Problem overview:

     Awareness and visions: Intensive agricultural activities impose negative environmental impacts such as loss of topsoil nutrition, which in return, reduces productivity of farmland. Hence, a balance between agricultural production and environmental preservation needs to be discovered.

     Meeting information requirements: Since 1975, there has been continuous research and development by the Bagmati Watershed Project (BWP) with the help from local farmers to improve agricultural practices to be more sustainable. Consequently, there has been satisfactory increase in agricultural production while maintaining environmental condition still maintained.

Background in summary:

     The Bagmati Watershed Project (BWP): initiated since 1975 has incorporated terrace improvement as one of its activities. It consists of leveling sloping farmland by making risers and bunds, thus protecting fertile topsoil during the rainy season. The BWP has assisted in improving about 150 ha of sloping terrace.

     Geographic and socio-economic factors of project area: A case study of this aspect of the BWP was undertaken in Nallu and Bhardeo areas of Lalitpur district in Kathmandu Valley in 1997. The total population of these areas was 3595 belonging to 630 households. The average farm size in Bhardeo is 0.49 ha and in Nallu 0.71 ha. The main crop in both areas is maize occupying 90 percent of the area and constituting 89 percent of the foodstuff consumed there.

     Benefits from Terrace Improvement:

• 28.57 and 31.0 percent of the total cultivated land was improved in Bhardeo and Nallu, respectively.
  
  
• Terrace improvement by reducing soil and nutrient losses contributed to an increase in productivity of maize by 34 and 65 percent in Bardeo and Nallu respectively.
  
  
• With the increase in productivity, the period of food sufficiency also registered an increase.
  
  
• Terrace improvement also led to an additional vegetable production, fodder tree plantation on terrace bunds and even made possible some paddy cultivation.
  
  

     Financial Analysis of Terrace Improvement: The project financial analysis indicates that the programme is profitable because the financial indicators, Benefit/Cost Ratio, Internal Rate of Return and Net Present Value are high, while Pay Back Period is low. Terrace improvement is thus an essential element of watershed management in the hills.

Peer Review Committee Good practice rating: (1 for the best, 5 for the lowest score)
Sustainability		Efficiency
2	Improvement in either the environment of economic condition with no harm to the other.	2	Cost efficient.
2	Sustainable over time (not one-off)	Process
Adaptability		2	Participation of the community
3	Location adaptability (can the project be done in other places?)	2	Participation of resource owners/users
3	Socio-cultural adaptability.	2	Partnerships between various actors (Governments, NGO, Academia, Private)
2	Level of development adaptability.	2	Degree of coordination and cooperation between government departments.
2	Style of government adaptability.	2	Ability to attract political interest/support
2	Degree of decentralization adaptability.	2	Procedures for feedback and review.
Comments on this example:      Currently, the Bagmati Watershed Management Programme has been extended under a new project name called Bagmati Integrated Watershed Management Programme (BIWMP) and is now in phase II, which has started since 25 April 1998, and will continue for another 5 years. See more details at Bagmati Integrated Watershed Management Programme Sustainability of the project:      Awareness and visions: Research and development by the Bagmati Watershed Project for a more sustainable terrace farming technique has significantly improved Nepals hill-side agricultural practices, productivity and environmental conditions. Demonstrating that it is practically feasible for economic development and environmental improvement to be simultaneously enhanced. Adaptability of the project to other situations:      Location adaptability: This project would be successfully adaptable to countries only with similar geographical, climatic, cultural and farming characteristics to Nepals. Process of decision making and implementation:      Meeting information requirements: The Bagmati Watershed Management Programme demonstrates the importance of meeting information requirements, by keeping record of geographical, socio-economical, financial etc. figures before and after implementation of the programme. Without sufficient and reliable information, making integrated environmental and economical decisions will not be possible. Cost efficiency:      According to the project financial analysis report, we can conclude that the project is rather cost-efficient.