Assessment Of Irrigation System In Bangladesh.docx

Assessment of the Centre for Irrigation and Water Management Model in Jamunna Village of Bogra District of Bangladesh

Guided By Md. Hussain Khan Director (CIWM) Rural Development Academy

Submitted By Ms. Pallavi B. Mane PGDRDM VIII Batch NIRDPR, Hyderabad

Acknowledgment It is an immense pleasure to express our gratitude to Mr. M. A. Matin, Director General, Rural Development Academy, Bogra for providing me an opportunity to complete my internship at RDA. I am also very much grateful to the course co-ordinator at RDA Mr. AKM Zakaria for assigning me a project with Centre for Irrigation and Water Management. I would like to express our sincere thanks to the Director of Centre for Irrigation and Water Management Md. Hussain Khan and the Deputy Director Mr. N.I. Khan for conducting very informative classroom sessions explaining the activities and models developed by CIWM. I would like to convey my heartfelt gratitude to Dr. Md. Abdul Majid and Mr. Asim Kumar Sarker for coordinating field visits and expending their support in translation as well as collection of the for the accomplishment of this report. I would also like to express my deep appreciation and gratitude to a Deep Tube Well owner and farmers of Jamunna village without their response this report could not be completed. I sincerely recognize hospitality and services of the hostel and cafeteria during my stay in Rural Development Academy, Bogra. I express my deep gratitude to NIRD, Hyderabad and CIRDAP, Dhaka without their effort it would not have been possible to complete my internship at RDA. Last but not the least I am also grateful to my friends from NIRD Ms. Hemangi, Ms. Susmita, Mr. Nishkarsh and Mr. Kunal for their moral support during this study.

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Abstract Groundwater is one of the largest natural resources of Bangladesh and it has contributed significantly in achieving food security in 1970 and 80s through the construction of Tube Wells. These Tube wells are not used to its full potential as the usage is restricted to irrigation only. Centre for Irrigation and Water Management of Rural Development Academy, Bogra has taken good initiative to harness groundwater development through multipurpose use of Deep Tube Wells.

CIWM constructs a Deep Tube Well in selected village attached with a full range of equipment required for multipurpose use of water for irrigation, domestic use, drinking water, dairy, poultry, fish culture, hotels and other small business activities in the village.

First part of this report introduces Centre for irrigation and Water Management of RDA and highlights the activities of it. It also reflects on overall scope in relation to physical parameters and the economics of multipurpose use of Deep Tube Wells. Through a case study of a farmer and cash flow analysis of a Tube Well Owner, this report makes an attempt to elaborate the benefits that are resulted from the project in Jamunna Village of Bogra District of Bangladesh. In addition to the conclusions, this report contains recommendations and the framework for poverty alleviation through groundwater exploitation by offering multipurpose use of Deep Tube Wells.

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Table of Contents Title

Page No.

1. Introduction 1.1.

2

4

Centre for Irrigation and Water management (CIWM) Topics

1 1

1.1.1 Vision

1

1.1.2 Activities

1

1.1.3 Models Developed by CIWM

1

2 Methodology

1

3 CIWM Model

1

4 Deep Tube Well Management

3

5 Jamunna IWM Project, Shahjahanpur, Bogra District

3

6 Cash Flow Analysis of DTW Owner for the year 2014

4

7 Financial Analysis of Jamunna CIWM project

5

8 Case Study of a farmer

6

9 Training on Income Generation Activities in Jamunna Village

7

10 RDA-Credit

7

11 Observations

8

12 Conclusion

9

13 Recommendations

9

iv

1. Introduction: 1.1 Centre for Irrigation and Water Management (CIWM) CIWM was established in 2003 to reach rural people with the benefits of RDA- developed irrigation and water management models. 1.1.1 Vision: CIWM works for people to upgrade their socio-economic opportunity, reduce poverty and hunger, improve quality of life, regenerate and sustain natural resources, protect environment and keeping and keeping water resources at the nucleus level. 1.1.2 1. 2. 1.1.3 1. 2. 3. 4. 5.

