of
Rapti River.

The concept for the Sikta Irrigation Project was first formulated in pre-feasibility studies
conducted from 1975 to 1976 and contained in the report on the proposed Western Rapti
Multipurpose Development, which comprised the construction of a high dam at Bhalubang of
Dang District with a storage reservoir for irrigation and hydropower development in the West
Rapti Basin and adjacent areas such as Kapilvastu.

The German company Lahmeyer International GmbH completed a feasibility study for Sikta
Irrigation Project in August 1980 based on a run-of-the-river diversion gravity irrigation
scheme. A further study for a run-of-the-river scheme was carried out by the then Department
of Irrigation, Hydrology and Meteorology and this was completed in June 1983. However,
due to unavailability of external funding the project could not be developed until 2002, when
Irrigation Development Project MWR decided to reassess the project. In April 2004, the
feasibility study report was submitted by the IDP-MWR after having a rigorous field level
study. The study showed the project is technically, economically and socially viable in the
present context as well.

Based on the Feasibility Study Report 2004, the Government of Nepal decided to implement
the Project in three phases, which are as follows.

Phase I - Construction of Headworks and Desilting Basin

Phase II - Construction of Main Canal and Branch Canals

Phase II Command Area Development

In view of the relatively high incidence of rural poverty in Banke District in the Mid Western
Development Region 40 percent of the rural households fall below the poverty line -, the
small number of existing irrigation facilities and the limited local surface and groundwater
resources in the district which would be suitable for small or medium scale irrigation
development, Government of Nepal (GON) has therefore given a high priority to the
implementation of the large scale Sikta Irrigation Project which would irrigate about 34,000
ha of land in the District. The water source for this project is the West Rapti River, which
originates from the mid-mountains in the Mid Western Region of the country.

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Project Proposal Sikta Irrigation Project, Nepal

The overall goal of the Sikta project is to contribute to the National Development Objectives
of GON and to improve the standard of living of the people in Banke District. This would be
achieved by the provision of irrigation facilities together with the improvement of agricultural
support services, which would improve the productive capacity of farmers so that agricultural
production and thus incomes would be increased.

The GON has considered the SIP as a Priority I project and accordingly it is committed to
provide financial support necessary to implement the Project. The Project has its head office
in Nepalgunj and it has already started the works under Phase I, that is construction of
headworks and desilting basin. accord

2. PROJECT AREA

2.1 LOCATION

The Project Area is located in the Banke district of the Mid Western Development Region of
Nepal. It covers 34 Village Development Committes and one Municipality of the District.
Nepalgunj is the headquarter of Banke district and although the administrative head quarter of
the Mid Western Development Region is Birendra Nagar in the Surkhet District, Nepalgunj
remains the commercial centre of this Region. The Project area is enclosed by the East-West
Highway (Mahendra Rajmarg) to the North, the national boundary to the South, Dang District
in East and Mankhola to the West. Geographically the area comprises lands between 28 0 00
and 810 14 N latitudes and 810 32 and 810 57 E longitudes A location map of the project
area is shown in Figure 1.

The proposed headworks site is located within 300 m of the highway at the Agaiya village
about 58 km east of Nepalgunj. The project area is accessible by the national highway
(Mahendra Rajmarg) by road. The district headquarter of Nepalgunj is connected from
Kohalpur with the national highway by a regional highway which continues up to the Nepa l-
Indian Border crossing at Rupaidhiya.

Nepalgunj has all weather airport having daily flights from Kathmandu. This airport is a hub
for most of the air service to the remote hill districts in the Mid Western Development Region.

2.2 CLIMATE

The climate prevailing in the Sikta command area is characterized by the monsoon regime
with rainfall occurring mainly between June and September (80 % of annual rainfall). The
other months are relatively dry especially April, May and the first half of June. Winds are
strong and maximum temperature averages above 36 C during these months leading to
intense evapo-transpiration (5.6, 6.4 and 5.8 mm/day for April, May and June). Analysis of
the last 27 years of climatic records, established the median annual rainfall at 1329 mm
(average 1401 mm) but dry years occur with annual rainfall below 900 mm.

