GOVERNMENT OF NEPAL

MINISTRY OF IRRIGATION
DEPARTMENT OF IRRIGATION
SUNSARI-MORANG IRRIGATION PROJECT

INAL REPORT

DETAILED FEASIBILITY STUDY REPORT

OF
BIRTA PAINI (TYANGRA KHOLA) IRRIGATION SUB PROJECT
SIMARIYA, SUNSARI

VOLUME I: MAIN REPORT

July, 2015
 Karikh Engineering Consultant Pvt. Ltd.

LOCATION MAP
Birta Paini Irrigation Sub-Project, Simariya, Sunsari

Simariy Bus stop

Budh Chowk

Source River
( Tyangra khola)
Main Canal

Koshi Rajmarg
 Karikh Engineering Consultant Pvt. Ltd.

SUB-PROJECT LAYOUT MAP

Source River
Main Canal
( Tyangra khola)

branch Canal
Command Area
 Karikh Engineering Consultant Pvt. Ltd.

SALIENT FEATURES

1. Sub-Project (a) Name : Birta Paini Irrigation Sub Project

(b) Type : 'Rehab' (Terrai)
2. Location (a) Latitude/Longitude : Lat 263148 to 263524 N
(WGS 84) Lon 871236 to 871424E
(b) VDC (W. No.) : Simariya (W. N.9)
(c) District : Sunsari
(d) Zone : Koshi
(e) Region : Eastern
(f) Nearest Road Head : Inaruwa Duhabi Road
3. People (a) Household : 1480 nos.
(b) Population : 8249 nos.
(c) Ethnic Groups (Percent) : Tharu (45.57%), Kshetri (14.85%),
Brahmin (17.34%), Dalit (3.89%),
Magar (6.80%) and others (11.55%)
4. Canal System (a) Main Canal Length (km) : 4.00 Km

(b) Secondary/Branch Canal of

SS T1 : 1.70 kM
SS T2 : 1.63 Km
3
(c) Main Canal Design Discharge : 1.267 m /s

5. Water Source (a) Name : Tyangra Khola

(b) Type : Perennial
(c) Catchment Area : 1.50 Km2
(d) Measured Flow (lps)/Date : 2000 l/s on 15/June/2014
(e) High Flood Discharge (m3/s) : 4000.0 l/s
6. Command
Area (a) Net Command Area (Ha) : 750 Ha
7. Proposed Works (a) Concrete Barrage with Head : 1 no
Regulator
(b) Canal Lining (Partial) : 123m
(c) Remaining Earthen Canal

8. Agriculture Existing
(a) Crops : Paddy, Maize, Wheat, Potato,
(b) Cropping Intensity : 106.42 %
Future
(a) Crop : Paddy, Maize, Wheat, Potato,
(b) Cropping Intensity (%) : Vegetable
169.50%
9. Climate (a) Water Balance (+ / -) : (+)
(b) Temperature (c) : 19 to 39
(c) Annual Rainfall (mm) : 123.5
(d) Elevation (MSL) : 79 m
10.Environment (a) Land Slide Zone : None
(b) Soil Erosion : Insignificant
(c) Environmental Impact : No significant negative impact
Evaluation Significant beneficial impact in terms
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socio-economic benefit
11. Institutional (a) Water User Association : Active and functional informal WUA
in place
(b) Water Right Conflict : None

12. Cost Analysis (a) Total Cost : NRs 30,145,006.08

(b) Cost/Ha : NRs 40193.34
13. Economic (a) EIRR : 35.96%
Analysis (b) Benefit Accrued : NRs 1,31,02,753.20
(c) Economic Life : 20 years
(d) Benefit Cost Ratio at 10% : 3.3
(e) Benefit Cost Ratio at 12% : 2.95
(f) Sensitivity Analysis
EIRR at 10% decrease in : 35.62%
benefit and 10% increase
in cost
EIRR at 10 % increase in cost : 36.16%
EIRR at 10% decrease in : 32.77%
benefit

