National Irrigation Program (PRONAR)




                                    BOLIVIA

SECTOR:                 Agriculture

PROJECT NAME:           National Irrigation Program (PRONAR) 
                        (964/SF-BO)

TOTAL COST:             $32.9 million

FINANCING:
      IDB               $25.6 million
    OTHER               $ 2.0 million     (German Agency for Technical         
                                           Cooperation)     
    LOCAL               $ 5.3 million

DATE OF APPROVAL:       December 6, 1995

GENERAL DESCRIPTION:    This program is aimed at bringing about an
                        institutional and legal rearrangement of the water
                        resources sector and the irrigation subsector to
                        create the requisite elements for managing and
                        coordinating actions in the subsector, enhance the
                        efficiency of investments, and foster the rational and
                        sustainable use of water resources.  By means of
                        investments, primarily in the improvement and
                        rehabilitation of small irrigation systems, the
                        program seeks to increase agricultural production in
                        economically depressed areas with the aim of
                        alleviating poverty among farmers in the lowest-income
                        strata.  

                        The program consists of four components: 

                        (a) institutional strengthening of the irrigation
                        subsector.  The National Directorate for Irrigation
                        and Soils (DNRS) will be strengthened with a new
                        organizational structure providing for a
                        decentralization of its activities in the country's
                        three major watersheds that require irrigation and for
                        the establishment of a national and departmental
                        irrigation committees.  Funding will be provided for
                        studies to compile inventories of existing irrigation
                        systems and potentially irrigable areas, reviewing of
                        national irrigation policy, and evaluation and
                        transfer of publicly operated systems to
                        beneficiaries.  The component also includes
                        systematizing data on irrigation, as well as study
                        grants for specialist training in irrigation.  

                        (b) support for water resources management.  Support
                        will be extended for the enactment of a new water law. 
                        With a view to the implementation of the principles
                        embodied in the new legislation, the program will
                        provide funding for consultancies as needed for
                        drafting general regulations under the law, as well as
                        regulations for each water-user sector.  The component
                        also calls for hiring consultants for the purpose of
                        organizing a water authority and getting its
                        operations under way.

                        (c) technical assistance and training.  This
                        component, which will be financed by the Federal
                        Republic of Germany and executed by the German Agency
                        for Technical Cooperation, is directed at placing the
                        pertinent institutions, both governmental and private,
                        in a position to channel and provide adequate services
                        in the preparation and execution of rural irrigation
                        projects.  Training programs in the identification,
                        preparation and implementation of irrigation projects
                        will be conducted for the benefit of executing
                        entities.  Technical support will be given to the new
                        structure of the executing agency in its new functions
                        and activities.     

                        (d) investments in small irrigation systems. 
                        Investments in simple projects designed to
                        rehabilitate or improve small irrigation systems (the
                        total cost of which is not to exceed $350,000, or
                        $2,500 per hectare) will be financed through the Fondo
                        de Desarrollo Campesino (FDC).  Commitment of these
                        resources by the FDC will be contingent on reaching
                        the successive milestones agreed upon with the
                        Bolivian government for the institutional
                        reconfiguration of the subsector.  

CONSULTANTS:            Consultants will be hired for the following:
                        (a) project inventory and identification (5 local
                        consultants for 12 person/months each); (b) irrigation
                        development planning at major watershed level, and
                        formulation of national irrigation policy (3 local
                        consultants for 36 person/months and 1 international
                        specialist); (c) operational evaluation of public and
                        semi-public irrigation systems (3 local consultants
                        for a total of 28 person/months, and an international
                        specialist for 2 person/months); (d) organization and
                        implementation of Water Authority (3 local consultants
                        in public administration, systems analysis and water
                        resources, an international consultant, and a legal
                        consultant, for a total of 60 person/months);
                        (e) general regulations under the Water Law (2 local
                        consultants in water resources engineering and law,
                        and 2 international consultants in hydrology and
                        economics); and (f) water-use regulations in the areas
                        of irrigated farming, potable water supply, energy,
                        inland navigation, mining and industry (6 local
                        consultants, 6 legal consultants, and 1 international
                        consultant). 

                        Funds from the Federal Republic of Germany will be
                        used to hire individual consultants on a short-term
                        basis to provide training courses and technical
                        assistance to the executing entities.  
                        
GOODS AND EQUIPMENT:    Computer equipment (computers, software, printers and
                        a geographic information system) and 3 vehicles will
                        be purchased.  In addition, vehicles, computers and
                        office equipment will be purchased using German funds.

CIVIL WORKS:            Small-scale works will be financed involving the
                        rehabilitation or improvement of small irrigation
                        systems whose total cost does not exceed $350,000, or
                        $2,500 per hectare.  Funding for the investments
                        component will be channeled through the
                        nonreimbursable line of credit of the FDC (which will
                        be responsible for the technical and economic
                        appraisal, as well as final approval of financing for
                        projects).  
 
EXECUTING AGENCY:       Secretaría Nacional de Agricultura y Ganadería (SNAG)
                        Dirección Nacional de Riego y Suelos
                        Avda. Camacho 1471
                        La Paz, Bolivia
                        Tel.: (591-2) 391-508
                        Fax:  (591-2) 337-535