SMALL-SCALE IRRIGATION PROJECT

PES is based on an evaluation prepared by Ammann and Whitney (A&W), Consulting Engineers, and an issues paper prepared by the A.I.D. project officer, and covers the period 7/1/80-7/30/8l. In the last 12 months, the project"s first major sales program was undertaken with surprising success. Over 45,000 pump sets have been sold directly to farmers by 329 private dealers (newly appointed by BADC) out of the seven BADC warehouses, bringing cumulative project sales to 63,000. Private-sector production of components is now a routine matter. However, sales were skewed in favor of the Bogra warehouse, not reflecting actual need, which is more evenly distributed. Further analysis is recommended to enable BADC to boost sales (employing a sales program acceptable to USAID) in slow areas and to determine optimum and balanced inventory levels for each warehouse. A&W has developed a procurement program to ensure this and also to accomplish disbursement of the final allotment of funds for this project. Low figures on credit sales by agencies other than the 329 new dealers, who have not participated as planned, seem to indicate low availability of allocated credit to small farmers. To correct this, the level of participation desired by these agencies should be determined, and USAID"s proposed program to Bangladesh Bank to stimulate credit sales through district branches should be expedited. Since the World Bank, through the Integrated Rural Development Program (IRDP), is proposing a parallel sales and distribution program for hand pumps for l982, coordination between BADC and IRDP is recommended to avoid conflict between the programs. It is recommended that BADC review future procurement needs and the expected lead time in acquiring components such as pipe, and request USAID to extend, if necessary, the project completion date. It is also recommended that BADC discuss with relevant government agencies a possible follow-on to the project.