Western Basins Water Resources Management and Irrigated Agriculture Development Project (Cofinanced by the Government of Canada)

Technical Assistance Consultant’s Report

Project Number: 36252 July 2005

Islamic Republic of Afghanistan: Western Basins Water Resources Management and Irrigated Agriculture Development Project (Cofinanced by the Government of Canada)

FINAL REPORT

Prepared by

SMEC International in Association with Agrisystems Limited

For the Ministry of Irrigation, Water Resources and Environment

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. All the views expressed herein may not be incorporated into the proposed project’s design.

Western Basins Project

Final TA Report

Volume 1: Main Report

July 2005 Table of Contents Western Basins Project Final TA Report – July 2005

Table of Contents

EXECUTIVE SUMMARY...... 1

1 INTRODUCTION...... 1

2 TERMS OF REFERENCE FOR THE TECHNICAL ASSISTANCE ...... 3

3 BACKGROUND RATIONALE AND JUSTIFICATION ...... 4

3.1 Policy Framework ...... 4 3.1.1 The Water Sector Institutional Context...... 5 3.1.2 Main Stakeholders in Water Resources at Government Level and their Roles ...... 5 3.1.3 Policy Issues and Institutional Capacity ...... 7 3.1.4 Strategies ...... 7

3.2 The Natural Resource Base of the Western Basin ...... 7 3.2.1 Irrigated Land ...... 8 3.2.2 Potential New Land or Increase in Irrigated Areas...... 12 3.2.3 Surface Water in the Hari Rud ...... 12 3.2.4 Potential Impacts of Salma Dam ...... 13 3.2.5 Groundwater in the Hari Rud...... 13

3.3 The Agricultural Base of the Western Basin ...... 14 3.3.1 General Description of the Sector ...... 14 3.3.2 Poppies and Alternative Livelihoods ...... 14 3.3.3 Expected Changes in Income and Population ...... 15 3.3.4 Impact on Agriculture from Increases in Incomes and Population ...... 15

3.4 Social Change ...... 17

3.5 Traditional Water Management...... 18

3.6 Longer Term Objective of a Western Basin Authority ...... 18 3.6.1 Support for a River Basin Approach...... 19 3.6.2 Key Areas to Develop in Support of a Basin Approach...... 19

3.7 The Western Basin Project Approach...... 19 3.7.1 Integrated Water Resources Management (IWRM) ...... 20 3.7.2 Water Resources and Irrigation Development (WRID) ...... 20 3.7.3 Agricultural Livelihoods Support Services (ALSS) ...... 21 3.7.4 Project Management and Capacity Building ...... 21

4 COMPONENT 1: INTEGRATED WATER RESOURCE MANAGEMENT...... 22

4.1 Background...... 22

4.2 Decision Support Tools...... 22 4.2.1 Climate and Surface Water ...... 23 4.2.2 Groundwater Monitoring and Modelling ...... 23 4.2.2.1 Outline of the Groundwater Monitoring and Modelling Strategy ...... 23 4.2.2.2 Groundwater Irrigation Demonstrations ...... 24 4.2.3 GIS and Database Support ...... 24 4.2.3.1 Outcomes...... 25

i Table of Contents Western Basins Project Final TA Report – July 2005

4.3 Community Based Water Management ...... 25 4.3.1 The River Basin Institutional Arrangements ...... 25 Other Institutional Arrangements...... 26 4.3.2 Outcomes...... 26

4.4 Technical Support for Component 1...... 27 4.4.1 International...... 27 4.4.2 National ...... 27

5 COMPONENT 2: WATER RESOURCES AND IRRIGATION DEVELOPMENT...... 28

5.1 Introduction...... 28

5.2 Core Sub Project Selection Criteria ...... 28

5.3 Sub Projects...... 31 5.3.1 Sub project 1: Rehabilitation of Jui Nau Irrigation System ...... 31 5.3.1.1 Canal Inventory...... 31 5.3.1.2 Key rehabilitation and development issues...... 34 5.3.1.3 Proposed Rehabilitation Works...... 34 5.3.1.4 Capital costs...... 35 5.3.1.5 Maintenance costs...... 35 5.3.1.6 Water availability...... 36 5.3.1.7 Benefit summary...... 37 5.3.2 Sub Project 2: Obe Wash Water Resource Development...... 40 5.3.2.1 Sub project concept and works ...... 40 5.3.2.2 Capital cost...... 42 5.3.2.3 Maintenance costs...... 42 5.3.2.4 Water availability...... 43 5.3.2.5 Summary of benefits ...... 43 5.3.3 Sub Project 3: Rehabilitation of Sare Pul Irrigation Systems ...... 45 5.3.3.1 Inventory ...... 45 5.3.3.2 Sub project description...... 46 5.3.3.3 Capital costs...... 48 5.3.3.4 Maintenance costs...... 48 5.3.3.5 Water availability...... 49 5.3.3.6 Summary of benefits ...... 50 5.3.4 Sub Project 4: Pashdan Wash Water Resource Development ...... 52 5.3.4.1 Sub project concept...... 52 5.3.4.2 Capital costs...... 55 5.3.4.3 Maintenance costs...... 55 5.3.4.4 Water availability...... 56 5.3.4.5 Summary of benefits ...... 57 5.3.5 Sub Project 5: Rehabilitation of Yahia Abad Irrigation System ...... 59 5.3.5.1 Inventory ...... 59 5.3.5.2 Proposed works and capital costs...... 61 5.3.5.3 Maintenance costs...... 62 5.3.5.4 Water availability...... 63 5.3.5.5 Summary of benefits ...... 64 5.3.6 Sub Project Summary ...... 66

5.4 Operation and Maintenance...... 68 5.4.1 Purpose...... 68 5.4.2 Background ...... 68 5.4.3 Rationale for MO&M and Guiding Principles...... 69 5.4.4 MO&M for the WBP sub-projects ...... 71

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5.4.4.1 General Comments and Recommendations ...... 71 5.4.4.2 Current MO&M Practices ...... 72 5.4.4.3 Improved Management and Operations...... 73 5.4.4.4 Improved Maintenance...... 76 5.4.4.5 Facilities ...... 80 5.4.4.6 MO&M Monitoring ...... 82

5.5 Extension of Irrigation System Rehabilitation and Development ...... 83

5.6 Selection Criteria ...... 84

6 COMPONENT 3: AGRICULTURAL AND LIVELIHOODS SUPPORT SERVICES...... 87

6.1 Background...... 87 6.1.1 Regional Food Demand ...... 87 6.1.2 Water Allocations and Water Use in Cropping ...... 88 6.1.3 Inputs and Support Services ...... 88 6.1.4 Export Potential...... 89 6.1.5 Implementation...... 89

6.2 Description of the Services...... 91 6.2.1 Water Management Services ...... 91 6.2.1.1 Activities...... 91 6.2.1.2 Costs...... 91 6.2.1.3 Impact ...... 93 6.2.2 Horticultural Services...... 93 6.2.2.1 Activities...... 93 6.2.2.2 Costs...... 94 6.2.2.3 Impact ...... 95 6.2.3 Livestock and Veterinary Services ...... 96 6.2.3.1 Activities...... 96 6.2.3.2 Costs...... 96 6.2.3.3 Impact ...... 98 6.2.4 Trader Credit for Crop Inputs ...... 99 6.2.5 Micro Finance for Landless & Very Poor Households...... 100 6.2.5.1 Sericulture...... 100 6.2.5.2 Bee-keeping...... 100 6.2.5.3 Poultry...... 101 6.2.5.4 Animal Bank...... 102 6.2.5.5 Summary of Budgets for Micro Finance...... 102

6.3 Expected Benefits from the Services...... 103

6.4 Summary of Costs of Services ...... 103

7 COMPONENT 4: PROJECT MANAGEMENT AND CAPACITY BUILDING ...... 105

7.1 Capacity Building...... 105 7.1.1 Introduction...... 105 7.1.2 Institutional Capacity...... 105 7.1.2.1 Ministerial Level ...... 106 7.1.2.2 Provincial Level...... 107 7.1.2.3 District and Community Level...... 108 7.1.3 Human Resource Development ...... 109 7.1.3.1 National Project Implementation Staff...... 109

iii Table of Contents Western Basins Project Final TA Report – July 2005

7.1.3.2 Construction Contractors...... 109 7.1.3.3 Capacity Building Program...... 109 7.1.4 Capacity Building Program for WBP ...... 111

7.2 Project Management...... 112 7.2.1 Introduction...... 112 7.2.2 Project Structure...... 113 7.2.3 Indicative Project Implementation Schedule ...... 113 7.2.4 Component 1...... 113 7.2.5 Component 2...... 113 7.2.6 Component 3...... 114 7.2.7 Component 4...... 120

7.3 Financing Schedule...... 124

7.4 Monitoring and Evaluation...... 126

8 PROJECT LOG FRAME...... 128

9 POLICY ISSUES THAT AFFECT WBP IMPLEMENTATION ...... 140

9.1 Background...... 140

9.2 Importance of the Local Imperative ...... 140

9.3 The Reality of National and Local Capacity ...... 140

9.4 Consolidation of Water Resource Management ...... 140

9.5 Policy Issues and Options ...... 140

10 PROJECT COST ESTIMATES ...... 143

10.1 Methodology...... 143 10.1.1 Loan Preparation and Implementation Period ...... 143 10.1.2 Base Costs...... 143 10.1.3 Contingencies - Physical ...... 143 10.1.4 Contingencies - Price...... 143 10.1.5 Foreign Exchange, Local Duties and Taxes ...... 144 10.1.6 Interest during Implementation ...... 144 10.1.7 Summary Tables...... 144

10.2 Project Components and Sub Projects ...... 144 10.2.1 Component 1: Integrated Water Resource Management (IWRM)...... 144 10.2.2 Component 2: Water Resources and Irrigation Development (WRID) ...... 145 10.2.2.1 Subcomponent 1: Core Subprojects in Hari Rud basin ...... 145 10.2.2.2 Subcomponent 2: Subproject Investment Allocation in Hari Rud basin ..... 145 10.2.2.3 Subcomponent 3: Subproject Investment Allocation in Murghab basin ..... 146 10.2.2.4 Subcomponent 4: Water Resource Development ...... 146 10.2.3 Component 3: Agriculture and Livelihoods Support Services...... 146 10.2.4 Component 4: Project Management and Capacity Building ...... 147

10.3 Project Cost Estimates...... 149

10.4 Financing Plan ...... 150

iv Table of Contents Western Basins Project Final TA Report – July 2005

10.4.1 Introduction...... 150 10.4.2 Financiers and Disbursement Allocations...... 150 10.4.3 Financing Plan...... 151 10.4.4 Procurement Arrangements...... 152

10.5 Technical Assistance ...... 155

11 FINANCIAL AND ECONOMIC ANALYSIS...... 157

11.1 Introduction...... 157

11.2 Rehabilitation Works and Anticipated Benefits by Subproject ...... 158 11.2.1 Subproject 1: Rehabilitation of Jui Nau Irrigation System...... 159 11.2.2 Subproject 2: Development of Obe Wash Water Resources...... 160 11.2.3 Subproject 3: Development of Sare Pul Irrigation Systems...... 161 11.2.4 Subproject 4: Development of Pashdan Wash Water Resources ...... 162 11.2.5 Subproject 5: Rehabilitation of Yahia Abad Irrigation System ...... 162

11.3 Financial Analysis...... 163 11.3.1 Introduction...... 163 11.3.2 Investment Costs...... 164 11.3.3 Recurrent Costs...... 164 11.3.4 Mirab Water User Associations ...... 164 11.3.5 Participating Household Budgets...... 166

11.4 Economic Analysis ...... 168 11.4.1 Major Assumptions...... 168 11.4.2 Economic Internal Rates of Return and Economic Net Present Values ...... 169 11.4.3 Interpretation of the Results...... 169 11.4.3.1 Subproject 1: Rehabilitation of Jui Nau Irrigation System ...... 170 11.4.3.2 Subproject 2: Development of Obe Wash Water Resources ...... 170 11.4.3.3 Subproject 3: Development of Sare Pul Irrigation Systems...... 171 11.4.3.4 Subproject 4: Development of Pashdan Wash Water Resources ...... 171 11.4.3.5 Subproject 5: Rehabilitation of Yahia Abad Irrigation System ...... 171 11.4.3.6 Subproject 1 to 5: Overall Analysis...... 172 11.4.3.7 Sensitivity Analysis...... 172

12 COMMUNITY CONSULTATION ...... 175

12.1 Background...... 175

12.2 Irrigation Water Users including Mirabs...... 176

12.3 Public Consultations ...... 176

12.4 Community Consultation Process ...... 176

13 IMPACT ON ENVIRONMENT ...... 178

14 RESETTLEMENT FRAMEWORK SUMMARY ...... 179

14.1 Introduction...... 179

14.2 Compensation and Resettlement and Rehabilitation Policies ...... 179

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14.3 Nomadic people’s policies...... 180

14.4 Institutional Framework and Implementation Arrangements ...... 180

14.5 Consultation, Disclosure and Redress of Disputes and Disagreements ...... 181

14.6 Monitoring and Evaluation...... 181

List of Appendices

Appendix A: Core sub project MO&M Costs Appendix B: Training Programmes Appendix C: Project Operations Manual Appendix D: Technical Assistance Support Appendix E: Resettlement Framework and Land Titling Appendix F: Monitoring and Evaluation Programme Appendix G: Community Consultation Appendix H: WBP Implementation Schedule Appendix I: Social Assessment Appendix J: Project Costs Summary Tables Appendix K: Technical Assistance Budgets Appendix L: Economic and Financial Analysis Appendix M: Summary Initial Environmental Examination Appendix N: List of GIS Project Maps

List of Tables

Table 3-1: Summary of irrigated areas (FAO) ...... 8 Table 5-1: Sub project 1 capital costs...... 35 Table 5-2: Sub project 2 capital costs...... 42 Table 5-3: Sub project 3 areas ...... 46 Table 5-4: Sub project 3 capital costs...... 48 Table 5-5: Sub project 4 capital costs...... 55 Table 5-6: Sub project 5 areas ...... 59 Table 5-7: Sub project 5 works inventory ...... 62 Table 5-8: Sub project 5 capital costs...... 62 Table 5-9: Summary of areas ...... 66 Table 5-10: Summary of costs...... 67 Table 5-11: Summary of O&M...... 67 Table 5-12: Irrigation Infrastructure Maintenance Examples: ...... 78 Table 5-13: Guideline for MO&M Equipment for a typical CII...... 81 Table 5-14: Distribution of irrigation rehabilitation works ...... 83 Table 5-17: WBP Irrigation Sub-Project Initial Selection Criteria...... 84 Table 6-1: Planned ALSS Interventions: Areas and Households ...... 90 Table 6-2: Water Management Services: Activities by location...... 91 Table 6-3: Water Management Services: equipment, staff and transport costs, US$ ...... 92 Table 6-4: Water Management Services: Costs by activity, US$ ...... 92 Table 6-5: Water Management Services: Costs by location, US$...... 92 Table 6-6: Water Management Services: Costs by expenditure category, US$...... 93 Table 6-7: Horticultural Services: Activities by location ...... 93 Table 6-8: Horticultural Services: equipment, staff and transport costs, US$ ...... 94 Table 6-9: Horticultural Services: Costs by activity, US$...... 95 Table 6-10: Horticultural Services: Costs by location, US$ ...... 95 Table 6-11: Horticultural Services: Costs by expenditure category, US$ ...... 95 Table 6-12: Livestock and Veterinary Services: Activities by location ...... 96 Table 6-13: Livestock and Veterinary Services: equipment, staff and transport costs, US$ . 97

vi Table of Contents Western Basins Project Final TA Report – July 2005

Table 6-14: Livestock and Veterinary Services: Costs by activity, US$ ...... 97 Table 6-15: Livestock and Veterinary Services: Costs by location, US$ ...... 98 Table 6-16: Livestock and Veterinary Services: Costs by expenditure category, US$...... 98 Table 6-17: Distribution of Budgeted Trader Credit by Sub Project (US$) ...... 99 Table 6-18: Summary of Micro Finance Budget (US$)...... 103 Table 6-19: Summary of ALSS Cost Estimate...... 104 Table 7-1: Summary Provincial (incl. WBP Districts) Institutional Capacity...... 108 Table 7-2: Summary of National Staff Requirements ...... 110 Table 8-1: Project log frame summary...... 128 Table 8-2: Component 1 log frame...... 130 Table 8-3: Component 2 log frame...... 132 Table 8-4: Component 3 log frame...... 134 Table 8-5: Component 4 log frame...... 137 Table 9-1: Policy Issues and Options ...... 141 Table 10-1: Subcomponent 2- Subproject Investment Allocation Hari Rud...... 146 Table 10-2: Summary of Capacity Building Technical Training Courses...... 147 Table 10-3: Project Staff Requirements and Transport Allocations (numbers) ...... 148 Table 10-4: Project Cost Estimates (US$ million)...... 149 Table 10-5: Financing Plan (US$ million) ...... 152 Table 10-6: Proposed Contract Packages ...... 154 Table 10-7: Summary of Technical Assistance Budget (US$’000)...... 155 Table 11-1: Summary of Key Physical and Financial Indicators for the Five Subprojects .. 159 Table 11-2: Subproject Indicative Service Fees and CII Key Financial Indicators ...... 166 Table 11-3: Household Budgets (Poor Wealth Group) by Subproject ...... 167 Table 11-4: Subproject Economic Internal Rates of Return and Economic Net Present Values ...... 169

List of Figures

Figure 3-1: Western Basins ...... 9 Figure 3-2: Western Basins irrigated areas ...... 11 Figure 4-1: River basin institutional arrangements ...... 26 Figure 5-1: Sub project locations...... 30 Figure 5-2: Sub project 1 ...... 33 Figure 5-3: Sub project 1 water availability with and without project ...... 37 Figure 5-4: Field delivery for full irrigation supply: present and future demand and supply... 39 Figure 5-5: Sub project 2 ...... 41 Figure 5-6: Sub project 3 ...... 47 Figure 5-7: Water availability at Sare Pul ...... 49 Figure 5-8: Pashdan Wash...... 53 Figure 5-9: Sub project 4 ...... 54 Figure 5-10: Karokh River flow exceedance...... 56 Figure 5-11: Sub project 5 ...... 60 Figure 5-12: Kawgan River flow exceedance ...... 63 Figure 5-13: Typical structure of Western Basins CII ...... 72 Figure 7-1: Flowchart; WBP Management Structure ...... 115 Figure 7-2: Flowchart; Component 1 ...... 116 Figure 7-3: Flowchart; Component 2 ...... 117 Figure 7-4: Flowchart; Component 3 ...... 118 Figure 7-5: Flowchart; Component 4 ...... 119 Figure 7-6: Summary Implementation Schedule ...... 121 Figure 7-7: Summary Staff Schedule...... 123 Figure 7-8: Financing Schedule...... 125

vii Table of Contents Western Basins Project Final TA Report – July 2005

List of Acronyms

ADB Asian Development Bank APL Annual Probability of Loss CPPP Constant Purchasing Parity Price CRS Catholic Relief Services CII Community Irrigator Institutions DAACAR Danish Committee for Afghan Refugees DAAHF Department of Agriculture, Animal Husbandry and Food DBTA Department of Borders and Tribal Affairs DEW Department of Energy and Water DOE Department of Environment DRRD Department of Rural Rehabilitation and Development EARP Environmental Assessment and Review Procedures EMaP Environmental Management Plan EMoP Environmental Monitoring Plan FAO Food and Agriculture Organisation GIS Geographic Information System GOA Government of Afghanistan IDA International Development Association IEE Initial Environmental Examination IRC International Rescue Committee ISF Irrigation Service Fee ISRA International Sharia Relief Agency IWRM Integrated Water Resource Management MAAHF Ministry of Agriculture and Animal Health MBTA Ministry of Border and Tribal Affairs MEW Ministry of Energy and Water MISFA Microfinance Investment Support Facility for Afghanistan MOF Ministry of Finance MMI Ministry of Mines and Industry MRRD Ministry of Rehabilitation and Rural Development MUDH Ministry of Urban Development and Housing MWA Ministry of Women Affairs NDF National Development Forum NEPA National Environment Protection Agency NGO Non Government Organisation NRM Natural Resource Management NVRA National Risk and Vulnerability Assessment O & M Operations and Maintenance PAP Project Affected Person PIT Project Implementation Team PIU Project Implementation Unit POM Project Operations Manual PMU Project Management Unit PPTA Project Preparation Technical Assistance SIEE Summary Initial Environmental Examination TA Technical Assistance TOR Terms of Reference UNEP United Nations Environment Programme USBR United States Bureau of Reclamation WBA Western Basins Authority WBP Western Basins Project WHO World Health Organisation WUA Water Users Association

viii Table of Contents Western Basins Project Final TA Report – July 2005

List of Abbreviations cumec cubic metre per second d day ha hectare km kilometre m metre masl metres above sea level m2 square metre m3 cubic metre s second y year

ix Table of Contents Western Basins Project Final TA Report – July 2005

List of Attachments

1 Hydrologists Report; Dr Gordon Stanger 2 Gender Specialist Report; Dr LiZ Mann 3 Indigenous Peoples Report ; Anna Ohannessian-Charpin 4 Watershed Management and Development Report; Keith Virgo 5 Hydrogeologist Report; Dr Jasminko Karanjac 6 GIS Report and Project Maps; S Thillainadarajah 7 Mirab and Water User Association Report; Dr Jonathan Lee 8 Agricultural and Agricultural Economist Reports; Rob Walton i) Agricultural Production and Farm Economics ii) An Assessment of the Comparative Advantage of Irrigated Agriculture in Herat Province iii) Agricultural and Livelihoods Support Services iv) Estimate of Benefits from the Rehabilitation of Jui Nau Canal v) Estimate of Benefits from the Construction of Feeder Canals in Obe District vi) Estimate of Benefits from the Rehabilitation of Yahia Abad Canal vii) Estimate of Benefits from the Rehabilitation of Obe and Pashdan Washes viii) Estimate of Benefits from the Rehabilitation of Canals at Sare Pul, Obe District 9 On Farm Irrigation Engineer Report; Dr Bob Rout 10 Economist Report; Michael Blandy 11 Capacity Building Specialist Report; Mark Crocker 12 Land titling and Resettlement Specialist Reports Cecil Hood 13 Initial Poverty and Social Assessment – Hari Rud and Murghab Basins; Roger McIntyre i) Social Impact Report – Sub project 1 Jui Nau Irrigation System Rehabilitation ii) Social Impact Report – Sub project 2 Obe Wash Water Resource Development iii) Social Impact Report – Sub project 3 Sare Pul Irrigation Systems Rehabilitation iv) Social Impact Report – Sub project 4 Pashdan Wash Water Resource Development v) Social Impact Report – Sub project 5 Yahia Abad Irrigation System Rehabilitation 14 Environmental Assessment Report; Victor Gillespie i) Environmental Assessment and Review Procedures ii) Salma Dam Report iii) Initial Environmental Examination of Jui Nau Irrigation System iv) Summary of Initial Environmental Examination of Jui Nau Irrigation System

x Western Basins Project Final TA Report – July 2005

EXECUTIVE SUMMARY

Introduction

The Western Basins Project (formerly the Western Basin Water Resource Management and Irrigated Agriculture Development Project) is a ‘sector’ project under the Natural Resources Sector in Afghanistan. The project is based around the Hari Rud and Murghab River valleys in Western Afghanistan and will be referred to as the WBP in this document. National policies for water management and related issues are currently being developed and to a lesser extent tested in Afghanistan. The WBP is part of the Asian Development Bank’s (ADB) and the Government of Afghanistan’s Natural Resources Management (NRM) strategy. The vision for this program is “for an integrated approach to the socioeconomic development of Afghanistan with active participation of communities and a viable private sector, with development based on efficient and sustainable utilization of natural resources, thus achieving prosperity, peace, security, social justice and equality in the country”. The strategy will be implemented through the key Ministries, the Ministry of Energy and Water (MEW), the Ministry of Agriculture and Animal Husbandry and Food (MAAHF) and the Ministry of Rehabilitation and Rural Development (MRRD).

The WBP seeks to address key issues related to water use and management primarily in the Hari Rud catchment/watershed with possible further activities in the Murghab River valley. The two rivers constitute Afghanistan’s Western Basin for planning and future development of water resources. In the longer term, a River Basin Authority will be built around the watershed boundaries. Herat is the main urban and commercial centre in the basin and irrigated agriculture is a major activity close to the river where land is suitable and to a limited extent around karezes. The irrigated area occupies a relatively small part of the overall basin, most of which consists of rangelands and steep slopes with some high peaks to over 4000 meters. It is a generally arid environment with limited ground cover and is heavily utilized by different groups of people including migratory pastoralists.

The staple crops of wheat and rice rely upon irrigation water for successful production so the importance of irrigated agriculture to the national economy is very high. Food security is largely dependant upon irrigation and watering points for livestock. There is significant social and economic change occurring in Afghanistan following a long period of instability. Population in the WBP areas is increasing rapidly, placing extra strains on resources. The national and provincial administrations have limited resources, both human and financial, to address issues, hence the need for external assistance to the sector.

Terms of Reference for the Technical Assistance

The TA will undertake technical studies, institutional analyses, and capacity needs assessment to prepare an investment project for integrated water resources management IWRM) and irrigated agriculture development.

The TA and the ensuing project will have the following interrelated objectives: i) improve water resources management at all levels, from on farm to basin management; ii) rehabilitate, modernize, and develop new irrigation and water resources infrastructure; iii) enhance the enabling environment for improved agricultural productivity; iv) ensure the integrity and productivity of watershed resources; and

1 Western Basins Project Final TA Report – July 2005 v) develop capacity and strengthen institutional frameworks for IWRM and irrigated agriculture.

The TA will prepare a sector investment program within an IWRM framework that includes the following outputs: feasibility studies for subprojects and civil works; policies and institutional frameworks; detailed implementation arrangements; capacity development programs; service delivery mechanisms and strategies; a due diligence report on Salma Dam; and monitoring and evaluation procedures.

Note: Due diligence report on Salma Dam was not undertaken because information was not accessible from the Indian Government Representative or the Indian contractor on site in Herat.

Background Rationale and Justification

The ADB’s Paper (Natural Resources in Recovery, of March 2004) outlines the key issues and subprograms needed to address the strain on natural resources through improved natural resource management programs and projects. Irrigated agriculture, watershed management, agricultural productivity and improved capacity of governments and communities are important in improving management and supporting infrastructure enhancement is necessary to maintain and improve productivity while protecting the resources. The WBP sits across the Subprograms outlined in the report and needs an integrated approach to address the issues in each.

The WBP seeks to follow an integrated approach to water resource management in support of the sector approach, with four components addressing the above and consistent with the national priority sub programs. The policy framework for Integrated Water Resources Management is still being developed and tested. There is a wide gap between the policies under development at national level and the reality of the Provincial administration’s approach to natural resource management. While the policy agenda is largely donor driven, the implementation has to operate through the local administration which where possible needs to gain ownership. Where local capacity and/or national support is limited, this presents problems for implementation and sustainability of interventions because counterparts are not available and capacity building is compromised.

The River Basin Approach towards IWRM is a higher level priority that is currently under development within the MEW. This will require significant resources and capacity building over the next few years if this is to eventuate in a Western Basin Authority (WBA) to manage the water and other natural resources of the Western Basin. The three key ministries are MEW, responsible for surface water and irrigation water delivery; MAAHF, responsible for on farm water use, agricultural support services and for rangeland and forest management; and MRRD, responsible for community development and support. The Ministry of Mines and Industry (MMI) is responsible for groundwater and the role of MMI needs to be clarified in the national policy framework. There is a need to consolidate the role and position of irrigation within these ministries and consolidate the position of groundwater within a water based ministry to ensure management of the whole resource in an integrated manner.

The Western Basin covers approximately 7.76 million hectares from the central highlands to the Turkmenistan border in the north and the Iran border in the west. The majority of the topography is rangelands to steep slopes interspersed with washes and ephemeral streams with the Hari Rud valley opening to a wider expanse in its lower reaches as it flows towards Iran. The other major river, the Murghab is more confined, flowing into Turkmenistan along a more incised path. The Hari Rud river has been divided into two areas for project purposes, the Upper Hari Rud, above Sari Pul where water is available and land is the limiting resource (due to the narrow valley); the Lower Hari Rud between Sari Pul and the Iranian border. In the upper half of the Lower Hari Rud both land and water are available, while in the lower

2 Western Basins Project Final TA Report – July 2005 half water is scarce and topography restricts its use in places. The Hari Rud is the main focus of this report.

There is ongoing social change along the river and within the catchment with increasing population, returnees and stability. This is resulting in an increasing demand for food. In addition, as household incomes rise, there will be a change in the nature of food demanded, with consumers exercising their preferences towards higher value, more palatable foodstuffs. The natural resources to meet these demands are limited. The irrigated areas along the Hari Rud produce the bulk of grains, fruits, vegetables and dairy cow products while the rangeland produces most of the meat and dairy products from sheep and goats. Maintaining and improving productivity in the irrigated areas and supporting improved watershed management is the key to providing the quantity and quality of food required by existing and future populations while ensuring environmental sustainability, and providing a secure economic base for rural communities. The WBP will support these areas with four components outlined below

The Project Components

1 Integrated Water Resources Management (IWRM)

A National Policy – “Afghanistan’s Water Sector Policy” is currently being developed. The establishment of River Basin Authorities is envisaged as the precursor to management of river basins in the near future. These will sit above the provinces for the management of the basin and include a wide representation from within the basin. Although a Western Basin Authority (WBA) does not exist at this time, the Project will aim to support the establishment of the WBA through developing the GIS and related data bases and groundwater and surface water monitoring and modelling. The Project will also prepare a regulatory framework for surface and groundwater use and provide training and most important, capacity building so that skilled people to support the WBA are available within the project and /or DEW/MEW.

Development of a local and national capability with technical support from Kabul and initial outside help will be an ongoing and fundamental requirement to support IWRM. This will require effective stakeholder interaction, strategic planning, resourcing and coordination, which will need to be built from virtually zero. The Project will seek the cooperation of organizations such as the Food and Agriculture Organisation (FAO) and Danish Committee for Afghan Refugees (DACCAR) that have technical support programs supporting some aspects of IWRM. Training for local staff in technical aspects of IWRM such as decision support tools (GIS and Groundwater Modelling) will be undertaken concurrently with investigations and field activities supported initially by Technical Assistance Demonstrations of efficient irrigation from selected test and monitoring wells will help with the development of the regulatory framework for groundwater use and will support high level conjunctive use regulation and basin management issues.

IWRM is fundamental to sustainable use of resources in the Western Basins and the WBP will go some way towards addressing the current shortfalls in human and physical resources needed to make IWRM a reality in the near future.

2 Water Resources and Irrigation Development (WRID)

The Hari Rud has an extensive canal system above and below Herat. The majority of the canals are below Sari Pul and above Zinda Jan (Lower Hari Rud) where both water and land are available. Above Sari Pul, (Upper Hari Rud) the valley is narrow and the land for irrigation is limited. Around Zinda Jan and below (Lower Hari Rud) land is available but the river is largely flowing in the gravel bed and meandering so water availability is the limiting factor. The Lower Hari Rud is increasingly stressed with a low level of surface water in the river and frequently has insufficient water to fill the canals.

3 Western Basins Project Final TA Report – July 2005

There are about 70,000 hectares of irrigable land within the Lower Hari Rud basin, supplied through a series of 28 canal systems of varying sizes. These are community managed irrigation systems with a long tradition of irrigation, and with operation and management practices dating back hundreds of years. Management, operations and maintenance is primarily the responsibility of communities of irrigators and the system managers who are elected and supported by the local communities. This system operates reasonably effectively except for the engineering and building of major structures and improvements in hydraulic design and operation where both technical skills and financial support are required. Most of the systems require or would benefit from inputs of both technical skill and capital to improve efficiency and make best use of water availability as well as spread the benefits further and more equitably along the canals.

Several sub projects were selected and investigated for rehabilitation and other interventions. These are presented in Component Two as examples of processes and procedures to follow towards rehabilitation and further development. Associated efforts in terms of training and support will be provided to the different stakeholder groups to make best use of the rehabilitation efforts and the work undertaken will also provide valuable training for Provincial staffs. Work on the sub projects will be undertaken sequentially and concurrently, depending upon the work required and resources available.

3 Agricultural and Livelihoods Support Services

The purpose of the Agricultural and Livelihoods Support Services (ALSS) component is to design interventions to complement the improved water availability in the geographical areas for which structural engineering rehabilitation is planned. The ALSS will stimulate increases in the volume and marketability of production and provide alternative livelihoods opportunities for non land owners as well. For lack of capital and improved management the benefits of rehabilitation would not be fully realized by beneficiary communities relying on their own resources alone. Rehabilitation works relieve primary constraints that are perceived to affect negatively most people in the target area, such as insufficient irrigation water, poor physical access or land degradation. Agricultural support can be more flexible and targeted, acknowledging that social and economic constraints vary in nature and severity between communities, socio-economic groups, households and individuals.

Agricultural and Livelihoods Support Services will work in cooperation with MAAHF to identify service groups in water management, horticulture and livestock, and will support these groups through technical advice, training, credit and microfiance. Service groups will be defined by community consultations and interventions planned to address issues that are within the scope of the services that can be assisted by the project. ALSS will be offered to communities benefiting from infrastructure rehabilitation under the Project and will be extended to the entire rehabilitation area during the life of the Project.

4 Project Management and Capacity Building

Capacity building is both a service to other areas of the Project and an integral part of the project outcomes. Capacity building needs to be extensive because there are few Ministry staffs at the provincial and district levels. Although there are large numbers of Mirabs, farmers and community members, community capacity to undertake many tasks typical of Project implementation is also very limited due to high rates of illiteracy and lack of access to resources and information. It may prove difficult to find sufficient staff in all areas to work with and strategies to deal with this will need to be agreed early in the Project with the Ministry and local administrations. However, farmers and Mirabs will be a vital link in the training and implementation process. Improving understanding of broader issues such as water use efficiency, scheduling and equity among this group is necessary to gain understanding of and support for the Project. The community facilitation process will be used in villages in the

4 Western Basins Project Final TA Report – July 2005 rehabilitated areas to raise awareness of wider social needs and changing social processes to support livelihoods development. In all capacity building efforts, the relative roles of men and women in irrigated agriculture will be considered and appropriate support integrated into the project design.

Capacity building will include four levels of training, from scholarships overseas to local level short course training supported by materials and resources necessary to achieve worthwhile outcomes. Trained staff can then take an increasing degree of responsibility for implementation as international TA is phased out. Similarly, trained staff can return to the MEW/DEW or move to support the River Basin Authority when this becomes a reality.

This component will also provide Project Management services to all other Project components, providing the managerial and logistic support to ensure implementation is efficient and effective. While different contractors will have different approaches, an overall structure is suggested later in this report.

Project Cost Estimates

The total project cost (June 2005) to be financed over the seven year implementation period, is estimated at US$ 90.5 million, and is inclusive of physical and price contingencies, taxes, duties and finance charges during implementation on the loan portion of ADB’s Asian Development Fund (ADF). Of the total cost, US$ 34.3 million (37 percent) will be incurred in foreign exchange and US$ 56.2 million equivalent (63 percent) in local currency. A summary of the cost estimates is given in the table below.

5 Western Basins Project Final TA Report – July 2005

Project Cost Estimates (US$ million)

Component Foreign Local Total Exchange Currency Cost

A. Base Costs \1 1. Integrated Water Resource Management (IWRM) 3.9 2.4 6.3 2. Water Resources and Irrigation Development (WRID) \2 1. Core Subprojects: Rehabilitation & Development Rehabilitation of Jui Nau Irrigation System 1.3 2.5 3.8 Development of Obe Wash Water Resources 0.3 0.6 0.9 Development of Sare Pul Irrigation System 0.7 1.7 2.4 Development of Pashdan Wash Water Resources 0.9 2.0 2.9 Rehabilitation of Yahia Abad Irrigation System 0.2 0.8 1.0 2. Subproject Investment Allocation Additional Allocation Hari Rud Basin 8.5 17.8 26.3 Additional Allocation Murghab Basin 2.1 4.5 6.6 3. Water Resources Development 2.0 4.0 6.0 Subtotal 16.0 33.9 49.9 4.3. Agriculture and Livelihood Support Services 3.4 3.2 6.6 3.4. Project Management and Capacity Building 6.8 11.4 18.2 Subtotal (A) 30.1 50.9 81.0 B. Contingencies 1. Physical Contingencies \2 2.6 3.2 5.8 2. Price Contingencies \3 0.6 2.1 2.7 Subtotal (B) 3.2 5.3 8.5 Total Project Costs (A + B) 33.3 56.2 89.5

C. Finance Charges during Implementation \4 1.0 0.0 1.0

Total Project Cost to be Financed \5 34.3 56.2 90.5 Percentage 37% 63% 100%

Source: Project Preparation Technical Assistance (PPTA) estimates, Jul 2005. \1 Late 2006 prices (loan negotiations). \2 Physical contingencies include: 20% on civil works, 10% on all other expenditure accounts except zero additional allocations under WRID. \3 Price contingencies include: 2.8, falling to 1.9% on foreign exchange and 5.0 percent on local currency. \4 Finance charges during implementation is estimated at 1.0 percent per annum on the ADF loan. \5 Inclusive of local duties and taxes.

Financing Plan

It is proposed that ADB will provide an ADF loan of US$ 24.5 million equivalent, including US$ 15.8 million equivalent in local currency. The loan will finance 27 percent of the total project costs to be financed and includes the civil works for the core subprojects, vehicles, machinery, equipment and agriculture and livelihood support services. The ADB loan will be from the Asian Development Fund (ADF) Special Fund resources and subject to relevant loan terms. In addition, ADB will, provide an ADF grant of US$ 15.5 million equivalent. The ADF grant will finance the estimated cost of the consultancy services. The Government of Afghanistan (GOA) will contribute US$ 3.4 million equivalent in local currency by providing counterpart staff, office accommodation, and other related services and facilities.

6 Western Basins Project Final TA Report – July 2005 equivalent or 8 percent of project costs. This represents US$ 6.4 million equivalent towards the civil works investment costs, and a further US$ 0.7 million equivalent towards the incremental management, operation and maintenance (MO&M) of the minor civil works on the irrigation canals.

Taxes and duties associated with the investment and recurrent costs, but excluding the civil works contracts, will be funded by the Government. The Government will bear the foreign exchange risk. A summary of the financing plan is given in the table below.

Financing Plan (US$ million)1

Source Foreign Local Total Cost Exchange Currency (US$ m) (%)

Financiers Asian Development Bank ADF Loan \1 8.7 15.8 24.5 27.1% ADF Grant 14.2 1.3 15.5 17.1% Cofinanciers CIDA 4.8 5.2 10.0 11.0% Abu Dhabi Fund 6.5 23.5 30.0 33.2% The Community -- 7.1 7.1 7.8% Government of Afghanistan -- 3.4 3.4 3.8% Total 34.2 56.3 90.5 100% Source: Project Preparation Technical Assistance (PPTA) estimates, Jul 2005. ADF = Asian Development Funds, CIDA = Canadian International Development Agency. \1 Includes finance charges during implementation.

Financial and Economic Analysis

The investment costs of component 1 IWRM have been excluded from the analysis on the grounds that the benefits will accrue to the basin development as a whole and not specifically to the core subprojects. The investment costs of civil works, management operation and maintenance (MO&M) machinery, and agriculture and livelihood support services (ALSS) have been identified by core subproject and the investment costs allocated appropriately. Other investment costs, including the construction of project office premises at Herat and Obe, consultant and project staff vehicles, capacity building (training of ministry and project recruited staff), consultancy services and the recurrent costs of project management have been allocated, to the subprojects, on a per hectare basis assuming a total of 55,205 irrigable hectares (73,650 command hectares) are rehabilitated / developed over the seven year implementation period of the project.

The impact of the core subprojects will be primarily on irrigated agricultural production, and to a lesser extent on livestock production and household incomes from non farm activities for the landless. The resulting incremental financial and economic benefits will result from engineering rehabilitation works to improved water availability through increasing summer water flows and distribution efficiency in tandem with an investment in agriculture and livelihood support services (ALSS). Subproject incremental benefits have been based on crop and household budgets reflecting both the prevailing condition in the respective subproject areas and the anticipated increased benefits to be achieved with the proposed interventions.

The financial analysis of household budgets shows that the incremental net household cash flow and returns per person day of household labour, derived from increased agricultural production and to a lesser extent livestock and non farm livelihood activities for the landless,

1 Further summary tables are contained in Attachment 10 as Annex 1: Project Cost Estimates, Financing Plan and Procurement Arrangements.

7 Western Basins Project Final TA Report – July 2005 are substantial. For subproject 1 Jui Nau, the average household income at maturity is projected to increase from the current level of US$ 254 to US$ 721 representing nearly a three fold increase. Similar levels of increase are projected for the other subprojects.

The indicative financial models of the Community Irrigators Institution (CII) for the five core subprojects include an income and expenditure schedule, a source and application of funds and a year end balance sheet. Results of the financial analysis indicate that in order to achieve a financial breakeven situation to cover both the proposed management salaries and support staff of the CII and to effectively carry out O&M of the irrigation canals, a near doubling of the service charges will be required to be phased in over a four / five year period with a move to more cash payments. For the Jua Nau canal the present average annual service fee is estimated at US$ 12.0 per household and this will need to increase to US$ 22.4 per household. While this increase appears substantial it represents a very small percentage of the projected increase in household income. Proposed service fee increases range from 1 to a maximum of 10 percent of the projected incremental household incomes of the models prepared for the 5 core subproject areas.

While the increase may appear reasonable in relation to the projected incremental household income, it does not confirm a willingness to pay by the community. There is however sufficient field evidence that farmers are fully aware of the marginal value of water, particularly in the latter part of the season and have demonstrated a willingness to pay (generally in-kind) for this resource.

The economic analysis identifies benefits to three levels of investment, namely: (i) the investment in rehabilitation works measured against the agricultural benefits associated with changes in cropping patterns and cropping intensities, (ii) the investment in agriculture and livelihood support services (ALSS) as measured by increases in agricultural productivity per unit area and to the livelihood programme by increases in the household incomes of the landless, and (iii) the investment in project management and capacity building allocated on a per hectare (irrigable) basis to the individual subprojects.

Direct investment costs to the proposed subprojects are inclusive of civil works, MO&M machinery and ALSS. The total investment is estimated at US$ 27.0 million equivalent in economic terms, an average, per irrigable hectare, of US$ 648.9. Project management costs are inclusive of the civil works costs of construction of project offices in Herat and Obe, vehicles to support consultant and project staff activities, relevant equipment investment costs, capacity building (adjusted for component 1 training), and project implementation recurrent costs. The total investment, over the seven year implementation period, is estimated at US$ 41.9 million equivalent and represents an average of US$ 759 per hectare. By implication, this suggests that the economic cost of developing the local capacity of project staff to implement a project of such a scale is marginally greater than the direct investment costs of the civil works, MO&M equipment and ALSS, when measured on a unit area basis.

Analysis of the overall project yields an EIRR of 24 percent. When the project management and capacity building costs are allocated on a per hectare basis, the EIRR is reduced to 14 percent.

Details of sub project economic analysis are given in the table below.

8 Western Basins Project Final TA Report – July 2005

Sub project economic internal rates of return and economic net present values

Core Subprojects EIRR ENPV (Percent) (Afg million) Project Management Project Management Excluded Included Excluded Included

Core Subprojects 1 to 5 Jui Nau Irrigation System: Head (Upper) 27% 18% 125.3 72.6 Middle Tail 35% 18% 99.1 48.4 Tail (Lower) 16% 6% 10.6 ( 26.6) Combined 27% 16% 235.0 94.4

Obe Wash Water Resources 17% 8% 10.0 ( 10.8)

Sare Pul Irrigation Systems 22% 16% 89.7 48.0

Pashdan Wash Water Resources 18% 6% 29.4 ( 48.6)

Yahia Abad Irrigation System 29% 20% 63.7 40.3

Core Subprojects 1 to 5 Combined 24% 14% 427.9 123.3

Source: Project Preparation Technical Assistance (PPTA) estimates, July 2005. EIRR = Economic Internal Rate of Return, ENPV = Economic Net Present Value (at 12 percent discount rate)

Implementation Issues

Selection Criteria

The PPTA team have examined a wide variety of potential subprojects and conclude that for selection, subprojects should satisfy minimum technical, socio-economic, agricultural, environmental and economic criteria. These are defined in the main report and they are presented in a format through which a number of sites could be screened for selection. The criteria defined are intended for use in the selection of irrigation-related sub-projects. However, the WBP may also undertake a wide variety of other water resource and/or agricultural development work. At implementation phase it will be necessary to assess works proposed for implementation on their specific merits. There may also be mitigating circumstances for subprojects that would otherwise fail to meet the selection criteria, for example those requiring urgent repairs, or issues that require cooperation with other institutions.

Technical Assistance Support

Afghanistan has limited capacity to support large scale development projects. Discussions with implementing agents and donors confirm this and point to the serious limitations in finding and fostering suitable staff neither from within Government Ministries at Central, Provincial and District levels nor from the private sector. At the Central level, the Deputy Minister has indicated the difficulty of finding suitable staff for redeployment to support projects. Recruiting staff directly for training has also had limited impact. Allocating a PPTA counterpart from DEW has been difficult. DEW Herat currently has only 50% of its allocated staff; most are not professionals and cannot undertake engineering design work. There are however individuals that are interested in further training and would be of use later in the project.

9 Western Basins Project Final TA Report – July 2005

However, in the short and medium term, it is unlikely that sufficient locally sourced staff could be found to support project implementation to the necessary standard unless employed and trained by the project. There are also logistic and practical difficulties in operating in Afghanistan. The severe winter means field work and construction is restricted to the warmer part of the year and transport and communication is also difficult during the winter, especially to communities in the more remote parts of the watershed. There are only about 8 to 9 months of the year when working time will be effective and it is recommended that International staffs are in place between March and October/November inclusive, to limit winter downtime. Local staffs would of course still be in place as they are resident in the area.

In terms of the implementation schedule and time taken to train local staff the timeframe for implementation will be constrained by the ability of TA to support implementation technically as well as the time taken for local staff to gain the competence to assume greater responsibility. WBP is a large project by current Afghanistan standards and the amount of work to be undertaken exceeds what is now done by local contractors and NGO’s combined. The proposed TA reflects this and the wider staffing requirements and the capacity building reflects the skills needed to support implementation and eventually to transfer responsibility for implementation to national staff. The table below summarises the proposed TA staffing requirements.

Project staffing levels Category of Components Total Staff IWRM WRID ALSS PM & CB Professional 4 11 4 4 23 Technical 4 19 15 21 59 Support 4 13 5 24 46 Total 12 43 24 49 128

The proposed implementing schedule identifies a requirement for 23 professional grade staff, 59 technical grade staff and 46 support staff, a total establishment of 128 personal. Domestic project implementing staff, to be seconded from Government ministries / departments and/or recruited directly by the project, will receive capacity building consisting of both overseas training for professional staff and local training for technical staff. Local training will also be provided for project stakeholders including local irrigators and irrigation system managers, to introduce new concepts of integrated water resource management, and to strengthen the private supply chain for services and agricultural inputs. The capacity building cost is estimated at $5.0 million will be provisionally financed by grant funds from the Canadian International Development Agency (CIDA). The salary costs of the project implementation staff and the project running costs will be funded on a grant basis jointly by CIDA ($5.0 million) and Abu Dhabi Fund ($10.0 million). The Government will provide counterpart staff were available and contribute to the provision of office accommodation / facilities where practical.

The Project will require an estimated 738 person-months of consulting services: 570 international and 168 domestic. An additional consulting package of regionally sourced design and drafting services is also required at an estimated cost of $0.3 million. The input reflects the combination of support necessary to implement the physical works as well as the capacity building necessary to make the investments effective and sustainable. ADB will provide an Asian Development Fund (ADF) grant for technical assistance in the amount of $15.5 million to procure consulting services.

10 Western Basins Project Final TA Report – July 2005

Implementation and Financial Schedules

The WBP is a large and complicated project by Afghan standards and there are serious logistic and at times security issues to manage. The indicative sub projects that comprise the major infrastructure input will be implemented over 4 years concurrently with rolling implementation of the other components as appropriate. At around 3 years a review of progress and outcomes should be undertaken and planning for further implementation completed. Ongoing planning and implementation during the first few years could take the project well beyond the initial sub projects.

Start up timing is a critical factor for the first year of implementation because of the time to establish the project in this environment and location, and the severity of the winter and delays caused by weather, access, mobility and communications during this time. It is stated above that there is little to be gained by having TA on site during the 3 months of winter. But if start up is delayed beyond March/April, the opportunity for construction in the first year will largely be wasted.

During the first year, it is envisaged that construction will commence to satisfy establishment requirements. Negotiating contracting procedures, prequalifying contractors and detailed designs will take some time. Sourcing appropriate local people for training will be a major undertaking and could raise contentious issues at the national level in Kabul. However and in general, people sourced from Herat province would be preferred as they are more familiar with the project area and are more likely to stay during and after the project. Indicative Implementation and Financial Schedules are in the following tables.

11 Western Basins Project Final TA Report – July 2005

Summary of Implementation Schedule

12 Western Basins Project Final TA Report – July 2005

Summary Implementation Schedule (continued)

13 Western Basins Project Final TA Report – July 2005

Summary of Financing Schedule

Totals Including Contingencies 06/07 07/08 08/09 09/10 10/11 11/12 12/13 Total A. Civil Works 1. Component 1 Groundwater Demonstrations - 384.9 - - - - - 384.9 2. Component 2 (subcomponent 1) a. Subproject 1: Jui Nau Canal 310.4 2,011.7 - - - - - 2,322.0 b. Subproject 2: Obe Wash 295.6 430.2 - - - - - 725.8 c. Subproject 3: Sare Pul (Right Bank) - 724.9 1,452.4 - - - - 2,177.3 d. Subproject 4: Pashdan Wash - 1,852.7 711.2 - - - - 2,563.9 e. Subproject 5: Yahia Abad Canal 68.4 439.9 - - - - - 508.4 f. Subcomponent 1: Design Contract 96.8 198.4 33.7 - - - - 328.9 g. Subcomponent 1: Compensation 3.9 28.3 11.0 - - - - 43.1 Subtotal 775.1 5,686.0 2,208.3 - - - - 8,669.4 3. Subcomponent 2 & 3: Additional Allocation - - - 2,475.0 7,050.0 8,050.0 8,050.0 25,625.0 4. Component 4 a. Project Office (Herat) 1,253.6 ------1,253.6 b. Project Office (Obe) 689.5 ------689.5 Subtotal 1,943.0 ------1,943.0 Subtotal 2,718.2 6,070.9 2,208.3 2,475.0 7,050.0 8,050.0 8,050.0 36,622.4 B. Goods 1. Vehicles & Machiner y 858.4 1,566.4 48.9 112.5 275.0 275.0 1,065.8 4,201.9 2. Equipment 1,508.0 296.2 - - - 228.2 - 2,032.5 Subtotal 2,366.4 1,862.6 48.9 112.5 275.0 503.2 1,065.8 6,234.4 C. Services 1. Capacity Building 2,285.6 1,988.7 725.7 - - - - 5,000.0 2. Agricultural & Livelihood Support Services (ALSS) 150.0 725.6 856.1 712.4 1,944.1 1,688.8 1,650.0 7,727.0 3. Consulting Services 3,387.0 5,302.7 4,270.4 2,712.7 781.0 314.8 291.4 17,060.0 Subtotal 5,822.6 8,017.1 5,852.1 3,425.1 2,725.1 2,003.6 1,941.4 29,787.0 D. Recurrent Costs 1. Civil Works MO&M \1 - - 94.1 95.9 144.8 164.7 167.8 667.4 2. Project Implementation 1,001.5 2,313.8 2,487.9 2,535.1 2,583.3 2,632.4 2,682.4 16,236.3 Total 11,908.7 18,264.3 10,691.3 8,643.6 12,778.2 13,353.9 13,907.4 89,547.4 ______Source: Project Preparation Technical Assistance (PPTA) estimates, Jul 2005. \1 Mananagement, Operation and Maintenance.

14 Western Basins Project Final TA Report – July 2005

Project Management Structure

The project has to have a project management approach that allows the implementing agents and the recipient Ministry and Department Partners to work co-operatively and effectively. Although the loan will be administered through Kabul, the implementation will be through Herat Provincial Department of Energy and Water. Hence the Project Implementation Unit (PIU) will be based in Herat. A Steering Committee consisting of representatives of the MEW, ADB and other participating Ministries would be established in Kabul to oversee the project and act as a dispute resolution body. A Project Implementation Committee would be established at Provincial level to coordinate activities and resolve issues at the implementation level.

It is assumed the project will be implemented through a consulting company or companies that will supply the technical assistance and manage the loan funds for capital works and procurement. The consulting company will supply the Team Leader who would manage the PIU in conjunction with DEW representatives. The consulting firm would have a Project Director to oversee the PIU team and with the Team Leader liaise with the Steering Committee in Kabul regarding implementation issues. The Project Director and the Team Leader would report to the board.

As MEW is the responsible Ministry, there will be an expectation that the project will direct funds and activities through the MEW and DEW. However, cooperation with other ministries is necessary and important, for example with Ministry of Agriculture and Animal Husbandry and Food (MAAHF) which is the Department Partner for agricultural and livelihood services The extent to which funds can be directed to other Ministries and Departments will need to be negotiated and coordinated before and during the project implementation.

The PIU would sit within the DEW building and would have access to staffs from DEW and possibly other Departments such as Agriculture housed within the same Building. An office with full facilities would need to be established in Obe supported by a guesthouse for long term staffs. The Obe office would report to the Team Leader in Herat and be responsible for certain aspects of project implementation. The reason for establishing an office in Obe is to reduce travel time to the upper Valley where a large proportion of the initial subprojects are located.

The proposed management structure for WBP is outlined in the organogram below.

15 Western Basins Project Final TA Report – July 2005

Government of Afghanistan Liaison

Asian Development Ministry of Finance Ministry of Energy Bank (Executing Agency) and Water

Project Steering Committee (National Level) ADB, Development Partners, MEW, MAAHF, MMI, MRRD, NEPA, MWA, Governor’s Office, Consultant rep/Project Director National Provincial Implementing Committee (Local Level) DEW, DAAHF, DMI, DRRD, DOE, DWA, Governor’s Office, Team Leader

Consultants Project Implementing Unit Project sub office DEW &Team Leader (PIU) Obe

Project Components and Sub Projects

16 Western Basins Project Final TA Report – July 2005

Policy Issues

Afghanistan has had several regimes in recent years. All have had different approaches and often conflicting concepts of policy, rule of law and regulation. This has also been complicated by war, violent regime change and discontinuity of staff, policy, laws and a disconnect between national, provincial and local application, and interpretation and support for policy and laws/regulations. Consequently, there are some issues that will have a negative impact upon implementation and these will not be overcome by policy in Kabul even though the policy may be in place.

Local issues and concerns are the driving force for local action in Herat in irrigation and water issues. There are very good practical reasons for this – the people live in the areas and are responding to problems as they occur and the demands of local people. Wider policy issues can lose relevance in communication from the centre to the Provinces This policy disconnect brings into question the policy framework that is meant to underpin the implementation of WBP, including such issues as basin wide management and regulation of groundwater. The project can have a positive impact on this by increasing awareness and understanding of the wider issues.

Despite assurances of support for implementation at central and provincial level, the reality is that this support will be limited at best. Implementation will involve a large capacity building component in the early years to bring a group of people up to a technical standard which will allow them to take over the project implementation. Any pretence otherwise will cause serious embarrassment further into implementation. However, by increasing the capacity of local staff, the potential will be there for ongoing improvement and sustainability in water resource management however the details of policy emerge.

At present, groundwater and surface water are not seen as one interconnected system from a policy and regulation perspective. While the MMI looks after groundwater and is meant to cooperate with MEW on regulation, this is not happening in practice. The MMI does not have the capacity to understand and regulate groundwater and the MEW is in no position to take responsibility for these issues. At the local level, there is effectively no groundwater control mechanism and exploitation is proceeding in a scientific/knowledge vacuum about the resource. The project can address this and provide the knowledge base and make recommendations on use and develop a regulatory framework to support conjunctive use of water resources.

Policy issues and options to address these are given in the table below.

Community Consultation

As part of the PPTA, extensive community consultation was undertaken through the Gender Specialist, the Migratory Peoples Specialist, the Mirab and WUA Specialist and the Social Specialist. These have been reported in the Inception Report, the Mid Term Report and the individual Specialist reports Attached to this Report.

In the villages within canal command selected for detailed study, it was found that for lack of land and working capital, a large proportion of households have only a small stake in irrigated agriculture. It was also found that canal water is widely used for domestic purposes, and that ground water is also important for both domestic and irrigation purposes. This means that canal rehabilitations will mostly benefit existing land holders who are already an advantaged group as landholders with water rights. While opportunities exist to supply more water and spread benefits further along canals, the reality is that a wider perspective is needed to benefit the majority of the community members.

