Document of The World Bank
FOR OFFICIAL USE ONLY
Public Disclosure Authorized Report No: 63459-PK
PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED CREDIT IN THE AMOUNT OF SDR161.2 MILLION (US$250 MILLION EQUIVALENT)
Public Disclosure Authorized TO THE
ISLAMIC REPUBLIC OF PAKISTAN
FOR THE
PUNJAB IRRIGATED AGRICULTURE PRODUCTIVITY IMPROVEMENT PROGRAM PROJECT (PIPIPP)
Public Disclosure Authorized February 23, 2012
Agriculture and Rural Development Unit Sustainable Development Department South Asia Region
Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
CURRENCY EQUIVALENTS April 2011 Currency Unit = Pakistan Rupees (Rs) US$ = 85 Rs
FISCAL YEAR July 1 – June 30
Weight and Measures
Metric System 1 meter (m) = 3.280 feet 1 hectare (ha) = 2.470 acres 1 Kilometer (km) = 0.620 miles 1cubic meter(m3) = 35.310 cubic feet 1 million acre feet (MAF) = 1.234 billion cubic meters 1 cubic foot/second (cfs) = 0.0283 cubic meters/sec (m3/sec)
ABBREVIATIONS AND ACRONYMS
ACZ Agro-climatic Zones GIS Geographic Information System ADB Asian Development Bank GM General Manager AWBs Area Water Boards GMRC Glacier Monitoring and Research Center BEC Bid Evaluation Committee GoP Government of Pakistan BER Bid Evaluation Report GoPunjab Government of Punjab CAS Country Assistance Strategy GPN General Procurement Notice CCGT Combined Cycle Gas Turbine Gwh Gigawatt hour CPPA Central Power Purchase Agency Ha Hectare CPS Country Partnership Strategy HEIS High Efficiency Irrigation Systems CQ Consultants‟ Qualification I&D Irrigation & Drainage CSCs Construction Supervision Consultants IBRD International Bank for Reconstruction and DA Designated Account Development DD Deputy Director IBWS Indus Basin Water System DGAWM Director General Agriculture Water IBWT Indus Basin Water Treaty Management ICB International Competitive Bidding dgMarket Development Gateway Market ICR Implementation Completion Report DIC District Implementation Committee ICS Individual Consultant Selection DISCO Distribution Company IDA International Development Agency DP Development Partner IDB Islamic Development Bank DPLs Development Policy Loans IDC Interest During Construction DRC District Rate Committee IDP Irrigation and Power Department DSCR Debt Service Credit Ratio IFIs International Financial Institutions EA Environmental Assessment IFR Interim Financial Report ECA Export Credit Agencies IPOE Independent Panel of Experts EIA Environmental Impact Assessment IPPs Independent Power Producers EPA Environmental Protection Agency IUFR Interim Unaudited Financial Report ERR Economic Rate of Return JICA Japan International Cooperation Agency ESMP Environmental and Social Management Plan KAPCO Kot Adu Power Company FBS Fixed Budget Selection KESC Karachi Electric Supply Corporation FM Financial Management Kg Kilogram FOs Farmers Organizations Km Kilometer GBHP Ghazi Barotha Hydropower Project KP Khyber Pakhtunkhwa GDP Gross Domestic Product Kwh Kilowatt hour
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LCS Least Cost Selection PRC Project Rates Committee LIBOR London Inter-Bank Exchange Rate PRSP Poverty Reduction Strategy Paper M&E Monitoring & Evaluation PRW Punjab Rice-Wheat MAF Million Acre Feet PSC Project Steering Committee M&ECs Monitoring and Evaluation Consultants PSW Punjab Sugarcane-Wheat mm millimeter QBS Quality Based Selection MOWP Ministry of Water and Power QCBS Quality and Cost Based Selection MTR Mid Term Review RAP Resettlement Action Plan MW Megawatt RCU Regional Coordination Unit NCB National Competitive Bidding RPD Regional Project Director NEPRA National Electric Power Regulatory RSC Residual Sodium Carbonate Authority RTW River Training Work NGO Non Government Organization SAP Social Action Plan NPV Net Performance Value SCARP Salinity Control and Reclamation Program NTDC National Transmission and Dispatch SEMP Social and Environmental Management Plan Company Limited SFMS Sr. Financial Management Specialist O&M Operation and Maintenance SIL Specific Investment Loan OCC Opportunity Cost of Capital SOPs Standard Operating Procedures OFWM On Farm Water Management SSS Single Source Selection ORAF Operational Risk Assessment Framework T4HP Tarbela Fourth Extension Hydropower PAD Project Appraisal Document Project PCC Project Coordination Committee TA Technical Assistance PCW Punjab Cotton-Wheat TATCs Technical Assistance and Training PD Project Director Consultants PDO Project Development Objectives TDP Tarbela Dam Project PEPCO Pakistan Electric Power Company TOR Terms of Reference PHAP Public Health Action Plan UIB Upper Indus Basin PISCs Project Implementation Supervision UNDB United Nations Development Business Consultants USA United States of America PIC Project Implementation Committee WAPDA Water and Power Development Authority PIDA Punjab Irrigation Development Authority WCAP Water Sector Capacity Building Project PIPIPP Punjab Irrigated Agriculture Productivity WEC WAPDA Environmental Cell Improvement Program Project WMO Water Management Officer PMU Project Management Unit WMTI Water Management Training Institute PMW Punjab Mixed-Wheat WSIP Water Sector Improvement Project POE Panel of Experts WTP Willingness to Pay PPC Project Policy Committee WUA Water Users‟ Association PQ Pre-qualification
Regional Vice President: Isabel M. Guerrero Country Director: Rachid Benmessaoud Sector Director: John Henry Stein Sector Manager: Simeon K. Ehui Task Team Leader: Masood Ahmad
This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization
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Table of Contents I. Strategic Context ...... 1 A. Country Context ...... 1 B. Sectoral and Institutional Context ...... 1 C. Higher level objectives to which the project contributes ...... 7 II. Project Development Objectives (PDOs) ...... 7 A. PDOs ...... 7 1. Project Beneficiaries ...... 7 2. PDO Level Results Indicators ...... 8 III. Project Description...... 8 A. Project components ...... 8 B. Project Financing ...... 11 1. Lending Instrument: The lending instrument is Specific Investment Loan (SIL)...... 11 2. Project Cost and Financing ...... 11 C. Lessons Learned and Reflected in the Project Design ...... 12 D. Alternatives considered and reasons for rejection ...... 13 IV. Implementation ...... 14 A. Institutional and Implementation Arrangements ...... 14 B. Results Monitoring and Evaluation ...... 15 C. Sustainability...... 16 V. Critical risks and possible controversial aspects (Refer to Annex 4) ...... 17 VI. Appraisal Summary ...... 17 A. Economic and Financial Analysis ...... 17 B. Technical ...... 19 C. Financial Management ...... 19 D. Procurement ...... 20 E. Social (including safeguards) ...... 20 F. Environment (including safeguards) ...... 21 Annex 1: Results Framework and Monitoring...... 26 Annex 2 Detailed Project Description ...... 28 Annex 3: Implementation Arrangements ...... 52 Annex 4: Operational Risk Assessment Framework (ORAF) ...... 67 Annex 5: Implementation Support Plan ...... 70 Annex 6: Team Composition ...... 73 Annex 7: Economic Analysis...... 74 Annex 8: Environment and Social Assessment Summary ...... 82
MAP IBRD 38945 IBRD 37352
v PAKISTAN
PROJECT APPRAISAL DOCUMENT PUNJAB IRRIGATED AGRICULTURE PRODUCTIVITY IMPROVEMENT PROGRAM PROJECT (PIPIPP)
South Asia Region SASDA Date: February 23, 2012 Sector(s): Irrigation and Drainage (70%); Agriculture Country Director: Rachid Benmessoud extension and research (30%) Sector Director: John Henry Stein Sector Manager: Simoen K. Ehui Theme (s): Rural services and infrastructure (40%); Water Team Leader(s): Masood Ahmad resources management (40%); Other environment and Project ID: P125999 Natural Resources Management (20%) Lending Instrument: Specific Investment Lending EA Category: Category B Project Financing Data: Proposed terms: [ ] Loan [ X] Credit [ ] Grant [ ] Guarantee [ ] Other: Total Bank Financing (US$m): 250 For US$250 million standard IDA blend terms, with a maturity of twenty five (25) years, including a grace period of five (5) years.
Source Total Amount (US$M) Total Project Cost: 423.5 Cofinancing by Farmers and Beneficiaries: 173.5 Borrower: - Total Bank Financing: 250.0 IBRD IDA New 250.0 Recommitted
Borrower: Islamic Republic of Pakistan, Government of the Punjab Responsible Agency: Directorate General Agriculture (Water Management) Contact Person: Chaudhary Mohammad Ashraff Telephone No.: 0092-42-99200703 & 0092-42-99200713 Fax No.: 0092-42-99200702, Email: [email protected], Estimated Disbursements (Bank FY/US$ m) FY FY13 FY14 FY15 FY16 FY17 FY18 Annual 10 20 50 60 60 50 Cumulative 10 30 80 140 200 250
vi Project Implementation Period: July 1, 2012 to June 30, 2018 Expected effectiveness date: July 1, 2012 Expected closing date: December 31, 2018 Does the project depart from the CAS in content or other [] Yes [X] No significant respects? If yes, please explain: Does the project require any exceptions from Bank policies? ○ Yes [X] No Have these been approved/endorsed (as appropriate by Bank ○ Yes ○ No management? Is approval for any policy exception sought from the Board? ○ Yes ○ No If yes, please explain: Does the project meet the Regional criteria for readiness for [X] Yes ○ No implementation? If no, please explain: Project Development objective: The project‟s main objective is to improve productivity of water use in irrigated agriculture. This will be achieved through improved physical delivery efficiency and irrigation practices, crop diversification and effective application of inputs which will translate into greater agricultural output per unit of water used. The project‟s objectives would contribute to increased agricultural production, employment and incomes, higher living standards and positive environmental outcomes. Project description: Component A: Installation of High Efficiency Irrigation Systems (US$234 million). This component will include construction of high efficiency irrigation systems such as drip, bubbler, sprinkler, over an area of about 120,000 acres. It would also support provision of precision land leveling equipment for improving land leveling operations in the country and thus improving irrigation application efficiency. This would result in higher productivity of water.
Component B: Improvement of Community Irrigation Systems (US$160 million). This component would cover improvement of watercourses in canal irrigated areas, as well as in the rain fed areas. The watercourse level water users‟ associations would be established and they would receive support to improve about 9,000 watercourses.
Component C: Improved Agriculture Technology/Practices and Monitoring and Evaluation (US$9.0 million). This component would support improvement in irrigation agronomy, demonstration of and assistance in improved and modern technologies and methods to increase agriculture production. Assistance in crop diversification and training, covering training of service providers and farmers, training of trainers, and establishment of farmers‟ information desk. It would also cover monitoring of the project impact, and of the environmental and social action plans.
Component D: Project Management, Supervision, Technical Assistance, Training and Strategic Studies (US$20.5 million). This component would support the Government of Punjab‟s efforts in project management, construction supervision, checking delivery of works, quality and certification of payments, strategic studies, technical assistance and training to staff, etc.
vii Safeguard policies triggered? Environmental Assessment (OP/BP 4.01) [X] Yes ○ No Natural Habitats (OP/BP 4.04) ○ Yes ○ No Forests (OP/BP 4.36) ○ Yes ○ No Pest Management (OP 4.09) ○ Yes ○ No Physical Cultural Resources (OP/BP 4.11) ○ Yes ○ No Indigenous Peoples (OP/BP 4.10) ○ Yes ○ No Involuntary Resettlement (OP/BP 4.12) ○ Yes ○ No Safety of Dams (OP/BP 4.37) ○ Yes ○ No Projects on International Waterways (OP/BP 7.50) [X] Yes ○ No Projects in Disputed Areas (OP/BP 7.60) ○ Yes ○ No Conditions and Legal Covenants:
Financing/Proj Description of Condition/Covenant Date Due ect Agreement Reference Project Government of Punjab (GoPunjab) would till completion of the Throughout Agreement (PA) Project, with terms of reference (TORs) composition and staffing project Schedule acceptable to the Bank maintain: (a) the office of the Director implementation Section I A1-9 General Agriculture Water Management (DGAWM), Regional, period District and Tehsil Coordination Units; and (b) Project Policy Committee (PPC), Project Steering Project (PSC), and District Rates Committee. PA Schedule GoPunjab would maintain the Project Implementation Supervision Throughout Section I A10 Consultants (PISCs), Monitoring and Evaluation (M&ECs), and project Technical Assistance and Training Consultants (TATCs), under terms implementation and reference and contractual arrangements satisfactory to the Bank. period PA Schedule GoPunjab would ensure that independent auditors carry out the Annually Section II Part D Project audits in accordance with scope and TORs acceptable to the Bank, which shall include special examination of the controls and compliance with the agreed-upon procurement procedures. PA Schedule DGAWM would establish procurement documentation and record Within three Section III keeping systems, including a website showing the status of months after procurement of various contracts and their performance, and make effectiveness both fully operational, and put in place a procurement complaint handling system by no later than three months after effectiveness. PA Schedule DGAWM will: (i) monitor the physical and financial progress of the 45 days after Section I, D Project, implementation of the Social Action Plan (SAP) and EMP, each quarter, Financing and the project impact studies; (ii) analyze the data on key September 30 Agreement (FA) performance indicators on a regular basis; (iii) prepare and submit each year; and Schedule 2 quarterly progress reports within 45 days following each quarter; and March 31 each Section II (iv) submit annual progress reports each year by September 30 of year each year, and annual work plans for the following year, each year by March 31. FA Schedule II The mid-term review of the Project would be undertaken by October October 31, Section II C and 31, 2016 2016 PA Section II C PA Section The government of Punjab would ensure that laser leveling units Twelve months Schedule currently owned by the DGAWM are disinvested and provided to the after Section IV service provider following the same criteria under this project. effectiveness
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I. Strategic Context
A. Country Context
1. Pakistan has important strategic endowments and development potential. The country is located at the crossroads of South Asia, Central Asia, China and the Middle East and is thus at the fulcrum of a regional market with a vast population, large and diverse resources, and untapped potential for trade. The increasing proportion of Pakistan‟s working-age population provides the country with a potential demographic dividend but also with the critical challenge to provide adequate services and increase employment. Poverty levels have declined from 34.5 percent in 2001/2002 to an estimated 17.2 percent in 2007/2008, although over the past two years there have been signs that poverty levels may be increasing again. An important recent development is the devolution of greater decision-making authority in the provision of services to the provinces. Furthermore, the country has one of the most extensive water/irrigation networks in the world. These water/ irrigation assets have underpinned food security in a country that ranks among the world‟s most arid and provide the basis for rapid potential growth in agricultural income and employment.
2. Pakistan faces significant economic, governance and security challenges to achieve durable development outcomes. The persistence of conflict in the border areas and security challenges throughout the country is a reality that affects all aspects of life in Pakistan and impedes development. A range of governance, corruption and business environment indicators suggest that deep improvements in governance are needed to unleash Pakistan's growth potential.
3. Pakistan also faces significant economic challenges. As Pakistan recovered from the 2008 global crisis, its gross domestic product (GDP) grew 3.8 percent in Fiscal Year 2009/2010 (FY09/10). The 2010 floods, exacerbated by a hike in food and fuel prices, caused economic activity to slow to 2.4 percent in FY10/11. Growth is forecast to rise somewhat to the 3.5 percent range in FY 11/12. Inflation, at 13.7 percent in FY10/11 and forecast at 12 percent for FY11/12 is set to continue its four-year run in double digits. Fiscal performance has continued to exert a drag on the economy; there was a deficit of 6.3 percent of GDP in FY10/11, and this may close to or above 6.0 percent in FY11/12 as well. The rate at which exports and remittances grow affect prospects for the current account, which showed a surplus of 0.2 percent of GDP in FY10/11 but which the Government forecasts will become a deficit of 1-1.5 percent in the current year. Currency reserves have been in the range of about 4 months of imports for the past year but may decline somewhat towards the end of this year.
4. Availability of water is crucial for economic growth and development of Pakistan. The country‟s per capita availability of useable water is decreasing primarily due to population growth but also due to pollution and inefficient use of available water resources. Water and sanitation services also suffer from poor quality and limited availability. The water quality in rivers, streams, and canals has also been gradually deteriorating, leading to public health concerns. One of the main objectives of the country partnership strategy is to strengthen irrigation infrastructure and agricultural competitiveness.
B. Sectoral and Institutional Context
Agriculture Sector Setting
5. Agriculture is critical. Despite its declining share of Pakistan‟s GDP – estimated at 22% in 2009 - agriculture remains central to the country‟s economy. It is the single most important source of employment and exports, accounting for two-thirds of employment and 80% of exports. Most of the poor live in rural areas and tend to be employed mostly as agricultural wage workers. Migration of people from rural areas is a contributing factor for unplanned urban growth and urban poverty.
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6. Punjab is the most populated province of the country. Its total geographical area is 20.63 million hectares, of which 12.27 million hectares (58.90 %) are cultivated, 3.01 million hectares (14.9 %) are uncultivable, 1.74 million hectares (8.4%) are cultivable waste, and 0.50 million hectares (2.3 %) are under forests. About 60 percent of the area commanded by the Indus Basin Water System (IBWS) is in Punjab (about 22 million acres). Over 70 percent cropped area of the IBWS is in Punjab. Its share of total agricultural production of the country is more than 80 percent in case of cotton, almost 70 percent for wheat, nearly 60 percent for sugarcane, and 50 percent in rice. The overall contribution of the province towards the agriculture sector is estimated at more than 80 percent, of which about 90 percent comes from irrigated areas. Major crops are wheat (38% of area), cotton (15% of the area), rice (10%), sugarcane (4%) and orchard (about 2%). See Annex 2 for more details.
Water/Irrigation and Drainage Sector and Issues
7. Pakistan‟s agriculture sector is almost wholly dependent on irrigation – irrigated land supplies more than 90 percent of agricultural production. Agriculture in most areas is not possible without irrigation because of Pakistan‟s arid and semi-arid climate with low and variable rainfall. Annual rainfall over much of the area is not more than 150 mm per annum with high evaporation rates, ranging from 1,250 mm to 2,800 mm per annum. However, there are abundant surface water resources in the Indus Basin, which cover 566,000 km2 (70 percent of the country). This basin is the major source of water for Pakistan.
8. Indus Basin Water System. Pakistan relies on the largest contiguous water system in the world, namely the Indus Basin Water System (IBWS), for basic food security and supply of water for all sectors of the economy. The IBWS consists of the Indus River and its tributaries, three major multi-purpose storage reservoirs, 19 barrages, 12 inter-river link canals, 43 major irrigation canal commands (covering over 14 million hectares), and over 120,000 watercourses, delivering water to farms and other productive uses. Annual river flows are about 180 billion cubic meters (m3) of which about 120 billion m3 of water is diverted from the river system to canals. The total length of the canals is about 60,000 km, with communal watercourses, farm channels and field ditches running another 1.8 million km. These canals also serve as the country‟s main waterways. Pakistan would have remained largely a desert without the development of this system of canals, dams and hydraulic structures. The IBWS is considered the backbone of the country‟s economy and is the sole source of water supply supporting life and livelihoods. In addition to providing water for irrigated agriculture, these resources also support the development of major cities, industry, and growth centers.
9. Generally, the hierarchical canal system runs from main canals to branch canals to distributaries/minors. Open, free-flowing outlets (moghas) regulate water flow from distributary/minors to the watercourses that supply water to chacks or dehs (tertiary irrigation command area). These watercourse commands are a complex miniature irrigation system with an average length of about 20 km. Water is distributed to the field by a weekly time rotation (warabandi) based on the size of the land holding. The canal system is also a major source of recharge for the groundwater aquifers. In fresh groundwater areas, groundwater is pumped by tubewells to supplement canal supplies. Groundwater resources are substantial, with more than 600,000 tubewells in the country contributing significantly to the water supplies in areas underlain by fresh groundwater.
10. Irrigation and Drainage Sector Issues. The key challenges in the irrigation sector are: (i) low surface water delivery efficiency (only about 35-40 percent from the canal head to crop root zone), major losses are in watercourse command area (tertiary level canals 40 percent of water is lost in delivery and application); (ii) wasteful on-farm water use and low water productivity; (iii) poor operation and maintenance (O&M) and low cost recovery; (iv) water distribution inequities; (v) lack of storage capacity and control structures and limited availability of water resources; (vi) water-logging and salinity; and (viii) a constrained investment capacity. Some of these issues, in particular poor O&M of the
2 Government owned upper tiers of system1 and inequities in water distribution, are a manifestation of institutional weaknesses in the sector, which is mainly due to the near exclusive control by public sector entities, characterized by the usual inefficiencies of centralized bureaucracies, lack of corporate skills, and poor client (farmer) focus and accountability. This results in lack of confidence among the users that additional fees and levies would indeed be used for improvement of the system, thus generating low cost recovery, which in turn leads to constrained sector finances and capacity to make investment and, to a great extent, lack of additional storage and control structures. These issues are being addressed in various ways through the reform program, whose progress varies throughout the country. The low watercourse command efficiency, wasteful on-farm water use and low productivity of water is to some extent due to the nature of infrastructure in the watercourse command and distribution system within it and traditional method of flood irrigation which is commonly practiced -- this would be addressed under this project. Water-logging and salinity is caused by excessive losses from canals and absence of appropriate drainage.
11. Irrigation and Drainage Sector Reform Program. After the irrigation and drainage strategy of 1994, there has been a major change in the direction in the sector.2 The Government adopted a completely new approach to address the irrigation system issues and started an institutional reform program to revamp irrigation and drainage (I&D) institutions with the aim of establishing an efficient, self-sustaining I&D system. These efforts were supported by Bank operations such as the National Drainage Program, Punjab Groundwater Development Project, NWFP On-Farm Water Management, the ongoing Sindh On-Farm Water Management Project, Sindh Water Sector Improvement Project (WSIP) and two Development Policy Loans in Irrigation and Drainage Sector in Punjab. The Asian Development Bank (ADB) is supporting the reform program through the Punjab Irrigated Agriculture Investment Program, a US$900 million program out of which a US$217 million loan has been signed for the Lower Bari Doab Canal Improvement Project, which also covers rehabilitation of Balloki Barrage.
12. Under these reforms: (a) irrigation service is being decentralized by developing commercially oriented Area Water Boards (AWBs) on a canal command level, while management at the distributary level is transferred to Farmers Organizations (FOs) through Irrigation Management Transfer Agreements. Autonomous provincial irrigation and drainage authorities have also been established to (a) deliver water to AWBs and to handle off-farm drainage and regulations; (b) ensure greater transparency in water measurements and accounting is introduced along with an enhanced monitoring capacity using technologies (e.g. internet); and (c) preparation of asset management plans and improved methodology for determining O&M requirements.
13. Progress on the reform program is slow but steady. The Punjab Irrigation Drainage Authority (PIDA) Act of 1997 established PIDA with the objectives of replacing the existing management of irrigation and drainage with a more responsive, equitable and user friendly institution, achieving efficient and economical operation and maintenance (O&M) on sustainable basis, and enhancing the participation of farmers in the management of the system at the distributary/minor canal level through formation of Farmers‟ Organizations. The reform program is perhaps most advanced in Sindh Province. Sindh has passed an ordinance, namely the Sindh Water Management Ordinance of 2002, providing the underlying legal basis for the new institutions as well as defining their role in the sector. Sindh has also established three AWBs in Nara Canal, Ghotki Canal and the Left Bank covering Akram Wah and Fuleli canals covering about 1.8 million hectares of land or 30% of the irrigated area in Sindh. The FOs have been established on almost all distributary canals in these AWBs. Punjab has also implemented very
1 Barrages, main canals, branches and distributary/minor (i.e. secondary level canals), are owned and managed by the Government, though barrages being strategic assets commanding millions of acres of area (also multipurpose) often get better attention. The watercourse is managed by the community and on-farm field channels are managed by the farmers. The reform program emphasizes transfer the distributary canals to formally organized farmers‟ organizations (FOs) and encouraging participator water management. 2Pakistan: Irrigation and Drainage Issues and Options, March 1994, Report No. 11884-PAK, Pakistan Water Country Assistance Strategy – Pakistan‟s Water Economy Running Dry, 2005.
