A developmental project with an estimated total cost of thirty-eight million six hundred thousand (US $38.6 million) will be allotted to the agriculture sector of Nepal. On 21st December 2005, the OPEC Fund for International Development signed a loan agreement of 7 million US$ with the Kingdom of Nepal. Both the concerned parties signed this agreement in order to bring improvement in the living standards of the rural smallholders in Eastern & Central development regions by enhancing the efficiency & output of farmer–managed irrigation systems.
The Community Managed Irrigated Agriculture Sector Project strictly aspires in increasing the agricultural production on 25,000 hectares of the present irrigated land and also by bringing an extra 8,500 ha under irrigation by refining the water distribution system. This project will include cross drainage works, development of the irrigation infrastructure as well as division structures, institutional strengthening, extension services to farmer groups and Water Users Associations and canals & flood protection.
Comprising of various activities, the project will primarily emphasize on improving capacities of Water User Associations. This would mainly include classifying, planning and carrying out a range of sub-projects specially designed for improving irrigation infrastructure; i.e cross-drainage works, flood protection facilities & canals and diversion structures. Through the provision of agricultural extension services, diversification would be encouraged for stimulating the adoption of improved and high-yielding types of crops. For guaranteeing the viability of this project and refining the sector's governance; an added component will fortify national-level institutions who are in-charge of water-resources and agriculture. Last date of submission for the bids is 31st Dec' 2012.