17 Western Basins Project Final TA Report – July 2005

Policy Issues and Options Policy Issues and Options Ministry Responsibility within Issues Options to address Issues or WB Agent MEW Implementing agent Lack of Staff and Mechanism to attract staff and resources to support support capacity building at national projects and provincial levels Lack of coordination with Project management structure to DEW address coordination at provincial level through a interdepartmental steering committee Lack of coordination with Project management structure to other ministries address coordination at national level through steering committee with other Ministries Does not have Consolidate surface and responsibility for groundwater management; liaise groundwater , or on farm with MAAHF on institutionalising water use or rangeland on-farm water management, management perhaps catchment management in a wider sense DEW Coordinating / Has very little capacity to Training for local staff and project implementing agent implement or coordinate recruited staff to be able to cope activities at present with ongoing implementation over the life of project as international staff phases out after 4 years. WBP is much larger than Improving the skills and quality of current inputs from all local contractors and groups to other donors put together implement activities Attracting and retaining Offer incentives through the project staff and tied to the project to access training for engineering staff and others from DEW and other departments to allow them to work on the project, be trained and carry on the work, train excess to allow for attrition MAAHF Implementing or Lack of ongoing reforms Means of implementing national cooperating agent and focus for activities policy needs to be found that is achievable and goes beyond delegating to NGO’s MMI Cooperating agent Responsible for some Pass groundwater to MEW to aspects of groundwater, consolidate into one agency. research and assessment without capacity or information to effectively manage groundwater DAAHF Implementing or Few staff in districts, lack Offer incentives through the project cooperating agent of resources and staff for involvement and limit agricultural services to areas where counterparts are available to work with. Provide short courses for district staffs and some provincial staffs to encourage some effort MRRD Cooperating agent Some overlap with Be inclusive of MRRD principles as rangeland management outlined in Watershed approaches DRRD Cooperating agent Overlap with rangeland Be inclusive of DRRD staffs and and watershed cooperating NGOs at different sites

18 Western Basins Project Final TA Report – July 2005

Policy Issues and Options Ministry Responsibility within Issues Options to address Issues or WB Agent approaches in to allow for implementation support community structures from all. MBTA Overlapping Ministry Unclear national policy Cooperate at local level and try to dealing with migratory and little implementation avoid existing hostilities at peoples capacity provincial level DBTA Cooperating agent Almost no capacity at Be inclusive in land use mapping provincial level for and migratory peoples consultation, involvement provide transport for consultations with different groups, encourage input into database River Planned for the future Planned for overall Support approach through Basin management of river Component One (IWRM) and Authority basin resources capacity building Component 4 (Capacity Building) Mirabs Cooperating agents Community water Support formation of Mirab councils and Mirab and community water managers and planned that feed into higher level structures councils managers for greater management under the Basin Management responsibility including approach, provide training and O&M of rehabilitated support for O&M and improved systems management mechanisms. Support legislation and administrative changes to improve livelihoods of Mirabs Ministry of A potential Almost invisible but with Need to have a greater role at Women’s cooperating oversight of women’s Provincial level into the future Affairs Department/Ministry issues and a national although not easy to achieve in the presence in the current circumstances. Presidents Office

The use of and potential for wells is far greater and more important than the project brief would indicate; this is an issue that requires serious technical investigation. Wells are regularly increased in depth each season, indicating increasing pressure on groundwater resources. Whilst the recent years of drought will affect this, the use pattern must be quantified.

In canal communities the proportion of landless people can exceed 50%, not including the kuchi pastoralists which are present only seasonally. A proportion of the poorest kuchi, having lost their herds during the drought, are becoming semi-resident on village boundaries. For both the resident landless poor and the semi resident kuchi disfranchised from their flocks, livelihoods alternatives to agriculture and access to land and water are major issues. The population in the Western basins is rapidly increasing. The birth rate is high and augmented by returnees and migrants. The pressure on land and water resources is in consequence immense. Many Kuchis are opting to migrate less or being forced into that position by dwindling rights of access. These tribes are establishing permanent settlements to gain better access to land. Many kuchi are returnees from Iran and have brought skills in areas such as rangeland management that would be useful to utilize if land access and ownership could be arbitrated.

Social and economic relationships, between male and female, settled populations, and sedentary and nomadic communities are complex and diverse. Attitudes are changing towards aspects of traditional Nomadic lifestyles, where there is a growing need to diversify and find more income sources. Potential capacity building opportunities exist between the project and the Department of Ethnic and Tribal Affairs and the Ministry of Rural Rehabilitation and Development. Experiences and skills brought back from abroad continue to alter attitudes which, combined with the increasing population, are forcing people to look

19 Western Basins Project Final TA Report – July 2005 for livelihood opportunities off the farm. Women for example, see income generation as a key area for themselves, a trend which is encouraged with greater community awareness of the benefits of allowing women to seek their own employment and income. This has often been forced upon women due to the loss of husbands and family through war and conflict, the very poorest with large families to support. Alternative income generation across the wider community is a major issue as is income distribution and equity.

To have an impact on reducing poverty, the wider issues beyond canal rehabilitation must be addressed. Hence the importance of community capacity building, agricultural and livelihoods support, and watershed management, that supports improved livelihoods for non- canal water users. Community definitions of wealth are associated with land ownership, access to wells and canals, home ownership, and cash in hand. Poverty is associated with no land, no home ownership, reliance upon renting and/or charity and a large number of children in the family. Villagers are seeking outside support and can articulate their concerns and issues. They appear willing to participate in an approach based on shared risk and shared profit, which is consistent with Islamic tradition. Raising general awareness within the community of alternatives and addressing bias, in particular male and religious bias towards women will be necessary. This will take a long term approach building on existing cooperation mechanisms and harnessing current positive attitudes of people to move on from the current situation. Seed funding for activities within communities which are self managed and gender/community specific would be useful.

It will be necessary to develop a community consultation/facilitation process to ensure that the communities within the target areas are made aware of the project and have the opportunity for input into planning activities. As many community members are not land owners, they will not necessarily benefit directly from canal rehabilitation. However, they have the opportunity to benefit from increased farm labour and service requirements which follow on from irrigation rehabilitation, and the alternative livelihood opportunities arising from WBP’s, ALSS and IWRM components.

In response to these investigations two community specialist positions have been included in the proposed Technical Assistance, and training in capacity building has been included to support the process. This is to encourage counterparts and local project staff and co operators to have the skills in community facilitation and consultation to address wider community issues during implementation, even though the WBP cannot address all the social issues encountered. They will have the role of developing and testing and adapting processes for different groups and should be able to operate in a wide variety of community and resource environments.

Environmental Assessment

An initial environmental examination (IEE) was conducted during project preparation. The IEE confirms that the Project will have no significant negative impacts, but rather the project will have significant positive environmental impacts on the subproject areas. Rehabilitation of the irrigation and drainage canals and associated control structures will reduce water losses, improve water availability, and reduce water logging.

The only potential negative impacts identified are due to construction, and they are insignificant. They will be mitigated by ensuring that construction is carried out according to the project implementation guidelines as well as the standard ADB and Government of Afghanistan procedures for the appropriate disposal of waste, minimization of nuisances during construction, and proper management and restoration of construction sites.

20 Western Basins Project Final TA Report – July 2005

None of the project components is located within a protected area, nor will it have a negative impact on historical or cultural monuments. The ecology in the project areas has been extensively modified through centuries of habitation and intensive agriculture and, as a result, both terrestrial and aquatic biodiversity is considered to have been greatly reduced throughout the project area with accelerated destruction of flora and fauna since the beginning of conflict in the 1980’s. Measures have been proposed to mitigate the minor potential negative impacts identified in the IEE.

The project will improve water use efficiency and increase crop production without reducing flows to downstream users, and although drainage improvements will result in increased effluent flow, the introduction of: (i) improved agricultural practices aimed at managing agro- chemicals and (ii) improved land management practices to reduce land and river bank erosion will result in improved stream flow quality.

Mitigation measures will be combined with an environmental management and monitoring plan which has been integrated into the project design and costs. An environmental monitoring component will be established within the project M&E program. This will be done during the first year of project implementation. A key feature of the monitoring program is the development of local capacity to monitor, analyze, and remediate through a joint agreement between DOE, Herat University Faculty of Agriculture, DEW and PIU.

Supported by consultants, the unit will refine and implement the monitoring system set forth in the IEE, and collaborate with mirabs and wakils to identify a cost efficient sampling distribution that will maximize information. It will design a laboratory suited to the near term ability of local staff, train provincial staff in the correct procedures for managing the collection, analysis, recording, and reporting of soil and water information; and assist with the monitoring of project impacts.

Resettlement and Land Titling

This Compensation and Resettlement Framework is intended to be the foundation for the processes of compensation and remedying adverse affects on land, property and people that may arise from the activities of the WBP.

The framework is based on the ADB “Policy on Involuntary Resettlement” of 12 December 1995. The ADB Policy particularly states that “The absence of a formal legal title to land is not a bar to ADB policy entitlements.” The policy is contained in the ADB “Handbook on Resettlement” and is amplified and extended in the ADB Operations Manual section F2/BP of 29 October 2003.

The ADB Policy states that “The involuntary resettlement policy objectives are (i) to avoid involuntary resettlement wherever feasible; (ii) to minimise resettlement where population displacement is unavoidable by choosing alternative viable project options; and (iii) where involuntary resettlement is unavoidable, to ensure that affected people receive assistance, preferably under the project, so that they will be at least as well off as they would have been in the absence of the project. Where involuntary resettlement is unavoidable, the policy is designed to include any resulting losses in project budgets. The policy treats involuntary resettlement as a development opportunity and allows planners to manage impoverishment risks and turn the people dispossessed or displaced into project beneficiaries, particularly the poor and vulnerable, who may be disproportionately affected by resettlement losses.” This policy has been followed in the framework, especially in those matters where there is insufficient or no provision in the laws of Afghanistan.

21 Western Basins Project Final TA Report – July 2005

The Government of Afghanistan (GOA) has no formal national compensation and resettlement policy at this stage. The framework presented in the main report, is to address issues, in particular, compensation for disruption that may be cause by project activities in accordance with ADB guidelines. Resettlement per se is not seen as necessary with the type of activities planned.

Land titling in Afghanistan is a complex and confused issue because of successive regime changes and an unclear situation and recognition of various older statutes, local interpretation, and traditions. The working paper attached to the report discusses the law relating to land ownership and land transactions; describes past and current systems and procedures for land recording and registration and issuing documents of title; canvasses issues relating to public or common land and its administration, government ownership of other rural land and its administration; discusses the inefficiencies of the current land recording and registration systems and proposes simple initiatives, which are consistent with national procedures and other possible initiatives for land titling, to be included under the project activities. It also recommends a number of capacity building activities for recording and registration of rural land ownership in Herat Province. Whilst it might have an impact on some project activities, the WBP will not address land titling issues.

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Preliminary Logical Framework for WBP Design Summary: Performance Targets Monitoring Assumptions Western Basins Mechanisms & Risks Project Goals: 1. Raise the Measurable improvements in • Statistics as • Improvements to productivity of the production of staple crops collected by GOA irrigation will irrigated and farm incomes within the and other increase agricultural agriculture to targeted areas. agencies. production which improve rural • Socio-economic will increase rural incomes and data collected by incomes which will stem rural the WBP. reduce poverty. poverty. • Not all Increases in 2. Strengthen crop production and integrated water income may be resource measurable within management Project timeframe. (IWRM) for sustainable development in the Western Basins. Purpose: 1. Improve delivery • Greater numbers of • Numbers of • GOA will make of irrigation trained irrigation planning, trainings, adequate and service and design, management, numbers of appropriate staff equity of benefit operations, and participants from available for training distribution. maintenance staff at all various GOA and and participation. 2. Improve levels within GOA and other agencies. • GOA supports capacity, CIIs. • WBP progress IWRM and institutional • Irrigation infrastructure monitoring, improved irrigation framework, and upgrades covering 50,000 progress in the Western resources for ha irrigable area. reporting. Basins. IWRM. • Average increase in farm • MEW / DEW • Security situation 3. Increased family benefit of over 20% reporting. allows WBP household per household • Socio-economic activities to proceed incomes with • Poor and landless farmers surveys as per as planned. equitable benefiting from WBP the WBP M&E • Local communities benefits for the alternative livelihoods plan are interested and poor. opportunities. cooperative.

• Indigenous people, • WBP interventions women, and other are measurable marginalized groups within Project time benefiting from the frame. project. Outputs: Improved • Effective cooperation • Output from MEW • Ministries will institutional between MEW and & MAAHF. cooperate. framework for IWRM MAAHF • Review missions. • GOA will make through • Training and physical • WBP monitoring available adequate strengthening and support in information and reporting. and capable staff, capacity building of management and funds and local institutions. decision support tools resources Improved • Groundwater monitoring, • Progress of Groundwater resources understanding and analysis, groundwater and GW/SW utilization of water recommendations investigations. relationships can be and other natural completed by year 4. • Outputs of GIS determined through the resources of the • Integrated GIS available suggested Western Basins. established • Progress of land investigations.

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Design Summary: Performance Targets Monitoring Assumptions Western Basins Mechanisms & Risks Project • Land use mapping, use mapping. traditional grazing rights defined. Improved irrigation Improvements completed by Progress monitoring GOA and local water delivery for end of WBP year 6. as per WBP M&E communities interested 50,000 ha. Plan. and cooperative.

Sufficient suitable areas for improvements exist. Improved capacity of • Appropriate trainings for • Training records. • GOA and CIIs will local institutions to staff at all levels. • Delivery records make staff available operate and • Physical support & use records of for trainings. maintain irrigation (provision of irrigation equipment. • GOA and CIIs will systems. maintenance & • WBP monitoring make operating construction equipment to and reporting as funds available for DEW and CIIs. per M&E Plan. equipment. • Adoption of improved O&M methods within DEW and CIIs. Substantially Average increase in farm • Number and Pilot sites are increased income for family benefit of 20% resulting progress of pilot identified, local households within from: increased cropping programs (as per communities are sub-project areas, intensity, higher value crops, M&E Plan). cooperative. with bias toward improved crop handling, • Number and alleviating poverty. increased access to inputs, progress of WBP and GOA staffs improved livestock replication of are available and management, alternative activities within interested. income generation methods. WBP geographical area. (See M&E Plan).

Inputs: 1. Civil Works: $36.6 M • WBP budget and TA is adequate, 2. Vehicles & $4.2 M expense competent. Machinery monitoring. Local staff is adequate, 3. Equipment: $2.0M • Regular reporting. competent. 4. Capacity Building: $5.0M 5. ALSS: $7.7M 6. Consulting Services: $17.1M 7. Civil MO&M: $0.7M 8. Project $16.2M Implementation: Total: $89.5M

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1 INTRODUCTION

The Western Basins Project (formerly the Western Basin Water Resource Management and Irrigated Agriculture Development Project) is a sector project under the Natural Resources Sector Program of Afghanistan. The project is based around the Hari Rud and Murghab River valleys in Western Afghanistan and will be referred to as the WBP in this document. National policies for water management and related issues are currently being developed and to a lesser extent tested in Afghanistan. The WBP is part of the Asian Development Bank’s (ADB) and the Government of Afghanistan’s Natural Resources Management (NRM) strategy. The vision for this program is “for an integrated approach to the socioeconomic development of Afghanistan with active participation of communities and a viable private sector, with development based on efficient and sustainable utilization of natural resources, thus achieving prosperity, peace, security, social justice and equality in the country”. The strategy will be implemented through the key Ministries, the Ministry of Energy and Water (MEW), the Ministry of Agriculture, Animal Husbandry and Food (MAAHF) and the Ministry of Rehabilitation and Rural Development (MRRD).

The WBP seeks to address key issues related to water use and management primarily in the Hari Rud catchment/watershed with possible further activities in the Murghab River valley. The two rivers, although they flow into different countries, constitute Afghanistan’s Western Basin for planning and future development of water resources. In the longer term, a River Basin Authority will be built around the watershed boundaries, if current thinking is maintained. Herat is the main urban and commercial centre in the basin and irrigated agriculture is a major activity close to the rivers where land is suitable and to a limited extent around karezes. This occupies a relatively small part of the overall basin, most of which consists of rangelands and steep slopes with some high peaks to over 4,000 meters. It is an arid environment with limited ground cover and is heavily utilized by different groups of people including migratory pastoralists.

The majority of the staple crops of wheat and rice rely upon irrigation water for successful production so the importance of irrigated agriculture to the national economy is very high. Food security is largely dependant upon irrigation and watering points for livestock. There is significant social and economic change occurring in Afghanistan, following a long period of instability. Population in the WBP areas is increasing rapidly, placing extra strains on resources. The national and provincial administrations have limited resources, both human and financial, to address issues, hence the need for external assistance to the sector.

The Western Basins Project is scheduled to begin in 2006 and will run for seven years to 2013. The implementing agency will be the provincial department of the Ministry of Energy and Water, supported by other government departments and NGOs. The value of the project will be about US$ 90 million. There are four components to the proposed project: 1. Component 1, Integrated Water Resource Management (IWRM), will focus on the preparation of decision support tools for IWRM such as GIS, groundwater modelling, and improving climatic and surface water data. Expected out turns of the component will support the formation of a Western Basins Authority for high level water management, and the scientific preparation for the eventual use of deep groundwater, particularly in the Lower Hari Rud, as a source of irrigation to supplement surface and shallow groundwater sources. It will also include the drafting a regulatory framework for groundwater use. 2. Component 2, Water Resources and Irrigation Development (WRID), will design, commission and execute about 70,000 hectares of irrigation rehabilitation and flood and erosion control works in the lifetime of the project. Five key core sub projects have been prepared to feasibility level for immediate implementation. Initially rehabilitation will be focussed on the Lower Hari Rud, later in 2009 the work will be extended to the Murghab Basin. 3. Component 3, Agricultural and Livelihoods Support Services (ALSS) will provide technical support, credit and microfinance for specific target groups in the areas

1 Western Basins Project Final TA Report – July 2005

scheduled for rehabilitation. Focus will be on increasing access to reasonably priced crop inputs by all farmers, providing technical support for higher value cropping, storage, handling and on-farm processing, and opportunities for gender-sensitive alternative livelihoods for the poor and landless. 4. Component 4, Project Management and Capacity Building defines the administration of the project and the human and physical resources required for implementation. Western Basins is a large project and the present institutional resources are very limited, so a key feature of the component will be the early selection and training of professional staff to implement tasks scheduled for later implementation.

This report is the culmination of the work of the consultants engaged to undertake the design of the WBP. Work commenced in December 2004 and was completed in July 2005. Significant difficulties were encountered during the design and reporting period, including the severe winter of 2004/05 and ongoing security concerns that restricted staff movement, the tragic loss of the original Irrigation Engineer in a plane crash, and difficulties in obtaining consultants in a timely manner. Some aspects of the Technical Assistance (TA) Terms of Reference (TOR) and individual TOR’s were compromised by these conditions. Individual TOR’s are contained in the individual consultant reports, bound separately and attached to this report.

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2 TERMS OF REFERENCE FOR THE TECHNICAL ASSISTANCE

The TA will undertake technical studies, institutional analyses, and capacity needs assessments to prepare an investment project for integrated water resources management (IWRM) and irrigated agriculture development. The TA and the ensuing project have the following interrelated objectives: vi) improve water resources management at all levels, from on farm to basin management; vii) rehabilitate, modernize, and develop new irrigation and water resources infrastructure; viii) enhance the enabling environment for improved agricultural productivity; ix) ensure the integrity and productivity of watershed resources; and x) develop capacity and strengthen institutional frameworks for IWRM and irrigated agriculture.

Note: Due diligence report on Salma Dam was not undertaken because information was not accessible from the Indian Government Representative or the Indian contractor on site in Herat. However, Salma Dam is assumed to be proceeding and an assessment of previously available information by the consultant Hydrologist indicates that the effects of Salma Dam will be beneficial to irrigation and flood control further down the valley. The Hydrologist report is in Attachment 1 of this report. The Agricultural Economist reports also contain assessments of the impacts of Salma Dam on agricultural productivity in Attachment 8 (iii & iv).

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3 BACKGROUND RATIONALE AND JUSTIFICATION

Agriculture contributes to the support of approximately 80% of Afghanistan’s population. Years of conflict and lack of investment in human and physical resources coupled with recent severe drought has left the natural resources sector under serious strain. Food security has been seriously challenged by these circumstances and increasing population is placing further strain on the small amount of irrigated land in this generally arid country. There are several factors that are having a significant impact on irrigated agriculture and wider land use in the Western Basins. These include population increases and changing demographic patterns, poverty and income generation, social change, investment in infrastructure at all levels and improvement in security within the country. More basic factors such as over exploitation of resources and a lack of a coherent mechanism to manage resources have led to ongoing resource degradation problems.

The ADB’s Paper (Natural Resources in Recovery, of March 2004) outlines the key issues and programs needed to address the strain on natural resources through improved natural resource management programs and projects. Irrigated agriculture, watershed management, agricultural productivity and improved capacity with governments and communities are important in improving management and supporting infrastructure enhancement is necessary to maintain and improve productivity while protecting the resources. The WBP includes Subprograms outlined in the report and incorporated an integrated approach to address the issues in each.

3.1 Policy Framework

The WBP follows an integrated approach to water resource management in support of the sector approach with four components addressing the above and consistent with the national priority sub programs. The policy framework for Integrated Water Resources Management is still being developed and tested. There is a wide gap between the policies under development at national level and the reality of the Provincial administration’s approach to natural resource management. This is partly because of the roles of the different departments and ministries involved and partly because of the serious lack of human and physical resources to address issues at provincial and district levels. While the policy agenda is largely donor driven, the implementation has to operate through the local administration where possible to gain ownership. Where local capacity and/or national support is limited, this presents problems for implementation and sustainability of interventions because counterparts are not available and capacity building is compromised.

The guiding principles of the policy framework are presented below: • Planning, development and management of water resources would be decentralised to an appropriate level corresponding to river basin boundaries. • Delivery and extension of water services would be delegated to autonomous and accountable public, private and/or cooperative agencies providing measured water services in a defined geographical area to customers and/or members for an appropriate service fee, ensuring longer-term cost-recovery. • Water use in the society would be sustainable within a transparent policy framework with incentives, regulatory controls and public education promoting economic efficiency, conservation of water resources, and protection of the environment. • Water sector development activities would be participatory and consultative at each level, leading to commitment by stakeholders and actions that are socially acceptable. • Successful water sector development requires a commitment to sustained capacity building, strategy development, budget funding, monitoring and evaluation, research, information services and learning at all levels.

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• MIWRE (now MEW) will strive to address issues related to shared water resources within and between nations to be efficiently allocated for the mutual benefits of all countries affected.

The River Basin Approach towards IWRM is a higher level priority that is currently under development within the MEW. This will require significant resources and capacity building over the next few years if this is to eventuate in a Western Basin Authority (WBA) to manage the water and other natural resources of the Western Basin. The three key ministries are; MEW, responsible for surface water and irrigation water delivery; MAAHF, responsible for on farm water use, agricultural support services and for rangeland and forest management; MRRD, responsible for community development and support. Also of considerable importance is the MMI, responsible for groundwater. As groundwater use is increasing in importance, the role of MMI needs to be clarified in the national policy framework. Similarly, there is a need to consolidate the role and position of irrigation within these ministries and consolidate the position of groundwater within a water based ministry to ensure management of the whole resource in an integrated manner.

There are several provinces within the WB area of which Herat is the strongest and most developed. Provincial administrations have a structure similar to the National Ministries and a technical line of responsibility to those Ministries but the departments are answerable to the Provincial Governor. This can cause problems for the implementation of national policies. Provincial Departments focus on local issues out of necessity.

3.1.1 The Water Sector Institutional Context

Afghanistan’s present institutional context is complex and the water sector in the country is a reflection of the current institutional structure. During 2002 and 2003, Afghanistan promoted the development of National Development Budgets. This initiative was followed in December 2003 to develop a 12 year strategic plan under the title “Securing Afghanistan’s Future”, known as the “Re-costing Exercise” within government institutions and the international community.

MEW together with MAAHF developed a 12 year strategic plan for Natural Resource Management (NRM) for Afghanistan. The most significant of these relating to implementation of WBP is: 1. Institutional Strengthening and Capacity Building: aims to establish an effective and efficient water resources agency with sufficient capacities to be able to respond to both the immediate reconstruction and longer term development needs of the country at national, regional and local levels. Enhancing institutional, managerial, and technical capacities of MEW at all levels in policy development, planning national water development, and monitoring and evaluation, as well as managing natural resources on a river basin or watershed basis. 2. National River Basin Management Program: aims to establish decentralised integrated water resources management, based on river basin and watershed approaches, including the generation of adequate data for planning and operational needs of management and promotion of water conservation and harvesting.

3.1.2 Main Stakeholders in Water Resources at Government Level and their Roles

The following describe the complexity of the present institutional arrangements in the water sector.

Ministry of Energy and Water (MEW) The Ministry of Energy and Water (an amalgamation of the former Ministries of Irrigation, Water Resources and Environment [less the Environment sector which now has the status of an Agency with direct responsibility to the President] and Water and Power) is responsible

5 Western Basins Project Final TA Report – July 2005 for the development and management of the formal irrigation schemes in the country, the development and management of the water resources and management of reservoirs and dams that are primarily designed for hydropower production. Part of these responsibilities will be the management of hydrological stations, the collection and collation of data from those stations and the processing of the data to evaluate water resources; development of river basin flow models as a tool for decision making; snow survey, collection and analyses of meteorological data in watersheds and river basins.

Ministry of Rural Rehabilitation and Development (MRRD) The Ministry is responsible for the development of small-scale irrigation and for the development of drinking water in rural areas.

Ministry of Mines and Industries (MMI) The Ministry is responsible for the hydro-geological surveys necessary to evaluate groundwater availability nationwide. A database on groundwater is available in the Ministry.

Ministry of Agriculture, Animal Husbandry and Food (MAAHF) The Ministry is responsible for all on-farm irrigation and extension services and for rangeland management (in a similar way to watershed management).

Ministry of Urban Development and Housing (MUDH) The Ministry is responsible for the planning and development of water supply and sewerage in urban areas. With domestic water supply having a high priority in the National Development Framework (NDF), this Ministry is an important coordinating partner for MEW.

In view of the possible institutional changes at the national level, MEW envisages the following institutional arrangements for the water sector as an ideal solution to the present complex structures:

APEX BODY A single institution that exerts national water ownership, sets principles and policies of water management and designs the institutional arrangements of the water sector (laws, regulations and mandating of regulatory and executive organisations)

CATCHMENT-BASED ORGANISATIONS Basin, sub-basin, watershed and similar organisations for integrated water management (excluding service delivery)

WATER SERVICE DELIVERY ORGANISATIONS Organisations that own the infrastructure, but not the resources, effectively mandated to operate under maximum degree of autonomy and able to eventually recover costs

The Apex Body will be responsible for developing and establishing a legal framework and standards; law enforcement; developing and enforcing operational guidelines and providing technical control, aside from exerting water ownership at the national level. This will clearly entail the designing of institutional arrangements. Local and regional-based regulatory functions will be a responsibility delegated to the River Basin Authorities. This responsibility will entail water resources management at the basin level, including operating parts of the regulation, such as issuing permits to extract water and discharge wastewater. However, in both instances the Government will ensure that bureaucratic “command-and-control” modes

6 Western Basins Project Final TA Report – July 2005 of operation will be replaced by means that ensure self-regulation and to prevent the executive organisation from setting rules to regulate themselves. In other words, each part of the organisational set-up must be accountable, especially to consumers / beneficiaries; a government-appointed impartial regulator must carry out formal regulatory supervision. The institutional environment plays an essential role in the effectiveness and efficiency of the water sector and requires both political will, effective law enforcement, and requires the different organisations to work in a more integrated manner.

Successful water sector development requires a commitment to sustained capacity building, strategy development, budget funding, M&E, research, information services and learning at all levels.

3.1.3 Policy Issues and Institutional Capacity

The NDF framework initially developed in April 2002 and updated in 2003 outlines key policies for economic growth, improved rural livelihoods, and for sustainable use and management of the natural resources. At the heart of the sector policy are issues of equity, water security, land ownership and tenure rights, and poverty alleviation along with the development of human resources. Gender, human rights and environment, are addressed in the policy documents as the major cross-cutting issues and will be attended by specific strategies in the water and natural resources sector. The policies are based on partnership with all stakeholders, community participation, and sector-led growth and development, guaranteeing longer-term food security. In the context of private sector-led macro economic guidelines prescribed by the NDF, the agriculture sector is viewed as the main source of livelihood for the country, with irrigation as the key contributor to the agriculture sector.

3.1.4 Strategies

Specific strategies will be designed to ensure a steady recovery of economic growth and mitigating hardship among the poor. The NDF prescribes clearly the division of roles and responsibilities between the public and private sector.

To achieve the sector objectives will require policy review and a range of reforms. A number of key policy reviews are needed, which will build on the NDF identified policy reforms: a reform agenda and a work plan have already been developed and will be implemented over the next 2-3 years. The overall policy framework and the development of sub-sector policies and strategies are guided by the following general policy principles outlined earlier. The Policy Matrix outlines specific policy strategies in Section 9. The Capacity Building Specialist’s Working Paper (Attachment11) contains details of the institutional assessments and needs for institutional strengthening.

In implementing the water sector framework, an important criterion will be harmonising the sub-sector policies, as well as other relevant policies, such as water and sanitation, agriculture, rural development, power and other stakeholders. Institutional capacity will need to be strengthened to enable effective enforcement of necessary regulations. Similarly, an effective monitoring and evaluation system will be vital to monitor regularly the effectiveness and efficiency of the sector performance and to learn lessons in improving planning and programming for future development processes.

3.2 The Natural Resource Base of the Western Basin

Afghanistan contains approximately 8 million hectares of arable land, of which roughly 5 million ha is potentially irrigable land, though only approximately 1 to 3 million hectares is irrigated in any given year. Surface water is the predominant source for irrigation water, and the high variability of area irrigated annually depends largely on the variation in annual runoff from snow melt. Groundwater, historically an important but minor source of irrigation water,

7 Western Basins Project Final TA Report – July 2005 is gaining popularity. Despite the relatively low percentage of irrigated area, irrigated agriculture accounts for over 80% of crop production in the country.

The Western Basin covers approximately 7.76 million hectares from the central highlands to the Turkmenistan border in the north and the Iran border in the west as shown in Figure 3-1. The major rivers systems are the Hari Rud and Murghab river basins, both rivers flowing into Iran and Turkmenistan respectively before disappearing through evaporation and infiltration. The majority of the topography is rangelands to steep slopes interspersed with washes and ephemeral streams with the Hari Rud valley opening to a wider expanse in its lower reaches as it flows towards Iran. The other major river, the Murghab is more confined, flowing into Turkmenistan along a more incised path.

3.2.1 Irrigated Land

Figure 3-2 shows the distribution of irrigated land, intensive and intermittently irrigated, reproduced from a FAO work in the mid-1990’s. There is an extensive area of intensive irrigation in the Lower Hari Rud2, and more scattered distribution of smaller irrigated areas in the Upper Hari Rud and Murghab. The distribution is largely a function of water availability (accessibility and reliability) and land suitability (soil type and topography).

As summarised in Table 3-1 there is on the order of 302,000 hectares of reported as irrigable land in the Western Basins. At the time of the study approximately 173,000 hectares (57%) of the total was intensively irrigated of which 109,000 ha (63% of intensive irrigation) occurs in the Lower Hari Rud. Most of the intermittent irrigated lands were also in the Hari Rud (62%), again with the majority in the Lower Hari Rud. In the Murghab there was a higher proportion of intermittent to intensive irrigation (compared to the Hari Rud), which may be due to constraints on water availability and land suitability, though this needs verification.

Table 3-1: Summary of irrigated areas (FAO) Sub catchment Intensive Intermittent Total ha % ha % ha % Bala Murghab 28,566 16 34,192 27 62,758 21 Kushk wa Kashan Rud 10,924 6 13,398 10 24,322 8 Lower Hari Rud 108,633 63 57,043 44 165,676 55 Upper Hari Rud 25,281 15 23,717 18 48,998 16 Total 173,404 57 128,350 43 301,754

The PPTA team made a very similar but independent estimate of cultivated land in the Western Basins as estimated in 2003, based on population statistics, farm sizes and cropping patterns collected in the NRVA (2003) survey. This work showed that “intensive irrigation” as a proportion of cultivated land had shrunk alarmingly from 57% in the mid 1990s to about 25% in 2003. This suggests that the severe drought (1998-2003) was responsible for a severe contraction of intensive irrigation in the Western Basins.

2 The term Lower Hari Rud refers to the division of the catchment adopted for the PPTA and is consistent with AIMS subdivision

8 Western Basins Project Final TA Report – July 2005

Figure 3-1: Western Basins

9 Western Basins Project Final TA Report – July 2005

The majority of the irrigated area within the Western Basins are traditional irrigations systems. That is, irrigation systems which have been constructed, operated, and largely maintained by a local community of water users. However, the condition of the irrigation systems that supply water for this land has gradually worsened over the past several decades, affected by conflict and political instability. As mentioned above recent prolonged drought has also severely impacted irrigated agriculture throughout much of the country, including the Western Basins.

The area of irrigable land in the Western Basins as a whole is only conjectural, but a land suitability survey of the lower Hari Rud in the mid 1990s returned an area of 152,200 hectares of suitable and marginally suitable land. Apart from small areas of irrigation upstream of Sari Pul and on small side valleys and washes, most suitable land for irrigation is below Sari Pul on both sides of the Hari Rud River to below Herat where available surface water becomes the limiting resource, not available land as in the upper reaches. The river has been divided into two areas for project purposes, the Upper Hari Rud, above Sari Pul where water is available and land is the limiting resource (due to the narrowing of the valley); and the Lower Hari Rud including Zindajan to the Iranian border where land is available and water is scarce and topography restricts its use in places. In the Upper Hari Rud, much of the focus should be on IWRM and rangeland management as the amount of irrigation land is limited. The Lower Hari Rud contains the majority of existing irrigated land and should be the focus of irrigation rehabilitation. Further down the Lower Hari Rud has land but limited surface water and should be seen as an area for future development of groundwater if this can be developed and managed in a sustainable manner. Little is known about the Murghab and access is difficult and an effort should be made to understand the situation and to spread some investment there.

Land quality is variable throughout the basin and arable land comprises a very small part of the available land. However, productivity from irrigated arable land is comparable to similar environments in other less developed countries and there is considerable potential to improve productivity within the constraints of the existing farming system. The land resources of the Lower Hari Rud have been incorporated into the GIS mapping database from FAO data and examples of the output included in Attachment 15 of this report. In general, the majority of suitable land for irrigation that can be irrigated from the river flow is already irrigated so the potential to increase irrigated land area is limited to washes, side valleys and opportunistic flow exploitation for winter wheat in spring. Potential exists to improve the intensity of use by reducing the amount of fallow land within the systems and, by extending the summer second cropping if water availability is increased into the summer months. Cropping patterns can change in response to changes in water availability such as increasing rice production and producing more summer crops, either vegetables closer to Herat, or fodder further away.

Vegetation cover is sparse on the rangelands, in part due to overgrazing of livestock and the pressure for fuel sources and in part to drought in recent years and the arid environment. There is very limited forest cover and this is threatened by overuse as well. The Watershed Management and Development Specialist report in Attachment 4 outlines the background to past and current approaches to rangeland and watershed management and the current situation with the state of the resource. However, access to the Upper Hari Rud and the Murghad valleys was limited due to problems of access during the winter and later by security issues and time constraints.

10 Western Basins Project Final TA Report – July 2005

W E

S Kushk wa Kashan Rud Bala Murghab

Upper Hari Rud

Lower Hari Rud

Intermittent irrigation 100 0 100 200 Kilometer s Intensive irrigation

Figure 3-2: Western Basins irrigated areas

11 Western Basins Project Final TA Report – July 2005

3.2.2 Potential New Land or Increase in Irrigated Areas

There are about 527,000 ha of land in farms in the Western Basins, of which between 165,000 ha (FAO 1995 estimate) and 176,000 (PPTA 2003 estimate) is in the Lower Hari Rud below Chisti Sharif District. This farm area includes intensively and intermittently irrigated land, rainfed land and fallow, but excludes rainfed wheat grown on land held in common. A land suitability map compiled by FAO in the mid 1990s showed that there is about 152,200 ha of suitable and marginally suitable land for irrigation in the Lower Hari Rud. Even the core intensively irrigated area fluctuates widely over time according to rainfall. Comparing FAO estimates for the mid 1990s and PPTA estimates for 2003, intensive irrigation as a proportion of irrigated land in the Western basins had apparently shrunk between 1995 and 2003, from 57% to about 25%, presumably mainly as a result of the severe drought 1998-2003.

PPTA estimates based on NRVA statistics, also from 2003, show that even in intensively irrigated areas in the Western Basins, the on-farm fallow area was 20-35%, and the on-farm area actually irrigated was only 60% of farm area. In the intermittently irrigated areas, on- farm fallow was found to be 50%, and the irrigated area well below 20%. On average in the Lower Hari Rud, the statistics suggest that irrigated land is cultivated about two years out of three, and rainfed land is cultivated about one year in four as rainfall permits. This is a problem with water availability and also the scarcity of crop inputs, which makes fallowing essential to maintain yields. Taking the Jui Nau canal system in the Lower Hari Rud as an example the intensity of cultivation is 80% and the irrigation intensity is only about 60%. This suggests that the vast majority of land suitable for irrigation development in the Lower Hari Rud is already held in farms, and that the search for new land to irrigate should be concentrated on existing farmers fields through increased intensity and reliability. Rehabilitation of existing schemes will lead to a substantial increase in the irrigated area in the Lower Hari Rud where there is potential to increase the irrigation intensity of 50000 hectares from 60% to 100% and a further 20,000 Hectares for rainfed and fallow to regular irrigation. Controlled releases from the Salma Dam could be very important to allow farmers to grow second crops, in particular rice and summer vegetables.

3.2.3 Surface Water in the Hari Rud

The Hydrologist report in Attachment 1 contains detailed assessment of climate and surface water resources and a brief discussion of groundwater resources. The Hydrogeologist report in Attachment 5 contains an overview of potential groundwater resources. Both reports were constrained by the limitations of available data. Climate is characterized by cold winters with snow and rainfall increasing with increasing altitude. Summers are hot and dry with high evaporation rates, frequent winds and high temperatures during June, July and August with no significant rain. Rainfall is mostly in spring.

Surface water is the main source of irrigation water close to rivers and washes. This has peaks in flow corresponding to winter snow melts in spring with resulting flood and also late winter/ early spring rains. The upper reaches of the Valley receive more rainfall and more snow than the lower reaches and are the main water source for irrigation. Flood washes from side valleys are also an important often opportunistic source of irrigation water for spring crops and winter wheat. The mean annual flow of the Hari Rud is more than 1200 million cubic meters. Karezes based on springs are a very old source of irrigation and domestic water and are still locally important, especially closer to the ranges away from other sources of water. Many of these have fallen into disrepair and have been affected by prolonged drought. Domestic water is obtained from various sources and shallow wells are common.

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3.2.4 Potential Impacts of Salma Dam

Construction of Salma Dam commenced before the Soviet invasion and ceased at that time. It has been revised recently and further work is currently underway through the Indian Government and a contractor. The information about the original proposals and design, operating procedures, and potential for irrigation water and electrical power generation is not available and the current contractors and the Government of India are not cooperating in releasing information on current work and approaches. Further information such as the environmental impacts, the resettlement issues and the administration and management of the Dam and water are not known at this stage. Hence there is very little information available to undertake assessments of the impacts of Salma Dam or assess site suitability and construction approaches. The current Minister of Energy and Water has indicated the dam will be used primarily for irrigation and then for energy production. This should be beneficial for irrigation in the lower Hari Rud.

However, Salma is a substantial storage that should benefit water users and downstream communities, depending on how it is managed. For the purposes of this report, the Salma dam is presumed to be going ahead and that its’ operation and storage will benefit irrigation by increasing the length of time water is available for irrigation into the summer and increasing reliability of supply for farmers through controlled releases. How the Salma Dam is managed and within what framework the dam will operated is a serious question that needs to be addressed in the future.

3.2.5 Groundwater in the Hari Rud

Groundwater, especially shallow groundwater accessed by hand dug wells are a major source of both domestic and irrigation water. These are commonly dug within household compounds and used to irrigate fruit and vegetables. A large number of shallow wells have been prepared by the NGO DACCAR and other NGO’s and these are usually less than 50 meters in depth. Shallow groundwater has been shown to be contaminated in the wells investigated by the Hydrogeologist, often well exceeding salt concentrations set by the World Health Organisation (WHO). DACCAR has also reported high levels of contaminants including pathogens. However, in several places in the Lower Hari Rud, evidence from deep wells (about 80 meters or deeper) into the river gravels shows a much cleaner source of water below the clay layer supporting shallow wells. A full assessment of groundwater was not possible due to lack of data and the time needed to establish the data monitor system and collect, collate and analyze exceeds the timeframe of the PPTA.

The future use of groundwater is an issue that requires a change in the regulatory framework for management and conjunctive use that integrate groundwater into the wider water resources management framework. The current regulatory framework is inadequate and confused because groundwater is within the scope of the Ministry of Mines and Industry for scientific and assessment purposes while the Ministry of Energy and Water is meant to monitor and manage use of ground water through a licensing arrangement. This mechanism is not working because the ministries do not have the resources or capacity to effectively implement their mandates. However, groundwater is going to be much more significant in the future development of the Hari Rud valley as population continues to increase and incomes rise. As with surface water and conjunctive use, there is a need for a framework to manage groundwater and integrate the use into the wider water resource management for the Western Basin.

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3.3 The Agricultural Base of the Western Basin

3.3.1 General Description of the Sector

The Western Basin has a history of agriculture and irrigation traditions dating back centuries. Grazing has an equally long history and this region was a major exporter of grain and livestock in the past. In recent years, agricultural production declined with the disruption of conflicts and natural disasters such as drought. The Agriculture and Agricultural Economists Reports (iii & iv) in Attachment 8 provide detailed background to the past and current state of agriculture in the Western Basins.

Agriculture is based on a wheat and opportunistic summer crop/fallow rotation with increasing importance of rice, vegetables and fruits where water is available. While water when needed is a primary constraint, other issues including crop quality, access to markets, transport, post harvest handing and competing imports are also important. The need for subsistence wheat by share croppers and landless people restricts some aspects of production potential particularly irrigation intensity and proportion of the cropping pattern available for higher value cropping. Fodder production is also important from agriculture for winter feeding of livestock.

Grazing and livestock production is a major source of income and store of wealth. This includes flocks of sheep and goats that graze on communal land, migratory Kuchi herds that exploit both communal and wider rangelands and more domestic stock such as cattle close to villages. Drought and conflict has severely reduced stock numbers, especially those of the Kuchi in some areas. Donkey and camel are common beasts of burden.

Horticulture has been in decline due to lack of investment and drought in recent years. Dried fruits such as grapes (green and red raisins) and apricots, and nuts including almond and pistachios are not as important as previously and international competition is also a factor. The disruption of conflict and reduced investment in these longer term crops has seriously reduced volumes and competitiveness. Vegetable production is now increasing close to population centres and new crops such as saffron are slowly emerging.

Agro-processing is limited in type and scope. Household processing including dried fruit, dried yoghurt and animal fats are important while large scale facilities such as the cotton processing and textile mill are defunct. The quality of locally processed products remains low compared to international competition.

Agriculture support services are constrained by the limitations on the provincial departments and it is common for NGOs to provide significant services. Other donors are also involved. Traders tend to be short term in focus and not industry minded. Credit is expensive and limited. Nevertheless, private investors are actively investing in poultry, processing, dairy production and other high value products in the urban area of Herat.

3.3.2 Poppies and Alternative Livelihoods

Although Poppy cultivation in the irrigated areas of lower Hari Rud is not common, expanding the income potential from alternative crops through increasing reliability of water supply is still important to provide an incentive not to cultivate Poppy. The same argument applies to the provision of alternative livelihood opportunities such as small animals, carpet making or similar activities. Income generation is difficult, especially for landless people so alternatives that increase incomes are also helpful and can be seen to reduce inequity.

The expected gross margin of an established fully irrigated mature orchard/vineyard is Afg 140,000 (US$ 2,800) per ha, assuming all produce could be sold. In practice there are high

14 Western Basins Project Final TA Report – July 2005 losses, and it is a social requirement to be generous with produce. In addition to being a valuable asset, the orchard vineyard has considerable social and aesthetic value.

However, the problem with orchard/vineyards is that they have high investment costs. Afg 450,000 per ha is desirable, to include all the costs of security, buildings, land forming, water supply, water storage and root stock. Vineyard/orchards also require five years or more to come to maturity. Security of land tenure and water source is obviously essential. It is an enterprise for the relatively wealthy, and ownership is confined to only about 10% of farm families in the Hari Rud. This type of farmer is unlikely to be drawn to poppy cultivation. He has a sufficiently good cash flow to avoid the need for short term credit through the opium trade, and enough land to generate an adequate turn over. He lives in a prominent place in the community, enjoys status and may be influenced by administrative preferences away from poppy.

The farmer vulnerable to association with the opium production business in Herat Province would be relatively poor, with a very low cash flow, but would have access to sufficient land and water to cultivate staple crops for household consumption, as well as having a jerib or two available for poppy cultivation. The land he farms is likely to be marginal for irrigation because there are no reports of poppy being cultivated widely in the main canal systems and poppy does not require good quality land nor particularly intensive irrigation. The vulnerable farmer would most likely live in the more remote villages at the head of and around the washes, and will be exposed to and susceptible to shocks from drought, floods and erosion which will threaten his livelihood. They are more likely to rely upon the opium credit for food security and farm inputs.

The gross margin of poppy in 2004 was about Afg 112,000 per hectare. Although cultivators would not realise the whole gross margin (interest payments, security costs and risk of destruction) the financial remains high. The vulnerability of such farmers can be reduced with improved reliability of irrigation water, reduction in risk from flooding, erosion and drought, the provision of reasonably priced crop inputs on credit, and micro-finance for alternative livelihood opportunities.

3.3.3 Expected Changes in Income and Population

The population in the Hari Rod basin is expected to increase at a rate of 1.9% per annum from the present minimum estimate of 0.96 million to 1.2 million inhabitants in 2015. Similar growth rates can be expected in the Murghab and Western Bala Murghab basins. Given security, political stability and economic growth, household incomes will also increase3. It can be assumed that regional per capita incomes will increase by 5% per annum in real terms from US$ 148 in 2005 to US$ 240 in 2015, an increase of just 65% in the time period, but still sufficient to lead to a marked change in household diets. The application of elasticity of demand coefficients suggests that food intake will increase by nearly 40% to about 1.45 kg per day. As household incomes increase individuals substitute more palatable, higher value food-stuffs for foods with less appeal. Dairy products, sugar, eggs, meat, vegetables, fruit and nuts show a proportionally larger increase than cereals, beans, pulses and vegetable oils. Higher income groups in urban areas will be particularly instrumental in fuelling these dietary changes, and provide a rapidly expanding market for rural producers.

3.3.4 Impact on Agriculture from Increases in Incomes and Population

In response to increasing incomes and population there will be changes in the present regional cropping pattern. If farmers are to respond to increased regional demand and the price of food, then intensification of land use must occur because both land and water resources are limited in the region. Vegetables, fruit and dairy will become more important in

3 Micro-economic estimates by NRmR, ADB, 2004

15 Western Basins Project Final TA Report – July 2005 cropping patterns than they are now. Farmers will make their own production decisions in response to market opportunities, but Government has to identify constraints and if necessary allocate resources to facilitate change.

The regional demand for food grain is expected to grow from 225,000 tons pa now to about 353,000 tons pa by 2015. About 90% of this will be wheat, the remainder will be rice. About 25% of the incremental 114,000 ton demand for wheat is expected to be in the form of imported wheat flour in urban areas. So the incremental domestic demand from rural families who are too poor or too remote from urban markets (at least 50% of Hari Rod’s 900,000 households) to access imported flour will be about 86,000 tons. Although wheat is not a competitive crop in the Hari Rud, and planners should be aware of its long term decline, there are compelling economic and social arguments for this incremental demand to be met. However, rainfed wheat production in the Hari Rod is unreliable and has a high environmental cost. Only through irrigated agriculture is the productive capacity sufficiently flexible to accommodate the increased demand.

The regional demand for unmilled rice is expected to grow by about 13,000 tons between now and 2015 with incremental summer flow provided by Salma dam. It is expected that the crop will spread from its core area in Obe District into the Lower Valley where it was a relatively widespread crop before the drought. Depending on how far downstream the crop spreads, it may lead to an incremental production of over 7,000 tons, although it may displace irrigated wheat on suitable sites. However to achieve all the required increment of 13,000 tons it will be necessary to increase yields. This is attainable, even though farmers are cultivating broadcast, traditional varieties on permeable soils of only moderate fertility. Domestically produced rice is competitive with imported rice in local markets, particularly as it attracts a quality premium. Rice will be favoured by the majority of farmers over alternative summer crops because of its longer storage life, established local milling facilities and reliable marketing opportunities. It is also a desirable food crop that requires reliable summer water supplies.

The incremental tonnage required for vegetables and potatoes may be as high as 34,000 tons. Increases in the summer water supply will be needed to meet the demand in the whole catchment. Import parity pricing shows that locally produced vegetables are competitive with processed imports, but to achieve full import substitution, substantial local investment will be required to support the potential of vegetable and potato growers to satisfy regional demand.

The incremental annual demand for fruit, dry fruit and nuts by 2015 is estimated to be about 32,000 tons. This represents significant opportunities for local farmers. However, there is expected to be a shortfall in the production of orchard fruit and especially nuts, and additional new planting and yield improvements will be required.

The existing resources of the dairy industry are quite insufficient to meet the substantial wave of domestic demand for milk and dairy products which is expected over the next ten years. The incremental demand for fresh milk and processed milk is expected to rise to 12,400 and 6,000 tons respectively over present demand. Incremental production from rehabilitated areas will satisfy no more than 20% of milk demand. The lack of milk collection facilities in Herat is the main bottleneck to increasing supply, and without dairy infrastructure it is unrealistic to expect a large increase in the dairy herd. Nevertheless, import parity price studies show that locally produced milk and dairy products are very competitive with imported fresh and processed products.

Therefore increases in the quantity and type of food demanded at regional and national level will be the main stimuli to agricultural growth in the Western Basins region, and the priority to satisfy, since failure to meet domestic food needs will certainly lead to increased imports and food aid, increasing inequality in access to the food market, and ultimately insecurity.

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3.4 Social Change

Increasing population, out migration from rural to urban areas, returnees from abroad and other parts of Afghanistan, and the need to diversify incomes as well as the outside influences from wider contact with the outside world are all having an impact on the social fabric of Afghanistan. Commercial centres such as Herat are experiencing substantial growth fuelled in part by money returning from outside and internally generated income such as utilization of donor funds. Farm prices, especially for wheat remain low and where farm size is less than 6 jeribs, those who can work off farm are probably financially better off to do so as there are substantial periods of underemployment. Many landless people have little choice because there is insufficient long term employment in their home village to support their families. This also fuels growth in the urban areas. Returnees and internally displaced people are also settling in urban areas. Some former migratory people have also started to settle more permanently in peri-urban areas and on the periphery of villages, especially those who have lost their main asset base in their livestock.

Existing canals are associated with landowners who are generally considered better off than other villagers. The proportion of landless people can exceed 50% not including the migratory groups. The number of migratory people and their spread throughout the basin is much greater than initially indicated. Similarly, their relationship with both the wider community and the important socio-economic roles they play indicate a more complex social structure and greater interdependence than previously thought. Alternative livelihoods as well as land and resource access are major issues for this group.

The rapidly increasing population from natural growth and from returnees and migrants is placing considerable pressure on all resources. For example many Kuchis are opting to migrate less, establishing permanent settlements. Many of these are also returnees from Iran and have brought skills in areas such as rangeland management that would be useful to utilize if land access and ownership could be arbitrated.

The complexity and diversity of social and economic relationships, among both male and female, settled populations, between sedentary and nomadic communities - are greater than first thought. Attitudes are changing concerning some aspects of traditional Nomadic lifestyles, where there is a growing need to diversify and find more income sources from all communities. Experiences and skills brought back from Iran have altered and continue to alter attitudes which, combined with increased population are forcing people to look for opportunities such as off farm work to survive and make use of the skill sets that are changing in the general population. Women for example, see income generation as a key area for themselves, combined with community awareness raising among the general community to allow women to seek their own employment and income. This has often been forced upon women due to the loss of husbands and family through war and conflict, the very poorest with large families to support. Alternative income generation across the wider community is a major issue as is income distribution and equity.

Hence the importance of community capacity building, agricultural and livelihoods support components, and watershed management, that supports improved sustainable livelihoods for non-canal water users, cannot be overemphasized. Social networks and support systems apparently operate within villages, although they do not address the extent of poverty observed, nor do they provide the poor with the opportunity to find independence and the dignity they seek. Villagers are seeking outside support and can articulate their concerns and issues. They appear willing to participate in an approach based on shared risk and shared profit, which is consistent with Islamic tradition. Raising general awareness within the community of alternatives and addressing bias, in particular male and religious bias towards women will be necessary. Detailed information on social, gender equity and migratory people are the following attachments; Attachment 2, Gender Specialist Report; Attachment 3,

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Indigenous Peoples Specialist Report and Attachment 13, the Social Assessment Specialist Report.

3.5 Traditional Water Management

A strong traditional water management operates in the Hari Rud canal systems. Although variations exist between systems, the mechanism is essentially the same. This consists of an overall canal manager (Wakil), section or village water baliff (Mirabs) and the intake manager (Badwan); they collectively manage the systems on behalf on the users, the landowners and share farmers along the canals. Water allocation is based on a variable system of unit size of land that regulates the size of outlets from the main and sub canals. The system is documented as operating over hundreds of years and is still providing the service today. The system has minimal government intervention and relies upon peer pressure and social conscience for effect. Operations such as canal maintenance and cleaning are managed by the Wakils and Mirabs and in general, it works quite well. The canal is overseen by a hierarchy of water managers all of whom are elected by those who hold title deeds to irrigation water from the canal in question, or their sharecroppers or representatives. Women who own land send a trusted male representative to such community meetings. Landless settlers (e.g. Kuchis) as well as other community members or water users who do not own, or work on, the land, have no say in the mirab elections as the work of the mirab is deemed to be specific to the policing and apportionment of canal water for irrigation. All appointments of wakil, mirab and bandwan, however, have a strong element of community-based participation and a mirab is elected usually because his integrity gives him a moral social standing. All mirab appointments are made without reference to the DEW or other any government agencies. Whilst the DEW claims it has the right of veto of any appointment, it appears not to exercise this power very often. Whilst the mirabs tend to be from the poor, sharecropping classes, the canal wakil is a often a substantial landowner and is selected because of his assumed ability to influence government. Elections for water bailiffs are not held every year but a meeting can be called by a quorum of irrigators if there is discontent with the wakil, mirab and/or bandwan. A detailed study and analysis of the traditional management system is contained in the Mirab and Water User Association Specialist Report in Attachment 7.

Payment for the management services was traditionally set in wheat and changing cropping patterns, in particular the production of more summer crops has implications for the survival and viability of the Mirab system because the managers are not well rewarded for their efforts. Similarly, the system has difficulty coping with changes such as the increasing urban and social interface with canals and how this affects management and payment for Mirabs. The system is in effect a Water Users Association (WUA) by a different name and has shown itself to be both durable and effective. Supporting and enhancing the existing system with activities to address short comings will assist in the improvement of water resource management.

3.6 Longer Term Objective of a Western Basin Authority

It is part of the National policy framework to establish a River Basin Authority to manage the water and other natural resources in the Western Basin within ten years. This is a significant departure from current management approaches and will require considerable changes in approach on many levels from water users/land users through Provincial Departments to national government oversight. Although this approach is currently in planning, pilot projects are already being established to foster the eventual outcome. The Kunduz and Balkh River Projects are working towards River Basin plans in support of the River Basin Approach.

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3.6.1 Support for a River Basin Approach

The Western Basin project can provide support for the eventual development of a River Basin approach through support at local level for different aspects of IWRM and in particular, through capacity building to support the intellectual underpinning and technical skills required to implement and manage a river basin authority. At present, there is very little evidence that the local levels including provincial level have any capacity to support or particular interest in the approach. Other complications including the overlapping of Ministerial and departmental responsibilities have yet to be addressed. The implication of this is that it will take some years to build the capacity (human and physical resources) and the cooperation into a river basin authority. An example is the apparent disconnect between the groundwater management (within the Ministry of Mines and Industry) and surface water management (Ministry of Energy and Water) even though the two are an interconnected single finite resource.

3.6.2 Key Areas to Develop in Support of a Basin Approach

There is a general lack of good quality data about the resources of the western Basin because of the disruption of data collection, destruction of records and general lack of appreciation of the need for good data in decision making. Of particular concern is the lack of knowledge about the groundwater resources of the Hari Rud, despite an ever increasing use of the resource and, a large number of overlapping and at times competing land use patterns along the slopes and rangelands of the Hari Rud contributing to overgrazing, erosion, lost of vegetation and flooding. Whilst these are serious problems that require an integrated approach over the longer term, it is necessary to develop the information base and decision support tools to permit improved management. Groundwater monitoring and modelling, land use pattern mapping, satellite imagery monitoring of vegetation cover and other data can be integrated into a basin wide picture through a data base and expressed through GIS in the form of maps. This requires developing the technical skills of staff and the provision of and/or collection of the appropriate data and data analysis to produce a worthwhile outcome.