3 impressive I&D reform programs that are scaled up under the two development policy loans (DPLs). In eight canal commands, covering about 6.5 million hectares, Punjab has started establishing FOs. Reform programs have also started in Balochistan and Khyber Pakhtunkhwa (KPK) Provinces, but they lag behind considerably.
14. So far, about 300 FOs have been formed in Sindh mostly in the three AWBs. Management transfer agreements have been signed with 284 FOs. Punjab has started a reform program in 8 canal commands. About 297 FOs have been established and management has been transferred. As expected, the outcomes of these reforms are mixed with some FOs performing well, some weak and others too politicized. There is a need for continued capacity building of these FOs until they can begin to function effectively. Once in place and properly working, user management can then be enhanced to cover the upper tiers of the system such as branch and main canals, making the overall AWB operation more effective. This may take more than a decade.
15. The water monitoring system established in Punjab is linked with display of information on the internet. However, it needs further development along with real time measurement and capacity for accounting and auditing. The asset management plans have been prepared along with estimation of O&M requirements for various tiers of the system. Punjab is monitoring and evaluating these reforms programs, consolidating and internalizing the actions, lessons and outcome before further expansion of other canal commands. The ongoing Punjab Barrages Improvement Phase-II Project has a component to monitor and analyze the reform program and help Punjab in improving the reform program based on the field information and progress in achieving the target indicators.
16. Irrigation Practices and use of Water for Irrigation. As explained above, water from the rivers is diverted into the main canals, then into the branch canals (both are primary level diversion canals), distributaries and minor (secondary level canals), and then into the watercourses. The shortage of water is distributed by rotating the flows to the distributaries and minors. However, when distribuary/minor is supplied with water, all watercourses in that distributary draw water through a regulating structure on each watercourse designed to share available water in the distributary canal equally among all watercourses. Watercourse is a community irrigation system on which water is shared by all users by allocating full discharge of the watercourse for a specific amount of time to one user, following a weekly rotation system called “warabandi”. From community watercourse to the field there is a complex system of channels and ditches which delivers water to the fields. See Figure 2.3 of Annex 2 that shows the complexity of the layout of the channels in the watercourse command. At the field level, flooding is the most common irrigation method practiced by farmers and it is quite wasteful in water and nutrients, and results in uneven growth of crop and causes salinity problems, particularly if the field is not leveled.
17. Low Delivery Efficiency in Community Watercourses and Farm Channels. It is estimated that about 40% of the water is lost in these community watercourse (W/C) commands, temporary channels and farm ditches. This is due to the combined effect of wetting the dry channels filing up of the channel to send water to the other end (much of channel storage is not retrieved), leakage, wastage, standing water in channels and seepage etc. The main sources of these losses are seepage, spillage, and side leakage from the watercourses due to: (a) irregular profile and zigzag alignment of banks and weak sections of the channels; (b) variable cross section of water channels, resulting in stagnant water in channels; (c) silt deposition, causing restrictions in flows, and overtopping; (d) trees, shrubs, and vegetation growing in watercourses; (e) damage caused by rodents and farm animals; and (f) frequent bank cutting and plugging of channel banks for water abstraction. Due to the “warabandi” system where water moves from head to the tail in seven days and then back again, there is constantly a wet dry cycle between the head to tail and that does not allow enough time for the seepage from such channels to establish constant flow to enable contribution to the groundwater. Thus much of the losses in the watercourse command are lost to evaporation or excessive weed growth.
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18. Low Field Efficiency in Application to the Field and Crops. Flood irrigation is a commonly used method by farmers of Pakistan which is inherently inefficient. Transpiration of water from the roots through the leaves is the only water beneficially used by plants for growth, flowering and fruiting. Water is applied to saturate the soil in the root zone from which water is drawn into the plants by osmosis on a continuous basis. In addition to the osmosis, water also evaporates from the soil at a rate which is almost equal to the water transpired through the plants. Such evaporation is actually lost and it is substantial when the distance between the plants (such as cotton, and orchard) is significant and large surface of soil is exposed to evaporation.
19. There are significant application losses when soil is saturated by flood irrigation. About 20-25% of irrigation water is lost during the application due to uneven fields and poorly designed farms. This leads to excessive application to low-lying areas of the field and under-irrigation of higher spots. Over- irrigation leaches soluble nutrients from the crop root zone, makes the soil less productive, and degrades groundwater quality. On the other hand, under-irrigation of elevated parts of the fields results in accumulation of salts in such patches besides causing water stress and de-osmosis due to applied fertilizer. The efficiency of irrigation methods ranges from 40-70 percent, while drip and sprinkler irrigation systems are the most efficient with efficiency of up to 95 percent, as indicated in Figure 2.2 in Annex 2.
20. High Efficiency Irrigation Systems (HEIS) technologies have been developed and successfully adopted in various countries of the world, including USA, Australia, China, India etc. The major constraint in the adoption of these technologies is their high installation costs. The issue has however been resolved through research and development of low cost efficient irrigation technologies, particularly in China, where cost effective systems have been developed for orchards and all field crops/vegetables. Experience of other countries and recent studies suggest that introduction of HEIS is highly effective in conserving water resources.
21. Water Conservation and Reducing Losses is Crucial. Pakistan has been expanding the surface water supplies to the IBWS over time by capturing more water from the rivers. Prior to the construction of the Mangla dam in 1967, the annual surface water diversions to the Indus Basin Canals were about 67 million acre feet (MAF). These increased to about 85 MAF prior to the commissioning of the Tarbela Dam in 1976 with storage at Mangla and connecting water surplus western rivers (Indus, Jehlum and Chenab) to the water scarce eastern rivers (actually transferred to India after the Indus Treaty of 1960). Annual canal diversion post Tarbela reached up to 105 MAF. In the last decade they have declined to 94.5 MAF (see Annex 2, Table 2.1). This is due to reduced storage capacity in the reservoirs because of sedimentation, diversions close to full potential supplies of the rivers, and a decade of relatively low flows. A major deficit of about 8.6 MAF occurs in the Rabi season. Increasing this capacity is only possible with heavy investment in storage dams on the Indus River, many of which are very controversial. Also, some believe that apart from a few years of extraordinary floods, the rivers do not have surplus water to store after meeting the ecological requirements of the delta region and coastal zone. Even if a dam is started now (such as the Bhasha dam with a live storage capacity of about 6.5 MAF) with sedimentation continuing, it is questionable if it would be possible to increase the average canal diversions to the level of post-Tarbela average. The other source of water in Pakistan that has been tapped is groundwater which is recharged by the surface water system. Thus less canal diversions mean less groundwater availability. Since the 1980s, the groundwater aquifers have supplied an increasing amount of water for irrigation in areas underlain by fresh groundwater. In Punjab, about half the irrigation water come from the groundwater wells. This resource is now reaching its limit and further withdrawals are not possible without serious mining and extraordinary cost of pumping.
22. In the future, substantial quantities of water will only come from cutting down losses, particularly in the watercourse command and fields, where losses are highest, and which do not contribute to
5 groundwater recharge. The quantity of water that could become available with about a 10 percentage point reduction in losses in the watercourse command is more than two dams on the Indus River. The project is designed to capture this potential in addition to making use of water more productively at the farm level by crop diversification and better irrigation agronomic practices. With the continued use of flood irrigation, Pakistan will not have enough water to meet future demands. With HEIS, which can shift efficiency from 40% to 95%, there will be adequate water to meet the demands in the future.
23. The project addresses the issues of inefficiency in the watercourse command area (system owned and managed by the community) and farmer‟s fields and not in the Government owned canal system like the distributary and the main canals. The Project supports the goal of reducing the water demand by introducing interventions that will reduce the amount of water lost in delivery (such as watercourse improvement) and in water applications to the field such as precision land levelling and HEIS technology, which targets the crop root zone and is inherently more efficient in water and nutrients application. These technologies also bring about changes in cropping patterns to high value crops such as vegetables, orchards and row crops like cotton. These technologies form the basis for productivity enhancement in agriculture. It is recognized that to fully realize the potential agriculture productivity enhancement, other interventions like seed, fertilizer, agriculture extension service and cropping technologies are also needed. Such issues are to be addressed in other operations under preparation in the agriculture sector. In addition, the issues of government-owned distributary and main canals are being addressed under other ongoing operations supported by the Bank and other donors and are being monitored under the ongoing Bank supported Punjab Barrages Improvement Phase-II Project.
24. Climate Change Considerations. The impacts of global climate change, including changes in glacial melt and the characteristics of floods and droughts on the IBWS needs to be carefully considered. Climate change studies and its impact on the upper catchment of the Indus River are included in the ongoing Water Sector Capacity Building Project (WCAP) and in the proposed Tarbela 4th Extension Hydropower Project. Even though it is difficult to quantify the possible impact, water availability would be uncertain in the future. Rough estimates indicate that water runoff will decrease in the long run, but it may be higher in the short run due to the melting of the glaciers. In the absence of glaciers, massive storage in the Indus catchment would be lost, affecting available supplies. At the minimum, smooth runoff to the rivers and minimal year-to-year variations in flow volume would be replaced by fluctuating flows with rainfall runoff. Efficient use of available water resources is the key to meeting the uncertain water supplies in future under changing climate. The Project would be a great contribution towards that goal, both in reducing water demand and helping to produce more crops per drop and also creating a system which can convert the 7 days turn system into and regular supply system.
Rationale for the Bank Involvement
25. The Bank has a long history of partnership and collaboration with Pakistan in the water sector. As a key partner and principal donor, it has provided support to several main interventions in the development of the IBWS, including (i) facilitating the Indus Water Treaty negotiations between Pakistan and India; (ii) establishing the Indus Basin Development Fund that supported the construction of Mangla and Tarbela dams and several inter-river link canals and barrages; (iii) formulation of the Salinity Control and Reclamation Program (SCARP-1968); (iv) formulating the Revised Action Plan for Irrigated Agriculture in 1979; (v) assisting in the development of the Water Sector Investment Planning Study (WSIPS) in 1991; and (vi) providing guidance on the Drainage Sector Environmental Assessment in 1993 which contributed to the development of the Ninth Five Year Plan. The Bank also developed the Irrigation and Drainage Strategy of 1994 (grey cover Pakistan: Irrigation and Drainage – Issues and Options 11884-PAK) and the Pakistan Water CAS (Pakistan‟s Water Economy Running Dry, 2005 34081-PK) that led to a major shift in the I&D sector of Pakistan and the implementation of the current institutional reform agenda. The Bank has supported several On Farm Water Management Projects and has helped to introduce innovation in these operations in all provinces of Pakistan. The Government
6 recognizes the Bank‟s continuous and positive role in the I&D sector, and particularly sees a natural role for the Bank in this project. The Bank‟s involvement is also crucial for ensuring proper implementation of the Project innovation and introduction of new technologies. In addition to its financing, the Government is seeking support from the World Bank for its knowledge, expertise and experience in the sector. Thus, the Bank‟s involvement is crucial for achieving the project objectives.
C. Higher level objectives to which the project contributes
26. The proposed project is fully in line with the FY10-13 Country Partnership Strategy (CPS). The CPS is organized around four pillars to improve: (i) economic governance; (ii) human development and social protection; (iii) infrastructure to support growth; and (iv) security and reduce the risk of conflict. This project is guided by the strategic principles of the third pillar by engaging in a program that would strengthen irrigation infrastructure and agricultural competitiveness. By supporting Pakistan‟s water use efficiency and encouraging technology that would promote crop diversification and increase productivity, the proposed project supports Bank‟s particular emphasis on improving the efficiency of irrigation systems. It would help support efficient management of the scarce water resources of the country and help in adaptation under the climate change scenarios of future.
II. Project Development Objectives (PDOs)
A. PDOs
27. The project‟s main objective is to improve productivity of water use in irrigated agriculture. This will be achieved through improved physical delivery efficiency and irrigation practices, crop diversification and effective application of inputs that will translate into greater agricultural output per unit of water used. The project‟s objectives would contribute to increased agricultural production, employment and incomes, higher living standards and positive environmental outcomes.
1. Project Beneficiaries
28. The direct beneficiaries of Project would be about 580,000 farm families or about 4.0 million people all over Punjab. About 17,500 families would be direct beneficiaries of the HEIS systems, about 90,000 families of laser leveling system, and about 475,000 families from the watercourse improvement program. A very large population would be indirect beneficiaries of the Project, about 13 million additional person days of employment as farm labor for agricultural operations. Also employment would be generated through installation of the systems; and private companies would supply materials, help improve watercourses, and gain additional business from the incremental agriculture production. More women farmers are likely to opt for the HEIS as it does not require night irrigation as well as other field work generally not considered culturally appropriate for women e.g., diversion of water from channels, tilling etc. The HEIS can easily be operated by one person and require just a few hours of water during the day. In contrast, water supply according to the warabandi goes over 24 hour rotation and about half of the shareholders get water at night. With HEIS the water would be delivered to the ponds and used for a week. Importantly, it is delivered during the day in the early morning and in the evening when heat and evaporation is low. The number of women farmers benefiting from the project would be monitored in particular by the monitoring and evaluation consultants and reported in the monitoring framework and project impact assessment.
29. Farm size distribution shows (Agriculture Census of 2000 see Annex 2) that small farms are dominant in Punjab. This is particularly true in the case of Northeastern Punjab. Over 86% of farms in Punjab are less than 5 ha, (72% are less than 3 ha, 56% less than 2 ha, 34 are less than 1 ha and 18% are less than 0.5 ha). Efforts will be made to target the small farmers in providing assistance and smaller
7 units of HEIS will be encouraged. In order to have economies of scale, where possible, farmers will be allowed to share the ponds and head units (pumping units and fertilizer tank etc.).
2. PDO Level Results Indicators
30. Performance towards achieving the development objectives will be measured through the following key performance indicators:
Reduction in water losses in the project area; Increased agriculture output per unit of water used;
31. The above two are the key indicators which would be monitored for results framework, and to measure the impact and outcome of the project. M&E studies funded under the project would also gather data on:
Increase in crop yields per acre of land and per acre foot of water; Change in cropping intensity due to better use of water; and Crop diversification, increase in area under vegetables, orchards, floriculture and other high value crops.
III. Project Description
32. The project interventions are installation of HEISs and laser land leveling, improvement of watercourses, and assistance in crop diversification. All of these have short gestation period and high return, and are therefore very potent and in strong demand by the farmers. These interventions will leverage substantial investments from the beneficiaries and have only moderate risks due to strong participation by the farmers in their designs and implementation, thus mitigating the governance risks.
A. Project components
33. The Project consists of the following components (see Annex 2 for more details).
34. Component A: Installation of High Efficiency Irrigation Systems (US$234 million, of which IDA US$120.9 million). This component would consist of the following two sub-components:
35. Component A1: Installation High Efficiency Irrigation Systems (US$177.5 million of which IDA US$113 Million). The component would support the installation of drip, trickle, bubbler, or sprinkler irrigation systems at the field level for high value, horticulture, vegetables, floriculture and other high value crops. The irrigation systems would be installed by a service provider on a shared cost basis. The farmers would provide 40% of the cost of works, and the Project would provide the remaining 60% of the cost of works and the administrative and management costs. Such a level of subsidy is justified given that this is a new technology. The drip units would include a pumping unit, fertilizer tank, delivery fittings, filters, underground main pipeline, and delivery lines, etc. High efficiency irrigation systems would be installed over 120,000 acres. Indicative targets are about, 5,400 units of 3 acres and 5 acres each, 4,800 units of 10 acres and 1,920 units of 15 acres. Smaller units would be encouraged where possible for a wider spread. The head units and ponds would be shared particularly in case of smaller units. Most of the units would be drip, over an area of about 100,000 acres and other systems may cover about an area of 20,000 acres. These systems would promote crop diversification. Controlled application of water and non-water inputs would enhance crop productivity. A technical assistance package would be provided by the vendors to the farmers to promote adaptation of the new technology. In addition, technical assistance and training would be provided to the users through component C of this project. Successful installation and application of these irrigation systems would encourage the private sector to
8 adopt this high efficiency irrigation technology, as it happened in case of groundwater development, which was initiated by the government but brought to large scale development by the private sector. The sites for installation of HEIS and service providers would be selected based the criteria provided in Annex 2 in more detail. The criteria would be revised and updated every six months in light of the implantation experience and monitoring results in order to ensure that the project objectives are met in accordance with the results indicators.
36. Component A2: Strengthening of Precision Land Leveling Services in Private Sector (US$56.5 million of which IDA US$7.9 million). Un-leveled fields cause wastage of water, resulting in low irrigation application efficiency and much lower yields. Laser land leveling saves up to 30% of irrigation water, results in uniform seed germination, and increases fertilizer uptake efficiency which enhances crop yields of up to 20%. Under this component the laser leveling equipment would be provided to the service providers on shared cost basis. The service providers would carry out laser leveling service for interested farmers on charge back basis as a business. A capacity for laser land leveling of about two million acres annually would be developed for which about 3,000 laser leveling units would be provided. About 50% of the cost of the of laser land leveling equipment would be provided by the service provider who also owns a tractor capable of operating the LASER unit. The service providers would be selected based on the criteria provided in Annex 2 in more detail. The criteria would be revised and updated every six months in light of implantation experience and monitoring results in order to ensure that project objectives are met in accordance with the results indicators.
37. Component B: Upgrading of Community Irrigation Systems (US$160 Million of which IDA US$99.5 million). The component would consist of three sub-components:
38. Component B1: Watercourse Improvements in Canal Irrigated Areas (US$126.4 million of which IDA US$80.3 million). The component would assist Government efforts to improve W/Cs, which is the tertiary level water distribution system where water losses are highest. Of the 140,000 total W/Cs in irrigated areas of Pakistan, around 95,000 have been improved under various donor-supported and local funded programs. Punjab has about 58,000 W/Cs in irrigated areas, out of which about 41,000 have been improved, leaving a remaining 17,000 in need of improvement.
39. Concrete parabolic channel sections up to 8 feet (or U sections namely canalets) would be placed on leveled compacted earth with water tight joints, thus improving existing technology of brick lining. Where suitable and where farmers prefer, watercourses would be lined using traditional bricks with plaster. Water turnout structures would be replaced with properly designed concrete structures (pucca nakas). The earthen sections of the watercourse would be improved using clean compacted soil. Efforts would be made to have private contractors/service providers construct the canalets and then be installed by the Water Users Associations (WUAs). The project would provide technical assistance for layout and construction supervision to the WUAs. The length of the W/Cs, installation of diversion structures, as well as other improvements to earthen sections of the W/Cs would be in accordance with the current standard practice and optimized for each W/C. WUAs/farmers would share the cost through providing labor, and the Government would provide canalets and other material. Approximately 5,500 W/Cs would be improved. In canal commanded areas preference would be given to the areas where distributary level farmers‟ organizations have been formed.
40. Component B2: Completion of Partially Improved Watercourses (US$ 21.0 million of which IDA US$12.1 million). Many W/Cs in Punjab were only partially (barely) improved in the early part of the program in the late 1970s. In order to fully realize the benefits, the improvement works on these W/Cs would have to be completed. The project would cover completion of about 1,500 W/Cs which have been partially improved in the past. Farmers would contribute skilled and unskilled labor with the Project funding the remaining cost.
9 41. Component B3: Improvement of Community Irrigation Systems in the Non-canal Commanded Areas (US$12.5 million of which IDA US$7.0 million). This component would cover W/C improvements in the rain fed (Barani) areas, i.e. areas which are not in the command of barrage controlled irrigation but have localized irrigation schemes. These are generally small W/Cs and the cost of improvement is less than in other areas. The project would cover about 2,000 W/Cs in Barani areas. Project would provide material costing upto US$2,950 for each scheme. Farmers would contribute skilled and unskilled labor and material cost above US$2,950. The cost sharing arrangement results in about 40% by the farmers and about 60% by the Project.
42. Component C: Improved Agriculture Technology/Practices and Monitoring and Evaluation (US$9.0 million of which IDA is US$9.0 million). This component would consist of the following two sub-components:
43. Component C1: Improved Agriculture Technology and Practices (US$7.0 million). The purpose of this component would be to enhance productivity of the irrigated lands. The activities under this component would include: (i) effective research, extension, and agricultural information services; (ii) participatory training for farmers, involving training of specific target groups in various agro-technical fields, farm management and irrigation agronomy; (iii) demonstration and assistance in improved and modern technologies and methods to increase agricultural production through better agronomic practices; and (iv) the establishment of a Farmers Information Service Desk linked with internet and cell phone services etc. The Water Management Training Institute (WMTI), Lahore will provide training, research and extension support for adoption of modern irrigation water management and conservation techniques and technologies. Demonstration of new technologies is expected to result in crop diversification, and crop husbandry, horticulture, vegetables and floriculture, improved irrigation and drainage practices and better water management to improve water use efficiencies and reduce environmental degradation. This would include interventions to optimize field size, introduce land leveling and furrow irrigation, irrigation using drip, bubbler and sprinkler irrigation system, gated pipes and ways to adapt these technologies etc. and for moisture measurement and irrigation scheduling. For this purpose, demonstration plots would be developed in various parts of the project area to complement the direct assistance and to promote new technologies. These activities would be complemented by a Farmers Information Services Desk in project areas to provide relevant information to farmers through different means (pamphlets, videos, radio, TV, weekly papers, cell phones etc.) and to advise them on making their farms more productive and sensitive to the market demands.
44. For implementation of this component, the Project would recruit Technical Assistance and Training Consultants (TATCs) with experience in HEIS design, implementation and operation, irrigation scheduling, crop technologies and irrigation agronomy particularly for the high value crops, horticulture, vegetables, floriculture and other row crops etc, These consultants should have practical experience in training of installation of HEIS etc. For this purpose twining arrangements would be made with international institutions with experience in this area.
45. Component C2: Monitoring and Evaluation of Project Impact (US$2.0 million). This component would cover Monitoring and Evaluation (M&E) of the project‟s impacts. This would be done primarily by using a sampling technique, as well as by conducting case studies, Geographic Information System (GIS), and satellite data. The M&E activities would provide continuous feedback on the project‟s performance and impact of its various components to the Government of Punjab (GoPunjab), the Project Policy Committee, (PPC) Project Steering Committee (PSC), and the implementing agency, so that corrective actions could be undertaken in a timely manner. The M&E activities are likely to cover, but not limited to: (i) the impact of the irrigation improvements on water use efficiency, groundwater levels and quality, and soil salinity; on-farm water use; cropping patterns and yields; and livestock population, health and production; (ii) socio-economic impacts and the impact on the level of employment, livelihood and household incomes in the project area; estimation of the project‟s overall
10 benefits and economic rate of returns etc. M&E would be carried out using latest technology such as satellite imagery and GIS systems, where necessary.
46. Implementation of M&E (component C2) would be carried out by independent consultants called Monitoring and Evaluation Consultants (M&ECs). M&ECs would thus be responsible for: (a) implementation progress monitoring, including spot checking of works and quality of construction, targeting of works as compared to agreed criteria, particularly small farmers and women farmers‟ beneficiaries, planned and actual cost of works and various activities, carry out technical audits of the works completed and certified under the Project; (b) M&E of project impact; and (c) environment and social impact and implementation of the agreed program. The DGAWM would also have dedicated staff working in M&E activities and act as counterparts for these consultants.
47. Component D: Project Management, Supervision, Technical Assistance, Training and Strategic Studies (US$20.5 million of which IDA is US$20.5 million). This component would cover the cost of (i) project implementation and management, including mobilization of farmers, surveys, engineering and designs, implementation supervision and assistance to the farmers and suppliers, and ensuring quality of the works carried out by farmers and suppliers/vendors etc; (ii) project supervision and spot checks, covering quality and quantity aspects, by third party consultants based on which the funds would be disbursed; (iii) strategic studies and pilot projects that would be identified during project implementation, and technical assistance, training, in particular training the project staff (i.e. training of the trainers) in crop diversification, shift to horticulture, vegetable and floriculture crops, operation and maintenance of the irrigation systems and the units installed under the project etc.; and (iv) activities identified in the Operational Risk Assessment Framework (ORAF) and governance and accountability measures.
B. Project Financing
1. Lending Instrument: The lending instrument is Specific Investment Loan (SIL).
2. Project Cost and Financing
48. Project Cost. The project cost is about US$423.5 million equivalent. Of this, Government/IDA financing would be about US$250 million and farmers‟ contributions would come to about US$173.5 million (about 41%). Details of the costs by component and financing arrangements are given in Table 1.