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COST SUMMARY

S.No. Description of Works Cost ( NRs. ) Remarks

A Indivisual Cost
1 Head Work 11,409,292.09
2 Canal earth work & lining 6,743,361.70
5 VRB 2,273,216.88
Total: 20,425,870.67

B Engineer's requirements

1 Environmental protection 3% of A+B 612776.1198

2 Sub Total of C 612776.1198

3 Sub Total of (A+B+C) 21038646.78

C General Item

1 Mobilization and demobilization

1.1 Construction, maintenance and subsequent removal of contractor's office, 200000

workshops, warehouse, stores etc.

1.2 Construction, maintenance and subsequent removal of contractor's staff 100000

quarters and labour camps etc.

2 a.Lab tests 200000

3 b.As built drawings 200000

4 c.Insurance of work = Rs.0.15% (A+B) 30638.80599

5 d.Third party Insurance = 0.15% of (A+B) 30638.80599

6 e.Insurance against accident of workman =0.15% of (A+B) 30638.80599

Sub total of C 791916.418

D Commission for performance bond (1.25% of 5% earnest money of tender 13644.102

amount

Sub Total of D 13644.102

Sub total E=(A+B+C+D) 21844207.3

Contingencies 5% of E 1092210.365

Physical contingency 10% of E 2184420.73

Price adjustment or escalation contingency 10% of E 2184420.73

VAT @ 13 % of E 2839746.949

Total 30,145,006.08

Birta Paini ISP, Sunsari: Detail Feasibility Study Report v

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EXECUTIVE SUMMARY
Birta Paini ISP is located in Tanamuna VDC, of Sunsari District. It is a FMIS irrigating about 750
ha land. At the intake point Tyangra River, the beneficiary farmers build temporary diversion
structure of local brushwood across the river to divert available water and convey it to the
cultivation land. Being almost yearly damaged during flood, farmers repair it using their own means
and local brushwood. The command area is only seasonally irrigated and mostly depends on rain-
fed cultivation.There are no other significant problems for smooth operation of the system.
Perennial Tyangra Khola, with the catchment area of 12.50 km2, if stored can provide assured
irrigation to the entire command area. The soil is highly fertile and the main crops grown here are
paddy, maize, wheat, and potato.
The ISP has mixed settlement and is easily accessible by road. This sub-project, if implemented will
increase socio-economic condition of its beneficiaries with increase in living standard.
The total civil cost is NRs. 3,31,17,171.28. The total project cost is NRs. 4,61,54,000.00 with NRs.
2,11,715.60 as its cost per hectare. The project is expected to increase the cropping intensity (CI)
from 106.42% to 169.5% with the incremental benefit of NRs. 1,31,02,753.20.
Economic (sensitivity) analysis shows the Economic Internal Rate of Return (EIRR) to be 33.84%
in normal conditions. The same for 10% increase in cost is 31.11%, for 10% decrease in benefit is
30.60% and in the worst case i.e. 10% increase in cost and 10% decrease in benefit is 28.11%. The
Benefit Cost (B/C) ratio at 10% discount rate is 2.81 and the same for 12% discount rate is 2.52.
The indicators show that the project is economically viable.