Equally as important as the above is the management of the rangelands and wider watershed/catchments that make up the majority of the Western Basin. This is a combination of supporting widespread communities in their use of these areas for their livelihood while encouraging sustainable management to preserve the natural resources for future generations. This involves a range of activities including grazing, fuelwood/combustible material, forest and non forest products and other income and livelihood support activities by different groups throughout the areas. These include settled and migratory peoples, temporary gazers and opportunistic gathers of products such as nuts and mushrooms. Managing such a disparate and complex group is a task that requires overlapping disciplines. The management of rangelands is under the mandate of the MAAHF and MRRD as part of Sub Program 8; Forest and Rangeland Resource Management. Whilst there is considerable overlap with IWRM and the higher level management issues need to be managed concurrently, there are programs being developed and trialled under the Sub Program to address these, including some within the Western Basin. However, the development of the GIS data bases and supporting the training and development of people for the provincial departments is a necessary first step towards the higher level goals of IWRM and Basin management.

3.7 The Western Basin Project Approach

The Western Basins Project approach is to lay the foundations for ongoing improvement in water resources management and support the longer term goal of improved natural resource management. The project has four components that are integral to an IWRM outcome. The components are presented in detail in the next section of this report with a brief overview below.

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3.7.1 Integrated Water Resources Management (IWRM)

A National Policy – “Afghanistan’s Water Sector Policy” is currently being developed. The development of River Basin Authorities is envisaged as the management authority for river basins in the near future. These will sit above the provinces for the management of the basin and include a wide representation from within the basin. Although a Western Basin Authority (WBA) does not exist at this time, the Project will aim to support the establishment of the WBA through developing the GIS and related data bases, Groundwater monitoring and modeling of the Hari Rud, and pilot watershed management programs and provided training and most importantly, capacity building so that skilled people to support the WBA.

Development of a local and national capability with technical support from Kabul and initially outside help will be an ongoing and fundamental requirement to support IWRM. This will require effective stakeholder interaction and strategic planning; resourcing and effective coordination and needs to be built from virtually zero, with cooperation of organizations such as FAO and DACCAR that have technical support programs supporting some aspects of IWRM. Training for local staff in technical aspects of IWRM such as decision support tools (GIS and Groundwater Modelling) will be undertaken concurrently with the investigations and field activities supported by Technical Assistance initially. In the Hari Rod catchment, pilot watershed management programs are currently planned in villages/communities, to be implemented through relevant government agencies and their NGO partners. The approach will follow existing government strategies, including the 2005 Policy & Strategy for the Forest & Rangeland Sub-sectors of the Forest Department (MAAHF) and the National Solidarity Program of the MRRD as appropriate. WBP can support this with GIS input and output where appropriate.

3.7.2 Water Resources and Irrigation Development (WRID)

The Hari Rud has an extensive canal system above and below Herat. The Majority of the canals are below Sari Pul and above Zinda Zan (Lower Hari Rud) where both water and land are available. Above Sari Pul, (Upper Hari Rud) the valley is narrow and the land for irrigation is limited. Around Zinda Zan and below (Lower Hari Rud) land is available but the river is largely flowing in the bed and meandering so water availability is the limiting factor. The Lower Hari Rud increasingly stressed with a low level of surface water in the river and in many cases insufficient water to fill the canals. There are about 70,000 hectares of irrigated land in the Lower Hari Rud watered from about 28 canals of different sizes. Irrigation from Flood Washes using spate flows is also important.

This is primarily a community managed irrigation system with a long tradition of irrigation and management dating back hundreds of years in some cases. Operation and maintenance is largely the responsibility of the system managers. This system operates reasonably effectively except for the engineering and building of major structures and improvements in hydraulic design and operation where both technical skills and financial support are required. Most of the systems require or would benefit from inputs of both technical skill and capital to improve efficiency and make best use of water availability as well as spread the benefits further and more equitably along the canals.

Several sub projects were selected and investigated for rehabilitation and other inputs. These are presented in Component Two as examples of process and procedures to follow towards rehabilitation and further development. Associated efforts in terms of training and support will be provided to the different groups to make best use of the rehabilitation efforts

20 Western Basins Project Final TA Report – July 2005 and the work undertaken will also provide valuable training for Provincial staffs. Work on the sub projects will be undertaken sequentially and concurrently, depending upon the work required and resources available.

3.7.3 Agricultural Livelihoods Support Services (ALSS)

The purpose of the Agricultural Livelihoods Support Services component is to design interventions in the areas for which structural engineering rehabilitation is planned that will stimulate increases in the value of production and in some other areas for non land owners as well. The increases and benefits would not be realized by the intended beneficiaries of rehabilitation with their own resources alone. Rehabilitation works relieve primary constraints that are perceived to affect negatively most people in the target area, such as insufficient irrigation water, poor physical access or land degradation. Agricultural support can be more flexible and targeted, acknowledging that social and economic constraints vary in nature and severity between communities, socio-economic groups, households and individuals. Designing agricultural support therefore requires detailed knowledge of target groups, including specification of household and enterprise budgets, knowledge of access to resources, the decision making process, and social norms. This information is then used to classify the target groups, identify solvable constraints, and design the means of removing, alleviating or avoiding them. This is an iterative process. Different support service strategies have costs and benefits which have to be compared.

Agricultural and Livelihoods Support Services will work though existing support services including MAAHF and support these towards improvements within the target groups. Target groups will be defined by community consultations and interventions planned to address issues that are within the scope of the services that can be assisted by the project. The need for services exceeds the projects resources hence targeting is important and the concentration on project intervention areas, not the wider areas.

3.7.4 Project Management and Capacity Building

Capacity building is both a service to other areas of the project and an integral part of the project outcomes. Capacity building needs to be extensive because there are few Ministry staffs at the local level although there are large numbers of Mirabs, farmers and community members. It may prove difficult to find sufficient staff in all areas to work with and strategies to deal with this will need to be agreed early in the project with the ministry and local administrations. However, farmers and Mirabs will be a vital link in the training process. Improving understanding of broader issues such as water use efficiency, scheduling and equity among this group is necessary to gain understanding of and support for the project. Raising awareness of wider social needs and changing social processes will be undertaken in selected villages to support alternative livelihoods, and the community facilitation process. In all capacity building efforts, the relative roles of men and women in irrigated agriculture will be considered and appropriate support integrated into the project design.

Capacity building will include four levels of training from scholarships overseas to local level short course training supported by materials and resources necessary to achieve worthwhile outcomes. Trained staff can then take an increasing degree of responsibility for implementation as international TA is phase out. Similarly, trained staff can return to the MEW/DEW and/or other ministries or move to support the River Basin Authority or similar body if or when this becomes a reality.

Project Management is also a service to all project areas, providing the managerial and logistic support to ensure implementation is efficient and effective. While different contractors will have different approaches, an overall structure is suggested later in this report.

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4 COMPONENT 1: INTEGRATED WATER RESOURCE MANAGEMENT

4.1 Background

The National Policy – “Afghanistan’s Water Sector Policy” is currently being developed. The WBP will structure its activities to fit within these guidelines and support the policy initiatives by linking activities to support the implementation of policy in the longer term. A key part of this policy will be the focus on Integrated Water Resource Management (IWRM) as the approach to manage water resources. The IWRM policy under development is based on the following principles: • Water Resource Management is to be done in a holistic, integrated and sustainable manner; • The environment is accepted as a water user and stakeholder; • Equitable allocation of water for social, environmental and economic needs; • Water is a public good, no individual or private ownership is allowed; • Political boundaries are set by men, while water boundaries are set by nature; • Internationally shared water resources have to be efficiently managed for the mutual benefits of all countries affected; • Water services will be provided by autonomous and accountable public, private and/or cooperative agencies • Women are key players in water management

The development of River Basin Authorities is envisaged as the management authority for IWRM in river basins in the longer term, based on the natural boundaries of the watershed. These will sit above the provinces for the management of the basin and include a wide representation from within the basin. Although a Western Basin Authority (WBA) does not exist at this time, the Project will aim to support the establishment of the WBA through developing the GIS and related data bases and skilled people to support the WBA. The primary role of the WBA would be towards supporting IWRM principles as part of wider natural resource management, so it will need people at different levels who have the skills and experience to support decision making by the WBA. Although the water resources will be a main focus for the WBA, related issues such as land use, flood control, and rangeland management will also be important in an integrated approach. More specific issues that could relate directly to project activities include land titling and also a resettlement framework for affected communities and individuals where relevant. The WBP can demonstrate and test methods and approaches in support of IWRM as a complement to other project component activities. Capacity building will support the establishment of the WBA in the future in different aspects of IWRM.

4.2 Decision Support Tools

There is a general lack of good data for decision making about the W B in general. Particular deficiencies exist in monitoring climate and surface water flows; groundwater resource status and current use patterns; land use patterns and land use agreements and, an integration of data through a database that will support decision making. The first step towards IWRM is to quantify the above and correct deficiencies and initiate those aspects of training which will require the longest lead-time to achieve proficiency to achieve some sustainability within the system to maintain the database and information gathering. The use of GIS will allow for the integration of the information, the production maps, overlays and incorporation of satellite imagery to establish reference points for the current situation and allow monitoring of change and the impact of changes, either man made or natural.

22 Western Basins Project Final TA Report – July 2005

4.2.1 Climate and Surface Water

Climatic data is incomplete over the last 30 years with, for example, an incomplete data set for Herat city and virtually no data for key locations along the river. Whilst this is a deficiency for the development of this project and PPTA preparation it will be addressed under the National Resource Management (NRM) Subprogram 2: National River Basin Management. As part of this Subprogram, 144 hydrometeorologic stations will be re-established and refurbished and all existing data will be digitized. As this information becomes available, it will be utilized by the project and integrated into the database and GIS output.

Monitoring of surface water will be included in the above subprogram with the rehabilitation of gauging stations, including some on the Hari Rud. Current information is limited to incomplete records of now defunct stations. It is also anticipated that the Salma dam will provide accurate data on releases that will be useful for planning purposes. The Hydrologist report in Attachment 1 outlines available data, deficiencies and recommendations to overcome these. However, WBP will not address these as those will be covered by the subprogram outlined above.

4.2.2 Groundwater Monitoring and Modelling

Groundwater is not monitored at present except for limited surveys of water quality in shallow wells. The accuracy of this information is not independently verified. However, the use of ground water for irrigation and for domestic purposes is increasing and is unregulated. There is an assumption that groundwater is independent of surface water and its use is not restricted. Although the DEW is meant to register and approve wells in conjunction with the MMI, this is not maintained. The NGO DACCAR does have a database that covers shallow wells for domestic purposes though they disclaim any responsibility for the accuracy of this. There many shallow and deep wells that are not registered and about which very little is known. These issues are addressed in detail in the Hydrogeologist Report in Attachment 5. The uncertain status of groundwater as it fits across ministerial jurisdictions is a policy issue that needs to be addressed at national level to consolidate water resources into a single unit.

4.2.2.1 Outline of the Groundwater Monitoring and Modelling Strategy

Design and concepts of the groundwater monitoring network recommended for the wider Hari Rud basin are presented in Appendix A of the Hydrogeologist report in Attachment 5 to this report. Specifications for drilling and construction of observation and monitoring wells are given in Appendix B of the Hydrogeologist Report. Specifications for geophysical exploration, if there will be any, are presented in Appendix C of the Hydrogeologist report. Testing aquifers for yield, hydraulic parameters and connections among different layers is specified in Appendix D of the Hydrogeologist report.

Three categories of observation wells are suggested: deep (“D”), intermediate (“I”), and shallow (“S”) wells. Each well is both an exploration and observation well. Of special importance shall be to describe lithology of formations drilled through and establish a database with all newly acquired information.

Deep wells, a total of eight in number, are designed to penetrate to maximum depths of about 250 m, with an average of 200 m. Their drilling range shall be 150-250 m. Intermediate wells are the ones deeper than 50 m, but they are not drilled to more than 150 m depths. There will be about 60 of intermediate wells and 60 shallow wells to about 50 m deep. If more information on lithology of subsurface within the Hari Rud Basin becomes available, the program as designed above could be made smaller as some existing wells could be included into the network instead of drilling the new ones.

23 Western Basins Project Final TA Report – July 2005

To learn more about hydraulic connections among various permeable layers at the same site, it is suggested to construct a cluster of wells at each monitoring site. That is, if a deep well is drilled at a site, very close to that well shall be one intermediate and one shallow well, each drilled in a separate borehole. Thus each deep well site shall have a cluster of three wells (D, I & S). Each intermediate well shall be accompanied by one shallow well making a cluster of two wells (I, S). This is important to quantify the hydraulic connection, if any, between permeable layers at various depths. The importance of this is great considering existing resistance to deep well exploitation on account of the possibility of endangering the existing water supplies from karezes, springs and shallow wells. The table in Chapter 7 of the Hydrogeologist report contains the possible locations of wells, including additional sites that may not need to be drilled depending on the progress and results from drilling.

The area covered by modelling is essentially downstream from Obe district and can be divided into subunits. However, different modelling approaches exist and this will be left to the project implementation. After one year of monitoring levels and water quality and sufficient information becomes available, one or more mathematical models of the basin should be constructed. It is suggested that for modelling the Visual Modflow software be used. The results of the modelling work, in its future-forecasting phase, should be the basis for recommendations for using the ground water for irrigation. Recommendations contained in the Hydrogeologist report are tentative, based on very limited data and as theoretical models are meant as starting points, not an attempt at a model.

The outcomes of the Groundwater Monitoring and Modelling Strategy will include an established monitoring system and database, a well census of deep wells, trained staff and a groundwater model with recommendations for future management of the groundwater resources and support conjunctive use of water as part of wider river basin management. This will take three years to implement. Costs and detailed monitoring guidelines are including in Appendix 6 of the Hydrogeologist report in Attachment 5 and in cost tables attached to in Appendix J .

4.2.2.2 Groundwater Irrigation Demonstrations

Demonstrations of efficient irrigation for high value crops will be established at selected deep wells to test the potential for expansion of groundwater use in accordance with the recommendations to be developed by the water resources institutions specialist and the findings of the groundwater monitoring and modeling. It is envisaged 6 to 10 of these will be implemented up to a few hectares each. The types of crops will include vegetables, melons, vines, fruits and nuts. The purpose is show how water can be use efficiently and effectively from a very valuable resource. New techniques will be introduced on existing farms such as powered and gravity fed drip systems and small sprinklers. These will use less water than current techniques to produce crops that have a higher value or support higher productivity with less water. Further details are included in the On Farm Irrigation Specialist Report in Attachment 9.

4.2.3 GIS and Database Support

The use of GIS as an integration tool for a variety of spatial information is almost universal. GIS coupled with a good database allows for the storage, collation and publication of layers of information covering individual locations through to very large areas, depending upon the scale. GIS is a decision support tool requiring experience to make use of the information stored and outputs generated. It requires staff trained in field as well as computer based operations. The report of the GIS Specialist, in Attachment 6 of this report, outlines the requirements for GIS support for the project and capacity building required. Currently, DEW and MAAHF have no effective GIS capacity.

24 Western Basins Project Final TA Report – July 2005

The available data for mapping is limited and scattered. Satellite imagery is also limited and compromised by security concerns and cost for high resolution data. Other data such as soils and geological maps, land use and vegetation is also limited or non existent. The PPTA collected and integrated some data and this is included in the reports of specialists and in this report. The data is stored for later use in DEW. A set of maps produced by the PPTA is included in Attachment 15 of this report.

4.2.3.1 Outcomes

The GIS capacity will be increased through counterpart staff training in DEW and MAAHF and further data will be collected and integrated into the existing information base. GIS will support other project activities and the wider IWRM approach. Output in the form of maps and data files will be available for other project activities as well as wider applications in the Western Basin and natural resources sector. . 4.3 Community Based Water Management

A strong traditional water management system operates in the Hari Rud canal systems. This consists of an overall canal manager (Wakil), section or village managers (Mirabs), and the intake manager (Badwan); they collectively manage the systems on behalf of landowners, and share farmers along the canals. Water allocation is based on a variable system that relates the size of outlets from the main and sub canals to land area. The system is documented as operating over hundreds of years and is still providing the service today. The system has minimal government intervention and relies upon peer pressure and social conscience for effect. Operations such as canal maintenance and cleaning are managed by the Wakils and Mirabs and in general, it works quite well. The canal managers are elected by the landowners and all appointments of wakil, mirab and bandwan, have a strong element of community-based participation. A mirab is elected usually because his integrity gives him a respected social standing. This system termed “Community Irrigators Institutions” (CII) in this report, works in a similar manner to a water users group or association. It has a high level of acceptance within the communities and is an excellent foundation for building improved management practices.

This concept also feeds into the Operation and Maintenance of project provided structures though the strengthening of the CIIs that will eventually feed into the higher level basin management structure as outlined in the River Basin Authority chart. The concept is to support the ongoing maintenance of systems and to provide a mechanism for training mirabs and water users towards improved water use practices. Hence the emphasis is to build upon the existing and accepted structure for community water management, introduce more modern and updated procedures and processes using the mirab system as the base for this.

4.3.1 The River Basin Institutional Arrangements

The Structure for the River Basin Authority reflects the position of the mirabs and recognises their role in water management. Figure 4-1 highlights the integrated nature of the institutional structure in support of the IWRM approach incorporating participating provincial departments and a variety of water and land users. This Component is supporting the integrated approach.

25 Western Basins Project Final TA Report – July 2005

MEW Technical Support River Basin •MEW Coordination •Private Consultants Provincial Contracts Development / River Management Advice Committee Basin Authority Basin Provincial •Water Resources Council Representation Departments •Land Resources Tasks, •MAAH Advice •Permits decisions •MRRD Active representation •MMI Information •Health Instructions Advice Permits Sub-Basin Authority Sub-basin Sub-basin Sub-basin Information Council Council Council Instructions Water Users / General Public Executive operator / •Irrigation Schemes service provider: •Water Utilities Mirab Mirab Associations, Jirgas / Shuras, Other •Industries Irr scheme operator WS operator Stakeholder / Community Organizations / •Individuals Hydro-power operator Associations, Supervisory board •Etc.

Figure 4-1: River basin institutional arrangements

Other Institutional Arrangements

Other Institutional Arrangements the WBP can address are the need for a regulatory framework and institutional support for groundwater and surface management and use at the local level and feeding this into the next level. Currently, this is lacking and issues such as conjunctive use of groundwater and surface water, appropriate use of ground water and the regulation of this in a coordinated and sustainable manner are not being addressed. The result is that groundwater exploitation is increasing in a knowledge and regulatory vacuum that will lead to suboptimal outcomes. An institutional specialist will address these issues in conjunction with the groundwater specialist and others on the project to develop a regulatory framework that is in line with national policy and provincial requirements and also support the higher goal of a River Basin Authority.

4.3.2 Outcomes

Supporting the existing system and using this as a basis for the introduction of new ideas and updated methods and procedures will see the management of water at the local level put on a more sustainable footing. Investments in infrastructure will have a definite operation and maintenance framework (O&M) administered through the CIIs. Improvement in water distribution, scheduling and allocations can be introduced through the mirabs resulting in better utilisation of the water resource. This supports the IWRM approach at the local level and feeds into the higher levels of management. At the local level also, a regulatory framework will further support appropriate use of surface and groundwater and support the higher level goal towards IWRM. Costs are presented in Appendix J.

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4.4 Technical Support for Component 1

The technical support for Component 1 is summaries in the following subsections.

4.4.1 International

• Institutional Water Resources Specialist (7 Person Months) • GIS Database Specialist (12 Person Months) • Hydrogeologist (21 Person Months) • Environmental Specialist (12 Person Months)

4.4.2 National

• Professional (324 Person Months) • Technical (336 Person Months) • Support (312 Person Months)

Full details of the technical assistance including terms of reference for the International Positions presented in Appendix D.

27 Western Basins Project Final TA Report – July 2005

5 COMPONENT 2: WATER RESOURCES AND IRRIGATION DEVELOPMENT

5.1 Introduction

One of the principal project objectives of the WBP is the development of water resources for the support of irrigated agriculture. Irrigated agriculture is the principal consumptive water use within the study area, and primary source of agricultural production within the Western Basins. It is also an integral part of the economic well being and prosperity of the local communities. The vast majority of the population is rural based and as such are dependent on agriculture for food security and income.

The core sub projects are focused on the Lower Hari Rud, the principal area of irrigation development (as well as due to issues such as access and security). These sub projects will form the basis of the project investment plan (project years 1 to 4). It is envisaged that subsequent irrigation works will be expanded in both the Lower Hari Rud, as well as in the other 3 sub catchments based in part on spatial distribution of investment and in accordance with works (irrigation system) selection criteria and prioritisation. While the core sub projects are principally focused on irrigation rehabilitation and flood protection, it is recognised that there are other water resources development options that would benefit individual communities and in some cases the wider catchment. These may include construction of small dams, water harvesting, water supply systems and rehabilitation of kareze. The extension of the project investment plan years 5 to 6 should, in addition to irrigation system rehabilitation, include these options.

5.2 Core Sub Project Selection Criteria

The selection of core sub projects for the initial identification of issues, works, costs and benefits was described in the PPTA Inception report (SMEC, 2005a). The initial selection identified 4 potential sub projects; three orientated to the rehabilitation of irrigation systems and one focused on groundwater in the area below Herat city. The three irrigation sub projects were; i) system adjacent to Herat city, ii) system to utilize output of Salma dam, and iii) system(s) at Obe. The criteria for this initial selection was based on; accessibility, security, location and system type. It was recognised that work in the upper catchment would be limited due to the relatively limited irrigation development (due to land constraints) and access (due to weather, logistics and security issues).

The initial selection was subsequently revised with the exclusion of the system to utilize output of Salma dam, and inclusion of a water resource and irrigation sub project based on the Pashdan Wash. Following the ADB mid-term Mission in May, 2005, and the clarification of PPTA requirements, i.e. development of project processes, an additional sub project was added to increase the number of core sub projects and provide representation on the left bank of the Hari Rud.

As outlined above selection criteria for core sub projects have evolved during the PPTA. The final selection criteria for the core sub projects can be summarised as: • Location within the Lower Hari Rud i.e. within the principal zone of irrigation development and within the zone of water and land availability • Spatial distribution of works, both on the left and right banks as well as in the upper and lower reaches of the Lower Hari Rud. • Systems that can demonstrate a range of irrigation and water resource works (flood protection, etc) and associated institutional measures that may subsequently be extrapolated to other irrigation systems within the study area. • Accessibility for project staff from either Herat city or a project office at Obe. • Scale of works is adequate to demonstrate significant benefit(s).

28 Western Basins Project Final TA Report – July 2005

• Institutional and project capacity; works are within the initial institutional and project capacity to implement within project years 1 to 4. • Willingness of the beneficiary community to participate.

Selection criteria for additional sub projects have been developed and are included in Section 5.6. The core sub projects are compliant with these criteria.

Figure 5-1 shows the location of sub projects. The sub projects are: • Sub project 1: Rehabilitation of Jui Nau irrigation system; the system is located on the right bank of the Hari Rud, adjacent to Herat city. It is typical of the larger systems in the Hari Rud in terms of water supply and rehabilitation issues. • Sub project 2: Obe Wash Water Resource Development; the Wash is typical of washes in the area in that it provides an unreliable and at times difficult source of water for intermittent irrigation. • Sub project 3: Sare Pul Irrigation System(s) Development; the irrigation systems are smaller than in the lower catchment, but with more reliable water supplies. However, there are a number of issues related to flood protection and distribution of water (as well as agricultural production). • Sub project 3: Pashdan Wash Water Resource Development; the Wash is both a potential water source and flood threat for local and downstream communities. There is potential to improve irrigation performance and to protect downstream communities. • Sub project 4: Rehabilitation of Yahia Abad Irrigation System; the system is located on the left bank on the Hari Rud, and draws water from the Kawgan River. It is representative of the smaller mid-catchment systems, with relatively high ratio of canal length to irrigated area.

29 Western Basins Project Final TA Report – July 2005

W E

S Sub project 1 Sub project 4 Sub project 2

Kushk Sub project 3

Karukh Qadis Zinda Jan Injil Herat city

Obe #

# #

# Pashtun Zarg

Guzara

Adraskan Sub project 5

Sub project 1 Sub project 2 Sub project 3 Sub project 4 Herat city River and tributaries 20 0 20 40 60 80 Kilometers Districts

Figure 5-1: Sub project locations

30 Western Basins Project Final TA Report – July 2005

5.3 Sub Projects

As indicated above there are five irrigation and water resource development core sub projects. The purpose of these projects is to develop project capacity and to demonstrate key principles in the development of water resources and irrigation rehabilitation within the Lower Hari Rud. As such they will provide the platform for the subsequent extrapolation of the investment of development to other parts of the study area.

The following subsections provide a summary of the core sub projects; description, costs, operation and maintenance (O & M), water availability and benefits. The information presented draws on work presented in the associated working papers, principally from Attachment 9. Note that all costs, capital and O & M, listed in the following sections are exclusive of contingencies, as these are incorporated in the Costab compilation of project costs. Costs are generally quoted in US dollars ($) and in some cases the equivalent in Afghanis (Afg), at an exchange rate of 47 Afg per dollar.

5.3.1 Sub project 1: Rehabilitation of Jui Nau Irrigation System

Sub project 1 is focused on the rehabilitation and development of the Jui Nau irrigation system. The Jui Nau is typical of the larger irrigation systems in the Lower Hari Rud both in terms of water supply and rehabilitation issues. The sub project therefore serves as an example of the type and range of rehabilitation measures required for these systems.

The principal objectives of the sub project are the improvement of: water availability, efficiency of distribution and productivity and returns to water. It is comprised of two principle elements; development of canal infrastructure and associated system management (as described within this component), and secondly the provision of support services (described more generally in Components 3, Section 6).

The Jui Nau encompasses a total area of approximately 7,500 hectares, which includes an area of recent urban expansion to the north of Herat city. The irrigable area based on canal capacity and observation is estimated to be in the order of 5,100 hectares.

5.3.1.1 Canal Inventory

A reconnaissance inventory and preliminary design and costing to support the development of sub project 1 was carried out during March and April 2005. A summary of the inventory and key findings is presented below, while it is described in detail in Attachment 9.

The inventory was carried out in two stages, the first a reconnaissance inventory to identify all structures on the main canal and major branches including canal construction and dimensions, weirs, bifurcations, outlets, siphons, aqueducts, bridges and special sections (UXO’s). The canal was dry for routine cleaning so provided easy access for inspection and measurement. The second stage was the topographical surveying of the main canal from approximately 1.5 km upstream of the intake source (Hari Rud) to approximately to the 20 km mark to establish intake and canal gradients.

A combination of intake canals supply the Jui Nau; a high capacity ‘spring’ canal diverts run- of-river flows during spring and early summer (Apr-May), and when surface flow recedes the intake is switched to a smaller ‘summer’ canal drawing on flow from trenches or bunds into the mid-river bed to capture remaining surface flows and subsurface flows. The spring canal provides high flow at the start of the irrigation season, while the summer canal provides a more sustained but lower flow in the latter half of the season.

Figure 5-2 shows the location of the main canal key features identified during the inventory. The main features, in addition to the above intake canals are location of main canal, position

31 Western Basins Project Final TA Report – July 2005 of major bifurcations (weir and flow dividers), siphon and aquaduct crossings of the right and left branches of the Pashdan Wash respectively, bridges, and a section of canal (passing through a military camp) on which unexploded ordinance was identified in the canal and along the banks.

The key findings of the inventory are: • The main canal is approximately 32 kilometres in length. The canal intakes are from the Hari Rud, near the village of Sar-i-Hasan Khwaja. Apart from a number of short sections of stone masonry wall (for flood protection of downstream property) the canal is constructed of earth banks and fill, mostly derived in situ and from canal de-silting. Both condition and dimension vary widely, in place banks are well formed and consolidated and in others are poorly compacted and slumping. Some sections, particularly those passing through urban areas are polluted with rubbish and waste from adjacent communities. • There are a total 101 discharge points along the main canal of which 45 occur at 17 major bifurcations. Based on discharge capacity the major bifurcations are estimated to account for nearly 70% of total discharges. The minor discharges are incorporated in stone masonry wall sections. Generally the condition of discharge points, and in particular major bifurcations, is poor, with need for rehabilitation of structures and improvement of structure design. In some cases the downstream sections and adjacent banks are undercut and eroded. • An inverted siphon crosses the right branch of the Pashdan Wash at approximately the 2 km mark. The structure was constructed by DACAAR about 10 years ago, and generally appears to be in good repair, though it can not be accessed for de-silting. • An aquaduct crosses the right branch of the Pashdan Wash at approximately the 8.6 km mark. The structure is reported to be more than 40 years old. There are a number of obvious problems with the structure, the most serious of which is the partial collapse of the support abutments due to erosion and undercutting by the wash. • Flood protection structures have been constructed (approximately 800m) along the right branch of the Pashdan Wash. These structures are, in addition to protecting farm land, also provided protection for sections of the main canal. However, there are several sections of the canal (both adjacent to the Pashdan Wash and other smaller washes) that are in danger of collapse. • There are 84 bridges across the main canal and which vary widely in dimension, construction, materials and condition. The bridges range from simple timber planks to reinforced concrete structures. While the bridges are important for foot and vehicle access, many are sub-standard and are negatively impacting (due to width and height restrictions) canal performance. • A flood spillway, comprised of two adjacent structures, one gated and the other earth filled is located at Rakhna Jamsedi. The spillway is opened as an emergency release to the adjacent wash (this was recently witnessed). • A number of other structures were identified along and across the canal which impact on system performance and maintenance including; 40 foot shipping containers (3) (used as bridges), drains discharging into the canal (particularly in urban areas), pipe crossings, and siphons (for kareze and irrigation). • There are a number of points along the canal for access for non-irrigation water outtakes for domestic and livestock. Rehabilitation works will need to take into consideration the need to maintain community access for such use. • The gradient of the main canal between intake (Hari Rud) and Rakhna Jamsedi (17 km) is approximately 0.001 m/m.

32 Western Basins Project Final TA Report – July 2005

W E

³# Minor Offtakes %a%a#%a%a#%a#%a³#%a##%a%a #%a%a#%a%a%a%a%a%a ³# ³#³#%a %a³#%a##%a%a%a³## ³# ³# Bridges %a # # # ## # UXOs # # # # %a #%a## ³## #%a%a%a #%a%a %a %a Y# # Y#

Y# Major Bifurcations

Y# Urban Development %a³##

Y# ³# Y# Y# # # Y# # Y %a# Y# # Aquaduct Y# #³ Y# ³#% %a Flood Protection %a Y# %a ³##%a #%a%a Y# %a Y# ³## Siphon # # ³# %a Y# %a%a # Spring intake # % Y %a ³ Major outlets ## %a%a# %a#%a %%a# %a%a %a%a%a %a# Y# # Outlet Y# % Aquaduct % Siphon Summer intake %a Bridges Spring canal Summer intake Y# Villages Jui Nau canal Upper Section Mid Section Lower Section Herat city 20246810Kilometers New urban growth Pashdan Wash Hari Rud

Figure 5-2: Sub project 1

33 Western Basins Project Final TA Report – July 2005

5.3.1.2 Key rehabilitation and development issues

As identified during the inventory and in discussion with the system managers (wakil and mirabs) and Department of Energy and Water there are a range of issues related to the improving system performance and reduction of operation and maintenance costs. In summary these are: • Water availability and reliability is constrained in the second half of the irrigation season i.e. after the recession of surface flows in late May to June. There is a need and potential for improved water supply from shallow groundwater within and adjacent to the Hari Rud by enhancement of the current of supply to the ‘summer’ canal. • Water distribution efficiency is limited on the main and major branch canals due to: canal alignment, constrictions in canal width (due to bridges, bank slumping), sections of high drainage losses (adjacent to washes) and need for repairs to major bifurcations. • System maintenance is currently constrained by bank height and stability (from previous de-silting, with some bank sections up to 5 metres above the canal bed). The accumulation of silt along the bank has also resulted in slumping of the bank and restricts access to both the canal and adjacent tracks and roads. There is a need to contour the banks and remove soil off-site, construct retaining walls and stabilize banks with riparian plantings. • The existing aquaduct is in urgent need of repair. Failure of the structure would have a severe impact on irrigation supply to approximately 50% of the irrigated area. • Sections of the canal are being eroded by adjacent washes and are in danger of collapse. Flood protection structures and riparian plantings are required to ensure continued operation. • Urban development north of Herat is encroaching on the canal, creating problems for maintenance and operation (impacting on performance both in terms of water conveyance and flooding from the canal). • There are currently no permanent control gates on the canal. This severely limits the ability to regulate flows and to isolate the canal (or sections) during flood events or major breaches (and consequent downstream flooding). • Erosion of the river bank upstream of the ‘spring’ canal is leading to loss of irrigated land adjacent to the main canal.

5.3.1.3 Proposed Rehabilitation Works

The inventory provided the basis for identification of potential works to improve water availability, distribution and system operation and maintenance. Workshops were held with both DEW personnel and system managers (wakil and mirabs) to gauge the technical and operational acceptability of proposed works. The response of both groups was encouraging and supportive, and confirmed the selection of proposed works. The workshops also highlighted the need to design the project to incorporate the community participation in the planning, construction and on-going system repairs and maintenance (beyond those activities currently undertaken).

The proposed works include construction and/or repair of the following: • Subsurface intake gallery(s) to improve water supply to the summer supply canal • Flood protection (bank and gabion) up and downstream of the current intake canals • Control gates (3-4) and associated spillways at strategic locations (3 locations have been identified the community has also requested the inclusion of a 4th gate). • Main canal rehabilitation; realignment, construction of retaining walls, construction of impervious canal floors (selected high loss sections), bank contouring (soil removal) and riparian plantings of selected sections of the main canal (approximately 3 km) • Urban canal and flood protection structures (3 km section) (i.e. stone masonry walls and floors, widening of bridges (or replacement), contouring of canal banks)

34 Western Basins Project Final TA Report – July 2005

• Aqueduct across the Pashdan Wash • Flood protection along washes encroaching on canal sections • Major bifurcations (15) and associated drop structures • Siphon modification to enable de-silting and maintenance • Branch canals and associated structures • Foot and road bridges ( this may include new bridges and/or removal of illegal bridges)

A provisional design for the above works was based on criteria of system flow rates (canal dimensions and gradient), water availability (from flow records and assumed hydraulic conductivities), and water distribution (based on discharge location and rates) as presented in Attachment 9.

5.3.1.4 Capital costs

Table 5-1 presents a summary of the rehabilitation works and associated capital costs. The total of works is just over $1.8 million of which approximately $1.2 million are for irrigation structures (i.e. structures directly associated with the canal performance). This is equivalent to approximately two thirds of total costs. The balance is flood protection and bridges, and while not directly contributing to system performance (though it can be argued that failure to adequately protect productive land or canal structures impacts on overall system performance) are an essential part of maintaining the overall irrigation benefits. This mix of direct irrigation works (2/3rd) to other works for flood protection and access (1/3rd) is probably a reasonable representation of the required mix of works required on ‘Jui Nau’ type canals within the Lower Hari Rud.

Table 5-1: Sub project 1 capital costs No. Proposed Works No Units Cost $ 1 Intake gallery(s) 600 m 177,675 2 Control gate(s) 3 no 69,959 3 Flood protection structures 1,600 m 372,300 4 Siphon rehab 1 no 10,000 5 Main canal rehab 3500 m 404,533 6 Branch canal rehab 13,600 m 408,000 7 Aquaduct reconstruction 1 no 81,362 8 Flood control rehab 1 no 50,000 9 Bifurcation Rehab 15 no 38,770 10 Minor Outlets 28 no 22,400 11 Bridges 28 no 180,000 Total 1,814,999

The costs form the basis for the evaluation of cost: benefit analysis presented in other parts of the report.

5.3.1.5 Maintenance costs

Currently system maintenance, apart from emergency repairs of major canal breaches, is entirely carried out by the community under the organisation and direction of the system

35 Western Basins Project Final TA Report – July 2005 managers. This is largely orientated to maintaining spring and summer intake canals, and de-silting of the main canal in early spring (late March – early April).

Both activities were witnessed during the canal inventory, and provided an opportunity to verify the order of works, labour requirements and costs. The works as currently carried out almost excessively by manual labour. As indicated in Attachment 9, main canal de-silting required an input of approximately 25,000 man days, and is estimated to have moved approximately 90,000 cubic metres of silt. The cost of the operation based on the equivalent daily labour rates would be in the order of $50,000, which based on an irrigable area of 5,100 hectares is the equivalent of nearly $10 per hectare or $2 per jerib.

The proposed works include rehabilitation of selected sections of the main canal and major branch canals. This work includes the contouring and stabilisation of the canal banks, removal of excess soil and riparian plantings. It will improve canal performance and reduce de-silting costs by reducing the need to double handle spoil. In addition it is intended to strengthen the ability of the system managers and the community to more effectively carry out routine canal maintenance, with the provision of resources (equipment and financial), in addition to other capacity building measures as discussed in Component 1. The latter measure will increase the ability to carry out not only normal de-silting activities but also to take on a broader range of maintenance works at a lower cost.

Annual maintenance costs vary between years, dependent on the type of structure and maintenance requirements as discussed in Attachment 9. Analysis of the additional (incremental) maintenance costs (i.e. those costs above existing intake and de-silting works) over a twenty year period, show that costs on the proposed new irrigation infrastructure averages $11,247 per year. This is the equivalent of $2.21 per irrigable hectare, which is about a 20% increase on current de-silting costs ($10/ha).

It should be noted that the analysis of maintenance costs does not include allowance for depreciation of works, based on the assumption that the longevity of the works (if adequately) maintained will exceed 20 years or costs associated with improved water management. The above costs are integrated into the analysis of MO&M in Section 5.4.4.6

5.3.1.6 Water availability

The proposed works are expected to improve water availability to the systems through increasing summer water flows (via the intake gallery) and improving conveyance and distribution efficiency. Figure 5-3 shows the comparison in water availability with and without the project as cumulative monthly supply (Mm3/mth). While there is a small increase in supply during the late spring (April – early May), the principal benefit occurs during the mid to late summer, a period when supply is usually constrained by receding surface water flows in the Hari Rud.

36 Western Basins Project Final TA Report – July 2005

14 With

) 12 Without

Water availability (Mm3/mthWater availability 2

0 Mar Apr May Jun Jul Aug Sep

Figure 5-3: Sub project 1 water availability with and without project

5.3.1.7 Benefit summary

The Jui Nau total command area is approximately 7,500 ha. At present, the land in farms is 5,100 ha and the cropping intensity is 80%. Herat City and the Military Cantonment occupy over 30% of the command. The irrigated area is only about 3,000 ha in a favourable year. Constraints to extracting water at the Jui Nau intake and distributing it down the system mean that without-project, only about 50% of the cultivable area can be irrigated at present. This area varies each year according to rainfall, the volume of flow in the Hari Rud, and the condition of the canal system.

The implications of the expected continued expansion of Herat City are important to the proposed project. On the one hand there will be a steady loss of cultivable land to urban use. The benefit calculations assume that about 800 ha will be lost in the next ten years. On the other hand, Herat offers important marketing opportunities to Jui Nau farmers which are likely to grow and diversify in the immediate future.

There are about 7,000 “rural” families in the non-urban parts of the command area, or 27% of the population of Injul District, and the area in farms is 5,210 ha. Land ownership is heavily skewed, with about 15% of families classified as the “medium” wealth group (wealth group classification follows NRVA 2003) farming nearly 40% of the area in small farms of about 2 ha in size. Another 40% of the farmed area is held in very small holdings of less than 1 ha by “poor” and “very poor” families. Landlords let out the remaining 20% for sharecropping to poor, very poor and landless families. Landless families number over 3,000.

The present cropping pattern is dominated by winter wheat and spring wheat (nearly 70%) of which at least 70% is irrigated. Wheat is the staple food crop and is required by poor, very poor and landless sharecroppers for home consumption. Only medium wealth group farmers are demonstrably in wheat surplus. Of the remainder of the cropped area, feed and fodder occupies 10%, orchards and vineyards 10%, and vegetables, cotton, and maize the remainder. Orchards and vineyards are mainly a feature of medium wealth group farms. One or two dairy cattle per household may be owned by medium wealth group families, particularly near the head of the system where the animals can graze throughout the year on

37 Western Basins Project Final TA Report – July 2005 the Hari Rud flood plain. Small herds of sheep and goats (20 animals per household are usual) are owned by some farmers, the numbers of which tend to increase in the relatively drier middle and tail sections, closer to hill grazing.

With-rehabilitation (but excluding investment in agricultural support services) there can be only limited changes to the existing cropping pattern. Small farm size, insecure land tenure, food insecurity at household level, low income and weak capital assets of the vast majority of rural families in the Jui Nau command impose real constraints on diversifying and increasing the value of crop and livestock production in the command as a whole. Farmers cannot reliably crop without irrigation, water supply is limited by the capacity of the canal system and most families are deficit wheat producers. This means that irrigation intensity is virtually 100% in May and dominated by wheat. To increase substantially the proportion of higher value perennial crops (alfalfa, orchards and vineyards) means that the wheat area so critical to poorer households would have to be commensurately reduced. So the expansion of perennial high value crops can only take place on medium wealth group farms (30% of the command area). Poorer wealth groups and sharecroppers need to grow wheat for home consumption, and do not have a large enough farm size, security of tenure or the capital for higher value cropping. With-project the incremental area of orchards and vineyards is only about 160 ha, though it may be more depending on the numbers of “poor” farmers on the margin of the “medium” wealth group. The area of alfalfa will increase only in proportion to the increase of dairy cows. Without agricultural support services to widen dairy cow ownership the increment will also be confined to medium wealth group farms. An increase of only about 100 ha has been modelled, sufficient to support increased milk yields through better rations in the small dairy herd existing, and medium term increases which are constrained by the herd’s low reproductive capacity.

With both rehabilitation and the impact of agricultural support services (described under Component 3) there are expected to be improvements in on-farm allocation of water and allocation between the canal reaches, additional and reasonably priced crop inputs available to farmers, improvements in the quality and management of orchards, vineyards and the dairy herd, and in the handling, storage and processing of horticultural and dairy products. Additionally, a significant proportion of landless families will share in the direct benefits of rehabilitation through alternative livelihood support in bee-keeping, sericulture, improved poultry production and access to stall-fed dairy cattle. As a result wheat production will be intensified, allowing expansion of the perennial crop area and feed crops. The value of the cropping pattern will be increased by promoting second cropping after wheat, which will be an equitable opportunity for land and capital poor farmers. A maximum incremental area of 630 ha of second crops would use all the extra water available with-project in the period June to October after the demands of existing and assumed future incremental perennial crops has been satisfied. On poorer wealth group farms this area could not be planted before late June without displacing wheat. There may be agronomic difficulties as a result, because ETo is exceptionally high at this time.

Equity remains a significant concern in the preparation of all the sub-projects, but the provision of agricultural support services will improve the distribution of direct benefits. With rehabilitation alone, 55% of direct scheme benefits are captured by the medium wealth group category, though obviously there will be “trickle down” effects from incremental farm labour hired, and incremental services purchased from other wealth groups. A much greater proportion of benefits are captured by the poorer wealth groups in the tail, but this area is expected to gain only 8% of incremental scheme benefits. However, the planned support services will provide the means to both increase wheat yields and extend access to higher value cropping pattern to poorer wealth groups. Not only will benefits expand by nearly 30% over and above benefits from rehabilitation alone, but the share of poorer wealth groups in total benefits will increase from 45% to nearly 60%. This is not including the benefits expected from alternative livelihood activities.

38 Western Basins Project Final TA Report – July 2005

The use of incremental water resources will also be improved by the combination of civil works for rehabilitation and agricultural support services, as shown by Figure 5-4. At present the irrigation requirement at field level (total supply less canal losses) of the existing cropping pattern exceeds supply, resulting in yield losses. The expected future with project cropping pattern not only uses all the incremental peak supply, but also a substantial proportion of early summer deliveries, because of the increase in second cropping.

14.00

12.00

10.00

3 8.00

6.00 million m million

4.00

2.00

0.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 30 day periods and approximate months

Present demand Present supply With rehab supply demand with rehab+ASS

Figure 5-4: Field delivery for full irrigation supply: present and future demand and supply

In addition to increased water supply at field level, the benefit of improved groundwater recharge with-project is likely to be significant for shallow well owners, orchard and vineyard owners and alfalfa growers. As shown in Figure 5-4, it seems likely that with-project groundwater recharge will increase in March-April. Farmers are likely to capture these benefits by sinking more shallow wells and planting more trees. In favourable locations capillary rise will supplement irrigation for deep rooted field crops such as alfalfa.

An analysis of farm labour requirements without and with-project suggests that present field operations and on-farm post-harvesting activities occupy only about 18% of the available time of the rural working population in the Jui Nau command. Given the importance of alternative livelihoods and under-employment this estimate is believable. With-project the farm labour requirement is expected to increase by 170%, adding more than 90 days of farm employment per family per annum. In addition, about half of landless families in the area are expected to benefit from micro-finance, which should generate an additional two weeks work per family per annum.

A financial and economic cost: benefit analysis has been carried out for the Jui Nau scheme. This is reported elsewhere. It is sufficient to say here that the returns to the proposed investment in rehabilitation are positive (EIRR=19%) and the provision of agricultural support services makes a positive contribution both to the internal rate of return and the net present value of the project. Further details on the benefit estimation for this scheme can be found in the PPTA working paper Estimate of Benefits From the Rehabilitation of Jui Nau Canal, Injul District, July 2005.

39 Western Basins Project Final TA Report – July 2005

5.3.2 Sub Project 2: Obe Wash Water Resource Development

The sub project is based on the development of water resources of the Obe Wash to support irrigated agriculture. The Wash is located on the right bank of the upper reach of the Lower Hari Rud, as indicated in Figure 5-5. It currently supports intermittently irrigated areas on both the right and left banks, above the more intensively irrigated areas around Obe (Jui Quandaran, Jui Bala and Jui Bazaar).

The Wash is fairly extensive over a 7 kilometre reach where it crosses the terrace between the upper catchment and the Hari Rud. While it provides a water source for irrigation, it also creates a number of problems for the adjacent and downstream communities, particularly those adjoining its lower reach, with flooding and bank erosion.

As mentioned above the Wash provides a water source for irrigation, though this is difficult to reliably harvest due to continually changing channels. As indicated by the status of recipient irrigation systems, it is also a relatively unreliable source (by comparison with the more intensive irrigation from the Hari Rud). However, it is anticipated there are substantial subsurface flows within and adjacent to the Wash that could be harvested to support a more intensive irrigation regime.

5.3.2.1 Sub project concept and works

The sub project concept is to improve the water supply from the Wash to support more intensive irrigation on two existing irrigation systems on the right bank (Jui Merza and Jui Moghol) as shown in Figure 5-5. As such it will provide an example of the potential to improve the water resource potential from Washes in general, and how this water can be utilized to increase productivity and returns. There are a large number of Washes of varying size along the Hari Rud, (and presumably the Bala Murghab and Kuskh wa Kashan Rud), which could be more intensively developed.

There is also a number flood protection issues associated with the Obe Wash and washes in general. In this case flood protection elements for the Obe Wash are included in sub project 3 (Sare Pul), within the area most directly impacted (adjacent to intensively irrigated agriculture).

The current combined command area of the two canals (Jui Merza and Jui Moghol) is approximately 1,000 hectares. It is anticipated with the development of an improved water supply and more efficient distribution that this may be expanded (at the tail end) by an additional 300 hectares. However for the purposes of this study the irrigable area is assumed to be 800 hectares that is 80% of the current command area.

The key elements of the sub project are shown in Figure 5-5. These include construction of the following: • Sub surface intake gallery and associated structures on the right bank of the Wash to increase water supply • Main canal connecting the intake gallery to Jui Merza and Jui Moghol along the right bank (earth canal of 3 km length) • Control structures and spillways at the intake to Jui Merza and Jui Moghol (2) • Rehabilitation and realignment of both Jui Merza and Jui Moghol (total length of 15 km) • Bifurcation structures (20) along the existing canals for distribution to branch canals. • Secondary earth canals (total length 8 km) • Drop structures and turns (50)

40 Western Basins Project Final TA Report – July 2005

Figure 5-5: Sub project 2

41 Western Basins Project Final TA Report – July 2005

5.3.2.2 Capital cost

Table 5-2 presents a summary of capital costs for Sub Project 2 (detailed costs are listed in Attachment 9). Total cost is estimated at $571,165 of which about 40% is for the development of the intake, control gates and main canal. The balance of the investment is in rehabilitation of the existing earth canals, and construction of new bifurcations, branch canals and branch canal structures. The unit area cost is the equivalent of $712 per irrigable hectare.

Table 5-2: Sub project 2 capital costs Summary of Works Quantity Unit Cost Intake gallery 200 m 134,030 Main canal (earth) 3,000 m 71,835 Control gate & spillway 1 m 10,000 Other structures 20,000 Subtotal 235,865 Canal rehab Jui Merza rehab 8,000 m 85,000 Jui Moghol rehab 7,000 m 105,000 Bifurcations 20 no 20,000 Branch canals 8,000 m 72,800 Branch canal structures 50 no 12,500 Road bridge 4 no 40,000 Subtotal 335,300

Total 571,165

5.3.2.3 Maintenance costs

As presented in Attachment 9 the maintenance costs over the project implementation period for the above structures is estimated to be in the order of $34,000. However analysis based over a twenty year period shows an average annual cost of $11,625/y. The cost per unit irrigable area is the equivalent of $14 per hectare, which is relatively high compared to sub project 1. The higher costs are in part a result of additional de-silting costs for the intake gallery and section of new main canal.

The existing de-silting costs (assuming annual cleaning) are estimated to be the equivalent of $10 per hectare ($2/jerib). While the improvements will increase total water supply and therefore greater silting, the additional de-silting costs are expected to be off-set in full or substantially reduced by improved canal design and performance.

The increases in maintenance costs need to be considered in the context of the increase in returns and the improved ability of the community to both pay (in-kind and/or cash) to service the additional costs, as discussed Section 5.4.

The above costs are integrated into the analysis of MO&M in Section 5.4.4.6

42 Western Basins Project Final TA Report – July 2005

5.3.2.4 Water availability

There are no flow records available for the Obe Wash, and therefore it is difficult to accurately determine water availability and flood frequency. In the absence of such records, a first order estimate of water availability can be determined from the extent of the irrigated area supplied from Obe Wash, and by comparison with data for the Karokh and Kawgan Rivers, as discussed in Attachment 9.

Qualitative analysis based on intermittently irrigated areas (left and right bank) indicates that the peak take rate from the Wash is in the order of 3 to 4 cumecs. Most of this water is taken by diversion of surface flows, with manual training of the flow channels into canal intakes. The flow records for the Karokh River, which is a significantly larger catchment than the Obe Wash, show that surface water flows are relatively unreliable between years, and of shorter duration than the Hari Rud (due in part to the lower attitude and smaller catchment area). This is further supported by the observed lower intensity of irrigation practiced along the Wash.

In addition to surface water flows, there are likely to be substantial subsurface flows within the Wash alluvium, particularly where the Wash emerges from the confines of the upper catchment. This flow is likely to be of much longer duration than surface flows and as such represents a potential resource which could increase water availability and extend the period of water supply into the mid summer period (Jun-Jul).

The key issue for the development of water resources from washes is to improve availability and reliability of water supply (in addition to flood protection). This can be achieved in part from improved channel training, with the availability of earthmoving equipment as proposed for the irrigation organisation (CIIs), and in part by harvesting of subsurface flows within the alluvium. The challenge is to develop a sustainable technique for abstraction of the subsurface water. Some kareze effectively achieve this with the construction of subsurface galleries. There are also other examples within the region such as qanat in Iran and falaj in Oman. What is proposed in this case is the installation of an intake gallery along the right bank adjacent to the main wash, with branches into the wash itself, as shown in Figure 5-5. The gallery is intended to improve both total water supply, particularly mid to late summer supply, and thus increase irrigation water availability and reliability.

5.3.2.5 Summary of benefits

The approach used to estimate benefits from wash rehabilitation has been described under the summary benefit description of Pashdan Wash.

Obe Wash is an active, medium sized Wash to the east of Obe town. About 80% of the Wash is unsuitable for cultivation. Following the USBR classification and mapping the remainder is marginally suitable. There are both semi- permanent canals (the Mirza and the Moghul) and opportunistic canals taken from the Wash, as well as two or three large karezes. About 800 irrigable ha are in command but only one or two hundred ha can be irrigated in any one year because of low river flows in the Wash. The catchment is much smaller and steeper than that of the Pashdan Wash. The karezes deliver only small volumes, and at least one is private.

Land marginally suitable for irrigation was divided into five land types: • Irrigable with no risk from floods or erosion (72%) • Irrigable with flood risk (6%) • Irrigable with erosion risk (13%) • Village area with flood risk (0%) • Village area with erosion risk (9%)

43 Western Basins Project Final TA Report – July 2005

Compared with Pashdan Wash, erosion is a greater risk than flooding. In line with the steeper slopes and smaller catchment, Obe Wash is more aggressive. However, cropping patterns are similar, though very much smaller in extent. The cropped area on Obe Wash is about 200 ha of wheat in a year of average rainfall, increasing to about 350 ha in a wetter year. Settled land accounts for a large proportion of Obe Wash area; 10% in contrast to only 3% on the Pashdan Wash.

The APL over the irrigable area of 800 ha is about Afg 5,000 per ha in a 1:5 flood event, and in a 1:10 event Afg 10,000 per ha. This is a very high level of loss, attributed to damages to the large settled area at the foot of the Wash. Only 30% of losses are due to damaged or lost crops, and 25% is due to damage to houses and infrastructure. The remaining 45% is due to the permanent loss of eroded irrigable land. The annual probability of return (APR) from crops which are successfully harvested is about Afg 2,300 per irrigable ha in a year of average rainfall, rising to Afg 3,000 per ha in a wet year.

With-project the cropping intensity on all land types would be as great as available water would allow, but has been assumed as no more than 60% or 470 ha. This figure needs to be revised at the planning stage when incremental water delivery can be estimated. The project costs are estimated as about US$ 715 per irrigable hectare, plus O&M at US$ 23 per hectare. The net benefit stream gives a financial IRR of about 17% and a financial NPV of Afg 9.3 million, this excluding adjustments made on costs for contingencies and project management overheads. The comments on the accuracy of the estimate made for Pashdan Wash apply equally or more so to Obe Wash. The fact that the Wash is smaller and more erosive implies that damages will be more point specific, and the margin for error in these rough estimates is high. Nevertheless, the level of the financial return to the proposed investment is appears to be adequate.

44 Western Basins Project Final TA Report – July 2005

5.3.3 Sub Project 3: Rehabilitation of Sare Pul Irrigation Systems

As discussed in Attachment 9 a number of options were investigated for the development of a sub project in the Sare Pul-Obe area. These options initially hinged on the construction of a weir just upstream of the existing suspension bridge. The purpose of the weir was to lift water to an elevation sufficient to supply water to new canals on both the right and left banks of the Hari Rud for distribution to existing downstream irrigation systems (intensively and intermittently) over a 30 kilometre reach of the river. The supply options were subsequently extended to include alternative on-river intakes (as a lower cost alternative to a weir) further upstream.

The concept of a weir is attractive in terms of improving the reliability of water supply to downstream irrigation systems, and the potential to expand intensive irrigation on the right bank (above Obe). However, there are a number of technical and cost constraints to the construction of a relatively large weir (crest height of 10 metres) and proposed canals (due to sections of difficult terrain as discussed in Attachment 9). There are also a number of important institutional and local communities constraints to the concept, not least amongst these the need for communities (which in many case have competed for access to water) to cooperate in water distribution and contribute to on-going operation and maintenance of relatively large and long sections of new canal (along with the associated increase in costs). There are also serious concerns about the local institutional capacity to operate and maintain a large on-river structure in the longer term.

After consideration of the above points and concerns it was deemed more suitable to scale back the concept for the core sub project to a more modest approach based on the improvement of the existing canals on the right bank. It was recommended that the construction of a weir or upstream intakes be included in the extension of sub project works (irrigation rehabilitation and water resource development) in project years 4 to 7.

The improvement of intermittently irrigated canals above Obe (Jui Merza and Jui Moghol) was formulated as a separate sub project (2) based on improvement of water supply from the Obe Wash as presented in the previous section.

As outlined below the flows in the Sare Pul – Obe reach of the Hari Rud are relatively reliable (compared to further downstream) in the mid summer period but there are a number of constraints on the ability of irrigation systems to harvest and efficiently distribute this water to support second cropping. The purpose of the sub project is therefore to further improve water supply by protection of intake structures and rehabilitation of main and branch canal structures to improve efficiency of water distribution.

5.3.3.1 Inventory

A number of field visits were carried out in the sub project area during the PPTA. The purposes of which were to meet mirabs, inventory the principal canals and structures and to identify the range of works requiring rehabilitation works (as discussed in Attachment 9).

Key findings and issues identified from this work were: • A total of 8 mirabs manage the systems; Jui Quandaran 4, Jui Bala 2, Jui Bazaar 1, Nab Shinga 1 and Nab Killy 1. There is no wakil for the systems, due to their relatively small size. • Water distribution down the canals is constrained by the poor state of bifurcation structures, with excess loss of water in the upper canal sections • The existing siphon across the Obe Wash on Jui Quandaran needs to be extended by approximately 100 metres • There is an urgent need for flood protection along canal sections (mostly on Jui Bala) adjacent to the Hari Rud. Approximately 300 linear metres of protection is required.

45 Western Basins Project Final TA Report – July 2005

• There is an urgent need for flood protection along the right bank of the Obe Wash, to protect Jui Quandaran and downstream structures and property. • There is a need for control gates and spillways to regulate canal flows on the three larger canals. • A broader community issue in the area is the need to replace the existing suspension bridge across the Hari Rud. The existing structure is poorly constructed and unsafe. The nearest crossing point is more than 20 km further upstream with only a rudimentary road/track to the bridge.