49. This will be an output-based operation. Unit costs will be estimated for W/C improvement works, laser leveling units, and per acre cost of installation of drip/high efficiency irrigation systems. Disbursement will be based on the estimated/agreed unit costs and outputs will be monitored by independent consultants against a baseline as provided in Annex 2. The unit rates will be reviewed every six months, compared with the actual expenditures. Adjustments to the rates will be made accordingly. The Project will explore using high technology systems, satellites and GIS system to monitor the implementation of various units, in combination with ground inspections.
11 Table 1: Tentative Financing Plan (US$ Millions) Units Amount Total Farmers IDA US$ M US$ M US$ M A. Installation of High Efficient Irrigation Systems A1. Drip and high efficiency Systems Acres 120,000 177.5 64.5 113.0 A2. Laser Leveling Equipment Units 3,000 56.5 48.5 7.9 Sub-total A 234.0 113.0 120.9 B. Watercourse Improvement Program B1. Imporvement of Watercourse Number 5,500 126.4 46.1 80.3 B2. Imporvement of W/C partially imp, Number 1,500 21.0 8.9 12.1 B3. Improvement of W/C Barani Areas Number 2,000 12.5 5.5 7.0 Sub-total B 9,000 160.0 60.5 99.5 C. Improved Agriculture Technology/Practies and Monitoring and Evaluation C1. Introduction of Improved Agricultural Practices 7.0 7.0 C2. M&E Project Management Support 2.0 2.0 Sub-total C 9.0 9.0 D. Project Management Support, Supervision Teechnical Assistance Traning D1. Project Implemenmtation and Management 10.0 10.0 D2. Project Supervision and Third Party Validation 9.5 9.5 D3. Strattegic Studies, TA and training etc. 1.0 1.0 Sub-total D 20.5 20.5 Total 423.5 173.5 250.0 Farmers Share (%) 41% Taxes and duties (US$M) 50.81
C. Lessons Learned and Reflected in the Project Design
50. The project design draws on lessons learned from previous projects in Pakistan and similar projects in different parts of the country. Bank-wide experience has shown that in arid countries, irrigation systems are crucial for development, particularly in rural areas which largely depend on the irrigated agriculture. Also, a large part of the world food production comes from irrigated agriculture; thus efficient irrigation systems are fundamental for the success of irrigated agriculture. This is particularly true in the case of Pakistan which depends heavily on the Indus Basin Water/Irrigation System for almost all of its water resources and IBWS serves as the food machine for the country.
51. The Project is designed taking into account the important lessons learned from the Bank‟s involvement in the irrigation and drainage sector in Pakistan and other countries such as Mexico, Argentina, the Dominican Republic, Chile, Philippines, Turkey and Central Asian countries (Uzbekistan, Kazakhstan etc.). Some of the major lessons incorporated in the project design are:
(i) Beneficiary participation is made central to the project. The project works are demand driven. Prior to any improvement works, users‟ consultations are carried out and they are given training in the formation of a WUAs, registered under the WUA Act of 1981. The WUA decides on the scope and nature of improvement and selection of material, for example brick or concrete canalets. They procure the material and provide skilled and unskilled labor etc.; (ii) Laser levelers are provided to the service providers instead of having the laser leveling done by the Government agency, which was the case in previous operations. This arrangement is much more efficient and is done at a lower cost as only laser levelers are purchased and the service providers use their own tractors. This is also recommended over providing equipment to the farmers who lack
12 expertise. Utilization and coverage by each equipment would also be higher as compared to operations by the Government; (iii) HEIS is installed by the service providers instead of the Government (which has to follow a complex and cumbersome procurement process with leakages) or the farmers themselves who are not yet familiar with the technology; (iv) Providing a range of products instead of just W/C improvements i.e. HEIS, laser levelers, W/C improvement and combined with irrigation agronomy and agriculture technology package etc.; (v) The agriculture technology component is included in the project to provide technical assistance and training to service providers, farmers and other staff who can teach farmers; such components were not included in past operations; (vi) Output based operation with disbursements to be made on unit rates instead of traditional procurement and contracting of works and materials. Independent M&E consultants carrying out technical audits (in addition to certification of works and delivery of goods) to ensure quality and targeting; (vii) Full component for M&E of project impact is included in the project, which was missing in past operations. (viii) Speed of project preparation, appraisal and implementation are critical to project success; and (ix) Use of international consultants and independent experts to oversee the technical issues and suggest solutions as needed.
D. Alternatives considered and reasons for rejection
52. Pakistan will be facing severe water shortage in the future. More than 95% of the country‟s water is used for agriculture. As explained above, water losses are very high in the agriculture sector. With capture and availability of additional water resources reaching its limit, interventions to conserve water, improve technology, and enhance water productivity, are urgently needed. During the design phase of the project, several alternatives were considered. These include:
53. Alternative A: Single Intervention or a Combination. Instead of a single intervention, several interventions that have major impact on reducing water losses and improving water productivity were considered to be the best alternative. These include full coverage of community infrastructure i.e. W/C command, laser leveling, and HEIS - all of which promotes crop diversification, reduces water losses, and improves water productivity. A menu of options is offered to the farmers, who can then decide based on their needs, making it an extremely potent combination to achieve the objective of enhancing the water productivity.
54. Alternative B: Areal Coverage, Target Area or Province wide Operation. Instead of targeting a specific and limited area, the alternative of a province-wide operation is selected. This would attract progressive farmers to start new technologies, which will have demonstrative effect and develop demand for the technology and services. This would make these technologies cheaper in the long-term. In some areas, the uptake of this technology would be faster than others and thus the approach of province wide operation instead of target area is advantageous.
55. Alternative C: Implementation of Works by Government, Farmers or Service Providers. Considering these alternatives, suitable arrangements of implementation of various interventions have been selected. Government would not implement any works, but would rather provide technical assistance, and carry out supervision and quality control. Watercourse works would be carried out by the WUAs, HEIS and laser leveling would be done by the service providers as explained in the lessons learned above. These alternatives are selected based on the experience gained in earlier operations.
13 IV. Implementation
A. Institutional and Implementation Arrangements
56. The Director General Agriculture (Water Management) (DGAWM) will be responsible for implementation of the Project and act as the Project Director of the Project. The Directorate of On Farm Water Management (OFWM) has demonstrated that it has the capacity to implement such programs in Punjab. It has implemented several World Bank, ADB and Japan International Cooperation Agency (JICA) financed projects and national programs for W/C improvements and HEIS. The detailed implementation are described below and presented in Annex 3 and shown in Chart-I.
57. DGAWM reports to the Secretary Agriculture of the GoPunjab. DGAWM, as the Project Director, will be responsible for all aspects of the project, including technical, implementation, procurement, financial management, and overseeing the technical assistance and training program, etc. The DGAWM will be supported by staff at headquarters and its team will be strengthened, particularly by adding a highly qualified Deputy Director Finance and a Procurement Specialist.
58. The OFWM function, that is water management below “mogha” (outlet from the distributary canal and command area of community W/C that is managed by farmers), has been devolved to District Governments under the Devolution Plan of 2001. Under this arrangement, an office of the District Officer (OFWM) has been setup in all 36 districts of the Province for supervision of water management activities. The Tehsil is the lowest tier of the administration where the office of Deputy District Officer (DDO, OFWM) carries out the execution of works through field staff comprising of: (i) Deputy District Officer and one Water Management Officer (WMO); (ii) two Water Management Supervisors (WMSs); and support staff. Out of 133 Tehsils in the province, offices of DDO (OFWM) have been established at 101 Tehsil Headquarters of which 83 are in irrigated area and 18 are in Barani (un-irrigated areas). The remaining may be established under the Project as needed.
59. Regional Project Coordination Unit (RPCU). Three Regional Project Coordination Units (RPCUs) have been established in Lahore, Multan and Rawalpindi to help coordinate and supervise the project activities at the district and Tehsil level. The RPCU will be headed by one Regional Project Director (RPD), supported by one Deputy Director (Technical) and one Assistant Director (Technical), Financial Management and support staff.
60. District Office (OFWM) will be responsible for supervision, coordination and internal monitoring at the district level. Its capacity will be strengthened by provision of incremental staff for establishing HEIS Field Teams, comprising of two WMOs, one Computer Operator, Assistant Director (Tech), one Vehicle Driver, and two surveyors and Rodmen. The incremental staff shall be recruited on a contract basis for the duration of the Project. It has been proposed to establish offices of DDO (OFWM) in 25 uncovered Tehsils under the proposed project. In addition, incremental staff comprising of WMSs and Rodmen will be provided to DDOs (OFWM) offices as per work load/targets in various Tehsils.
61. Project Supervision and Coordination. Several committees have been established to ensure provincial oversight and coordination in implementation at various levels:
(i) Project Policy Committee. The Project Policy Committee (PPC) would provide planning and strategic guidance for project implementation as well as facilitate inter- agency coordination at the highest level. The PPC would be chaired by the Chairman, Planning and Development Board, Punjab with Secretaries of Agriculture, Irrigation and
14 Power (IPD), Local Government (LG) and Finance Department (FD) as its members. DGAWM will be the Member-Secretary of the PPC.
(ii) Project Steering Committee. The Project Steering Committee (PSC) would be chaired by Secretary Agriculture, Government of Punjab with DGAWM; Chief (Agriculture) Planning and Development Department; Additional Secretary (Expenditure), Finance Department; and Additional Secretary (Tech), Irrigation & Power Department as its members. DGAWM would act as Secretary of the PSC.
(iii) Project Implementation Committee. The Project Implementation Committee (PIC) would be chaired by DGAWM with Director (Headquarters), Director (Training), Deputy Project Director (HQ), Regional Project Directors, Deputy Directors (HQ) District Officers (OFWM), and Team Leader Project Implementation Supervision Consultants (PISCs), M&ECs and Technical Assistance and Training Consultants (TATCs) as its members. The Director (Headquarters) would act as the Secretary of the committee. (iv) District Implementation Committee. A District Implementation Committee (DIC) will be constituted in each district to implement the project at the district level. It will comprise of (i) District Coordination Officer chairing the DIC; and (ii) Executive District Officer (Finance & Planning), Executive District Officer (Agriculture), Regional Project Director, Representative of the Revenue Department as its members. District Officer (OFWM) would serve as the Member-Secretary. (v) District Rate Committee. The District Rate Committee (DRC) will be constituted under the DIC to decide the rates of construction materials for improvement of w/c and will consist of Executive District Officer (Agriculture) as Chairman, Field Engineer (Consultant), District Officer (Buildings), as members and District Officer (OFWM) would be the Secretary. The DRC will periodically review rates of various construction materials, fix price for different materials for clusters on geographical basis. 62. Project Implementation Supervision Consultants. The Project Implementation Supervision Consultants (PISCs) will be selected through an international selection process under Component D2 of the Project. They will report to DG OFWM and check the implementation program, quality of works, delivery of works, and certify the quantities of work carried out and the payments. They will also help the DG OFWM in project planning and management, quarterly progress reporting, procurement planning, financial management and overall project management.
63. Monitoring and Evaluation, and Technical Assistance and Training Consultants. These M&ECs, using resources allocated for component C2 of the project, will help in: (a) monitoring of the physical progress; (b) M&E of the project impact; and (c) supervision of the environment and social issues, framework and environmental and social management plans. The TATCs will provide technical assistance and training to service providers for HEIS and precision land leveling, to individual farmers and WUAs as envisaged under component C1 of the project and described in more detail above.
B. Results Monitoring and Evaluation
64. The DGAWM will submit quarterly reports in an appropriate format to the PPC, PSC, and the Bank no later than 45 days after the end of each quarter. The DGAWM will be responsible for preparation of the quarterly report that will cover the progress and expected completion dates for civil works and equipment supply contracts, progress on institutional components, implementation of SAP and EMP, training and studies, and activities of the PISCs, M&ECs and TATCs etc. The reports will cover financial and procurement information, including: (a) comparison of actual physical and financial outputs with forecasts, and updated six-months project forecasts; (b) project financial statements, including sources and application of funds, expenditures by category statement, and special accounts reconciliation statement; (c) a procurement management report, showing status and contract commitments; (d) progress
15 in completion of works, distribution of works among various kind of users as compared with the targets; and (e) issues and alternative solutions etc.
65. The DGAWM will also prepare annual reports by no later than September 30 of each year of project implementation. The report will cover: (a) the progress of each component, implementation of key features of the social and environmental management plan, key performance indicators, operation of project facilities, and financial statements; and (b) the Annual Work Plan for implementation, annual funds required for implementation with breakdown by each co-financier, an updated disbursement profile, planned actions for mitigating negative effects during construction, and target indicators for the coming fiscal year. In addition to the semi-annual reviews by the Bank, detailed annual reviews will be undertaken in October each year. A mid-term review of the Project will be undertaken by October 31, 2016. An Implementation Completion Report (ICR) will be submitted to the Bank no later than six months after the closing date.
66. The M&ECs shall be recruited for: (a) M&E of the implementation progress, spot checking and technical audits of works being implemented, achieve project targeting etc; (b) project impact, including the implementation and monitoring of the environment and social plans. TATCs shall be recruited for technical assistance and training of the farmers, service providers and establishment of demonstration plots, farmers information desk etc. The M&E studies will evaluate the success in project implementation in terms of meeting the project‟s objectives, and assess its physical, hydrological, environmental, social, and economic impacts. The M&E activities will provide continuous feedback to the PPC, PSC and the Bank on the project‟s performance, and on mitigation of negative impact under various components, so that corrective actions can be undertaken in a timely manner if necessary. Changes to the Project, if any, will be reflected in the implementation review aide memoires and/or communicated through an exchange of letters between the Bank and the Government. The Bank Team will place a Staff and/or a consultant in the country who will visit the project site on a regular basis, particularly in the first two years of the project, to monitor the project planning, implementation program for construction activities, communication strategy, etc.
C. Sustainability
67. Irrigation is highly profitable in Pakistan so there are no inherent sustainability issues. However, despite the surpluses generated to the economy, the sector is short of funds for proper O&M of the system due to several factors mentioned in Section I. The O&M issues are related to government-owned upper tier of the irrigation system - from barrages to the head of W/Cs. Below the W/Cs, the system is maintained by farmers themselves and it is comparatively well maintained. Aspects of O&M of the Government owned system is being addressed through the irrigation sector reform program by divestiture of the distributary canal system to formally organized FOs who would be responsible for management of that part of the system. They are also being federated to participate in management and O&M of the main and branch canal system. The Barrages will remain within Government control as they are multi-sectoral and strategic assets. The Punjab Barrages II Project would support a program for improvements in (a) transparency in water allocation; (b) accounting and monitoring; and (c) monitoring of progress in transfer and progressively enhancing the role of FOs in irrigation management in Punjab.
68. The project works are designed to enhance the sustainability of the system. It will help reduce the demand for water resources, thus enhance the availability of water. It will also improve the application of chemicals and improve uptake by crops, which reduces water-logging, salinity, drawdown of the groundwater aquifer, and land and water degradation. The O&M costs of the works improved under the project will be reduced and become easier, thus improving the sustainability of the works and this would help in improving overall sustainability of irrigation system. The expectation is that the project will provide the necessary impetus for private sector and farmers to undertake installation of HEIS and laser leveling. That is why these works are being carried out through service providers and this arrangement
16 will develop capability to carry out such works in the private sector. The service providers will do appropriate work (checked by the PISCs and M&ECs) and provide after care in order to develop further business in the same area. The Project will have transformational effect in improving the sustainability of irrigated agriculture in Pakistan and improving its long-term productivity.
V. Critical risks and possible controversial aspects (Refer to Annex 4)
69. A detailed Operational Risk Assessment Framework (ORAF) has been prepared (Annex 4). The overall implementation risk of the operation is considered to be Moderate. The following paragraphs summarize key risks that support this evaluation.
70. Implementation capacity: The sheer scale of the operation, spanning the entire province and dealing with millions of farmers and water users, raise concerns regarding technical and management capacity to carry out the program. However, the implementing agency, DGAWM, has years of experience working with farmers and water users associations, implementing projects of similar nature. Its capacity would be further strengthened through the recruitment of PISCs and TATCs financed under components C1 and D1 respectively. Further, under component C2, an independent team of consultants (M&ECs) would monitor the project performance, users‟ satisfaction and any issues regarding implementation, and will provide feedback to the implementing agencies. Should any issues emerge, they will be dealt with at the management and PSC level, which would be chaired by the highest authority in the province.
71. Governance and accountability: Complex implementation arrangements, involving multiple committees, several layers of government, and spanning across 36 districts in the province, could pose governance challenges. Efficiency and transparency in procurements could also pose a risk, particularly given the large number of contracts. DGAWM has considerable experience in procurement and execution of civil works contracts. Its performance in carrying out procurement under the ongoing and previous Bank, ADB and JICA financed projects has been satisfactory. In addition, project interventions will leverage substantial investments from the beneficiaries which will mitigate governance risks. Procurement of materials for W/Cs would be carried out by the communities who will also implement the works. Therefore, there would be internal checks and balances and self interest to carry out procurement properly. In addition, the works would be certified by the PISCs which would form the basis of disbursements. The M&ECs will carry out technical audits and quality checks in addition to ensuring targeting of the beneficiaries and women farmers as envisaged under the project.
72. The farmers like the Project and there is a huge demand for these interventions as seen under the ongoing advance implementation of project activities that are proposed to be financed retroactively. The Project would be transformational in terms of introducing the HEIS technology in the country and by giving an impetus to the private sector, local industry and service providers to develop local technology and industry to install such system in the future without the government‟s involvement as it happened in the case of groundwater development. The Government installed drainage wells, and farmers and local industry picked up the concept and made it cheaper and more practical. This lead to a boom in groundwater development that propelled the agriculture development for nearly two decades. If implemented successfully, the HEIS technology could have even more transformational impacts that groundwater development brought two decades ago.
VI. Appraisal Summary
A. Economic and Financial Analysis
Economic Analysis (See Annex 7 for details)
17 73. The Project will have a transformational impact on Punjab‟s Water Sector, by reducing water losses and introducing technologies, which will help improve water conservation and increase productivity of water. It is challenging to fully capture and quantify the benefits of such an intervention in a sector like agriculture where many factors are at play. Therefore, a simplified approach is used to estimate the incremental benefits of the project and cost benefit analysis is carried out by determining a discount rate, which equalizes the costs and benefits i.e. the Economic Rate of Return (ERR). The methodology and analysis is described below.
74. The benefits are quantified to the extent possible for major interventions under Component A (HEIS and Laser leveling) and Component B (watercourse improvements). The benefits of component C (technical assistance) are considerable, but they are not quantified separately. It is assumed that these services are required for the benefits of components A and B, even though they do extend beyond the scope of these components. Similarly the benefits of training under component D of the project have not been quantified and accounted for. The costs for all components are considered in the economic analysis.
75. To carry out the economic analysis, crop models were developed for each crop that would be grown in the project area. Also models were prepared for each type of intervention i.e. HEIS, laser leveling, and watercourse improvement. The economic benefits are estimated based on actual observations in the field, which have been carried out under previous national and donor-supported projects. The details on assumptions and methodology are provided in Annex 7.
76. Economic Rate of Return (ERR) Estimates. The ERR for the base case is about 32.6%. The benefit cost ratio including capital and operational cost is over 1.9. The base case reflects a very conservative estimate and the ERR realized is likely to be higher than this. The ERR is 43.2% for HEIS, 32.7% for laser leveling, 28.1%, for full and 23.1% for partial watercourse improvement in the canal area, and 19.7% in non-canal or barani areas.
77. For HEIS, the ERR was estimated for each crop, orchard for which citrus, guava and mangoes were taken, vegetables (potato, tomatoes etc,), orchard intercropped with vegetables, and DRIP- installation for new orchard and old orchard etc. Models were developed for representing 3, 5, 10 and 15 acre units. The orchard gives the highest return followed by vegetables and cotton. The use of these systems also gives good returns on wheat and pulses; however these may not be encouraged in the project area.
78. Sensitivity Analysis. The Project ERR is robust, and not very sensitive to variations in the project costs or benefits. Switching values have been computed to determine the effects of increase in costs and decrease in benefits. With an increase in capital cost by 20% or a reduction in benefits by 20%, the ERR is 25.7% and 24.2%. With a combination of two, the ERR is 18.5%. Delay in incremental benefits by two years would reduce base ERR to 19.6%. The ERR would remain above 12% considering opportunity cost of capital to 91% increase in cost or reduction in benefits by 47%.
79. Employment. The project would create about 12.9 million additional person days per annum of employment as farm labor. This estimate reflects the additional labor days required for land preparation, plowing, watering, harvesting, etc. at full development. The actual employment impact in the economy will be much higher due to an incremental production of the agriculture produce and its handling sales and marketing etc. It is difficult to estimate the full impact on employment. An effort will be made to estimate through the Project M&E studies.
Financial Analysis
80. The financial return to farmers for the investments are even higher than the economic return as the investment cost by farmers is much less (about 41% of the total project cost) and there are no
18 extraordinary distortions in the input and output prices of the agricultural commodities in Pakistan. The analysis of financial return to the farmers is not of interest or applicable except to ascertain that farmers are interested in the investments and there is a demand for the project interventions. Farmers have great interest in the investments and there is already a long list of applications received by the DGAWM for watercourse improvements and HEIS installation. Farmers are interested in these investments because of productivity enhancement, improvement in water management and water savings, reduced labor requirement and timely application of water.
81. The possible fiscal impact of the investment on the Government of Punjab is of interest as it is providing about 60% of the cost of the project as subsidy. The project is a very small part of the GoPunjab‟s budget and all government‟s share is financed by the IDA credit. Also the cost of borrowing from IDA is much less compared to domestic borrowing which is the main issue in Pakistan. Therefore, the project would not be an undue burden on the government‟s finances. The project‟s economic return is very high and it will generate enough revenues for the GoPunjab in the long run by enhancing the agricultural productivity and exports. B. Technical
82. Technically the works are simple. They have been carried out successfully before. Some innovations would be introduced in improving watercourses with concrete canalets and their unit length increased. These would be manufactured under factory conditions where high quality standards would be maintained. The improved technology and production system will be used to bring down the cost of production like it was done in the case of “pucca nakka”. Similarly, in the case of HEIS, a combination of buried PVC and polyethylene pipes will be used to minimize the cost of piping and to reduce the O&M cost. Although PVC pipes are available in the market, relatively thinner PVC pipes would be more suitable when buried. The pipe factories would also be encouraged to manufacture polyethylene pipes specifically for DRIP and HEIS. This would bring down the cost. The existing pumping units will be used with modifications to minimize the cost of the units and improve the O&M. The technical assistance and training will provide value to farmers and service providers that will help in use of the new systems and crop diversification etc. After the Project, a fleet of service providers will be available. Material production facilities that the HEIS systems and canalets use will be established in the future as it happened in the case of the groundwater wells and “paca nakka” that are commonly used by farmers. They purchase from the market and install it or ask the drillers to install a tubewell.
83. The main challenge in the project is the proper execution and management of the thousands of schemes all over the province, works contracts, purchase of material and installation, quality control and testing, certification and payments. For that, as explained in the project implementation arrangement, a robust system of supervision, checking and auditing is instituted with proper review and monitoring at various levels. Adjustments would be made to implementation arrangements based on lessons learned during initial implementation of the project. Also the output based disbursements system will help manage the implementation issues very well.
C. Financial Management
84. An assessment of the Financial Management (FM) arrangements was carried out for this output- based disbursement Project. The detailed FM arrangements are included in Annex-3. Initial Substantial risk of the Project shall be mitigated through, inter alia, (a) recruitment and training of FM staff at DGAWM Office; (b) development of FM Manual for the Project; and (c) timely submission of properly prepared quarterly Interim Financial Report (IFR) and annual audited financial statements of the project. Disbursements will follow the "Report-Based" principle whereby funds will be front-loaded to the Designated Account based on the cash forecast for the following two quarters provided in IFRs. The project‟s financial statements will be audited by the Auditor General of Pakistan and must be submitted to
19 the Bank no later than 6 months (December 31) after the FY-end. The Project shall be put on the Government FM Information System (SAP R3) starting from the inception period.