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TABLE OF CONTENT
VOLUME I: MAIN REPORT
Location Map ............................................................................................................................... i
Sub-Project Layout Map .............................................................................................................. ii
Salient Features ..........................................................................................................................iii
cost summary............................................................................................................................... v
Executive Summary .................................................................................................................... vi
Table Of Content ....................................................................................................................... vii
Acronyms/Abbreviations .......................................................................................................... viii
List of Tables .............................................................................................................................. ix
List of Figures ............................................................................................................................. x
1. INTRODUCTION .................................................................................................................. A
BACKGROUND ........................................................................................................................ A
OBJECTIVE AND SCOPE OF SUB-PROJECT ........................................................................ A
SUB-PROJECT AREA............................................................................................................... B
2. ENGINEERING ..................................................................................................................... D
WATER RESOURCES ASSESSMENT ..................................................................................... D
SURVEYS AND INVESTIGATIONS CONDUCTED ............................................................... E
SYSTEM DESIGN .......................................................................................................................... F
HEADWORKS DESIGN ............................................................................................................ F
CANAL SYSTEM DESIGN........................................................................................................ F
CANAL STRUCTURE DESIGN ................................................................................................ F
3. REVIEW OF AGRICULTURAL SITUATION ...................................................................... G
PRESENT CROPPING PATTERN, YIELDS AND CROPPING INTENSITY .......................... G
PROJECTED CROPPING PATTERN YIELDS AND CROPPING INTENSITY ...................... G
4. SOCIO ECONOMIC PROFILE.............................................................................................. H
DEMOGRAPHIC CHARACTERISTICS ................................................................................... H
5. SUB-PROJECT COST AND ECONOMIC ANALYSIS...........................................................I
Proposed Works and Project Cost and Cost Sharing .....................................................................I
6. CONCLUSIONS AND RECOMMENDATIONS ................................................................... K

VOLUME II: ANNEXTURES

VOLUME III: ENGINEERING DRAWING

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ACRONYMS/ABBREVIATIONS
B/C ratio Benefit Cost Ratio
c/s cross section
CI Cropping Intensity
d/s downstream
DADO District Agriculture Development Office
DDC District Development Committee
DOA Department of Agriculture
DOI Department of Irrigation
eg. example
EIA Environmental Impact Assessment
EIRR Economic Internal Rate of Return
etc. Etcetera / Etceteras
FMIS Farmers Managed Irrigation System
GoN Government of Nepal
GPS Global positioning System
ha / Ha hectare
HH household
INGO International Non Government Organization
ISP Irrigation Sub-Project
km / Km kilometer
lps (l/s) liter per second
m meter
2
m meter square
3
m meter cube
m3/s meter cube per second (cumec)
NGO Non Government Organization
nos. Numbers
O&M Operation and Maintenance
PDSP Planning and Design Strengthening Project
RCC Reinforced Cement Concrete
u/s upstream
w.r.t. with respect to
WUA Water Users Association

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LIST OF TABLES
TABLE 1: BALANCE WATER FLOW (LPS) ....................................................................................................................................... D
TABLE 2: HEADWORK DESIGN ..................................................................................................................................................... F
TABLE 3: RECTANGULAR RCC LINING DESIGN................................................................................................................................. F
TABLE 4: PRESENT YIELD........................................................................................................................................................... G
TABLE 5: FUTURE YIELD ............................................................................................................................................................ G
TABLE 8: DEMOGRAPHY OF THE SUB-PROJECT AREA ..................................................................................................................... H
TABLE 7: LIST OF PROPOSED CIVIL WORKS ..................................................................................................................................... I
TABLE 8: ECONOMIC INDICATORS ................................................................................................................................................ J

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LIST OF FIGURES
FIGURE 1: INTAKE SITE ............................................................................................................................................................. A
FIGURE 2: MAIN CANAL ........................................................................................................................................................... A
FIGURE 3: LOCATION MAP OF BIRTA PAINI ISP .............................................................................................................................. B
FIGURE 4: PLAN VIEW OF THE COMMAND AREA IN GOOGLE EARTH ................................................................................................... C
FIGURE 5: WATER BALANCE ...................................................................................................................................................... D
FIGURE 6: PRESENT CROPPING PATTERN...................................................................................................................................... G
FIGURE 7: FUTURE CROPPING PATTERN ....................................................................................................................................... G
FIGURE 8: POPULATION DISTRIBUTION IN PIE CHART ...................................................................................................................... H