Activities: Research and Action Research Project To develop replicable models that address development issue Some Models developed by CIWM-RDA Low Cost DTW and its Multipurpose Use Buried Pipe Irrigation System RDA Credit and Training for IGA activities Arsenic Free Safe Drinking Water Supply Model Two Storied Agriculture System with Solar Irrigation System

2. Methodology: Different methods are adopted to get complete understanding of CIWM activities. Class room discussion with The Director and The Assistant Director of CIWM gave an Overview of its activities and models developed by it. This lernings are further enriched during Field visit to Jamunna IWM Sub- Project In Jamunna village where we h ad a focused group discussion with Tube Well owner of IWM Sub- Project, Farmers and other tube well owner. Semi structured Interviews and case studies of farmers, tube well owner are also conducted in order to understand the laying out benefits of the projects. Further the data is analyzed by using MS Excel. Financial analysis of a project is done on the basis of the data collected to calculate cash flow of a project for the year 2014. This data is forecasted for next 10 years with a growth rate of 10 % for both inflow and outflow and discounted with a rate of 12 Percent per annum. Later Net Present value, Benefit cost ratio, Internal Rate of Return, Break Even Period is calculated. 3. CIWM Model CIWM model is an integrated model and it is the combination of all CIWM activities like multipurpose use of Low cost DTW to ensure Productive use of water for different agro based activities like irrigation, livestock, poultry re, food rearing, fish culture, food processing, etc, it also serves a simultaneous source of domestic water supply, Buried pipe Irrigation Model, RDA Credit and Training for IGA activities,

Arsenic Free Safe Drinking Water Supply Model, Two Storied Agriculture System with Solar Irrigation System. This model is replicated in 400 villages of Bangladesh. Total cost of implementing this model is 45 lakh includes physical infrastructure. Minimum 10 percent capital investment should be contributed by an individual farmer/NGO/ water user groups (Samitee) /cooperatives who wants to implement this model in the village. This model not only addresses the issues related to water but also provides entrepreneurial opportunities to DTW owner and persons receiving training on IGA activities.

Overhead Tank

Use of Water in tea shop

Buried pipe irrigation system

Domestic Water Use

Use of water for Fish culture

Interaction with DTW owner & Farmers

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4. Deep Tube Well Managements Following flow chart shows how the implementation process and functioning of this model. Identification of Village Field Inventory/ Socio Economic survey

Identification of Water Users Group Probable Size Different Purpose of Water Use Identification of Different Water Users Group

Preparation of Village Resource Book MoU Between RDA and NGO/Owner/User Group/Samitee

Technical Financial and other terms and Condition Repayment Schedule of Capital Investment

Promotion of Village Based Water Users Group Training on IGA

RDA Credit Follow up of the Project Activities Recovery of money by Beneficiaries Increased Income and Well Being

5. Jamunna IWM project, Shajahanpur, Bogra district Jamunna IWM Sub project was established in 2012 and owned by an individual farmer holding a land of 7 Acres. He is one of the few large farmers in the village and also a chairman of Village Development Samitee. Following are the details of Jamunna IWM project  Name of the owner: Md. Hafizar Rehman Titu, He has contributed Rs 4.5 Lakh towards 10 % seed capital and he has to pay back rest of the amount to RDA in 15 years.  Infrastructure constructed:    

Automatic DTW Overhead Tank (20, 000 ltr) Buried Pipe Irrigation Network (Command Area: 66 Acres ) Domestic Water Supply Network (200 HHs) 3

 Submersible Pump Motor (30 hp)  Technical Aspects      

Capacity: 2 Lakh Ltr/hr Depth: 100 Feet Bore hole Diameter: 100 CM Housing pipe: 60 Feet Submersible Pump: 60 Feet KHB Brand Overhead Tank: 200000 Litre