85. Retroactive Financing. Retroactive financing of up to US$20 million for payments made against eligible expenditures from August 1, 2011 to the Loan signing date shall be allowed provided that the procurement procedures are acceptable to the Bank. The IFRs shall include Disbursement Statement indicating PISC‟s certificate for completed number of watercourses, HEIS installed and the laser land leveling provided.
D. Procurement
86. A procurement assessment has been carried out and is deemed satisfactory in terms of institutional capacity. A procurement specialist will be added to the DGAWM office at the headquarters. Components A and B of the project shall be implemented through the community participation approach and is designed as an output based disbursement. The parameters of community participation in the activities of installation of HEIS, precision land leveling equipment and watercourse improvements have been agreed with the Bank. The procedures for pre-qualification of HEIS service providers and LLL suppliers, as well as selection of beneficiaries have been agreed upon. Templates of contracts with communities/beneficiaries of such services have been agreed with the implementing agency. Procurement responsibility rests with the office of DGAWM. At the implementation level, support shall be provided by the DRC for adequate estimates and the PISC for pre-qualification of service providers/suppliers and technical support to communities for construction works, as well as certification for payments. Communities shall be provided with a very simple set of procurement guidelines to ensure that funds are utilized with economy, efficiency and transparency. Consultancy firms under component C and D shall be hired using Bank‟s guidelines. The Bank shall conduct procurement training sessions to facilitate efficient procurement and contract implementation.
E. Social (including safeguards)
87. The project will generate substantial social benefits in addition to economic benefits. These include enhanced participation of farmers. Such cooperation results in better O&M of the system and cooperation in other ventures such as marketing and purchase cooperative and other social activities in the village. Enhanced equity between tail and head users further strengthens community relations leading to other useful outcomes e.g. reduced tensions, fights and even murders. Currently conflicts in villages are caused by issues of water use and head-tail delivery of water. Thousands of cases are pending in courts due to fights for water at the watercourse command level. The participation of water users and farmers is central to the project. End-users will form WUAs and register under the 1981 Act for WUAs and develop systems according to the by-laws of WUA act. This system is well tested and works very well. Watercourse improvements ensure equity in water distribution between head and tail, more water is made available at the tail end of the system. Such improved equity brings more social harmony and inclusion, reduces tensions among farmers on a watercourse allowing them to take other collective actions such as collective purchase of inputs, marketing of outputs and improving O&M of the system. The main beneficiaries of the W/C improvement program would be small farmers who would get sufficient water to irrigation of small plots they own. As indicated above, when several thousand watercourses were improved in Punjab, all influential farmers had their watercourse improved first over the last decade. This Project would cover those left out who are less influential and are at the tail end of the program.
88. The HEIS will be targeted to the extent possible at small farmers and women farmers. Monitoring program would keep track of the targets. Cost sharing arrangements may be done in a manner that small farmers can contribute by digging ponds and doing some related works themselves in agreement with service providers. Service providers are likely to provide a seasonal credit to help farmers to install the
20 HEIS and generate business. The return on investment in HEIS is such that it can generate enough profit to pay off in one season. The Project would also assist farmers and link them with the microfinance institutions to help finance their part of the cost.
89. In northern and eastern Punjab, the farm holdings are small. Many people from rural areas have left their farms to seek livelihood outside the villages, leaving the land to one of their kin. Some people left for the Middle-East where they are exposed to DRIP irrigation. With the financial crises, many such people returned home and are now trying to make a living off the same shared land. They have some capital and are familiar with the technology, and are located in areas closer to a growing urban population. Such groups could potentially provide the first stock of farmers shifting to HEIS and also become service providers.
90. Project interventions help rural women in general and women farmers in particular. Watercourse improvements also provide washing ghats and other facilities to fetch water often used by women. Also, the simpler turnout devised installed as part of the watercourse improvements are easy to operate by women, children and old, as it involves picking up a concrete lid from one side and placing it on the other side, thus diverting water from one channel to the other. This is otherwise very cumbersome as it involves breaking an earthen plug from one side and constructing on the other side while standing in flowing water, a task requiring movement of earth at a very high speed. This is even more difficult in sandy areas where forming an earthen plug is rather difficult. More women farmers are likely to opt for the HEIS system as that would help avoid night irrigation and an operation culturally not considered appropriate for women to carry out in the field. HEIS systems can be operated easily by one person and just a few hours during the day while water according to warabandi goes over 24 hour rotation and about half of the share holders get water at night. With HEIS, water would be delivered to the ponds and used for a week and during the early morning and evening when heat is less intense. By lowering the evaporation, water is conserved. Also, vegetable farming and harvesting is relatively easier for women and old farmers as farm operation is relatively less intense, e.g. unlike wheat where whole acre is to be harvested in one go. Instead, vegetables are picked everyday for only a few hours and then processed, packed and supplied, an operation in which even children and elderly can participate.
91. Non-farm activities would also increase in rural areas to handle enhanced production, generating employment for landless people. It is estimated that an additional 10 million person days of labor would be generated annually by the project for agriculture operations alone (plowing, harvesting, watering in addition to labor needed for processing the produce), much of which would be provided by non land owners, thus increasing their incomes. During construction, there would be labor demand for earth work and lining etc, for skilled and unskilled labor, and service providers would employ technical and non staff on a permanent basis. The Project‟s M&E consultants would be monitoring carefully the employment numbers during project implementation and track various kind of jobs created both during and after the project. F. Environment (including safeguards)
92. Increased efficiency in irrigation water use, conservation of scarce water resources and reduction in root zone salinity are some of the likely environmental benefits from the project. Since the project is province-wide, cumulative impacts are enormous. However, during project implementation there is a possibility of some low to moderate, short-duration impacts such as damage to assets, loss of land, soil erosion etc. Therefore the project has been categorized as „B‟. The project has nonetheless carried out a full Environmental Assessment (EA) with extensive consultations with stakeholders. No other Bank‟s policy on environment is triggered on this project. Details on the EA process and consultation are available in Annex 8.
93. The proposed project interventions are environmentally positive. However, potential impacts are mainly limited to the construction and operation stage of the project. The environmental analysis includes
21 project alternatives in terms of „alternative irrigation methods‟, „alternative land leveling methods‟, „alternative methods for on-farm water conservation‟ and „alternative methods for the implementation/construction of project activities‟. The analysis clearly shows relative environmental and social advantages of the proposed project against conventional/traditional irrigation practices and in improving water use efficiency and water conservation.
94. The EA presents quite elaborate environmental and social baseline conditions of the project area. The project area which falls administratively under Punjab province is geographically divided into (i) upper hilly region (ii) Potohar plateau, (iii) central plain lands, (iv) desert like plains and (v) Cholistan and Thar deserts. Each of these regions has different environmental, ecological and social settings. Overall the province has about 29 percent of the total reported 57 percent cultivated area and 69 percent of copped area. About 64 percent of rural population is associated with agriculture while around 50 percent of the total labor force is employed in agriculture alone. These figures show, on one hand, the need for immediate action to improve irrigation practices. Otherwise overall irrigation efficiency, currently at around 35 - 45 percent, would further deteriorate and the potential for water conservation, on the other hand, due merely to the economy of scale, would be irretrievably lost. Despite the fact that project interventions are limited to some select area producing high value crops like orchards and vegetables, there are number of protected areas in the province which rely on the same water source for irrigation as do the agricultural cropped lands. There exists one national park, nineteen wildlife sanctuaries, and five game reserve areas in the project area, and proposed project interventions will remain outside of these protected areas.
95. The project identified two major groups of stakeholders and has held extensive consultations. Institutional stakeholders included all those who in one or another way either have influence over or have direct bearing resulting from the project interventions. The EA reports on the key findings of these consultations and include recommendations for the project to develop a good communication strategy, use of FM radio for awareness campaign for farmers, inclusion of sustainability aspects and setting up demonstration facilities within the project. The project also held grass-root consultations throughout the project area. The grass-root stakeholders were generally appreciative of the project and put a lot of emphasis on the provision of supply and services facilities. Some of the farmers asked for compensatory tree plantation against those trees removed due to the project. Some of them were worried about the quality of drinking water, particularly coming out of hand-pumps as the watercourse lining may affect the shallow water lanes.
96. The EA reports assessment of potential environmental impacts particularly on change in land use and land form, soil erosion and topography, possible soil and water contamination, reduction in groundwater recharge, air quality deterioration, impact on flora and fauna and agriculture and irrigation network, employment opportunities and gender inclusion issues. The EA report presents a comprehensive environmental mitigation and monitoring program under the Environmental and Social Management Plan (ESMP). The ESMP also elaborates the need for environmental and social monitoring, third party monitoring, documentation and reporting requirements, capacity development needs both for the project staff and water users and also outlines the institutional set up and responsibilities to provide oversight for the implementation.
97. DGAWM will be responsible for the overall environmental and social performance of the project and will designate an Environmental and Social Coordinator (ESC) at the province level for the effective implementation of ESMP. The ESC will be responsible for liaison and coordination with Water Management Staff at the district level, who in turn will coordinate with and supervise WUAs and farmers for the actual implementation of environmental and social guidelines. An elaborate training program for field staff has been envisaged to help them in understanding environmental and social issues and facilitate them to implement the ESMP. The project has earmarked adequate funds for the implementation of ESMP.
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98. Climate Change Considerations. The project is an instrument for climate change adaptation by providing technology and systems that would reduce losses and conserve water, reduce pollution and provide storages close to ponds. About 10,000 ponds would be developed at the farm level that can convert once in 7 days water supply to 7 days supply. All these measures would build resilience against shortages or fluctuating and uncertain water supplies in case of climate change scenarios. In addition, less pressure on water resources would enable the society to produce food and use water for other purposes when such resources are further stained due of risks of climate change.
G. Other Safeguards Policies triggered (if required)
99. International Waterways (OP 7.50). The project area is located on the Indus Basin which is an international waterway, thus automatically triggering the international waterways safeguard under OP 7.50. However, the project essentially involves enhancements to existing watercourses and farm channels to improve water productivity and the fields‟ efficiency as well as eliminate water loss in the irrigation process. It does not involve works and activities that would exceed the original scheme, change its nature, or alter or expand its scope and extent to make it appear a new or different scheme. Therefore, given the nature of works envisaged under the proposed project: (a) the project will not adversely affect the quality or quantity of waterflows to other riparians; and (b) it will not be adversely affected by other riparians' water use.
100. The project team has also reviewed Article VII of the Indus Waters Treaty of 1960 between India and Pakistan and concluded that a notification by Pakistan to India under paragraph (2) of the said Article VII is not required, as the project will not cause interference with the waters of any of the rivers and will not affect the other riparians materially. Therefore, the Project falls within the exception to the notification requirements of OP 7.50, set forth in paragraph 7(a) of OP 7.50. The RVP has approved exception to notification as required under the OP7.50.
101. Consultations and Disclosure. During the ESA study, consultations were held with institutional and grass-root stakeholders, in order to apprise them of the proposed interventions under PIPIP, and to obtain their views, concerns and recommendations, to be incorporated in the project design to the extent possible.
102. The institutional stakeholders‟ key comments and recommendations focused mainly on the following aspects: The urgent need to adopt the proposed interventions in view of the decreasing irrigation water availability; importance of farmers‟ capacity building and awareness raising; role of research institutions in promoting initiatives such as the high efficiency irrigation techniques; importance of trees and livestock in the overall rural economy; possibility of employing rural youth for innovative irrigation and farming techniques; importance of local manufacturing and provision of back up services for the high efficiency irrigation systems; need to integrate pest management and soil/water pollution caused by chemical inputs; and the need to remove barriers for the small farmers to adopt techniques such as drip or sprinkler irrigation.
103. Grassroot consultations were carried out during an extensive field visit to different parts of the Province from 5 to 10 April 2011. These consultations were held with more than 200 stakeholders, including project affected people, potential project beneficiaries, local communities, and the Department‟s field officers in Attock, Rawalpindi, Chakwal, Lahore, Okara, Sahiwal, Multan, Bhakkar, and Layyah districts. An attempt was made to consult stakeholders from all of the distinct regions of the province with respect to the cultivation and water availability – Potwar, Central Punjab, Southern Punjab, and Thal desert. Farmers appreciated the proposed project and demonstrated their eagerness to participate in it.
23 104. Key comments recommendations provided by grassroot stakeholders primarily pertained to issues such as the need to decrease farmers‟ share in the cost of schemes, need to simplify the payment process and expedite payments to farmers, need to expand the land leveling, watercourse improvement and HEIS to other areas, and willingness of the communities to carry out compensatory tree plantation for trees that would need to be cut down for the project interventions.
105. Institutional consultations were primarily carried out through two consultative workshops respectively held in Islamabad and Multan on 4 May and 18 May 2011. The workshop held in Islamabad was attended by 30 participants, while the one held in Multan was attended by 40 participants. These participants included officials from the relevant government departments such as the Environmental Protection Agency (EPA) and Irrigation Department, personnel from research institutions, faculty members from academia, representatives of non-governmental organizations (NGOs), and others. Participants in these workshops generally appreciated the project, and raised pertinent questions and provided valuable suggestions on the project objectives, design, and implementation details.
Communications Strategy
106. Recent experience in the infrastructure sector in Pakistan has increasingly shown the importance of employing strategic communication to ensure ownership of a wide array of stakeholders. Effective communications between the government, particularly the implementation agency and stakeholders helps build trust and collaboration which in turn contributes to better project design, speedy implementation and achievement of project‟s development objectives. The project will benefit from a well designed communication strategy involving all stakeholders, including communities and people likely to benefit (or impacted by) from the project. More broadly speaking, it is important that the Agriculture Department takes advantage of this project to further strengthen its Media and Communication Unit‟s capacity to communicate more effectively about its irrigation and water sector development program including the Project.
107. Using resources available under the project‟s component D, DGAWM will further strengthen and build capacity of the Communication team. A communication specialist will be hired as a consultant whose ToRs will include (a) helping the Media and Communication Team put together an overarching communication strategy for meeting DGAWM‟s external and internal communication needs with an action plan for implementation, (b) through a consultative process, identify training and technology needs of the team and come up with a detailed action plan of how these needs will be met, and (c) prepare a communication strategy and action plan for the Project within an overall communication strategy with a view to addressing immediate term and priority communication needs of the project like stakeholder consultations, content generation and dissemination, website creation and maintenance, outreach activities, media and civil society relationship management, and field level communications. The PISCs and M&ECs would provide support to the DGAWM in implementation of an effective communication strategy.
108. DGAWM, Regional Project Coordinators and District Units will all be responsible for disseminating detailed project related information, particularly construction programs at the grassroots level in the affected areas. Both traditional and non-traditional methods shall be employed to convey messages to the stakeholders. Communications Methods. The following communication methods shall be used:
109. Involvement of policy makers. The DGAWM will initiate a series of direct communications measures to inform and involve policy makers including concerned Ministers, MNAs and MPAs. This can be achieved by making presentations and holding briefing sessions on a regular basis. This will be done simultaneously with the mass media campaign that achieves the same objective. They will be invited
24 as part of the public consultation process, to showcase the transparency of the Project as well as with an objective of garnering public support for the project.
110. Involvement of the local elected bodies, FOs, community leaders and NGOs. Local elected representatives and Councilors in the union councils have a close relationship with the farming community. Information regarding the annual canal closure program will be disseminated through them. Communication will also be undertaken through heads of villages and the Imam Masjid (Mosque). The majority of the communities in the area are illiterate; so for those who can‟t read, communication through these means will be used.
111. Communication through the Media. Print and electronic media (Newspapers, TV, and Radio) have a vast reach among all potential project partners. They are also the bridge between policy making and rural masses, informing and influencing opinions of the populace. The project will carry out a Media Analysis to maximize the impact of its media relations. The Analysis will include assessing the reach of different publications, TV and Radio stations among the various target audiences, perceptions among the media on the Project and developing the most efficient and effective media strategy for the project. The project team will carry out intensive media relations and will use press briefings, conferences, news releases and interviews.
25 Annex 1: Results Framework and Monitoring Punjab Irrigated Agriculture Productivity Improvement Program Phase-I Project (PIPIPP) Project Development Objective (PDO): The project‟s main objectives are to improve water productivity. Improved water productivity will translate into greater agricultural output per unit of water used, and will be achieved through improved physical delivery efficiency, irrigation practices, crop diversification and effective application of inputs.
Cumulative Target Values Responsibi Description
PDO Level Results Unit of Data Source/ lity for (indicator Baseline YR 5 Frequency Indicators* Core Measure YR 1 YR 2 YR3 YR 4 YR 6 Methodology Data definition etc.) Collection Indicator One: Project Reduction in water Bi- reports, OFWM, losses in the project Annually monitoring M&ECs
reports by reports area In number of M&ECs - In watercources watercourse improved by 40% level 500 1500 3,500 6500 9,000 command of current 10%; losses
Acres
covered by 20,000 40,000 80,000 100,000 120,000 HEIS - Where HEIS are installed
Indicator Two: Project OFWM, Change in value Increased agriculture Value of reports, M&ECs of water rupees output per unit of water Production monitoring reports per cubic meters per Cubic reports by by the target used Meter of M&ECs amount to 45% in Water case of HEIS and increased 9% in case of from watercourse baseline. improvement over area in acres
By 45% over and numbers of an area 12 Rupees 20,000 40,000 80,000 100,000 120,000 Annually watercourses (acres). per m3 respectively HEIS Orchards, Vegetables Alternatively, and Row Crops) agriculture By 9% over production would an areas also be monitored covered by 7 Rupees 500 1,500 3.500 6,500 9,000 Annually in order net out Watercourse Improvement number of perm3 the changes in watercourses Annually prices.
26
INTERMEDIATE RESULTS
Component A: Installation of High Efficient Irrigation Systems Intermediate Result indicator Same as Same as above Same as above One: Drip and high efficiency System in Zero 1,752 4,380 7,884 12,264 15,768 17,520 above Systems Nos Intermediate Result indicator Laser units Same as above Same as above Two: Laser Leveling Equipment No. Zero 300 1,200 2,100 3,000 3,000 3,000 Component B: Watercourse Improvement Program Intermediate Result indicator Same as Same as above Same as above One: Improvement of No. of above Watercours Zero 500 1500 3,500 6,500 8,500 9,000 Watercourse in Canal Command es Area
Component C: Improved Agriculture Technology/Practices and Monitoring and Evaluation Intermediate Result indicator % Same as Same as Same as above One: Introduction of Improved completio Zero 10 20 50 80 90 100 above above Agricultural Practices n Intermediate Result indicator Percent Same as Same as Same as above Two: M&E Project Management completio Zero 10 20 50 80 90 100 above above Support n Component D: Project Management Support, Supervision Technical Assistance Training Intermediate Result indicator Constant Consta Constan Constan Constan Constan Constan Same as Same as Same as above One: Project Implementation and support and nt t t t t t above above Management supervision suppor support support support support support by the PISC t and and and and and and superv supervi supervi supervi supervi supervi ison son by son by son by son by son by by the the the the the the PISC PISC PSIC PSIC PISC PISC
Intermediate Result indicator Regular Regul Regular Regular Regular Regular Same as Same as Same as above Two: Project Supervision and Support ar Support Support Support Support above above
Third Party Validation Suppo rt Intermediate Result indicator Percent Same as Same as Same as above Three: Strategic Studies, TA and completio Zero 10 20 50 80 90 100 above above training etc. n
27 Annex 2 Detailed Project Description Punjab Irrigated Agriculture Productivity Improvement Program Phase-I Project (PIPIPP)
Background
112. Indus Basin Water/Irrigation System. Pakistan relies on the largest contiguous water system in the world, namely the Indus Basin Water System (IBWS) for basic food security and supply of water for all the sectors of the economy. The IBWS consists of the Indus River and its tributaries, three major multi-purpose storage reservoirs, 19 barrages, 12 inter-river link canals, 43 major irrigation canal commands (covering over 14 million hectares), and over 120,000 watercourses, delivering water to farms and other productive uses. Annual river flows are about 180 billion m3 of which about 120 billion m3 of water is diverted from the river system to the canals annually. The total length of the canals is about 60,000 km, with communal watercourses, farm channels and field ditches running another 1.8 million km. These canals also serve as the country‟s main waterways. Pakistan would have remained largely a desert without the development of this system of canals, dams and hydraulic structures. This system is the country‟s sole source of water supply, supporting life and livelihoods of millions of people. In addition to providing water for irrigated agriculture, the IBWS serves as the backbone of the economy, supporting the development of major cities, industry, and growth centers. See Map IBRD 37352 for a schematic layout of the IBWS and Table 2.3 provides detailed information about the IBWS.
113. Generally, the hierarchical canal system runs from main canals to branch canals to distributaries/minors. Open, free-flowing outlets (moghas) regulate water flow from distributary/minors to the watercourses that supply water to chacks or dehs (tertiary irrigation command area). These watercourse commands are a complex miniature irrigation system with an average length of about 20 km. Water is distributed to the field by a weekly time rotation (warabandi) based on the size of the land holding. The canal system is also a major source of recharge for the groundwater aquifers. In fresh groundwater areas, groundwater is pumped by tubewells to supplement canal supplies. Groundwater resources are substantial, with more than 850,000 tubewells in the country contributing significantly to the water supplies in areas underlain by fresh groundwater.
114. Irrigated Agriculture in Punjab. Punjab is the most populated province of the country. Its total geographical area is 20.63 million hectares, of which about 59% of the area is cultivated, about 15% is uncultivable, and the rest is cultivable waste and covered with forests. About 60 percent of the area commanded by IBWS is in Punjab (about 22 million acres). Over 70 percent of the cropped area of IBWS is in Punjab. Its share of agricultural production of the country is more than 80 percent in case of cotton, almost 70 percent for wheat, nearly 60 percent for sugarcane, and 50 percent for rice. The overall contribution of the province towards agriculture sector is estimated to be more than 80 percent, 90 percent of which comes from irrigated areas. Major crops are wheat (38% of area), cotton (15% of the area), rice (10%), sugarcane (4%), and orchard (about 2%) – see Figure 2.1.
115. Groundwater Resources. Most of the Indus Basin has been formed as a result of alluvium deposits derived by rivers from the mountain ranges in the north. These alluvial deposits consist principally of fine and medium-grained sands and silts, although there are discontinuous lenses of silt and clay. Their depth ranges from 450 meter in upper Punjab to about 60 meter in lower Sindh, where it is layered with silty and heavy deltaic sediment. In total, about 80 percent of the area in Punjab and 28 percent of the area in Sindh has fresh groundwater which is suitable for irrigation. However, the residual sodium carbonate (RSC) which results from use of groundwater is often high. Exclusive reliance on groundwater can lead to a build-up of salts, resulting in binding of the soil structure, reduced water infiltration into the root zone, and falling yields. The groundwater is mixed with canal water for irrigation use.
28 40
35
30
25
20
15
10 Percent Cropped Area Cropped Percent 5
0
Type of Crop
Figure 2.1: Cropping Pattern in Punjab
116. Development of groundwater in the late 1980s onwards by the private sector has been one of the major sources of growth in agriculture production. This has helped in improving overall basin-wide efficiency of water resources as the water seeped from the canals and watercourses, recharges the groundwater aquifer that would be otherwise wasted and results in water logging, which is then pumped and re-used. The aquifer acts as a multi-year storage reservoir for irrigation supplies which also helps during drought years. This was experienced during the 2001-2002 drought during which agriculture production was not affected despite serious surface water constraints. The conjunctive use of surface and groundwater allows farmers to close the gap between canal supplies and crop water requirements, which improves timeliness of irrigation application that is vital for higher productivity. Also, the delivery efficiency from groundwater wells to the fields is much more compared to canal water as tubewells are developed in close proximity to the fields.
117. Agro-climatic Zones (ACZ) of Punjab. Punjab province can be divided broadly into four agroclimatic zones
(i) Punjab Mixed-Wheat (PMW) contains nearly three million canal commanded acres, mostly on the left bank of the Indus below the Jinnah barrage but also includes the Paharpur and Chasma Right Bank canal command areas in the Khyber Pakhtunkhwa Province. The topography is rough, soils are sandy and seepage is high, resulting in low cropping intensities and yields. Fresh groundwater and localized water logging in most of this ACZ imply that the potential for tubewell development is favorable. (ii) Punjab Rice-Wheat (PRW) contains about 3.0 million acres, virtually all of which is underlain by fresh groundwater. This has spurred intense private tubewell development. As a result, cropping intensities are among the highest in Punjab, with Basmati rice being the dominant cash crop. Relatively high returns to farming combined with a shortage of labor have led to rapid mechanization in this zone. It has more tractors per acre than any other zone. (iii) Punjab Sugarcane-Wheat (PSW), (also called "Punjab Mixed Crop") lies between PMW and PRW, and contains about 5 million acres. Wheat and sugarcane are the principal crops. About
29 one-third of the zone is saline, but farmers make extensive use of groundwater in the rest. Water shortages do exist, and are largely attributable to low watercourse efficiencies. (iv) Punjab Cotton-Wheat (PCW) is by far the largest ACZ in the Basin, comprising over 11 million acres on the left bank of the Indus between Sindh Province and the other Punjab ACZs. Cotton and wheat are the main crops and have some of the highest yields in Pakistan. About 20 percent of this ACZ suffers from severe water-logging and salinity. Groundwater is extensively used in the rest of the zone, but adequate water remains an overall constraint.