Birta Paini ISP, Sunsari: Detail Feasibility Study Report x

 1. INTRODUCTION
BACKGROUND
Birta Paini ISP is located in Tanamuna VDC, of Sunsari District. It is a FMIS irrigating about 750
ha land. At the intake point Tyangra River, the beneficiary farmers build temporary diversion
structure of local brushwood across the river to divert available water and convey it to the
cultivation land.
The farmers of Birta Paini ISP themselves built earthen canal divert the water into their fields. The
temporary diversion structure and side intake is almost yearly damaged during flood. The farmers
then repair it using their own means and local brushwood. The command area remains barren most
of the year, except for some rain-fed cultivation and irrigated cultivation during flood. There are no
other significant problems for smooth operation of the system.
The main problem for which the farmers seek assistance is a permanent headworks that they can
store the flood water and extend the time of irrigated cultivation. Secondly, they want a fixed canal
alignment of permanent structure because technical solutions is beyond farmers own ability.

Figure 1: Intake Site Figure 2: Main Canal

This detailed feasibility report of Birta Paini ISP has been prepared and submitted to Sunsari
Morang Irrigation as per TOR.

OBJECTIVE AND SCOPE OF SUB-PROJECT

The main objective of the sub-project is to provide technical solution and mitigation measures to
the problems faced by farmers for smooth and assured irrigation which is expected to support
diversify and increase agricultural productivity which shall result in improved socio-economic
condition of the beneficiary farmers. The specific objectives are:
Construction of appropriate headwork
Construction of main and branch canals
To achieve the proposed objectives, a lot can be done in the sub-project area. The scope however is
confined to the following:
Construction of Concrete Barage to store and raised the water level of the Tyangra Khola.
123 m long lined main canal
Construction of a VRB
SUB-PROJECT AREA

Location
Birta Paini ISP is located in Tanamuna VDC of
Sunsari District. The command area is south-west to
junction of Duhabi-Inarwa Road And Koshi
Rajmarg.

Accessibility
The headwork lies 150 m Northward of the Duhabi-
Inarwa Road from crossing of Tyangra River. The
command area lies 7.0 km South -west from
junction of Duhabi-Inarwa Road And Koshi
Rajmarg.
From Budh Chowk an earthen road turns south to
Simariya and tanamuna Village. Hence the ISP is
easily accessible by road.
Duhabi is the nearest municipality to the subproject
and Biratnagar Airport is 16 km from the junction
mentioned above.
Figure 3: Location Map of Birta Paini ISP

Figure 4: Plan View of the Command Area in Google Earth
Command Area
Command area of the ISP lies on the East
banks of Tyangra Khola. The area is
continuous mild terraced. It is bounded by
cultivation land and settlement with land
use especially for cultivation and a little
portion for settlement, drains and roads.
The soil is highly fertile, suitable for crop
as traditional paddy, wheat, maize and
potato. Recent attraction and shift towards
vegetable farming can be promoted further
by assured irrigation. Strengthening and
rehabilitation of existing canal system will
ensure increased irrigation facility to the
entire command area.
Demography
The settlement of the beneficiaries is away
from the command area. The population of
11252 lives in 2433 households (HH). The
average family size is thus 4.62 people per
HH. The following chapters clearly show
the population distribution composed of
Chaudhary (Tharu), Brahmin, Kshetri,
Dalit, Janjati and other ethnic groups living
here.
Climate
The climate is warm-temperate. Annual
precipitation of the area is about 123.5mm
with about 80% occurring during monsoon.

