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Completion Report Uzbekistan: Amu Zang Irrigation Rehabilitation Project

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Completion Report Uzbekistan: Amu Zang Irrigation Rehabilitation Project Completion Report Project Number: 30500-013 Loan Number: 2069-UZB June 2015 Uzbekistan: Amu Zang Irrigation Rehabilitation Project This document is being disclosed to the public in accordance with ADB’s Public Communications Policy 2011. CURRENCY EQUIVALENTS Currency Unit – SUM At Appraisal At Project Completion (15 November 2003) (31 December 2013) SUM1.00 = $0.00103 $0.000454 $1.00 = SUM976 SUM2,202.15 ABBREVIATIONS ADB – Asian Development Bank ASBIO – Amu–Surkhan Basin Irrigation Organization ASC – agriculture service center EIRR – economic internal rate of return GAP – Gender Action Plan ICB – international competitive bidding M&E – monitoring and evaluation MAWR – Ministry of Agriculture and Water Resources O&M – operation and maintenance PFI – participating financial institution PMO – project management office PSC – Project Steering Committee SCADA – supervisory control and data acquisition TA – technical assistance WSRSU – Water Sector Reforms Support Unit WUA – water users association WCA – water consumers association WEIGHTS AND MEASURES m – meter m3 – cubic meter mcm – million cubic meter t – ton s – second ha – hectare NOTE In this report, "$" refers to US dollars Vice-President W. Zhang, Operations 1 Director General S. O’Sullivan, Central and West Asia Department (CWRD) Director A. Siddiq, Environment, Natural Resources and Agriculture Division, CWRD Team leader T. Nasirov, Portfolio Management Officer, Uzbekistan Resident Mission, CWRD Team members F. Djumabaeva, Associate Project Analyst, URM, CWRD R. Hu, Portfolio Management Specialist, URM, CWRD M. Khudayberdiyeva, Senior Social Development Officer (Gender), URM, CWRD D. Utami, Principal Safeguards Specialist, South Asia Department In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. CONTENTS Page BASIC DATA i I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 1 A. Relevance of Design and Formulation 1 B. Project Outputs 2 C. Project Costs 7 D. Disbursements 8 E. Project Schedule 8 F. Implementation Arrangements 9 G. Conditions and Covenants 9 H. Related Technical Assistance 9 I. Consultant Recruitment and Procurement 10 J. Performance of Consultants, Contractors, and Suppliers 10 K. Performance of the Borrower and the Executing Agency 11 L. Performance of the Asian Development Bank 11 III. EVALUATION OF PERFORMANCE 11 A. Relevance 11 B. Effectiveness in Achieving Outcome 12 C. Efficiency in Achieving Outcome and Outputs 12 D. Preliminary Assessment of Sustainability 12 E. Impact 13 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 14 A. Overall Assessment 14 B. Lessons 14 C. Recommendations 14 APPENDIXES 1. Design and Monitoring Framework 16 2. Estimated Project Costs and Actual Expenditures 21 3. History of Contract Awards and Disbursements 22 4. Project Implementation Schedule 23 5. Status of Compliance with Loan Covenants 24 6. Information on Contracts 33 7. Economic and Financial Viability of Farms Reevaluation 34 8. Gender Action Plan 40 9. Contribution to the ADB Results Framework 45 BASIC DATA A. Loan Identification 1. Country Republic of Uzbekistan 2. Loan Number 2069-UZB 3. Project Title Amu Zang Irrigation Rehabilitation Project 4. Borrower Republic of Uzbekistan 5. Executing Agency Ministry of Agriculture and Water Resources 6. Amount of Loan $73,200,000 7. Project Completion Report Number UZB-1512 B. Loan Data 1. Appraisal – Date Started 22 October 2003 – Date Completed 2 November 2003 2. Loan Negotiations – Date Started 18 November 2003 – Date Completed 19 November 2003 3. Date of Board Approval 19 December 2003 4. Date of Loan Agreement 2 November 2004 5. Date of Loan Effectiveness – In Loan Agreement 2 January 2004 – Actual 16 November 2004 – Number of Extensions 2 6. Closing Date – In Loan Agreement 30 September 2009 – Actual 3 July 2014 – Number of Extensions 2 7. Terms of Loan – Interest Rate LIBOR + 0.6% – Maturity (number of years) 25 years – Grace Period (number of years) 5 years 8. Terms of Relending (if any) – Interest Rate LIBOR + 0.75% – Maturity (number of years) 10 years – Grace Period (number of years) 3 years – Second-Step Borrower Participating Financial Institutions 9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 27 January 2005 3 July 2014 113 months Effective Date Original Closing Date Time Interval 16 November 2004 30 September 2009 70 months ii b. Amount ($ ‘000) Category or Subloan Last Revised Original Allocation Amount Undisbursed Allocation Disbursed Balance Civil works 7,337.00 9,818.98 9,839.84 Equipment 48,018.00 46,879.87 46,859.01 Credit line 3,200.00 2,519.51 2,519.51 Training, surveys and monitoring 516.00 2.80 2.80 Consulting services 4,180.00 6,611.79 6,611.80 Project management 897.00 1,552.14 1,552.12 Front end fee 366.00 366.00 366.00 Interest and commitment charge 5,919.00 5,448.92 5,448.92 