118. Farm Size Distribution in Punjab. Farm size in Punjab is relatively small compared to Sindh and is particularly small in northern and eastern Punjab. The farm size distribution based on 2000 Agriculture census is given in the table below. Based on this, about 18% of the farms are less than 1.23 acres, about 34% are less than 2.47 acres, about 56% are less than 4.94 acres, about 72% are less than 7.41 acres and about 86% are less than 12.3 acres. Efforts would be made to target the small farmers and to get economies of scale. More than one farmer would be allowed to share the head units and/or ponds.
Number and Area of Farms by Size of Farm in the Punjab (Area in Thousand Hectares) Size of Farm (hectares) Farms Farms Area Cultivate Ares „000‟ % with Total % Total % With Number Total With Total Total All Farms 3864.2 100.0 11262.0 100.0 10313.6 100 Government Farms 0.1 - 26.8 0.2 18.3 0.2 Private Farms – Total 3864.1 100.0 11235.2 99.8 10295.3 99.8 Under 0.5 703.6 18.2 201.1 1.8 191.3 1.8 0.5 to Under 1 617.3 16.0 459.4 4.1 443.7 4.3 1 to Under 2 844.2 21.8 1166.8 10.3 1124.4 10.9 2 to Under 3 597.9 15.5 1403.9 12.5 1341.7 13.0 3 to Under 5 536.4 13.9 2081.5 18.5 1955.0 19.0 5 to Under 10 368.4 9.5 2422.3 21.5 2221.4 21.5 10 to Under 20 149.0 3.9 1558.6 16.5 1645.8 16.0 20 to Under 40 36.7 1.0 909.2 8.1 789.9 7.7 40 to Under 60 5.7 0.1 263.1 2.3 211.3 2.0 60 and above 4.9 0.1 469.3 4.2 370.8 3.6 Source: Agriculture Census Organization, Govt. of Pakistan, Lahore. “Census of Agriculture, 2000”
119. Water Conservation and Reducing Losses is Crucial in the Future. Pakistan has been expanding the surface water supplies to the Indus Basin Water System over time by capturing more water from the rivers. Prior to construction of the Mangla dam in 1967, the annual surface water diversions to the Indus Basin Canals were about 67 million acre feet (MAF). These increased to about 85 MAF prior to commissioning of the Tarbela Dam in 1976 with storage at Mangla and connecting water surplus western rivers (Indus, Jehlum and Chenab) to the water scarce rivers in east (actually transferred to India after the Indus Treaty of 1960). Annual canal diversion post -Tarbela reached up to 105 MAF. In the last decade they have declined to 94.5 MAF (see Table 2.1). This is due to reduced storage capacity in the reservoirs because of sedimentation, diversions are close to full potential supplies of the rivers and a decade of relatively low flows. Major deficit is in Rabi season, about 8.6 MAF. Increase is only possible with heavy investment in storage dams on the Indus River, many of which are very controversial. Also, some believe that, apart from a few years of extraordinary floods, the rivers do not have surplus water to store after meeting the ecological requirements of the delta region and the coastal zone. Even if a dam is started now (such as Bhasha dam with a live storage capacity of about 6.5 MAF) with sedimentation continuing, it is questionable if it would be possible to increase the average canal diversions to the level of post-Tarbela average. The other source of water Pakistan has tapped is groundwater, which is
30 recharged by the surface water system. Thus less canal diversions mean less groundwater availability. Since the 1980s, groundwater aquifers have supplied an increasing amount of water for irrigation in areas underlain by fresh groundwater. In Punjab, about equal amount of irrigation water comes from the groundwater wells. This resource is now reaching its limit and further withdrawals are not possible without serious mining and extraordinary cost of pumping.
Table 2.1: Average Annual Canal Diversions in IBWS (MAF) Average 1976-2010 Average 2001-2011 Average 1976-2000 Kharif Rabi Total Kharif Rabi Total Kharif Rabi Total Punjab 33.6 18.2 51.8 33.2 14.6 47.8 33.7 19.7 53.4 Sindh 28.7 13.7 42.5 27.3 11.2 38.6 29.3 14.7 44.0 Balochistan 1.3 0.8 2.1 2.0 0.8 2.8 1.1 0.8 1.9 KPK 3.3 2.0 5.3 3.3 2.0 5.3 3.3 2.0 5.3 (a) Gauged 2.1 1.4 3.5 2.7 1.6 4.4 1.9 1.3 3.2 (b) Ungaged 1.2 0.6 1.8 0.5 0.4 0.9 1.4 0.7 2.1 Total 66.9 34.8 101.7 65.8 28.6 94.5 67.4 37.3 104.6 Difference between 2001-11 and 1976-2010 -1.1 -6.2 -7.3 Difference between 2001-11 and 1976-2001 -1.6 -8.6 -10.2
120. In the future, substantial quantities of water would only come from cutting down losses, particularly in the watercourse command and fields, where losses are highest, and which do not contribute to groundwater recharge. The quantity of water that could become available with about a 10 percentage point reduction in losses in the watercourse command is more than two dams on the Indus River. The project is designed to capture this potential in addition to making use of water more productively at the farm level by crop diversification and better irrigation agronomic practices. With continued use of flood irrigation, Pakistan will not have enough water to meet future demands. With HEIS, which can shift efficiency from 40% to 95%, there would be adequate water to meet demands in the future.
121. Irrigation Practices and Use of Water for Irrigation. As explained above, water from the rivers is diverted into the main canals, then into the branch canals (both are prime level diversion canals), distributaries and minor (secondary level canals), and then into the watercourses. The shortage of water is distributed by rotating the flows to the distributaries and minors. However, when distributary/minor is supplied with water, all watercourses in that distributary draw water through a regulating structure on each watercourse, designed to share available water in the distributary canal equally among all watercourses. Watercourse is a community irrigation system on which water is shared by all users by allocating full discharge of the watercourse for a specific amount of time to one user, following a weekly rotation system called “warabandi”. From the community watercourse to the field there is a complex system of channels and ditches which delivers water to the field. At the field level, flooding is the most common irrigation method practiced by farmers and it is quite wasteful in water and nutrients, and results in uneven growth of crop and salinity, particularly if the field is not leveled.
122. Low Delivery Efficiency in Watercourses. It is estimated that about 40% of the water is lost in the community watercourses (W/Cs). The main sources of these losses are seepage, spillage, and side leakage from the watercourses due to the following factors. o Irregular profile and zigzag alignment of banks and weak sections of the channels. o Variable cross section of water channels, resulting in stagnant water in channels o Silt deposition, causing restrictions in flows, and overtopping o Trees, shrubs, and vegetation growing in watercourses o Damage caused by rodents and farm animals o Frequent bank cutting and plugging for water abstraction
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123. The watercourse improvement / renovation consists of complete demolition of the community channel and its rebuilding/re-aligning according to the engineering design to increase conveyance efficiency by reducing seepage, evaporation, spillage and operational losses.
124. Low Field Efficiency in Application to the Field and Crops. Flood irrigation is a traditional method adopted by most of the farmers of Pakistan. A significant amount (20 to 25%) of irrigation water is lost during its application due to uneven fields and poor farm designs. This leads to excessive application to low-lying areas of the field and under-irrigation of higher areas. Over-irrigation leaches soluble nutrients from the crop root zone, makes the soil less productive, and degrades groundwater quality. On the other hand, under-irrigation of elevated parts of the fields results in accumulation of salts in such patches and causes water stress and de-osmosis due to applied fertilizer. The efficiency of this irrigation method ranges from 40-70 percent, while the drip and sprinkler irrigation systems are the most efficient with an efficiency up to 95 percent, as indicated in the Figure 2.2 below.
125. HEIS technologies have been developed and successfully adopted in various countries of the world including USA, Australia, China, India etc. Major constraint in the adoption of these technologies is their high installation costs. The issue has, however, been resolved through research and development of low cost efficient irrigation technologies, particularly in China where cost effective systems have been developed for orchards and all field crops/vegetables. Experience of other countries and studies conducted in the recent past recommend that introduction of high efficiency irrigation systems is highly effective in conserving water resources.
126. The proposed project is designed to deliver a combination of interventions: (a) W/Cs improvement to improve the delivery efficiency to the field; (b) precision land leveling to improve the applications in the field where flood irrigation would remain prevalent in the near future (e.g. wheat, rice, fodder etc); (c) HEIS - drip, sprinkler, bubbler, etc - for orchard, vegetables, flowers and other high value row crops.
Figure 2.2 Efficiency under various methods of Irrigation
127. This would be a transformational operation that would change the water application system in the country and help manage the growing demand of water in particular for food production. As most of the elements of interventions are available in the country, the project would help bring them together in a
32 manner that these would take off in the private sector as was the case in groundwater development. The groundwater wells were initially installed by the Government primarily for controlling water-logging and salinity. However, their demonstrative effect to farmers and demand created by private suppliers and manufacturers helped propel a groundwater revolution in Pakistan, without which the current level of food production would have been unattainable. All these interventions have a short gestation period and leverage substantial investments from beneficiaries. Furthermore, these interventions help in improving agricultural productivity through appropriate application of inputs, increase water conservation, reduce water-logging and salinity, and bring about a change in cropping pattern and crop husbandry. As a result productivity enhancement is much higher than the physical improvements in the delivery and irrigation system. These interventions are synergetic, and provide an extremely potent solution to improve irrigation efficiency, crop production, and diversification. Project Description
128. The project consists of the following components: Component A: Installation of High Efficiency Irrigation Systems (US$234 million of which IDA US$120.9 million). This component would consist of the following two sub-components:
129. Component A1: Installation High Efficiency Irrigation Systems (HEIS, US$177.5 million of which IDA US$113 Million). Drip, bubbler, sprinkler (rain-gun, centre pivot) are termed as HEISs, which use pipes for conveyance of water from the source to points of use. In drip or trickle irrigation, water is delivered in the form of drops to individual plants by means of small emitters. Bubbler irrigation is very similar to trickle irrigation except that the water is delivered to the plants through fountain type heads mounted on small spikes. Water is pumped at high pressure in sprinkler irrigation network through a pipe system and sprayed over the field somewhat like rain to irrigate the crops. In case of Punjab the source of water would be a groundwater well or canal water. As the canal water is delivered according to “warabandi” farmers would have to develop pond on the farm that would allow to store water during their turn of “warabandi”, and apply to the field through HEIS on a continuous basis during the week till the next turn.
130. This component would support the installation of drip, trickle, bubbler, or sprinkler irrigation systems at the field level for high value, horticulture, vegetables, floriculture and other high value row crops. The irrigation systems would be installed by a service provider on a shared cost basis. The drip units would include a pumping unit, fertilizer tank, delivery fittings, filters, underground main pipeline, and delivery lines etc. These systems would be installed for orchards, vegetables, flowers and other high value row crops, thereby promoting crop diversification. Controlled application of water and non-water inputs would enhance crop productivity. A technical assistance package would be provided by the vendors to the farmers to promote adaptation of the new technology. In addition, technical assistance and training would be provided to the users through component C of this project. Successful installation and application of these irrigation systems would encourage the private sector to adopt this high efficiency irrigation technology, as was the case of groundwater development, which was initiated by the government but brought to scale by the private sector.
131. High efficient irrigation systems would be installed over 120,000 acres. The indicative targets would be to install about 5,400 units each for farms up to 3 acres and 4-5 acres, 4,800 units for farms up to 10 acres and 1,920 units for farms up to 15 acres. See Table 2.2 for details. Major part of the area about (100,000 acres) would be covered by the drip irrigation systems and other HEIS systems may be installed on an area of about 20,000 acres. The head units and ponds, in particular, for the smaller units would be combined if possible to reduce costs. Farmers would carry 40% of the cost of material, labor and installation, while the government would finance 60% of such cost and administrative cost of the government for installation of the system.
33 Table 2.2 Indicative Targets for Installation of HEIS.
Units Acres HEIS 3 Acres Orchard 1500 4,500 HEIS 3 Acres Vegetables 1950 5,850 HEIS 3 Acres Row Crops 1950 5,850 Sub-TotaL or Average 5,400 16,200 HEIS 5 Acres Orchard 1800 9,000 HEIS 5 Acres vegetables 1800 9,000 HEIS 5 Acres Row Crops 1800 9,000 Sub-TotaL or Average 5,400 27,000 HEIS 10 Acres Orchard 1600 16,000 HEIS 10 Acres Vegetables 1600 16,000 HEIS 10 Acres Row Crops 1600 16,000 Sub-TotaL/Average 4,800 48,000 HEIS 15 Acres Orchard 650 9,750 HEIS 15 Acres Vegetables 635 9,525 HEIS 15 Acres Row Crops 635 9,525 Sub-TotaL/Average 1,920 28,800 Total/Average 17,520 120,000
132. HEIS units would be designed and installed based on the lessons learnt from the pilot project already working in Punjab. Among the major components would be providing sufficient technical assistance and training to the installer and the users, and aftercare to ensure maximum benefit of such systems. Schemes for installation of HEIS would be selected using the criteria given below which would be reviewed annually, or more often if required, by the PSC and updated based on the lessons learned:
133. The Farm: (i) has adequate and reliable/assured water source e.g. canal supply or operational tubewell having water of suitable quality for cotton irrigation; (ii) preferably located in an area with adequate access in order to have good demonstration effect; (iii) soil is suitable for growing cotton with drip irrigation and not severely degraded due to waterlogging, salinization, alkalinization etc.; and (iv) topography is relatively good without deep ditches/ravines or other obstacles, which cannot be resolved through economic drip irrigation design;
134. The Farmer: (i) agrees to contribute his/her share over and above the financial assistance being provided under the scheme; (ii) is willing to mobilize operation and maintenance expenditure after installation of the drip irrigation; (iii) agrees to provide support and assistance to project staff, supply & services companies and consultants during their activities pertaining to site surveys, installation of equipment, and other civil works; (iv) is owner/tenant/lessee and self cultivator of land (in the case of absentee owner, a well- versed farm manager is required); (v) is not defaulter of any revenue/financial institution; (vi) will not remove or sell or transfer or hand over possession of installed system to any person in any form within three years after installation; (vii) agrees to get the operator of irrigation system trained in operation, trouble shooting/repair & maintenance from SSC/government; (viii) will abide by the decision of the allotment committee; and
34 (ix) will be liable to pay full amount of financial assistance received for the purpose as arrears of land revenue in case of violating any of the conditions specified by the government. 135. Component A2: Strengthening of Precision Land Leveling Services in the Private Sector (US$56.5 million of which IDA US$7.9 million). Un-leveled fields cause wastage of water, resulting in low irrigation application efficiency and much lower yields. Precision land leveling saves up to 30% irrigation water, results in uniform seed germination, and increases fertilizer uptake efficiency which enhances crop yields of up to 20%.
136. The Government of Punjab (GoPunjab) provided 2,500 LASER units to the farmers/service providers during the period 2005-06 to 2007-08 under the “Strengthening of LASER Land Leveling Services in Punjab” project which has substantially improved the rental service of LASER land leveling for farmers. Furthermore, about 1,425 units have been procured by the farmers/ service providers from their own resources in the province. Accordingly, there are over 4,000 operative LASER land leveling units in the Punjab with annual capacity of normally 1.2 million acres.
137. The total irrigated area of the Punjab is 36 million acres, out of which only about two million acres have been leveled. It is estimated that one LASER unit can LASER level about 300 acres annually due to short window available for land leveling between the Rabi and Kharif crops. Accordingly, LASER leveling of the remaining area in five years will require more than 22,000 LASER units. In addition, LASER land leveling operations are required to be repeated after 3-5 years to get the real benefits of the technology. It is therefore considered appropriate to add at least 3,000 more units to bring significant improvement in provision of LASER land leveling services.
138. The innovative approach introduced under the recently completed scheme will be replicated under the proposed project for further strengthening of LASER land leveling services. This involves provision of one-time financial assistance to farmers/service providers for procurement of equipment and their capacity building to carry out the envisaged task that proved to be quite successful.
139. Under this component laser leveling equipment would be provided to service providers on a shared cost basis. The service providers would carry out laser land leveling for farmers on charge back basis as a business. A capacity for laser land leveling of about two million acres annually would be developed, for which about 3,000 laser leveling units would be provided. About 50% of the cost of laser land leveling equipment would be provided by the service provider who owns tractors capable of operating the LASER unit.
140. The following criteria would be used for selection of service providers under the Project which would be approved and updated by the PSC from time to time. An applicant will be eligible for the grant of financial assistance provided that the person (i) possesses a tractor capable of operating LASER unit; (ii) agrees to carry out/provide services for LASER land leveling of 300 acres per year during project period on rental basis; (iii) has not applied for provision of LASER unit under this scheme from any other Tehsil in the Punjab; (iv) has not already availed such facility from any earlier scheme of federal/provincial government; (v) is owner/tenant/lessee and self cultivator of land not more than 12.5 acres and is preferably agricultural machinery service provider or an agricultural graduate possessing requisite land ownership (vi) is not defaulter of any revenue/financial institution; (vii) agrees to use LASER unit for agricultural purposes only; (viii) will rent out the equipment for LASER land leveling in the area;
35 (ix) will get the LASER unit booked with any short-listed/pre-qualified firm and failure to do so will cause cancellation of financial assistance being offered under the scheme; (x) will not sell or transfer or hand over possession of the LASER unit to any person in any form within the project period before meeting the obligations agreed under the scheme; (xi) agrees to get the operator trained in operation, trouble shooting/repair & maintenance and farm layout planning through the Water Management Training Institute, Lahore; (xii) will abide by the decision of the District Allotment Committee and DGAWM, Punjab Lahore; and (xiii) will be liable to pay full amount of financial assistance received for the purpose as arrears of land revenue in case of violation of any of the conditions of the scheme.
141. Component B: Upgrading of Community Irrigation Systems (US$160 Million of which IDA US$99.5 million). The component would consist of three subcomponents:
142. Component B1: Watercourse Improvements in Canal Irrigated Areas (US$ 126.4 million of which IDA US$80.3 million). This component would assist Government efforts to improve watercourses (W/C), the tertiary level water distribution system where water losses are highest. Of the 140,000 total watercourses in irrigated areas of Pakistan, around 95,000 have been improved under various programs supported by several donors as well as from national program. Punjab has about 58,000 watercourses in irrigated areas, out of which about 41,000 have been improved, leaving a remaining 17,000 in need of improvement.
143. The innovations would be introduced to use concrete parabolic channel sections up to 8 feet (or U sections namely canalets) placed on leveled compacted earth with water tight joints, thus improving existing technology of brick lining. It may not be possible to use parabolic concrete units at all watercourses due to accessibility issues, lack of required skills, and farmers‟ preference. Therefore, where suitable and where farmers prefer, watercourses would be lined using traditional bricks with plaster. Also, water turnout structures would be replaced with properly designed concrete structures (pucca nakkas). The earthen sections of the watercourse would be improved using clean compacted soil. Efforts would be made to have private contractors/service providers construct such canalets and have water users associations (WUAs) install them. The project would provide technical assistance for layout and construction supervision to the WUAs. The length of the watercourses, installation of diversion structures, as well as other improvements to earthen sections of the watercourses would be in accordance with the current standard practice and optimized for each watercourse. WUAs would share the cost through providing labor, and the Government would provide canalets and other material. Farmers share would range from 35 to 43% of the cost depending on type of improvements and total cost. Detailed cost estimates and shares are given in Tables 2.9 and 2.10.
144. About 5,500 new watercourses which have never been improved would be covered under the project. The target would be to improve about 3,400 using the concrete canalets and another 2,100 using traditional material of bricks etc. About 1,500 watercourses that have been improved since the start of the program would be improved using up-to-date techniques. About 2,000 watercourses would be improved in rainfed (barani) area. In canal commanded areas, preference would be given to the areas where distributary level farmers‟ organizations have been formed. Preference would also be given to watercourses located at the tail-end of the canal systems.
145. Development and Role of Water Users Associations (WUAs). The key to success of watercourse improvement program in Pakistan is farmers‟ participation. Watercourse improvement projects are driven by the community and share holders of the watercourses. The OFWM staff would carry out social mobilization program to involve farmers in the implementation of the proposed project. They have successfully undertaken this function for the past 30 years by organizing about 48,000 WUAs in the province for improvement of watercourses.
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146. A WUA would be formed on each canal outlet or watercourse that will be registered under “Water Users‟ Association Ordinance [Act]-1981 (Amended 2001)” under the proposed project. The WUA will be the key institution for implementation of watercourse development activities with following key responsibilities. (a) Provide right of way for constructing watercourse; (b) Arrange skilled and unskilled labor required for reconstruction of earthen water channel, installation of structures and lining of critical reaches; (c) Procure construction materials for carrying out civil works; (d) Settle matters of disputes amongst the water users in respect of channel alignment, fixation of nuccas (outlets), distribution of work etc. (e) Make alternate arrangements for conveyance of water during execution of works (f) Carry out civil works in accordance with standards and specifications under the supervision of OFWM field staff; and (g) Regularly undertake O&M of new / improved watercourses
147. In addition, WUAs would be encouraged to assume the following functions: (a) Participate in distributary level farmers‟ organization and represent all users of the watercourse; (b) undertake construction / improvement of farmers‟ branches and field ditches (c) (b) Participate in the process of water allocations and distribution (warabandi) within the watercourse command (c) carry out O&M of community tubewells (d) install surface/sub-surface drains within watercourse command areas; (d) facilitate distribution of non-water inputs; and (e) participate in development and utilization of funding obtained from the government or other sources.
148. Watercourse Improvement works. The watercourse improvement/renovation would consist of complete demolition of community channels and rebuilding/re-aligning them according to the engineering design with clean compacted soil. Parts of the reconstructed channel are lined and necessary water control structures are installed to improve conveyance of the canal and tubewell water. The standard "Pucca" lining carried out under previous and ongoing OFWM programs is a rectangular shaped channel using double-brick masonry walls (23 cm) and a brick masonry bed (7 cm) plastered inside and on top of the walls. This design has proved to be durable and easy to install. The same will therefore be adopted under the proposed project. Other types of lining e.g. pre-fabricated concrete (pre-cast parabolic lining), pipe, plastic etc. will also be followed considering farmers‟ choice, field conditions, and cost effectiveness.
149. Precast "Naccas" would be installed at all junctions and authorized outlets to reduce channel deterioration, seepage loss, and to improve water control. Under normal conditions, where the land is fairly leveled and belongs to one or two farmers only, the standard practice of providing one Nacca (turnout and check) for every 25 acres is satisfactory. Extra provision of Naccas would be made where the land has been subjected to fragmentation because of uneven topography, repeated division of ownership, social problems, etc. Moreover, culverts would be constructed at major crossings, and a limited number of checks/drop structures, animal wallows/buffalo baths, and laundry sites would be provided as required. The construction of washing places and lining of reaches through villages would provide additional public health benefits. It is planned that execution of field activities will be carried out by the following procedures adopted under earlier national program.
150. Component B2: Completion of Partially Improved Watercourses (US$21.0 million of which IDA US$12.1 million). Many watercourses in Punjab were only partially (barely) improved in the early part of the program in the late 1970s. In order to fully realize the benefits, improvement works on these
37 watercourses would have to be completed. The project would cover completion of about 1,500 watercourses which have been partially improved in the past. Farmers would contribute with skilled and unskilled labor, with the Project funding the material cost, administration and management. Improvement works and procedures would be similar to new watercourses, as described above. See cost details in Tables 2.11 and 2.12.