Topography, Soil Type and Agriculture

The project area lies in terai ecological region south to the Siwalik range. Being relatively flat and
having good drainage conditions with no water logging, the area is highly suitable for irrigated
agriculture.
Headwork site consists of silty soil and main canal consists of clayey loam. Soil layer in command
area is about two to five meters deep with good drainage properties. The soil is highly fertile and
suitable for irrigated agriculture. The main crops grown here are paddy, maize, wheat, and potato.
Seasonally irrigation leaves the land barren for lean periods.
Water Source and Water Balance
Perennial Tyangra Khola, with the catchment area of 1.50 km2 is the source. Measured flow at the
intake site on 15thJune 2015 by surface float method was 2000 lps. Comparing total crop water
requirement with the 80% reliable flow, available water is adequate to provide assured irrigation to
the entire command area, as the balance flow is positive (+ve).
 2. ENGINEERING
WATER RESOURCES ASSESSMENT

2.1.1. Assessment of flows in the Source

Tyangra Khola, the source for the proposed sub-project originates as a collection of runoff water
from hillside of Dharan. The 1.50 km2 catchment area is half covered with dense vegetation and half
of the catchment area has settlement. At intake, river flow is Perennial. Available water is not
sufficient to irrigate the entire command area. Absence of hydrometric gauging station in the
catchment compels us to depend on the hydrological information collected during survey. Measured
flow at the intake site on 15th June 2015 by surface float method was 2000 l/s.
Following MIP and WECS Method specified in the PDSP Manuals half monthly values of 80%
reliable flow was calculated. Computation of crop-water requirement was done and water balance
was checked on half monthly basis against the former 80% reliable flow. Water balance study
shows that the available water is sufficient to supplement irrigation as shown by balance flow in
following figure. Details are presented in respective Annexure.
Table 1: Balance Water flow (lps)

Month Jan Feb. Mar Apr May Jun Jul Aug Sept Oct Nov Dec
I 104.98 31.08 31.84 38.46 0.16 126.64 705.52 1038.49 1192.82 268.32 270.30 194.60
II 64.49 0.58 37.53 19.65 23.30 397.94 1079.19 1212.00 825.59 2.49 104.59 145.34

Figure 5: Water Balance

2.1.2. Crop Water Requirement

Crop water requirement was computed according to the standard format of MIP procedural
guidelines. Half monthly values of actual evapotranspiration (AETcrop) are obtained by multiplying
potential evapotranspiration (PETo) and crop coefficients (Kc) of corresponding crops. Land
preparation loss for late monsoon paddy (120 days) has been taken as 55mm and 50mm for two
consecutive months staring from mid-June. Deep percolation loss for the same is considered as
75mm per month for 105 days and corresponding evaporation loss is also considered. Total crop
water requirement (lps/ha) obtained is deducted from effective to obtain net cropwater requirement.
Considering the field efficiency of 65% conveyance efficiency of 75% and main canal efficiency of
70%, the total irrigation water requirement (lps/ha) at the intake is derived for each individual crop.
2.1.3. Scheme water balance Computations and Interpretation

To figure the total water requirement of the scheme, total water requirement (lps/ha) of every crop
at the intake is multiplied by its corresponding cropping area (ha) and then added. This value is then
deduced from 80% reliable flow to obtain scheme water balance (lps) on half monthly basis. The
maximum value obtained was 345.86 lps for first half of August. Considering safety factor of 10%
the value becomes 397.744 lps rounded up to 400 lps.

SURVEYS AND INVESTIGATIONS CONDUCTED

2.2.1. SURVEYS

Survey and investigation was conducted by Karikh Engineering Consultant Pvt. Ltd. Engineers
along with members of WUA walked through the canal alignment to identify main problem, then
carried out actual field survey and did table work including detail design, drawing, economic
analysis and cost estimate and report preparation. Main activities carried out during field survey are
as following:
Topographic Survey

For Desk Study, Google Earth maps were studied to understand general topography of the site.
Field Study comprised of walk through survey, followed by detail survey.
Command Area Survey

Google Earth satellite image including discussion with WUA gave a good understanding of the
command area. It was then verified by walk through survey and by the use of Global Positioning
System (GPS) instrument.
Longitudinal and Cross-section Survey of Canal & Major Structures

Leveling survey was done to obtain longitudinal section (l/s) and cross section (c/s) of headwork
site and main canal. C/s data for the main canal was obtained at 30 m interval with details of the key
problem zone in-between.
2.2.2. INVESTIGATIONS

