The proposed project would assist the Government's program to intensify agricultural production, thereby raising rural incomes and foodgrain production, and to improve the quality of rural life. It would also support the decentralized decision-making and self-help features of the Saemaeul (New Community) Movement. The project includes: the irrigation of about 9,200 ha, consisting of about 60 subprojects, the construction of water supply systems in about 7,400 villages, the construction or improvement of about 2,500 km of river banks, consisting of about 8,300 subprojects, the connection of about 2,700 villages to the telephone network and the installation of about 75,000 subscriber's lines at the subdistrict town level, and training and project monitoring and evaluation. The project would benefit about 7.7 million people or about 48% of Korea's rural population. Of these, about 500,000 (the beneficiaries of the irrigation component together with those to be served by the private telephone lines) would benefit to a larger degree than the remaining 7.2 million beneficiaries. The project faces no special risks.