151. Component B3: Improvement of Community Irrigation Systems in the Non-canal Commanded Areas (US$12.5 million of which IDA US$7.0 million). This component would cover watercourse improvements in the rainfed (Barani) areas, i.e. areas which are not in the command of the barrage controlled irrigation but have localized irrigation schemes. These are generally small watercourses and the cost of improvement is less than in other areas. The project would cover about 2,000 watercourses in Barani areas. Detailed cost estimates are provided in Table 2.13 and 2.14. The standards and procedures for improvement would be the same as described above.
152. Component C: Improved Agriculture Technology/Practices and Monitoring and Evaluation (US$ 9.0 million of which IDA US$9.0 million). This component would consist of the following two sub-components:
153. Component C1: Improved Agriculture Technology and Practices (US$7.0 million). The purpose of this component would be to enhance productivity of the irrigated lands. The activities under this component would include: (i) effective applied research, extension, and agricultural information services; (ii) participatory training for farmers, involving training of specific target groups in various agro-technical fields, farm management and irrigation agronomy; (iii) demonstration and assistance in improved and modern technologies and methods to increase agricultural production through better agronomic practices; (iv) training of the service providers, training of trainers, etc; and (iv) the establishment of a Farmers Information Services Desk linked to the internet, electronic media and cell phones etc. This would provide relevant information to farmers and advise them on making their farms more productive and sensitive to market demands. The Water Management Training Institute (WMTI), Lahore will provide training, research and extension support for adoption of modern irrigation water management and conservation techniques and technologies. Demonstration of new technologies is expected to result in crop diversification and crop husbandry, horticulture, vegetables and floriculture, improved irrigation and drainage practices and better water management to improve water use efficiencies and reduce environmental degradation. This would include interventions to optimize field size, introduce land leveling and furrow irrigation, irrigation using drip, bubbler and sprinkler irrigation system and ways to adapt these technologies etc. For this purpose, demonstration plots would be developed in various parts of the project area to complement the direct assistance and to promote new technologies.
154. Component C2: Monitoring and Evaluation of Project Impact (US$2.0 million). This component would cover Monitoring and Evaluation (M&E) of the project‟s impacts. This would be done primarily by using a sampling technique, as well as by conducting case studies, GIS systems, and satellite data. M&E activities would provide continuous feedback on the project‟s performance and impact of its various components to GoPunjab, PPC, PSC and the implementing agency, so that corrective actions could be undertaken in a timely manner. M&E activities would cover three set of activities: (a) monitoring of project implementation, checking and audit of project outputs and quality; (b) project impact; and (c) monitoring of environmental and social impact and mitigation plans etc. M&E activities are likely to cover, but not be limited to: (i) the impact of the irrigation system improvements on water use efficiency, groundwater levels and quality, and soil salinity; on-farm water use; cropping patterns and yields; and livestock population, health and production; (ii) socio-economic impacts and impact on the level of employment, livelihood and household incomes in the project area; estimation of the project‟s overall benefits and economic rate of returns etc. M&E would be carried out using latest technology such as satellite imagery and GIS systems, where necessary.
38
155. Component D: Project Management, Supervision, Technical Assistance, Training and Strategic Studies (US$20.5 million of which IDA US$20.5 million). This component would cover the cost of (i) project implementation and management, including mobilization of farmers, surveys, engineering and designs, implementation supervision and assistance to farmers and suppliers, and ensuring quality of works carried out by farmers and suppliers/vendors etc; (ii) project supervision and spot checks, covering quality and quantity aspects by third party consultants based on which the funds would be disbursed; and (iii) strategic studies and pilot projects that would be identified during project implementation, technical assistance and training, in particular training to project staff (i.e. training of trainers) in crop diversification, shift to horticulture, vegetable and floriculture crops, operation and maintenance of irrigation systems and units installed under the project etc. Project Cost and Financing
156. Project Cost. The total project cost is estimated at about US$423.5 million for all the components. Cost by components is provided in Table 2.4 and cost by expenditure category is provided in Table 2.5. The taxes and duties are estimated around US$50.81 million equivalent.
157. Detailed cost breakdown for the HEIS (Component A1) is given in Table 2.6. Farmers would be paid for 40% of the cost of material and labor and 60% cost would be provided by the Project in addition to the administrative and management costs.
158. In case of equipment for precision land leveling (Component A2) the cost sharing arrangement is that GoPunjab would provide subsidy upto US$2,650 equivalent while the remaining cost would be borne by the beneficiary. The beneficiary‟s contribution would be up to US$16,176 covering contribution to laser unit, scraper, tractor unit and other items required.
159. The cost of improvement for various types of watercourses is given in Table 2.7 and of the overall component in Table 2.8. Detailed cost estimate for each type of watercourse along with a breakdown of cost of material, skilled and unskilled labor is provided in Tables 2.7 to 2.12. The project would provide the cost of material and administrative cost while the labor cost would be provided by the farmers. In the case of water scheme improvements in Barani areas, the project would provide the material cost upto US$2,950 and farmers would provide labor and cost of any additional material. Administrative and management cost would be provided by the Project. This would result in about 40% of the cost to be borne by farmers and 60% by the Project, For other watercourse works the cost sharing arrangements ranges from 35% to 43% depending upon the type of improvement and total cost of the works.
160. Project Financing. Considering the cost sharing arrangements for the various components and that the Project would finance component C and D, the overall share of beneficiaries in the project is 41% or US$173.5 million. US$250 million of the cost would be financed by IDA or about 59%.
39 Table 2.3: Indus Basin Water System Main Features (Rivers, Barrages, Canals, Link Canal, Reservoirs) River Barrage Water/Irrigation Canal Link Canal to Command Discharge transfer water / To a Area (Million Capacity River or a Canal Acres) (000 cfs) System Indus Jinnah (P) Thal 2.100 10.000 Chashma Chasma Right Bank Canal (P) 0.266 1.810 (P/N) Chasma Right Bank Canal (N) 0.367 4.880 Chashma- Jehlum - 22.000 /Jehlum Taunsa (P) Dera Ghazi Khan Canal 1.232 11.550 Muzafargarh Canal 0.975 8.900 Tausnsa –Punjnad / - 12.000 Chenab Gudu (S) Desert Pat Feeder 1.356 13.275 Begari Sind Feeder 1.002 14.760 Ghotki Feeder 1.002 8.490 Rainee Canal 0.412 5.155 Sukhar (S) North West 1.215 9.500 Rice 0.519 13.370 Dadu 0.584 5.400 Khairpur West 0.417 2.650 Khairpur East 0.373 3.440 Rohri 2.561 16.385 Nara 2.474 15.000 Kotri (S) Kalari 0.592 9.010 Lined Channel/Akram Wah 0.540 4.100 Fuleli 0.929 14.860 Pinyari 0.758 13.390 Jehlum Below (P) Upper Jehlum 0.537 9.030 Mangla (Bong) Lower Jehlum 1.476 6.600 Rasul (P) Rasul-Qadirabad / - 19.000 Chenab Chenab Marala (P) Marala Ravi/Ravi 22.000 Marala-Ravi Link Off-take 0.162 Upper Chenab 1.017 16.850 Upper Chenab/Ravi - 12.000 BRBD/to feed three - 5.440 canals shown below BRBD-Raya 0.424 5.440 BRBD-CBDC 0.649 4.495 BRBD-Upper Dipalpur 0.36 2.450 Khanki (P) Lower Chenab Main Line 0.142 11.800 (Direct) Lower Chenab (LC)- Jhang 1.168 3.135 Lower Chenab (LC)-Gugera 1.866 7.425 Qadirabad (P) Qadirabad - 15.000 Balloki/Ravi LC Feeder/LC Jhang - 4.100 and Gugera Trimmu (P) Rangpur 0.344 2.700 Haveli 0.179 5.170 Trimmu-Sidnai/Ravi - 12.500
40 River Barrage Water/Irrigation Canal Link Canal to Command Discharge transfer water / To a Area (Million Capacity River or a Canal Acres) (000 cfs) System Ravi Balloki (P) Lower Bari Doab 1.761 8.000 Balloki-Sulemanki - 27.500 (BS) / Sutlej BS-Lower Dipalpur 0.615 27.500 Sidhnai (P) Sidhnai Canal 0.869 4.060 Sidhnai-Mailsi - 10.100 (SM)/Sutlej System SM-Lower Pakpatan 0.370 10.100 SM-Lower Mailsi 0.690 10.100 SM-Lower Bahawal 0.605 4.000 Sutlej Sulemanki (P) Upper Pakpatan 1.050 6.590 Fordwah 0.471 3.450 Sadiqia 0.969 5.500 Pakpatan-Islam /Sutlej - 1.160 Islam (P) Qaim 0.044 0.483 Upper Bahawal 0.251 1.400 Panjnad (P) Panjnad 1.348 10.480 Abbasai 0.248 1.390 Swat Amandara(N) Upper Swat 0.279 2.220 Munda (N) Lower Swat 0.182 1.010 Kabul Warsak (N) Warsak 0.119 0.310 Kabul 0.048 0.45 1. In addition to the above additional canals are under construction and would be completing soon. (i) Greater Thal Canal (10,500 cfs capacity) taking water from RD 180+222 of Chasma-Jehlum Link with command area of 1.560 Ma in Punjab; (ii) Kachhi Canal (5,300 cfs) off-taking from Taunsa Barrage with command area of 0.550 Ma in Balochistan; and (iii) the capacity of Raine Canal off-taking from Guddu Barrage is planned to be increased to 10,000 cfs. 2. Also discharge capacity of LBDC canal from Balloki Barrage is being increased to 9,780 cfs. 3. The Indus System has four major storage reservoirs Tarbela and Chasma on Indus with current live storage capacity of 5.96 and 0.275 MAF respectively; Mangla on Jehlum which has been recently raised with live storage capacity of 7.15, MAF and Chotiari Reservoir with live storage capacity of 1.1 MAF fed from Nara canal off-taking from the Sukkher Barrage. 4. Location of barrage is indicated as (P) in Punjab, (S) in Sindh, (N) in NWFP. Pat and Desert Feeder canals from Gudu barrage and Kirther Branch from Northwest canal from Sukkur Barrage supply water to Balochistan. IBWS commend area in Punjab is 22.19 Ma; Sindh 13.38 Ma , NWFP 0.99 Ma and Balochistan 1.36 MA
41 Table 2.4 Project Cost by Component (US$ million) Units Amount Total Farmers IDA US$ M US$ M US$ M A. Installation of High Efficient Irrigation Systems A1. Drip and high efficiency Systems Acres 120,000 177.5 64.5 113.0 A2. Laser Leveling Equipment Units 3,000 56.5 48.5 7.9 Sub-total A 234.0 113.0 120.9 B. Watercourse Improvement Program B1. Imporvement of Watercourse Number 5,500 126.4 46.1 80.3 B2. Imporvement of W/C partially imp, Number 1,500 21.0 8.9 12.1 B3. Improvement of W/C Barani Areas Number 2,000 12.5 5.5 7.0 Sub-total B 9,000 160.0 60.5 99.5 C. Improved Agriculture Technology/Practies and Monitoring and Evaluation C1. Introduction of Improved Agricultural Practices 7.0 7.0 C2. M&E Project Management Support 2.0 2.0 Sub-total C 9.0 9.0 D. Project Management Support, Supervision Teechnical Assistance Traning D1. Project Implemenmtation and Management 10.0 10.0 D2. Project Supervision and Third Party Validation 9.5 9.5 D3. Strattegic Studies, TA and training etc. 1.0 1.0 Sub-total D 20.5 20.5 Total 423.5 173.5 250.0 Taxes and duties 50.81 41%
Table 2.5 Project Cost by Expenditure Category (US$ million) Incremen tal Consulting Operatin Works Goods Services g costs Training Total A. Installation of High Efficient Irrigation Systems A1. Drip and high efficiency Systems 177.5 - - 177.5 A2. Laser Leveling Equipment 56.5 - 56.5 Sub-total A 234.0 - - 234.0 B. Watercourse Improvement Program 160.0 - - 160.0 C. Improved Agriculture Technology/Practies and Monitoring and Evaluation - C1. Introduction of Improved Agricultural Practices - - 7.0 7.0 C2. M&E Project Management Support - - 2.0 2.0 Sub-total C - 9.0 9.0 D. Project Management Support, Supervision Teechnical Assistance Traning - D1. Project Implemenmtation and Management 2.0 8.0 10.0 D2. Project Supervision and Third Party Validation 9.5 9.5 D3. Strattegic Studies, TA and training etc. - 0.2 0.3 0.5 1.0 Sub-total D 9.7 8.3 0.5 20.5 Total 394.0 - 18.7 8.3 0.5 423.5
42 Table 2.6 Cost breakdown for HEIS Component Total IDA Farmers Unit Cost Cost US$ US$ Units Acres US$ US$M Millions Milllion HEIS 3 Acres Orchard 1,500 4,500 1,679 7.6 4.8 2.7 HEIS 3 Acres Vegetables 1,950 5,850 2,110 12.3 7.9 4.5 HEIS 3 Acres Row Crops 1,950 5,850 2,229 13.0 8.3 4.7 Sub-Total/Average 5,400 16,200 2,006 32.9 21.0 12.0 HEIS 5 Acres Orchard 1,800 9,000 1,241 11.2 7.1 4.1 HEIS 5 Acres vegetables 1,800 9,000 1,733 15.6 9.9 5.7 HEIS 5 Acres Row Crops 1,800 9,000 1,748 15.7 10.0 5.7 Sub-Total/Average 5,400 27,000 1,574 42.5 27.0 15.5 HEIS 10 Acres Orchard 1,600 16,000 1,216 19.4 12.4 7.1 HEIS 10 Acres Vegetables 1,600 16,000 1,555 24.9 15.8 9.0 HEIS 10 Acres Row Crops 1,600 16,000 1,366 21.9 13.9 7.9 Sub-Total/Average 4,800 48,000 1,379 66.2 42.1 24.1 HEIS 15 Acres Orchard 650 9,750 1,030 10.0 6.4 3.7 HEIS 15 Acres Vegetables 635 9,525 1,525 14.5 9.2 5.3 HEIS 15 Acres Row Crops 635 9,525 1,188 11.3 7.2 4.1 Sub-Total/Average 1,920 28,800 1,248 35.9 22.8 13.0 Total 17,520 120,000 1,552 177.5 113.0 64.5
Table 2.7 Cost of Improvement of one Watercourse (US$ 000) Government Farmers Admin/Ma Type of Improvements Material ngement Total Material Labor Total Total 1. Brick Lined New 30% 13.43 2.20 15.62 - 8.53 8.53 24.16 2. Concrete pre-cast New 30% 11.96 2.02 13.98 - 8.28 8.28 22.26 3. Partially Completed Brick 7.36 1.34 8.69 - 5.99 5.99 14.69 4. Partially Complete Concrete 6.46 1.23 7.69 - 5.88 5.88 13.58 5. Watercourses in Barani Area - Pipes etc. 2.94 0.44 3.38 1.05 0.36 1.42 4.79 Concrete Channels 2.94 0.70 3.65 0.91 3.19 4.11 7.75
Table 2.8 Summary cost of Watercourse Improvement component US$ millions Government Farmers Type of Improvemts Number Material Admin/M Total Material Labor Total Total
Improvement of W/C in Canal Area 5,500 68.9 11.5 80.3 - 46.1 46.1 126.4 Imporovemnt Partially Completed W/C 1,500 10.2 1.9 12.1 - 8.9 8.9 21.0 Improvement of non Canal Areas 2,000 5.9 1.1 7.0 2.0 3.6 5.5 12.5 Total 9,000 85.0 14.5 99.5 2.0 58.5 60.5 160.0
43 Table 2.9 Detailed cost for improvement of a watercourse – Brick lined 1. Cross Section of a Typical Watercourse
Lined Section Dimensions Depth = 52 cm (20 inches) Bottom Width = 60 cm (24 inches) Floor Thickness = 7 cm (2.75 inches) Floor width = 131.5 cm (52 inches) Wall Thickness = 23 cm (9 inches)
2. Basic Data of a Typical Watercourse to be Lined Unit Items Unit Qty Volume Total Volume (Cum) (Cum) Length of Watercourse m 3,900 Design Discharge lps 75 Average Slope m/m 0.0004 Length of Lining (30%) m 1,170 0.3313 387.56 Nakka Structures (0.51 m dia) number 45 0.52 23.40 Culvert number 3 4.00 12.00 Sign Board number 1 0.50 0.50 Drop Structure number 5 0.25 1.25 Animal Wallows number 0.18 15.00 2.70 427.41 3. Estimated Materials & Cost Unit Cost Total Cost Items Unit Qty (Rs.) (Rs.) Bricks Nos. 213,706 3,600 /1,000 769,343 Cement bag 799 350 /Bag 279,741 Sand cu m 111 600 /Cum 66,676 Nakkas Nos. 45 570 /Nakka 25,650 Total Material cost 1,141,410 Material Cost per Running Meter (Rs.) 976 4. Cost of Labour & Masons (Farmers' Share) Labor Masons Items Total (Rs.) (Rs.) (Rs.) Earthen improvement of 2,730 meters section 245,700 - 245,700 (0.2 men-days/meter @ Rs.450/man-days). Alternate irrigation channel for constriction of 1,170 meters lined section 47,385 - 47,385 (0.09 men-days/meter @ Rs.450/man-days). Excavation of section to be lined 1,170 meters 78,975 - 78,975 (0.15 men-days/meter @ Rs.450/man- days) Construction of lined section 1,170 meters 87,750 204,750 292,500 @ Rs.250/meter. Installation of 45 nakkas @ Rs.800/- each 18,000 18,000 36,000 Construction of 3 culverts @ Rs.5,000/- each 7,500 7,500 15,000 Construction of 0.18 Animal wallows @ Rs.20,000/- each 1,620 1,980 3,600 Construction of 05 drop structures @ Rs.700/- each 1,750 1,750 3,500 Construction, Painting and Writing of Sign Board @ Rs.2,500/- each 1,250 1,250 2,500 Total Labor & Masons 489,930 235,230 725,160
5. Overall Unit Cost of Watercourse Improvement Items %age Rupees USD= Rs 85 i Cost of Materials 61% 1,141,410 13,428 ii Cost of Labour for Earthen Construction 13% 245,700 2,891 iii Cost of Labour for Lining 13% 244,230 2,873 iv Cost of Masons 13% 235,230 2,767 v Total (i+ii+iii+iv) 100% 1,866,570 21,960 vi Administration Cost 186,657 2,196 vii G.Total (v+vi) 2,053,227 24,156 6. Cost Sharing i. Government Share 56% 1,141,410 13,428 ii. Farmers' Share 35% 725,160 8,531 iii Administration Cost 9% 186,657 2,196 Total 100% 2,053,227 24,156
44 Table 2.10 Detailed cost for improvement of a watercourse – Precast Parabolic Canalets 1. Cross Section of a Typical Watercourse
PCPS Size Maximum Height, D 48 cm Maximum Width, T 67 cm Designed Flow Depth, d 41 cm Free Board, FB 7 cm
2. Basic Data of a Typical Watercourse to be Lined Unit Volume Total Volume Items Unit Quantity (Cum) (Cum) Length of Watercourse m 3,900 Design Discharge lps 75 Average Slope m/m 0.0004 Length of Lining (30%) m 1,170 Nakka Structures (0.51 m dia) number 45 0.52 23.40 Culvert number 3 4.00 12.00 Sign Board number 1 0.50 0.50 Drop Structure number 5 0.25 1.25 Animal Wallows number 0.18 15.00 2.70 39.85 3. Estimated Materials & Cost Total Cost Items Unit Quantity Unit Cost (Rs.) (Rs.) PCPL Segments (# 5) Nos. 1,070 800 /Segment 855,916 Bricks Nos. 19,925 3,600 /1,000 71,730 Cement (including Joints) bag 81 350 /bag 28,523 Sand (including in bed) cu m 58 600 /Cum 34,585 Nakkas Nos. 45 570 /nakka 25,650 Total Cost of Material 1,016,403 Material Cost per Running Meter (Rs.) 869 4. Cost of Labor & Masons (Farmers' Share) Items Labor (Rs.) Masons (Rs.) Total Earthen improvement of 2,730 meters section 245,700 - 245,700 (0.2 men-days/meter @ Rs.450/man-days). Alternate irrigation channel for constriction of 1,170 meters lined section 43,173 - 43,173 (0.09 men-days/meter @ Rs.450/man-days). Excavation of section to be lined 1,170 meters 78,975 - 78,975 (0.15 men-days/meter @ Rs.450/man- days) PCP Segments laying, jointing and back earth filling (1,170 meters) 137,475 137,475 274,950 @ Rs.235/meter. Installation of 45 nakkas @ Rs.800/- each 18,000 18,000 36,000 Construction of 3 culverts @ Rs.5,000/- each 7,500 7,500 15,000 Construction of 0.18 Animal wallows @ Rs.20,000/- each 1,620 1,980 3,600 Construction of 05 drop structures @ Rs.700/- each 1,750 1,750 3,500 Construction, Painting and Writing of Sign Board @ Rs.2,500/- each 1,250 1,250 2,500 Total Labor & Masons 535,443 167,955 703,398
5. Overall Unit Cost of Watercourse Improvement Items %age Rupees USD= Rs 85 i Cost of Materials 59% 1,016,403 11,958 ii Cost of Labor for Earthen Construction 14% 245,700 2,891 iii Cost of Labor for Lining 17% 289,743 3,409 iv Cost of Masons 10% 167,955 1,976 v Total (i+ii+iii+iv) 100% 1,719,801 20,233 vi Administration Cost 171,980 2,023 vii G.Total (v+vi) 1,891,781 22,256 6. Cost Sharing i. Government Share 54% 1,016,403 11,958 ii. Farmers' Share 37% 703,398 8,275 iii. Administration Cost 9% 171,980 2,023 Total 100% 1,891,781 22,256
45 Table 2.11 Detailed cost for Improvement of a partially improved Watercourse – Brick Lining 1. Cross Section of a Typical Watercourse
Lined Section Dimensions Depth = 52 cm (20 inches) Bottom Width = 60 cm (24 inches) Floor Thickness = 7 cm (2.75 inches) Floor width = 131.5 cm (52 inches) Wall thickness = 23 cm (9 inches)
2. Basic Data of a Typical Watercourse to be Lined Unit Volume Total Volume Items Unit Qty (Cum) (Cum) Length of Watercourse m 3,900 Design Discharge lps 75 Average Slope m/m 0.0004 Length of Lining (30%) m 644 0.3313 213.16 Nakka structures (0.51 m dia) number 20 0.52 10.40 Culvert number 2 4.00 8.00 Sign Board number 1 0.50 0.50 Drop Structure number 2 0.25 0.50 Animal Wallows number 0.18 15.00 2.70 235.26 3. Estimated Materials & Cost
Items Unit Qty Unit Cost (Rs.) Total Cost (Rs.) Bricks Nos. 117,630 3,600 /1,000 423,467 Cement bag 440 350 /Bag 153,977 Sand cu m 61 600 /Cum 36,700 Nakkas Nos. 20 570 /Nakka 11,400 Total Material cost 625,545 Material Cost per Running Meter (Rs.) 972
4. Cost of Labor & Masons (Farmers' Share) Items Labor (Rs.) Masons (Rs.) Total (Rs.) Earthen improvement of 2,730 meters section 245,700 - 245,700 (0.2 men-days/meter @ Rs.450/man-days). Alternate irrigation channel for constriction of 644 meters lined section 26,062 - 26,062 (0.09 men-days/meter @ Rs.450/man-days). Excavation of section to be lined 644 meters 43,436 - 43,436 (0.15 men-days/meter @ Rs.450/man- days) Construction of lined section 644 meters 48,263 112,613 160,875 @ Rs.250/meter. Installation of 20 nakkas @ Rs.800/- each 8,000 8,000 16,000 Construction of 2 culverts @ Rs.5,000/- each 5,000 5,000 10,000 Construction of 0.18 Animal wallows @ Rs.20,000/- each 1,620 1,980 3,600 Construction of 02 drop structures @ Rs.700/- each 700 700 1,400 Construction, Painting and Writing of Sign Board @ Rs.2,500/- each 1,250 1,250 2,500 Total Labor & Masons 380,031 129,543 509,573
5. Overall Unit Cost of Watercourse Improvement Items %age Rupees USD= Rs 85 i Cost of Materials 55% 625,545 7,359 ii Cost of Labor for Earthen Construction 22% 245,700 2,891 iii Cost of Labor for Lining 12% 134,331 1,580 iv Cost of Masons 11% 129,543 1,524 v Total (i+ii+iii+iv) 100% 1,135,118 13,354 vi Administration Cost 113,512 1,335 vii G.Total (v+vi) 1,248,629 14,690 6. Cost Sharing i. Government Share 50% 625,545 7,359 ii. Labor Cost (Farmers' Share) 41% 509,573 5,995 iii Administration Cost 9% 113,512 1,335 Total 100% 1,248,629 14,690
46 Table 2.12 Detailed cost for Improvement of a partially Improved Watercourse –Concrete Canalets 1. Cross Section of a Typical Watercourse
PCPS Size Maximum Height, D 48 cm Maximum Width, T 67 cm Designed Flow Depth, d 41 cm Free Board, FB 7 cm
2. Basic Data of a Typical Watercourse to be Lined Unit Volume Total Volume Items Unit Qty (Cum) (Cum) Length of Watercourse m 3,900 Design Discharge lps 75 Average Slope m/m 0.0004 Length of Lining m 644 Nakka Structures (0.51 m dia) number 20 0.52 10.40 Culvert number 2 4.00 8.00 Sign Board number 1 0.50 0.50 Drop Structure number 2 0.25 0.50 Animal Wallows number 0.18 15.00 2.70 22.10 3. Estimated Materials & Cost Unit Qty Unit Cost (Rs.) Total Cost (Rs.) PCPL Segments (# 5) Nos. 588 800 /Segment 470,753 Bricks Nos. 11,050 3,600 /1,000 39,780 Cement (including Joints) bag 45 350 /bag 15,810 Sand (including in bed) cu m 19 600 /Cum 11,368 Nakkas Nos. 20 570 /nakka 11,400 Total Cost of Material 549,111 Material Cost per Running Meter (Rs.) 853 4. Cost of Labor & Masons (Farmers' Share) Items Labor (Rs.) Masons (Rs.) Total (Rs.) Earthen improvement of 2,730 meters section 245,700 - 245,700 (0.2 men-days/meter @ Rs.450/man-days). Alternate irrigation channel for constriction of 644 meters lined section 26,062 - 26,062 (0.09 men-days/meter @ Rs.450/man-days). Excavation of section to be lined 644 meters 43,436 - 43,436 (0.15 men-days/meter @ Rs.450/man- days) PCP Segments laying, jointing and back earthfilling (644 meters) 75,611 75,611 151,223 @ Rs.235/meter. Installation of 20 nakkas @ Rs.800/- each 8,000 8,000 16,000 Construction of 2 culverts @ Rs.5,000/- each 5,000 5,000 10,000 Construction of 0.18 Animal wallows @ Rs.20,000/- each 1,620 1,980 3,600 Construction of 02 drop structures @ Rs.700/- each 700 700 1,400 Construction, Painting and Writing of Sign Board @ Rs.2,500/- each 1,250 1,250 2,500 Total Labour & Masons 407,379 92,541 499,921