The proposed rehabilitation sub-project has limited problems with technical solution as an earthen
dam, two simple side intake and canal lining. Sub-surface investigation was not deemed necessary
and hence was not carried.
 SYSTEM DESIGN
HEADWORKS DESIGN
An Concrete Barrage with Gatted dam is proposed for headwork. The regulator proposed to divert
flow from the river into the intake canal concrete work and launching apron is planned on river bed
before the return walls. For the headworks, being Reinforced Cement Concrete (RCC), piers, return
walls, etc. are designed. 10.m u/s and 20m d/s cutoffs are designed. Designed headwork meets
following specification:
Table 2: Headwork design
S No Particular Dimension
1 Barrage height 2.982 m
2 pier width 0.5 m
3 Gate size 2.45X1.8m
4 Minimum River Level RL 75.199
5 Pond level RL 77.181
6 No. of bays 4 no.
7 Canal Capacity 0.975 cumecs
8 High Flood Discharge 4 cumec (River)
9 Gate Type Flat steel gate with regulation arrangement

CANAL SYSTEM DESIGN

Main canals are branch out into branch canals. The designer finds it inappropriate to disturb the
existing canal system network and hence has not ventured into it. Barrage is proposed in rver to
divert design discharge into the gated controlled canal and a VRB are designed for the canal.

CANAL STRUCTURE DESIGN

Lined canal with rectangular section for 123m, a VRB at road crossing at CH0+210 is proposed..
The later sections are left earthen. The canal design was done using SW_Canal a canal design
software which uses Manning's equation for flow calculation. Not disturbing the existing canal
section and slope, series of trial and error resulted in the following safe sections.
Table 3: Canal Design Profile

S. N. Lining Type Location Chainage Inner Section

1 RCC Lining : Rectangular main canal 0+227 to 0+350 1.5m X 0.5m
(wall 10cm thick,
bed10cmthick)
4 Double Barrel VRB Main canal 0+210 3.5m X 7.0m
After the RCC lining cutoffs are provided along with stone rip-rap to minimize the scouring effect
of the water when it moves from lined section to earthen section.
 3. REVIEW OF AGRICULTURAL
SITUATION
PRESENT CROPPING PATTERN, YIELDS AND CROPPING INTENSITY
As mentioned earlier, the main crops grown here are paddy (monsoon), wheat and potato (winter)
and maize (spring). The following table depicts the cropping pattern.

Figure 6: Present Cropping Pattern

The present yield data obtained are shown below.

Table 4: Present Yield

Crop Paddy Wheat Maize Potato

Yield (t/ha) 3 2.5 2.1 7.0

Total cropping intensity for present situation is calculated to be 56.67%.

PROJECTED CROPPING PATTERN YIELDS AND CROPPING INTENSITY

The future crop calendar and the cropping pattern are likely to change due to increase in cultivable
land from improved irrigation increasing the yield and cropping intensity. The following figure
depicts the intended cropping pattern.
Figure 7: Future Cropping Pattern

The future yield is shown in table below.

Table 5: Future Yield

Crop Paddy Wheat Maize Potato Vegetables

Yield (t/ha) 3.50 3.00 3.50 12.0 13.0

Total cropping intensity after the project completion is estimated to rise to 80.67.
PDSP manual and field data were followed to do the necessary calculations.
After project implementation, increase in yield and cropping intensity, net incremental benefit
estimated is NRs 1,31,02,753.20.
 4. SOCIO ECONOMIC PROFILE
DEMOGRAPHIC CHARACTERISTICS
Total population residing in the sub-project area is 11252 in 2433 HHs, resulting in average (avg.)
family size of 4.62 per HH. The dominating group was the Tharu indigenous ethnic group. The
population distribution is now composed of Kshetri, Brahmin, Chaudhary (Tharu), Janjati and Dalit
ethnic groups. Details are shown below:

