30 September, 2012

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30 September, 2012 AGA KHAN FOUNDATION 2ND QUARTERLY PROGRESS REPORT 01 July – 30 September, 2012 Program Title: Satpara Development Project Sponsoring USAID Office: USAID Pakistan Cooperative Agreement Number: AID-391-A-12-0002 Recipient: AKF/AKRSP Period of Agreement: March 12, 2012 to March 11, 2017 October 30, 2012 Contents ACRONYMS .............................................................................................................................. EXECUTIVE SUMMARY............................................................................................................ 1 INTRODUCTION ...................................................................................................................... 2 1. ACHIEVEMENTS DURING THE REPORTING PERIOD (JULY – SEPTEMBER 2012)................. 5 1.1 Component-I: Efficient Use of Irrigation Water ............................................................................................... 5 1.2 Component-II: Enhancing Productivity of High-Value Horticulture and Dairy Products................... 6 1.3 Component-III: Enhancing Processing and Marketing Capacity of the Area.......................................... 9 1.4 Component-IV: Create an Enabling Environment for the Agricultural Sector to Grow................. 9 2. ADDRESSING GENDER EQUITY .......................................................................................... 11 3. CHALLENGES/PROBLEMS ENCOUNTERED DURING THE REPORTING PERIOD ..................... 11 4. INSTITUTIONAL DEVELOPMENT /MANAGEMENT RELATED ACTIVITIES.............................. 12 5. LESSONS LEARNED ............................................................................................................ 15 6. THE FUTURE: PLANS FOR THE NEXT THREE MONTHS ....................................................... 15 Acronyms AKF Aga Khan Foundation AKRSP Aga Khan Rural Support Program AOR Agreement Officer’s Representative COP Chief of Party FEG Farmers’ Enterprise Group GAP Good Agricultural Practices GB Gilgit-Baltistan IFPRI International Food Policy Research Institute LBC Left Bank Canal LSO Local Support Organization M&E Monitoring and Evaluation MIS Management Information System MOU Memorandum of Understanding PIRS Performance Indicator Reference Sheet PMP Project Monitoring Plan PRA Participatory Rural Appraisal RBC Left Bank Canal SDP Satpara Development Project TNA Training Needs Assessment TOP Terms of Partnership USAID United States Agency for International Development WPG Women’s Producer Group WUAs Water User Associations Executive Summary This report is the second quarterly update on the progress of Satpara Development Project (SDP). The report discusses in detail component wise updates for the project, challenges encountered and institutional and management issues. Additionally, the report also reflects on the major achievements and plans for the next reporting period. The major achievements for the quarter has Been the finalization of questionnaire for socio economic Baseline survey, formation of Water User Association’s, Farmer Enterprise Groups (FEG’s) and Women Processing Groups (WPG’s) and finalisation of Request For Proposal (RFP) and detailed Terms of Reference developing a master plan for the command area of Satpara had also Been drafted and will Be rolled out hopefully by middle of November. Purchase order for goods (vehicles, office equipment and furniture etc.) has Been placed and delivery will Be spread over the coming quarter (half of the requirements have received). Also a request for suB award to AKRSP was suBmitted for approval along with a justification memo for noncompetitive award and awaits the approval of the AO. In addition to this a revised Project Monitoring Plan (PMP) has also Been suBmitted to the AOR for review and approval. On the staffing front, 28 of the advertised 42 posts have Been filled; rest of the staff will be on Board hopefully By the end of NovemBer. The remaining positions are in the process of Being filled. 1 INTRODUCTION The Aga Khan Foundation (AKF), the Grantee, is a non-denominational, international development agency established in 1967 By His Highness the Aga Khan. Its mission is to develop and promote creative solutions to proBlems that impede social development, primarily in Asia and East Africa. The Aga Khan Rural Support Programme (AKRSP) is a private, non-denominational development support agency established By the Aga Khan Foundation (AKF) in 1982. AKF and AKRSP are part of Aga Khan Development Network (AKDN) which comprises of a group of development agencies with mandates ranging from health and education to architecture, culture, microfinance, disaster reduction, rural development, and the promotion of private-sector enterprise and the revitalization of