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

1.1. Centre for Irrigation and Water management (CIWM)

Topics 1

1.1.1 Vision 1

2 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

4 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

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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 Activities:
1. Research and Action Research Project
2. To develop replicable models that address development issue
1.1.3 Some Models developed by CIWM-RDA
1. Low Cost DTW and its Multipurpose Use
2. Buried Pipe Irrigation System
3. RDA Credit and Training for IGA activities
4. Arsenic Free Safe Drinking Water Supply Model
5. 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 Domestic Water Use

Use of water for Fish culture

Use of Water in tea shop

Buried pipe irrigation system 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 Technical Financial and other terms and
Group/Samitee 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)
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  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

Amount(BDT
Season/ Details Quantity Rate (BDT) )
Cash outflow
Salaries and Wages Operator 1 5000/ Month 60000
Lineman 1 5000/Month 60000
Electricity Expenses Boro-Potato 4 Months 8000/ Month 32000
Aus- Rice 4 Months 10000/ Month 40000
Aman- Rice/Maize/
Vegetables 4 Months 10000/ Month 40000
Drinking 12 month 5000/Month 60000
Installment Paid 280000
Total Cash Outlow 572000
Cash Inflow
Irrigation Water Boro- Potato 66 Acre 1600/ Acre 105600
Aus- Rice 66 Acre 4800/ Acre 316800
Aman- Maize 30 Acre 1600/Acre 48000
Aman-Rice/ 600/Irrigation (Av 5 108000
36 Acre
vegetables irrigation/Season)
200 HHS, 5
Drinking Water Members/ Family 1000 persons 25/ Person, 100/HHs 300000
Shops/ Business 10 Shops 200/shop/month 24000
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 Poultry 3 Poultry Unit 2 Paisa/litre 300/ month 10800
Two months in a
Fishery/Pond year 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

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  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 Production After Rate per MT Net Income

(MT/ Acre) (MT/ Acre) (BDT) (2014) (BDT)

Potato 7-10 10-11 9000 35235

Paddy 2.8-3.0 3.5-4.0 17500 37268.75

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 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.

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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-Maize-
Potato and other vegetables)
 It is also resulted in increased Crop Production and Income for Farmers.
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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.