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Project Proposal Sikta Irrigation Project, Nepal

Winters are usually mild. The average minimum for the coldest month is 6.9 C during
January. Average maximum during that month reaches 21.8 C. Nevertheless, cold waves are
quite common.

2.3 SOCIO-ECONOMY

The total number of household and population in the 34 VDCs and a Municipality within the
total command area, 33,766 ha are estimated at 46,715 and 291,613 respectively. This
includes about 66% of the total households and 75 % of total population of Banke district.
This Project is expected to significantly contribute to the development of Banke district.

There is a wide variation in household size among VDCs, the maximum size (8.9) recorded in
Betahani and minimum size (4.7) in Rajhena. The average household size in the command
area is estimated at 6.24, which is significantly higher than the district average of 5.50.

The project area consists of 36 castes of different ethnic groups. The first five major castea are
Chettri (19.1 %) followed by Tharu (15.3 %), Muslim (9.9 %), Magar ( 9.1 %) and Yadav (5.1
%).

The Human Development Index of the Mid Western Terai stands at 0.458 which is slightly
below the national average of 0.466 and the third lowest of the Terai Regions. The socio-
economic survey of the Project area has shown that 40% of the households in the Project Area
still live below the poverty line, which is slightly above the national average of 44 % for rural
households. Implementation of the Project would provide a substantial support to the long-
term goal of poverty alleviation, and more directly to the specific objective set for the
irrigation sector; assisting in raising the agricultural production by improving the rainfall
based agricultural system with the help of providing irrigation facilities as per the need of the
crops.

The sources of household cash income in the area include grain sales, job/service, business,
wage/labour, renting and pension. As more than 40% of the household in the project area own
less than 0.37 ha of land, wage/labour is the main source of cash income for them. Sale of
grain appears to be an insignificant source of cash income for very poor and poor families,
since they are even not self sufficient in food grains production. Keeping in view the vast
majority of poor families and their very low income on the one hand and small number of
very rich households possessing large assets and large cash income on the other, it can be said
that socio-economic upliftment of the poor section of the population is necessary to achieve
and maintain high economic growth by developing a harmonious society in the area. Thus, the
importance of poverty reduction programme in the area is evident and irrigated agriculture
development programme provides a promising opportunity for the same.

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Project Proposal Sikta Irrigation Project, Nepal
Figure 1: Location Map

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Project Proposal Sikta Irrigation Project, Nepal

3. WATER RESOURCES

Of all the streams and rivers in the District, the West Rapti river, although rain-fed, is the only
river with a significant perennial flow during the dry season and is therefore proposed as
source for the irrigation system. The drainage area of the Rapti River lies in the Mid Western
Region of Nepal between elevations of 140 to 4000 m asl. The total length of the river to the
proposed diversion site as about 280 km, and the catchment area covers 5.459 km 2 at this
diversion site. The Rapti river is formed by the confluence of two main rivers in the Mid-
Western hill region, the Mardi khola and the Jimruk khola, the more important being the
Mardi Khola which has two tributaries; the Lungri and Arung kholas.

The Rapti river has been gauged since 1964. The nearest gauging station to the proposed
diversion site is at Jalkundi about 42 km upstream from the site with the catchment area of
5,150 km2. This station has hydrological records since 1964. In the absence of long term
gauging at the intake site selected for the Project, the hydrological analysis is based on the
records of Jalkundi.

The mean monthly discharge, median monthly discharge and 80 % reliable flow for Rapti
River at Jalkundi is presented in Table 3-3.