historic cities. It works to contriBute to promoting inclusive human development and reduce poverty as well as gender inequalities in Gilgit-Baltistan and the Chitral district (GBC) through a comprehensive strategy USAID has provided $26 million funding to the Water and Power Development Authority (WAPDA) for construction of the Satpara Dam (storage capacity of 93,310 acre feet) to augment water supply for irrigation and drinking round the year. It will ultimately generate 17 MW power and the annual energy output is estimated to Be 106 GWh. The major components of the project are an earth fill dam, four Power houses and two irrigation canals. It will provide 30 cusecs of water for drinking purpose, which is now available only for half of the population. On the average water availability for irrigation would increase By about 50,000 AF. The project has no adverse environmental impact, with positive impact such as reduction in respiratory and waterBorne diseases, which are common in the area. USAID also contriButed $7 million to help construct two main water canals, i.e. Left Bank Canal (LBC) and Right Bank Canal (RBC) with a capacity of irrigating approximately 15,500 acres of land. RBC will irrigate approximately 5,000 acres of land whereas LBC will irrigate 10,500 acres of land. Now the construction of The aim of the current $20 million Grant for Satpara Development Project (SDP) is to Boost productivity and Bring in value addition to agriculture in the command area of Satpara Dam. Specifically, the project aims to establish a private/community managed on-farm irrigation system that ensures efficient use of water, introduces modern practices to Boost farm productivity, encourages private sector to enhance processing and marketing of value added agricultural products, and creates an overall enabling environment to support the functioning of water infrastructure and agriculture enterprises. These efforts will ultimately lead to increases in income and employment of the people living in the command area. Consonant with the project goal, relevant oBjectives have Been framed for each of the four proposed project components, contriButing to USAID Pakistan‘s overall Agriculture Sector Strategy goal of 2 increasing agricultural GDP growth By two-thirds (assuming a Baseline annual growth rate of 3 per cent), increasing employment and reducing rural poverty By 20 per cent over the next 5 years. Satpara Development Project (SDP) has four components including: (1) Efficient Use of On-Farm Water; (2) Enhancing Productivity of High - Value Horticulture and Dairy Products; (3) Enhancing Processing and Marketing Capacity of the Area; and (4) Create an Enabling Environment for the Agriculture Sector to Grow. SDP management intends to hire the services of an experienced firm for a land/topographic survey of the Command Area of the two newly constructed irrigation canals and accordingly design and develop a layout/master plan of the area for an efficient use of the irrigation water under Component-1 of SDP. The oBjective of the activities covered under component-1 of SDP is to ensure efficient use of the Satpara Dam irrigation water at the farm level. The multipurpose Satpara dam has Been designed and constructed for storage of water for irrigation and hydropower generation. Two main canals namely Right Bank Canal (RBC) and Left Bank Canal (LBC) have Been constructed for irrigation purposes. RBC has a carrying capacity of 52 cusecs water and LBC of 135 cusecs. The data provided By WAPDA shows that annual mean water flow during the period from 1970-99 in Satpara Nulla has Been more than 99,000 acre- feet. The current storage capacity of dam is more than 93,000 acre-ft. The water requirement of LBC and RBC for 6 months irrigation period (April to SeptemBer) is 62,500 acres-ft. The water required for generation of 13 MW installed capacity is 221 cusecs. Out of 93,000 acre-feet storage capacities, more than 62,500 acres-feet will Be required for irrigation. The remaining 30,500 acres-feet of water is hardly enough to generate one-third of the installed capacity. In order to use the dam water efficiently for irrigation purpose the existing on-farm irrigation infrastructure needs to improve and there is a need to Build new irrigation infrastructure for further land development in the command area. In the past, water from Satpara Lake was managed By the local communities in command area. The delivery of water to the farms was through highly in-efficient natural water courses. The new infrastructure in the form of RBC and LBC is designed for improved delivery and minimize losses and for more efficient use for irrigation purposes. To take it further to the farm level it is imperative to ensure efficient delivery and use of water at the farm level. To achieve
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