Community Groundwater Irrigation Sector Project (CGISP)

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Project Duration: 1999-2007
Budget :C$ 4.95 M
Partners: Department of Irrigation and NGOs
Location: Twelve Terai Districts of Nepal

Agriculture is the backbone of Nepal's economy, accounting for 80% of the total employment and contributing significantly to the national income. However, agricultural production and productivity are low. A key reasons for this is that small farmers have limited access to credit for irrigation and agricultural inputs as many do not have the required collateral. There is also inadequate integration of irrigation development with extension services. A farming system based on irrigation, improved access to credit services and linkages to markets would significantly contribute to increasing farm income and employment opportunities, especially in the Terai region of Nepal.


The shallow tube wells (STW) are at the heart of the Project. Designed to create an irrigation system owned, managed and run by local communities, its four components are:

  • Community STW development. This includes the establishment of Water Users Groups and Water User Associations to effectively operate and maintain STW.
  • Improvement of farm-to-market roads. Road improvement works will cover 840 km, including 600 km of access roads and 240 km of village roads
  • Provision of credit for 15,000 STW investments. This includes credit for 13,500 community tube wells, 1,500 individual tube wells and production credit to enable farmers to purchase needed farm inputs.
  • Implementation assistance and institutional strengthening through transfer of technology, training and
    sharing know-how. Emphasis has been placed on training as part of the skill development program.

Project Area:
The Project covers 300 Village Development Committees in 12 Terai districts rich in high quality
groundwater resources. These include Chitwan, Parsa, Bara, Rautahat, Sarlahi, Mahottari and Dhanusha in the Central Development Region and Siraha, Saptari, Sunsari, Morang and Jhapa in the Eastern Development Region. Some 110,000 small and poor farming households will be the main beneficiaries. Selections of the village development committees for the Project are based on a number of factors, including the prospects of STW for irrigation, the willingness of farmers to participate in the project, and the availability of support services.

Project Financing:
The Department of Irrigation of His Majesty's Government is implementing the Project from the fiscal year 1999-2000. The Asian Development Bank is providing loan assistance for installation of STW, improvement of farm-to-market roads, provision of credit and implementation assistance, and capacity development.

The Canadian International Development Agency (CIDA) is funding the Project's community mobilization component and related aspects of capacity building. The Canadian Centre for International Studies and Cooperation (CECI) and its partners - the Coady Institute and GEOCE Pvt. Ltd. - are contracted by CIDA to carry out this component. Private sector service providers including drillers and suppliers of equipment and materials and private credit institutions are being promoted as they play an effective role in providing the
services.

Goals and Objectives:

  • Increase agricultural productivity on a sustainable basis
  • Improve incomes of small farmers through participatory group shallow tube well development
  • Develop capacity of Water Users Groups and Water Users Associations
    equipment and inputs for irrigated agricultural development.

Target Groups:
Most individual STW are owned and operated by large farmers owning more than 2 hectares. A large number of small farmers having less than 1 ha of land have no access to irrigation. The Project aims at expanding STW to cater to this later group by removing the need for collateral. Investment in STW will be tied to other critical investments, like farm-to-market roads, extension services and supply of fertilizer and improved seeds.

Expected Results:
At the end of the 8-year project period, the following results are expected:

  • Significant awareness of the local opportunities in addressing resource-sharing issues.
  • 13,500 Water Users Groups and 300 Water Users Associations operating as capable and effective
    community-based organizations to manage local resources, including STW irrigation systems and
    farm-to-market roads.
  • Improved irrigated agriculture with the installation of 15,000 STW covering a command area of 60,000
    hectares, benefiting 657,000 people spread across 110,000 households
  • Rehabilitation and maintenance of 840 km of road
  • Increased income for small farmers from improved irrigated agriculture.
  • Enhanced role for women in Water Users Groups and Water Users Associations.
  • Increased use of improved and environment-friendly agricultural practices.

CGISP's Approach:
The Project creates strong and capable community organizations like the Water Users Groups and Water Users Associations. Local, regional and national Nepalese non-governmental organizations (NGOs) are mobilized for supporting the formation of these institutions. The Water Users Groups are informal,
self-forming groups of small farmers. They play the most significant role in the implementation of the Project. Five or more farmers voluntarily join the Water Users Groups agreeing to share water from the installed STW. Each of the members should own less than one hectare but together they must have four hectares of
contiguous land to be irrigated by a single STW.

The members must agree to cultivate two or more crops, contribute cash to the group fund, and offer joint
liability for STW and production credits. The Water Users Groups are registered at the Groundwater Field
Offices. The group membership qualifies them to credit for installing STW and purchasing agricultural inputs.
Since the farmers do not have to provide collateral, they achieve as a group what they were unable to achieve individually. Credit is also available to individual farmers who own a minimum of 2.5 hectares of contiguous land. Collateral is mandatory in case of individual STW.

The Water Users Association is a federation of at least 15 Water Users Groups in a particular Village
Development Committee. They are recognized by the Chief District Office and are responsible for road
planning, construction and maintenance. They support farmers for market opportunities, supply of fertilizer and improved seeds and market agriculture products. They are eventually expected to evolve as a self-reliant and financially viable farmers association that would give a voice to poor farmers, increase their bargaining power in the market place and with local authorities. Eventually, WUA will play the role of credit agents and possibly evolve as co-operatives.

As part of the local capacity building exercise, farmers are to be trained for a pro-active role. Their access to agricultural extension services would be enhanced. The Sub Project Facilitation Team (SPFT) fielded by
participating NGOs supports them. The Team consists of a social mobilizer, a financial service facilitator, and a junior agricultural technician. Social mobilization and formation of STW groups, as well as facilitation of financial services, are essential for the successful implementation of the Project. NGOs are found to be best suited for providing these services.

Results

  • 4598 Water User Groups have installed STW
  • Between 25,000 and 30,000 farmers have been mobilized through WUG, benefiting between 125,000
    and 180,000 family members
  • 69 Water User Associations have been registered and trained
  • CGISP has become the leading project in terms of new area of irrigated land habilitated per year (14,774 Ha)

Impact

  • More than 60% of the beneficiaries are women
  • Yields of paddy, wheat and maize have all increased
  • Average repayment rate of the credit reported at over 90%
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