5.3.3.2 Sub project description

The purpose of the sub project is to improve the performance of a group of irrigation systems on the right bank of the Hari Rud in the proximity of Obe. As shown in Figure 5-6, it encompasses a group of five adjacent canals, which bound a 19 kilometre stretch of the river. As indicated in Figure 5-6 the largest of the canals in terms of command area (799 ha) and main canal length (20 km) is the Jui Quandaran, followed by the Jui Bala and Jui Bazaar. There are two smaller canals the Nab Shinga and Nab Killy, which are reported to have originally been branches of the Jui Quandaran (and may still have some linkage in terms of water supply). The total command area is just over 2,000 ha, from which irrigable area is estimated to be 1,600 ha. However, there is a considerable area (400 ha) of land on the tail end of Jui Quandaran which is also intermittently irrigated and the Mirab reported that in the past the irrigated area extended even further downstream. While not included in the current analysis, this represents an area of potential development, particularly if water distribution efficiency is improved.

Table 5-3: Sub project 3 areas Canal Command Irrigable Area Canal Length Area (ha) (ha) (km) Jui Quandaran 799 639 20.0 Jui Bala 786 629 14.2 Jui Bazaar 280 224 9.0 Nab Shinga 55 44 1.5 Nab Killy 83 66 3.5 Total 2003 1602 48.2

Key elements of the sub project are rehabilitation and construction of the following structures: • Representative sections of the main canal • Representative sections of branch canals and structures • Control structures at intake and strategic locations • Flood protection along the Hari Rud (to protect sections of Jui Bala) • Flood protection along the right bank of the Obe Wash (to protect Jui Quandaran) and downstream structures and property • Bifurcations (many existing structures are in poor condition) • Bridges (foot and road)

46 Western Basins Project Final TA Report – July 2005

Figure 5-6: Sub project 3

47 Western Basins Project Final TA Report – July 2005

5.3.3.3 Capital costs

Table 5-4 presents a summary of sub project costs (derived from Attachment 9) for the range of proposed works for the canals. These works include flood protection for canal intakes and main canal, as well as flood protection along sections of the Obe Wash, rehabilitation of main and branch canals, control gates and spillways, rehabilitation of bifurcations, extension of the siphon across Obe Wash (on Jui Quandaran), and a number of foot and road bridges. The costs also include provision for the replacement of the existing foot suspension bridge across the Hari Rud. The existing bridge is inadequate and unsafe, and replacement would greatly improve access to left bank communities, particularly during the spring and early summer period.

Total cost of the proposed works is $1,612,000 which is the equivalent of $1,000 per hectare (irrigable area). However, bridges and flood protection structures are substantial proportion of total costs (30%), if these are excluded the unit area cost decreases to $ 730 per hectare.

Table 5-4: Sub project 3 capital costs Summary of Works Quantity Unit Cost Flood protection (on-river) 900 m 225,000 Flood protection (on-wash) 200 m 20,000 Control gate and spillway 6 no 115,000 Spillway 7 no 105,000 Main canal rehab 7,500 m 375,000 Bifurcation rehab 30 no 150,000 Branch canal rehab 9,000 m 225,000 Siphon rehab 4 no 71,000 Aquaduct rehab 12 no 100,000 Bridges Foot 19 no 76,000 Road 5 no 50,000 Sare Pul Suspension Bridge 1 no 100,000 Total 1,612,000

5.3.3.4 Maintenance costs

As discussed in Attachment 9 the maintenance costs are of the new infrastructure expected to result in an incremental increase in costs of about $11,697 per year (based on analysis of costs over 20 years). This cost is inclusive of the suspension bridge to the left bank. If the bridge is excluded on the grounds that it is provided as an improvement to communications infrastructure (and therefore the maintenance costs should fall on the government), the total cost is reduced by $600 per year.

The maintenance cost per irrigated hectare is the equivalent of $7.30 ($1.5 per jerib). This is a relatively high increase on the current maintenance costs for canal de-silting, typically around $10-12 per hectare. However, the higher costs are partly due to a fairly substantial investment in flood protection structures on both the Hari Rud and Obe Wash, and as such are deemed by the local irrigation community as essential to protecting not only canal

48 Western Basins Project Final TA Report – July 2005 structures but productive assets and essential infrastructure i.e. land, roads and buildings. These costs are integrated into the analysis of MO&M in Section 5.4.4.6

5.3.3.5 Water availability

The irrigation systems in the mid-catchment (unlike those in the lower catchment where groundwater contributes to summer irrigation) are largely dependent on surface water flows from the Hari Rud. While there are no recent flow records for the Hari Rud, the Hydrology Report (Attachment 1) presented records for the 19 year period 1962-80 for a site (Tagaw Gaza) 27 km upstream. This is the best available information on likely river flows and likely water availability to the sub project canals.

Figure 5-7 below is derived from the above mentioned records. It shows the mean daily flow rate (cumecs) as average and potential supply (50% of average). It also shows the flow rates for two extreme years i.e. dry (1970-71) and wet (1968-69) years. The key point to note is that there’s little difference (2-3 weeks) in terms of water supply at the start of the irrigation season (late April) between wet and dry years. However there is a substantial difference in length of the irrigation season between wet and dry years (in the order of 40-60 days difference).

The cumulative peak abstraction rates for irrigation systems along the 30 km reach of the river, both right and left bank, is estimated to be in the order of 8-10 cumecs (based on irrigated areas). If it assumed that at best 50% of surface flow can be harvested (from all system intakes) peak demand can be met with a river flow rate of greater than 20 cumecs. The potential supply curve (50% of average flow) in Figure 5-7, shows that peak demand can be met for the systems from mid-March through to mid-June, but then supply drops to less than 50% of demand (5 cumecs) by early August. This is also supported by reported cropping patterns in the area, with the cultivation of rice as a second crop within the systems. The proposed works and support measures will ensure the continuity of water supply (protection of intake structures and canal) and enable more efficient distribution of this water, so in effect enable more intensive cropping regimes, particularly second cropping in late summer.

50 1968-69 45 1970-71 Average 40 Potential supply

Flow cumecs Flow 20

1 3 3 2 l2 t t b1 u g1 g3 c c an2 un3 J O O Nov2 Dec1 Dec3 J Fe Feb Mar Apr1 Apr3 May2 Jun1 J Au Au Sep2

Figure 5-7: Water availability at Sare Pul

49 Western Basins Project Final TA Report – July 2005

5.3.3.6 Summary of benefits

The proposed area for rehabilitation is the command areas of all canals with off takes between Sari Pul village and the Jui Bazaar off-take on the right bank of the Hari Rud in Obe District. The Sub Project has declined in scope since the Sari Pul weir option was postponed on economic, institutional and technical grounds. The area has been divided into two areas for analysis, reflecting present type of farming and water use: • “functioning canals” : small, well operated canals with relatively good water supply and high cropping and irrigation intensity which will give little incremental benefit (farm area 142 ha) • “partially functioning canals”, which are the canals distributing water around Obe town, the Ghondoran, Bala and Bazar, these are large, difficult to manage and experience water shortage and will give good benefit (farm area 1,890 ha).

The command area is 2,030 ha. Nearly all is expected to be cultivable and irrigable with project. “Functional canals” are assumed to be irrigating about 85% of their irrigable commands, “partially functional canals” irrigate only about 60%. Within this area, the present cultivated area is estimated to be 1,690 ha, and the present gross irrigated area is estimated to be about 1,200 ha. With project, the cultivation and irrigation intensity of presently functioning and partially functioning canals will improve to about 100%. With-project the cultivated area will be 2,000 ha and the gross irrigated area will be 1,870 ha. With rehabilitation, most project benefits are from expanding the on-farm irrigated area.

As for all proposed Sub projects, basic land use and population statistics for the area are lacking. It is estimated from District population statistics that there are 2,670 rural households in the project area. The social surveys indicate that about 35% of families are landless and 15% are in the medium wealth group (NRVA 2003 classification). The remainder were classified into the poor wealth group class. Average farm sizes in the Upper Hari Rod are larger than the lower, but smaller on partially irrigated land, reflecting the larger number of marginal farms. Farm size for the medium wealth group is 2.6 ha on fully irrigated land and 2 ha on partially irrigated land. The farm size for poor wealth group farms is 0.80 and 0.75 ha respectively. Landless families are assumed to at least have access to a house/garden plot, 0.05 ha. Additionally about 15% of farmers in the poor and landless wealth groups share- crop in about 30% of the total area in farms. This land has been accounted for separately. Sharecropping terms are different from the Lower Valley, share croppers take an equal share in the produce but are expected to provide seed (improved seed is very scarce in Obe) and irrigation.

The Sari Pul area is unique in the Hari Rud, since here the twin advantages of greater volumes of water in the river persisting for longer into the summer (which downstream areas do not have) coincide with a broad and cultivable floodplain and terrace area (which upstream areas do not have). Sari Pul farmers have developed this locational advantage by specialising in rice production. Rice is a profitable cash crop in Afghanistan, because few areas have both the required large volumes of water in the summer months and suitable land on which to grow it. However, for rotational reasons, rice does not follow wheat, which is the staple grain and essential for household food security. This means the present cropping pattern has a higher than expected proportion of fallow land and a low irrigation intensity (80- 90%). The situation is complicated by low applications of good quality seed, fertiliser and herbicide to the wheat crop. This is because inputs are relatively scarce and expensive in Obe, and farmers prefer to use such inputs as are available on the more profitable rice crop. In any event the quality of local rice varieties in Obe is nothing special (at least to international taste), though they do produce a lot of fodder straw.

The second important advantage of the area is in the production of fodder and feed grain, not only for local herds, but also for the kuchi pastoralists that winter in the area. At present this is low quality, being mostly wheat, barley and rice stalks and maize stover, although the area

50 Western Basins Project Final TA Report – July 2005 also produces significant quantities of barley grain. Potential exists for improving the quality of fodder and the quantity of grain, and thereby increasing dairy production in the area. But there would have to be significant improvements in the opportunity to market incremental dairy produce, to focus producers’ minds on quality of rations rather than bulk.

The area has little comparative advantage in vegetable and fruit production, being far from main markets, but farmers will make marginal increases for home consumption and local markets. Surfacing of the road from Herat to the Salma dam site is expected, this will improve marketing opportunities for Obe farmers, but the effect has not been modelled in benefit estimates.

Rice, fruit and livestock products will be the main components of incremental production with- project. Overall the value of production is expected to increase by 90%, in contrast to the volume of production, which will increase by 15%. The development scenario presented in this report assumes benefit from sharecropped land only with agricultural services to provide incremental crop inputs, because it is already irrigated, and neither land use change nor further investment will be made without security of tenure. The returns to rehabilitation alone are therefore small, compared to returns with rehabilitation and support services. The need for agricultural support services is more pressing in Obe District than in Jui Nau. The need for well targeted support that focuses on improving grain and fodder productivity, and supporting the expansion of orchards and vineyards is considered essential to secure the potential returns to the proposed investment.

The provision of agricultural support services will improve the distribution of direct benefits. With rehabilitation alone, 56% of direct scheme benefits are captured by the medium wealth group category, though obviously there will be “trickle down” effects from incremental farm labour hired, and incremental services purchased from other wealth groups. However, the planned support services will provide the means to both increase wheat yields and extend access to higher value cropping pattern to poorer wealth groups. Not only will benefits expand by nearly 40% over and above benefits from rehabilitation alone, but the share of poorer wealth groups in total benefits will increase from less than 40% to over 60%.

A financial and economic cost: benefit analysis has been carried out for the Sari Pul scheme. This is reported elsewhere. It is sufficient to say the returns to the proposed investment in rehabilitation are positive (EIRR=17%) and the provision of agricultural support services makes a positive contribution both to the internal rate of return and the net present value of the project. Though the sub project is less attractive economically than the Jui Nau scheme, partly this is because a proportion of the command is already operating reasonably well, so the incremental benefits are smaller. The other reason is that Obe District is relatively remote, input costs are higher, marketing is more difficult, and the grain dominated cropping pattern is overall less valuable than cropping patterns in the Lower Valley. Nevertheless, the investment is financially viable. Further details on the benefit estimation for this scheme can be found in the PPTA working paper Estimate of Benefits From the Rehabilitation of Canals at Sari Pul, Obe District, July 2005.

51 Western Basins Project Final TA Report – July 2005

5.3.4 Sub Project 4: Pashdan Wash Water Resource Development

The Pashdan Wash is in the Lower Hari Rud approximately 20 kilometres upstream of Herat city as shown in Figure 5-8. It is a colluvial fan formed by discharge from the Karokh River, a tributary of the Hari Rud. Its extent and proximity to Herat city and adjacent area of irrigated agriculture creates a number of flood protection problems and water resource development opportunities. While Pashdan Wash covers an extensive area, surface flow occurs principally in two branches i.e. right and left. As shown in Figure 5-8, the right branch flows parallel to the Hari Rud and crosses both the Jui Nau and Ingil canals, after which it flows along the southern edge of the city and ultimately discharges to the Hari Rud. It has a flow path of more than 60 kilometres. The left branch is considerably shorter (14 km) and flows more directly to the Hari Rud, and does not pose a flood threat to downstream communities.

As observed in March 2005 the right branch is the primary channel for surface water flows with a discharge in the order of 20 cumecs compared to less than 5 cumecs in the left branch. The right branch is an integral part of the irrigation systems and flood discharges for irrigated land and communities south and west of Herat city. The flow channel in parts is heavily incised with bank erosion is threatening structures and property (i.e. bridges, roads, canals, houses and farmland). It also serves as both a water source and discharge sink for a number of irrigation systems along its length. The DEW has previously investigated the potential for diverting flows from the right to the left branch to better protect downstream communities and structures.

In addition to the above flood protection issues, there is an opportunity to improve the harvesting of surface water from Pashdan Wash to support the development of more intensive irrigated agriculture on both the right and left banks (as indicated in Figure 5-8). Structures have been built in the confined section of the Karokh River immediately upstream of the wash to divert surface flows into irrigation canals. However, as observed in April 2005 these structures have been difficult to maintain due to their limited scale and changing river gradient and path.

5.3.4.1 Sub project concept

There are substantial areas of land on both the right and left bank of Pashdan Wash that are intermittently irrigated. For the purpose of sub project development it is assumed that the proposed irrigation works will supply 2,000 hectares on each bank, currently irrigated from a number of small canals.

The concept of the development of the sub project is the construction of a number of works to: • Improve the intake of canals for irrigation systems on both the right and left banks with the construction of a low weir, intake galleries, main canals, siphons and flood protection structures. • Divert and control flows into the right branch of the Pashdan Wash with the construction of flood protection structures (gabion walls and control structure(s)).

The works are intended to improve of flood protection of downstream communities along the right branch with the diversion of peak flood flows to the more direct left branch, while maintaining low flows to sustain irrigation takes. The upstream works will improve water availability and reliability to irrigation systems on the right and left banks while reducing intake maintenance costs.

Figure 5-9 shows the location of principal works (i.e. diversion and control structures, low weir and intakes, main canal siphons, irrigation canals (right and left bank) and flood protection).

52 Western Basins Project Final TA Report – July 2005

W E

Weir site

Canal Rehab Canal Rehab

Right Branch Diversi on Structure

Jui Nau Irrigated Area

Herat

Ingil Right Branch

Left Branch

Hari Rud

Pashdan Wash Irrigated Areas (intermittent) Jui Nau Canal Ingil Canal 10 0 10 20 Kilometers Herat City Hari Rud

Figure 5-8: Pashdan Wash

53 Western Basins Project Final TA Report – July 2005

W E

S Siphons Karokh River

Flood Protection

Irrigation Canals Low Weir and Intakes Qal'a-i Sarposh MEW Structure Y# Y# Abshekan Karokh Road Makhtum Diversion & Control Y#

Spibuz Tirdawan Y# Y#

Khake Bibi Y#

Qala-i- Gholam Y# Obe Road

Left Branch

We ir Siphons Diversion / Control Structure Right Branch Main Canals Ghundasang Dur wo MEW Structure Y# Y# Roads Y# Villages (adjacent).shp Pashdan Wash

4048Kilometers

Figure 5-9: Sub project 4

54 Western Basins Project Final TA Report – July 2005

A key element of the sub project is the development of irrigation structures (intake, main canal, etc) to provide water to a group of smaller canals. This is in essence a rationalisation of a number of smaller intakes to a single structure. It is intended to demonstrate the benefits of the rationalisation of delivery systems for application to other areas, particularly those on washes. However it is recognised that community consultation and approval will be an essential element to the approach.

5.3.4.2 Capital costs

Table 5-5 is a summary of the capital cost for works for the sub project. The total cost is close to $2 million, of which just over $1.3 million is for irrigation works (right and left bank) and $0.67 million for the flood diversion structure.

The unit area costs are the equivalent of $618 per irrigable hectare. However this decreases to $411 per hectare for irrigation structures (i.e. excluding the diversion structure).

Table 5-5: Sub project 4 capital costs Works Costs Irrigation Structures Weir 310,504 Right Bank Intake Gallery 53,000 Intake Structure 10,000 Siphon 37,625 Flood Protection 100,000 Main Canal 312,000 Subtotal 512,625 Left Bank Intake Gallery 53,000 Intake Structure 10,000 Flood Protection 197,500 Main Canal 232,000 Subtotal 492,500 Irrigation Total 1,315,629 Diversion Structure 672,500 Total 1,988,129

5.3.4.3 Maintenance costs

As outlined in Attachment 9, maintenance costs during project implementation are estimated to be $38,434. Analysis over a 20 year period indicates that incremental increases to annual costs for the maintenance of new infrastructure will be in the order of $18,925 or the equivalent of $5.92 per irrigable hectare. This cost is inclusive of the maintenance for the flood diversion structure, and which in principle should be supported by the broader beneficiary community, both public and private. If the diversion structure is excluded the cost

55 Western Basins Project Final TA Report – July 2005 decreases to $ 4.66/ha/y. These costs are integrated into the analysis of MO&M in Section 5.4.4.6

5.3.4.4 Water availability

As discussed in the Hydrology Report (Attachment 1) there was a flow station on the Karokh River for a period of 19 years from 1961-80. The station was located approximately 4 kilometres upstream of the sub project. Examination of the records shows that there are only records for 5 of the 19 years, mostly in the mid 1970s (1973-79).

While the record period is relatively short, it nevertheless provides an indication of the possible flow regime for the lower reaches of the river. Figure 5-10 is a plot of the flow exceedance for the 5 years of daily records.

As Figure 5-10 indicates at times there are flows in excess of 50 cumecs during the irrigation season (Apr-Aug) but on average flows are less than 10 cumecs, and reliable flows (20% percentile levels) are less than 5 cumecs.

The peak irrigation demand for an irrigable area of 3,200 hectares is in the order of 6-8 cumecs. The above limited flow records, indicate that Pashdan Wash is a relatively unreliable source, and particularly so in the period of peak demand mid-May to June. This is self-evident by the nature of the existing systems and areas supplied from Pashdan Wash, that is extensive but relatively low intensity irrigation. The sub project will provide a more reliable method of capturing surface flows, and supplement this with groundwater from intake galleries as discussed in Attachment 9. The improvement in water supply and security of these supplies are expected to lead to more intensive irrigated agriculture with expected increases in both productivity and returns as discussed below.

50 100%ile 45 90%ile 40 80%ile 50%ile 35 20%ile 30

Flow rate(cumec) 15

1 1 1 1 1 _1 _1 _ _ _ _ _1 t_1 v_ c b r r p c o Jul_1 ug O N De Jan_1 Fe Ma Ap May_1 Jun A Se

Figure 5-10: Karokh River flow exceedance

56 Western Basins Project Final TA Report – July 2005

5.3.4.5 Summary of benefits

The key to estimating benefits from Wash rehabilitation is to take into consideration the probabilities of irrigation deliveries from Wash off-takes, which are more unreliable than from canals with off-takes from the Hari Rod, and the probability of flooding and erosion from rainfall events in the Wash catchment. However, cropping patterns on the Washes are much simpler; wheat and pulses are over 90% of the cropping pattern. There is also less variation in the social status of rural communities on the Washes, which, compared to the fertile irrigated land of the Hari Rud floodplain, is marginal land to which the poorest tend to gravitate.

The Karukh River flows through the Pashdan Wash, and is the boundary between Injul and Karukh Districts. About two thirds of the Wash is unsuitable for cultivation, the remainder is marginally suitable (following the USBR classification and mapping). There are both permanent and opportunistic canals from the Karukh River, as well as karezes. Several thousand hectares are in command but only a fraction of this can be irrigated in any year because of low flows in the Karukh river and the small volumes delivered by karezes. Farmers divide cultivable village land into aish or blocks, and practice a three year rotation of aish growing wheat and pulses. The cultivation intensity is related to the volume of supply from canals and karezes, and the rainfall, which may allow a rainfed crop to be taken in favourable sites where run off accumulates and soil moisture retention is high. So cultivation intensity varies between annually between 25% and 40%.

To estimate without project crop revenues from irrigation, and crop and infrastructure losses from floods and erosion, land marginally suitable for irrigation was divided into five land types: • Irrigable with no risk from floods or erosion (76%) • Irrigable with flood risk (13%) • Irrigable with erosion risk (8%) • Village area with flood risk (2%) • Village area with erosion risk (1%).

A cropping pattern was defined for each land type for rainfall return periods of 1:2, 1:5 and 1:10, based on field observation and local enquiry, taking into account that crop areas would expand with increasing rainfall, but some crop areas would be destroyed in flood and erosion events associated with rainfall seasons with a low return period.

Once cropping patterns by land type for the three return periods had been prepared, it was necessary to calculate revenue and losses for each. Crop gross margins and standing crop values under different irrigation applications, from full requirement to rainfed conditions, have been estimated during the course of other studies by the PPTA. Estimates were made of the cost of damage to infrastructure, houses and property based on local values. No value was estimated for human life, though in many years there are fatalities as a result of flood events on Pashdan Wash. Unit revenues and losses were then multiplied by crop areas to calculate total revenue and loss.

Then, since the return periods are known, the annual probability of loss4 (APL) could be calculated for each land type in the future without project situation. This was then subtracted from the crop revenues expected with-project when the probability of loss would be removed. The benefit stream could then be compared with the cost estimate of protection works in the usual way.

4 The annual probability of loss from flooding is the cumulative loss expected from each of a series of flood events over a time period multiplied by the probability of occurrence of the flood. The principle can equally be applied to estimating the probability of returns, or the probability of loss of land from erosion.

57 Western Basins Project Final TA Report – July 2005

The cropped area on Pashdan Wash is about 1,700 ha of wheat in a year of average rainfall, increasing to about 1850 ha in a wetter year, and falling to below 1,700 ha in a year of high rainfall as more land is affected by flooding and erosion. There is a greater proportion of rainfed wheat on irrigable land with higher flood risk. Settled land occupies only 3% of the Wash area, but includes high value crops, infrastructure and houses. Land in any land type not assigned to any specific land use was designated as grazing, and given a low annual gross margin. All land has some value, even on the unpromising areas of the Washes.

The APL over the irrigable area of 6,000 ha is about Afg 1,550 per ha from floods associated from a 1:5 rainfall season, and in a 1:10 season Afg 3,100 per ha. Of course, this loss is localised in the land types with risk (25% of the area), and affects relatively few people. Over 60% of losses are due to damaged or lost crops, and 13% is from damage to houses and infrastructure. The remaining 28% is due to the permanent loss of eroded irrigable land. This was not valued at the full market price because the owner’s title still exists, and the value would in any case be much lower than land actually transacted in the open market due to its inherent risk of erosion. This risk would make it unsaleable. Instead, the land was valued according to lost utility, ie its annual gross margin discounted at 30% (land market discount rates are higher than the bank rate) over 25 years.

There is also an annual probability of return (APR) from crops which are successfully harvested, which will be relatively higher in a wet year. This is about Afg 1,800 per irrigable ha in a year of average rainfall, rising to Afg 2,270 per ha in a wet year. The return per ha is low because of the low cropping intensity. The without project benefit is estimated by subtracting the APL from the APR on each land type. The present costs of maintaining the existing irrigation system are also subtracted.

With project, it is assumed that APL is effectively eliminated. Settlement land and infrastructure would be protected. Runoff would be spread on the Wash to enhance irrigation opportunities, or during flood events channelled safely into spillways. The cropping intensity on all land types would be as great as available water would allow, but has been assumed as no more than 35%, or 2,450 ha. This figure needs to be revised at the planning stage when incremental water delivery from the Karukh River can be estimated. Costs of maintaining the irrigation system will be reduced because the impact of flood and erosion events is substantially reduced. An incremental benefit stream is calculated by subtracted future without project benefits.

The project costs are estimated as about US$ 330 per irrigable hectare, plus O&M at US$ 3 per hectare. The net benefit stream gives a financial IRR of about 22% and a financial NPV of Afg 50.5 million, excluding any adjustments made on costs, and excluding project overheads. There are no pretensions that this is an accurate estimate. Reasonably accurate flood damage curves would have to be established to do this, for which no data is available. The necessary hydrological data seems to be completely lacking. The model is most sensitive to the cost of land lost by erosion, particularly settlement land. The estimate in the model is in line with historical losses, but it would require re-assessment in a more detailed study. However, the rough estimate of without project losses and returns made here suggests that benefits from Wash rehabilitation are commensurate with capital costs and that the works are a financially viable activity.

58 Western Basins Project Final TA Report – July 2005

5.3.5 Sub Project 5: Rehabilitation of Yahia Abad Irrigation System

As outlined previously, following the ADB Mission meeting and workshop in Kabul in May 2005, and the subsequent review of the PPTA approach, a fifth core sub project was identified. The rationale for the inclusion was that it would expand the spatial distribution of core sub projects within the Lower Hari Rud. It was felt that there was a need to include a canal on the left bank within the Pashtun Zarghun district as well as provide a greater range of system types.

Within the limited timeframe for selection, it was decided to include a canal supplied from the Kawgan River, (a major tributary of the Hari Rud), as being within the distribution criteria and representative of an ‘intermediate’ type of canal in terms of reliability of water supply, that is somewhere between run-of-river take from the Hari Rud (relatively high reliability) and supply from a wash (relatively low reliability). The Yahia Abad system was selected as a suitable candidate, which was subsequently confirmed by field inspection and meeting with the canal mirabs.

As Figure 5-11 shows, Yahia Abad intakes water from the Kawgan River about 2.5 km upstream from the confluence with the Hari Rud. It supplies a command area of intensively irrigated lands of approximately 1,134 hectares within the first 27 kilometres of main canal. Based on eighty percent irrigable, just over 900 hectares are irrigated as indicated in Table 5-6.

The main canal extends for up to a further 8 kilometres to supply another 700 hectares of intermittently irrigated land at the tail end. At the time of inspection, early June 2005 there was limited and sparse irrigated crops within the intermittent irrigated areas.

The system is reported by DEW as having a cumulative allocation of 21 zoj. However, the Mirabs reported the total as 25 zoj, with the allocation based on 100 jerib per zoj in the upper section, 150 jerib in the mid section and 1,000 jerib in the lower. The higher allocation in the lower section is assumed to be for the intermittently irrigated lands. Based on an equal split between upper and mid sections, the irrigated area is estimated to be in the range of 4,000 to 5,000 jeribs, or the equivalent of 900 hectares, a similar value to that derived from Figure 5-11. Table 5-6: Sub project 5 areas Section Command Irrigable Intensive irrigated 1,134 907 Intermittent irrigated 909 727 Total 2,043 1,634

5.3.5.1 Inventory

The canal inventory and consultation with the Mirabs was completed in early June 2005, as presented in Attachment 9. The Yahia Abad has three Mirabs, who share responsibility for the canal as a whole, rather than for specified sections or branches as is the case for Jui Nau. The inventory logged key structures on the canal; type, construction and condition, these included intakes, spillways, bifurcations, minor outlets, aquaducts, siphons and bridges. This was achieved in consultation with the Mirabs. While not as detailed as the Jui Nau inventory, it was nevertheless sufficiently detailed to provide a preliminary list of rehabilitation works and improvements.

59 Western Basins Project Final TA Report – July 2005

Figure 5-11: Sub project 5

60 Western Basins Project Final TA Report – July 2005

In common with many irrigation systems along the left bank, particularly those within Pashtun Zarghun, a number of structures have been repaired by the Danish NGO Daacar. These included several culverts, an aquaduct and a number of bridges. The approach taken to construction was; Daacar provided technical support and materials while the local community provided construction labour. The Mirabs reported that they were satisfied with both the approach and outcome.

The inventory indicated that there are: • Constraints on the intake, in terms of water supply, maintenance of the structure and sharing water with upstream communities. • Constraints on water availability that are limiting the reliably irrigated area. • Inequities in water distribution which are limiting the productivity of the mid and lower sections. This is due to poor construction of canal outlets; major bifurcations and minor outlets. In many cases outlet are earth construction in part or full, making regulation of discharge highly variable, and often disproportionately benefiting upstream irrigators. As indicated above there is considerable potential to improve irrigation performance with more equitable distribution of water along the main canal. • Urgent repairs required to existing spillways (2) to limit damage to the main canal • A need for protection of canal sections and structures adjacent to washes.

5.3.5.2 Proposed works and capital costs

To sustain and improve the irrigation and economic performance of Yahia Abad, there is a need to rehabilitate the existing system. It is proposed to implement a range of rehabilitation works on the canal and associated structures to improve water availability and distribution efficiency. These works will be complemented with supporting community and agricultural services to enhance the investment in irrigation infrastructure.

Table 5-7 lists the range of proposed works for rehabilitation and/or construction for Yahia Abad. The rehabilitation of main and branch canals will be based on identification of those sections (up to an upper length limit) that can best demonstrate improvements in performance and reduction in maintenance costs. It is not the intention to rehabilitate all sections but to demonstrate techniques and benefits (which is consistent with the preceding sub projects).

Table 5-8 lists a summary of capital costs for the above works, derived from Attachment 9. The total cost is estimated at just over $397,000. Based on an irrigable area of 900 hectares (intensive irrigated) this is the equivalent of $438 per hectare, or on the total irrigable area (intensive and intermittent) the equivalent of $250 per hectare.

Additional works may also include the construction of an intake gallery to improve water supply, particularly in the mid to late summer period, when surface water flow recedes. It is provisionally estimated (based on other sub project costs) that the cost may be in the order of $50,000. While not incorporated in the costs and benefits at this stage due to limited information on the site and potential technical constraints, it may be worthy of further consideration during project implementation due the high potential benefits.

61 Western Basins Project Final TA Report – July 2005

Table 5-7: Sub project 5 works inventory Structures No / km Comments Total Rehab Main canal 35 3 Rehab based on 10% of total Branch canals NA 5 Inclusive of minor structures Intake 1 1 Improve water intake structures and canal banks Aquaduct 3 1 2 aquaducts are relatively new (ex Daacar) Bifurcation 4 4 All bifurcation are in poor repair Minor outlets 8 8 All outlets need rehabilitation Siphon 2 1 1 siphon is new ex-Daacar Spillway 3 3 All existing spillway are in poor repair Culverts 3 3 Flood protection required for adjacent washes Bridges 20 5-10 Combination of foot and vehicle bridges

Table 5-8: Sub project 5 capital costs Summary of Works Quantity Unit Cost Intake canal and protection 1 no 39,600 Control gate and spillway 1 no 15,000 Aquaduct 1 no 17,672 Siphon 1 no 15,209 Bifurcations 6 no 30,000 Minor outlets 15 no 15,000 Spillway 3 no 15,000 Main canal rehab 5,000 m 125,000 Branch canal rehab 5,000 m 50,000 Branch canal structures 100 no 20,000 Bridges (foot) 10 no 40,000 Wash protection 300 m 15,000 Total 397,481

5.3.5.3 Maintenance costs

The Mirabs reported that annual de-silting requirement is based on the allocation of the equivalent of 4 labour units per zoj for 40 days per year, this is the equivalent of 4,000 man days per year. Based on a daily labour cost of 100 Afg per day ($2/d), the total annual cost is in the order of $8,000. Based on an irrigable area of 900 hectares (as discussed above) this is equal to $9/ha per year, a cost similar to that reported in Jui Nau. The proposed works will not increase annual de-silting requirements, and will possibly decrease both the workload and cost through improved system hydraulic performance and more cost effective de-silting techniques (as per Attachment 7).

62 Western Basins Project Final TA Report – July 2005

Analysis of maintenance costs over a 20 year period (Attachment 9) indicates annual costs of $2,741 or the equivalent of $3.02/ha/y. This is approximately a 30% increase over current de-silting costs, and probably within the sub project incremental financial benefits.

The above costs are integrated into the analysis of MO&M in Section 5.4.4.6

5.3.5.4 Water availability

As indicated above the water source for the Yahia Abad is from the Kawgan River, approximately 3 kilometres upstream from the confluence with the Hari Rud. The Hydrology Report (Attachment 1) indicates that a flow station was maintained on the Kawgan, at Lagar for a 19 year period, from 1961-80. The station was approximately 4 kilometres upstream of the canal intake, so provides a reasonable and relevant indication of the river flow regime to the canal.

Figure 5-12 is a plot of flow exceedance for a range of values (20 to 90 percentile) derived from the daily flow records. It shows that peak flows may on occasion exceed more than 60 cumecs (90%ile). However, more reliable flows for irrigation supply are typically less than 20 and 10 cumecs at the 50 and 20 percentile levels respectively. Given the limitations of intake structures and methods, the reliable water flow would be less than 10 cumecs.

In the 6 kilometre reach of the Kawgan upstream of the Hari Rud confluence there are 4 canals (3 in additional to Yahia Abad). These canals are estimated to have a combined peak demand in the order of 5 – 6 cumecs. Figure 5-10 shows that this flow could be reliably met during the period April to early June, thereafter the available water decreases and in some years ceases.

The flow records show that while surface flow can reliably meet peak irrigation demand, it is generally limited in the later part of the season and therefore likely to be a constraint to the extent of second cropping.

80 90%ile 70 80%ile

60 50%ile 20%ile 50

30 Flow rate (cumecs) Flow rate 20

_1 ar Jul_1 Oct_1 Nov_1 Dec_1 Jan_1 Feb_1 M Apr_1 May_1 Jun_1 Aug_1 Sep_1

Figure 5-12: Kawgan River flow exceedance

63 Western Basins Project Final TA Report – July 2005

5.3.5.5 Summary of benefits

The proposed area for rehabilitation is the command area of Yahia Abad canal, which has its off-take from the Kawgan River. The command area has been divided into two areas for analysis, reflecting present type of farming and water use: • “Intensively irrigated” : the head and middle reaches of Yahia Abad with relatively good water supply and intensive irrigated cropping (1,134 ha) • “Irregularly irrigated”: the tail end which presently receives water only in years of very good rainfall (909 ha).

The command area is 2,043 ha on the Hari Rud Left Bank in Pashtun Zargun District. All is expected to be cultivable with project. 90% of the functioning canal command is cultivable and irrigable, and all of the area is assumed to be in farms. Without project, cropping intensity is about 65% and about 50% of the area is regularly irrigated. With-project, over 90% of the area will be regularly cultivated, and 85% intensively irrigated. In the tail, only 35% is cultivated at present, and only 20% is irrigated. With project, over 45% will be cultivated, and 40% will be intensively irrigated. The water source is too unreliable to assume a greater increase in irrigation intensity in this area.

Basic land use and population statistics for the project area are lacking. It is estimated that there are 1,650 rural households in the project area. Average farm sizes in the Upper Hari Rod are larger than the lower, and still larger on Washes, which is basically what the tail of this system is. Medium wealth groups are confined to the intensively irrigated section of the canal, with an average farm size of 2.6 ha. Poor wealth group farms on intensively irrigated farms were assumed to be 0.80 ha, and on the Wash area 2 ha. Landless families are assumed to at least have access to a house/garden plot, 0.05 ha. Additionally about 40% of farmers in the poor and landless wealth groups share-crop in about 15% of the total area in farms. With project, it has been assumed that sharecropped land will increase to about 20%. This land has been accounted for separately.

The Yahia Abad canal command has few advantages. It relies on water from the Kawgan River, which is a less reliable source than the Hari Rud. The command area is attenuated and small compared to the length of the canal. The cropping pattern is dominated by wheat which occupies 70% of the cropped area, 15% of which is rainfed in the tail. Rice is less important in the Yahia Abad command than in the Sari Pul right bank subproject area because it is a high level, water poor canal. However, it is a preferred crop if water is available. Fodder and feed grain (barley and maize) occupy a significant proportion of the cropped area, 7%, and this area is likely to be an under-estimate, although dairy cows in milk are estimated to be only around 300 head. Sheep and goats owned by farm households in the project area consume some, while surplus fodder and feed is sold in winter to the kuchi pastaralists. Vineyards are neither numerous nor large, presumably because the marketing opportunities are fewer, and the proportion of medium wealth group families is lower. Vegetables are grown for home consumption. Potatoes, being more easily transportable, are grown for sale. Marketing is a problem on the Hari Rud left bank because of the poor condition of the road. Agricultural support services will be required to improve productivity in this area, in particular in water management and input supply.

In the without-project situation, the largest components of the total value of main production are grains (34%), fruits (35%) and livestock products (25%). The largest component of incremental value of main production is grain (40%) followed by fruit (35%). In the with- project situation, the proportion of all items of main production remains similar to their proportion in the without-project situation. In other words there will be little change in nature of production in the Yahia Abad area. Overall the value of production is expected to increase by 45%, in contrast to the volume of production, which will increase by 34%. With both rehabilitation and agriculture and livelihood support, there is expected to be little difficulty in

64 Western Basins Project Final TA Report – July 2005 justifying equitable benefit distribution in this scheme, since nearly 60% of benefits will accrue to poor and landless households.

A financial and economic cost:benefit analysis has been carried out for the Yahia Abad scheme. This is reported elsewhere. Sufficient to say the returns to the proposed investment in rehabilitation are positive (EIRR=20%) and the provision of agricultural support services makes a positive contribution both to the internal rate of return and the net present value of the project. The returns to the Yahia Abad scheme are relatively high, this is because canal rehabilitation is relatively inexpensive (US$ 400 per command ha) and incremental benefits are calculated from a low base level. Further details on the benefit estimation for this scheme can be found in the PPTA working paper Estimate of Benefits From the Rehabilitation of Yahia Abad Canal, Pashtan Zargun District, July 2005.

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5.3.6 Sub Project Summary

The series of tables below present a summary of facts for the five core sub projects.

Table 5-9 lists a summary of command and irrigated areas, the key points are: • Total area (command) for the five sub projects is 15,737 hectares. • Total irrigable area is 11,609 hectares, with the largest area being in Jui Nau (sub project 1) at 5,100 ha and smallest Obe Wash at 800 ha (sub project 2).

Table 5-10 lists a summary of capital costs, the key points are: • Total cost of works is $6.4 million of which $4.4 million are irrigation works, with the balance for flood protection and bridges. • Total cost inclusive of contingencies (20%) is $7.7M or the equivalent of $660 per irrigable hectare. • Flood protection and bridges account for 30% of total costs, but range from 40% down to 7% for sub projects 3 and 2 respectively. • Average unit area cost (based on total cost) is $550 per hectare, but ranges from $356/ha to $1,006/ha for subprojects 1 and 3 respectively. • Average unit area cost based on irrigation costs (excluding flood protection and bridges) is $381/ha, with the range from $248/ha to $664/ha for sub projects 1 and 2 respectively.

Table 5-11 lists a summary of O & M costs, the key points are: • Total O&M cost on the above works (excluding de-silting costs on existing canals) is $122,655 over the project implementation period. However it should be borne in mind that O & M costs will be relatively low following commissioning. • Annual O & M costs (in the long term) will be $58,257 or an average of $5.02/ha (approx. $1/jerib). This will be partially offset by expected reduction in current costs for de-silting. • O & M rates ($/ha/y) vary between sub projects; the highest is $14/ha for sub project 2 due to de-silting costs for intake gallery and new canal, and lowest for sub project 1.

Table 5-9: Summary of areas Sub project Area (ha) Command Irrigable 1. Rehabilitation of Jui Nau 7,600 5,100 irrigation system 2. Development of Obe Wash water resources 1,000 800 3. Rehabilitation of Sare Pul irrigation systems 2,003 1,602 4. Development of Pashdan Wash water resources 4,000 3,200 5. Rehabilitation of Yahia Abad irrigation system5 1,134 907 Total 15,737 11,609

5 Excludes intermittently irrigated area in the tail end.

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Table 5-10: Summary of costs Sub project Total Irrigation $ $/ha $ $/ha 1. Rehabilitation of Jui Nau 1,814,999 356 1,262,699 248 irrigation system 2. Development of Obe Wash water resources 571,165 714 531,165 664 3. Rehabilitation of Sare Pul irrigation systems 1,612,000 1,006 970,000 605 4. Development of Pashdan Wash water resources 1,988,129 621 1,315,629 411 5. Rehabilitation of Yahia Abad irrigation system 397,481 438 342,481 378 Total 6,383,774 550 4,421,974 381

Table 5-11: Summary of maintenance costs Sub project Total $6 $/y7 $/ha/y

1. Rehabilitation of Jui Nau 37,289 13,236 2.21 irrigation system 2. Development of Obe Wash 33,702 11,625 14.53 water resources 3. Rehabilitation of Sare Pul 11,250 11,697 7.30 irrigation systems 4. Development of Pashdan 38,434 18,958 5.92 Wash water resources 5. Rehabilitation of Yahia Abad 1,980 2,741 3.02 irrigation system 122,655 58,257 5.02 Total

6 Total within project period years 1-6 7 Based on average over 20 years (Attachment 9)

67 Western Basins Project Final TA Report – July 2005

5.4 Operation and Maintenance

5.4.1 Purpose

The purpose of this section is to provide recommendations related to the principles of Management, Operation and Maintenance (MO&M) of irrigation systems owned by Community Irrigator Institutions and/or Water User Groups (CII and/or WUG) to be supported through the ADB Western Basins Project (WBP).

This section includes general procedures and guidelines necessary for adequate management, operation and maintenance that will be required from a functional and sustainable water user organization within the WBP project area. The recommendations included in this manual are based on internationally applied and accepted procedures, adapted for the specific local conditions as required. Existing local physical and social structures and the types of improvements generally proposed for the rehabilitation works, such as water measurement structures, gated and un-gated flow control structures, etc. have been assumed.

This section has been prepared based on preliminary data. When WBP implementation is underway and final designs are complete, updated procedures on how the irrigation system should be managed, operated and maintained should be developed by the implementation contractor.

Other types of assistance work will also be implemented by the WBP. This will include a variety of other water resource and agricultural development activities, some of which will presumably also require some degree of management, operations, and maintenance. However, under the WBP, the investment cost and maintenance requirements in the irrigation sector are by far the largest, and this section restricts itself to MO&M for irrigation work only.

5.4.2 Background

Within the Western Basins the majority of the irrigated area is irrigated by “spate irrigation”, a type of irrigation which captures flow from ephemeral or highly variable sources. The type of infrastructure constructed and maintained by the local communities relies almost exclusively on local materials and is labour intensive. The infrastructure is adapted to the local hydrologic regime which is highly variable and unpredictable.

Ownership and access to land and water resources within the Western Basins area is a complex issue, deeply woven into the fabric of local society. The irrigation systems of the Western Basins of Afghanistan have been community-constructed, managed, operated, and (largely) maintained for generations. Unique mechanisms for the abstraction, control, and distribution of water have evolved over time and are integrated into the social fabric of the communities. While certain wealthy farmers may own disproportionately large tracts of land, many more families have access to land through a complex system of sharecropping and leasing. The sharecropper uses land or water belonging to another, and in return pays a proportion of the production to the owner of the resource that the sharecropper uses. The proportion the sharecropper has to pay varies according to the respective contributions of the landowner and the sharecropper of various inputs, such as water, seed and fertiliser, farm power and farm labour. In general, each of these elements is valued at one-fifth of the output, though the specifics can vary widely according to local tradition and historical agreements between landowner and sharecroppers.

Though these mechanisms are arguably sub-optimal from an engineering or ideal social equity standpoint, the mechanisms represent the traditionally established and accepted land

68 Western Basins Project Final TA Report – July 2005 and water rights of the individuals and communities involved. The body of law in most countries with more codified legal systems acts in a similar fashion.

The physical and social mechanisms used to manage, operate and maintain the irrigation systems of the Western Basin are well adapted to the local conditions and are effective, and are described in detail in Attachments 7 and 9 (the Mirab and Water User Association Specialist Report and the On farm Irrigation engineers Report, respectively). A very brief general outline is included here: • The systems are gravity fed, exploiting mainly surface-water (and, to a minor extent, groundwater). • The hydrologic regime of major sources is characterized by highly variable flows, both seasonally and annually. • Abstraction from the sources is via various mechanisms utilizing locally available resources and requiring high maintenance in the form of labour inputs. • Along the basin, supply generally exceeds demand for a short period during peak spring runoff. This period coincides with the early irrigation period. Demand exceeds supply during the period of late irrigation. • Along the basin, “first in line” (upstream) competes with “first in time” (historical rights) for water, when supply becomes short. Agreements and dispute resolution are based on tradition more than formal law. • The physical and social systems of the canal networks are adapted to effectively utilize the variability of the existing sources. • Most canal systems operate under continuous flow regime, with secondary distribution controlled by fixed-width ungated outlets. Water rights are based on traditional ratios of outlet size to land area. This mechanism essentially eliminates the gated structures and gated operations found in irrigation systems in many other parts of the world. (Some canal systems, or portions of canal systems, operate on a rotation basis, with water allocated on a ratio of time to land area.) • The individual canals are maintained primarily by those vested interests along the canal engaged in agricultural production. These interests constitute the general membership of the water users organization. Not all water users contribute to maintenance. • Management and most operations are conducted by staff elected or appointed by the general membership. There can be several levels of staff, depending on the size and maintenance requirement of the particular canal system. The authority of the staff rests more with culture and tradition than law, and is not absolute. • The staff receive nominal payment for their services, generally in the form of in-kind (wheat) from the membership. The payment structure is variable and semi-voluntary (linked to individual water user satisfaction, tradition, and peer pressure). • The traditional physical and social systems, are well established and relatively successful from a historical perspective, though under considerable strain due to various environmental and political pressures. • The traditional mechanisms for water distribution are largely obsolete, technically with respect to currently available technologies and socially due to recent changes in land use and population distribution. • Existing capacity to manage, operate and maintain equipment, large infrastructure and/or advanced technologies is extremely limited.

5.4.3 Rationale for MO&M and Guiding Principles

A community owned irrigation system is, almost by definition, a “common good”. Members must consider both personal and communal interests for the system to be effective and sustainable. The membership of a communal irrigation system must achieve (at a minimum) three principal objectives:

69 Western Basins Project Final TA Report – July 2005 i) Effective and responsible management as necessary to implement (ii) and (iii) below. This generally requires mechanisms to pool and divide available resources and to resolve disputes. ii) The operation of the irrigation system, so that all water users, irrespective of their location within the system, receive a water allocation in conformance with their rights as system members; and iii) Mechanisms to assure adequate maintenance of the irrigation system, such that the irrigation (and sometimes drainage) infrastructure is maintained at (or improved) so that irrigation water can continue to be delivered in a manner seen as fair and equitable by the membership

Fundamental to the precepts of community-based irrigation in general, and to the recommend principals and methodologies of the Western Basin Project, is the assumption that the system owners themselves are capable of successfully managing, operating, and maintaining the community irrigation systems. The ability of the communities be included under the ADB Western Basins Project (WBP) to undertake these responsibilities, as they historically and currently exist are well demonstrated by the continued successful functioning of the irrigation systems under consideration. In fact, they have been doing a commendable job for generations, considering the constraints, though years of conflict, drought, population pressures and continued political instability have placed a strain on the physical and social systems.

The design of the proposed Western Basins Project (WBP) has attempted to carefully weigh the balance between the potential benefits and risks involved in introducing methods and technologies involving higher management or operational requirements. As the WBP will be working primarily with established irrigation systems, existing procedures for these systems are well established. Though technically obsolete in certain respects, the methods historically (and still) used for water allocation and distribution are a part of the social fabric, and remain effective and appropriate in the local context. The general recommendation for MO&M, and also reflected in other aspects of the Project Design, is to attempt to utilize and strengthen existing social systems and technologies, rather than replace them. The objective is not to attempt to maintain the status quo, but rather to recognize and incorporate the benefits of the existing technical and social systems, including established management, operations, and maintenance methods.

Significant constraints also must be acknowledged, especially related to the technical capability and support services required to implement and maintain equipment and physical infrastructure. Strengthening of the capability of the membership and staff of the Community Irrigator Institutions and government agencies to undertake these responsibilities will be required. Specific recommendations on how this will be accomplished are included in the Capacity Building Specialist Report.

Abundant opportunities do exist, though, for construction and rehabilitation of beneficial infrastructure, both traditional and updated technologies. The introduction of additional infrastructure and new operational tools and methodologies as proposed under the WBP will significantly expand the capability of the irrigation systems to deliver water reliably and equitably. Associated benefits will include increased household income, food security, and health, to name a few. However, to realize and sustain the benefits, the associated MO&M will be somewhat more demanding than existing requirements.

Where new technologies, methods, or institutions are proposed they have been carefully considered. Proposed changes or introductions are deemed to either have a high probability of acceptance, or the potential benefits are seen to greatly outweigh the risks.

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5.4.4 MO&M for the WBP sub-projects

5.4.4.1 General Comments and Recommendations

Recommendations and guidelines for the management, operation and maintenance of the WBP community operated irrigation systems are provided in addition below. A few of the most critical issues which must be emphasised are:

• A local community organization dedicated to the operation and maintenance of the irrigation system must exist. Ideally this organization will have a formal structure and legally recognised status, though this is not necessarily essential to the successful operation of the system or sustainability of the organization. Within the local context, these organizations already exist, generally in the form of semi-formal associations of system landowners. The existing MO&M staffs can be strengthened during the course of the Project, with the possible goal of eventual conversion to a WUA. A sketch of a typical management structure is provided in Figure 5-13 below. (For the purposes of this section, these organizations are termed Community Irrigator Institutions (CII), to differentiate them from more formally established Water User Associations (WUA). The CIIs within the WBP project area have a management and staffing system based on longstanding historical traditions. This management/staffing system consists of a wakil (head manager), a number of mirabs (canal managers), a number of bandwan and sarbandis (operations staff controlling the intakes). There is 1 wakil per major canal system, and various members of other positions depending on tradition and the particular needs of the membership. These persons are collectively termed the “CII staff” within this section. The CII staff are empowered to mobilize labour for irrigation system maintenance and emergency repairs and also to collect a nominal service fee from the membership (though actual collection rate varies). The effectiveness of the CII staff is often constrained by lack of facilities, training, legal status, etc. These indigenous organizations are, by and large, fulfilling the essential functions of the more formally established WUAs that exist in other countries (and in some locations within Afghanistan).)

• CII staff must understand essential water management techniques. For example, in many locations within the systems under consideration water abstraction is accomplished through long established fixed-width outlets. This is an effective and low-maintenance technique, well adapted to the currently existing operational regime. Project interventions will allow improved and more effective distribution and use of water, though the mechanisms for distribution may, in some cases, alter somewhat. It should not be assumed that the system staff are familiar with the operation and maintenance requirements of new infrastructure.

• System staff must have clear rules for system management and operation. It is important that the members of the systems develop and agree on the operational rules themselves, in response to perceived needs, preferably before the need becomes a crisis. For example, water allocation, distribution, maintenance, animal control, and free rider issues must be addressed. The existing CIIs have a depth of established tradition, though this should preferably be formalized in the form of written documentation, and unclear situations resolved. The CIIs may need assistance from an outsider with more experience (Project or Counterpart staff) in order to formulate and refine their thoughts, but not to proscribe or enforce regulations.

• When involved in structural works, regardless of the specific technologies used, one of the most effective means to minimise MO&M requirements is through proper design, construction supervision, and quality control. Many structures fail, or require premature repairs due to poor construction techniques and/or poor quality control. For example, concrete should be fresh, and mixed to correct ratios of water and aggregate, using

71 Western Basins Project Final TA Report – July 2005

cement, water and aggregate of suitable quality. Canals should be designed and constructed with side and running slopes appropriate for the soil of that particular reach. Fill sections should be properly compacted in lifts, and protected with riprap or plantings, as appropriate. Backfill around all structures should receive special attention, placed in layers and thoroughly compacted. Various construction specifications are in use internationally, though no set of standards and specifications has been nationally adopted within Afghanistan. The important consideration is that structures are designed and constructed to an acceptable standard. Standardized specifications which can be referenced during design and monitored during construction are essential. The construction guidelines and specifications developed by the American Concrete Institute, for example, are adequate and appropriate for concrete works, specifically covering essential items such as criteria for strength, environmental factors, cement and concrete terminology, standard tolerances for concrete construction, etc. Other alternative equivalent standards exist and can also be used.

Schematic of typical structure of Western Basins CII

General Assembly

(Farmers and Agricultural Land Owners) Local Government and Non-Government Management, Operations and Maintenance (MOM) Agencies Staff (Provincial Irrigation Department, Wakil Other local (System Manager) government agencies,

Badwans Mirabs and Sarbandis

General Assembly (Farmers and Agricultural Land

Figure 5-13: Typical structure of Western Basins CII

5.4.4.2 Current MO&M Practices

The MO&M of the irrigation systems within the Western Basins is conducted by the farmers and landowners involved, not by the government or other external agency. In many systems there are staff who manage water distribution operations and organize communal labour for maintenance and repairs. There are a variety of variations on the theme, which are well covered in the sociologist’s report. Smaller systems may have no “formal” staff, basic management and operations functions are simply conducted by the irrigators (and/or other water users) with a minimum of organizational overhead. Where “formal” staff exists, these persons, through a process of appointment or election by the general membership, have been given the mandate to manage, supervise and monitor the day to day MO&M activities of the CII. Within the proposed Project area, staffs of the individual CIIs, and/or the water users themselves, actively undertake the currently required MO&M functions, such as:

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Management • Overall and detailed management of the irrigation system • Management of system staff • Monitoring of scheme performance • Preparation of maintenance plans Operation • Monitoring water abstraction and distribution • Operation of the irrigation (and sometimes drainage) system(s) • Dispute resolution within the irrigation system • Representation and dispute resolution among other water users within the basin Maintenance • Inspection of irrigation (and sometimes drainage) infrastructure • Implementation of minor (routine), major (periodic, and emergency maintenance through labour (and sometimes cash) mobilization.

The current mechanisms form an excellent base for MO&M under the WBP. The existing management systems should be kept intact. However, strengthening of technical and managerial capabilities will be required, as discussed below.

5.4.4.3 Improved Management and Operations

MO&M Implementation Budget

The existing irrigation systems are constructed and maintained using high levels of labour and very little cash. The interventions supported by the WBP will typically reduce labour, but, unavoidably, will require a nominal level of cash inputs. Post-WBP operations and maintenance will necessitate items such as cement, fuel and various other supplies for operations and maintenance. Infrastructure, equipment and vehicles provided under the project will require maintenance. Staff salaries are presently paid either in-kind or by funding sources outside the membership. This practice is of questionable sustainability in the face of the changing social environment, and its future viability must be considered. (It is not unreasonable, though, to assume that some management and staff functions will be filled by volunteers, as is the case in many small low-overhead membership organizations.) Additional management related costs such as an office will likely be incurred. However, under even modest assumptions, the benefits resulting from project interventions should offset the increased costs for MO&M many times over. Estimates of the incremental costs for MO&M as a result of Project interventions are estimated at about $12 per hectare, on average. (See Appendix A for estimates of existing and future O&M costs for the core sub projects) This compares with a projected average benefit at full development approaching $500 per hectare. If as little as 2 to 3 percent of project benefits can be recycled back into the MO&M budget in the form of cash, the essential activities requiring cash should be adequately covered. (See Attachments 8 (iii) and 9; On-Farm and Economic Analysis Reports).

It should also be noted that post-WBP MO&M requirements, though increased from pre- project levels, will be substantially lower than average for a number of years following WBP implementation. This will allow the irrigation system membership to shift to an increasingly cash based system over the course of, say, 10 years. This should be easily manageable, as benefits will be well developed before any significant incremental MO&M costs are incurred.

Though relatively minor in scope, the necessity for a cash budget will nevertheless be a significant change from established mechanisms, which mainly involve labour contributions from members. MO&M staff will need to begin to prepare more sophisticated work plans and associated budgets for the system operation and maintenance requirements. This implies

73 Western Basins Project Final TA Report – July 2005 establishing a mechanism for generating cash flow sufficient to fulfil the requirement for an effective and sufficient level of MO&M. This will likely take the form of a (cash) service fee, and the collection of service fees (see the section below) and the payment of cash expenses for MO&M will become important activities of the MO&M staff. Thus, within the course of WBP implementation, the MO&M staff’s responsibilities will be expanded to include:

Finance and • Preparing annual MO&M budget (cash, in-kind, and Administration labour) • Accounting • Billing and fee collection • Flow monitoring and record keeping • Provision of spare parts and materials • Oversight and maintenance of equipment

The workplan and budget should be prepared early in the calendar year in order to permit fees to be set and agreed before the start of the irrigation season. The need for a capital replacement fund for major items such as equipment and vehicles must also be considered. (Estimates are shown in Appendix A) Preparation of financial statements will be necessary for transparency and ensuring the support of the membership. The operating budget will indicate projected income and expenses of the CII for the upcoming year. Projected income and expenses must balance (any amount to or from savings treated as expense or income). Past year and upcoming year budgets should be discussed at General Assembly Meeting and be amended if necessary.