Unallocated 2,767.00 0 0 Total 73,200.00 73,200.00 73,200.00 10. Local Costs (Financed) - Amount ($ million) 2.5 - Percent of Local Costs 7.8 - Percent of Total Cost 2.2 C. Project Data 1. Project Cost ($ ‘000) Cost Appraisal Estimate Actual Foreign Exchange Cost 64,100 80,926 Local Currency Cost 48,500 32,035 Total 112,600 112,961 2. Financing Plan ($ ‘000) Cost Appraisal Estimate Actual Implementation Costs Borrower Financed 37,000 35,978 ADB Financed 66,915 67,751 Other External Financing 2,400 3,783 Subtotal 106,315 107,146 IDC Costs Borrower Financed 0 0 ADB Financed 6,285 5,449 Other External Financing 0 0 Total 112,600 112,961 ADB = Asian Development Bank, IDC = interest during construction. iii 3. Cost Breakdown by Project Component ($ million) Component Appraisal Estimate Actual A. Base costs 1. Rehabilitation of Amu Zang Irrigation System 78.7 87.4 2. Support to Improve Irrigation Management 1.9 0.6 3. Support to Private Farm Development 9.0 9.4 4. Project Management, Monitoring and 5.5 9.7 Evaluation Subtotal (A) 95.1 107.1 B. Contingencies 1. Physical 4.2 0 2. Price 6.9 0 Subtotal (B) 11.1 0 C. Interest and other charges 6.4 5.8 Total 112.6 113.0 4. Project Schedule Item Appraisal Estimate Actual (i) Date of contract with the consultant Oct 2005 Oct 2005 Date of completion July 2010 Dec 2013 (ii) Rehabilitation of Amu Zang Irrigation System Construction of sediment control facility Dec 2005-Aug 2008 Feb 2006–May 2009 Rehabilitation of pump stations Dec 2005-Dec 2009 Mar 2006-Dec 2013 Improved maintenance facilities Jan 2006-Apr 2009 Mar 2006–Dec 2008 Rehabilitation of irrigation and drainage system May 2006-Sept 2009 May 2006–May 2011 (iii) Irrigation Management Strengthening ASBIO capacities Jan 2006–Aug 2009 Mar 2006–Dec 2008 O&M improvement Feb 2006–Jul 2009 Mar 2006–Dec 2008 WUA establishment Jan 2006–May 2010 Mar 2006–Dec 2008 SCADA system and computerized water management model Nov 2006–May 2009 Mar 2006–May 2009 (iv) Private farm development Nov 2006–Nov 2008 Nov 2006–Apr 2011 Rehabilitation of I&D infrastructure Jun 2006–May 2010 Mar 2006–Dec 2008 Farm demonstration and training programs Jun 2006–May 2010 Mar 2006–Dec 2008 Establishment of agricultural service centers ASBIO = Amu–Surkhan Basin Irrigation Organization, I&D = irrigation and drainage, O&M = operation and maintenance, SCADA = supervisory control and data acquisition, WUA = water users association. 5. Project Performance Report Ratings Ratings Development Implementation Implementation Period Objectives Progress From January 2004 to December 2004 Satisfactory Unsatisfactory From January 2005 to December 2010 Satisfactory Satisfactory From January 2011 to December 2013a On track a In 2011, e-Ops replaced the project performance rating. The indicators used in performance rating are (i) Technical, (ii) Procurement, (iii) Disbursement, (iv) Financial Management, and (v) Safeguards. iv D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Mission Date Persons Person-Days of Members Inception mission March 2005 4 10 a, b, c, g Review mission 1 Nov-Dec 2006 3 7 a, d, e Mid-term review November 2007 2 7 a, e Review mission 2 November 2008 2 7 j, k Review mission 3 December 2009 3 7 d, j, k Review mission 4 June 2010 4 1 l, j, k, f Special project administration March 2011 1 4 l, Review mission 5 March 2011 2 1 l, f Review mission 6 October 2011 2 5 h, f Review mission 7 November 2011 3 1 h, f, i Review mission 8 March 2012 3 2 h, f, i Review mission 9 July 2013 4 2 h, m, f, i Project completion review June 2014 5 2 h, m, i, n Note: a = portfolio management officer, b = water resources specialist, c = project economist, d = senior portfolio management specialist, e = assistant project analyst, f = consultant, g = project officer, h = project management officer, i = associate project analyst, j = senior project implementation officer, k = assistant project and country programming analyst, l = principal portfolio management specialist, m = portfolio management specialist, n = senior social development officer (gender). I. PROJECT DESCRIPTION 1. Irrigated agriculture is a key economic activity in Uzbekistan; it accounts for 90% of agricultural production, employs about 27% of the country’s total labor force, and is the main source of livelihood in rural communities.1 More than 48% of the population live in rural areas and depend largely on irrigated agriculture for their livelihoods. 2. Uzbekistan has about 4.3 million hectares (ha) under irrigation. Irrigation relies primarily on surface water, which is distributed by gravity and pumps. The network includes (i) 30,000 kilometers (km) of main and inter-farm canals, with over 33,000 hydraulic structures; (ii) 1,500 pumping facilities, with almost 5,000 pumps that supply water to 2 million ha; (iii) 175,000 km of on-farm canals and conveyance structures; (iv) 40,000 km of on-farm horizontal drains and 4,300 vertical drains; (v) 120,000 km of drainage ditches; and (vi) 15,000 km of large drainage collectors.
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