5. Overall Unit Cost of Watercourse Improvement Items %age Rupees USD= Rs 85 i Cost of Materials 52% 549,111 6,460 ii Cost of Labour for Earthen Construction 23% 245,700 2,891 iii Cost of Labour for Lining 15% 161,679 1,902 iv Cost of Masons 9% 92,541 1,089 v Total (i+ii+iii+iv) 100% 1,049,031 12,342 vi Administration Cost 104,903 1,234 vii G.Total (v+vi) 1,153,934 13,576 6. Cost Sharing i. Government Share 48% 549,111 6,460 ii. Labour Cost (Farmers' Share) 43% 499,921 5,881 iii. Administration Cost 9% 104,903 1,234 Total 100% 1,153,934 13,576
47 Table 2.13 Detailed cost for Improvement Watercourse in Barani Area –Pipeline 1. Basic Parameters Items Unit Qty Area acre 12 Discharge lps 14 Length of Scheme m 450 Pvc pipe 4" m 444 GI pipe 4" m 6 Sluice valves number 6 N.R.V number 1 D. Points number 7 Centrifugal pump number 1
2. Estimated Materials A-Pipe line Unit Rate Amount S.# Items Size Unit Qty (Rs.) (Rs.) 1 Pvc pipe 4" m 444 365 162,060 2 GI pipe 4" m 6 1,200 7,200 3 Sluice valves 4" No. 6 4,200 25,200 4 N.R.V 4" No. 1 2,000 2,000 5 Valve socket 4" No. 10 161 1,610 6 T. PVC 4" No. 6 710 4,260 7 Bend PVC 4" No. 25 200 5,000 8 Bend GI 4" No. 12 1,200 14,400 9 M.S flange 4" No. 22 250 5,500 10 Solution 500 gm No. 5 200 1,000 11 Gas kit 4" No. 23 30 690 12 Nut bolt - No. 95 30 2,850 13 Centrifugal pump 5"x 4" No. 1 38,000 38,000 14 Diesel engine No. 1 44,000 44,000 15 V-Belt No. 1 2,000 2,000 16 Pulley No. 2 1,300 2,600 17 Iron template for pumping unit No. 1 1,500 1,500 18 Foundation bolts No. 8 100 800 19 Suction pipe 5" ft 15 300 4,500 20 Foot Valve Brass No. 1 4,500 4,500 Total 329,670 B- Construction Works for Seven (7) Distribution Points
Unit Rate Amount Items Unit Qty (Rs.) (Rs.) Bricks No./1,000 1,225 3,700 4,533 Cement Bag 8 360 2,869 Sand Cum 0.79 600 471 Crush Cum 1.19 1,450 1,726 Total: 9,598 Total Material Cost (A+B) 339,268 C- Labor+ installation Cost Unit Rate Amount S.# Items Size Unit Quantity (Rs.) (Rs.) 1 Distribution points No. 7 1,000 7,000 2 Fixing of sluice valves and N.R.V No. 7 160 1,120 3 Pumping unit fitting and foundation No. 1 5,000 5,000 4 Excavation of trenches Cum 179 80 14,280 5 Laying and jointing of pvc pipes 4" Meter 320 8 2,624 6 Laying and jointing of GI pipes 4" Meter 4 24 97 7 Back filling 320x90% Cum 161 6 884 Total 31,005 Total Cost (A+B+C) 370,273 3. Overall Unit Cost of Installation of Irrigation Scheme Items %age Rupees USD=85 i Cost of Materials 92% 339,268 3,991 ii Cost of Labor 8% 31,005 365 iii Total Cost (i+ii) 100% 370,273 4,356 iv Administration Cost 37,027 436 v G. Total Cost (i+ii+iii) 407,300 4,792 4. Cost Sharing i. Government Share 61% 250,000 2,941 ii. Farmers' Share 30% 120,273 1,415 iii Administration Cost 9% 37,027 436 Total 100% 407,300 4,792
48 Table 2.14 Detailed cost for Improvement Watercourses Barani Area –Concrete Canalet 1. Cross Section of a Typical Watercourse
PCPS Size Maximum Height, D 31 cm Maximum Width, T 45.7 cm Designed Flow Depth, d 23 cm Free Board, FB 8 cm
2. Basic Data of a Typical Watercourse to be Lined Unit Volume Total Volume Items Unit Quantity (Cum) (Cum) Length of Watercourse m 2,000 Design Discharge lps 28 Average Slope m/m 0.0010 Length of Lining m 600 Nakka Structures (0.38 m dia) number 25 0.38 9.50 Culvert number 2 3.00 6.00 Sign Board number 1 0.50 0.50 Drop Structure number 5 0.20 1.00 17.00 3. Estimated Materials & Cost Unit Quantity Unit Cost (Rs.) Total Cost (Rs.) PCPL Segments (# 2) Nos. 549 475 /Segment 260,615 Bricks Nos. 8,500 3,600 /1,000 30,600 Cement (including Joints) bag 34 350 /bag 11,841 Sand (including in bed) cu m 28 600 /Cum 17,071 Nakkas Nos. 25 300 /nakka 7,500 Total Cost of Material 327,627 Material Cost per Running Meter (Rs.) 546 4. Cost of Labor & Masons (Farmers' Share) Items Labor (Rs.) Masons (Rs.) Total (Rs.) Earthen improvement of 1,400 meters section 126,000 - 126,000 (0.2 men-days/meter @ Rs.439/man-days). Alternate irrigation channel for constriction of 600 meters lined section 24,300 - 24,300 (0.09 men-days/meter @ Rs.439/man-days). Excavation of section to be lined 600 meters 35,550 - 35,550 (0.15 men-days/meter @ Rs.439/man- days) PCP Segments laying, jointing and back earthfilling (600 meters) 30,000 30,000 60,000 @ Rs.100/meter. Installation of 25 nakkas @ Rs.600/- each 7,500 7,500 15,000 Construction of 2 culverts @ Rs.3,000/- each 3,000 3,000 6,000 Construction of 05 drop structures @ Rs.500/- each 1,250 1,250 2,500 Construction, Painting and Writing of Sign Board @ Rs.2,000/- each 1,000 1,000 2,000 Total Labor & Masons 228,600 42,750 271,350 5. Overall Unit Cost of Watercourse Improvement Items %age Rupees USD= Rs 85 i Cost of Materials 55% 327,627 3,854 ii Cost of Labor for Earthen Construction 21% 126,000 1,482 iii Cost of Labor for Lining 17% 102,600 1,207 iv Cost of Masons 7% 42,750 503 v Total (i+ii+iii+iv) 100% 598,977 7,047 vi Administration Cost 59,898 705 vii G.Total (v+vi) 658,874 7,751 6. Cost Sharing i. Government Share 38% 250,000 2,941 ii. Farmers' Share 53% 348,977 4,106 iii. Administration Cost 9% 59,898 705 Total 100% 658,874 7,751
49 Figure 2.3: Irrigation networks in the watercourse command, community and farm channels
50
Figure 2.4: Unimproved and improved watercourse, unleveled field and laser leveling process, DRIP Irrigation
51 Annex 3: Implementation Arrangements Punjab Irrigated Agriculture Productivity Improvement Program Phase-I Project (PIPIPP)
Project Institutional and Implementation Arrangements
161. The Director General Agriculture Water Management (DGAWM) would be responsible for the implementation of the Project and act as the Project Director of the Project. The Directorate of OFWM has demonstrated that it has the capacity to implement such programs in Punjab. It has implemented several World Bank, ADB and JICA financed projects and national programs for watercourse and high efficiency improvements. Detailed implementation arrangements are described below and presented in Chart-I.
162. DGAWM reports to Secretary Agriculture of the GoPunjab. DGAWM, as the Project Director, would be responsible for all aspects of the project, including technical, implementation, procurement, financial management, and overseeing the technical assistance and training program etc. DGAWM would be supported by: i) Director Water Management Headquatrs (DWMHQ); (ii) two Deputy Project Directors at the Headquarters (DPD (HQ)) - one DD (HQ) for implementation and coordination of work on the HEIS and Precision land leveling and second DD (HQ) for watercourse improvements; (iii) Deputy Director Finance, and accounting staff; (iv) a highly qualified Procurement Specialist and supporting procurement staff; and (v) support staff.
163. The on-farm water management function, that is water management below “mogha” (outlet from the distributary canal and command area of community watercourse that is managed by farmers), has been devolved to the District Governments under the Devolution Plan of 2001. Under this set-up, an office of the District Officer (OFWM) has been setup in all 36 districts of the Province for supervision of water management activities. Tehsil is the lowest tier of the administration where the office of Deputy District Officer (DDO, OFWM) carries out the execution of works through field staff comprising : (i) DDO and one Water Management Officer (WMO); (ii) two Water Management Supervisors WMSs); and support staff. Out of 133 tehsils in the province, offices of DDO (OFWM) have been established at 101 Tehsil Headquarters of which 83 are in irrigated area and 18 are in Barani (un-irrigated areas). The remaining will be established under the project as needed.
164. Regional Project Coordination Unit (RPCU). Three Regional Project Coordination Units (RPCU) have been established at Lahore, Multan and Rawalpindi to help coordinate and supervise the project activities at the district and Tehsil level. The RPCU would be headed by one Regional Project Director (RPD) who will be supported by one Deputy Director (Technical), one Assistant Director (Technical) and a Deputy Director (Finance).
165. District Office (OFWM) would be responsible for supervision, coordination and internal monitoring at the district level. Its capacity would be strengthened by provision of incremental staff for establishing HEIS Field Teams, comprising two WMOs, one Computer Operator, one Vehicle Driver, two surveyors and Rodmen. The incremental staff shall be recruited on contract basis for the duration of the Project. In addition, the incremental staff comprising WMSs and Rodmen will be provided to DDO (OFWM) offices as per the work load/targets in various Tehsils.
166. Project Supervision and Coordination. Several committees have been established to ensure provincial oversight and coordination in implementation at various levels:
52 Chart I Institutional Arrangements
GOVERNMENT OF THE PUNJAB
Chairman P&DD Project Policy Committee
Secretary Agriculture Project Steering Committee
DGA (WM) - Project Director Director (Hqs) Director (Training) Deputy Project Director (Hqs) (HEIS & LASER) Deputy Project Director (Hqs) (W/C) Deputy Director (Accounts) Project Deputy Director (Hqs) Implementation Assistant Directors (Technical) Supervision Procurement Specialist Consultants Project (PISCs) Implementation Committee
Monitoring and Evaluation Regional Project Coordination Consultants (M&ECs) Unit (RPCUs) Regional Project Director (Lahore, Multan, Rawalpindi) Technical Deputy Director (Technical) Assistance and Assistant Directors (Technical) Training Superintendent Consultants Support Staff (TATCs) District Implementation Committee
District Unit District Unit (Irrigated Area) (Barani Area) District Officer (OFWM) District Officer (OFWM) Support Staff Support Staff
Tehsil Unit Tehsil Unit (Irrigated Area) (Irrigated Area) Deputy District Officer Deputy District Officer Water Management Officer Water Management Officer Supervisors Supervisors Support Staff Support Staff
53 (i) Project Policy Committee. The Project Policy Committee (PPC) would provide planning and strategic guidance for project implementation as well as facilitate inter-agency coordination at the highest level. PPC would be chaired by the Chairman, Planning and Development Board, Punjab with Secretaries of Agriculture, Irrigation and Power (IPD), Local Government (LG) and Finance Departments (FD) as its members. DGAWM will be the Member-Secretary of PPC which would initially meet quarterly or as often as required. The PPC would, inter alia: (a) make policy decisions for smooth project execution; (b) ensure coordination among all stakeholders; (c) arrange bridge financing for local resources during any financial constraint from donors; (d) constitute committee/s for resolving any policy related issue; (e) modify implementation mechanism for project interventions, if needed; (f) approve criterion and mechanism for reappointment of NPIW contractual staff in proposed project; and (g) resolve issues constraining smooth implementation of envisaged activities.
(ii) Project Steering Committee (PSC). The Project Steering Committee (PSC) would be chaired by Secretary Agriculture, GoPunjab with DGAWM, Punjab; Chief (Agriculture) Planning and Development Department; Additional Secretary (Expenditure), Finance Department; and Additional Secretary (Tech), Irrigation & Power Department as its members. DGAWM would act as Secretary of the PSC.
PSC would meet quarterly to review the physical and financial progress as well as to suggest means to overcome constraints faced in the field for execution of project activities. The PSC will (a) approve annual work plan and streamline flow of funds; (b) monitor physical and financial progress; (c) identify the constraints in achieving targets and devise strategies for their redressal; (d) review provincial/district monitoring reports and take appropriate actions; (e) constitute committee/s for approval of equipment specifications/standards, prequalification of supply & services companies for LASER land leveling units, HEISs etc., preparation of technical pro forma etc.; (f) formulate committee/s to resolve specific issues relating to civil works, unspent funds, rates of construction materials, and make recommendations for decision by the PPC; (g) ensure implementation of decisions of PPC; (h) devise mechanism for transparent monitoring of project activities; and ( i) Review subsidy slabs/financial assistance level and modify for smooth implementation of project activities.
(iii) Project Implementation Committee (PIC). The Project Implementation Committee (PIC) would be chaired by DGAWM with Director (Headquarters), Director (Training), Deputy Project Directors (Hqs.), Regional Project Directors, Deputy Directors (Hqs.), District Officers (OFWM), and Team Leaders of Project Implementation Supervision Consultants (PISCs), Monitoring & Evaluation Consultants (M&ECs) and Technical Assistance & Training Consultants (TATCs) as its members. Director (Headquarters) would act as the Secretary of the committee. The PIC would meet every month to review the physical and financial progress as well as to suggest means to overcome constraints faced in execution of project activities. The major functions of PIC would, inter alia, be as follows: (a) prepare annual work plan; (b) review physical and financial progress; (c) coordinate and supervise project activities; (d) ensure implementation of decisions of PSC; (e) formulate mechanism for transparent external monitoring of project activities; and (f) review monitoring reports and rectification of the shortfalls. (v) District Implementation Committee (DIC) The District Implementation Committee (DIC) would be constituted in each district to implement the project at the district level. It would comprise of (i) District Coordination Officer who would chair the DIC; and (ii) its members who would be Executive District Officer (Finance & Planning), Executive District Officer (Agriculture), Regional Project Director, Representative of the Revenue Department as Members. District Officer (OFWM) who would be Member/Secretary. The DIC is proposed to meet on a monthly basis to review the physical and financial progress, ensure effective project implementation, oversee the proper flow of
54 funds to WUAs, arrange transparent internal monitoring of project activities, and make recommendations to the PIC for improving the pace of implementation. (vi) District Rate Committee (DRC). The District Rate Committee (DRC) would be constituted under the DIC to decide the rates of construction materials for improvement of watercourses and would consist of Executive District Officer (Agriculture) as Chairman and, Field Engineer (PISC), District Officer (Buildings) as Members and the District officer (OFWM) as the Secretary. The DRC will periodically review rates of various construction materials and fix price for different materials for clusters on a geographical basis.
167. Project Implementation Supervision Consultants (PISCs). The Project Implementation Supevision Consultants (PISCs) would be selected through an international selection process under Component D2 of the Project. They would report to DG OFWM and check the implementation program, quality of works, delivery of works, and certify the quantities of work carried out and the payments. They would also help the DGAWM in project planning and management, quarterly progress reporting, procurement planning, financial management and overall project management.
168. Monitoring and Evaluation Consultants (M&ECs). The M&ECs (Component C2) would help in (a) monitoring of physical progress; (b) monitoring and evaluation of Project impact; and (c) review and supervision of the environmental and social aspects of the Project.
169. Technical Assistance and Training Consultants (TATCs). The TATCs‟ services (under Component C1) would be required for training of OFWM staff in modern water management technologies & techniques, capacity building of farmers for adoption of improved water conservation practices, preparation of technical manuals and guidelines, use of Geographic Information System (GIS) and Remote Sensing (RS) techniques for database management, identification & recommendation of modern water management methods from all over the world best suited to the Punjab, strategic studies for accelerating adoption of improved irrigation etc. The same will facilitate to provide technical support to OFWM staff at provincial, regional, district, and field level for smooth implementation of the proposed project interventions.
Financial Management, Disbursements and Procurement
Financial Management
170. Financial Management (FM) assessment of the office of DGAWM was carried out as part of the preparation of the Program. The implementing agency, DGAWM, has implemented six World Bank- assisted Programs up to 2002, but has not implemented any World Bank-assisted Program for about 10 years. They have also executed ADB, JICA and National Projects. The financial management systems (FMS) are designed on the basis of existing systems of DGAWM, giving its 36 district offices an additional role of funds management for watercourses. Furthermore, considering the new Output Based Approach disbursement mechanism to be followed by the Program with funds going through Water Management district offices, additional financial management staff shall be hired for the DGAWM.
171. Risk Analysis and Ratings. The risk analysis and rating is summarized below.
55
Risk Rating Proposed Mitigating Condition of Residual Risk Rating Explanation Measures Negotiations, Risk Board or Effectiveness Inherent Risk Substantial - M Country/ Substantial Ignoring rules, - Adhering to FM policies - Substantial Provincial policies and and procedures. Level procedures - Integrated use of country FM systems. Entity Level Substantial Lack of Efficient use of fixed cost - Moderate experience of based disbursement for use of fixed defined Components cost based mechanism. Program Substantial Lack of FM Hiring and training of FM - Moderate Level staff, staff. particularly in field offices. Control Risk Substantial Moderate Budgeting Modest - Program budgets prepared - Moderate and updated regularly. Accounting Substantial - - Development of FM - Moderate procedures. - Use of Govt FMIS (SAP/R3) Internal High New - Training of FM staff. Substantial Control mechanism and - Use of supervisory different FM consultants for milestone arrangements payments/ verification. Funds Flow Substantial ─ Strengthening of FM - Moderate capacity at DGAWM and district offices. Financial Substantial - Agreement on format of - Moderate Reporting IFRs. - Adoption of International Public Sector Accounting Standards Auditing Substantial ─ DG Provincial Audit - Moderate Punjab AGP will carry out audit of the Program. Overall Risk Substantial Moderate
172. Budgeting. The entire Government contribution shall be financed by the Program. Annual budget prepared by DGAWM shall be reflected in the Public Sector Development Program of the Federal Government and Annual Development Program of the Punjab Government. Regular budget utilization monitoring shall be done by the DGAWM. Programs using the Government FMIS (SAP R/3) shall also help in automated budget monitoring.
173. Staffing. One dedicated Deputy Director for Finance and Accounts (DDFA) for the Program shall be hired from the market at DGAWM Office, where existing accounting support staff would provide support to DDFA. All FM staff would require an orientation on the Program‟s (FM) arrangement.
174. Accounting, Payments, and Internal Controls. The Program will follow a „cash-basis‟ accounting process. Separate books of account will be maintained for the Program activities using the
56 Chart of Accounts under the New Accounting Model. Sufficient subsidiary records will be kept to facilitate preparation of quarterly reports and annual financial statements providing details of receipts and expenditures by Program components and disbursement categories. All efforts shall be made to put the Program on the Government Financial Management Information System (SAP R/3) from the Program‟s inception.
175. FM Manual for the Project has been prepared. The FM Manual incorporates a robust internal control framework and ensures adequate segregation of duties. The FM Manual would be revised and updated from time to time to reflect the experience of project implementation and to continue to improve the financial management system and internal control. An invoice register will track the payment of invoices. Separate record of assets procured from Program funds will be maintained. These will be tagged for identification and subjected to a regular physical verification.
176. Funds Flow and Disbursement Arrangements. The Government related share of the project cost will be fully financed by IDA Credit, including taxes and duties. A segregated Designated Account in US Dollars will be opened for the Program by DGAWM. This will be operated by joint signatories ensuring adequate segregation of duties. Funds will be front-loaded using a report-based system. DGAWM will submit quarterly Interim Financial Reports (IFRs) providing six monthly cash forecasts. An initial advance into the Designated Account will be provided by the Bank on the basis of cash forecast for the first two quarters, which will be replenished quarterly on the basis of actual expenditures incurred and forecast for the following two quarters.
177. Advances for works in the field would be made from the Designated Account to Account IV of the District Governments through the Finance Department for expenditures estimated to be paid in three months. Replenishment to these accounts would be based on expenditures reported on a monthly basis and cash forecast for subsequent three months. Assurance has been provided that the entire process of transfer of funds from Designated Account to Account IV shall be completed in less than three weeks.
178. Disbursements for works under Component A and B. The cost of works and goods under Components A and B would be disbursed on an output basis i.e. according to the agreed unit rate for watercourse improved, HIES installed per acre, and the laser leveling provided. The unit rates would be reviewed annually. However, the first review would be undertaken six months after the start of the project. The unit costs will be compared against actual expenditures incurred. If there is a significant gap between the forecast and actual expenditures disbursed, adjustments would be made to the unit rates accordingly. The unit rates to be applied at the start of the project are provided in Table 3.1 below. All expenditures other than Components A and B would be disbursed based on actual expenditures.
179. Retroactive Financing. To meet the urgent project start-up needs, the Bank Credit could be used to retroactively finance expenditures incurred during the period between August 1, 2011 and Loan signing of up to US$20 million, provided that procurement procedures are acceptable to the Bank.
180. Allocations of the Credit proceeds by disbursement category are shown in the Table 3.2. For Category 1 (works, goods and services under Components A and B), disbursements would be based on unit rates for IDA disbursements provided in Table 3.1 and updated from time to time.