6. Cash Flow Analysis of DTW owner for 2014 Cash flow of a DTW Owner has been analyzed for the year 2014 in order to calculate the Annual net income generated through CIWM model. Table 6.1: Cash Flow analysis of DTW owner

Season/ Details

Quantity

Rate (BDT)

Amount(BDT )

Operator

1

5000/ Month

60000

Lineman

1

5000/Month

60000

Boro-Potato

4 Months

8000/ Month

32000

Aus- Rice 4 Months Aman- Rice/Maize/ Vegetables 4 Months

10000/ Month

40000

10000/ Month

40000

Drinking

5000/Month

60000

Cash outflow Salaries and Wages

Electricity Expenses

12 month

Installment Paid

280000

Total Cash Outlow

572000

Cash Inflow Irrigation Water

Drinking Water Shops/ Business

Boro- Potato

66 Acre

1600/ Acre

105600

Aus- Rice

66 Acre

4800/ Acre

316800

Aman- Maize

30 Acre

1600/Acre

48000

Aman-Rice/ vegetables

36 Acre

600/Irrigation (Av 5 108000 irrigation/Season)

1000 persons

25/ Person, 100/HHs 300000

10 Shops

200/shop/month

200 HHS, 5 Members/ Family

24000 4

Poultry Fishery/Pond

3 Poultry Unit Two months in a year

2 Paisa/litre

300/ month

10800

1

800/ Pond

1600

Total Cash Intlow

914800

Net Cash Flow(Net Income Generated through CIWM Model)

342800

Above table shows that Water from DTW is used for various purposes in Jamunna Village. Out of 400 HHs in the village 200 HHs are covered under this tube well and still there is scope to increase income by providing facilities to remaining 200 HHs. Buried pipe irrigation network also reduces water losses due to evaporation and also reduces power consumption from 80KW to 20 KW.

7. Financial Analysis Jamunna CIWM Project Data generated from above cash flow is further forecasted for next 10 years with a growth rate of 10 % for both inflow and outflow and discounted with a rate of 12 Percent per annum. Later Net Present value, Benefit cost ratio, Internal Rate of Return, Break Even Period is calculated. Table 7.1 Financial Analysis of DTW Parameters

Value

Discount Rates (Lower)

12 %

NPV (BDT)

1116641.37

Benefit Cost Ratio

1.1738

IRR

19 %.

Break-Even Period (Years)

6.6594

7.1 NPV (NET PRESENT VALUE)  

It is the difference between the total of the present value of the cash inflows and cash outflows. Here the NPV of the given project proposal is 1116641.37 and is positive. Hence it is feasible to implement this type of project on a large scale.

7.2 BENEFIT TO COST RATIO 5

 

It refers to the ratio of Present Value of cash inflows to Present Value of cost (cash outflows). Here it is 1.1738 and is greater than one. It is thus the right decision of investing the money by an individual farmer.

7.3 IRR (INTERNAL RATE OF RETURN) 



IRR is the situation when Cash inflow is equal to cash Outflow. It is the rate of return at which NPV is zero. It is to be compared with the desired minimum rate of return i.e. % (initial interest rate). The highest rate i.e. the calculated IRR is 19 %. It is more than the minimum rate of return hence it is feasible and viable.

7.4 BREAK-EVEN PERIOD AND QUANTITY It is the time within which we get back the initial investment amount. It is 6.6594 years which is less than half period given to a farmer to repay Rs 45 lakh back to RDA.