Examples of income and expenses are: Income Expenses 1. Fees for water delivery service 1. Staff salaries 2. Payments for (special) maintenance 2. Office rent services 3. Office supplies 3. Penalties 4. Purchase of equipment and/or materials 4. Interest from loans of bank deposits 5. Payments to contractors 5. Grants or contributions 6. Fuel and other transportation costs 6. Repayment of loans 7. Vehicle purchase / maintenance costs 7. Other income 8. Communication costs 9. Taxes 10. Deposits to Savings 11. Other expenses

Generating Cash Income

A mechanism for generating cash for certain aspects of MO&M will be necessary. This generally takes the form of an Irrigation Service Fee (ISF). This will be in addition to, or may eventually replace, the existing traditional in-kind tithe to the operations staff. The amount of ISF should be sufficient to adequately cover the necessary MO&M costs. An effort should also be made to receive an equitable payment from non-member water users, or to eliminate service to these entities.

The basis for calculation of an ISF, method of collection, etc., should be considered and adopted by the General Assembly. There are a numerous possible mechanisms, which will not be detailed here. The most feasible for adoption will be a system similar to that currently

74 Western Basins Project Final TA Report – July 2005 in use by the CII for paying staff. The WBP can be of substantial assistance in developing, formalizing, and to some extent standardizing the ISF mechanisms and levels. The most important consideration is that sufficient income is generated to conduct the necessary activities.

As a supplement to, or possibly as an alternative to the ISF, the possibility exists for the CII to raise funds by selling / renting water to the membership or other buyers. Though a culturally sensitive issue, active trading in water is reportedly regularly conducted within the systems (and perhaps among systems). Under this scenario, “new” water, unclaimed to date by historical users within the system, and made available by the interventions (system improvements) supported by the WBP, would be sold / rented. This option will rely on the use of reliable water measurement data, as discussed below.

It is important to realize that functional literacy may be as low as 50% among the membership of some of the CIIs to be included under the WBP. The abilities to undertake the anticipated financial and administrative responsibilities outlined above can not be lightly assumed. At the modest level anticipated, however, over the term of implementation, these skills can be developed.

Comments above regarding MO&M practices pertain to existing systems (as opposed to the possible development of new canals and command areas). If the WBP becomes involved in the construction of new canals feeding significant areas of previously non irrigated land, most of the above commentary and recommendations will still apply, though the possibility of implementing other mechanism for water distribution and other aspects of MO&M will be easier to explore.

Inventory of Irrigation Infrastructure

In order to design and implement effective MO&M, an inventory must be developed of all canals, drains, roads and structures within the irrigation system of the CII, i.e. primary, secondary, tertiary canals, drains, division boxes, culverts and other structures, roads and road crossings, etc. The particulars of all works should also be detailed in the inventory. The particulars should include a designation or code number of the different items, their length and relevant dimensions, hydraulic capacity, and construction material (earth, concrete, steel, etc.). The inventory should also clearly indicate which hydraulic works is the responsibility of each mirab. Whenever changes are made in the irrigation and drainage systems the inventory should be updated.

The inventory must be in written form, and should also be stored on computer as part of a comprehensive database maintained by the future Basin Management Authority.

In addition, and equally necessary to implement MO&M responsibilities (especially financial and administrative components), a written record of both water user association members and other water users is important for the determination of hydraulic calculations and service fees. This includes a record of all water users, e.g.: garden plot farmers, government land, village/municipal use, etc;

Point (i) above mentions the recording of the irrigated area and cropped areas within the list of CII members and other water users. Associated information collected should include: • The name of the farmer (irrigator) • The plot number or cadastral number specific to the farm area • Farm / plot area • Percentage of area for irrigation • Area breakdown of specific crop(s) • Soil type and slope

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• Historical water right • Actual use (measured or estimated)

Maps and Drawings

Maps are a vital asset to the CII MO&M staff when making water distribution and maintenance plans. They can also be used to indicate the location of problems and shortcomings, i.e. operational deficiencies or repair needs, thereby visualizing the problems and enabling the allocation of priorities to operation, maintenance and repairs.

Maps should include: i) A to-scale drawing depicting all system boundaries, main canals, water control structures, drains, roads and crossings, etc.; ii) A schematic map showing system layout, canal flow capacities, etc. iii) A cadastral map which shows the areas served by the system, including individual farm boundaries for both the CII members and any non-members served, preferably to-scale. Such a record allows accurate irrigated and cropped area to be determined. It also allows for accurate location of the irrigated land with respect to the irrigation supply canal and off-take.

Maps should also be available at the (future) Basin Administration, Provincial irrigation Department Office and at the district office (if applicable).

The WBP will assist in the preparation and updating of system maps during the period of Project implementation.

Water Measurement: Type, Rationale, Locations

Measurement of the flow of irrigation water is a requirement for efficient management of water within any irrigation system. Within the WBP sub-projects, due to the characteristics of the established traditional flow management system (fixed dimension constant flow off- takes), the usual requirement for specific flow measurement structures at canal off-takes is somewhat reduced. The majority of the fixed-width off-takes should serve adequately as flow measurement structures. They will need to be individually calibrated, though this is a simple procedure, well within the capabilities of the WBP project staff (and mirabs, after training). Where new structures are required, long-throated flumes or broad-crested weirs are recommended for simplicity of design, construction, and monitoring. The purpose of monitoring flows is to: First, a detailed knowledge of flow distribution within the system will serve to identify inefficiencies, losses and inequities; Second, and equally important, a record of abstractions and distribution will provide documentation for defending historical water rights under a future legal system of water rights and allocation. Additionally, baseline and ongoing flow measurement could potentially provide the basis for an important source of revenue for the CIIs, as outlined in the preceding section and the Mirab and Water User Association Report in Attachment 7.

Flow measurement structures are recommended at the following sites: i) Main intakes to primary canals from rivers and/or other sources; ii) Along main canals at important system management boundaries; iii) Main off-takes from primary canals (the existing fixed-width off-takes should serve, in the majority of cases);

5.4.4.4 Improved Maintenance

In general, the types of maintenance required for the ADB Western Basin Project systems fall into three broad categories: • Routine Maintenance

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• Periodic Maintenance and Rehabilitation • Special Maintenance / Emergency Repairs

Routine Maintenance

Routine maintenance is the category which falls directly within the CII’s sphere of both capability and responsibility. Unfortunately, it is also a category which is likely to be neglected or deferred unless the CII and constituent farmers/land owners clearly understand their responsibilities as system owners, including structural interventions supported by the proposed Project, internalise the benefits of performing such maintenance, and have the technical knowledge and the organisational structure needed to effectively monitor and maintain the system.

Routine maintenance covers small-scale repair and restoration work that need to be done on a regular (routine) basis throughout the year as needed. Routine maintenance has standard procedures, standard planning, and standard implementation. Routine maintenance activities and duties require a plan and it must be implemented by the staff and membership according to the maintenance plan.

If a scheduled plan, i.e. activities and calendar (timing), is not prepared and implemented by the MO&M staff, then slippage will occur in the program, some maintenance will not be done, and a more serious problem may develop. Examples of routine maintenance are: minor canal de-silting and bank repair, access road repairs, minor earthwork repairs, metalwork painting, turnout maintenance, vegetation removal, etc.

Only a relatively moderate level of improved technical, organisational and financial capability is needed to effectively operate and maintain the sub-project systems. The WBP will work closely with the MO&M staffs to strengthen their capabilities in these areas.

Responsibility for correcting problems involving routine maintenance must lie with the CII, under the direction of the MO&M staff. This implies that the MO&M staff must have the ability and authority to mobilise manpower, technical, and financial resources. Most irrigation communities in Afghanistan have a strong tradition of co-operative labour mobilisation, so this is not foreseen as a problem. However, the same cannot be said for mobilisation of financial resources and technical capability. The economy of rural Afghan villages remains largely non-monetarised. However, during the course of the implementation of the ADB Western Basin Project the MO&M staff should develop mechanisms for collecting sufficient cash funds for routine maintenance requirements, including reasonable quantities of tools, materials, fuel, etc. which may be needed. The specific mechanisms should be flexible, according to the particular WUA. The important factors are:

1. The MO&M staff has the ability to mobilise labour; 2. The CII, under the direction of the MO&M staff management system has the ability and willingness to mobilise adequate financial resources; 3. The MO&M staff has adequate internal technical capacity or access to technical support resources.

In practice, certain costs may never accrue until the structures suffer catastrophic failure during an extreme flood. In such a case, the replacement of major structures may be beyond the capability of the CII. Nevertheless, the MO&M staff should make provision for routine maintenance of all structures within the system, which is the best way to ensure that structures maintain their design capacities. Routine maintenance costs and labour should be relatively low for several years following construction. As the system benefits increase over time, the CII membership should have the increased financial resources needed to address the full scope of routine and periodic maintenance requirements of the system. The maintenance requirements for canal weeding and de-silting are especially critical, since the

77 Western Basins Project Final TA Report – July 2005 capacity of the system to deliver water will rapidly diminish if this is not adequately and regularly performed. Labour requirements for de-silting, in particular, are fairly substantial, estimated at approximately 20 labour days per hectare per year, average. This is not foreseen as a problem, as this work has been historically carried out through communal labor mobilization. The WBP anticipates the provision of certain items of maintenance equipment which will reduce the annual requirement for manual labour for canal cleaning.

The CII must understand that neither the WBP nor the Government can be accountable for premature rehabilitation or emergency maintenance which might arise from lack of routine maintenance. The Government does not have the financial or personnel resources to undertake these responsibilities. However, the most cost effective solution to total maintenance requirements is to prevent premature failures through an adequate system of routine maintenance. To this end, the Provincial Irrigation Department (and/or the future Basin Management Authority) should be available to provide timely and appropriate maintenance advice and expertise to the MO&M staff. The CII should not expect the Government or the Project to provide equipment or materials which may be needed as part of routine maintenance.

Periodic Maintenance and Rehabilitation

This type of maintenance covers repairs that are too large to be undertaken at any time during the seasonal delivery of water, and must be planned when the irrigation system is shut down. Periodic maintenance is generally a yearly task but can be twice yearly depending on cropping patterns and crop irrigation requirements. Examples of periodic maintenance are: Machinery and Equipment overhaul, repair, cleaning and de-silting of main irrigation canals, inverted siphons, infiltration galleries, weir basins, large turnout / division structures, measuring structures, replacement of gate sheets, seals and operating components, etc.;

Periodic maintenance requirements will be identified through regular maintenance inspections and surveys by the MO&M staff, who will then note these requirements for inclusion in the annual maintenance plan. Implementation of labour intensive work tasks will be through volunteer (“hashar”) work groups or, if necessary, the wakil can arrange for an investigation, survey, design, and cost estimate for contract tender.

Table 5-12 provides examples of routine and periodic maintenance activities.

Table 5-12: Irrigation Infrastructure Maintenance Examples: Typical Type of Type of Maintenance Comments & Consequences Maint. Structure Requirement Routine Main Intake Desilting, river Problems with the main intake from the source (minor) bank training (typically the Hari Rud) have serious consequences and protection, for the operation of the canals managed by the CII. Periodic river bed Frequent maintenance is required the during (major) alignment. irrigation season. An oversupply during peak flow periods will potentially damage canals, cause Emerg- flooding, cause wastage. A sustained shortage of ency water will decrease in crop yield.

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Typical Type of Type of Maintenance Comments & Consequences Maint. Structure Requirement Routine Main Desilting, bank Silt and/or weeds in the canals will result in (minor) Canals and bed difficulties in conveying and distributing water. levelling, Excessive leakage from the canals will reduce the Periodic embankment amount of water available to the farmers leading to (major) repair, weed reductions in yields. An uncontrolled breach can control have serious consequences including flooding and Emerg- crop loss. ency Routine Division / Desilting, Difficulties with operation of the division / off-take (minor) Off-take concrete structures will result in poor distribution of water Structures patching, scour between canals, inequitable distribution to the tertiary Periodic control units, farmer dissatisfaction. (major) Routine Minor Desilting, bank Excessive siltation, weed growth, or leakage from the (minor) Canals and bed minor canals will reduce the amount of water levelling, available to the farmers leading to reductions in crop Periodic embankment yields. (major) repair, weed control Routine On-farm Desilting, weed Poor bank structure, compaction, weeds or silt in the (minor) Canals and control, turnout farm canals will result in difficulties in distributing field ditches repair water efficiently at farm level. Water loss / waste Periodic results in shortages, flooding, loss of land (major) productivity and crop yield

Special Maintenance / Emergency Repairs

Emergency maintenance covers the urgent or temporary repairs that are required to maintain water delivery following a sudden failure of the system such as; equipment failure, a structure washout, an earth canal breakout, a flume collapse, or the need for the construction of temporary canal or flume sections.

Emergency maintenance will be implemented according to the technical, physical and financial resources required and available. Emergency maintenance cannot be deferred; it is urgent and requires immediate action. Emergency maintenance will in general require a canal closure thus inconveniencing farmers. Therefore to minimize the inconvenience, emergency maintenance should be implemented as soon as possible and completed as quickly as possible.

How to Prevent and Minimize the Impact of Repair / Failure: • The best way to avoid emergency repairs is through a diligent program of routine and periodic maintenance; • Take necessary measures during the pre-irrigation season. De-silt canals before the irrigation season. Cut canal side slopes to minimize earth sloughing. Remove accumulated spoil from canal banks. Apply weed control techniques against unwanted vegetative growth; • Keep spare parts for gates, etc., in CII warehouse. Replace any malfunctioning parts or devices in advance of the irrigation season. During the off season dissemble removable parts for safe keeping. • During the irrigation season keep maintenance and repair equipment and personnel ready for immediate action. • Grease gates and valves and take preventive measures against corrosion. Provide patrolling against human and animal damage. Place warning signs and protective barriers if necessary.

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• MO&M Staff should have the ability to mobilise labour and funds in response to these events; • Special and emergency maintenance can be included, in a general sense, in emergency maintenance planning at both CII and government levels; • Major damage, beyond the ability of the CII to repair, may require assistance from the government (or foreign aid agencies) which should, ideally, also have mechanisms in place to respond to natural disasters.

5.4.4.5 Facilities

To be able to implement improved operations and maintenance an CII’s resources for MO&M will ideally include office space, a workshop, and a storage warehouse / secure area for the storage of vehicles, machinery and equipment. Within the local context, development of these typical resources presents challenges. Lack of line electricity, for example, is a fact of life outside of Herat, and is a constraint to the range of tools which can be effectively used.

Community Irrigation Institution Office

It is assumed that existing office and storage space can be located, but minor furnishing and equipping will likely be required. Funds from the proposed Project need to be allocated for the following types of office needs: i) Minor rehabilitation as required; ii) The purchase of CII office equipment, as follows: • Filing cabinet(s) • Office desk and 4 chairs • White boards – message boards – as necessary • Bookshelf with locking cupboard for the storage of office supplies

Machinery Workshop, Tools and Equipment

Community Irrigator Institutions cannot be expected to implement Management, Operation and Maintenance (MO&M) without having available to them the proper facilities, vehicles, machinery, tools and equipment.

The WBP implementation plan includes a recommended budget allocation for the purchase of MO&M equipment. It is recommended that this equipment will be purchased as soon as convenient after project commencement. A representative equipment list is included below, and will need revision at the time of Project implementation. A CII has the responsibility for the operation and servicing, and at times purchase, of varied types of vehicles, machinery and equipment so as to manage and implement MO&M procedures. Therefore a CII / WUA should have at its disposal a suitable area that can be used, upgraded and stocked with tools as a Machinery Workshop.

The MO&M equipment listed in Table 5-13 is a general guideline to the type of machinery and equipment that are recommended to address MO&M needs of a typical system of roughly 4,000 ha irrigable area. Larger or smaller systems may require proportionately more or less equipment. It is recommended that the WBP procure and provide an initial tranche of MO&M equipment to the CII involved in the WBP. Twenty-five dollars per irrigable hectare is suggested as a reasonable figure for WBP budgeting purposes. Issues related to ownership and maintenance of MO&M equipment must be resolved in advance of equipment delivery.

Equipment purchased should be from a brand that has local representation in the form of factory-trained technical support and adequate parts stock.

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Table 5-13: Guideline for MO&M Equipment for a typical CII (4,000ha) Description Quantity Unit cost Total Skid-steer mini-loader or mini-backhoe 1 $40,000 $40,000 Walking-tractor, 15+ hp with trailer set and 4 $7,500 $30,000 small rear scraper attachment Motorcycles 125 cc (for MO&M Field 4 $1,500 $6,000 Technicians) Bicycles (good quality mountain bike, 1 per 12 $300 $3,600 mirab) Topographic survey equipment: level, tripod, 1 set $1,500 $1,500 staff, tape Handheld GPS, basic model 1 $100 $100 Hydraulic or mechanical hoist and/or jacks and jack stands for the servicing of machinery and 1 set $300 $300 for mechanical repairs; Essential tools for repairing and servicing vehicles: large and small good quality open end 1 full set $1,000 $1,000 and socket wrenches, screw-drivers, pliers, locking toolbox, etc. Diesel concrete mixer 0.25 cu m 1 $6,000 $6,000 “Jumping Jack” soil/earth compactor / tamper 1 $4,000 $4,000 PTO (tractor) powered water pumps for dewatering construction and maintenance 2 $2,000 $4,000 worksites Gas powered chain saw 1 $500 $500 Picks, shovels, buckets, wheelbarrows, lump $3,000 $3,000 sandbags, scythes, etc. (as required) Total: $100,000

Note that the work environment in the Western Basins is very dynamic. Many changes are underway or on the forefront. By the time of WDP implementation, other or additional equipment may be recommendable. Options include vehicles for materials transport (pick- ups) for CIIs, and small or large construction equipment (Skid-steer loader, backhoe, mini- excavator, full size excavator, bulldozer, etc.) for government counterpart agencies (Provincial Irrigation Departments or Basin Administration Authorities).

Yard/Warehouse/Parking Area for Storage of Materials, Equipment, Vehicles

The size of the storage yard/warehouse is dependent on a number of issues relative to the scale of activities undertaken. The need for storage of MO&M materials and equipment is clear. The yard/warehouse should be fenced (security fencing preferable), gated and lockable, ideally with weatherproof facilities for materials and small equipment and a covered area for tractors, motorcycles, and larger equipment. The facility should have an area for the

81 Western Basins Project Final TA Report – July 2005 storage of diesel and fuel tanks, with adequate fuel storage facilities, and located at a safe distance from all machinery in case of fire. The MO&M will typically require facilities for the storage or safe keeping of materials and equipment such as: i) Cement: Secure and dry storage sufficient for seasonal Routine Maintenance needs; ii) Steel re-bar and reinforcing mesh, etc: Secure and preferably covered storage; iii) Paint for the protection of irrigation off-take/outlet gates and other exposed steel, signs, etc.: Protected from elements and secure from fire hazard; iv) Oil, grease, other lubricants and sealants, etc., for vehicles, machinery, equipment, and maintenance of irrigation regulatory gates: Protected from elements and secure from fire hazard; v) Small MO&M equipment: small soil or earthwork compactors/tampers, spades, hoes, buckets, wheelbarrows, sandbags, scythes, motorized grass cutters, brush-cutters, etc.: Secure and preferably covered storage; vi) Larger equipment: concrete mixer, tractors, trailers, motorcycles, etc.: Secure and preferably covered.

The ideal facility would have office, machinery workshop, and yard/warehouse/parking area, and all within the same compound.

If mirabs are to accept fee payments in-kind (produce) for later sale, then they may also need storage area(s) with provision for produce storage.

The CII should be sufficiently equipped to manage and implement all routine maintenance tasks and moderate sized rehabilitation and emergency maintenance tasks. Large tasks should be implemented by contractor. Any MO&M equipment heavier than that listed above (such as hydraulic excavators, bulldozer, etc.) has too high a capacity for use within one CII, and the CIIs have inadequate financial and technical capacity to operate and maintain this type of equipment. The most cost effective approach is for CIIs to contract with outside organizations for services requiring such equipment, as required.

The tendering of maintenance works to outside organizations raises some issues, not only with respect to the Western Basin Project but also for all areas of Afghanistan. The main organizations that would in all probability be contracted for these works would be either private contractors or the maintenance departments of the Provincial Irrigation Departments or Basin Management Administrations. Limitations in the capacities of these agencies to support maintenance activities have influenced the design of the WBP. Efforts have been made during the planning phase, and must be continues during implementation, to focus on simple technologies and high quality construction.

5.4.4.6 MO&M Monitoring

In order to provide information to the membership on how well their system is performing, a set of performance objectives and performance indicators have been proposed for irrigation system performance, as well as maintenance, financial, agricultural, environmental, and other aspects. Comparison of each indicator with the performance objective will assist the MO&M staff and the membership to identify trends, improve performance, and facilitate an appropriate course of action by the MO&M staff. These indictors are detailed in the Monitoring and Evaluation Programme (Appendix F) in this report.

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5.5 Extension of Irrigation System Rehabilitation and Development

The project process is based on the extrapolation of works to the study area. While the core sub projects (5) are principally focused on irrigation and flood protection, it is envisaged that the range of work in the extension stage may be expanded to include a wider range and type of works. These may include small dams for domestic and irrigation supply, weirs, rural water supply systems, and water harvesting. It will be at the discretion of the implementing agency, to identify and select these works in accordance with the project selection criteria.

Listed below in summary form are the rationale and principles for the extension of works under project component 2. These are: • Irrigation system rehabilitation is based on unit area (irrigable) cost of $550 per hectare8; • Total investment for extension of $22.3M (this is above the $7.7M for the core sub projects); • Approximately $5M to be invested in non irrigation works; small dams, weirs, water supplies. • Irrigation system rehab distribution ($) within sub catchment to be pro rata by: a. Irrigation command area per sub catchment (there may also be requirements for district distribution) divided 80% to Hari Rud, 20% to Murghab. b. Intensive to intermittent irrigation ratio 2:1 (River vs Wash supplies) (similar ratio for core sub projects). • Non irrigation works ($) to be allocated on priority works basis.

Table 5-14 presents a summary of the distribution of irrigation works by irrigable area and number of systems. It is based on the above rationale and inclusive of the core sub projects. It shows that the total area rehabilitated would be in the order of 49,100 irrigable hectares, which is approximately 20% of the total irrigated area with the study area. This would be split 80:20 between the Hari Rud and Murghab catchments.

Table 5-14: Distribution of irrigation rehabilitation works (irrigable area (ha)) Catchments Intensive Intermittent Total Area (ha) No Area (ha) No Area (ha) No Hari Rud Core sub projects 7,600 3 4,000 2 11,600 5 Extension of works 20,000 10 10,000 10 30,000 20 Subtotal 27,600 13 14,000 12 41,600 25 Murghab Extension of works 5,000 2 2,500 3 7,500 5 Total 32,600 15 16,500 15 49,100 30

Based on the above criteria it is estimated that more than 30 major systems will be rehabilitated by the project, of which more than 20 will be in the Hari Rud and about 5 in the Murghab.

The above rationale and numbers form a starting point for the development of the investment programme presented Section 10.4.

8 Plus machinery (US$ 25/ha) capacity building (US$20(post Yr 2) per ha) and agricultural support (US$150/ha), total of US$ 745/ha.

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5.6 Selection Criteria

There are many important issues which must be considered when identifying a WBP subproject. These are discussed in detail in the WBP Final Report. Issues related to irrigation Sub-projects have been summarized and incorporated into the selection criteria below. All WBP irrigation sub-projects should meet all of the selection criteria included in Table 5-15, below. Any “NO” responses will exclude the Sub-project unless an exemption or suitable explanation is offered by the implementation Project. The simple form below can be used for preliminary screening of potential sites.

If the number of sites (or associated physical area) meeting the preliminary screening greatly exceeds the WBP’s resources, then a second level of selection will be required. In this case the implementation phase can assign scale or weighting factors to the various criteria as a basis for competitive selection.

The criteria below are intended for use in the selection of irrigation-related sub-projects. However, the WBP may also undertake a wide variety of other water resource and/or agricultural development work. These other works may be closely linked with specific irrigation development sub-projects, or completely independent. It is not possible to develop specific selection criteria for the full range of interventions possible under the WBP. The implementation phase will need to assess unique or alternative works or sub-projects on the specific merits of the proposal. However, the principles reflected in the criteria below are broadly applicable, and can be modified to fit most circumstances.

Table 5-15: WBP Irrigation Sub-Project Initial Selection Criteria Element Criteria/Indicator YES NO Technical 1 Is the physical site suitable for the rehabilitation or construction of new irrigation infrastructure using technologically simple structures or other simple and appropriate technology?

2 Are the soils and topography suitable for constructing irrigation works, including adequate natural drainage, and not subject to risk of severe soil movement or erosion?

3 Are Sub-projects of a size and scale such that the participating farmers are capable of independently operating and maintaining the systems after construction activities have been completed?

4 Is the estimated cost per hectare for irrigation works less than approximately $800/ha?

5 Can the volume of peak water deliveries (May) be increased with rehabilitation; or can the volume of water deliveries post June be increased? (increases of more than 10% and 30% respectively would be desirable) Social/Socio- economic 1 In most communities a WBP sub-project will become the community's largest undertaking and will require commitment from all the participants. Have the intended beneficiaries, through their local decision making structures, indicated enthusiasm for the project and a willingness to operate and manage it, including identifying

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Element Criteria/Indicator YES NO local resources (cash and/or kind) that they can contribute?

2 Do the intended recipients show a willingness and ability to act cohesively (preferably as demonstrated through the previous implementation of other community or irrigation development activities)?

3 Do the intended recipients have a decision making structure that (at a minimum) forms a basis for identifying needs, accessing resources, and distributing benefits in an equitable manner, inclusive of all members of the irrigator organization?

4 If the Sub-project is intended to combine presently separate canal systems, are farmers capable of cooperatively and equitably operating and maintaining the systems after construction activities have been completed?

5 Do the intended recipients have mechanisms in place (rules and regulations) that allow meaningful input into decision making throughout the Project implementation cycle from all intended beneficiaries?

6 Will the sub-project have a positive impact on a significant portion of the local community?

Agricultural, Ag- economic 1 Does the proposed Sub-project have the potential to produce higher yields through improved irrigation facilities and cultivation practices?

2 Does the proposed Sub-project have terrain and soils which are suitable for the cultivation of various locally common irrigated crops (a minimum of USBR classification of marginally suitable, and/or otherwise demonstrated as suitable)?

3 Does the proposed Sub-project provide the possibility for an expansion of the present cultivated area or an increase in cropping intensity? (Sub projects with high potential will normally be expected to increase cropping intensity and the area cultivated to second crops with rehabilitation)

4 Does the proposed Sub-project provide the possibility for co-implementation of other WBP components (Does there appear to be technical scope and community interest in water management techniques, agricultural support services, horticulture, livestock management, input credit and micro finance etc.)?

5 Does the projected incremental increase in farm income substantially exceed the projected incremental increase in annual recurrent costs (such as agricultural inputs, maintenance and repair of the irrigation infrastructure,

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Element Criteria/Indicator YES NO etc.)? Environmental 1 Will the proposed Sub-project have a significant negative effect on other established water or land users in the watershed?

2 Is the proposed Sub-project clear of encroachment or negative impacts upon existing or proposed protected areas (parks, reserves), historical, cultural or religious sites?

3 Is the proposed Sub-project clear of encroachment or negative impacts upon any and all existing biodiversity sites and/or endangered species of flora and fauna?

4 Is the proposed Sub-project free from any significant negative effects to surface water hydrology and/or natural drainage in the area?

5 Will the proposed Sub-project be free from any other significant negative environmental effects such as catchment degradation, increased silt loads, water pollution, etc.?

Economic 1 Is the proposed Sub-project conducive to the ADB requirement of at least 12% overall EIRR?

2 Does the proposed Sub project have a higher economic NPV than alternative and mutually exclusive Sub- projects? Security 1 Is the proposed Sub-project free from known exceptional security risks: (e.g.: mines, UXO, active armed conflicts, etc.)? Mitigating9 Is there a pressing need for a sub-project that can be Circumstances accommodated through the WBP such as repairs to a canal/structure following a freak event like a storm, localized severe flood or similar. Is there an opportunity for cooperation with another donor/implementer with a common outcome such as combining to overcome and/or address a specific problem/need that has arisen.

9 The two criteria below are not Exclusion Criteria, as are those above. Rather, they are Mitigating Circumstances Indicators, and a “Yes” response to either provides reason to give extra consideration to a potential sub-project.

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6 COMPONENT 3: AGRICULTURAL AND LIVELIHOODS SUPPORT SERVICES

6.1 Background

The goal of the agricultural services component is to design interventions in the areas for which structural engineering rehabilitation is planned which will stimulate increases in the value of production that would not be possible for the intended beneficiaries of rehabilitation to realise with their own resources alone. Rehabilitation works relieve primary constraints that are perceived to affect negatively most people in the target area, such as insufficient irrigation water, poor physical access or land degradation. Agricultural support can be more flexible and targeted, acknowledging that social and economic constraints vary in nature and severity between communities, socio-economic groups, households and individuals. Designing agricultural support therefore requires detailed knowledge of target groups, including specification of household and enterprise budgets, knowledge of access to resources, the decision making process, and social norms. This information is then used to classify the target groups, identify solvable constraints, and design the means of removing, alleviating or avoiding them. This is an iterative process. Different support service strategies have costs and benefits which have to be compared.

The indicative cost of providing agricultural support services to sub project areas (Jui Nau, Sari Pul Right bank, Yahia Abad, and Pashdan and Obe Washes) in the first three years of implementation are shown in Table 1‘Agricultural Services Working Paper’ in Attachment 8(iii) A total budget of US$ 1.6 million will be required, divided between the five service support components (water management services (14%), horticultural services (25%), livestock and veterinary services (14%) and trader credit for inputs (35%). The remaining 12% will be channelled to micro finance credit for landless and very poor households.

6.1.1 Regional Food Demand

The PPTA working paper ‘An Assessment of the Comparative Advantage of Irrigated Agriculture in Herat Province’ in Attachment 8(ii) describes the direction in which the irrigated agriculture sector is likely to move in response to changing domestic demand and the opportunities the region has to participate in international trade in agricultural products. The total level of irrigation rehabilitation in the Hari Rud expected within the next ten years as a result of all planned projects including WBP is about 70,000 hectares the majority of which will be under WBP. This will make a substantial impact on present production levels (section 4.3 and 5.1, Attachment 8(ii)). In addition to this and to meet the expected regional food demand by 2015, the following is anticipated: • Most incremental production will come from an expansion of the area irrigated and an increase in the proportion of higher value crops in the cropping pattern; crop intensification will play a less important role (section 6.2, Attachment 8 (ii)), so it will be essential to improve the distribution of water in rehabilitated canal systems • Irrigated wheat yields will have to increase from their present level of 2 tons per ha to 2.5 tons per ha to partially meet the regional demand of relatively disadvantaged consumers in rural areas (section 4.3.2, Attachment 8 (ii)) but it must be acknowledged that wheat has no comparative advantage in the Hari Rud. • Rice yields need to increase from 2.4 to 3.5 tons per hectare (section 4.3.2, Attachment 8 (ii)); with Salma Dam rice sufficiency in the Hari Rud will easily be achieved. • About 15,000 ha of rehabilitation in the Lower Valley will allow sufficient second cropping to meet the expected incremental regional demand for vegetables and potatoes of about 45,000 tons, but there may be technical problems associated with in-field irrigation of vegetables in the aggressive summer climate of the Lower Hari Rod (section 4.3.3, Attachment 8 (ii))

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• Assuming vegetable production difficulties can be over-come, storage and processing of locally produced vegetables and potatoes will be required to ease the effect of seasonality of production (section 4.3.3, Attachment 8 (ii)) • A 75% increase in milch cow numbers and increased milk productivity per cow by 15% to 1,012 litres per annum will be needed. Because no large scale milk collection and dairy processing exists in the Herat area at present, household ownership of one or two animals will have to be substantially widened (section 4.3.5, Attachment 8 (ii)).

6.1.2 Water Allocations and Water Use in Cropping

Water allocations are governed by traditional juafgau rights, and do not distinguish between the present irrigation requirements of different villages, crops and crop combinations. This leads to sub-optimal applications on all crops. To achieve an expansion of the irrigated area (where the largest component of benefits from rehabilitation can be obtained) and at the same time improve yields, it will be essential that firstly juafgau rights are realised throughout the canal system, and then that these are re-negotiated so that water applications better reflect the costs of delivering it and the value of the production obtained. For most rehabilitated canal systems in the Lower Valley there will still be insufficient water for the entire command, and local scarcities will persist. Improved water management services will be an essential component of WBP agricultural support services at both farm and canal level.

6.1.3 Inputs and Support Services

Once the limiting factor of water supply is at least partly alleviated, farmers will require more fertiliser, plant protection and improved seed. This implies that the second most important additional support service that WBP can provide will be improved access to crop inputs, particularly as on-farm fallowing is expected to reduce with improved irrigation, and increased rice and feed grain cropping will put additional strain on soil fertility in irrigated areas. A system which provides input allocations on credit would not only do much to raise grain yields to meet rural demand, but would also benefit small producers and sharecroppers substantially more than land-rich farmers. It would also give farmers flexibility in the choice of use of fertiliser, depending on their household consumption requirements and market opportunities.

Extension support for second cropping of vegetables will be an important responsibility of WBP, and will require incremental inputs, optimised water allocations, and possibly innovative irrigation systems, such as drip or sprinkler. This will be achieved through water management services, improved input supply and technical advice on horticultural production. Providing services for bulk vegetable storage and processing is outside the scope of WBP, and falls in the remit of the private sector. However, the project can and should support improved storage and processing of vegetable products at household level to expand the vegetable marketing season, which is currently very limited.

No large scale milk collection and dairy processing is as yet planned for Herat city. Veterinary services at village level are rudimentary since the collapse of the activities of the activities of the Dutch Committee for Afghanistan, though these are expected to be revived imminently under USAID’s RAMP. Both activities are outside the scope of the WBP as presently defined. However, given that the dairy enterprise is a higher value enterprise that benefits substantially from irrigation rehabilitation, and dairy cow ownership by rural households will need to be widened significantly to meet expected future demand, WBP will provide livestock and veterinary services to enable farmers in rehabilitation areas to improve both rainfed and irrigated fodder production, dairy cow health and management, and improved dairy processing at household level.

These support services are geared towards irrigators who will benefit directly from rehabilitation. Landless households get no such direct benefit. However, there are non-land

88 Western Basins Project Final TA Report – July 2005 based activities that will allow the landless to share some of the benefits of rehabilitation, and actively contribute to irrigated production. These include apiculture, sericulture, and poultry rearing, all of which have a high degree of gender equity in the share of benefits. Stall fed dairy cow ownership is not a land intensive activity and can make an enormous impact on the diet and household income of poorer families. All are small scale activities which are suitable for micro-financing.

6.1.4 Export Potential

The international demand for agricultural commodities produced under irrigation for which Afghanistan has a comparative advantage (in particular, some raisins, fresh grapes, peaches, pomegranate and fresh and dry apricots) will depend first on quality, and secondly on price. The PPTA working paper ‘An Assessment of the Comparative Advantage of Irrigated Agriculture in Herat Province’ In Attachment 8 (ii) notes that orchard and vineyard owners will only be motivated to intensify production if they have more secure marketing agreements with traders, either individually or collectively, and only the introduction of product grading and premium pricing will achieve sustainable quality improvements. Local processing and packing also needs improvement. Both farmers and traders need extensive support, much of which is outside the scope of WBP interventions. However, WBP has an opportunity to make a substantial impact on orchard and vineyard production in the region by improving irrigation supply, which can complement the present and planned interventions (both downstream and upstream in the production process) by other projects. These are described in the working paper. Therefore, WBP needs to capitalise on the high degree of farmer contact expected at scheme level by providing services to advise fruit and nut farmers on improved water management, to make productivity improvements in vineyards and orchards, to make trading contacts on behalf of the farmer service groups and to identify and support possibilities for farmer group marketing.

6.1.5 Implementation

Costs for Agricultural Support Services (ALSS) have been estimated in detail for rehabilitation areas in which the engineering is scheduled to be completed in the first three years of the project. These areas are Jui Nau Canal and Pashtan Wash (engineering completed in Year 2, 2007/08), and Sari Pul Right Bank, Yahia Ahbad Canal and Obe Wash (year 3, 2008/09). Areas and household numbers are shown in Table 6-1. The assumption is that ALSS activities would be established in the same year as engineering is completed, with the exception of Jui Nau, where activities to prepare the ALSS programme would take place in year 1 (2006/07) plus some procurement and preliminary work for Jui Nau and Pashton Wash. However, the main ALSS implementation in these areas would take place in the following year.

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Table 6-1: Planned ALSS Interventions: Areas and Households10 Sub project Command Irrigable Area in Farm Landless Total ha ha Farms Households Households Households Jui Naw 7,400 5,200 5,100 3,680 3,340 7,020 Sari Pur RB 2,000 1,600 2,000 1,655 845 2,500 Yahia Abad 1,100 900 1,000 845 300 1,145 Pashan Wash 17,500 6,000 6,000 2,200 2,200 Obe Wash 4,800 800 800 450 450 Total canals 10,500 7,700 8,100 6,180 4,485 10,665 Total washes 22,300 6,800 6,800 2,650 0 2,650 Grand total 32,800 14,500 14,900 8,830 4,485 13,315

The general principal of implementation is that project facilitators would assist in notifying communities in the rehabilitation areas of ALSS activities to follow from rehabilitation, identifying and forming agricultural service groups, and needs assessment. These groups would have the following characteristics:

• Water management service groups: representative of water rich and water poor areas of the system, and members of the main agricultural cropping patterns (grains, grains/fodder, grains/orchards & vineyards and grains/vegetables, etc) • Horticultural service groups: representative of orchard, vineyard and vegetable cultivators • Livestock service groups: representative of dairy cow owners, poultry producers and possibly small ruminant owners (at the discretion of the TA specialists responsible) and distinguishing between fodder rich and fodder poor households. • Landless households with interest in participating in apiculture, sericulture, poultry and shared dairy cow enterprises.

It will be important to ensure that wealth groups, or at least land holders with representative holding sizes are included in the service groups. The TA staff will be responsible for characterising the service groups, needs assessment and monitoring the ALSS demonstrated to each group. Note that training and monitoring of input credit and microfinance will be the responsibilities of the NGOs identified to implement them; but the TA staff should ensure that other programmes are congruent with other project activities.

Immediately after service group formation and needs assessment the ALSS project team, in association with DAAHF and DEW staff and credit agency support, will implement ALSS activities. These are envisaged to be, and have been planned as demonstrations but if an alternative approach is more appropriate (eg farmer field days, field schools, contact farmers etc) then there should be the flexibility to adjust the work programme within the overall budget. It will take a full season to establish and run demonstrations within the service groups. DAAHF and DEW staffs will receive training and will also have participated in establishing the ALSS programme in years 1 and 2. They should be therefore have the technical skills and knowledge of the project aims and objectives to contribute effectively to the servicing of the established ALSS programme in subsequent years.

10 Note that ‘Jui Naw’, ‘Suri Pur’ and ‘Pashan’ are alterative spellings of ‘Jui Nau’, ‘Sare Pul’ and ‘Pashdan’

90 Western Basins Project Final TA Report – July 2005

6.2 Description of the Services

6.2.1 Water Management Services

6.2.1.1 Activities

The activities of the Water Management Services component of ALSS is summarised in Table 6-2. Community mobilisation and needs assessment is scheduled to take place in all areas before implementation. Implementation will include training in canal management, in- field water application and scheduling, and the introduction of innovative on-farm water storage and irrigation technology in selected orchards and vineyards.

Table 6-2: Water Management Services: Activities by location Sari Pur Yasir Pashan Obe Jui Naw RB Ahbad Wash Wash Community Mobilisation & Needs Assessment farm ha 5,088 1,387 1,300 660 120 Canal management services canals 13111 In-field water management services demos 63341 Orchard & vineyard water management demos 32200 Training Days Support ot DAAH site 11111 Round distance from Herat km 60 350 300 100 350

6.2.1.2 Costs

The expected costs of Water Management Services are summarised in Table 6-3 (equipment, staff and transport), Table 6-4 (activities), Table 6-5 (locations), and Table 6-6 (expenditure category). Costs presented in these tables are exclusive of contingencies and other adjustments required for the project cost estimate. Training is omitted from the cost tables and presented elsewhere. The largest activity costs are for field crop irrigation demonstrations (21%) and demonstrations of irrigations in orchards and vineyards (21%). A further 19% of costs is directed to improving canal delivery services. The unit area cost of the services planned is about US$ 43 per farm hectare, over a farmed area of 8,000 ha. ALSS activities on the Washes are more expensive per unit farm area as the population density is much lower.

91 Western Basins Project Final TA Report – July 2005

Table 6-3: Water Management Services: equipment, staff and transport costs, US$

Total cost: Project Year 123456Total cost 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 US$ Land survey equipment & flumes 333 667 2,5000003,500 Levelling, diversion and flume construction11,66723,33333,50000068,500 Met equipment 4679333,5000004,900 Demonstration drip irrigation equipment1,0002,0004,0000007,000 Demonstration on farm storage equipment 5,000 10,000 20,00000035,000 Training equipment 000000 0 Other local equipment 1,383 2,767 4,800 1,250 1,250 1,250 12,700 Field staff time 000000 0 Surveying 1,645 3,289 4,684 500 500 500 11,118 Observation, demonstration and training 867 1,733 4,000 500 500 500 8,100 Reporting 512 1,023 2,251 250 250 250 4,536 Vehicle overheads 667 1,333 12,900 2,900 2,900 2,900 23,600 Motorbike overheads 537 1,074 1,856 250 250 250 4,217 Demonstration costs 850 1,700 3,150 750 750 750 7,950 Extension materials 6,936 13,872 17,887 2,500 2,500 2,500 46,195 Training cost 000000 0

Total 31,863 63,726 115,027 8,900 8,900 8,900 237,315

Staff and Vehicle Requirements Project Staff US$2,8565,7139,68400018,253 DAAH Staff US$ 167 333 1,250 1,250 1,250 1,250 5,500

Vehicles US$ 667 1,333 12,900 2,900 2,900 2,900 23,600 Notorbikes US$ 537 1,074 1,856 250 250 250 4,217

Project staff days2865719680001,825 DAAH staff days 17 33 125 125 125 125 550

Project staff numbers134000 8 DAAH staff numbers001111 3

Vehicle km 1,333 2,667 25,800 5,800 5,800 5,800 47,200 Bike km 5,372 10,743 18,556 2,500 2,500 2,500 42,171

Table 6-4: Water Management Services: Costs by activity, US$

Total cost: Project Year 1 2 3 4 5 6 Total cost 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 US$ Community Mobilisation & Needs Assessment 3,203 6,406 6,997 0 0 0 16,605 Canal management services 4,167 8,333 32,750 0 0 0 45,250 Field crop irrigation demonstrations 16,867 33,733 37,640 0 0 0 88,240 Orchard & vineyard water management 6,693 13,387 28,740 0 0 0 48,820 Training courses Support to DAAH 933 1,867 8,900 8,900 8,900 8,900 38,400

Total 31,863 63,726 115,027 8,900 8,900 8,900 237,315

Table 6-5: Water Management Services: Costs by location, US$ Total cost: Project Year 123456Total cost 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 US$ Jui Naw 21,984 43,967 1,350 1,350 1,350 1,350 71,351 Sari Pur RB 0 0 54,127 2,075 2,075 2,075 60,352 Yahia Abad 0 0 41,263 1,950 1,950 1,950 47,113 Pashan Wash 9,879 19,758 1,450 1,450 1,450 1,450 35,437 Obe Wash 0 0 16,837 2,075 2,075 2,075 23,062

Total 31,863 63,726 115,027 8,900 8,900 8,900 237,315

92 Western Basins Project Final TA Report – July 2005

Table 6-6: Water Management Services: Costs by expenditure category, US$ Total cost: Project Year 123456Total cost 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 US$ Direct purchases 4,500 9,000 20,100 0 0 0 33,600 Local costs 16,103 32,205 47,687 4,500 4,500 4,500 109,495 Local staff 3,023 6,046 10,934 1,250 1,250 1,250 23,753 Vehicle operating costs 667 1,333 12,900 2,900 2,900 2,900 23,600 Motorbike operating costs 537 1,074 1,856 250 250 250 4,217 Local Labour 7,033 14,067 21,550 0 0 0 42,650

Total 31,863 63,726 115,027 8,900 8,900 8,900 237,315

6.2.1.3 Impact

The planned sequence of activities is community mobilisation and needs assessment, followed by in-field irrigation demonstrations at 17 sites, innovative irrigation demonstrations in orchards and vineyards (7 sites), and training canal management staff in inter and intra canal water distribution. Contact with canal managers will be 100%, as all mirabs will be involved in training and demonstrations.

In-field irrigation will probably attract high exposure, and at least 250 farmers per site are expected to benefit from the information provided. If there are 10,000 land controlling families in the ALSS areas (see Table 6-1) this could represent contact to over 40% of irrigating farmers and will therefore have a significant impact.

Outreach to orchard and vineyard owners is more problematic because the activity must take place behind walls. Assuming about 25 farmers can be associated with each demonstration (and this will depend on the success of the Project facilitators), outreach to about 175 orchard owning farmers can be expected. As only about 10% of households are orchard owners, outreach could be up to about 20%. However, as Horticultural Services will also be handling a scheduled 35 demonstrations, of which half may be in orchard and vineyards, overall ALSS contact to this group is likely to be well over this estimate.

The expected result of the demonstrations is described in Section 6.3.

6.2.2 Horticultural Services

6.2.2.1 Activities

The activities of the Horticultural Services component of ALSS is summarised in Table 6-7. Community mobilisation and needs assessment is scheduled to take place in all areas before implementation. Implementation will include establishing and equipping private nurseries and vegetable seed growers, horticultural management demonstrations for vegetables, vineyards and orchards, and on farm storage and processing demonstrations.

Table 6-7: Horticultural Services: Activities by location

Sari Pur Yasir Pashan Obe Jui Naw RB Ahbad Wash Wash Community Mobilisation & Needs Assessment ha 5,088 1,387 1,300 660 120 Establishment of & Assistance to Private Nurseries & Seed Growers ha 1.20 0.80 0.80 0.20 0.20 Horticultural Demonstrations demos 12 8 12 2 1 On-farm fruit, nut & vegetable processing demonstrationsdemos86621 Training Days Support to DAAH site 1 1111 Round distance from Herat km 60 350 300 100 350

93 Western Basins Project Final TA Report – July 2005

6.2.2.2 Costs

The expected costs of Horticultural Services are summarised in Table 6-8 (equipment, staff and transport), Table 6-9 (activities), Table 6-10 (locations), and Table 6-11 (expenditure category). Training is omitted from the cost tables and presented elsewhere. The largest activity costs are for private nursery and seed grower support (33%) and horticultural demonstrations (27%) and on farm storage and processing (24%). The unit area cost of the services planned is about US$ 55 per farm hectare, over a farmed area of 8,000 ha. ALSS activities on the Washes are more expensive per unit farm area as the population density is much lower.

Table 6-8: Horticultural Services: equipment, staff and transport costs, US$

Total cost: Project Year 123456Total cost 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 US$ Levelling and demarcation 70 140 270000 480 Drip irrigation system 0 0 0000 0 Met equipment 000000 0 Water storage structure 000000 0 Install drip irrigation system 0 0 0000 0 Planting material and fertilisation 17,500 35,000 67,500000120,000 Planting costs 1,4002,8005,4000009,600 Machinery (cultivator) 93187360000640 Equipment (pruning and spraying) 11,90023,80053,40000089,100 Other local equipment 0 0 0000 0 Storage 4679331,8000003,200 Field staff time 000000 0 Supervision 2,461 4,923 8,024 1,000 1,000 1,000 18,408 Observation, demonstration and training 67 133 500 500 500 500 2,200 Reporting 248 497 621 250 250 250 2,116 Vehicle overheads 667 1,333 12,900 2,900 2,900 2,900 23,600 Motorbike overheads 37 74 256 250 250 250 1,117 Demonstration costs 1,470 2,940 6,870 1,500 1,500 1,500 15,780 Extension materials 6,816 13,632 25,707 5,000 5,000 5,000 61,155 Processing equipment 5,000 10,000 19,50000034,500 Processing buidlings 3,3336,66713,00000023,000 Crop storage 3,3336,66713,00000023,000 Traning equipment 000000 0

Total 54,863 109,726 229,107 11,400 11,400 11,400 427,895

Staff and Vehicle Requirements Project Staff US$2,5435,0867,39400015,023 DAAH Staff US$ 233 467 1,750 1,750 1,750 1,750 7,700

Vehicles US$ 667 1,333 12,900 2,900 2,900 2,900 23,600 Notorbikes US$ 37 74 256 250 250 250 1,117

Project staff days2545097390001,502 DAAH staff days 23 47 175 175 175 175 770

Project staff numbers123000 7 DAAH staff numbers001111 4

Vehicle km 1,333 2,667 25,800 5,800 5,800 5,800 47,200 Bike km 372 743 2,556 2,500 2,500 2,500 11,171

94 Western Basins Project Final TA Report – July 2005

Table 6-9: Horticultural Services: Costs by activity, US$

Total cost: Project Year 123456Total cost 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 US$ Community Mobilisation & Needs Assessment 3,203 6,406 6,997 0 0 0 16,605 Establishment of & Assistance to Private Nurseries 20,293 40,587 80,260 0 0 0 141,140 Horticultural Demonstrations 15,300 30,600 70,750 0 0 0 116,650 On-farm fruit and nut Processing Demonstrations 14,800 29,600 59,700 0 0 0 104,100 Training courses Support to DAAH 1,267 2,533 11,400 11,400 11,400 11,400 49,400

Total 54,863 109,726 229,107 11,400 11,400 11,400 427,895

Table 6-10: Horticultural Services: Costs by location, US$ Total cost: Project Year 123456Total cost 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 US$ Jui Naw 45,547 91,094 1,850 1,850 1,850 1,850 144,041 Sari Pur RB 0 0 95,257 2,575 2,575 2,575 102,982 Sari Pur LB 000000 0 Yahia Abad 0 0 107,493 2,450 2,450 2,450 114,843 Pashan Wash 9,316 18,632 1,950 1,950 1,950 1,950 35,747 Obe Wash 0 0 22,557 2,575 2,575 2,575 30,282

Total 54,863 109,726 229,107 11,400 11,400 11,400 427,895

Table 6-11: Horticultural Services: Costs by expenditure category, US$ Total cost: Project Year 123456Total cost 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 US$ Direct purchases 15,72031,44068,295000115,455 Local costs 16,693 33,385 65,342 6,500 6,500 6,500 134,920 Local staff 2,790 5,581 9,198 1,750 1,750 1,750 22,819 Vehicle operating costs 667 1,333 12,900 2,900 2,900 2,900 23,600 Motorbike operating costs 37 74 256 250 250 250 1,117 Agricultural inputs 17,500 35,000 67,500000120,000 Local Labour 1,456 2,912 5,6160009,984 Administration Costs 000000 0

Total 54,863 109,726 229,107 11,400 11,400 11,400 427,895

6.2.2.3 Impact

The planned sequence of activities is community mobilisation and needs assessment, followed by establishing 3.20 hectares of private nurseries and vegetable seed growing, in- field horticultural demonstrations at 35 sites, and on-farm storage and processing demonstrations at 23 sites.

In-field horticulture demonstrations will probably attract high exposure, but not as much as irrigation demonstrations. Many of the demonstrations will be behind walls, and farmers will not relate to crop specific demonstrations in the same way as general irrigation demonstrations. Not all farmers are horticulturalists, whereas nearly all are irrigators. One might imagine 25 contact farmers per site, or 875 farmers. The target group would include the 10% of land controlling households having orchards and/or vineyards, plus a further 10% of farmers who are commercial vegetable growers (the number of commercial tomato growers in Injul, Gozara and Karukh is probably about 3,000, or 7.5% of land controlling households), this is about 2,000 households in the rehabilitation areas. Therefore the contact rate might be 40% of the target group. The expected result of the demonstrations is described in Section 6.3.

95 Western Basins Project Final TA Report – July 2005

6.2.3 Livestock and Veterinary Services

6.2.3.1 Activities

The activities of the Horticultural Services component of ALSS is summarised in Table 6-12. Community mobilisation and needs assessment is scheduled to take place in all areas before implementation. Implementation will include establishing irrigated fodder trials and demonstrations, range rotation and rainfed fodder trials and demonstrations, dairy cow management demonstrations and alternative livelihood demonstrations related to poultry keeping, apiculture and sericulture.

Table 6-12: Livestock and Veterinary Services: Activities by location

Sari Pur Yasir Pashan Obe Jui Naw RB Ahbad Wash Wash Community Mobilisation & Needs Assessment ha 5,088 1,387 1,300 660 120 Irrigated fodder trials & demonstrations demos126621 Range rotation and rainfed fodder trials & demonstrationsdemos00011 Dairy cow management demonstrations demos126621 Alternative Livelihood demonstrations demos63311 Training courses and extension materials 00000 Support to DAAH sites11111 Round distance from Herat km 60 350 300 100 350

6.2.3.2 Costs

The expected costs of Livestock and Veterinary Services are summarised in Table 6-13 (equipment, staff and transport), Table 6-14 (activities), Table 6-15 (locations), and Table 6-16 (expenditure category). Training is omitted from the cost tables and presented elsewhere. The largest activity costs are for alternative livelihood demonstrations (28%) irrigated fodder production (15%) and rangeland rotation and rainfed fodder demonstrations (16%). The unit area cost of the services planned is about US$ 32 per farm hectare, over a farmed area of 8,000 ha. ALSS activities on the Washes are more expensive per unit farm area as the population density is much lower.

96 Western Basins Project Final TA Report – July 2005

Table 6-13: Livestock and Veterinary Services: equipment, staff and transport costs, US$

Total cost: Project Year 123456Total cost 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 US$ Seed & fertiliser for irrigated fodder trials/demos 349 699 9730002,021 Management of irrigated fodder demonstations 233 467 6500001,350 Harvesting equipment for irrigated fodder 350 700 9750002,025 Processing equipment for irrigated fodder3507009750002,025 Storage equipment for irrigated fodder 350 700 9750002,025

Land forming & SWC structures for pasture improveme 000000 0 Fencing and rotations for pasture rotation 0 00000 0 Social fencing & pasture rotations 4,1678,33312,50000025,000 Fodder tree planting 1,041 2,082 3,1230006,245 Rainfed fodder/pasture seeding 327 653 9800001,960 Hot wire fencing 000000 0

Stall housing and animal health 1,727 3,453 4,8100009,990 Ration mixing, storing and feeeding 1,167 2,333 3,2500006,750 Milking demonstrations 1,1672,3333,2500006,750

Alternative livelihhod demonstrations 0 00000 0 On farm dairy processing 2,5675,1337,15000014,850 Poultry 1,3772,7533,8350007,965 Apiculture 3977931,1050002,295 Sericulture 1,8903,7805,26500010,935

Other local equipment 0 00000 0 Field staff time 000000 0 Supervision 2,151 4,303 5,364 1,000 1,000 1,000 14,818 Observation, demonstration and training 1,177 2,353 3,910 1,000 1,000 1,000 10,440 Reporting 755 1,510 2,011 250 250 250 5,026 Vehicle overheads 800 1,600 10,150 2,025 2,025 2,025 18,625 Motorbike overheads 37 74 256 250 250 250 1,117 Demonstration costs 1,690 3,380 5,190 750 750 750 12,510 Extension materials 6,416 12,832 18,557 5,000 5,000 5,000 52,805 Traning equipment 4,6679,33313,00000027,000

Total 35,150 70,299 108,253 10,275 10,275 10,275 244,526

Staff and Vehicle Requirements Project Staff US$3,7837,5669,03400020,383 DAAH Staff US$ 300 600 2,250 2,250 2,250 2,250 9,900

Vehicles US$ 533 1,067 6,900 2,025 2,025 2,025 14,575 Notorbikes US$ 1,437 2,874 4,156 250 250 250 9,217

Project staff days3787579030002,038 DAAH staff days 30 60 225 225 225 225 990

Project staff numbers234000 9 DAAH staff numbers001111 5

Vehicle km 1,067 2,133 13,800 4,050 4,050 4,050 29,150 Bike km 14,372 28,743 41,556 2,500 2,500 2,500 92,171

Table 6-14: Livestock and Veterinary Services: Costs by activity, US$

Total cost: Project Year 123456Total cost 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 US$ Community Mobilisation & Needs Assessment 3,203 6,406 6,122 0 0 0 15,730 Irrigated fodder trials & demonstrations 5,966 11,932 17,873 0 0 0 35,771 Range rotation and rainfed fodder trials & demonstrati 6,118 12,235 19,578 0 0 0 37,930 Dairy cow management demonstrations 6,993 13,987 20,735 0 0 0 41,715 Alternative Livelihood demonstrations 11,637 23,273 33,670 0 0 0 68,580 Training courses Support to DAAH 1,233 2,467 10,275 10,275 10,275 10,275 44,800

Total 35,150 70,299 108,253 10,275 10,275 10,275 244,526

97 Western Basins Project Final TA Report – July 2005

Table 6-15: Livestock and Veterinary Services: Costs by location, US$

Total cost: Project Year 1 2 3 4 5 6 Total cost 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 US$ Jui Naw 24,306 48,613 1,800 1,800 1,800 1,800 80,119 Sari Pur RB 0 0 40,231 2,525 2,525 2,525 47,806 Sari Pur LB 000000 0 Yahia Abad 0 0 39,342 2,400 2,400 2,400 46,542 Pashan Wash 10,843 21,686 1,900 1,900 1,900 1,900 40,130 Obe Wash 0 0 24,980 1,650 1,650 1,650 29,930

Total 35,150 70,299 108,253 10,275 10,275 10,275 244,526

Table 6-16: Livestock and Veterinary Services: Costs by expenditure category, US$

Total cost: Project Year 123456Total cost 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 US$ Direct purchases 5,181 10,362 14,433 0 0 0 29,977 Local costs 15,670 31,341 44,853 5,750 5,750 5,750 109,114 Local staff 4,083 8,166 11,284 2,250 2,250 2,250 30,283 Vehicle operating costs 800 1,600 10,150 2,025 2,025 2,025 18,625 Motorbike operating costs 37 74 256 250 250 250 1,117 Agricultural inputs 6,176 12,352 17,998 0 0 0 36,527 Local Labour 3,202 6,404 9,278 0 0 0 18,884

Total 35,150 70,299 108,253 10,275 10,275 10,275 244,526

6.2.3.3 Impact

The planned sequence of activities is community mobilisation and needs assessment, followed by establishing 27 demonstrations of irrigated fodder production, two range rotation and rainfed fodder production, 27 demonstrations of dairy cow management, and 14 demonstrations of alternative livelihood enterprises. Only two rainfed fodder production demonstrations have been scheduled. They are extremely expensive per unit area (due to the soil conservation works, planting and physical protection required) and most dairy cattle kept on the areas irrigated from the Hari Rod graze the river valley. Therefore these demonstrations are suggested for the Wash areas only.