Table 6: Demography of the Sub-Project Area

S.N. Ethnicity HH%
1 Chaudhary (Tharu) 45.57
2 Brahmin 17.34
3 Kshetri 14.85
4 Others 11.55
5 Magar 6.80
6 Dalit 3.89

Figure 8: Population Distribution in pie chart

 5. SUB-PROJECT COST AND
ECONOMIC ANALYSIS
PROPOSED WORKS AND PROJECT COST AND COST SHARING

7.1.1. Proposed Works

Proposed civil works were determined based on discussions with the farmers and survey carried out.
Problems indicated were observed, discussed and duly noted. Main problems of headwork and canal
alignment were addressed in the design to provide optimum technical solution and are estimated
accordingly. Proposed civil works are listed below:
Table 7: List of Proposed civil Works

S.N. Description of work Unit Chainage

1 Concrete Barrage with gate 4 No 0+000
2 Intake main canal 1 no 0+000
3 VRB 1 no 0+210
7.1.2. Project Cost

Total project cost is summation of cost for civil works, general items, miscellaneous works, other
facilities and commissioning; all based on standard engineering practice and applicable prevailing
procurement rules.
The civil works (A) sums up to be NRs.20,425,870.66 . Estimate has been carried on the basis of
quantity estimate and rate analysis following standard norms and approved district rate for FY
2071/72 assuming that the civil works will be carried out through civil contractors.
General items of works include insurances of various kinds with commission for performance
bonds. Miscellaneous Works include environment protection works and institutional development
works targeted for WUA. As per prevalent procurement Act and Procurement rules provision for
VAT, contingencies and supervision, physical contingencies and price escalation contingencies has
also been estimated separately. Work Charges, minor expenses and contingencies are incorporated
as other facilities . 13% VAT has been added while Commissioning has been done . All of these
adds up to NRs. 9,719,135.42 on rounding the total project cost becomes
NRs. 30,145,006.08 . Dividing the total cost with the net command area 750ha, cost per hectare
becomes NRs.40,193.34 . A brief summary is presented in previous section of this volume of report.
 7.1.3. Economic Analysis and Indicators

Economic analysis has been carried out as per standard practice and on the basis of following
assumptions:
The construction period is taken as 2 years
The expected life of the project is assumed as 20 years (from the year of construction)
Out of total cost of the project 50 % will be allocated in first, second year each
The annual Q&M cost is considered of 3% of construction cost
The economic prices for un-traded commodities have been assumed equal to financial
prices.
Project will gain full development situation from the third year of its implementation.
Full agricultural benefit will be realized from sixth year of project completion. 40% of the
agricultural benefit will be realized in the second and third year, 60% in the fourth year, 90
% in the fifth year and 100 % in the sixth year onwards.
Financial prices of inputs and outputs are obtained from farm gate prices of the district.
Detail of economic analysis is presented in respective Annex, but a preview is given below:
Table 8: Economic Indicators
Indicators Values
EIRR 35.96%
EIRR (increasing 10% construction cost) 36.16%
EIRR (decreasing 10% benefit) 35.62%
EIRR (increasing 10% construction cost and decreasing 10% benefit) 32.77%
B/C Ratio at 10% discount rate 3.02
B/C Ratio at 12% discount rate 2.70
The indicators show that the project is economically viable.
 6. CONCLUSIONS AND
RECOMMENDATIONS
Conclusion
Seasonal irrigation in the project area cannot give efficient output. Proper canal lining and
construction of permanent headwork with controlled and regulated flow is beyond WUAs financial
and technical capacity.
The rehabilitation work does not need land acquisition. It seems as an environment friendly project
with proper O&M. This sub-project, if implemented will increase socio-economic condition of its
beneficiaries with increase in living standard.
Recommendation
Birta Paini ISP is techno-economically viable and environment friendly and socially necessary.
Therefore the Sub-Project is recommended for implementation.