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Benefits of Project
The Project was efficacious in achieving its immediate development objectives and
purpose. The quantifiable benefits of the Project include the incremental increase in crop
production after 1998, when the Project began. An underlying key assumption at
appraisal was that measurable incremental crop benefits would begin to accrue in 1999.
However, according to PCR estimates, incremental crop production benefits were taken
when benefits actually began to accrue in each part of the four domains of the Project
area. Full development is expected from 2008 to 2014 (compared with the appraisal
estimate of 2009 because of the circumstances of different project areas . The economic
internal rate of return (EIRR) was reevaluated using the same approach as at appraisal.
The reestimated EIRR was based on investments made from 1995 to 2005 and
incremental benefits gained from 1999 onward. The EIRR reestimated at project
completion as 12.0% compares well with the appraisal estimate of 15.4% and the
December 1996 estimate of 11.6%. The reestimated EIRR shows that the investment
choice was sound even though the EIRR was lower than predicted. The EIRR is still
slightly above the opportunity cost of capital and shows that the Project was efficient in
achieving its purpose.
• Increase in Water Supplies and Reduction in Water Losses
• Reduction in Labor
• Reduction in Conflicts
• Increased Crop Production
• Increased Command Area
• Increased Production
• Increase and Changes in Cropping Intensity
• Increase in Crop Yields
• Additional Farm Labor generated
• Non-farm Income
• Improvement in Farming Support Services