Livestock and veterinary demonstrations will probably attract small exposure. Many of the demonstrations will be behind walls and involve women. Farmers have a strong sense of ownership of their livestock. One might imagine 10 contact husbandry persons per site, or 270 households in total. The target group for dairy cattle is about 20% of total households, and poultry owners are likely to be 70% of total households. Beekeepers and sericulturalists on the other hand will be a very small proportion of the total. Therefore the contact rate might be only 10% of the target group for dairy cattle, less than 1% for poultry owners. Careful selection of demonstrations will be required.

The expected result of the demonstrations is described in Section 6.3.

98 Western Basins Project Final TA Report – July 2005

6.2.4 Trader Credit for Crop Inputs

Seasonal six month credit (between US$ 2,000 and US$ 15,000 per trader) will be offered to homogeneous groups of traders at Provincial and District level to augment their existing capital for input purchase. The scheme will be operated by IFDC, which has already established a similar credit line (value US$ 700,000) on behalf on USAID in Helmund and Kandahar Provinces. The credit line is expected to be about US$513,000 and is intended to:

• Meet the high incremental demand by farmers for inputs immediately after rehabilitation, to bring lands into cultivation which could not previously be irrigated for lack of water supplies. This demand may be unexpected by local traders. • Meet the slower but still significant demand for inputs for intensification of production and the relative expansion within the cropped area of crops with higher input requirements. • Reduce the likelihood of farmers in the project areas being drawn into credit relationships to acquire crop inputs through the opium trade • Expand the level of market and technical knowledge, working capital, inventory and credit capacity of input dealers while reducing their interest rates and servicing costs to farmers • Improve credit infrastructure in project areas (offices to improve coordination between traders and farmers, monitoring, staff training, loan supervision) • Increase the access of smaller farmer clients to input credit.

The incremental input requirements for schemes scheduled for rehabilitation have been calculated as described in ‘An Assessment of the Comparative Advantage of Irrigated Agriculture in Herat Province’, section 6.2 in Attachment 8(ii). The cost to farmers at full development would be about US$ 180 per cropped hectare, or US$ 1.44 million.

A summary of the budgeted loan disbursements and administrative costs by sub-project area is given in Table 6-17.

Table 6-17: Distribution of Budgeted Trader Credit by Sub Project (US$)

Total costs by Project Year 12345 Total 2006/7 2007/8 2008/9 2009/10 2010/11 Principal Jui Naw 200,000 0 0 130,000 330,000 Sari Pur Right Bank 50,000 0 0 50,000 Yahia Abad 75,000 0 0 75,000 Pashtan Wash 45,000 45,000 Obe Wash 13,000 0 0 13,000 Sub total 0 200,000 138,000 0 175,000 513,000 Administration Costs Jui Naw 30,000 0 0 19,500 49,500 Sari Pur Right Bank 12,500 0 0 12,500 Yahia Abad 18,750 0 0 18,750 Pashtan Wash 11,250 11,250 Obe Wash 3,250 0 0 3,250 Sub total 0 30,000 34,500 0 30,750 95,250

Total 0 230,000 172,500 0 205,750 608,250

99 Western Basins Project Final TA Report – July 2005

6.2.5 Micro Finance for Landless & Very Poor Households

6.2.5.1 Sericulture

Sericulture has the following advantages as a subject for micro-credit: • It is an activity which is complementary to irrigation rehabilitation, as it requires the production of mulberry fodder which is enhanced by irrigation • There is an existing market for raw silk required by weavers active in Herat, who at present are using substantial amounts of imported silk (price for local silk is about Afg 550 per kg) • There is a production tradition in the Lower Valley, from Pashtun Zarghun to Zinda Jan, which has already been the subject of NGO funding (VOEP) • Sericulture units can be managed by one family; a manageable unit is a 40,000 cocoon pa system, which requires about 720 kg of mulberry fodder (equivalent to 0.02 ha of irrigated mulberry saplings assuming 30 tons of production per ha/pa after three years) and is therefore feasible for semi-landless households • Monovoltine (one rearing per annum) production is necessary to coincide with the mulberry leaf growing season in the Hari Rod, so the silk worm rearing season would be in the period mid March to mid May, which would still give the landless labour opportunities at harvest time and in post-harvest employment. • There are good opportunities for involving women in silk worm rearing, processing of cocoons and reeling. • There are substantial value-added opportunities in textile manufacture which can be achieved locally.

A production unit of 40,000 cocoons would produce about 40 kg of raw silk per annum, and take four years to establish. Investment costs include the establishment of a mulberry plantation (at Afg 300 plus labour for the area required this is very small, even for poor households), and a sericulture building and equipment. Further information on Sericulture requirements is in ‘Agricultural Livelihoods Support Services’, section 2.5.1 in Attachment 8(iii).

The requirement for support to develop the sericulture industry would be: • Construction and equipping of sericulture units each to serve 10 families (Afg 34,000) • Initial procurement of silkworm eggs for silkworm raising families, unless these were available locally (Afg 20,000) • Training in management of the unit, raising silkworms, and producing the supply of mulberry fodder, and establishing marketing channels.

6.2.5.2 Bee-keeping

Bee-keeping would appear to be a much more difficult activity to introduce than sericulture. At present there is no obvious local industry, despite a local taste for honey and honey products and the need for pollination services by horticultural growers. In fact, wild bees are invisible, and there may be climatic problems for bee keepers, for example high wind speeds and low humidity. Capital costs, especially for processing and packaging can be substantial, although it is true that economies can be made with locally manufactured materials, and some of the fungal and parasitic control chemicals included in the budget which are necessary in areas where bees are well established may not be necessary immediately. Further information on Bee-keeping is in ‘ALSS’, section 2.5.1 in Attachment 8(iii).

100 Western Basins Project Final TA Report – July 2005

Nevertheless, bee-keeping can be undertaken by landless families, and as few as ten hives can bring in a return equivalent to a jerib of wheat. Women have an opportunity to be involved in household processing. An increase in bee populations would have a beneficial effect on pollination of horticultural crops. Increased honey production would have a beneficial effect on nutrition of poorer families. There are opportunities for crafted products, including bees wax candles.

The capital costs of honey processing and packaging are too high for poor households to support, even given long term financing. It would be most convenient for each group of ten hive-owning families to sell raw honey to a bee products processing unit, which would provide the following services: • Extracting and straining • Bottling and labelling • Retail sales.

Participating households would sell raw honey to the processing unit, which would provide the bulk of revenue and some certainty of sale. Each family would be responsible for selling wax, pollination services and other by-products. The requirement to support the bee-keeping industry would be: • Construction and equipping of bee product processing units each to serve 10 families (Afg 94,600) • Financing the capital costs of hive-owning families (Afghanis 27,000) • Training in management of the unit, hive establishment and management, and establishing marketing channels.

Administrative costs, to cover loan administration and training, have been included at 40%.The initiative is experimental, and a pilot scheme approach is recommended. The number of groups to be established in the sub project areas would be 10, phased to coincide with the completion of rehabilitation. This would lead to the establishment of 1,000 hives owned by 100 families in the sub project areas, which would be sufficient to provide pollination services on about 100 ha of horticultural crops.

6.2.5.3 Poultry

Microfinance services for poultry rearing are easier to establish than for sericulture or bee- keeping. Poultry is a low cost activity (70% of rural families in the Hari Rod were reported by NRVA 2003 to keep a few birds). Poultry rearing requires no upstream or downstream services. There are opportunities for women in raising hens and marketing poultry products. Poultry meat and eggs are valuable and affordable additions to the diet of poorer families.

There are several programmes in Afghanistan for poultry development including the FAO Poultry Improvement Programme, which worked on providing a starter pack including 10 improved hens, materials for a chicken coop, a small quantity of feed, and vaccine. Training was a requirement for beneficiaries of the programme. Gross margins for an improved 10 bird flock are over four times that from unimproved hens, the production from which is barely enough to supply family needs

Financing is important. The capital costs would be beyond the means of most families in the target group of women in landless and very poor families.

The requirement to support the expansion of improved poultry in project areas would be: • Provision of one starter pack of 10 improved hens, material for coop, vaccine and feed (Afg 6,730) to a target group of three women; when a defined proportion of the principal plus administrative charge had been paid, the second woman in the group would be provided with a starter pack, and so on.

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• Training in poultry management.

Administrative costs, to cover loan administration and training, have been included at 40%.The number of target groups in project areas is expected to be 300, thus reaching about 900 landless families.

6.2.5.4 Animal Bank

The objective of the Animal Bank is to provide a gender sensitive method to develop assets, food security and nutritional quality, incomes and savings capacities in poorer households. Animals are "shared" by households, the owner lending an animal to a poorer household which takes over the costs and responsibility of rearing it, both households sharing the animal's products 50/50. In the Western Basins Project case, the Project performs the role of the “rich household”, a savings group the role of borrower.

Animal Bank Groups (ABG) will be formed by Project Facilitators, with a minimum of five persons per Group. Each person contributes an agreed amount of savings per week/month to the ABG. The project ensures that the ABG members receive training on livestock management with an emphasis on productivity benefits accruing from irrigation rehabilitation, both in the preliminary savings period and later when the group owns one or more animals. Further details of the ABG is in ‘ALSS’, section 2.5.4 in Attachment 8(iii).

Members of ABGs must be at least 18 years old, engaged in agriculture as sharecroppers or landless labour, and will be the poorer members of the community, both male and female. Female-headed and the poorest households will be a priority target group. All potential members must demonstrate an ability and willingness to care for animals.

The annual cash flow of a landless household is typically close to zero but the initial contribution to the ABG would be only about Afg 2,000 per household for the purchase of a share in a dairy cow. The share of an animal can make an enormous difference to the disposal income of the family.

The Project requirement to support the introduction of the Animal Bank in project areas would be: • Identification of ABG and opening of accounts • Training in livestock management. • Loan of principal, say Afg 12,000 per ABG • Collection of principal in agreed time period • Monitoring and further livestock training.

Administrative costs, to cover loan administration and training, have been included at 40%.The number of target ABG in project areas is expected to be 500, thus reaching about 2,500 landless families.

6.2.5.5 Summary of Budgets for Micro Finance

Table 6-18 summarises the Micro finance budget by sub project area, and distinguishes between loan funds and administration. The implementation arrangements for micro- financing will be channelled through MISFA.

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Table 6-18: Summary of Micro Finance Budget (US$) Loan Funds Loan Adminstration Sericulture Bee-keeping Poultry ABG Sericulture Bee-keeping Poultry ABG Jui Nau 6,279 5,640 20,855 34,759 2,512 2,256 8,342 13,903 Sari Pur RB 0 5,640 4,131 6,885 0 2,256 1,652 2,754 Yahia Ahbad 6,279 5,640 9,375 15,624 2,512 2,256 3,750 6,250 Pashan Wash 0 5,640 6,250 10,416 0 2,256 2,500 4,166 Obe Wash 0 5,640 1,250 2,083 0 2,256 500 833

12,558 28,200 41,860 69,767 5,023 11,280 16,744 27,907

6.3 Expected Benefits from the Services

The benefits from the agricultural support services described in this working paper have been quantified in benefit estimates for sub projects, and presented as benefits over and above those benefits expected from rehabilitation alone. Improvements in water management, horticultural practice, livestock management and input credit are expected to achieve the objectives described in detail in the working paper ‘An Assessment of the Comparative Advantage of Irrigated Agriculture in Herat Province’ in Attachment 8 (ii) of this report. By 2015 on WBP rehabilitated schemes, these improvements will be:

• An expansion of the irrigated area on rehabilitated schemes through better water distribution within and between rehabilitated canals; the expansion will vary between schemes but will result in about 10% increase of the irrigated area post rehabilitation • In rehabilitated areas, wheat yield increases from the present level of just over 2 tons per ha to 2.5 tons per ha through the application of additional water, fertiliser and improved seed • In rehabilitated areas, rice yield increases from the present level of just over 2.8 tons per ha to 3.5 tons per ha through the application of additional water, fertiliser and improved seed • Expansion of the area of second crop summer vegetables and potatoes in rehabilitated schemes close to urban markets to about 15% of the irrigable command • A small expansion in the present area of orchards and vineyards, but significant improvements in their genetic quality and management, and increasing contributions to export quality production • Fruit and vegetable producing households better able to dispose of incremental production through improved on farm storage and processing • An increase in production of 30% of alfalfa and a doubling of feed grain production to meet improved ration requirements for dairy cattle • An increase in numbers of dairy cattle, which will come as a result of the widening of milk cow ownership rather than an increase in average household herd size; this because of the lack of milk collection facilities which is expected to continue in the short term • Due to input credit facilities, no serious bottlenecks in the affordability or availability of incremental inputs • Through micro-finance, additional benefits of rehabilitation being directed to landless and very poor households, with alternative livelihood opportunities being offered particularly to women members.

6.4 Summary of Costs of Services

Table 6-19 gives a summary of the cost estimate for ALSS to the five Sub project areas. The cost of demonstrations will be about US$ 60 per farm hectare, and input credit will be about US$ 40 per farm hectare. Micro credit for landless and very poor families is about US$ 32 per household.

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Table 6-19: Summary of ALSS Cost Estimate

Total costs by Project Year 1234567 Total 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 2012/13

Water Management Services 34,774 69,548 116,618 8,900 8,900 8,900 247,640 Horticultural Support Service 57,774 115,548 230,698 11,400 11,400 11,400 438,220 Livestock and Veterinary Services 38,061 76,122 109,843 10,275 10,275 10,275 254,851 Input Credit 0 230,000 172,500 0 205,750 0 0 608,250 Micro-credit for Alternative Livelihoods Sericulture 08,7918,791000017,581 Bee-keeping 015,79223,688000039,480 Poultry 037,94720,658000058,605 Animal Bank 063,24534,430000097,674

TOTAL 130,609 616,993 717,225 30,575 236,325 30,575 0 1,762,302

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7 COMPONENT 4: PROJECT MANAGEMENT AND CAPACITY BUILDING

7.1 Capacity Building

7.1.1 Introduction

Agricultural production accounts for over half of Afghanistan’s GDP and most of its direct exports. More than three-quarters of the population live in rural areas and depend on agriculture as their main source of livelihood. Most of the agricultural population is likely to be living below the poverty line. The primary issue facing the population living within the WBP area is how to transform the poorly performing subsistence agricultural sector into a modern, dynamic and sustainable rural economy that provides food security, generates farm income, reduces vulnerability and expands livelihood opportunities. The main drivers of agricultural growth and rural poverty reduction – technology, roads, irrigation and education have all suffered extensive deterioration due to conflicts, lack of maintenance and droughts. Lack of assured and timely water supply at the farm-level through the existing irrigation system appears to be one of the most important constraints.

7.1.2 Institutional Capacity

The main challenges to developing Afghan agriculture are institutional. Public and private institutions are ill equipped in terms of physical infrastructure, regulatory framework, human skills, or concrete knowledge of what a modern competitive agricultural sector looks like. Three core ministries have been involved in the agriculture and natural resource management – the Ministry of Agriculture, Animal Husbandry and Food (MAAHF), The Ministry of Energy and Water (MEW), and the Ministry of Rural Rehabilitation and Development (MRRD). Water related issues have been entrusted to MEW, agricultural research and extension to MAAHF, and rural development / employment / poverty programs to MRRD. Within this broad division of labour, areas of overlap / gaps are being identified and addressed by the government. At the farm level, water technology and livelihoods are inextricably linked, so effective coordination between the three ministries is critical for efficient delivery of public investments and support services in rural areas. The structure of the ministries also reflects a centralized form of administration inconsistent with current rural development thinking which calls for decentralized decision making and implementation. At present, more than one-third of the roughly 13,500 staff employed in the three ministries are based in Kabul.

Appropriate institutions and adequate institutional capacity are absolutely essential for sustainable use and management of national water resources. However, Afghanistan’s institutional capacity for water management has deteriorated considerably during the past 25 years. Government institutions are not only old-fashioned in systems and structures, but have been further deteriorated with the loss of most of their professional and qualified staff. Some have been killed during the war, a significant number has fled the country and those in the country have mostly joined NGOs and other international organisations as the government has failed to secure their retention with adequate salaries and benefits. As a result, present government institutions are not in the position to respond effectively to the growing needs of the communities. The lack of funding through the national development budget and the absence of operational costs to pay regular salaries has further reduced the capacity of these institutions to effectively respond to the growing needs of the rural population. Those still working with the government have had limited access to training and up-dating their existing knowledge for over 20 years and many still function through approaches, systems and methodologies that have long been out-dated. Many government employees have taken up work outside the government to supplement their meagre income for sheer survival.

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The quality and quantity of professional staff required to plan and manage irrigation systems and water resources has declined to the point that they are now incapable of maintaining existing systems let alone considering rehabilitation or expansion. The technical, administrative, communication and measurement facilities and equipment and even documents for the irrigation water sector have been damaged or destroyed. This institutional capacity needs to be re-built as a matter of urgency. Institutional development and capacity building in WBP is a long term process that will require considerable resources and commitment from all stakeholders. Capacity development is crucial to project effectiveness and sustainability by ensuring stakeholders have the requisite skills for on going project development and sustainability. Whilst capacity building must assist in satisfying the immediate needs of individuals, it also must develop capacities for self sufficiency and empowerment.

In order for development to be effective, WBP should adopt a participatory approach where all stakeholders are involved in the design of activities that will affect them. Participation in formulating the fundamental goals as well as in planning and carrying out an activity empowers stakeholders and fosters a sense of ownership. These facilitate effective project implementation, conscientious monitoring of activities, and sustainable outcomes. Because the participatory process takes time it often is in conflict with donor funded programs which are bound to tight implementation schedules.

It would be naive to underestimate the vast difference in distance and rhetoric between Kabul and Herat. The capacity of local government institutions to actively assist in implementing WBP is virtually zero. Unless an adequate capacity building program is incorporated into WBP the project goals will be unattainable. The current situation, with NGOs attempting to provide all services, detracts from the government’s ability to restore the confidence of communities in the government’s capacity to address their needs. For this reason, it would be beneficial if the Ministries (MEW, MAAHF, and MRRD) had external assistance to provide salary supplements, vehicles and equipment to enable them to carry out basic functions and prevent further erosion of confidence in the government. In the short term, however, even with the infusion of these resources, the government does not have the human resource capacity to replace NGO service providers.

Given the magnitude of problems facing Afghanistan, there will be a requirement to remain flexible in implementing WBP. Change will require time and patience, and appropriate mechanisms of change management will be required to make changes successful, both within the government institutions and the farming community.

7.1.2.1 Ministerial Level

At the ministerial level, the shortage of technical staff is severe. As indicated above, there are many reasons for this shortage. Most of the professional MEW, MAAHF and MRRD staff that do exist require extensive upgrading of their skills. This is essential for producing future specialists who are capable of managing the nation’s water resources and irrigation development in the country. This lack of institutional capacity is further exacerbated by a lack of equipment, skilled support staff and financial resources. With the UN, NGOs and other donor driven projects paying salaries more than 10 times what the government is able to pay it is little wonder that there is a crisis in keeping suitable staff within government agencies.

In meetings with MEW (First Deputy Minister Nazimi and FAO, WB, GTZ, EC project staff), the need for Capacity Building was highlighted as acute. Overseas training and in-country training provided by international trainers are considered a high priority for the Ministry and national development. Most MEW staff are considered poorly qualified for the tasks they were meant to perform.

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The organizational structure of MEW is still under development and the situation is confused. Policy reform at MEW appears to have stalled and no action has been taken on implementing the agreed policy reforms from last year. It appears the whole process may have to begin again. Development of a national Water Law is nearing completion; however many gaps remain and it will require considerable amendments as experience is gained. It appears this is being rushed through to have it completed before the upcoming parliamentary elections in September. It is of concern that a Water Law is being prepared with donor assistance without the support of a Water Lawyer.

There appears not to be any coherent strategic planning within MEW. There is an obvious need for donor assistance in getting MEW better organised. Whilst donors are active in specific development projects; little attention appears to have been given on how MEW should function as a Ministry. Senior MEW staff themselves are unclear on how the Ministry functions and who is meant to be doing what. Job descriptions, functions and qualification requirements for staff require updating. There is also an urgent need to establish clearer communication lines to the Provinces.

MRRD in comparison to MEW appears to have more resources and be further along the road in implementing policy reform. The Ministry is currently in the process of developing a MRRD strategic plan which encompasses re-examining the MRRD Vision, Mission and Core Values and establishing a set of principles that describe the MRRD approach to rural development. This set of principles would allow MRRD to establish the “fit” between program operations and its approach, would act as a basis for partnership with other organisations; provide a strategic evaluation tool and a tool to ensure that new programs and proposals are mutually consistent. Staff job descriptions and qualification requirements for each post are currently under development. Training needs are also being reviewed. As with MEW and MAAHF, the skills and competencies of MRRD staff are considered sub-standard. MRRD recognizes the need for significant upgrading of staff if they are to be at all effective. Long overseas training courses and bringing in International Trainers who could reach a much larger target group at a lower cost were considered the most needed. English language skills were also highlighted as being a problem for those attending overseas courses.

There appears to be much confusion among all key ministries involved in WBP about the PRR Program (Priority Reform and Restructuring decree) that provides a packaged approach to restructuring government units and providing improved pay levels for key leadership posts. Where implementation of PRR has been tried it is clear there has been some resentment by other staff that the application of PRR pay rates is unfair. Given the view that the program is seen as only a means of increasing salaries of current employees, with no restructuring of departments’ planned or fair application of the merit test, this perception is not surprising. PRR can be a positive tool if used to help national and provincial administrations towards a more unified and coordinated entity. If simply overlaid on existing structures, in a piecemeal fashion reflecting vertical lines of authority, PRR can be counterproductive.

7.1.2.2 Provincial Level

At the provincial level, the shortage of professional staff is even in a worse state than at the national level. Table 7-1 shows the current technical (undergraduate degree – no staff had post-graduate qualifications) staffing levels (by gender) at Herat and in the WBP districts of Government Departments (DEW, DAAHF, DRRD, DMI and DWA). In addition, the Table shows the Technical Staff requirements as perceived by the departments, the vehicle numbers (working/not working) and the number of computers. The data tells a sorry story and highlights the deplorable state that these government departments are now in. Lack of human resources, vehicles, equipment, operating budget, and dismally low salaries (average US$40/month) provides no incentive to travel from duty stations. To survive, most employees have other jobs. Anecdotal reports from Directors indicate that training and study

107 Western Basins Project Final TA Report – July 2005 opportunities are zero. Most districts within the WBP area have neither office nor staff. Where there is an office, it has no electricity (hence no computer) and no mode of transport – not even a bicycle for staff. It is interesting to note; that when asked what technical staff were required by gender, except for DWA, all other departments did not see the need for any women technical staff.

Table 7-1: Summary Provincial (incl. WBP Districts) Institutional Capacity Dept Current Tech. Staff Vehicle Nos. Fuel & Computer Technical Staff Requirements Maint. Nos. (as perceived by Budget Dept.) Male Female Male Female Working Not (Y/N) Nos. Working DEW 4 17 4 4 No 3 DAAHF 12 3 83 11 4 No 4 DRRD 7 8 28 No 11 DMI 2 3 3 No 1 DWA 1 3 4 1 No 3 Total 26 6 111 4 47 8 22

7.1.2.3 District and Community Level

The impression at both provincial, district and canal administrative level is that government in Kabul is a distant unreality which has little or no impact on the management of the canal systems. The MEW has no direct input or contact with these individuals. Policy decisions made in Kabul are often not communicated even to the DEW in Herat, let alone to individual wakils and mirabs. Even if such decisions were passed on; provincial government is currently sufficiently devolved to the point of semi-independence (or rather Central government is so weak), as to render policy decisions made in Kabul unenforceable at provincial level.

Different communities have distinct social characteristics and different levels of participation by their members, but it is characteristic of Afghan communities that there be broad consensus on matters that affect all members. The shura is primarily a means of achieving broad understanding and agreement among the leading members of the society to avoid conflict. The shura is not necessarily fully representative of the community, and democratic principles of equality and majority rule are not the basis for decisions, which come out through extended discussion. Shuras are valuable resources for reducing conflict and encouraging cooperation and collaboration. Whether the views of minorities, women, or the poor become part of the discussion depends very much on the local shura. Those in the community with the fewest resources are the least likely to contribute to discussions or benefit from economic opportunities for the village.

Mirabs and Wakils continue to maintain the canal networks with community consent and participation not so much on the basis of any state laws and regulations but in accordance with ancient and traditional precedent. In fact there is minimal involvement by state organs year on year. As a result of this perceived remoteness and lack of communication from the centre to the periphery, central and provincial government is regarded at the best with indifference, at the worst with hostility.

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The persistence of the top down approach with lack of participation of communities and wakils and mirabs in particular, in government policy making remains one of the most problematic aspects if there is to be some form of devolution of state responsibilities for irrigation and water issues as a whole to communities. The fact that wakils and even provincial officials have no stake in policy decision making issues suggests strongly a very wide gap between government rhetoric regarding Community Water Users Associations and actual practice. The mind set of a command and centralized state and economy will take many years to change.

Any future extension strategy must emphasize development of capacity for farmers to express their demand for services and increase their influence over programs. International experience confirms that working with client groups of various types make extension services more accessible to small farmers by providing economies of scale in service delivery and also a mechanism for producers to express their demand for services. Two primary lessons emerging from these approaches are: (i) working with existing groups is often more successful than starting new ones -- in the Afghanistan context the elected village level Community Development Councils (CDCs) being established under the National Solidarity Program (NSP) could provide an appropriate entry point, eventually paving the way for specific farmer interest groups to emerge and farmer-to-farmer extension take root; (ii) promoting farmer groups calls for specialized skills which are often lacking in traditionally trained public extension workers -- this will call for appropriate training, but also extensive use of community facilitators (including NGOs) to fill the gap.

Institutional analysis of the above groups is presented in the Capacity Building Specialist Report (Attachment 11). A technical assessment is given in the ALSS Report, Attachment 8(iii).

7.1.3 Human Resource Development

7.1.3.1 National Project Implementation Staff

National staff that are either appointed to WBP by GOA as counterpart staff, or locally recruited by the implementation consultants will require considerable upgrading of skills to meet project implementation requirements if they are going to assume major responsibility for Project implementation from the end of the 4th year. Whilst training of local staff is an integral part of WBP, it will take some time for these personnel to be identified, trained and undergo on-the-job training for them to be fully effective. This can invariably be a lengthy process which is often at odds with a project based on tight schedules.

7.1.3.2 Construction Contractors

An area of concern that will impact on the WBP implementation schedule is the ability of local contractors to undertake the civil works component of WBP. With a significant number of development initiatives already being undertaken in Herat Province, the capacity of contractors to undertake a significant workload increase is unclear. As WBP will have a considerable number of large contracts there will be a need for contractors to undergo some training to familiarise them with project objectives and ADB requirements.

7.1.3.3 Capacity Building Program

The Capacity Building Program for WBP has been designed to give the maximum benefit to the project implementation team as quickly as possible. Most of the training has been aimed at upgrading the skills and capacity of locally recruited staff. Some of the training is aimed at government staff who it is hoped will assist in the project implementation process. It is anticipated that after project completion, project staff will either be employed by the government or join other projects or move on to the River Basin Authority. Whatever the

109 Western Basins Project Final TA Report – July 2005 scenario, the capacity building program will be a positive step in increasing the human resource capacity within Afghanistan.

The Government is committed to promoting the integration of gender equality and advancement of women into the agriculture and natural resource sector. To achieve the sector strategy objectives requires an understanding of gender issues, and the incorporation of a gender based assessment of planned activities, and implementation of gender strategies and action plans to improve gender equity in all program and project activities. Vulnerable groups and women headed households are a significant group in rural areas, and project interventions need to target these groups.

The WBP Capacity Building Program has been developed based on the identified requirements of the Project Components (IWRM, WRID, ALSS and Project Management and Capacity Building) and subsequently categorised according to one of three distinct categories; (1) International Training (1 year and 90 day courses); (2), Local courses taught by International Trainers; and (3), Local courses taught by NGOs. Whilst international project technical staff will give support to the capacity building program during implementation, they will not have the time to be actively involved in developing and running training courses. They will however be active in on-the-job training and giving staff the necessary practical experience in the field and day to day issues surrounding implementation. Once these participants have undergone the capacity building program they will then be a considerable human resource asset for the proposed Western Basins River Authority when it is established. Details of the Capacity Building Program can be seen in Appendix B.

Table 7-2 is a summary of national staff requirements to support project implementation.

Table 7-2: Summary of National Staff Requirements Category of Components Total Staff IWRM WRID ALSS PM & CB Professional 4 11 4 4 23 Technical 4 19 15 21 59 Support 4 13 5 24 46 Total 12 43 24 49 128

International Capacity Building

After many years of war, there has been little opportunity for Afghan citizens to study abroad in a Western environment. There is therefore a huge total lack of knowledge about modern methods, technology, thoughts and ideas. It is therefore critical that as many project and government staff as possible are given the opportunity to study overseas and gain increased exposure. A number of one to two year courses have been identified that are needed by WBP for successful implementation and in addition to begin the process of building up national capacity. It is envisaged that these courses would most likely be a one year Masters Program, such as those offered in the UK. In addition, a number of 90 days training courses have been identified that would give the participants some international exposure to specific areas requiring attention at a lesser cost than the one year program.

Local Capacity Building (International Technical Trainer)

There are many capacity building shortfalls in core technical areas that cannot be met by other personnel or organisations in Afghanistan and are best met by providing an

110 Western Basins Project Final TA Report – July 2005 international trainer in situ. This would also have the effect of reaching a wider audience in the shortest possible time. It is recommended that these trainers could also conduct short courses at the University which is desperate to receive new ideas.

Local Capacity Building (NGO Trainer)

Because some NGOs have significant expertise and experience of capacity building in certain sectors, their knowledge and skills will be used to run specific courses according to the project’s needs. Depending upon a capacity needs assessment conducted in Year 2; it is also envisaged that capacity building in Year 3, and possibly Year 4 will only be conducted by NGOs.

Equipment Requirements

Equipment required for execution of the capacity building program (most of which would be passed to the DEW, MEW or River Basin Authority after completion) is as listed in the project cost estimates (Section 10).

7.1.4 Capacity Building Program for WBP

The capacity building program for WBP for the first two years of implementation is presented in the Tables following the Indicative Budget. Capacity building for years 3 and 4 will be determined during Year 2 of the implementation period in order for adjustments to be made based on experienced gained and the “needs” of the project. It is not envisaged that any further international training will take place after Year 2.

1. The project will provide overseas scholarships of 1 to 2 years duration for selected professional personnel (as listed in Appendix B), from the participating ministries and recruited project staff, in disciplines relevant to the development of the western basins catchment area. The following capacity building courses will be included: irrigation engineering, hydrology, hydrogeology, watershed management, rangeland management, GIS applications, irrigation agronomy, development studies, and as yet an unspecified number of disciplines. 2. In addition, three month overseas courses will be provided by the project (as listed in Appendix B), in subjects specifically related to the proposed components / subprojects for professional staff from both the ministries and recruited by the project to be engaged in implementation of project activities. The following capacity building courses will be included: watershed management, rangeland management, GIS techniques, and as yet unspecified disciplines. 3. Local technical courses, facilitated by international and domestic trainers, will be provided by the project for staff from both the ministries and recruited by the project engaged in implementation of project activities. The courses will be tendered for by the project management and will include the following capacity building disciplines: o Engineering: management, contract administration, flow measurement, operation and maintenance, surveying, construction safety, irrigation planning, and flood protection & emergency management, o Agriculture: on-farm water management, business management, horticultural demonstration techniques, horticultural processing, alternative livelihoods, participatory training, fodder production, dairy management, and small animal management, o Project Implementation: data management, computer skills, advanced computer skills, project management, financial management, report writing, English language, and as yet unspecified disciplines required to implement the additional investment allocation for the WRID component.

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4. The proposed capacity building course numbers and costs are summarised in Appendix B11.

7.2 Project Management

7.2.1 Introduction

The WBP is a large and complicated project by Afghan standards, in part because of limited local capacity to support projects and in part because there are serious logistic and at times security issues to manage. It will require a large number of national and international staff to manage and implement the project. These are detailed in Appendix D Technical Assistance Support with TORs.

The project has to have a project management approach that allows the implementing agents and the recipient Ministry and Department Partners to work co-operatively and effectively. Although the loan will be administered through Kabul, the implementation will be through Herat Provincial Department of Energy and Water. Hence the Project Implementation Unit (PIU) will be based in Herat. A Management Board or a Steering Committee consisting of representatives of the MEW, ADB and other participating Ministries would be established in Kabul to oversee the project and act as a dispute resolution body. A Steering Committee would be established at Provincial level to coordinate activities and resolve issues at the implementation level.

It is assumed the project will be implemented through a consulting company or companies that will supply the technical assistance and manage the loan funds for capital works and procurement in conjunction with the DEW and MEW. The consulting company will supply the Team Leader who would manage the PIU in conjunction with DEW representatives. The consulting firm would have a Project Director to oversee the PIU team and liaise with the Steering Committee in Kabul regarding implementation issues as well as the Team Leader. The Project Director and the Team Leader would report to the Steering committee.

As MEW is the responsible Ministry, there will be an expectation that the project will direct funds and activities through the MEW and DEW. However, cooperation with other ministries is necessary and important, for example with Ministry of Agriculture and Animal Husbandry and Food (MAAHF) which will be the Projects department partner for implementation. The Western Basins are mostly rangelands and IWRM must consider the rangeland and rangeland policies as the MEW moves towards the establishment of River Basin Management bodies. The extent to which funds can be directed to other Ministries and Departments will need to be negotiated and coordinated through the Steering Committee if there are problems at the PIU level.

The PIU would sit within the DEW building and would have access to staffs from DEW and possibly other Departments such as Agriculture housed within the same Building. An office with full facilities would need to be established in Obe supported by a guesthouse for long term staffs. The Obe office would report to the Team Leader in Herat and be responsible for certain aspects of project implementation. The reason for the Obe office is that the road access to Obe makes day travel back and forth to Herat not feasible so staff would need to be based there in order work effectively on sub projects.

Detailed Implementation and management arrangements are included in Appendix C, Project Operations Manual.

11 Details are given in Attachment 11: Capacity Building Schedules and Technical Assistance Support.

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7.2.2 Project Structure

The organograms below (Figure 7-1 to Figure 7-5) outline the structure of the project and how the project components relate to each other. More detail is included in the Project Operation Manual in Appendix C.

7.2.3 Indicative Project Implementation Schedule

The indicative sub projects that comprise the major infrastructure input will be implemented over 4 years concurrently with rolling implementation of the other components as appropriate. At around 3 years a review of progress and outcomes should be undertaken and planning for further implementation completed. Ongoing planning and implementation during the first few years could take the project well beyond the initial sub projects although this will depend on the capacity of TA to support activities and local staff and contractors to implement activities in a timely manner.

Start up timing is a critical factor for the first year of implementation because of the time to establish the project in this environment and location and, the severity of the winter and delays caused by weather, access, mobility and communications during this time. It is stated elsewhere that there is little to be gained by having TA on site during the 3 months of winter because of the difficulty of operating in Afghanistan during this time. If start up is delayed until well into the Afghan financial year (starting March/April) and or the spring/summer period, the first year will largely be wasted.

During the first year, it is envisaged that a limited amount of infrastructure will commence because the project will take some time for establishment and the logistics involved in finding offices and accommodation, transport, communications and so on. Negotiating contracting procedures, prequalifying contractors and detailed designs will also take time. Sourcing appropriate local people for training will be a major undertaking and could involve conflict of interest with the national level in Kabul. However, people sourced in general from the Herat and provincial areas would be preferred as they are more familiar with these areas and are more likely to stay during and after the project.

7.2.4 Component 1

The key start up for Component One is the establishment of the project office with GIS and computer/databases to underpin the fieldwork in land use mapping and the planning for groundwater survey and monitoring, including the well census with trained local technicians. Community consultations for pilot watershed sites will commence in conjunction with counterparts. Selection of candidates for training will be especially important to start the process of capacity building. Also critical will be collecting the available data and reassembling the information base collected during the PPTA and by other projects to give the TA a good start for implementation.

7.2.5 Component 2

The key start up for Component Two is establishing contracting procedures, prequalifying contractors and establishing construction supervision for the Jui Nau canal works to set the framework for ongoing works. Actual work on the Jui Nau should commence as soon as possible to have a positive impact but establishment and the issues that arise will mean that a limited amount of work will be completed in the first year. Selection of candidates for training will be especially important to start the process of capacity building. Undertaking more detailed designs and selecting and training local staffs in the basics of engineering such as field surveying and data recording will underpin ongoing work. Community consultations and community awareness raising will be started as soon as possible to refine

113 Western Basins Project Final TA Report – July 2005 the community consultation process and provide support for interventions and start of physical works in Jui Nau.

7.2.6 Component 3

Agricultural and Livelihoods Support Services is intended to follow on from rehabilitation, but a considerable amount of design and preparatory work should be carried out in Year 1. This will include: • Community mobilisation; • Identification of service groups; • Needs assessment; • Extension support design; • Preparation of materials and demonstrations; • Procurement; and • Staffing and training needs.

A firm hold on these issues by TA staff in Year 1 will certainly provide a good start for subsequent implementation, particularly as ALSS will be replicated in broadly similar packages throughout the sub project and subsequent rehabilitation areas.

114 Western Basins Project Final TA Report – July 2005

Figure 7-1: Flowchart; WBP Management Structure

Government of Afghanistan

Ministry of Finance (Executing Agency) ADB Ministry of Energy and Water (Main Implementing Agency)

National Level Steering Committee: Representatives from: ADB, Development Partners, MEW, MAAHF, MMI, MRRD, NEPA, MWA, Governor’s Office, WBP Director National

Provincial Provincial Level Implementing Committee: Representatives from: DEW, DAAHF, DMI, DRRD, DOE, DWA, Governor’s Office, Team Leader

Project Implementation Unit

DEW Project Management Team DRRD

Herat Office Obe Office DWA DAAH

Component 2 Component 1 Component 3 Component 4 PIT1 PIT2

Note: PIT = Project Implementation Team, ADB = Asian Development Bank, MEW/DEW = Ministry/Department of Energy and Water, MWA/DWA = Ministry/Department of Women’s Affairs, MRD/DRRD = Ministry/ Department of Rural Reconstruction and Development, MAAHF/DAAHF = Ministry/Department of Agriculture, Animal Husbandry and Food, MMI = Ministry of Mines and Industry, NEPA/DOE = National Environmental Protection Agency/Department of the Environment. 115 Western Basins Project Final TA Report – July 2005

Figure 7-2: Flowchart; Component 1

Component 1: Integrated Water Resources Management

Groundwater Investigation GIS Training Strengthening Institutional Strengthening and Modeling & Environmental Monitoring

Database Establishment

• Chemical Testing • Overseas Scholarships • Computers, Plotter, Software, • Train Local Env. Specialists • Bacteriological Testing • Domestic Training Courses Training • Env. Screening of Subprojects • Groundwater Depth Monitoring • Establish Env. baseline

Mathematical Modeling of Support for DEW & Basin Authority Maps and Database to evaluate Collect baseline environmental data Groundwater Volumes, Recharge • Office Equipment Water Resources, Land Use, related to sub-project areas. Establish Rates, Groundwater and Surface • Vehicles Temporal Changes. environmental database, monitor Water Linkages. • O&M Machinery and Equipment environmental changes.

116 Western Basins Project Final TA Report – July 2005

Figure 7-3: Flowchart; Component 2

Component 2: Water Resources & Irrigation Development

5 Initial 20 Additional 7 Additional Additional Sub-Projects Sub-Projects, Sub-Projects, Sub-Projects, Water Resource Middle & Lower Upper, Mid & Lower Murghab Basins Development Infrastructure Hari Rud Hari Rud

Survey, Design, Construction Survey, Design, Construction Survey, Design, Construction Survey, Design, Construction Infrastructure Improvements Infrastructure Improvements Infrastructure Improvements Infrastructure Improvements for 14,000 ha for 40,000 ha for 10,000 ha for various additional WR infrastructure

Training in Management, Operations and Maintenance for Irrigator Organizations

Equipment, Machinery, Physical Support for Management, Operations and Maintenance

117 Western Basins Project Final TA Report – July 2005

Figure 7-4: Flowchart; Component 3

Component 3: Agricultural and Livelihoods Support Services

Livestock and Water Management Credit Services for Micro-Finance Horticultural Services Veterinary Services Services Crop Inputs

• Horticultural • Training in On-and- Private Sector Credit Micro-Credit for: Demonstrations Improved: Off-Farm Water for: • Beekeeping • Improved Orchard • Fodder Production Management • Fertilizer • Sericulture Stock • Dairy Cow • Water Storage for • Seeds • Poultry • On-Farm Management orchards and • On-Farm • Plant Protection • Animal Bank Processing of fruits vineyards

and nuts Processing of • Demonstrate To be implemented To be implemented • Training in Livestock Products groundwater with the assistance of with the assistance of Horticulture Irrigation / Drip MISFA IFDC Management Irrigation

118 Western Basins Project Final TA Report – July 2005

Figure 7-5: Flowchart; Component 4

Component 4: Project Management and Capacity Building

International Scholarships and Project Management, Monitoring Procurement Community Awareness, Training for MEW and Accounting, and and Public Relations DEW Staff Financial Control Evaluation Contracting

Identify Educational Manage Project Design and Identify procurement Prepare and Institutions, Courses, Books, Maintain Implement sources, contractor disseminate material Training running tabulation of Monitoring and qualification, contract on protection and Opportunities, accounts and Evaluation Plan, preparation and conservation of Manage Logistics expenditures, M&E Reporting to maintenance. water resources and and Visa Control Payments. ADB and GoA. the WBP’s activities. Arrangements.

119 Western Basins Project Final TA Report – July 2005

7.2.7 Component 4

The key start up for Component Four is twofold; establishing the project management unit and getting this operational with procedures in place to support the other components and; selection of candidates for employment and training under capacity building. These will form the basis for the long term management of the project and the basis for future management of water resources in general in the Western Basin. The logistics of establishing an office, finding and equipping suitable accommodation, procurement of equipment and getting this on site especially vehicles will take some time. At least 6 months should be allowed before the inception report to allow time to get the basics in place.

It will be crucial to identify suitable people at different levels within the cooperating departments, NGO’s and district officials to work alongside and, start of the community consultation process to select and develop the service groups that will receive some project support along the canals and other project sites such as the watershed pilots. It will take some time to find and select service groups; time for the concepts of the service groups and what they can offer to be effectively communicated to the different groups and, time to find common understanding with service groups, counterparts and project staffs on what can be offered and how to approach this.

Indicative Implementation and Staffing Schedules are in the Figure 7-6 and Figure 7-7.

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Figure 7-6: Summary Implementation Schedule

121 Western Basins Project Final TA Report – July 2005

Figure 7-6: Summary Implementation Schedule (continued)

122 Western Basins Project Final TA Report – July 2005

Figure 7-7: Summary Staff Schedule

Quarters start in March - Q1 is March, April, May; Q2 is June, July August;Q3 is September October November; Q4 is December January, February and Q4 is a non active quarter Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Y1Q1 Y1Q2 Y1Q3 Y1Q4 Y2 Q1 Y2Q2 Y2Q3 Y2Q4 Y3Q1 Y3Q2 Y3Q3 Y3Q4 Y4Q1 Y4Q2 Y4Q3 Y4Q4 Y5Q1 Y5Q2 Y5Q3 Y5Q4 Y6Q1 Y6Q2 Y6Q3 Y6Q4 Y7Q1 Y7Q2 Y7Q3 Y7Q4

Comp.1 Institution WRS 7 months

GIS Sp 12 months

Hydrogelogist 21 Months

Environmental Sp 12 Months

Comp.2 Irr. Engineer 42 month

Irr. Engineer 30 Months

Design Engineer 24 Months

Cons. Engineer 33 Months

Flood/Dam Eng 12 Months

WUA/WUG Sp 27 Months

Resettle. Sp 6 Months

Socil Assess Sp 14 Months

Comm Dev. Sp 21 Months

Comp.3 Ag Ext Sp 30 Months

On Farm Water Sp 18 months

Livestock Sp 12 Months

Vet Sp 6 Months

Hort Sp 18 Months

Alt.Livelihood Sp 9 Months

Comp 4 Team Leader 57 Months

Procurement Sp

Cap. Build Sp 24 Months

Training Coord Sp 7 Months

Mat./Graphics Sp 9 Months

Comm. Sp 6 Months

M&E Sp 12 Months

Agric. Economist 8 months

Unspecified Disciplines 27 Months

123 Western Basins Project Final TA Report – July 2005

7.3 Financing Schedule

The Financial Plan will be heavily dependant upon startup timing and how the Components and project parts are packaged and contracted. Any delays and difficulties will greatly reduce the drawdown of funds as implementation is slowed and the winter further delays the ongoing work across the board. Similarly, if the Components or parts of components experience delays in contracting and are out of sequence with the other parts, this mismatch will have an impact on implementation schedules and the financial plan. The following schedule assumes a startup with the Afghani financial year (March/April) and a full season’s work to October/November. Details of the financial schedule are given in Figure 7-8.

124 Western Basins Project Final TA Report – July 2005

Figure 7-8: Financing Schedule

Totals Including Contingencies 06/07 07/08 08/09 09/10 10/11 11/12 12/13 Total A. Civil Works 1. Component 1 Groundwater Demonstrations - 384.9 - - - - - 384.9 2. Component 2 (subcomponent 1) a. Subproject 1: Jui Nau Canal 310.4 2,011.7 - - - - - 2,322.0 b. Subproject 2: Obe Wash 295.6 430.2 - - - - - 725.8 c. Subproject 3: Sare Pul (Right Bank) - 724.9 1,452.4 - - - - 2,177.3 d. Subproject 4: Pashdan Wash - 1,852.7 711.2 - - - - 2,563.9 e. Subproject 5: Yahia Abad Canal 68.4 439.9 - - - - - 508.4 f. Subcomponent 1: Design Contract 96.8 198.4 33.7 - - - - 328.9 g. Subcomponent 1: Compensation 3.9 28.3 11.0 - - - - 43.1 Subtotal 775.1 5,686.0 2,208.3 - - - - 8,669.4 3. Subcomponent 2 & 3: Additional Allocation - - - 2,475.0 7,050.0 8,050.0 8,050.0 25,625.0 4. Component 4 a. Project Office (Herat) 1,253.6 ------1,253.6 b. Project Office (Obe) 689.5 ------689.5 Subtotal 1,943.0 ------1,943.0 Subtotal 2,718.2 6,070.9 2,208.3 2,475.0 7,050.0 8,050.0 8,050.0 36,622.4 B. Goods y 858.4 1,566.4 48.9 112.5 275.0 275.0 1,065.8 4,201.9 1. Vehicles & Machiner 2. Equipment 1,508.0 296.2 - - - 228.2 - 2,032.5 Subtotal 2,366.4 1,862.6 48.9 112.5 275.0 503.2 1,065.8 6,234.4 C. Services 1. Capacity Building 2,285.6 1,988.7 725.7 - - - - 5,000.0 2. Agricultural & Livelihood Support Services (ALSS) 150.0 725.6 856.1 712.4 1,944.1 1,688.8 1,650.0 7,727.0 3. Consulting Services 3,387.0 5,302.7 4,270.4 2,712.7 781.0 314.8 291.4 17,060.0 Subtotal 5,822.6 8,017.1 5,852.1 3,425.1 2,725.1 2,003.6 1,941.4 29,787.0 D. Recurrent Costs 1. Civil Works MO&M \1 - - 94.1 95.9 144.8 164.7 167.8 667.4 2. Project Implementation 1,001.5 2,313.8 2,487.9 2,535.1 2,583.3 2,632.4 2,682.4 16,236.3 Total 11,908.7 18,264.3 10,691.3 8,643.6 12,778.2 13,353.9 13,907.4 89,547.4 ______Source: Project Preparation Technical Assistance (PPTA) estimates, Jul 2005. \1 Mananagement, Operation and Maintenance.

125 Western Basins Project Final TA Report – July 2005

7.4 Monitoring and Evaluation

A monitoring and Evaluation (M&E) Plan has been developed for all activities conducted under the WBP. This is discussed in detail in the Appendix F. The WBP includes dedicated M&E staff to assure the effectiveness of the Project and related activities.

Monitoring refers to the continuous assessment of the performance of a project and its progress towards achieving objectives and outputs.

This involves: • collecting and analysing information to determine whether activities are being completed as planned and within the time frame specified; • confirming the quality, relevance and timeliness of activities and inputs; • ensuring that appropriate action is being taken to manage risks and unforeseen problems; • ensuring that expenditure is in accordance with agreed budgets.

Analysis of these data may lead to actions such as re-planning, rescheduling or re-orienting an activity towards the achievement of the output targets.

Evaluation is the assessment of the impact of Project interventions on target groups. These are the existing Community Irrigator Institutions (CIIs) and constituent management, staff and membership, as well as other target beneficiaries. Government counterpart agencies at local and national levels are an example. Also, to a lesser extent, is the assessment of the impact of the Project on the wider community including non-target beneficiaries (for example, the strengthening of the private sector to support the existing project, as well as similar work in the future).

The purpose of the M&E plan is to provide clear guidelines for monitoring the progress and quality of project activities, and evaluating the performance and impact of project interventions.

In particular, the M&E Plan is intended to ensure: • the timely collection and analysis of information to inform and guide strategic project development and implementation; • strategies and mechanisms are in place for involving counterparts and beneficiaries in the ongoing monitoring of project implementation; • mechanisms are in place to facilitate the feedback of lessons and recommendations into the ongoing management and implementation of the project; • responsibilities for monitoring and evaluation are clearly outlined.

Performance assessment can be divided into 3 aspects: 1. assessment of the process of implementation; 2. assessment of immediate outcomes of implementation; and 3. assessment of long-term impacts.

A preliminary plan for M&E has been prepared which has given high priority to simplicity of implementation while addressing the process, outcomes, and long-term impacts of the WBP. The majority of the monitoring data required will be generated directly through WBP implementation activities. A portion of the indicators above will require special efforts at data gathering. To facilitate this, two special data gathering exercises are proposed, one shortly before the mid-term review, and the second near Project close-out.

126 Western Basins Project Final TA Report – July 2005

The WBP staffing plan includes inputs from foreign and national M&E specialists These specialists will refine, adjust, and oversee the implementation of the M&E plan, including the ongoing analysis of M&E data.

127 Western Basins Project Final TA Report – July 2005

8 PROJECT LOG FRAME

The table below list the project and component log frames. Table 8-1: Project log frame summary Design Summary: Performance Targets Monitoring Mechanisms Assumptions Western Basins & Risks Project Goals: • Raise the Measurable improvements • Statistics as collected • Improvements to productivity of in the production of staple by GOA and other irrigation will irrigated crops and farm incomes agencies. increase agriculture to within the targeted areas. • Socio-economic data agricultural improve rural collected by the WBP. production which incomes and will increase rural stem rural incomes which poverty. will reduce • Strengthen poverty. integrated water • Increases in crop resource production and management income may not (IWRM) for be measurable sustainable within Project development in timeframe. the Western Basins. Purpose: • Improve delivery • Greater numbers of • Numbers of trainings, • GOA will make of irrigation trained irrigation numbers of participants adequate and service and planning, design, from various GOA and appropriate staff equity of benefit management, other agencies. available for distribution. operations, and • WBP progress training and • Improve maintenance staff at all monitoring, progress participation. capacity, levels within GOA and reporting. • GOA is institutional CIIs. • MEW / DEW reporting. interested in framework, and • Irrigation infrastructure • Socio-economic IWRM and resources for upgrades covering surveys as per the improved IWRM. 50,000 ha irrigable WBP M&E plan irrigation in the • Increased area. Western Basins. household • Average increase in • Security situation incomes with income of over 20% per allows WBP equitable household activities to benefits for the • Poor and landless proceed as poor. farmers benefiting (% planned. increase in HH income) • Local from WBP communities are interventions. interested and • Indigenous people, cooperative. women, and other • WBP marginalized groups interventions are benefiting from the measurable project. within Project time frame. Outputs: Improved • Effective cooperation • Output from MEW & • Ministries will institutional between MEW and MAAHF. cooperate. framework for IWRM MAAHF • Review missions. • GOA will make through • Training and physical • WBP monitoring and available strengthening and support in information reporting. adequate and

128 Western Basins Project Final TA Report – July 2005

Design Summary: Performance Targets Monitoring Mechanisms Assumptions Western Basins & Risks Project capacity building of management and capable staff, local institutions. decision support tools funds and resources Improved • Groundwater • Progress of Groundwater understanding and monitoring, analysis, groundwater resources and utilization of water recommendations investigations. GW/SW and other natural completed by year 4. • Outputs of GIS relationships can be resources of the • Integrated GIS available determined through Western Basins. established • Progress of land use the suggested • Land use mapping, mapping. investigations. traditional grazing rights defined. Improved irrigation Improvements completed Progress monitoring as GOA and local water delivery for by end of WBP year 7. per WBP M&E Plan. communities 50,000 ha. interested and cooperative. Suitable areas for improvements exist. Improved capacity of • Appropriate trainings • Training records. • GOA and CIIs local institutions to for staff at all levels. • Delivery records & use will make staff operate and • Physical support records of equipment. available for maintain irrigation (provision of irrigation • WBP monitoring and trainings. systems. maintenance & reporting as per M&E • GOA and CIIs construction equipment Plan. will make to DEW and CIIs. operating funds • Adoption of improved available for O&M methods within equipment. DEW and CIIs. Substantially Average increase in • Number and progress Pilot sites are increased income for household income resulting of pilot programs (as identified, local households within from: increased cropping per M&E Plan). communities are sub-project areas, intensity, higher value • Number and progress cooperative. with bias toward crops, improved crop of replication of alleviating poverty. handling, increased access activities within WBP WBP and GOA to inputs, improved geographical area. staffs are available and interested. livestock management, (See M&E Plan). alternative income generation methods. Inputs: • Civil Works: $36.6 M • WBP budget and TA is adequate, • Vehicles & expense monitoring. competent. Machinery $4.2 M • Regular reporting. Local staff is • Office & Other adequate, Equipment: $2.0 M competent. • Capacity

Building: $7.7 M • ALSS: $17.1 M Consulting • $0.7 M Services:

• Irrigation MO&M: $16.2 M • Project Implementation: Total: $89.5 M

129 Western Basins Project Final TA Report – July 2005

Table 8-2: Component 1 log frame Design Summary: Performance Targets Monitoring Assumptions Component 1 Mechanisms & Risks IWRM Goals: • Raise the Measurable • Provincial statistics • Improvements productivity of improvements in the as collected by GOA to irrigation will irrigated agriculture production of staple crops and other agencies. increase to improve rural and farm incomes within • Socio-economic data agricultural incomes and stem the affected Provinces. collected by the production rural poverty. WBP. which will • Strengthen increase rural integrated water incomes which resource will reduce management poverty. (IWRM) for • Increases in sustainable crop production development in the and income may Western Basins. not be measurable within Project timeframe. Purpose: Improve capacity, Initiation of coherent As detailed in the WBP GOA is interested institutional framework, planning for integrated M&E plan in IWRM in the community water resource Western Basins. involvement, and water management within the resource utilization for Western Basins. the Western Basins. Outputs: Functioning • Effective cooperation • Output from MEW & • Ministries will institutional framework between MEW and MOA. cooperate. for IWRM through MOA. • Review missions. • GOA will make strengthening and • Training and physical • WBP reporting. available capacity building of support in information adequate and local institutions. management and capable staff, decision support tools funds, etc. (land use / environmental GIS mapping.) Improved • Well Installation • Number of The Basin’s understanding of completed, data monitoring wells groundwater surface & groundwater collection completed, compared to plan. resources and resources and inter- analysis of technical • WBP / consultant GW/SW relationship within the options, economic deliverables: maps, relationships can lower Hari Rud basin. feasibility, and reports, etc. be determined • Groundwater environmental impacts through the monitoring wells of groundwater suggested identified &/or exploitation completed investigations. installed as by Year 4. required. • Data readings collected from all wells as required. • Data compiled, groundwater model, maps produced. Physical support • Procurement of n • List(s) of equipment Equipment will be through provision of equipment to local procured & recipient used as agreed

130 Western Basins Project Final TA Report – July 2005

Design Summary: Performance Targets Monitoring Assumptions Component 1 Mechanisms & Risks IWRM O&M equipment to GOA irrigation agencies. and reasonably local GOA O&M maintenance agencies • Monitoring of work maintained. organizations (PID). (DEW) undertaken / • Use of above accomplished with equipment to improve the equipment. the O&M of irrigation systems.