Table Water Resources-1: Monthly Discharge of West Rapti River at Jalkundi

Discharge in m 3/s

Month Jan Feb. Marc April May June July Aug. Sept. Oct. Nov. Dec.
h

Mean monthly 32.4 27.4 22.4 17.6 19.5 112 333 451 370 149 61.7 39.8
discharge

Median monthly 28.1 24.8 19.8 14.4 10.8 64.7 251 380 291 120 52 34.1
discharge

80 % Reliable 24.8 20.8 16.7 12.5 8.56 50.4 212 348 233 94.4 42.8 30.7
discharge

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Project Proposal Sikta Irrigation Project, Nepal

4. DEVELOPMENT PLAN

The Project would construct a run-of-the-river, gravity irrigation system, which would
comprise the following principal works to be implemented in three phases.

4.1 PHASE 1
A gated concrete diversion weir (barrage) with a total width of 317 m across the Rapti
adjacent to the Agaiya village on the East West Highway, backing up the river flow to a
sufficient elevation to command 33,766 ha.

An intake head regulator is designed for a maximum diversion capacity of 62.5 cumecs, 50
cumecs for the right bank main feeder canal and 12.5 cumecs for flushing from the settling
basin on the right bank. Similarly, a canal head regulator will be provided for the diversion of
water on the left bank for about 9,000 ha (under consideration).

4.2 PHASE 2
A lined feeder canal section of the main canal with a maximum discharge capacity of 50
cumecs, running about 34 km through secondary forest south of the East-West highway to
serve the main cultivable command area 33,766 ha on the right bank of the Rapti. The canal
will have a total of 91 structures out of which 66 are minor and 25 are major. The structures
comprise of siphons, aqueducts, highway crossings, village road bridges and covered canals.
The canal will be flanked along its length by a all weather inspection road. The feeder canal
will enter the command area about 2 km. south of Kohalpur.

A main canal (4 km.) and secondary, sub-secondary canals (139 km.) delivering water to 85
ha blocks in the command area, flanked by all weather inspection roads and provided with
appropriate control, measurement and auxiliary features.

An open drainage system will be developed starting from the field channel to collector drain
and subsequently connected to tertiary, secondary and primary drains. No salinity symptoms
in land irrigated from tube wells or from existing surface lifting systems are observed.

River bank protection works will be provided to control the erosion along the Rapti and
Dunduwa rivers.

4.3 PHASE 3
The command area development works to cater the irrigation water to the blocks manageable
by the farmers reliably and equitably.

The Project would incorporate the existing ground water irrigation facilities and the two
existing surface lift irrigation systems in the water distribution system to allow a structures
conjunctive use of the irrigation facilities. Since the discharge in the Rapti River would only

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Project Proposal Sikta Irrigation Project, Nepal

allow to start diversion for the monsoon crop in the main command area in the middle of
June1, therefore the existing groundwater facilities would be very important for the
establishment of nurseries for paddy cultivation

5. PRESENT STATUS OF THE PROJECT

5.1 INSTITUTIONAL SET UP

The Department of Irrigation under the Ministry of Water Resources is the responsible
organization to implement the Project. The DOI has already established a Project Office,
namely Sikta Irrigation Project (SIP), at Nepalgunj, the district headquarters and deputed nine
professional staff and adequate number of supporting staff for the execution of the Project.
The SIP has already started the implementation of Phase 1 works.

5.2 PHASE 1 WORKS

The SIP has contracted out the Construction of Headworks to SINOHYDRO-LUMBINI Joint
Venture in June 5, 2006 through an International Competitive Bidding. The contract amount is
NRs 1.85 Billion. The works included in the contracts are given below.

Construction of 317 m long diversion structure across Rapti River at Agaiya, Banke

Construction of head regulators on the both sides of the river

Construction of desilting basin of 650 m length on the right bank (62.5 m3/s capacity)

Construction of guide bank (about 700 m)

The Construction of headworks has already been started from Novermber 1, 2006. It has been
planned to complete nearly one third of the headworks construction within the current Fiscal
Year 2063/64 (July 15, 2007). The total construction period for the construction works under
the contract is 42 months, which ends in December 31, 2009.