8. Case Study This project has not only benefited a DTW owner but also farmers having their lands in the command area of this project. Md. Rafiq Ul Islam is one of the small holding farmers having his 0.83 Acre land in the command area of DTW. He grows three crops a year. Potato, Paddy and Maize are the Major Crops Grown by him. Before the installation of this tube well he used to take water facilities from another Shallow Tube Well in the village that covers only 22 Acres of land. His land does not directly fall under the STW’s command are thus the cost of irrigation was high. But after the installation of DTW under this project he started getting water irrigation at comparatively low rates. Rates of irrigation water also differ from crop to crop in case of DTW which used to vary in case of STW. According to him an easy accessibility to water for irrigation coupled with farm mechanization has been significantly contributing towards increased crop production and income. He said his income from agriculture is increased by 20,000 BDT after the installation of DTW. Table 8.1 shows the Production and Net agriculture Income Before and After Irrigation Facilities Crop

Production Before (MT/ Acre)

Production After (MT/ Acre)

Rate per (BDT)

MT

Net Income (2014) (BDT)

Potato

7-10

10-11

9000

35235

Paddy

2.8-3.0

3.5-4.0

17500

37268.75

6

Maize

2-2.5

2.5-3.0

13750

11464.38 83968.13

9. Training on IGA in Jamunna Village Besides on station training at RDA, Bogra Centre for Irrigation and Water Management organizes farmers field school where intended beneficiaries get opportunities to select their need based IGAs considering their local demand, marketing facilities, and past experience. This enables farmers to become qualified for RDA- Credit. In Jamunna Village training on following IGA activities has been imparted to farmers in the year of 2013. Table 9.1: Trainings Provided on Income Generation Activities Sr. No

Name of the Training

No. of Days

No. of Beneficiaries

1

Farmers Field School

3

80

2

Nursery Raising

4

4

3

Homestead Pond Management

5

5

4

Fish culture

5

8

5

Cattle Rearing

5

2

6

Maintainance of Farm Equipment

6

3

Total

102

10. RDA-Credit Besides domestic water use, RDA credit enables rural people to run economic activities like crop cultivation, horticulture and nursery business, poultry, Duck and Goat Rearing, dairy, homestead gardening, hotel, restaurants, tea stall business, Small and cottage industries and other IGAs having access to safe water.

7

Rate of interest of the RDA-Credit is 11 Percent per annum of which 11 percent is used for the management of credit operations and the rest 3 Percent goes to CIWM. Table….. Shows the status of RDA-credit in Jamunna Village as on February 2015. Table 10.1 Status of RDA credit in Jamunna Village Sr. No

Particular

Amount

1

Number of Groups

5

2

Seed Capital

16,00,000

3

Number of Loan

60

4

Male

39

5

Female

21

6

Total amount of Loan disbursed (BDT)

50,60,000

7

Total Saving (BDT)

2,58,000

8

Due For Realization

38,93,500

9

Repayment Rate

10%

11. Observations       

Tube well owner is a large farmer and owns 7 Acres of land, and a chairman of Jamunna Gram Unnayan Samittee. The irrigation water charges vary from crop to crop, as the water requirement of each crop is different. There is little huge difference between the rates charged by individual tube well owner and DTW. Private Diesel operated STW owner Charges 5500 BDT for paddy which is 15 Percent more. Though the financial transactions are transparent, accounts are not maintained properly. Availability of Irrigation Water has also helped in Agriculture Diversification (Paddy-MaizePotato and other vegetables) It is also resulted in increased Crop Production and Income for Farmers. 8

12. Conclusion CIWM has developed a unique and integrated model which has successfully ensured optimum utilization of ground water resources in Jamunna Village. Apart from addressing water related issues installation of this project has also played a great role in providing entrepreneurial opportunities to more than 100 people through IGA trainings and RDA-credit. Multipurpose and year around use of DTW has also resulted in profitable investment to the DTW owner. Provision of seed capital by RDA to implement a project with huge investment can encourage and motivate farmers to take up an entrepreneurial activity, at the same time 10 percent contribution by him ensures the feeling of ownership in investor. Construction of physical assets under the supervision of RDA rather than paying liquid money to an investors also avoids miss utilization of money.

13.Recommendations  Tube well owners need to be trained on Accounting and financial Management.  Raised bed cultivation and two storied agriculture are good initiatives that need to be replicated in large scale.  Much more attention must be devoted from the very beginning to farmer participation in such tube well investments and to the formation and sustained operation of water user groups.

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