Community • Regular stakeholder • Number of GOA facilitates awareness raised meetings at all sub- informational items awareness raising regarding WBP goals project sites. produced and activities. & objectives, WBP • Informational distributed. Local population is project activities, WR materials at DEW • Number of radio and interested in local management, offices in WBP areas. newspaper spots. events, WR environmental issues, • PSAs on local radio • Number of press management, etc. alternative livelihoods, and in local announcements, new etc. newspapers. interviews, news • Frequent media articles. interaction. Inputs: • Civil Works: $0.4M • WBP budget and TA is adequate, • Vehicles & expense monitoring. competent. Machinery $0.2M • Regular reporting. Local staff is • Office & Other adequate, Equipment: $1.8M competent. • Capacity Building:

• ALSS: $1.4M • Consulting $0.0M Services: • Irrigation MO&M: $1.7M • Project

Implementation: $1.6M Total: $7.1M

131 Western Basins Project Final TA Report – July 2005

Table 8-3: Component 2 log frame Design Summary: Performance Targets Monitoring Mechanisms Assumptions Component 2 & Risks WRID Goals: • Raise the Measurable • Provincial statistics as • Improvements productivity of improvements in the collected by GOA and to irrigation irrigated production of staple crops other agencies. will increase agriculture to and farm incomes within • Socio-economic data agricultural improve rural the affected Canals. collected by the WBP. production incomes and leading to stem rural increased poverty. rural incomes • Strengthen and reduced integrated water poverty. resource • Increases in management crop (IWRM) for production sustainable and income development in may not be the Western measurable Basins. within Project timeframe.. Purpose: Improve delivery of Improvements to Area covered by WBP Sufficient area irrigation service and irrigation infrastructure activities as per WBP M&E with cooperative equity of benefit affecting about 50,000 ha plan. communities can distribution in the in the Western Basins be identified. Western Basins area. Sub-project areas Outputs: New and • Improved irrigation Actual implementation All initial sub- rehabilitated infrastructure: schedule as compared to projects are Irrigation construction implementation Plan as per feasible and Infrastructure: underway by WBP WBP M&E plan. implementable. designed, year 2, complete by constructed and year 4 for 5 sub- Initial sub- functional (Intake projects: projects are structures, Sediment Jui Nau, 5000 ha adequately Control Structures, Obe Wash, 800 ha representative of Water Distribution Sare Pul, 2000 ha opportunities and and Control Pashdan Wash, 4300 needs throughout structures, Flow ha the WBP project Measurement Yahia Abad, 900 ha area. Existing water structures, etc.) • Additional 40,000 ha users support (approx 26 sub- rehabilitation, projects) identified, which may designed, completed change by end of year 6. operational methods. New and • Identify and Expenditures compared to GOA is rehabilitated implement small Budget & workplan (see WBP supportive. infrastructure to interventions: M&E plan). Adequate improve local bridges, erosion number of access, provide protection, river appropriate sites flood protection, training, flood identified. improve domestic prevention, drinking water supply, etc. water supply, Local communities are

132 Western Basins Project Final TA Report – July 2005

Design Summary: Performance Targets Monitoring Mechanisms Assumptions Component 2 & Risks WRID rainwater harvesting, cooperative. Physical support • Provision of O&M / • List(s) of equipment Local water user through provision of construction procured & recipient organizations will O&M equipment to equipment to water agencies. use equipment as local water user user organizations in • Monitoring of work agreed and organizations. sub-project areas undertaken / adequately (Shared with • Use of above accomplished with the maintain Component 4) equipment by local equipment. equipment. agencies to improve the O&M of irrigation systems. Improved capacity of • Management and • Number of trainings Water users will local CIIs to operation staff trained • Number of participants support higher manage, operate, in technical areas and • Members lists within each levels of MO&M, and maintain the business management CII which may irrigation systems. at all sub-projects. • System Inventory lists require • CIIs financially self within each CII management sufficient (balanced • Budget and Workplan lists changes, change budget) at all sub- within each CII operational projects. • Adoption of new water methods, and distribution methods. increase service • System maps lists within fees. each CII Inputs: • Civil Works: $34.3M • WBP budget and expense • TA is • Vehicles & monitoring. adequate, Machinery $1.6M • Regular reporting. competent. • Office & Other • Local staff is Equipment: $0.00 adequate, • Capacity competent Contractors Building: $0.7M • are available • ALSS: $7.7M and • Consulting Services: competent $5.8M • Irrigation MO&M:

• Project Implementation $0.7M $0.0M Total: $50.8M

133 Western Basins Project Final TA Report – July 2005

Table 8-4: Component 3 log frame Design Summary: Performance Targets Monitoring Mechanisms Assumptions Component 3 & Risks ALSS Goals: • Raise the Measurable • Provincial statistics as • Improvements productivity of improvements in the collected by GOA and to irrigation will irrigated production of staple crops other agencies. increase agriculture to and farm incomes within • Socio-economic data agricultural improve rural the affected Provinces. collected by the WBP. production incomes and which will stem rural increase rural poverty. incomes which • Strengthen will reduce integrated water poverty. resource Increases in management crop production (IWRM) for and income may sustainable not be development in measurable the Western within Project Basins. timeframe. Purpose: To assist • Increase in average WBP socio-economic • Local communities, farm family income by monitoring as per M&E communities especially project year 7 in Plan. need minor disadvantaged rehabilitated areas assistance to members, to realize • Income increased for realize full maximum benefits landless families in benefits from from irrigation sub-project areas due other WBP improvements and to Component 3 interventions. related WBP interventions by WBP • Local interventions. year 7. communities are interested and cooperative.

Outputs: Demonstrate: • Water management • Site Inspections. Farmers are • Improved water demonstrations • Farmer interviews. interested and distribution and implemented at each • Records of water cooperative. distribution equity sub-project area. withdrawals compared within canal • 40% of farmers in sub- to water allocations at systems; project areas exposed various points on • Improved on-farm to Demonstration canals. water Sites &/or Activities. • Annual records of management; • Adoption / replication irrigated areas & • Increased ratio of of demonstrated cropping intensity. water used to improved methods by • Trader records of crop crop value. sub-project farmers. quantities, values. Improved availability Use of N, P2O5, improved • Site Inspections. • Availability of of farming inputs seed, plant protection • Farmer interviews. inputs is (seed, fertilizer, etc.) increases annually. • Private sector credit constrained by through increased loan records operated limited credit. availability of credit by IFDC. • Improved to private sector • Input distribution records access to inputs suppliers. by participating traders. will increase ag production. Increased irrigated Second crop vegetables Canal water management Increased water cropping intensity &/or perennial crops over records: supply from

134 Western Basins Project Final TA Report – July 2005

Design Summary: Performance Targets Monitoring Mechanisms Assumptions Component 3 & Risks ALSS through expanded 15% of sub-project • Increases in irrigated irrigation system second-season irrigated areas by project areas upgrades is cropping and year 4 (orchards, • Increase in irrigated sufficient and perennial crops. vineyards, alfalfa). cropping intensity reliable. Improvements in Private orchard nurseries • Records of private Improved varieties genetic quality and & vegetable seed nurseries and vegetable are available and management of growers established in seed growers will be accepted by orchards and each sub-project areas. • Orchard inventory farmers, traders vineyards. monitoring survey and consumers. Demonstrate: • On-farm fruit, nut and • Site Inspections. Quantity and Improved on farm vegetable processing • Farmer interviews. quality can be storage, handling demonstrations • Processing statistics of improved on farm and processing established in each Vegetable, Fruit and Nut through grading, sub-project area service groups, better handling, • 40% of farmers in sub- • WBP project training storage and project areas exposed statistics cleanliness. to Demonstration Sites &/or Activities. • Adoption / replication of demonstrated improved methods by sub-project farmers. Increased production • 250 new stall fed dairy Processing statistics of Local markets exist of dairy products by cattle owned by Dairy Producers service for dairy products. target groups. members of Animal groups, project training Bank by WBP year 4. statistics. • Improved dairy cow management by 10% of dairy cow owners in sub-project areas by WBP year 6. • 10% increase in value of dairy production in sub-project areas by WBP year 6. Expanded Microfinance made Microfinance loan and Target groups alternative livelihood available for: training records: interested and opportunities for • sericulture (100 • Loan volumes cooperative. landless households families), • Recovery rates Markets available and women through for products. • bee-keeping (100 micro-finance. families), • improved poultry (900 families), • Animal Bank stall feeders (1,250 families). Inputs: • Civil Works: $0.0M • Vehicles & Machinery $0.5M • Office & Other Equipment: $0.0M • Capacity Building: $1.3M • ALSS: • Consulting $2.8M Services:

135 Western Basins Project Final TA Report – July 2005

Design Summary: Performance Targets Monitoring Mechanisms Assumptions Component 3 & Risks ALSS • Irrigation MO&M: • Project $0.0M Implementation: $3.1M Total: $7.7M

136 Western Basins Project Final TA Report – July 2005

Table 8-5: Component 4 log frame Design Summary: Performance Targets Monitoring Mechanisms Assumptions Component 4 & Risks Project Management and Capacity Building Goals: • Raise the • Measurable • Provincial statistics as • Improvements productivity of improvements in the collected by GOA and to irrigation will irrigated agriculture production of staple other agencies. increase to improve rural crops and farm • Socio-economic data agricultural incomes and stem incomes within the collected by the WBP. production rural poverty. affected Provinces. which will • Strengthen increase rural integrated water incomes which resource will reduce poverty. management • Increases in (IWRM) for crop production sustainable development in the and income may

Western Basins. not be

• Ensure the WBP is measurable

managed efficiently within Project and effectively in timeframe support of project • WBP can be goals and Project M&E and • WBP Reports and field implemented component reports show effective verification effectively within purposes implementation the constraints of Afghanistan Purpose: Develop the capacity • Establish / • WBP monitoring and • GOA will of GOA and other strengthen WRM reporting as per M&E support these agencies to manage and irrigation Plan. activities. water resources in agencies such as: • A sufficient Afghanistan in an MEW, DEW, number of integrated manner. contractors, CIIs, adequately

etc. talented local • These institutions staff can be

working in a located and coordinated and trained.

effective manner. • Local institutions will

be given

sufficient Implement the WBP leadership from within timeframe and WBP monitoring and • Establish and national level, or budget to produce reporting as per M&E Plan. sufficient outcomes implement the autonomy, to project in a coordinated and act effectively. effective manner • Various agencies will cooperate. Outputs Local government • MEW / DEW staff • University transcripts. Capacity can be trained in trained in technical • Certificates of training built through management, areas, completion. training and on-the- implementation, O&M management, • Via WBP reports: job experience. of irrigation systems. service orientation, • Participation in WBP O&M methods. activities (on-the-job

137 Western Basins Project Final TA Report – July 2005

Design Summary: Performance Targets Monitoring Mechanisms Assumptions Component 4 & Risks Project Management and Capacity Building • Scholarships for training). MEW / DEW staff in • Self-initiative O&M aspects of IWRM activities • Numerous local trainings (See Training Plan) Physical support of • Procurement of office • List(s) of equipment Local water user local government equipment procured & recipient organizations will agencies through (computers, agencies. use equipment as provision of O&M photocopy machines, • Monitoring of work agreed and equipment and office etc.) and vehicles. undertaken / adequately equipment to local • Use of above accomplished with the maintain water user equipment by local equipment. equipment. organizations. agencies to improve the O&M of irrigation systems. Improved capacity of • Management and • Number of trainings. • to irrigation will local CIIs to manage, operation staff • Number of training increase operate, and maintain trained in technical participants. agricultural the irrigation systems. areas and business • Membership list within production management at all each CII. which will sub-projects. increase rural • System Inventory list incomes which • CIIs financially self within each CII. sufficient (balanced will reduce • Budget and Workplan poverty. budget) at all sub- within each CII. projects. • Adoption of new water distribution methods by CII operations staff. • System maps of each CII. Contractor, CII / WUA, • Training modules • Training activity reports. Training in these NGO, WBP staff developed conducted areas is necessary. training in construction for all interested / Contractors, WBP safety, tendering / required parties staff, etc. must be bidding, contracts, etc. before informed. commencement of bidding and contract issues. • Trainings modules repeated on regular basis to keep all interested / required parties qualified in these subjects WBP staff training, • WBP functions well • Training activity reports. • WBP staffed capacity building, as organization. • Staff evaluation reports. with adequate organizational and • All WBP local staff • Project handover as per numbers of institutional well trained and schedule. appropriately strengthening. capable in relevant talented and fields. motivated • Local staffs take over persons. management and • WBP staff made implementation of available for WBP at end of Year training activities

138 Western Basins Project Final TA Report – July 2005

Design Summary: Performance Targets Monitoring Mechanisms Assumptions Component 4 & Risks Project Management and Capacity Building 4. according to Training Plan. Effective coordination • Stakeholders and WBP reporting Stakeholders will with GoL, NGO, other interested parties are work together. agencies and well informed. stakeholders affected • Coordination issues by WBP and in sector. are managed smoothly and effectively. Training / Capacity • Responsive • Record of Component 4 WBP components Building / Institutional assistance to WBP activities. 1, 2, 4 will require Strengthening support components 1, 2, 4 assistance in to other WBP in developing various formulating and components. training and preparing various information training and info distribution materials. materials, etc. Project is effectively All cooperating Project M&E, field Cooperation can be implemented and agencies work verification visits gained and meets outcome effectively together managed to expectations. facilitate implementation Inputs: • Civil Works: $1.9 M • WBP budget and • Vehicles & $1.9 M expense monitoring. Machinery • Regular reporting. • Office & Other $0.2 M Equipment: • Capacity Building: $1.6 M • ALSS: $0.0 M • Consulting $6.8 M Services: $0.0 M • Irrigation MO&M:

• Project $11.5 M Implementation: Total: $23.9 M

139 Western Basins Project Final TA Report – July 2005

9 POLICY ISSUES THAT AFFECT WBP IMPLEMENTATION

9.1 Background

Afghanistan has had several regimes in recent years; all have had different approaches and often conflicting concepts of policy, rule of law and regulation. This has also been complicated by war, violent regime change and discontinuity of staff, policy, laws and a large disconnect between national and provincial and local application, interpretation and support for policy and laws/regulations. Given the history of the last 30 to 40 years, this is not that surprising. However, there are some issues that will have an impact upon implementation and these will not be overcome by policy in Kabul even though the policy may be in place.

9.2 Importance of the Local Imperative

Local issues and concerns are the driving force for local action in Herat in irrigation and water issues. During the recent floods for example, it was flooding that was the issue, longer term perspectives were not an issue and immediate needs were. There are very good practical reasons for this – the people live in the areas and are responding to problems as they occur and the demands of local people. Wider policy issues are less relevant and appear not be communicated well from Kabul downwards hence these are largely irrelevant, not understood and have little real value. The policy disconnect with Kabul brings into question the policy framework that is meant to underpin the implementation of WBP such as basin wide management and regulation of groundwater. The project can have a positive impact on this by increasing awareness and understanding of the wider issues.

9.3 The Reality of National and Local Capacity

Whilst promises are made and assurances given about support in Kabul and at the local level, the reality is that this is limited at best. Implementation will involve a large capacity building component in the early years to bring a group of people up to a standard where they will be useful and can take over the project implementation. Any pretence otherwise will cause serious embarrassment further into implementation. However, by increasing the capacity of a group of people, the potential is there for ongoing improvement and sustainability in water resource management.

9.4 Consolidation of Water Resource Management

At present, groundwater and surface water are not seen as one interconnected system from a policy and regulation perspective. While the MMI looks after groundwater and is meant to cooperate with MEW on regulation, this is not happening in practice. The MMI does not have the capacity to understand and regulate groundwater and the MEW is in the same position. At the local level, there is effectively no control mechanism and exploitation is proceeding in a scientific/knowledge vacuum about the resource. The project can address this and provide the knowledge base and make recommendations on use.

9.5 Policy Issues and Options

Policy issues and options to address these are given in Table 9-1.

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Table 9-1: Policy Issues and Options Policy Issues and Options Ministry/ Agent Responsibility within WB Issues Options to address Issues

MEW Implementing agent Lack of Staff and resources to support Mechanism to attract staff and support capacity building at projects national and provincial levels Lack of coordination with DEW Project management structure to address coordination at provincial level through an interdepartmental steering committee Lack of coordination with other Project management structure to address coordination at ministries national level through steering committee with other Ministries Does not have responsibility for Consolidate surface and groundwater management; possibly groundwater or on farm water use or also on farm water management, perhaps catchment rangeland management management in a wider sense DEW Coordinating / Has very little capacity to implement or Training for local staff and project recruited staff to be able to implementing agent coordinate activities at present cope with ongoing implementation over the life of project as international staff phases out after 4 years. WBP is much larger than current Improving the skills and quality of local contractors and inputs from all other donors put groups to implement activities together Attracting and retaining staff Offer incentives through the project and tied to the project to access training for engineering staff and others from DEW and other departments to allow them to work on the project, be trained and carry on the work, train excess to allow for attrition MAAHF Implementing or cooperating Lack of ongoing reforms and focus for Means of implementing national policy needs to be found agent activities that is achievable and goes beyond delegating to NGO’s MMI Cooperating agent Responsible for some aspects of Pass groundwater to MEW to consolidate into one agency. groundwater, research and assessment without capacity or information to effectively manage groundwater DAAHF Implementing or cooperating Few staff in districts, lack of resources Offer incentives through the project for involvement and limit agent and staff agricultural services to areas where counterparts are available to work with. Provide short courses for district staffs

141 Western Basins Project Final TA Report – July 2005

Policy Issues and Options Ministry/ Agent Responsibility within WB Issues Options to address Issues

and some provincial staffs to encourage some effort MRRD Cooperating agent Some overlap with rangeland Be inclusive of MRRD principles as outlined in Watershed management approaches DRRD Cooperating agent Overlap with rangeland and watershed Be inclusive and provide transport to sites of DRRD staffs approaches in community structures and cooperating NGOs at different sites to allow for implementation support from all. MBTA Overlapping Ministry dealing Unclear national policy and little Cooperate at local level and try to avoid existing hostilities at with migratory peoples implementation capacity provincial level DBTA Cooperating agent Almost no capacity at provincial level Be inclusive in land use mapping and migratory peoples for involvement consultation, provide transport for consultations with different groups, encourage input into database River Basin Planned for the future Planned for overall management of Support approach through Component One (IWRM) and Authority river basin resources capacity building Component 4 (Capacity Building) Mirabs and Mirab Cooperating agents and Community water managers and Support formation of Mirab councils that feed into higher councils community water managers planned for greater management level structures under the Basin Management approach, responsibility including O&M of provide training and support for O&M and improved rehabilitated systems management mechanisms. Support legislation and administrative changes to improve livelihoods of Mirabs Ministry of A potential cooperating Almost invisible but with oversight of Need to have a greater role at Provincial level into the future Women’s Affairs Department/Ministry women’s issues and a national although not easy to achieve in the current circumstances. presence in the Presidents Office

142 Western Basins Project Final TA Report – July 2005

10 PROJECT COST ESTIMATES

10.1 Methodology

The Project cost estimates have been prepared using the cost table software program (Costab), supported by the recently prepared ADB manual12.

10.1.1 Loan Preparation and Implementation Period

It is anticipated that loan effectiveness and project implementation will commence from mid 2006. This follows loan preparation that includes the fact finding mission, the appraisal mission, and loan negotiations that are tentatively scheduled for late 2005. Loan effectiveness, for estimating purposes, is assumed to be operational by mid 2006. It is proposed that the Project will be implemented over a seven year period13. The current fiscal year (FY) of the Government of Afghanistan began in March 2005. The proposed annual disbursement periods are based on the Afghanistan fiscal year and disbursements are therefore scheduled to commence in the mid part of the fiscal year 2006/07.

10.1.2 Base Costs

All PPTA cost estimates (base costs) relate to mid (June / July) 2005 values. Unit costs have generally been derived in US dollar (US$) equivalents. The Afghanistan Afghani (Afg) to US dollar exchange rate at the time of the PPTA (July 2005) was Afg 47.50 to $ 1.00. Project costs have been calculated using constant purchasing power parity (CPPP) rates during the implementation period.

10.1.3 Contingencies - Physical

The physical contingency on civil works has been estimated at twenty percent, and reflects the difficulty of site access, the status and quality of the design work at PPTA, the degree of reliability of locally determined unit rates and the level of experience of local contractors. For other expenditure accounts (investment and recurrent) contingencies have been estimated at 10 percent with the exception of the allocations for water resource and irrigation development project years 4 to 7 when no physical contingency has been applied.

10.1.4 Contingencies - Price

Base cost (negotiations) presuppose that loan effectiveness will be crystallised by mid (June / July) 2006, and assume that local currency cost inflation, from the time of the PPTA (12 months), will be 10.0 percent14 and foreign exchange cost inflation, over this same period, will be 3.0 percent15. During the implementation period, price contingency escalation of local currency costs is estimated at 5.0 percent per year in line with the current ADB inflation projections and for foreign exchange costs at 2.8 falling to 1.9 percent per year. Using CPPP exchange rate methodology and modest foreign exchange inflation projections, price contingency is significant as opposed to recent RRPs16, where zero percent foreign exchange inflation has been assumed resulting in zero price contingency.17

12 Costab 32 and Project Design & Costing, August 2003. 13 Extracts from Afghanistan: Country Strategy and Program (CSP) Update, August 2004, but extensively revised during PPTA review mission June 2005. 14ADB Aug 2004, “Country Economic Review – Afghanistan”, and EREA projections based on CPI inflation figures (source IMF and CSO data). 15 World Bank, Manufacturer’s Unit Value (MUV) index, Statistical Appendix of Global Development Finance, 2005 “Mobilising Finance and Managing Vulnerability”. 16 Afghanistan: RRP Andkhoy-Qaisar Road Project, December 2004, (physical contingencies set at 5 percent and price contingencies set at 0 percent for both foreign exchange and local currency) 17 The table is contained in Attachment 10 as Annex 1: Project Cost Estimates, Financing Plan and Procurement Arrangements, Table A10.1.X.

143 Western Basins Project Final TA Report – July 2005

10.1.5 Foreign Exchange, Local Duties and Taxes

Local duties and taxes attributable to unit cost items are identified under the appropriate expenditure account. The main sources of Government duty and tax revenue arise from customs duty on imported items and income tax on Afghanistan national individuals, partnerships and companies. Rates for customs duty range from 2.5 percent on essential food and non-food items, 5.0 percent on raw materials and capital goods, 8.0 percent on petroleum products, 10 percent on semi-manufactured goods and 16 percent on luxury goods. Rates for local income tax on earnings / net profit of Afg 1 to 12,500 (US$ 1 to 250) per month are exempt, Afg 12,501 to 100,000 (US$ 250 to 2,000) per month are taxed at 10 percent and over Afg 100,000 (US$ 2,000) per month at 20 percent. At present there is no sales tax levied in Afghanistan.

By implication civil works unit costs will contain an import duty element on equipment, fuel and materials. Vehicle, machinery and specialist equipment unit costs will also contain a duty element. Salaries of individual staff, involved in project implementation, will fall into the exempt rate for income tax but civil works contractors may be liable for local income tax on the domestic value added (DVA) portion of the unit rates.

Selected civil works unit costs are therefore broken down into the following cost categories: (a) equipment, (b) fuel, (c) materials, (d) unskilled labour, and (e) supervision. Within these cost categories the foreign exchange, local duty, DVA, and local tax elements have been estimated. For vehicles, equipment, training, agricultural and community support services, and consulting serves, these elements have again been estimated.18

10.1.6 Interest during Implementation

The financial charge of interest during implementation (IDI) on the proposed Asian Development Fund (ADF) loan is estimated at 1 percent per year during the implementation period. The interest charge is capitalised and paid from the ADF loan.

10.1.7 Summary Tables

Summary tables produced by Costab include, (a) project cost summaries (9 tables), inflation and exchange rates (1 table), financing plans (4 tables), procurement arrangements (2 tables)19.

10.2 Project Components and Sub Projects

A brief description of the identified investment and recurrent resource requirements, for the proposed components / subprojects, is given below.20

10.2.1 Component 1: Integrated Water Resource Management (IWRM)21

The component investment and recurrent cost estimates include: • Costs for the purchase of vehicles and motor cycles to support consultant and project staff implementation activities, • The procurement of (i) specialist Geographic Information Systems (GIS) equipment including; computers, printers, software, GPS receivers and satellite imagery, (ii) specialist instruments for conducting groundwater investigations and the drilling of

18 Detailed assumptions are given in Attachment 10 Annex 3: Expenditure Account Schedules and Unit Costs. 19 These tables are contained in Attachment 10 as Annex 1: Project Cost Estimates, Financing Plan and Procurement Arrangements. 20 Detailed component / subcomponent Costab tables are contained in Attachment 10 as Annex 2. 21 Detailed schedules / unit costs for vehicles, machinery, equipment, capacity building and project management are given in Attachment 10 as Annex 3.

144 Western Basins Project Final TA Report – July 2005

shallow 50 m wells (60 number), intermediate 100 m wells (60 number) and deep 200 m wells (8 number), and (iii) specialist environmental monitoring equipment, • Capacity building is to be provided for MEW/DEW, MAAHF/DAAHF and project staff, consisting of the following training: o Long term training abroad (1 year) in hydrology, hydrogeology, watershed management, rangeland management, GIS applications and development studies, o Short term training abroad (3 months) in GIS technical applications, and rangeland management, • Short term local technical courses for MEW/DEW, MAAHF/DAAHF and project staff, • Consultant services include costs for the following international consultants; (a) an institutional water resource specialist (17 person months), (b) a GIS database specialist (12 person months), (c) an hydrogeologist (21 person months), and (d) an environmental specialist (12 person months). Costs have been included for the purchase of essential office equipment. It is proposed that the Government will provide counterpart staff and, where practical, office accommodation. • Recurrent costs include estimates for professional, technical, and support staff and office and vehicle operating costs to implement the proposed component.

10.2.2 Component 2: Water Resources and Irrigation Development (WRID)

10.2.2.1 Subcomponent 2.1: Core Subprojects in Hari Rud basin

The 5 core subprojects are (i) rehabilitation of Jui Nau irrigation system, (ii) development of Obe Wash water resources, (iii) development of Sare Pul irrigation systems, (iv) development of Obe Wash water resources, and (v) rehabilitation of Yahia Abad irrigation system. Investment and recurrent expenditure estimates include: • Civil works investment costs associated with the construction and/or rehabilitation of intake galleries, control gates, flood protection, siphon rehabilitation, the main and branch canal rehabilitation, aquaduct rehabilitation, flood control rehabilitation, the upgrading of critical deficiencies with existing bifurcation structures, road and foot bridge improvements, and the construction of enhancement and diversion structures on both the Obe and Pashdan washes, • Costs for the purchase of essential machinery to carry out effective management, operation and maintenance (MOM) of the main canal, structures by the canal supervisors (wakils and mirabs), • The capacity building and consultant services costs have been included under component 4 (project management and capacity building) but allocated on a per hectare basis to component 2 for presentational purposes. • Costs for agriculture and livelihood support include, water management services, horticultural support services, livestock and veterinary services, agricultural input credit and microfinance for alternative livelihoods, • Incremental recurrent expenditure associated with the management, operation and maintenance of the main canal structures and the canal itself.

10.2.2.2 Subcomponent 2.2: Subproject Investment Allocation in Hari Rud basin

The additional investment allocation for subcomponent 2 is based on the extrapolation from average per hectare unit rates derived from the 5 core subprojects. It is assumed that a further 40,000 hectares (command area) could be developed in the Hari Rud basin within the four year period proposed (project years 4 to 7). Details of the unit rates, derived from the 5 core subprojects, for civil works, machinery, capacity building and agricultural support services and the proposed additional investment allocation are given in Table 10-1.

145 Western Basins Project Final TA Report – July 2005

Table 10-1: Subcomponent 2.1- Subproject Investment Allocation Hari Rud

Expenditure Accounts Subcomponent 1 Unit Rates Subcomponent 2 Core Subproject 1 – 5 Extension in Hari Rud Investment Hectares Hectares Investment (US$’000) \1 (No) \2 (US$/ha) (No) \2 (US$’000) \1

Civil Works Core Subprojects 1-5 6,450 \3 11,700 550.0 Subcomponent 2 550.0 30,000 16,500

Machinery Core Subprojects 1-5 300 11,700 25.6 Subcomponent 2 25.0 30,000 750

Capacity Building Core Subprojects 1-5 860 11,700 75.0 \4 Subcomponent 2 20.0 30,000 580

Agricultural Support Core Subprojects 1-5 1,760 11,700 150.0 Subcomponent 2 150.0 30,000 4,500

Total Investment Core Subprojects 1-5 9,370 11,700 800.6 Subcomponent 2 744.0 30,000 22,330

Source: Project Preparation Technical Assistance (PPTA) estimates, Jul 2005. \1 Base Costs (Jul 2005) exclusive of physical and price contingencies. \2 Irrigable hectares (assessed at 75% of a command area of 40,000 hectares). \3 Excludes design contract. \4 Majority of staff trained during project years 1 to 3.

10.2.2.3 Subcomponent 2.2: Subproject Investment Allocation in Murghab basin

The additional investment allocation for subcomponent 2.2 is based on the extrapolation from average per hectare unit rates derived from the 5 core subprojects. It is assumed that a further 10,000 hectares (command area) could be developed in the Murghab basin within the four year period proposed (project years 4 to 7). A total of US$ 5.5 million has been allocated.

10.2.2.4 Subcomponent 2.3: Water Resource Development

A total of US$ 5.0 million has been allocated.

10.2.3 Component 3: Agriculture and Livelihoods Support Services

The component investment and recurrent expenditure estimates include: • Costs for the purchase of vehicles and motor cycles to support consultant and agricultural / livelihood support staff activities, • Capacity building is to be provided for MEW/DEW, MAAHF/DAAHF and project staff, consisting of the following training: o Long term training abroad (1 year) in irrigation agronomy, o Short term training abroad (3 months) in livestock management, o Short term local technical courses for MAAHF/DAAHF and project staff, • Consultant services include costs for the following international consultants; (a) an agricultural extension specialist (30 person months), (b) an irrigation agronomist (18 person months), (c) a livestock specialist (12 person months), (d) a veterinary specialist (6 person months), (e) an horticulturalist (18 person months), and (f) an alternative livelihood specialist (9 person months). Costs have been included for the

146 Western Basins Project Final TA Report – July 2005

purchase of essential office equipment, workshops, training and office staff to support the consultants and it is proposed that the Government will provide counterpart staff and, where practical, office accommodation. • Recurrent expenditure associated with the technical staff and office and vehicle operating costs to implement the proposed component.

10.2.4 Component 4: Project Management and Capacity Building

The subproject investment and recurrent expenditure estimates include: • Civil works investment costs associated with the construction of a new office block in Herat and an office block with an accommodation unit at Obe, • Costs for the purchase of vehicles, motor cycles to support consultants, professional, technical and support staff activities of the Project Implementing Unit (PIU) in both Herat and Obe with a truck and mini-bus, based in Herat, to assist with project implementation operations, • Costs for the purchase, both for Herat and Obe PIUs, of computer equipment, office equipment and furniture, • Capacity building is to be provided for MEW/DEW, MAAHF/DAAHF and project staff, consisting of the following training are (details by training type are summarised in Table 10-2): o Long term training abroad (1 year) in as yet unspecified disciplines, o Short term training abroad (3 months) in as yet unspecified disciplines, o Short term local technical courses for MEW/DEW, MAAHF/DAAHF and project staff, Table 10-2: Summary of Capacity Building Technical Training Courses.

Capacity Building Courses by Project Year Unit Total Training Course Year 1 Year 2 Total Cost Cost (No) (No) (No) (US$) (US$’000)

Course Type Long Term 1/2 year (abroad) 24 17 41 40,000 1,640.0 Short Term 3 month (abroad 22 21 43 20,000 860.0 Local Technical Course (Int) \1 52 59 111 9,000 999.0 Local Technical Course (Dom) \2 121 60 181 1,000 181.0 Subtoal 219 157 376 3,680.0 Contingency 594.0 Additional Allocation (year 3) 726.0 Total 5,000.0

Source: Project Preparation Technical Assistance (PPTA) estimates, Jul 2005. \1 International trainer. \2 Domestic trainer (NGO contract).

• Consultant services include costs for the following international consultants, o component 2 (WRID): (a) 2 irrigation engineers (72 person months), (b) 2 design engineer (48 person months), (c) 2 construction supervisors (60 person months, (d) a flood control / dam specialist (12 person months), (e) a water user group specialist (27 person months), (f) a resettlement specialist (6 person months), (g) a social assessment specialist (14 person months), and (h) a community development specialist (21 person months). o Component 4: (a) a team leader / water resource specialist (57 person months), (b) a procurement specialist (15 person months), (c) a capacity building specialist (24 person months), (d) a training coordination specialist (7 person months), (e) a material / graphic designer (9 person months), (f) a communications specialist (6

147 Western Basins Project Final TA Report – July 2005

person months), (g) a monitoring and evaluation specialist (12 person months), (h) an agricultural economist (8 person months), and, (i) unspecified disciplines (27 person months) and o The following domestic consultants; (a) a project director (84 person months), and (b) a deputy team leader (84 person months). Costs have been included for the purchase of essential office equipment, workshops, training and office staff to support the consultants and it is proposed that the Government will provide counterpart staff and, where practical, office accommodation, • Equipment • Capacity building is to be provided for MEW/DEW, MAAHF/DAAHF and project staff, consisting of the following training: o Long term training abroad (1 year) in irrigation engineering, o Short term local technical courses for MEW/DEW, MAAHF/DAAHF and project staff, • Recurrent expenditure associated with the professional / administration staff and office and vehicle operating costs to implement the proposed project. Project staff requirements and transport allocations are summarised in Table 10-3.22

Table 10-3: Project Staff Requirements and Transport Allocations (numbers)

Item Components Project 1 2 3 4 Total

Project Staff Requirements: Professional 4 11 4 4 23 Technical 4 19 15 21 59 Support Staff 0 0 0 14 14 Support Staff (drivers) 4 13 5 10 32 Totals 12 43 24 49 128

Transport Allocation Project Management (4x4 saloon) - - - 2 2 Consultants (4x4 pick-up) 2 7 3 4 2 Professionals (4x4 Pick-up) 2 6 2 2 12 Technical Staff (motor cycle 125cc) 4 19 15 21 59 Truck (10 tonne) - - - 1 1 Mini-bus - - - 1 1

Source: Project Preparation Technical Assistance (PPTA) estimates, Jul 2005.

22 Detailed staffing and vehicle allocation schedules and consulting technical assistance budgets are given in Attachment 10 as Annex 4.

148 Western Basins Project Final TA Report – July 2005

10.3 Project Cost Estimates

Table 10-4: Project Cost Estimates (US$ million)

Component Foreign Local Total Exchange Currency Cost

C. Finance Charges during Implementation \4 1.0 0.0 1.0

Total Project Cost to be Financed \5 34.3 56.2 90.5 Percentage 37% 63% 100%

149 Western Basins Project Final TA Report – July 2005

10.4 Financing Plan

10.4.1 Introduction23

ADB resumed operations in Afghanistan in May 2002 with the approval of the Initial Country Strategy and Program (ICSP) 2002-2004, which committed US$500 million in loans and grants following a three-pronged approach to support Afghanistan’s reconstruction, namely; building capacity, establishing an appropriate policy and institutional frameworks, and the rehabilitation of essential infrastructure. Under the current Country Strategy Program (CSP) Update 2004-6, ADB agreed to focus loan and technical assistance on transport (roads and civil aviation), energy (power and gas), and natural resource management (agriculture, irrigation, and environment).

More specifically, in the agriculture and natural resource sector, key strategies include: (i) support to the Government in developing sector policies, strategies, and planning processes and institutional reform to create an environment for improving sector productivity and efficiency, (ii) improvement of irrigation water supply by helping rehabilitate sector infrastructure, especially irrigation systems, and to develop new infrastructure to improve the supply and reliability of irrigation water, and (iii) as part of this process, provide support in input and service provision.

The CSP identifies indicative pipeline assistance for lending products of firm loans for the proposed project of US$ 70.0 million of which US$ 40 million would be from the Asian Development Fund (ADF) and a provision for cofinancing of US$ 40 million.

10.4.2 Financiers and Disbursement Allocations

In view of the exceptionally difficult post-conflict circumstances that continue to prevail in Afghanistan, the Government has, for previous ADB financing, requested softer terms for Asian Development Funds (ADFs). The request is supported by recent analysis on Afghanistan’s debt sustainability by ADB and the International Monetary Fund (IMF), which concludes that funding for Afghanistan should be on a grant basis, or under highly concessional terms for key projects and reforms for which no grant funding can be mobilised. Afghanistan is eligible for grant funding under the recently concluded ADF IX replenishment resolution which will result in softer lending terms for Afghanistan. The special terms previously proposed are as follows: (i) grandfathering the pre 1999 ADF lending terms so that the loan has a 40 year maturity including a 10 year grace period, with a 1 percent interest charge throughout its term, and (ii) capitalising and charging the total amount of the interest charge during the grace period to the loan account. These special terms have been applied for other projects approved for Afghanistan since ADB lending operations resumed in late 2002.24

On the basis of a 60:40 allocation of ADFs between loan and grant, it is proposed that the ADB loan would fund the initial civil works of the five core subprojects (WRID subcomponent 1), the purchase of vehicles, machinery, and the agriculture and livelihood support services. Part of the local duties and taxes identified under civil works contracts relate to constituent portions of the unit rates and to year end financial accounts submitted by individual contractors. Conventional ADB practise is for all duty and taxes to be financed by the Government. But in order to facilitate the disbursement of contract payments, it is recommended that the ADB loan disbursement covers the full value of the individual contract. All other local duties and taxes would be paid by the Government. The financing costs of the loan, namely interest during implementation, would be capitalised and financed as part of the ADB loan.

23 Extracts from Afghanistan: Country Strategy and Program (CSP) Update, August 2004. 24 RRP Post-conflict Multisector Program Loan (PMPL) May 2003, RRP Andkhoy-Qaisar Road Project, December 2004, RRP Power Transmission and Distribution Project, Mar 2005.

150 Western Basins Project Final TA Report – July 2005

In determining the allocation of the total project costs to be funded, it has been assumed that Technical Assistance, incorporating consultancy services, would be identified as a separate disbursement item and funded by the ADF grant allocation. The Government is expected to contribute to the cost for the provision of counterpart staff and, where practical, office accommodation.

Canadian International Development Agency (CIDA) has been identified as one of two, potential co-financiers for the project. In proposing a financing plan at this stage of project preparation, it is suggested that CIDA would fund the capacity building expenditure account, as a piggy-back TA, and the Abu Dhabi Fund would finance the additional investment allocation for civil works (component 2 WRID subcomponents 2 and 3). It is proposed that the co-financiers would fund, possibly on a declining basis, the recurrent costs of implementation through the project PIUs in Herat and Obe. It is understood that any agreement for co-financier funding would be on a grant basis.

It is proposed that the community would make a cash / in kind contribute to the investment costs of the civil works and the agricultural support services and in addition finance the management and annual operation and maintenance (MO&M) cost of the civil works through the equivalent of water service fee.

10.4.3 Financing Plan

It is proposed that ADB will provide an ADF loan of US$ 24.5 million equivalent, including US$ 15.8 million equivalent in local currency. The loan will finance 27 percent of the total project costs to be financed and includes the civil works for the core subprojects, vehicles, machinery, equipment and agriculture and livelihood support services. The ADB loan will be from the Asian Development Fund (ADF) Special Fund resources and subject to relevant loan terms. In addition. ADB will, provide an ADF grant of US$ 15.5 million equivalent. The ADF grant will finance the estimated cost of the consultancy services. The Government of Afghanistan (GOA) will contribute US$ 3.4 million equivalent in local currency by providing counterpart staff, office accommodation, and other related services and facilities.

A provisional agreement has been reached with CIDA to fund US$ 10.0 million equivalent on a piggy-back grant basis to fund the capacity building training and contribute towards project implementation. The Abu Dhabi fund will finance, on a grant basis, US$ 20.0 equivalent of the additional civil works and a further US$ 10.0 million equivalent, towards project implementation. The community contribution, in kind / cash, is estimated at US$ 7.1 million equivalent or 8 percent of project costs. This represents US$ 6.4 million equivalent towards the civil works investment costs, and a further US$ 0.7 million equivalent towards the incremental management, operation and maintenance (MO&M) of the civil works on the irrigation canals.

151 Western Basins Project Final TA Report – July 2005

Table 10-5: Financing Plan (US$ million) 25

Source Foreign Local Total Cost Exchange Currency (US$ m) (%)

10.5 Procurement Arrangements

All civil works contracts, goods including vehicles, machinery, specialist equipment, and services including capacity building, community support services and consulting services to be financed by ADB’s loan / grant proceeds and cofinancier grants, will be procured in accordance with ADB’s Guidelines for Procurement. All civil works contracts for rehabilitation and development works (component 1, subcomponent 1) core subprojects 1 to 5 and the additional investment allocations (component 2, subcomponents 1 and2) are to be divided into individual contracts each estimated to cost less than US$ 500,000 equivalent.

Preliminary discussions with agencies, in Herat, operating construction / rehabilitation contacts suggests that there are locally based civil engineering contractors capable of executing the proposed works. Comments from the agencies suggest that some form of management and construction skills training would be beneficial for appropriate personnel within these firms. It is therefore proposed that contracts should be packaged to fall below a ceiling of US$ 0.5 million equivalent and awarded on the basis of Local Competitive Bidding (LCB) among prequalified contractors as described in ADB’s Guidelines for Procurement.

Civil works maintenance of major structures will be the responsibility of MEW / DEW at the provincial level. Such low value maintenance contracts whose size, nature and location make them unsuitable for competitive bidding may be awarded on the basis of direct contracts. All other annual maintenance requirements of the irrigation canals will be the responsibility of the community, organised through the existing wakil / mirab system. The design of civil works structures, preparation of bills of quantity and tender documents including terms of reference and the scope of work, the awarding of contracts amongst prequalified contractors, and the supervision of works will be the responsibility of consultants contracted to the Project Implementation Unit (PIU).

To the extent possible, the PIU will procure similar items of goods and services in groups to optimise volume discounts. Vehicle, machinery and specialist equipment procurement contracts estimated to cost the equivalent of US$ 500,000 or more will be awarded on the basis of International Competitive Bidding (ICB). Contracts costing the equivalent of less than US$ 500,000 will be awarded on the basis if international / local shopping procedures

25 Further summary tables are contained in Attachment 10 as Annex 1: Project Cost Estimates, Financing Plan and Procurement Arrangements.

152 Western Basins Project Final TA Report – July 2005 acceptable to ADB. Small supply contracts costing the equivalent of less than US$ 100,000 will be procured through direct purchase procedures.

To procure goods and services with the loan proceeds, the Borrower will need to demonstrate that the local procurement procedures adopted are transparent and efficient, and confirm to ADB’s anticorruption policy. The PIU will certify that the goods and services, financed by the loan, are procured from ADB member countries.

The proposed contract packages are summarised in Table 10-6.

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Table 10-6: Proposed Contract Packages 26

Contract Packages Number of Total Mode of Contracts Value Procurement (No) (US$’000)

A. Civil Works Component 1: Groundwater Demonstrations 6 384.9 LCB Component 2 (subcomponent 1): Subproject 1: Jui Nau Canal System Rehabilitation 5 2,322.0 LCB Subproject 2: Obe Wash Wash Development 1 725.8 LCB Subproject 3: Sare Pul Systems Development 4 2,177.3 LCB Subproject 4: Pashdan Wash Wash Development 5 2,563.9 LCB Subproject 5: Yahia Abad Canal System Rehabilitation 1 508.4 LCB Subcomponent 1: Design Contracts Regional Contracts 1 328.9 CS Subcomponent 1: Compensation Provisional Allocation N/A 43.1 NBF Subtotal Component 1 (subcomponent 1) 8,669.4

Component 2 (subcomponent 2 & 3) Additional Allocation Systems Rehabilitation 50 25,625.0 LCB Component 4: Project Management Project Office (Herat) 1 1,253.6 ICB Project Office (Obe) 2 689.5 LCB Subtotal Civil Works 36,622.4 B. Goods 1. Vehicles & Machinery 3 4,201.9 ICB 2. Specialist Equipment 4 2,032.5 LCB

C. Services 1. Capacity Building 4 5,000.0 DC 2. Agriculture & Livelihood Services 4 2,102.0 DC 3. Additional Allocation (ALSS) 5 5,625.0 DC 4. Consulting Services 1 17,060.0 CS

D. Recurrent Expenditure 1. Civil Works O&M 5 667.4 NBF 2. Project Implementation 1 16,236.3 DC

Total 89,547.4

Source: Project Preparation Technical Assistance (PPTA) estimates, Jul 2005. DP = Direct Contract, CS = Consulting Services, ICB = International Competitive Bidding, LCB = Local Competitive Bidding, NBF = Non Bank Financed.

26 Further summary tables are contained in Attachment 10 Annex 1: Project Cost Estimates, Financing Plan and Procurement Arrangements.

154 Western Basins Project Final TA Report – July 2005

10.6 Technical Assistance

The total consulting Technical Assistance (TA) input is estimated at 738 person months, comprising 570 person months of international and 168 person months of domestic consultants. ADB will select and engage, in consultation with the project Executing Agency a suitably qualified firm of international consultants with domestic associates to provide consulting services following ADB’s Guidelines on the Use of Consultants and arrangements satisfactory to ADB for engaging domestic consultants. The selection method to be used has yet to be determined.

The consultants will work closely with the Project Implementation Unit (PIU) to be established in the provincial office of both the Ministry of Energy and Water (MEW) and the Ministry of Agriculture and Animal Husbandry (MAAHF) in Herat, and report on a regular basis to the proposed steering committee through the project director. The TA budget and cost allocations are summarised in Table 10-7

Table 10-7: Summary of Technical Assistance Budget (US$’000) 27

Foreign Local Total Exchange Currency

A. Asian Development Bank /1 Consultants Remuneration and Per Diem International 11,970 - 11,970 Domestic - 429 429 Other Direct Costs \2 733 316 1,049 Support Services \3 51 415 466 Subtotal (A) 12,753 1,160 13,914 Contingencies 1,451 135 1,386 Total (A) 14,204 1,296 15,500

B. Government Financing Subtotal (B) - 1,400 1,400 Contingencies - 140 140 Total (B) - 1,540 1,540

Total A + B 14,204 2,836 17,040

Source: Project Preparation Technical Assistance (PPTA), April 2005. \1 Provisionally identified as Asian Development Fund (grant financing) \2 Including: international travel, local travel and transport, communications, report production and mailing. \3 Including: equipment, training, office supplies and administrative support.

27 Detailed assumptions are given in Attachment 10 as Annex 4 Technical Assistance Budgets.

155 Western Basins Project Final TA Report – July 2005

Development Agency (CIDA). The salary costs of the project implementation staff and the project running costs will be funded on a grant basis jointly by CIDA ($5.0 million) and Abu Dhabi Fund ($10.0 million). The Government will provide counterpart staff were available and contribute to the provision of office accommodation / facilities where practical.

156 Western Basins Project Final TA Report – July 2005

11 FINANCIAL AND ECONOMIC ANALYSIS

11.1 Introduction

Financial and economic analyses were carried out to justify the financial viability of the Community Irrigators Institution (CII), the participating community households, and the economic viability of the individual core subprojects. The comparison of costs and benefits is made on the basis of quantifiable physical inputs and outputs. Incremental net benefits are measured, where possible, on the basis of changes that are expected to occur within targeted geographical areas; (a) in the absence of the proposed project interventions (the “without” project situation), and (b) as a consequence of implementing the proposed project interventions (the “with” project situation). For the financial analysis, the physical inputs and outputs are measured in prices established by local markets and in the economic analysis, valued in their border price equivalents.

For the financial analysis, it is important to demonstrate a mechanism to ensure the financial sustainability of the subprojects both to the CII and the individual stakeholder or participating household. Financial sustainability is dependent on; (a) sufficient financial incentives necessary to ensure participation in the project, (b) the availability of adequate support services and funds to finance investment in inputs, and (c) the recovery of the ongoing management, operation and maintenance (MO&M) costs of the proposed interventions. The financial viability for the CII is achieved when a breakeven status is reached such that the income from any proposed service fees is able to cover both the management salaries and the annual operation and maintenance costs of the canal systems. For the participating household, financial viability is demonstrated when the incremental household income, after any cost recovery for ongoing MO&M of the irrigation canal, shows a marginal increase to the value of any additional family labour employed by the household.

The principle objective of the economic analysis is to establish whether the proposed subproject interventions are viable for the economy of Afghanistan as a whole. Economic viability is achieved when the economic net present value (ENPV) of the investment costs and incremental benefit streams are positive when discounted, over the anticipated life of the project, at the opportunity cost of development capital taken to be 12 percent.

The proposed project has four components, namely; (a) integrated water resources management (IWRM), (b) water resources and irrigation development (WRID), (c) agriculture and livelihood support services (ALSS), and (d) project management and capacity building (PMCB). Component 2 WRID, subcomponent 1 comprises five core subprojects, subcomponent 2 additional subproject investment allocation in the Hari Rud and Murghab basins, and subproject 3 water resources development. The core subprojects are; (i) the rehabilitation of Jui Nau irrigation system, (ii) the development of Obe wash water resources, (iii) the development of Sare Pul irrigation systems, (iv) the development of Pashdan wash water resources, and (v) the rehabilitation of Yahia Abad irrigation system. Each of the core subprojects, totalling some 15,650 command area hectares, to be implemented over years 1 to 3, have been analysed separately and are intended as examples of potential subprojects, totalling a further 50,000 hectares28, to be implemented over project years 4 to 7.

The investment costs of component 1 IWRM have been excluded from the analysis on the grounds that many of the benefits will accrue to the basin development as a whole and not specifically to the core subprojects. The investment costs of civil works, management, operation and maintenance (MO&M) machinery, and ALSS have been identified by core subproject and the investment costs allocated appropriately. Other investment costs, including consultant and project staff vehicles, capacity building (training of ministry and project recruited staff), consultancy services and the recurrent costs of project management

28 Identified as 40,000 command hectares in the Hari Rud basin and a further 10,000 command hectares in the Murghab basin.

157 Western Basins Project Final TA Report – July 2005 have been allocated, to the subprojects, on a per hectare basis assuming a total of 65,650 hectares are rehabilitated / developed over the seven year implementation period of the project.

The impact of the core subprojects will be primarily on irrigated agricultural production, and to a lesser extent on livestock production and household incomes from non farm activities for the landless. The resulting incremental financial and economic benefits will result from engineering rehabilitation works to improved water availability through increasing summer water flows and distribution efficiency in tandem with an investment in ALSS. Subproject incremental benefits have been based on crop and household budgets reflecting both the prevailing condition in the respective subproject areas and the anticipated increased benefits to be achieved with the proposed interventions.

The current, ‘without’ project, early season cropping, particularly on the smaller holdings, is dominated by wheat production for home consumption. ‘With’ project adjustments to farm production will depend on individual households’ response to changes in the farming environment, namely the reliability of irrigation water supply, more efficient and effective use of water, more open markets with possibly higher returns, opportunities for diversification into higher value crops, and increased productivity in response to the rehabilitation works. Any expansion on the smaller farms will be limited to an increase in cropping intensity achieved with a move to a second crop (possibly vegetables near Herat) after wheat where water distribution will permit. On the medium sized farms, it is anticipated that, in addition, there will be a limited increase in the establishment of higher value perennial crops (alfalfa, orchards and vineyards). There will be a widening of ownership of dairy cattle, limited to the reproductive capacity of the herd, and a small increase in productivity per cow limited to the generic potential of the herd.

In quantifying the incremental benefits to ALSS, it is assumed that there will be an increase in unit area productivity achieved through better water management and increased use of improved seed and plant varieties, fertiliser and crop protection sprays, purchased through the proposed agricultural input credit facility. It is to be expected, that a wider awareness of growing techniques resulting from on farm demonstrations, will improve farm grading standards, resulting in a limited increase in farm gate prices. Improved on-farm storage, handling, and processing will lead to wider marketing opportunities and improved household nutrition. Additional microfinance supported livelihood services have been targeted on the landless households to improve household incomes.

11.2 Rehabilitation Works and Anticipated Benefits by Subproject

A brief description, by subproject, of the rehabilitation costs, MO&M costs and ALSS and the anticipated incremental benefits is given below. Physical and financial indicators for the five core subprojects are summarised in Table 11-1.

158 Western Basins Project Final TA Report – July 2005

Table 11-1: Summary of Key Physical and Financial Indicators for the Five Subprojects 29

Indicators Subprojects Physical / Financial Jui Nau Obe Sare Pul Pashdan Yahia System Wash Systems Wash Abad

Subproject Areas(ha): Command Area 7,500 1,000 2,000 4,000 1,150 Irrigable Area 5,400 800 1,600 3,000 900

Investment Costs \1 Civil Works Total Costs (US$ ‘000) 1,815.0 571.0 1,676.0 1,988.1 397.5 Unit Costs (US$ ha) \2 336 714 1,048 663 442 Machinery Total Costs (US$ ‘000) 138.6 19.6 40.8 75.6 23.1 Unit Costs (US$ ha) \2 26 25 26 25 26

Management, Operation & Maintenance MO&M) Present Total Costs (US$ ‘000) 78.0 4.0 16.0 45.0 12.6 Unit Costs (US$ ha) \2 14 5 10 15 14 Proposed (US$ ‘000) \3 Management 41.2 2.2 13.6 28.4 7.9 Maintenance 74.6 10.2 21.2 38.9 17.0 Depreciation 15.2 2.2 4.5 3.9 2.5 Subtotal 131.0 14.6 39.3 71.2 27.4 Unit Costs (US$ ha) \2 24 18 25 24 30

Agriculture Livelihood Support Services \4 Total Costs (US$ ‘000) 770.1 115.4 297.1 224.5 352.5 Unit Costs (US$ ha) \2 143 144 186 75 392

Source: Project Preparation Technical Assistance (PPTA) estimates, July 2005. \1 Base Costs excluding contingencies, July 2005. \2 Irrigable hectares. \3 Financial stability (project year 6). \4 Totals project years 1 to 6.

11.2.1 Subproject 1: Rehabilitation of Jui Nau Irrigation System

The Jui Nau is typical of the larger irrigation systems in the Lower Hari Rud both in terms of water supply and rehabilitation issues. The principle objectives of the rehabilitation are: (a) improved water availability, (b) better efficiency of distribution, and (c) increased productivity and returns from water. Specifically the civil works will include the construction and/or rehabilitation of: (a) intake galleries, (b) control gates, (c) flood protection, (d) a siphon, (e) the main canal, (f) branch canals, (g) an aquaduct, (h) flood control measures, (i) bifurcation structures, and (j) road and foot bridges. Subproject investment costs are estimated at US$ 1.8 million or US$ 336 per irrigable hectare and compares with an average for the 5 subprojects of US$ 550 per irrigable hectare. Indicative figures for the three sections of the canal system are US$ 579,124 and 357 per irrigable hectare for the head, middle and tail canal sections respectively.

The current annual management and maintenance costs, paid in wheat and labour respectively, are estimated at the equivalent of US$ 4 and 11 per irrigable hectare respectively or the equivalent of US$ 78,000 for the subproject. Proposed increases in management and maintenance costs, including a depreciation charge on machinery, result in

29 Detailed tables are contained in Attachment 10 as Annex 5: Financial Analysis – Working Schedules, Tables A10.5.1 to 5.

159 Western Basins Project Final TA Report – July 2005 a total subproject cost of US$ 131,100 equivalent to US$ 8 and 18 per irrigable hectare respectively.

The Jui Nau irrigation system encompasses a total (command) area of approximately 7,500 hectares. The present irrigable area based on canal capacity is estimated to be of the order of 5,400 hectares. It is expected that some 800 hectares of this land will be lost to the continuing expansion of Herat city during the life of the project.

There are about 7,000 households within the command area. Land ownership is heavily skewed, with about 15 percent of the households classified into a medium wealth group farming 40 percent of the area on holdings averaging 2 hectares. A further 40 percent of the land is farmed by a poor / very poor wealth group on holdings averaging 1 hectare. Landlords let out the remaining 20 percent for sharecropping to poor / very poor and landless wealth group households. Landless families number over 3,000.30

The present cropping pattern is dominated (nearly 70 percent) by winter and spring wheat of which at least 70 percent is irrigated. Wheat is the staple food crop and is required by the poor / very poor and landless households for home consumption. Only the medium wealth group has a demonstrable wheat surplus. Of the remainder of the cropped area, feed and fodder occupy 10 percent, orchards and vineyards, (mainly a feature of the medium wealth group) 10 percent and vegetables, cotton, and maize, the remainder. One or two head of cattle are generally owned by the medium wealth group households and small herds of sheep and goats (averaging 20 head per household) are owned by some households.

Small holding size, insecure land tenure, food security at household level, low income and weak asset base all impose real constraints to crop diversification. With rehabilitation investment (but excluding investment in agricultural support services) only a small change in the cropping pattern / cropping intensity can be expected with a limited move to more profitable perennial crops. But improved and extended water distribution throughout the growing season, will allow a limited increase in the area of double cropping of vegetables for the adjacent Herat city market.

