According to the Bank’s website, the objective of this project is to improve access to resilient irrigation services in selected areas in Ethiopia.

The project will strengthen the performance, reliability, and climate resilience of irrigation systems by rehabilitating and modernizing key large- and medium-scale schemes, upgrading irrigation infrastructure down to on-farm systems, and expanding small-scale irrigation in vulnerable and food-insecure areas. It will introduce climate-smart and energy-efficient technologies to enhance water-use efficiency and sustainability, and pilot innovative approaches such as irrigation service fee systems, private service provision, water allocation and monitoring mechanisms, and salinity management practices. The project will further support agricultural production and value chain development by improving farmers' access to inputs, mechanization, and markets, and by strengthening agri-business linkages to increase productivity and incomes. It will promote inclusive and participatory management models, empower water user associations and female farmers, and foster private sector engagement in irrigation services, financing, and agricultural commercialization. In addition, the project will establish digital tools for national irrigation information and asset management, enhance dam safety and environmental and social risk management, and build institutional and technical capacity at federal and regional levels to sustain climate-resilient irrigation development.

The Environmental Risk rating is rated as High. This rating is based on the project’s focus on rehabilitation and modernization of existing large- and medium-scale irrigation schemes, development of small-scale irrigation (SSI), dam safety and irrigation storage improvement, and the potential environmental impacts associated with these activities in the Ethiopian context. Key potential environmental risks include those related to water resource management, ecosystem impacts, pollution, and dam safety. The rehabilitation and modernization of irrigation schemes (Component 1 & 2) could lead to altered hydrological regimes, increase water stress, affecting downstream water availability and potentially impacting aquatic ecosystems. Increased water extraction for irrigation purposes may exacerbate water scarcity issues, particularly in already water-stressed regions. Further construction of new SSIs carries Labor and OHS related risks, risks of habitat loss, soil erosion, and sedimentation of water bodies if not properly managed. Furthermore, the use of agrochemicals (fertilizers, pesticides) associated with intensified irrigated agriculture could result in water and soil pollution, affecting both human and ecological health. In addition, the Project might contribute to impacts associated with salinity, dam safety and pose risks to local ecosystems and water resources if activities involving large dam involved rehabilitation, and small dams’ construction if not carefully planned and implemented.

The Project Social risk rating is Substantial. The social risk is driven by: (i) potential land acquisition and restrictions on land use for canal rehabilitation, storages, and ancillary works that could lead to temporary or permanent economic displacement (loss of crops/assets, access disruptions) and grievances if procedures are inconsistently applied across regions (ESS5); (ii) risks of exclusion and elite capture, with women, youth, persons with disabilities, IDPs, and Sub-Saharan African Historically Underserved Traditional Local Communities at heightened risk of being left out of benefits or decision-making, including possible inequities in access to water permits or irrigation service fees (iii) (iii) increased abstraction can reduce water availability for downstream users, pastoralists, and ecosystems, potentially leading to disputes. iv)labor and working conditions risks for direct and contracted workers, including OHS, fair terms, and access to a worker GRM, with uneven contractor compliance in dispersed/rural settings (v) SEA/SH risks linked to labor presence and remote sites, requiring survivor-centered GM pathways and contractor Codes of Conduct; (vi) community health and safety risks from construction interfaces and traffic near settlements, as well as social tension around works scheduling that may interrupt irrigation during critical periods and (vii) security and access constraints in FCV-affected areas that can impede consultations, supervision, timely incident reporting, and service continuity, thereby elevating residual risk.

Total Project Cost: US$ 309.50 million
IDA Credit: US$ 75.00 million
IDA Grant: US$ 125.00 million

CONTACT POINT - World Bank

Task Team Leader: Si Gou
Title: Senior Water Resources Management Specialist
Email: sgou@worldbank.org

TTL Contact: Ximing Zhang
Job Title: Senior Water Specialist
Email: xzhang4@worldbank.org

TTL Contact: Hayalsew Yilma
Job Title: Senior Irrigation Specialist
Email: hyilma@worldbank.org

ACCESS TO INFORMATION

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ACCOUNTABILITY MECHANISM OF THE WORLD BANK

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. Information on how to file a complaint and a complaint request form are available at: https://www.inspectionpanel.org/how-to-file-complaint