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World Bank Document Document of The WorldBank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 5 10 16-PK PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN Public Disclosure Authorized IN THE AMOUNT OF US$145.6 MILLION TO THE ISLAMIC REPUBLIC OF PAKISTAN FOR A PUNJAB BARRAGES IMPROVEMENT PHASE-I1 PROJECT (PBIP-11) Public Disclosure Authorized June 4,20 10 Sustainable Development Department Agriculture and Rural Development Sector Unit South Asia Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Exchange Rate Effective September 2009 Currency Unit = Pakistan Rupee (Rs) Rs. 80 = US$1 Fiscal Year: July 1 - June 30 Weight and Measures Metric System 1 meter (m) = 3.280 feet 1 hectare (ha) - 2.470 acres 1 Kilometer (km) = 0.620 miles lcubic meter (m) = 35.3 10 cubic feet 1 million acre feet (h4AF) = 1.234 billion cubic meters 1 cubic foothecond (cfs) = 0.0283 cubic meterdsec (m3/sec) ABBREVIATIONS AND ACRONYMS Water Sector Capacity Building and Advisory Abiana Irrigation water charges Mogha Ungated Outlet from distributary or Mmor Canal Or Tertiary irrigation command areas Rabi Winter crop season (November-March) Dehs Kharif Summer crop season (April-October) Warabandi Rotational system for water distribution Vice President: Isabel Guerrero Country Director: Yusupha Crookes Sector DirectorManager: John Henry SteidSimeon K. Ehui Task Team Leader: Masood Ahmad .. 11 FOR OFFICIAL USE ONLY PAKISTAN PUNJAB BARRAGES IMPROVEMENT PHASE-I1 PROJECT (PBIP-II) CONTENTS Page STRATEGIC CONTEXT AND RATIONALE ......................................................................... 1 A . Country and sector issues.................................................................................................... 1 B . Sector background and issues ............................................................................................. 2 C . Rationale for Bank involvement ......................................................................................... 6 D . Higher level objectives to which the project contributes .................................................... 6 I1. PROJECT DESCRIPTION.................................................................................................... 7 A . Lending instrument ............................................................................................................. 7 B . Project development objective and key indicators.............................................................. 7 C . Project components ............................................................................................................. 7 D . Lessons learned and reflected in the project design .......................................................... 11 E. Alternatives considered and reasons for rejection ............................................................ 11 111. IMPLEMENTATION......................................................................................................... 12 A . Partnership arrangements (if applicable) .......................................................................... 12 B . Institutional and implementation arrangements (details in Annex 6) ............................... 12 C . Monitoring and evaluation of outcomes/results................................................................ 13 D . Sustainability........................................................................................................................ 14 E . Critical risks and possible controversial aspects ............................................................... 14 F . Loadcredit conditions.. and covenants ............................................................................... 16 IV . APPRAISAL SUMMARY ................................................................................................... 18 A . Economic and financial analyses ...................................................................................... 18 B . Technical analysis ............................................................................................................. 18 C . Fiduciary ........................................................................................................................... 19 D . Social (See Annex 10 for details)..................................................................................... 20 E . Environment ...................................................................................................................... 22 F . Safeguard policies ............................................................................................................. 23 G . Policy Exceptions and Readiness...................................................................................... 24 ... 111 This document has a restricted distribution and may be used by recipients only in the performance of their official duties . Its contents may not be otherwise disclosed without World Bank authorization. Annex 1: Country and Sector or Program Background ......................................................... 25 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ................. 35 Annex 3: Results Framework and Monitoring ........................................................................ 37 Annex 4: Detailed Project Description ...................................................................................... 41 Annex 5: Project Costs ............................................................................................................... 57 Annex 6: Implementation Arrangements ................................................................................. 60 Annex 7: Financial Management and Disbursement Arrangements ..................................... 63 Annex 8: Procurement Arrangements ...................................................................................... 67 Annex 9: Economic and Financial Analysis ............................................................................. 75 Annex 10: Safeguard Policy Issues ............................................................................................ 82 Annex 11: Project Preparation and Supervision ................................................................... 123 Annex 12: Documents in the Project File ............................................................................... 124 Annex 13: Statement of Loans and Credits ............................................................................ 126 Annex 14: Country at a Glance ............................................................................................... 128 MAPS: IBRD 37316 IBRD 37352 iv PAKISTAN PUNJAB BARRAGES IMPROVEMENT PHASE-I1 PROJECT (PBIP-IT) PROJECT APPRAISAL DOCUMENT South Asia Regional, SASDA Date: June 4,20 10 Team Leader: Masood Ahmad Country Director: Yusupha Crookes Sectors: Irrigation and Drainage (80%); Sector Managermirector: Simeon K. Ehui Flood Protection (20%) John Henry Stein Themes: Rural Services and Infrastructure (60%); Project ID: PO96745 Water Resources Management (25%P); Lending instrument: Specific Investment Loan Managing for Development Results( 15%) Environmental screening category: Full; Category A ~~ Project Financing Data: [XI Loan [I Credit [ 1 Grant [ 1 Guarantee [ ] Other: For Loans/Credits/Others: Total Bank financing (US$m.): 145.6 Million Source Local Foreign Total Borrower 9.4 0.0 9.4 IBRD 79.5 66.1 145.6 Total 88.9 66.1 155.0 FY FY11 FY 12 FY13 FY14 FY15 FY16 Annual 5.0 15.0 25.0 40.0 45.0 15.6 Cumulative 5.0 20.0 45.0 85.0 130.0 145.6 Expected effectiveness date: September 30,2010 Expected closing date: June 30,2016 Does the project depart from the Country Assistance Strategy (CAS) in content or other significant respects? Ref. PAD LA and I. C Does the project require any exceptions from Bank policies? Ref. PAD G Have these been approved by Bank management? Is approval for any policy exception sought from the Board? Does the project include any critical risks rated “substantial” or “high”? Ref. PAD E. Project’s overall risk rating is “Substantial”. The rating is based on mere size of the Project, on an operational river system, and possible interruption of water supplies due to construction activities or due to unforeseen circumstances. Though the V I project is planned very well, including implementation plans, construction plans and operational plans to avoid any interruption of water supplies to the irrigated areas. Also contingency plans would be in place to address any interruption in water supplies due to unforeseen circumstances. Also procurement risk rated for procurement is rated “substantial” due to size and country environment and plans are developed to minimize these risks. Does the project meet the Regional criteria for [YIYes []No readiness for implementation? I Component B Improvement and modernization of the irrigation and water management system (US$15 Million). This component consists of improvements in irrigation and water management systems including capacity building for better water allocation and accounting, modernization of equipment and services used in water management. It will also support preparation of future irrigation and water management improvement projects in the province. Component C: Monitoring and Evaluation of the Project Impact and Social and Environmental Management Plans
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