With ALSS there are expected to be improvements in on-farm water distribution through field demonstration, additional and reasonably priced crop inputs to households and improvement in the quality and management of orchards, vineyards and the dairy herd, and in the handling, storage and processing of horticultural and dairy products. The landless community will gain no direct benefits from the rehabilitation investment. ALSS microfinance initiatives, to improve household livelihoods, have therefore been designed for alternative livelihood opportunities in bee-keeping, sericulture, improved poultry production and shared ownership of dairy cattle (animal banks).

11.2.2 Subproject 2: Development of Obe Wash Water Resources

The Obe Wash currently has a relatively unreliable source of irrigation water due to the extraction problems associated with the continually changing channels within the wash. In addition, the nature of the peak flows creates a number of flooding and erosion problems for downstream communities. The principle objective of the rehabilitation is to support more intensive irrigation from the two existing irrigation systems on the right bank and to ameliorate flood damage. Specifically the rehabilitation works will include the construction and/or rehabilitation of: (a) intake galleries, (b) the main canal, (c) a control gate and spillway, (d) Jui Merza and Moghol canals, (e) bifurcation structures, (f) the branch canal, (g) branch canal structures, and (h) road and foot bridges. Subproject investment costs are estimated at US$ 0.6 million or US$ 714 per irrigable hectare and compares with an average for the 5 subprojects of US$ 550 per irrigable hectare.

30 Classification follows National Risk and Vulnerability Assessment (NRVA), 2003.

160 Western Basins Project Final TA Report – July 2005

The current annual management and maintenance costs, paid in wheat and labour respectively, are low and estimated at the equivalent of US$ 5 per irrigable hectare or the equivalent of US$ 4,000 for the subproject. Proposed increases in management and maintenance costs, including a depreciation charge on machinery, result in a total subproject cost of US$ 14,500 equivalent to US$ 4 and 15 per irrigable hectare for management and maintenance respectively.

The combined command area of the two canals is approximately 1,000 hectares, with an irrigable area of some 800 hectares. The current cropped area of the Obe Wash accounts for only 200 hectares of wheat in an average year increasing to 350 hectares in a year with better catchment flows. Preliminary investigations suggest that most of the households are within the poor / very poor wealth group.

The benefits resulting from the civil works are dependent on the availability of water but it is assumed that the cropped area will increase to 475 hectares or 60 percent of the irrigable area. Additional benefits, attributed to the flood protection civil works, include both the reduction of crop losses and flood damage to houses and infrastructure in the downstream communities. Microfinance initiatives, to improve household livelihoods of the landless, have been included.

11.2.3 Subproject 3: Development of Sare Pul Irrigation Systems

The flows in the Sare Pul / Obe reach of the Hari Rud are relatively reliable in the mid summer period but there are a number of constraints to the ability of the irrigation systems to harvest and efficiently distribute this water to support second cropping. The purpose therefore of the rehabilitation is to improve the performance of a group of 5 irrigation systems on the right bank. Specifically the civil works will include the construction and/or rehabilitation of: (a) flood protection (on both river and wash), (b) control gates, (c) spillways, (d) main canal, (e) bifurcation structures, (f) branch canal, (g) siphon, (h) aquaduct, (i) bridges, and (j) the Sare Pul suspension bridge. Subproject investment costs are estimated at US$ 1.7 million or US$ 1,006 per irrigable hectare and compares with an average for the 5 subprojects of US$ 550 per irrigable hectare.

The current annual management and maintenance costs, paid in wheat and labour respectively, are estimated at the equivalent of US$ 4 and US$ 6 per irrigable hectare respectively or the equivalent of US$ 16,000 for the subproject. Proposed increases in management and maintenance costs, including a depreciation charge on machinery, result in a total subproject cost of US$ 39,300 equivalent to US$ 8 and 16 per irrigable hectare respectively.

The command area is estimated at 2,000 hectares and the present cultivated area to be 1,600 hectares of which some 1,280 hectares are presently irrigated. It is estimated that there are 2,550 households in the subproject area. The social survey indicates that about 15 percent of the households are in the medium wealth group, 50 percent in the poor wealth group and the remaining 35 percent are landless, of these some 20 percent are share cropping wheat, barley, and rice.

The Sare Pul area is unique in the Hari Rud with greater river flows persisting into the summer and a broad cultivable floodplain. This allows for the inclusion of a profitable rice crop in the present cropping pattern. Wheat, however, remains the staple food crop, but rotational restrictions on cereal crops result in a higher than expected area of fallow land. The area has little comparative advantage in vegetable production being far from the main markets, though this may change with the surfacing of the Herat-Chisti Sherif road. It is noted that the use of crop inputs of improved seed, fertiliser and crop protection are low as these

161 Western Basins Project Final TA Report – July 2005 inputs are scare and expensive. The area currently makes a significant contribution to fodder and feed grain production for local herds and kuchi pastoralists that winter in the locality.

Field observations, as part of the PPTA, indicate that the irrigation systems are well operated and the general level of farming is satisfactory. Given the rotation restrictions of cereal crops, only limited adjustments to the cropping pattern and cropping intensity can be expected as a result of the investment in irrigation structures. However, it is expected that there will be significant benefits to crop production from the availability of crop inputs as a result of the ALSS field demonstration programme in combination with an agricultural input credit facility.

11.2.4 Subproject 4: Development of Pashdan Wash Water Resources

The Pashdan wash, located approximately 20 kilometres to the east of Herat city, is a colluvial wash formed by the discharge from the Karukh River. Its extent and proximity to Herat city and adjacent areas of irrigated agriculture, creates a number of flood protection problems and water resource development opportunities. The concept for the development of the subproject is the construction of a number of structures to: (a) improve the intake of existing canals for irrigation systems on both the left and right banks, and (b) divert and control flows into the right branch of the Pashdan wash. Specifically the civil works will include the construction and/or rehabilitation on both the right and left banks of: (a) intake galleries, (b) intake structures, (c) siphons, (d) flood protection, and (e) the main canals. Subproject investment costs are estimated at US$ 2.0 million or US$ 621 per irrigable hectare and compares with an average for the 5 subprojects of US$ 550 per irrigable hectare.

The current annual management and maintenance costs, paid in wheat and labour respectively, are estimated at the equivalent of US$ 4 and US$ 11 per irrigable hectare respectively or the equivalent of US$ 45,000 for the subproject. Proposed increases in management and maintenance costs, including a depreciation charge on machinery, result in a total subproject cost of US$ 71,200 equivalent to US$ 10 and 14 per irrigable hectare respectively.

The command area is assumed to be 4,000 hectares, of which 3,000 is irrigable, distributed equally between the left and right banks. Cultivation intensity is related to the volume of irrigation water available in any one season, supplemented by rainfall and karezes, and is estimated to vary between 1,200 and 1,700 hectares. Households divide cultivable village land into blocks and practise a three year rotation of wheat and pulses. Preliminary investigations suggest that most of the households are within the poor / very poor wealth group.

Benefits from the civil works will result from improved probabilities of irrigation deliveries thereby increasing the annual cropped area and the reduction in flood and erosion damage from rainfall events in the river catchment area. Because of the small holding size, there is little opportunity for crop diversification into higher value perennial crops. The benefits from ALSS are therefore limited to yield increases for stable crops resulting from the input credit facility.

11.2.5 Subproject 5: Rehabilitation of Yahia Abad Irrigation System

The Yahia Abad irrigation system intakes water from the Kawgan River (a major tributary of the Hari Rud) and was selected as representative of an ‘intermediate’ system in terms of reliability of water supply. This is in comparison with intakes directly from the Hari Rud having a relatively ‘high’ reliability (Jui Nau system subproject 1 and Sare Pul systems subproject 3) and intakes from washes as having a relatively ‘low’ reliability (Obe Wash subproject 2 and Pashdan Wash subproject 4).

162 Western Basins Project Final TA Report – July 2005

The proposed intervention aims to improve water availability and distribution efficiency by the rehabilitation of selected sections of the main canal and associated structures. Specifically the civil works will include the construction and/or rehabilitation of: (a) intake and canal protection, (b) a control gate and spillway, (c) an aquaduct, (d) a siphon, (e) bifurcation structures, (f) minor outlets, (g) spillways, (h) the main canal, (i) branch canals, (j) branch canal structures (k) bridges, and (l) wash protection. Subproject investment costs are estimated at US$ 0.4 million or US$ 440 per irrigable hectare and compares with an average for the 5 subprojects of US$ 550 per irrigable hectare.

The current annual management and maintenance costs, paid in wheat and labour respectively, are estimated at the equivalent of US$ 4 and US$ 10 per irrigable hectare respectively or the equivalent of US$ 12,600 for the subproject. Proposed increases in management and maintenance costs, including a depreciation charge on machinery, result in a total subproject cost of US$ 27,400 equivalent to US$ 10 and 20 per irrigable hectare respectively.

The command area of the system incorporates some 1,150 hectares of intensively irrigated land within the first 27 kilometres of the main canal and a further 900 hectares of intermittently irrigated land from the remaining 8 kilometres of the main canal. It was noted from the field inventory that many of the irrigation structures are in need of rehabilitation. Basic land use and population statistics for the subproject area are lacking, but it is estimated that there are 1,650 household in the area. It is possible that within this area, 15 percent of the households are in the medium wealth group, 50 percent in the poor wealth group and the remaining 35 percent are landless, of these it is assumed that some 20 percent are share cropping wheat, and barley with very limited areas of rice. Like Sare Pul, the use of crop inputs of improved seed, fertiliser and crop protection is low as these inputs are scare and expensive.

The rehabilitation of the irrigation system will result in an increase in the cropped area of the staple cereal crop of wheat particularly in the currently intermittently irrigated areas. There is little scope for any adjustment to the cropping pattern and/or cropping intensity from high value perennial crops or second season vegetable crops as reliable irrigation water supplies will be limited to the period of wheat production. Significant improved production can be expected from ALSS as a result of field demonstrations promoting the increased usage of crop inputs facilitated by the supply of input credit.

11.3 Financial Analysis

11.3.1 Introduction

A financial analysis has been conducted for each of the five core subprojects and consists of the follow stages: • The estimation of investment costs of civil works and machinery and the identification of the community contributions; • The estimation of the annual recurrent MO&M costs for the individual subprojects to sustain the proposed investment; • The identification of the capacity building and administrative requirements of the CII together with the ongoing MO&M costs, to give an indication of the service fees to be passed onto the irrigation community, • A breakeven financial analysis of representative subproject CIIs involving the preparation of an annual income and expenditure schedule, a source and application of funds statement and a year end balance sheet, and • An assessment of the proposed CII service fees in relation to the projected incremental household budgets of the different wealth groups, to determine the financial viability of participation in the proposed interventions.

163 Western Basins Project Final TA Report – July 2005

11.3.2 Investment Costs

The investment recurrent costs, for the financial analysis, are based on constant mid 2005 base costs inclusive of physical contingencies, determined at the time of the Project Preparation Technical Assistance (PPTA). It is proposed that the community directly benefiting from the canal rehabilitation, namely the adjacent landowners, should make a 10 percent financial contribution to the investment costs in the form of labour in kind or as a cash payment. The in kind / cash contribution would be apportioned using the existing water allocation system (juftgau system) and be administrated by the elected mirabs responsible for the relevant jufgau allocation. No precedence has yet been set, in Afghanistan, for cost recovery of any portion of the rehabilitation investment cost made by the Government.31

11.3.3 Recurrent Costs

The estimated annual recurrent MO&M costs of the core subprojects have been divided into the cost of the de-silting operations and the labour and materials required for infrastructure maintenance and repair. It is proposed that the maintenance of the main canal and minor structures will be carried out by the local community under the current systems used by the CIIs. The maintenance of the major structures will to be carried out by local contractors, supervised by the Department of Energy and Water (DEW) based in Herat but paid for by the CII. The level of household contribution to meet the financial requirement of both types of MO&M, has been calculated for each subproject and related to the household budgets to assess the ability of the irrigation community to meet this ongoing MO&M contribution.

11.3.4 Mirab Water User Associations

Under the present system, the mirab is elected annually by the irrigation community and paid with an annul management fee, at the end of the irrigation season, by individual landowners in relation to their juftgauage water allocation. The fee payment is traditionally paid in wheat by the owners of irrigated land, both active and absentee landlords. It is generally accepted that the payment is insufficient to support the mirab’s family for the year. Labour for the maintenance of the canal, including the annual canal de-silting in February / March prior to the irrigation season, is organised by the block mirab, and is contributed by the community on the basis of the allocated jaftgauage. The labour contribution is generally made in kind, and is made by the active land owners and share croppers as representative of the absentee landowner.

It is proposed that the existing community operated CIIs system should be retained, but strengthened, to administer both the community contribution to the investment costs of the rehabilitation works and continue to organise the labour and purchase materials to carry out the ongoing annual O&M. The CII will also be responsible for the letting of any major structure maintenance contracts in conjunction with DEW (Herat). The project will provide capacity building to CII in the form of basic training in management, administration and book keeping and provide a package of basic machinery / equipment to assist with the annual maintenance works.

Further, it is proposed that the current two tier contribution system should be extended to meet the financing requirements of the upgraded CIIs. The indicative service fee has been calculated for each core subproject and related to individual household budgets. This is to demonstrate the ability of the individual households to contribution to the financing of the ongoing MO&M and by implication ensure the sustainability of the incremental household income to be derived from the proposed subproject investment.

31 Detailed investment and recurrent cost estimates and machinery requirement are contained in Attachment 10 as Annex 5, Table A10.5.1 to 5.

164 Western Basins Project Final TA Report – July 2005

The present management service fee covers the payment for the mirab in his capacity to organise the irrigation community. This payment is generally made in wheat and equates to an average fee equivalent of US$ 4 per irrigable hectare or US$ 800 per year. It is proposed that this management service fee should be increased to cover book keeping assistance and the cost of operating and renting a small office.

Labour for operation and maintenance, primarily the annual de-silting of the main and branch canals, is made in kind and the equivalent cost is estimated to vary between US$ 5 (Obe Wash) to US$ 11 (Jui Nau) per irrigable hectare within the 5 core subprojects. It is proposed that the maintenance service charge should be increased to cover the cost of operating and repairing the allocated equipment and to include a depreciation charge to create a sinking fund to allow for the replacement of machinery. Under the proposed system, it is recommended that there should be a move to cash payment for MO&M in order to more effectively maintain and operate machinery, to purchase the required materials for canal maintenance and make cash payments to contractors for major structure maintenance contracts.

The indicative financial models of the CIIs for the five core subprojects has been derived on the proposed fee structure and include an income and expenditure schedule, a source and application of funds and a year end balance sheet. Results of the financial analysis indicate that in order to achieve a financial breakeven situation to cover both the management salaries and support staff of the CII and effectively carry out O&M of the irrigation canals, a substantial increase in service charges will be required. Subproject indicative service fees and CII key financial indicators are summarised in Table 11-2.32

32 Detailed tables are contained in Attachment 10 as Annex 5, Table A10.5.6 to 21.

165 Western Basins Project Final TA Report – July 2005

Table 11-2: Subproject Indicative Service Fees and CII Key Financial Indicators

Indicators Subprojects Jui Nau Obe Sare Pul Pashdan Yahia System Wash Systems Wash Abad

Indicative Service Fee (US$/ha): \1 Existing Management (wheat) 4.0 0.0 4.0 4.0 4.0 Maintenance (labour) 11.0 5.0 6.0 11.0 10.0 Total 15.0 5.0 10.0 15.0 14.0

Proposed: Management (cash/wheat) 8.0 4.0 8.0 10.0 10.0 Maintenance (cash/labour) 18.0 15.0 18.0 14.0 20.0 Total 26.0 19.0 26.0 24.0 30.0

Increase 11.0 14.0 16.0 9.0 16.0

Key Financial Indicators (US$’000) Income & Expenditure \2 Income 135.2 15.2 41.6 72.0 28.0 Expenditure Management 41.2 2.2 13.6 28.4 7.9 Maintenance 74.6 10.2 21.2 38.9 17.0 Depreciation 15.2 2.2 4.5 3.9 2.5 Subtotal 131.0 14.6 39.3 71.2 27.4 Net Breakeven Income 4.2 0.6 2.3 0.8 0.6

Year End Balance Sheet \2 Fixed Assets (book value) Rehabilitation Works 2,180.2 685.4 2,011.2 2,385.8 397.5 Machinery 91.5 12.9 44.9 23.3 15.2 Total Fixed Assets 2,271.7 698.3 2,056.1 2,409.1 412.7 Current Assets 68.8 10.1 30.0 16.6 11.0 Total Assets 2,340.5 708.4 2,086.1 2,425.7 423.7

Equity Contributions Community 218.0 68.5 201.1 238.6 39.7 Government 2,114.6 638.4 1,885.0 2,186.0 383.1 Net Income (cumulated) 7.9 1.5 0.0 1.1 0.9 Total Equity Contributions 2,340.5 708.4 2,086.1 2,425.7 423.7

Source: Project Preparation Technical Assistance (PPTA) estimates, July 2005. MWUA = Mirab Water User Association. \1 Service fees allocated per net farm area irrigable (hectares). \2 Financial stability (project year 6).

11.3.5 Participating Household Budgets

Household budgets, in constant 2005 financial prices, for the five subprojects have been prepared for the wealth groups located within the subproject areas. The budgets reflect the present without project situation and anticipated with project situation by Year 10. Details, for the poor wealth group, being common to all subprojects, are summarised in Table 11-3.33

33 Detailed tables are contained in Attachment 10 as Annex 5, Table A10.5.22 to 27.

166 Western Basins Project Final TA Report – July 2005

Table 11-3: Household Budgets (Poor Wealth Group) by Subproject

Indicators Subprojects (US$/Household) Jui Nau Obe Sare Pul Pashdan Yahia System Wash Systems Wash Abad

Household Farm Area Irrigable Area (ha) 0.80 1.67 0.75 2.78 0.80

Without Project: Net Irrigated Area (ha) 0.47 0.42 0.20 0.70 0.54 Net Household Cash Flow 254.4 54.2 94.4 145.1 142.5 Return per Person Day 3.4 N/A 1.1 N/A 1.1 Water Service Fee 12.0 8.4 6.8 41.7 11.2

With Project: Net Irrigated Area (ha) 0.71 0.84 0.40 1.39 0.75 Net Household Cash Flow 975.3 475.6 581.7 497.6 683.7 Return per Person Day 8.5 N/A 5.7 N/A 5.5 Water Service Fee 22.4 31.7 18.0 66.7 24.0

With Project Increments Incremental HH Cash Flow 720.9 421.4 487.3 352.5 541.2 % Increase 283% 777% 516% 243% 380%

Return per Person Day 5.1 N/A 4.6 N/A 4.4 Water Service Fee: Increased Fee 10.4 23.3 11.2 25.0 12.8 As % of Incremental 1% 5% 2% 7% 2% Household Cash Flow

Source: Project Preparation Technical Assistance (PPTA) estimates, July 2005. \1 Service fees allocated per net irrigable area (hectare).

The financial analysis of household budget, for the poor wealth group, project a general increase in the household irrigated area as a result of the investment in the rehabilitation of the irrigation systems and agricultural support services. The incremental net household cash flow and returns per person day of household labour (where analysed), derived from increased agricultural production and to a lesser extent livestock and non farm livelihood activities for the landless, are substantial. For subproject 1 Jui Nau, average household income at maturity is projected to increase from the current level of US$ 254 to US$ 721 representing nearly a three fold increase. Similar levels of increase are projected for the other subprojects.

It must be recognised that the proposed increases on CII service fees, to cover the proposed management and annual operation and maintenance costs, are substantial. The proposals are for a near doubling of the current estimated cost equivalent service charges to be phased in over a four / five year period with a move to more cash payments. For the Jua Nau canal the present average annual service fee is estimated at US$ 12.0 per household (US$ 15.0 per irrigable hectare of which the equivalent of US$ 4.0 is paid in wheat for the mirab management and the equivalent of US$ 11.0 is paid in labour for canal maintenance). To cover the proposed increases in management costs and to cover the regular operation and maintenance of the existing and rehabilitated structures, the service fee will need to be increased to approximately US$ 22.4 per household (US$ 26 approximately per irrigable hectare of which US$8.0 represents management fees and US$ 18.0 represents labour, machinery, and material requirements for annual O&M).

167 Western Basins Project Final TA Report – July 2005

While this increase appears substantial it represents a very small percentage of the projected increase in household income. For the poor wealth group model on the Jui Nau, this increase of US$ 10.4 represents only one percent of the projected increase in income of US$ 720 per household model. Proposed increases range from 1 to a maximum of 10 percent of the projected incremental household incomes of the model prepared for the 5 core subproject areas. It is concluded that this is not an unreasonable increase to be borne by the community especially as no charge is made for the investment costs other than the 10 percent in-kind labour contribution to the of rehabilitation costs.

While the increase may appear reasonable in relation to the projected incremental household income, it does not confirm a willingness to pay by the community. It is therefore recommended during the proposed public consultation process, the community is made aware of their obligation, contribute to the rehabilitation costs and to the on-going annual maintenance of the canal system. In this process it may be difficult to convince the potential household incremental benefits but there is sufficient field evidence that farmers are fully aware of the marginal value of water, particularly in the latter part of the season and have demonstrated a willingness to pay (generally in-kind) for this resource.

11.4 Economic Analysis

11.4.1 Major Assumptions

The economic analysis is calculated using constant mid 2005 prices. The project life is assumed to be 20 years (base case) with sensitivity analysis for both 15 and 25 years. No residual value has been attributed to the rehabilitation works at the end of the analysis period.

The local and foreign components of the financial costs were estimated and converted to economic costs by using a standard conversion factor of 0.9 on the local portion of the cost to eliminate local duties and taxes. Previous ADB reports confirm that Afghanistan remains a relatively low tax base country. The economic costs, produced by Costab, are inclusive of physical contingencies but exclusive of price contingencies. Unit rates for the construction of irrigation canal structures include elements for equipment, fuel, materials, supervision, and unskilled labour. Provisional estimates suggest that the percentage of unskilled labour varies between 20 to 25 percent (intake galleries, control gates) to 80 percent (branch canal rehabilitation). In view in the significant levels of seasonal under employment in the rural areas, a conversion factor of 0.8 has been used in calculating the economic costs of civil works investment costs and annual management, operation and maintenance expenditure. No residual value has been attributed to rehabilitation investment at the end of the analysis period.34

Economic prices for traded goods were derived from World Bank and other commodity price projections. Prices were converted to 2005 constant prices using the manufacturing unit value (MUV) index and adjusted for insurance, freight, and handling to derive border prices. Prices for wheat, barley, maize, rice, vegetables and dairy products and fertiliser were derived on an import parity basis and prices for dried fruit, nuts and fruit were derived on an export parity basis.

Representative household models, for both the ‘without’ and ‘with’ project situations, have been prepared, using Farmod, for representative wealth groups within each of the subproject areas. Individual models have been multiplied up on the basis of wealth group distributions and average farm size to derive an estimate of the prevailing and projected output levels for the individual subproject. The output levels are valued at economic prices and exclusive of the value of home consumption. The cost of both family and hired labour has been valued at

34 Details are given in Attachment A10, Annex 6, Tables A10.A6.15.

168 Western Basins Project Final TA Report – July 2005 a shadow wage rate factor (SWRF) of 0.6, in view of the significant levels of under employment in the rural areas.35

11.4.2 Economic Internal Rates of Return and Economic Net Present Values

The economic internal rates of return (EIRR) and economic net present values (ENPV), for the five core subprojects and for a combination of all five subprojects, are summarised in Table 11-4.36 Table 11-4: Subproject Economic Internal Rates of Return and Economic Net Present Values

Core Subprojects EIRR ENPV (Percent) (Afg million) Project Management Project Management Excluded Included Excluded Included

Core Subprojects 1 to 5 Jui Nau Irrigation System: Head (Upper) 27% 18% 125.3 72.6 Middle Tail 35% 18% 99.1 48.4 Tail (Lower) 16% 6% 10.6 ( 26.6) Combined 27% 16% 235.0 94.4

Obe Wash Water Resources 17% 8% 10.0 ( 10.8)

Sare Pul Irrigation Systems 22% 16% 89.7 48.0

Pashdan Wash Water Resources 18% 6% 29.4 ( 48.6)

Yahia Abad Irrigation System 29% 20% 63.7 40.3

Core Subprojects 1 to 5 Combined 24% 14% 427.9 123.3

Source: Project Preparation Technical Assistance (PPTA) estimates, July 2005.

11.4.3 Interpretation of the Results

The economic analysis identifies the benefits to three levels of investment, namely: (i) the investment in rehabilitation works measured against the agricultural benefits associated with changes in cropping patterns and cropping intensities, (ii) the investment in agriculture and livelihood support services (ALSS) as measure by increases in agricultural productivity per unit area and to the livelihood programme by increases in the household incomes of the landless, and (iii) the investment in project management and capacity building when allocated on a per hectare (irrigable) basis to the individual subprojects.

Direct investment costs to the five core subprojects and the additional allocations for the Hari Rud and Murghad basins (subcomponent 2.2) and for further water resources development (subcomponent 2.3), are inclusive of civil works, MO&M machinery and ALSS. The total economic investment value is estimated at US$ 27.0 million equivalent in economic terms. Based on a proposed estimated irrigable area of 55,200 hectares, this represents an average per hectare investment of US$ 648.9 (economic value).37

The investment and recurrent expenditure of component 1 IWRM has been excluded from the economic analysis as the benefits will accrue to the basin development as a whole and

35 Details are given in Attachment A10.Aneex 6, Tables A10.A6.16. 36 Details are given in Attachment A10, Annex A6, Tables A6.1 to 14. 37 Details are given in Attachment A10, Annex 6, Tables A6.11 to 16.

169 Western Basins Project Final TA Report – July 2005 not specifically to the core subprojects. Project management costs are therefore, inclusive of the civil works costs of construction of project offices in Herat and Obe, vehicles to support consultant and project staff activities, relevant equipment investment costs, capacity building (adjusted for component 1 training), and project implementation recurrent costs. The total economic investment value, over the seven year implementation period, is estimated at US$ 41.9 million equivalent in economic terms. Based on the same irrigable area of 55,200 hectares, this investment represents an average per hectare of US$ 759 (economic value).38 By implication, this suggests that the economic cost of developing the local capacity of project staff to implement a project of such a scale is marginally greater than the direct investment costs of the civil works, MO&M equipment and ALSS, when measured on a unit area basis.

A brief discussion of the results of the economic analysis, by core subprojects, is given below.

11.4.3.1 Subproject 1: Rehabilitation of Jui Nau Irrigation System

The overall subproject EIRR of the investment in rehabilitation works is estimated at 29 percent. Variation between the head (EIRR of 25 percent), middle (EIRR of 57 percent), and the tail (EIRR of 10 percent) reflects both the allocation of rehabilitation investment between the three sections and the agricultural and livelihood potential of the sections. Of the total rehabilitation investment, 60 percent is allocated to the head section, 12 percent to the middle section, and 28 percent to the tail and as such impacts significantly on the EIRRs of each section. Some structures namely the intake galleries and flood protection works, while being physically located in a particular section, will have benefits throughout the system and so any interpretation of the results from individual sections should be treated with caution.

From an agricultural perspective, the middle section is currently water ‘poor’, and, as a result, has considerable scope for adjustment of the cropping pattern to higher value perennial crops, and increasing the cropping intensity with summer season vegetable crops, particularly amongst the medium wealth group. By contrast, the tail section is water ‘scarce’ with relatively little potential for change in the cropping pattern and increases in the cropping intensity, due to the small size of holdings, the high percentage of share croppers and their dependence on the staple wheat crop. However considerable benefits are expected from the microfinance intervention amongst the landless that predominate in the tail section.

Overall the subproject EIRR, before project management cost allocation, is 27 percent, of which ALSS contributes 22 percent of the ENPV and the balance 78 percent, is attributed to irrigation rehabilitation. When, the economic cost of project management is allocated on a per hectare (irrigable) basis, the EIRR of the subproject is reduced to 16 percent, or by section, head 18 percent, middle 18 percent, and tail 6 percent. Overall, this subproject meets the criteria of the opportunity cost of development capital of 12 percent. It would appear inappropriate to exclude the rehabilitation of the tail section as the proposed remedial works affect the integrity of the system as a whole and therefore each section should not be judged in isolation.

11.4.3.2 Subproject 2: Development of Obe Wash Water Resources

The subproject EIRR for investment in rehabilitation works is estimated at 18 percent and reflects the limited potential for change to the cropping pattern but significant benefits from flood protection resulting in the prevention of loss to downstream vineyards areas and private property. The returns from ALSS are marginal due to the small size of holdings with their dependence on the staple wheat crop and insufficient water and markets to justify a second summer crop. It is for this reason that the investment in ALSS has been restricted.

38 Details are given in Attachment A10, Annex 6, Table A6.17.

170 Western Basins Project Final TA Report – July 2005

The combination of irrigation rehabilitation and ALSS gives an acceptable EIRR of 17 percent although irrigation rehabilitation accounts for 100 percent of the ENPV. When the costs of project management cost are included the EIRR falls to 8 percent. This is below ADB’s accepted criteria of 12 percent for development capital. Caution is needed in interpreting the result of this subproject as there is a recognised shortage of reliable data to prepare accurate flood return period damage curves to assess the benefits to flood protection. Furthermore it is argued that, while the overall the economic viability of the five core subprojects should achieve the prescribed EIRR, individual subprojects that do not meet the criteria, are important to the general water resource development of the river basins.

11.4.3.3 Subproject 3: Development of Sare Pul Irrigation Systems

The overall EIRR of the subproject for investment in rehabilitation works is estimated at a marginal 12 percent. This in part reflects the relatively high unit cost per hectare (irrigable) of the engineering works and the inclusion of a suspension bridge with no direct quantified benefits incorporated into the assessment of the incremental benefits.

Agriculturally, the schemes are efficiently operated, but there is only a restricted market for the introduction of higher value perennial crops (improved cropping pattern) or summer season vegetable crops (increased cropping intensity) the household preferring to remain with the profitable rice crop as a second crop. Thus the incremental benefits to irrigation rehabilitation remain restricted. There are, however, substantial benefits to gained from the use of competitively priced agricultural inputs through the proposed credit programme which is reflected in an EIRR of 55 percent from the ALSS intervention.

Overall the subproject EIRR, before project management cost allocation, is 22 percent, of which ALSS contributes the major portion to the ENPV. When, the economic cost of project management is allocated on a per hectare (irrigable) basis, the EIRR of the subproject is reduced to 16 percent. Overall, this subproject meets the criteria of the opportunity cost of development capital of 12 percent.

11.4.3.4 Subproject 4: Development of Pashdan Wash Water Resources

The subproject EIRR for investment in rehabilitation works is estimated at 18 percent and reflects, like Obe Wash (subproject 2) the limited potential for changes to the cropping pattern but significant benefits from flood protection. The returns from ALSS are low due to marginal land suitability, the dependence on the wheat crop, insufficient water and markets to justify a second summer crop.

The combination of irrigation rehabilitation and ALSS gives an acceptable EIRR of 18 percent, although, like Obe, irrigation rehabilitation accounts for the majority of the ENPV. When the costs of project management cost are included the EIRR falls to 6 percent that is below the accepted criteria of 12 percent. Again, the lack of an accurate assessment of the benefits to flood protection and the need for general water resource development of the river basin should not preclude this type of subproject development.

11.4.3.5 Subproject 5: Rehabilitation of Yahia Abad Irrigation System

The overall EIRR of the subproject for investment in rehabilitation works is estimated at 22 percent. This reflects the low unit costs of rehabilitation and the incremental agricultural benefits to be achieved by extending the water supply to an intermittently irrigated area. The small size of holdings, dominated by staple wheat production, limits the introduction of higher value perennial crops and the shortage of summer water and markets generally prevents the growing of summer season vegetable crops. There are, however, substantial productivity

171 Western Basins Project Final TA Report – July 2005 benefits to be gained by the use of competitively priced agricultural inputs through the proposed credit programme which is reflected in an EIRR of 39 percent from the ALSS.

The combination of irrigation rehabilitation and ALSS gives an attractive EIRR of 29 percent, with irrigation rehabilitation accounting for nearly 40 percent of the ENPV and ALSS contributing to the remaining 60 percent. When the costs of project management cost are deducted the EIRR falls to an acceptable 20 percent.

11.4.3.6 Subproject 1 to 5: Overall Analysis

The combination of the costs of irrigation rehabilitation and ALSS when compared with the associated incremental benefits to agriculture production and to a lesser extent livestock production and the household livelihoods of the landless, yields an attractive EIRR of 24 percent. Of the resulting ENPV, nearly 60 percent is attributable to irrigation rehabilitation and the remaining 40 percent resulting from the ALSS intervention. When the costs of project management cost are deducted the EIRR falls to an acceptable 14 percent.

11.4.3.7 Sensitivity Analysis

A sensitivity analysis has been under taken to identify the effect of changes to key variables and to ascertain the impact on the EIRR and ENPV of these changes on the combined cash flow of the five subprojects. Results of the analysis are summarised in Table 11-539.

The analysis confirms that the EIRR, for the combined cash flows of the five subprojects, is relatively robust and, with the exception of a decrease in the project analysis period to 15 years, the EIRR would remain above the generally accepted rate of 12 percent. An overall 20 percent increase in civil works rehabilitation costs would decrease the EIRR by 1 percent to 13 percent. The switching value (SV) index suggests that for the EIRR to fall to 12 percent and the ENPV to fall to zero, investment costs would have to increase by 46 percent. This is an unlikely scenario. A 20 percent increase in both the incremental recurrent costs of MO&M and ALSS investment costs will have only a limited impact on the EIRR as indicated by the SV index of 174 and 209 percent respectively.

The effect of a 20 percent reduction in the benefits to irrigation rehabilitation or ALSS will again have a relatively small impact on the EIRR as indicated by the SV index of 28 and 49 percent respectively. When both streams of incremental benefits are reduced by 20 percent, the impact will understandably be greater and reduce the overall EIRR to 12 percent. This is confirmed by the sensitivity indicator (SI) of 5.2 and the SW index of 18 percent.

The impact of a 20 percent increase in the costs of project management allocation to the subprojects would reduce the overall EIRR to 13 percent. The SI and SW index are 2.5 and 40 percent respectively. More significantly, if the project costs and benefit streams are analysed over a twenty five year period (the base case has been taken as 20 years), there would be a small increase in the EIRR to 15 percent. If the analysis period is reduced to 15 years, the EIRR would fall to 11 percent, a 121 percent reduction in the ENPV, and below the generally accepted cut off point of 12 percent. Such a scenario implies a complete breakdown in the social cohesion of the canal community and in their ability to organise the management, operation and maintenance of the canal system. The history of these communities suggests that this is a totally unreasonable scenario.

39 Details are given in Attachment A10, Annex A6, Tables A6.3.

172 Western Basins Project Final TA Report – July 2005

Table 11-5: Economic Sensitivity Analysis

Base Case Change EIRR ENPV ENPV SI SV Sensitivity Tests (%) (%) Afg M (%) (%)

Base Case (analysis period 20 years) 14% 123.3 --

Sensitivity Tests: 1 Investment Costs Increased +20% 13% 70.2 - 43% 2.2 46% 2 Recurrent Costs Increased +20% 14% 109.1 - 12% 0.6 174% 3 ALSS Investment Cost Increased +20% 14% 111.6 - 10% 0.5 209% 4 Irrigation Benefit Decreased -20% 13% 34.5 - 72% 3.6 -28% 5 ALSS Benefit Decreased -20% 13% 72.9 - 41% 2.0 -49% 6 Irrigation & ALSS Benefit Decreased -20% 12% ( 15.8) -113% 5.6 -18% 7 Management Costs Increased +20% 13% 62.4 - 49% 2.5 40% 8 Project Analysis Period Increased + 5 yrs 15% 208.4 + 69% -- -- 9 Project Analysis Period Decreased -- 5 yrs 11% ( 26.4) -121% -- --

Source: Project Preparation Technical Assistance (PPTA) estimates, July 2005. ALSS = Agriculture and Livestock Support Services. EIRR = Economic Internal Rate of Return, ENPV = Economic Net Present Value (at 12% discount rate). SI = Sensitivity Indicator, SV = Switching Value (%).

11.5 Poverty Impact Assessment 40

The poverty reducing impact of the project is measured by evaluating the expected distribution of net economic benefits to the different wealth groups. The poverty impact ratio (PIR) expresses the proportion of the net economic benefits accruing to the poor as a ratio of the economic benefits to the project as a whole. It is reported that about 53 percent of the Afghanistan population are classified as poor and live on less than US$ 1.0 per day.41 The ‘wealth groups’ used for the financial and economic analysis of the project are based on the NRVA study42 concept of ‘better off’, ‘medium’, ‘poor’ and ‘very poor’ households. In this study, the households were categorised into these four groups by village shuras, based on perceptions of social economic status. However, the perception of wealth group is subjective, and the definition of wealth group can differ between communities. Financial household budgets prepared for the analysis of the ‘without’ project situation suggest that only the medium wealth group achieve income levels in excess of the US$ 1.0 per day. For the purpose of determining the PIR, it has therefore been assumed that the poor, very poor and landless households would fall below the poverty line.

The financial net present value (FNPV) of the net return stream is estimated at Afg 693.4 million. The economic net present value (ENPV) of the net benefit stream, is projected at Afg 783.0 million of which it is estimated that 63 percent, namely the poor, share croppers (poor and landless) and the landless, would accrue to those below the poverty line. The FNPV of the core subproject cost stream is estimated at Afg 828.5 million and the ENPV at Afg 660.0 million and the resulting net return / net benefit is estimated at Afg (135.1) million and the ENPV at Afg 123.0 million respectively. The difference of Afg 258.0 million is allocated as Afg 94.6 million to the community, Afg 117.7 million to the Government and Afg 45.7 million as labour. The Government allocation is further adjusted for the negative

40 The methodology used is described in ADB’s Guidelines for the Economic Analysis of Projects, 1997, Appendix 26: Impact on Poverty Reduction. 41 Asian Development Bank. 2003, Country Strategy and Program Update 2004 / 2006: Afghanistan. 42 The Vulnerability Analysis and Mapping (VAM) Unit of the World Food Programme and the Vulnerability Analysis Unit (VAU) of the Ministry of Rural Rehabilitation and Development, Report on Findings from the 2003 National Risk and Vulnerability Assessment (NRVA) in Rural Afghanistan, December 2004.

173 Western Basins Project Final TA Report – July 2005 financial net returns of Afg (135.1) to yield a total project net economic benefit of Afg 123.0 million. The details are summarised in Table 11-6.43

In calculating a base case PIR, it has been assumed that 63 percent of the net benefits attributed to the community, based on the wealth group analysis, would accrue to those below the poverty line. As per the recommended methodology, it is assumed a further 50 percent of the Government and 33 percent of the labour allocation would go to the poor. Based on these assumptions the project PIR would be 54 percent (Afg million of 66.0 / 123.0). Since the Government will be a major participant in the project, even where they have limited equity commitment, a critical parameter in poverty impact analysis is the extent to which government expenditure and taxation accrue to the poor, in other words, an estimate of the benefit / tax incidence, is required, for the poor from marginal government expenditure and finance. Where such country specific data is not available, it is proposed that a sensitivity test should be run with the government contribution reduced to 10 percent. This is roughly the upper bound for the share of the lowest quintile in income distribution for developing member countries (DMP). Under this scenario the PIR for the project is increased to 59 percent (Afg million of 73.0 / 123.0).

The analysis indicates that with a high PIR, the poor will receive a substantial proportion of the project benefits.

Table 11-6: Poverty Impact Assessment

Distribution Financial Economic Difference Community Government Labour Returns Returns

A. Distribution of Project Effects: Net Output 693.4 783.0 89.6 89.6 -- --

Project Costs Investment 336.4 255.4 81.0 -- 81.0 -- Labour 143.9 101.6 42.3 -- -- 42.3 Subtotal 480.3 357.0 123.3 -- 81.0 42.3 Recurrent 339.5 297.8 41.7 5.0 36.7 -- Labour 8.6 5.2 3.4 -- -- 3.4 Subtotal 348.1 303.0 45.1 5.0 36.7 3.4 Total 828.4 660.0 168.4 5.0 117.7 45.7

Net Benefits (135.0) 123.0 258.0 94.6 117.7 45.7

Allocation Community Government Labour Total

B. Project Net Benefit Allocation: Difference 94.6 117.7 45.7 258.0 NB Financial -- (135.0) -- (135.0) NB Economic 94.6 ( 17.3) 45.7 123.0 Poor (%) 63% 50% 33% Poor Benefits 59.6 ( 8.7) 15.1 66.0

C. Poverty Impact Ratio: Base Case – Government 50% 66.0 / 123.0 54% Test One – Government 50% 73.0 / 123.0 59%

Source: Project Preparation Technical Assistance (PPTA) estimates, July 2005.

43 Details are given in Attachment A10, Annex A6, Tables A6.18 to 21.

174 Western Basins Project Final TA Report – July 2005

12 COMMUNITY CONSULTATION

12.1 Background

As part of the PPTA, extensive community consultation was undertaken by the Gender Specialist, the Migratory Peoples Specialist, the Mirab and WUA Specialist and the Social Specialist. These have been reported in the Inception Report, the Mid Term Report and the individual specialist attachments to this Report. A full summary of their findings were presented in the Mid Term Report in Section 2.

In target villages along the Hari Rud selected by the PPTA Team for detailed study, it is apparent that the majority of households are not priority canal users for irrigation purposes. However, canal water is widely used for domestic purposes, while ground water is more important for both domestic and irrigation purposes. This means that canal rehabilitations will benefit a small number of existing land holders who are probably already at an advantage by owning land close to canals. Whilst, opportunities exist to supply more water and spread benefits further along canals, the reality is that a wider perspective is needed to benefit the majority of the communities. The use of wells is far greater and more important than the project brief would indicate; this is a serious issue for the technical investigation as it appears these experience seasonal fluctuations, and frequently many dry up for up to 4 months of the year. Wells are regularly increased in depth each season, indicating increasing pressure on groundwater resources. Whilst the years of drought will affect this, the use pattern must be quantified.

Existing canals are associated with landowners who are generally considered better off than other villagers. The proportion of landless people can exceed 50% excluding the migratory groups. The number of migratory people and their spread throughout the basin is much greater than initially indicated. Similarly, their relationship with both the wider community and the important socio-economic roles they play indicate a more complex social structure and greater interdependence than previously thought. Alternative livelihood income as well as land and resource access, are major issues for this group.

The rapidly increasing population from natural growth and from returnees and migrants is placing considerable pressure on all resources. For example many Kuchis are opting to migrate less, and establish permanent settlements. Many of these are also returnees from Iran and have brought skills in areas such as rangeland management that could be useful to utilize if land access and user rights could be established.

The complexity and diversity of social and economic relationships, amongst both male and female populations, and between settled and nomadic communities, are greater than first thought. Attitudes are changing concerning some aspects of traditional nomadic lifestyles, as there is a growing need to diversify and find more income sources from all resources. Experiences and skills brought back from Iran have altered and will continue to alter attitudes which, combined with increased population are forcing people to look for opportunities, such as off farm work, to survive and make use of the skill sets that are changing in the population. Women for example, see income generation as a key opportunity for themselves, that combined with community awareness raising among the general community to allow them to seek their own employment and income. Recently this has often been forced on women due to the loss of husbands and family through war and conflict, and the very poorest with large families to support. Alternative income generation across the wider community is a major issue as is income distribution and equity within the community.

Community definitions of wealth are associated with land ownership, access to wells and canals, home ownership, and cash in hand. Poverty is associated with no land, no home ownership, reliance upon renting and/or charity and a large number of children in the family. Social networks and support systems apparently operate within villages, although they do not

175 Western Basins Project Final TA Report – July 2005 address the extent of poverty observed, nor do they provide the poor with the opportunity to find independence and the dignity they seek.

Villagers are seeking outside support and can articulate their concerns and issues. They appear willing to participate in an approach based on shared risk and shared profit, which is consistent with Islamic tradition. Raising general awareness within the community of alternatives and addressing bias, in particular male and religious bias towards women will be necessary. This will take a long term approach building on existing cooperation mechanisms and harnessing current positive attitudes of people to move on from the current situation. Seed funding for activities within communities, self managed and gender/community specific, as well as socially beneficial activities, including wells and natural resource management would be useful.

Consistent with this, for the project to have a major impact on reducing poverty, the wider issues, beyond canal rehabilitation must be effectively addressed. Hence the importance cannot be overemphasized of community capacity building, agricultural and livelihoods support components, and watershed management (IWRM), that supports improved sustainable livelihoods for non-canal water users.

12.2 Irrigation Water Users including Mirabs

As community water managers, this group provides a unique service as elected/appointed representatives of the irrigation water users and land owners. Although not all the community are land owners or irrigation sharecroppers, the majority of the community rely upon the canal for water at some time during the year and as a significant social responsibility attached to canal management. Consultations with this group have been extensive as they will be responsible for the ongoing operation and maintenance of canals following rehabilitation.

A number of workshops were held with the Mirabs of the Jui Nau canal and other canals. During field inspections, less formal consultations with the various canal managers, community members along canals, village heads and district officials. These are reported in the Mirab and Water Users Specialist Report in Attachment 7.

12.3 Public Consultations

Apart from the many informal community meetings undertaken, formal workshops were also conducted in Herat to inform the provincial officials and representatives of districts and water users. Similarly, workshops were held in Kabul for the same purpose.

Public consultations for the environmental impacts were also held in Herat and surrounding districts. These are reported in the Environmental Assessment attached to this report and the Environmental Specialist Report in Attachment 15.

12.4 Community Consultation Process

It will be necessary to develop a community consultation process to ensure that the communities within the target areas are made aware of project activities and have the opportunity for input into, and participate in, activities and there by ensuring an opportunity to receive benefits from the project. As many community members are not land owners, they will not necessarily benefit directly from canal rehabilitation. However, they will have the opportunity to benefit from increased farm labour requirements, and participate in the livelihood programmes to develop non-farm activities including small animals, that are proposed in the ALSS and IWRM components.

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In response to these findings two community specialist positions have been included in the proposed Technical Assistance budget. Capacity building training has been included to support the process. This to ensure that counterparts, local project staff, and field coordinators acquire skills in community facilitation and consultation to address the wider communities issues during project implementation.

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13 IMPACT ON ENVIRONMENT

An initial environmental examination (IEE) was conducted during project preparation. The IEE confirms that the Project will have no significant negative impacts, but rather the Project will have significant positive environmental impacts on the project subproject areas. Rehabilitation of the irrigation canals and associated control structures will reduce water losses, improve water availability, and reduce flood damage.

The only potential negative impacts identified will occur during construction, and they are insignificant. They will be mitigated by ensuring that construction is carried out according to the Project Operations Manual as well as the standard ADB and Government of Afghanistan procedures for the appropriate disposal of waste, minimization of nuisances during construction, and proper management and restoration of construction sites.

None of the project components are located within a protected area, nor will they have a negative impact on historical or cultural monuments. The ecology in the project areas has been extensively modified through centuries of habitation and intensive agriculture and as a result both terrestrial and aquatic biodiversity has been greatly reduced throughout the Project area with accelerated destruction of flora and fauna since the beginning of conflict in the 1980’s. Measures have been proposed to mitigate the minor potential negative impacts identified in the IEE.

The Project will improve water use efficiency and increase crop production without reducing flows to users downstream in the Hari Rud, and although agricultural support service improvements will result in increased use of agro-chemicals, which might have a negative impact on effluent water quality, this will be mitigated by the introduction of improved agricultural practices aimed at managing agro-chemicals. In addition, the introduction of improved land management practices to reduce land and river bank erosion will result in improved stream flow quality.

Mitigation measures as well as an environmental management and monitoring plan integrated into the project design and costs through the establishment of an environmental monitoring unit within the Project M&E Program. This will be done during the first year of project implementation. A key feature of the monitoring program is the development of local, sustained, capacity to monitor, analyze, and remediate through a joint agreement among the DOE, Herat University Faculty of Agriculture, and the Provincial Irrigation Department, and the PIU.

Supported by consultants, the unit will design, refine, and implement the monitoring system set forth in the IEE, collaborate with mirabs and wakils, to identify a cost efficient sampling distribution that will maximize information, design a laboratory suited to the capacity of local staff, train provincial staff in the correct procedures for managing the collection, analysis, recording, and reporting of soil and water information, and assist with the monitoring of Project impacts.

The SIEE is presented in Appendix L.

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14 RESETTLEMENT FRAMEWORK SUMMARY

14.1 Introduction

The Western Basins Project (WBP) involves rehabilitating and upgrading existing irrigation infrastructure under a loan to be co-financed by the Asian Development Bank (ADB), Canadian International Development Agency (CIDA) and the Abu Dhabi Fund.

The Project will result in enhanced agriculture productivity and regional food security by improving irrigation systems, enhancing the capacity of water bailiffs (mirabs), and promoting integrated water resources management. The Project provides for sustainable operations of irrigation infrastructure in subproject schemes through an intensive participatory process. The five core subprojects studied during the project preparation stage did not involve resettlement and are not anticipated to have land acquisition (LA) or negatively impact any local community. A large number of additional schemes will be selected for project support, but they are not expected to have any significant LA, resettlement, or impact on local communities. However, a detailed compensation, resettlement and rehabilitation framework has been prepared, setting out the policies, principles, procedures, and implementation mechanisms to adequately address the issue of LA, resettlement, and impacts on vulnerable people if they occur during project implementation. It is attached as Appendix E.

14.2 Compensation and Resettlement and Rehabilitation Policies

The ADB policy on involuntary resettlement was adopted in November 1995. It was amplified and extended in the ADB Operations Manual section F2/BP of 29 October 2003. The policy requires the following: (i) avoid or minimise resettlement impacts where possible, (ii) consult with affected people (APs) including disclosure of the resettlement plan (RP) and project-related information, (iii) pay compensation at the market or replacement value, (iv) provide resettlement assistance to affected people including persons with no title to land, (v) ensure income restoration and rehabilitation, and (vi) give special attention to vulnerable groups. The policy objectives and principles related to income restoration or having a bearing on it are as follows: (i) people unavoidably displaced should be compensated so that their economic and social future would be generally as favourable as it would have been without the project; (ii) any involuntary resettlement should, as far as possible, be implemented as part of a development program and RPs should be time-bound and with adequate budgets; (iii) APs should be provided resources and opportunities to re-establish their homes and livelihood as soon as possible; (iv) APs should be fully informed and consulted on compensation options; (v) existing social and cultural institutions of resettled persons and their hosts should be supported and used to the greatest extent possible; and (v) resettled persons should be integrated economically and socially into the host communities.

The WBP resettlement framework is also consistent with the Afghanistan Land Acquisition Law of 2000 which replaces an earlier law of 1987 and contains a number of principles consistent with the ADB policy but does not fully comply with that policy. Afghanistan does not have a formal policy on compensation, resettlement and rehabilitation in cases of compulsory acquisition of land by the Government and consequent resettlement. The closest to such a policy are the provisions of the Land Acquisition Law of 2000 and the few references to property acquisition by the Government in the Constitution of 2004.

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The principles of the project compensation, resettlement and rehabilitation framework draw from the ADB policy and have extended the provisions of the Land Acquisition Law. These principles include the following: (i) negative impacts will be minimised as much as possible; (ii) compensation will be paid at replacement value to improve or at least restore incomes and living standards to what they were prior to the project commencing; (iii) APs will be consulted on the issues of LA, compensation, and rehabilitation assistances options; (iv) compensation and assistance will be paid in full before physical relocation; (v) a mechanism will be established in every district to ensure speedy resolution of disputes and disagreements; and (vi) all efforts will be made to ensure the participation of vulnerable groups in plan preparation, implementation, and monitoring.

The resettlement framework sets out the eligibility and entitlements for loss of land or other immovable properties, or income loss (Supplementary Appendix D includes the compensation matrix). Affected individuals and households may be entitled to a combination of compensation measures, resettlement and rehabilitation assistance, depending on the nature of ownership rights of lost assets, scope of impacts, and the social and economic vulnerability of APs.

14.3 Nomadic people’s policies

While almost all of the villages are populated by indigenous Afghan people there are numerous nomadic people (Kuchis) who make seasonal use of public pasture lands in the vicinity of many of the works to be carried out under the sub-projects. The work to be undertaken by the project is unlikely to have any impact on the Kuchi people or their traditional use of nearby public pasture lands.

14.4 Institutional Framework and Implementation Arrangements

To address resettlement, the Ministry of Energy and Water (MEW) will establish, under the terms of the Land Acquisition Law, a Compensation Committee (CC) in each district with affected land to work with the Project Implementation Unit (PIU) that will be responsible for policy guidance, coordination and planning, internal monitoring, and overall reporting for resettlement, nomadic and indigenous peoples, social assessment, economic evaluation, and environment. The CC will include the following members: two representatives from the Ministry of Finance, one of whom is to be responsible for institutional issues, the Director or Deputy-Director of the Ministry of Energy and Water in Herat, and the land owner or the land owner’s representative, a Herat-based representative of the Ministry of Agriculture and Animal Husbandry (MAAHF), the District Governor or Deputy Governor, the District Imlak Officer, the District Agricultural Officer and one or two representatives of the PIU. The Governor or Deputy Governor of the relevant district will chair each CC. There will be a core CC established of all except the relevant landowner or landowner’s representative. The latter are required by law to members of the CC in respect of that owner’s property. The CC and the PIU will have the assistance of an international and a national compensation and resettlement specialist.

The PIU will be responsible for determining if an RP is needed, based on the initial poverty and social assessment that is carried out for each subproject and discussions with the consultants and the Governor or Deputy Governor of Herat Province. If a RP, or any LA, is found to be necessary, consultant support will be engaged to prepare and help implement the RP in full consultation with the APs, the PIU and the CC both of which will work in close association with involved DEW staff to ensure smooth implementation of the RP, including disbursement of assistance, providing livelihood solutions and upgrading of skills. The monitoring and evaluation of the implementation of the RP would be contracted out to an

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NGO7. In each relevant district the Deputy Governor will be the de facto social development liaison officer (SDLO) who, with the international and national compensation and resettlement specialists, will be responsible for compensation, resettlement and rehabilitation activities of the CC and PIU.

14.5 Consultation, Disclosure and Redress of Disputes and Disagreements

The PIU will ensure that APs for resettlement, impacted tribal members, and other stakeholders are informed, consulted, and allowed to participate actively in the sub-project development process, including preparation, implementation, and monitoring of sub-project results and impacts. During implementation and the monitoring stage, information will be disseminated to APs and other key stakeholders. The information will be in Dari (and Pashtu where appropriate) and presented in the sub-project area, describing the main sub-project features including the entitlement framework for compensation, resettlement and rehabilitation. Consultation will be carried out in ways appropriate for cultural, gender-based, and other differences among the stakeholders. Where groups or individuals have different views or opinions, particular emphasis will be laid on the views and needs of the vulnerable groups.

Consultation initiated during the preparatory stage will continue during the implementation stage. In situations necessitating resettlement, consultations during implementation will involve agreements on compensation, rehabilitation assistance options, and income restoration. Information disclosure will be pursued for effective implementation and timely execution of the RP. For the benefit of the community in general and APs in particular, the RP and resettlement and rehabilitation policy will be translated into Dari (and Pashtu if necessary) and kept at the PIU and each district office, with a copy also being given to the headman of each affected village.

The RP will be disclosed to the APs and other stakeholders for review and comments on the mechanisms and entitlement in implementing the RP. The aim of this procedure is to receive comments from the APs in particular and incorporate the appropriate suggestions if technically feasible.

A procedure to address complaints and disputes will be established with the first level of redress being a district level sub-committee established for the purpose, with the right of appeal to the Governor of Herat, and a further right of appeal to the Deputy Minister or Minister of Energy and Water with the alternative of an appeal through the courts. With the anticipated negligible or low level of adverse project affects it is expected that all complaints and disputes should be able to be satisfactorily settled in the traditional manner at the district level.

14.6 Monitoring and Evaluation

The PIU will set up an internal implementation monitoring system comprising the PIU, the consultants and its own field staff. In a sub-project where a RP is prepared for significant resettlement impacts, the PIU will be required to engage a qualified independent external monitoring agency (IMA) to review and evaluate the sub-project RP implementation. The IMA will carry out extensive field visits and consultation with the APs, for which the cooperation of MEW, MAAHF, CC and local officials will be required. At least two external monitoring reports will need to be prepared for each sub-project with significant impacts and will have to be discussed with the PIU and the PSC meetings called solely for that purpose and any resulting necessary remedial actions will need to be taken by the PIU or the CC or the MEW as the case may be.

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Monitoring indicators will be established in the RP by the PIU with the concurrence of the ADB. The monitoring for compensation, resettlement and rehabilitation activities and plans will be a part of the ADB Project Performance Monitoring System established for the overall Project.

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Appendix A: Core sub project MO&M Costs

Appendix B: Training Programmes

Appendix C: Project Operations Manual

Appendix D: Technical Assistance Support

Appendix E: Resettlement Framework and Land Titling

Appendix F: Monitoring and Evaluation Programme

Appendix G: Community Consultation

Appendix H: WBP Implementation Schedule

Appendix I: Social Assessment

Appendix J: Project Costs Summary Tables

Appendix K: Technical Assistance Budgets

Appendix L: Economic Analysis of Core Sub Projects

Appendix M: Summary Initial Environmental Examination

Appendix N: Project Maps