5.3 PHASE 2 WORKS

The SIP has conducted detailed engineering survey, investigation, design and cost estimation
for the first 15 km of the main canal. The main canal has been designed as a lined section of
50 m3/s conveyance capacity to provide irrigation water to 34, 000 ha. The total cost of the
works including six major and eight minor cross drainage works is about NRs 1.90 billion.
The design and drawings have been submitted to the Department of Irrigation for review and
approval. It has been planned to start the construction works for first 15 km of the main canal
from the next Fiscal Year, which starts from July 15, 2007.

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In the case of the 80% reliable flow

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Project Proposal Sikta Irrigation Project, Nepal

Three Dimensional View of the Headworks under

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Project Proposal Sikta Irrigation Project, Nepal

For the remaining 31 km of the main canal, SIP has already started the engineering survey and
investigation. The design works will be completed within next Fiscal Year 2064/65
(2007/2008). The process for the contracting works can be started only from the Fiscal Year
2065/66 (2008/2009). Detailed survey of the branch canals will be started from Fiscal Year
2009/10. The construction works, however, can be started for the branch canals for which the
design would be completed.

5.4 PHASE 3 WORKS

Phase 3 works, which constitutes the command area development works, can be started only
after the branch canals are constructed. Since the construction works under this phase has to
be initiated in participation of users, the institutional development part has to be implemented
before Phase 3 works are started.

6. PROJECT COST
The total financial cost of the Project is approximately NRs 10.15 Billion at present cost up to Phase 2
works. Summary of the costs is provided below.

S. N. Description of works Total Cost in NRs Remarks

Phase 1 Works

1 Construction of Headworks and 1,855,051, 757.91 Already contracted

desilting Basin out

2 Supply and Installation of gates in the 750,000,000.00 Yet to be contracted

headworks out

3 Miscellaneous 300,000,000.00

Total for Phase 1 works 2,905,051,757.91

Phase 2 Works

1 Up to first 15 km of the Main Canal 1,800,000,000.00 Design Completed

2 Remaining 31 km of the Main Canal 3,000,000,000.00 Survey and

investigation on
going

3 Branch Canals 2,000,000,000.00

4 Institutional Development 700,000,000.00

Total for Phase 2 works 7,500,000,000.00

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Project Proposal Sikta Irrigation Project, Nepal

The cost of Phase 1 works will be covered by internal funding. Besides, the government is
ready to provide funding for the construction of first 15 km of the main canal from internal
resources.

7. EXTERNAL FUNDING REQUIREMENT

The external funding may be required to cover the cost for the construction of 31 km of main
canal, 233 km of branch canals and for the implementation of institutional development
components., for which the total cost is NRs 5.70 billion (approx. US$ 85 Million). This
funding requirement has to be met by financing and co-financing by donor agencies,
government fund and farmers cost contribution.

8. ECONOMICS OF THE INVESTMENT

The economic analysis shows the with project" Net Profit which amounts to 18,675 NRs/ha,
which will be derived from improved yield of traditional crops, promotion of cash crops and
improvement of labour efficiency. The incremental benefit amounts to: 15,893 NRs/ha (215
USD). The Economic Internal Rate of Return is 18% and Benefit Cost ratio at 12% discount
is 1.7.

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Project Proposal Sikta Irrigation Project, Nepal

Table of Contents

1. Background.....................................................................................................1

2. Project Area....................................................................................................2
2.1 Location...................................................................................................2
2.2 Climate.....................................................................................................2
2.3 Socio-economy........................................................................................3

3. Water Resources.............................................................................................5

4. Development Plan..........................................................................................6
4.1 Phase 1.....................................................................................................6
4.2 Phase 2.....................................................................................................6
4.3 Phase 3.....................................................................................................6

5. Present Status of the project...........................................................................7

5.1 Institutional Set up...................................................................................7
5.2 Phase 1 works..........................................................................................7
5.3 Phase 2 works..........................................................................................7
5.4 Phase 3 works..........................................................................................9

6. Project Cost....................................................................................................9

7. External Funding Requirement.....................................................................10

8. Economics of the Investment.......................................................................10

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