57 Table 3.1 Unit rates to be used for Disbursements (USD) Unit Rate for IDA Item Unit Rate Disbusements Component A1 1. HIES upto 3 acres unit USD/Acre 2,006 1,277 2. HIES upto 5 acres unit USD/Acre 1,574 1,002 3. HIES upto 10 acres unit USD/Acre 1,379 878 4. HIES upto 15 acres unit USD/Acre 1,248 794 Component A2 5. Laser Levelling Unit 18,827 2,647 Component B 6. Brick Lined New W/C 24,155 15,624 7. Concrete pre-cast New W/C 22,256 13,981 8. Partially Completed Brick 14,690 8,695 9. Partially Complete Concrete 13,576 7,694 10. Watercourse in Barani Area (a) Pipes etc. 4,793 3,377 (b) Concrete Channels 7,752 3,646
Table 3.2 Allocation of Credit Proceeds (US$ million) Financing Expenditure Categories Credit Amount Percentage 1. Works, Goods and Services for Component A and B a/ 200.0 100% 2. Goods Consulting Sevices, Traningg and operating cost 28.0 100% 3. Unallocated 22.0 Total 250.0 a/ For these categories 100% of the expenditure would be disbursed according to unit rates for IDA disbursements provided in Table 3.1 and updated from time to time. Part of the IDA credit amount from each category (1 and 2) is in the unallocated category (category 3). Taxes and duties will also be financed from the credit..
181. Incremental Operating Costs. The incremental operating costs will cover expenditures for salaries of contractual staff (other than consultants), per diem and allowances, office rental, office supplies, utilities, conveyance, travel and boarding/lodging allowances, operating and maintenance of office equipment and vehicles, advertising expenses and bank charges, taxes and duties, stamp papers, insurance, media promotion, newspaper subscriptions, periodicals, printing and stationery costs in connection with the management and coordination of Program activities.
182. Financial Reporting. The Program will submit IFRs within 45 days of the end of each calendar quarter. Format and content of these reports will be agreed during negotiations.
183. Auditing. Annual financial statements for the Program will be prepared in accordance with cash basis international public sector accounting standards. These will include details of expenditure incurred both by disbursement category and Program components.
184. An external audit will be conducted by the Supreme Audit Institution, i.e., the Office of the Auditor General of Pakistan which is acceptable to the Bank. Acceptable audited financial statements for the Program will be submitted within 6 months of the close of each financial year. DGAWAM currently
58 does not implement any Bank financed project; therefore, there is no outstanding audit report or ineligible expenditures.
Audit Report Type Due Date Program Financial Statements for Financial Year December 31 each year. ended June 30 each year.
185. Agreed Actions. The key actions agreed for improving financial management system are: (a) FM staff would be maintained and continued to be strengthened as project implementation expands to various districts and sub-projects are undertaken; and (b) FM Manual is updated on a regular basis to reflect the lessons learned from implementation and experience gained to continue to have robust FM system in place that is satisfactory to the Association.
186. Supervision Plan. Intensive FM supervision will be required for the first two years, i.e. quarterly financial management mission, followed by normal supervision i.e. twice a year.
Procurement 187. Procurement under the project would be carried out in accordance with World Bank‟s Guidelines: Procurement under IBRD Loans and IDA Credits of January 2011, and Guidelines for Selection and Employment of Consultants by World Bank Borrowers of January 2011. The Bank‟s standard bidding documents for procurement under International Competitive Bidding (ICB), and sample bidding documents for procurement under National Competitive Bidding (NCB) which are already being used on other Bank financed projects in Pakistan, will be used for procurement of Goods and Works under the Project. The Bank‟s Standard Request for Proposal (RFP) document will be used in the selection of consulting firms. GoPunjab shall ensure that the Project is carried out in accordance with the provisions of the Anti-Corruption Guidelines.
188. All expected procurement of goods, works and consultants‟ services have been listed in the project‟s General Procurement Notice (GPN), and Specific Procurement Notices (SPNs) shall be published for all ICBs and consulting services contracts costing more than US $300,000.
Procurement of Works 189. Procurement and Contract Management of Component A1 works i.e. Installation of HEIS. For installation of HIES, several Supply and Service Companies (SSCs) would be pre-qualified in the province, using appropriate criteria acceptable to the Bank. SSCs would be registered with the Agriculture Department of Punjab, and this pre-qualification shall be updated periodically (annually or as agreed). SSCs would install the HEIS on a turnkey basis. SSCs would also be responsible for providing technical support to farmers for operation and maintenance of HEIS as well as irrigation agronomy and crop production techniques with HEISs. PISCs will provide technical input during pre-qualification process to select capable SSCs and standard equipment including cost estimates. The Agriculture Department will advertise for invitation of applications from farmers for installation of HEISs. The HEIS Field Team will mobilize farmers for adoption of HEISs and selection of suitable system for the farm. The applications will be scrutinized vis-a-vis approved criteria and eligible applicants will be advised to approach the pre- qualified SSCs of their own choice for survey, design, and cost estimation of the selected system. The HEIS Field Team will support farmers/SSC for survey, design and cost estimation. The SSC will submit the same to the PISCs for review and approval. After approval of design and cost estimates, the farmer will be advised by District Officer (OFWM) to deposit his/her entire share in the form of a pay order/bank draft drawn in favour of selected SSC.
190. On receipt of farmer contribution, concerned SSC will be issued a work order by DGAWM/RPD to supply the equipment at site, which will be verified by PISCs in terms of quality and quantity vis-a-vis
59 approved standards/specifications. DGAWM will make 50 percent payment of total cost or farmer‟s share, whichever is higher, to SSC by releasing farmer‟s demand draft and remaining cost from project funds, if the farmer‟s share is less than 50 percent of the total cost, along with advice to install the system. Spot checking will be carried out by RPD, HEIS Field Team, and PISCs to ensure installation as per approved design parameters. The installation completion will be reported by SSC to the concerned DO (OFWM) who will request PISCs for verification of installed system. On completion of installation and making the system functional, consultants will verify the final completion as per design, satisfaction certificate of farmer, irrigation & fertilization schedules, log book, certificate that farmer has been trained on system operation & maintenance and O&M manual has been provided to the farmers. After certification/verification by PISCs,, DGAWM will pay the remaining cost retaining 10 percent of total system cost as performance guarantee which will be released after two years or presentation of a bank guarantee or performance security (if agreed) of an equal amount to ensure free service during the two years warranty period. The HEIS team in the district will provide technical support to farmers in the operation, maintenance and troubleshooting of the installed system as well as provide agronomic support regarding cropping geometry, fertilization, weed management, disease/pest control etc. under high efficiency irrigation environment.
191. TATCs would carry out a province-wide program for training of SSCs, i.e. training of trainers and prepare manuals and kits for use. They would develop training materials for SSCs, farmers and others involved including staff of Directorate General, Water Management Training Institute (WMTI) who would be used for carrying out extensive training province-wide to the interested farmers, SSCs, NGOs and other interested stakeholders.
192. Procurement and contract management under component A2 (laser levelling equipment). The PSC with support from DGAWM would approve specification of the equipment and the list of qualified firms. Each short-listed firm would be required to submit one complete set of its approved units to DGAWM, which will be used as reference for monitoring the quality of units being provided to farmers / service providers. It would be returned to the firm after completion of the project on provision of a certificate from all districts where the firm has delivered LASER units that there remains no complaint/ shortfall to be addressed.
193. The Agriculture Department will advertise for invitation of applications from farmers interested to work as service provider for LASER land levelling rental services. Applications will be received /collected in the office of DO (OFWM), which will be scrutinized vis-a-vis an approved criteria by the designated committee. PISCs will assist the committee to carry out scrutiny for short listing of applications. DO (OFWM) will convey the complete list of eligible applicants to the DGAWM for allocation of quota as the activity will be demand-driven. Farmers meeting the criteria would be allowed to purchase the equipment by placing an order with the approved supplier, who would have to supply the equipment in 90 days. PISCs would inspect and certify the equipment and that it has been supplied based on which DGAWM would release the Government‟s share of the cost to the supplier.
194. Procurement and Contract Management of Works under component B i.e. Watercourse Improvement. Watercourses would be improved/constructed under the project through community participation. The watercourse level WUAs properly formed and registered under WUA Ordinance of 1981 would be qualified to undertake these works. Upon request of WUAs, when qualified, Tehsil Level field teams would carry out surveys and prepare the design and cost estimates for material along with the breakdown of each item, labor cost etc. These would be checked and certified by PISCs.
195. WUA will carry out earthen improvement of 50 percent of proposed length under the supervision of OFWM field staff. This will involve removal of shrubs, bushes, and vegetation as well as other natural or man-made obstructions from the right of way. This will be followed by demolishing of existing channel, constructing a well compacted pad, and excavation of new channel as per the design. A sample
60 contract form has been agreed between the Bank and the borrower for such implementation. Requisite funds will be released to joint account of the respective WUA by DO (OFWM) in three instalments on certification of the PISCs based on the following criteria: First Installment, of 40% of the estimated cost would be released on receipt of First Intermediate Completion Report (ICR-I) from the consultants, certifying the following requirements: (a) Issuance of Technical Sanction by the competent authority; (b) Deposit of 50 percent farmers‟ share on account of labor charges for lining and installation of water control structures; (c) Renovation of at least 50 percent of designed earthen sections. Second Installment, of 30% of the estimated cost on receipt of Second Intermediate Completion Report (ICR-II) from consultants, verifying the following: (a) deposit of remaining 50 percent labor charges of farmers‟ share on account of lining/installation of water control structures etc. (b) renovation of entire designed earthen sections; and (c) completion of at least 30 percent planned lining and other works. Third Installment, release of remaining 30% of the estimated cost on receipt of Final Completion Report (FCR) from consultants certifying: (a) completion of all planned works; and (b) rectification of any pending discrepancy.
196. The WUA will procure construction materials using simple community procurement procedures and carry out civil works under the technical supervision of OFWM field staff. DO (OFWM) will perform internal monitoring of improvement works while the RPD will undertake external monitoring to ensure quality of the works. PISCs will carry out spot checking and third party validation/final verification of improvement works. As indicated above, Bank funds would be disbursed/settled based on agreed unit rates per watercourse improved, upon certification by PISCs.
197. Civil Works. Apart from community based works mentioned above, there are no major works identified as yet, but any works to be undertaken by DGAWM have to adhere to the following procedures: (i) Works estimated to cost more than US$4,000,000 equivalent would be procured through ICB procedures. Pre-qualification would be mandatory for contracts estimated to cost more than US$10 million equivalent; (ii) Estimated to cost up to US$4,000,000 would be procured through NCB procedures; and (iii) For Minor works estimated to cost up to US$50,000 equivalent per contract may be procured through shopping procedures.
Procurement of Goods
198. Procurement and contract management under component A2 (laser leveling equipment). Laser Land levelers shall be procured based on community participation. Agriculture Department will advertise and invite applications from interested farmers. Applications received / collected in the office of DO (OFWM), will be scrutinized against approved criteria by the designated committee. PISCs will assist the committee to carry out scrutiny for short listing of applications. DO (OFWM) will convey the complete list of eligible applicants to DGAWM for allocation of quota as the activity will be demand-driven. Farmers meeting the criteria would be allowed to purchase the equipment.
199. In parallel, the DGAWM office shall also pre-qualify firms for supplying the equipment, based on disseminated criteria, evaluating their performance and technical specifications of the equipment. The PSC with support from DGAWM would approve specification of the equipment
61 and the list of qualified firms. The farmer would place an order with the approved supplier who would have to supply the equipment in 90 days. PISCs would inspect and certify the equipment that has been supplied, based on which DGAWM would release the Government‟s share of the cost to the supplier. Formats of agreements with farmers as well as the supplier have been finalized.
200. Goods procured under this project would include: office equipment, vehicles, furniture, field equipment and heavy equipment, instruments, hydraulic water measuring equipment and others identified during the project. Following procedures would apply for procurement of goods:
(i) ICB procedures shall be followed for each Goods contract estimated to cost more than US$600,000 equivalent. Domestic Preference will be allowed to local manufacturers on ICB contracts; (ii) Goods estimated to cost up to US$600,000 per contract may be procured through NCB procedures acceptable to the Bank; (iii) All vehicles for project use, and other goods estimated to cost up to US$50,000 equivalent per contract may be procured following procurement procedures in accordance with the Bank‟s procurement guidelines;
Improvement of Bidding Procedures under National Competitive Bidding
201. The following improvements in bidding procedures will apply to all procurement of Goods and Works under National Competitive Bidding, in order to ensure economy, efficiency, transparency and broad consistency with the provisions of Section 1 of the Guidelines: i. Invitation to bid shall be advertised in at least one national newspaper with a wide circulation, at least 30 days prior to the deadline for the submission of bids; ii. bid documents shall be made available, by mail or in person, to all who are willing to pay the required fee; iii. foreign bidders shall not be precluded from bidding and no preference of any kind shall be given to national bidders in the bidding process; iv. bidding shall not be restricted to pre-registered firms; v. qualification criteria shall be stated in the bidding documents; vi. bids shall be opened in public, immediately after the deadline for submission of bids; vii. bids shall not be rejected merely on the basis of a comparison with an official estimate without the prior concurrence of the Bank; viii. before rejecting all bids and soliciting new bids, Bank‟s prior concurrence shall be obtained; ix. bids shall be solicited and works contracts shall be awarded on the basis of unit prices; x. contracts shall not be awarded on the basis of nationally negotiated rates; xi. single bid shall also be considered for award; xii. contracts shall be awarded to the lowest evaluated and qualified bidder; xiii. post-bidding negotiations shall not be allowed with the lowest evaluated or any other bidders; xiv. draft NCB contract would be reviewed by the Bank in accordance with the prior review procedures; xv. Government-owned enterprises shall be eligible to bid only if they can establish that they are legally and financially autonomous, operate under commercial law, and are not a dependent agency of the Recipient; xvi. A firm declared ineligible by the Bank, based on a determination by the Bank that the firm has engaged in corrupt, fraudulent, collusive, coercive or obstructive practices in competing for or in executing a Bank-financed contract, shall be ineligible to be awarded a Bank- financed contract during the period of time determined by the Bank.
62 xvii. The Bank shall declare a firm ineligible, either indefinitely or for a stated period, to be awarded a contract financed by the Bank, if it at any time determines that the firm has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive or obstructive practices in competing for, or in executing, a contract financed by the Bank; and xviii. Each contract financed from the proceeds of a credit shall provide that the suppliers, contractors and subcontractors shall permit the Bank, at its request, to inspect their accounts and records relating to the performance of the contract and to have said accounts and records audited by auditors appointed by the Bank. The deliberate and material violation by the supplier, contractor or subcontractor of such provision may amount to obstructive practice.
Recruitment of Consultants
202. Major consulting services under the Project would be required for PISCs, M&ECs and TATCs as described above. Contracts with consulting firms will be procured in accordance with Quality and Cost Based Selection procedures or other methods given in Section III of the Consultants‟ Guidelines, such as quality based (QBS), fixed budget (FBS), least cost selection (LCS),consultants qualification (CQS) or single source selection (SSS). For contracts with consulting firms estimated to cost less than $500,000 equivalent per contract, the shortlist of consultants may comprise entirely of national consultants in accordance with the provisions of paragraphs 2.7 of the Consultant Guidelines.
203. Selection of Individual Consultants. World Bank provides guidelines on selection of individual consultants in Section V of the Consultant Guidelines. Services for assignments that meet the requirements set forth in the first sentence of paragraph 5.1 of the Consultant Guidelines may be procured under contracts awarded to individual consultants in accordance with the provisions of paragraphs 5.2 through 5.3 of the Consultant Guidelines. Under the circumstances described in paragraph 5.4 of the Consultant Guidelines, such contracts may be awarded to individual consultants on a sole-source basis.
204. Single-Source Selection. Specific consultants‟ services through firms, satisfying Consultants Guidelines (paragraph 3.9 to 3.13), with Bank‟s prior agreement may be procured following single source selection procedures.
205. Recruitment of an Appropriate NGOs If needed, an appropriate NGO would be recruited through a competitive process for implementation of some activities of the Project. The NGO would be given a contract for the services.
Incremental Operating Costs 206. The incremental operating costs for covering incremental staff salaries, rent, office supplies, utilities, operating and maintenance expenditures of office equipment and vehicle etc. would be disbursed on the basis of annual budgets to be prepared by implementing agencies and agreed with the Bank. Assessment of Agency’s Capacity to Implement Procurement
207. DGAWM office is responsible for preparing the procurement plans, procurement of consultant services, goods and overall project implementation. DGAWM has been the implementation unit for several Bank Projects in Punjab and has considerable experience of working according to the Bank‟s procurement rules, though it has not worked in recent years. One Senior Level Officer shall be designated to act as a procurement focal point, assisted by his/her staff. An assessment of the capacity of the implementing agency to implement procurement actions for the project was carried out by the procurement specialist on the team. The assessment reviewed the organizational structure for implementing the procurement under the project and the interaction between the project‟s staff
63 responsible for procurement. The special measures for dealing with procurement risk proposed above are based on this review.
208. The project is rated “substantial risk” operation from procurement and contract management point of view. While the implementing agency‟s performance in carrying out procurement under the ongoing/ previous Bank, ADB and JICA financed projects has been satisfactory, this rating is assessed due to the sheer size of the operation, numerous packages involved and country environment. In order to minimize this risk several measures are introduced for procurement in general and for management of consultancy contracts in particular. These measures include:
(i) Procurement Capacity: DGAWM would have overall responsibility for carrying out the procurement under the Project including the consulting services, works and goods. The Bank shall conduct a procurement training session for the project staff. The SOPs covering internal approval procedures of the borrower have been agreed and documented during appraisal. (ii) Community procurement arrangements for goods shall be agreed and disseminated to the participating communities. The PISCs shall spot check compliance of the agreed arrangements. Contracts for community based works, as well as goods have also been agreed and documented during appraisal. (iii) DGAWM‟s procurement website would be used for providing procurement plan, procurement notices, invitation to bid, bid documents and RFPs as issued, latest information on procurement contracts, status of evaluation, complaints and actions taken, contract award and performance under contracts and other relevant information related to procurement. The website would be accessible to all bidders and firms free of charge. The website would be supported by a filing system and a procurement database as explained below. The web-site should be operational as soon as competitive procurements for the project commence; (iv) A credible system of handling complaints would be put in place. DGAWM would manage the complaint handling system with overall oversight by the PPC and PSC of the Punjab Government. This system would include maintenance of a database, a standard protocol with appropriate triggers for carrying out investigations, and taking action against involved parties. DGAWM would develop the system as soon as possible and it would be reviewed by the Bank. For ICB/international selection of consultants the Bank prescribed complaint redressal mechanism will apply;
209. With these above arrangements, procurement under the project is likely to be effective and transparent resulting in smooth implementation of the project leading to achievement of the project development objectives. At this stage procurement risk rating of the project is kept “substantial”; however, procurement process and implementation of the contracts would be reviewed every six months by the PPC and PSC in collaboration with the Bank and adjustment would be made, and corrective actions would be taken if necessary. Summary of the agreed actions is tabulated below: Table 1: Procurement Actions Action Responsibility Date Status i. Procurement Training Bank Before any Informal discussion procurement actions held. Procurement SOPs Bank/DGAWM By negotiations Discussions commenced ii. Community procurement arrangements: i. DG /PISC By appraisal Samples shared with i. Goods procedures for DGAWM
64 WUAs ii. DG ii. Agreed contracts for iii. DG WUAs iii. Agreed contracts for suppliers iii. Procurement website DGAWM By effectiveness Separate link to be prepared vii. Complaint handling DGAWM By effectiveness Basic mechanism system agreed shall be agreed in the manual
Procurement Planning
210. Procurement Plan for key contracts for goods, works and consultants‟ services expected under the Project is prepared by the DGAWM. Whenever possible, procurement of works, goods and services would be packaged into large packages to attract good contractors. Procurement under the project will be carried out in accordance with the procurement plans which will be closely monitored and updated on a quarterly basis, or as required. No procurement, regardless of the value, will be done by the implementing agency unless it has been approved under the procurement plan by the Bank. Any change in the estimated cost of any contract will promptly be conveyed to the Bank for its approval. No changes will be accepted after bidding documents have been made available to the bidders. Prior Review
211. Thresholds for prior review are given below. These thresholds would be reviewed in 18 months and adjustments upwards or downwards would be made based on implementation experience: (i) All ICB contracts for works and goods; (ii) All single source selection or direct contracts; (iii) First NCB contract for works and goods irrespective of value; (iv) First contract procured through shopping, for goods as well as works, and through community based contracting procedure; (v) The first Consultants‟ Services contract with consulting firms, irrespective of value, and thereafter all contracts with firms estimated to cost US$100,000 equivalent or more; (vi) First consulting services contract with individual consultants, irrespective of value, and thereafter all contracts with individuals estimated to cost US$50,000 equivalent or more.
Post Review
212. All other contracts will be subject to Post-Review by the Bank. DGAWM will send to the Bank a list of all contracts for post-review on a quarterly basis. Post reviews as well as the implementation reviews would be done quarterly for the first 18 months or till the credit disbursements reach US$30 million and there after bi-annually. Such review of contracts below threshold will constitute a sample of about 20 percent of the contracts. Procurement Information and documentation - Filing and database
213. Procurement information will be recorded and reported as follows:
(a) Complete procurement documentation for each contract, including bidding documents, advertisements, bids received, bid evaluations, letters of acceptance, contract agreements,
65 securities, related correspondence etc., will be maintained by the implementing agencies in an orderly manner, readily available for audit. (b) Contract award information will be promptly recorded and contract rosters as agreed will be maintained by each implementing agency. (c) Comprehensive quarterly reports by DGAWM, indicating: (i) revised cost estimates, where applicable, for each contract; (ii) status of on-going procurement, including a comparison of originally planned and actual dates of the procurement actions, including preparation of bidding documents, advertising, bidding, evaluation, contract award and completion time for each contract; and (iii) updated procurement plans, including revised dates, where applicable, for the procurement actions. (d) A Procurement Database would be developed supporting the procurement website that would register relevant information in a database format that would be suitable for analysis. The database would include above information and in addition other relevant information such as official estimates (global unit prices based on market rates), all bidders (individual, companies, joint ventures, owners information, bank guarantee information, etc.), all bids, and relevant staff offered (technical experts, work supervisors, etc.). The database would be designed and supervised by the DGAWM in accordance with the format agreed with the Bank.
Frequency of Procurement Supervision
214. Bank supervision would be carried out every six months, however, more frequently in the early stages of the project. In addition to prior review, Bank supervision missions, including a procurement specialist, would carry out for post review of procurement actions. The Bank‟s procurement specialist based in the Country office in Pakistan will be available to discuss procurement issues with the PMO as and when needed. Details of the Procurement Arrangements
2. Consulting Services
1 2 3 4 5 6 7 Ref. Description of Estimat Number Selection Review by Expected No. Assignment ed Cost of Method Bank Proposals US$(mil contracts (Prior/Post) Submission lion) Date PBIP- Project 8.5 1 QCBS Prior June 2012 II-A4 Implementation Supervision consultants. PBIP- Technical 7.00 1 QCBS Prior June 2012 II-C1 Assistance and Training Consultants (TATCs) PBIP- M&E 1.8 1 QCBS Prior August II-C2 Consultants. 2012
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Annex 4: Operational Risk Assessment Framework (ORAF) Pakistan: Punjab Irrigated Agriculture Productivity Improvement Program Phase I Project (P125999)
Implementing Agency (IA) Risks (including Fiduciary Risks) Capacity Rating Moderate Description: Risk Management: The share scale of the operation, spanning the entire province and Technical assistance would be provided to the implementing agency, OFWM Directorate dealing with millions of farmers and water users, raise concerns under components C1 and D1 of the project. This will enhance its capacity to deal with an regarding technical and management capacity to carry out the operation spread over such a vast area. program. Efficiency and transparency in procurements could also Under component C2, an independent team of consultants would monitor the project pose a risk, particularly given the large number of contracts performance, users‟ satisfaction and any issues regarding implementation, and will provide (thousands). feedback to the implementing agencies. Should any issues emerge, they would be dealt with However, the implementing agency has years of experience at the management and project steering committee level, which would be chaired by highest working with the farmers and water users association, authority in the province. implementing projects of similar nature. In addition, a Procurement training sessions will be held to facilitate efficient procurement and contract procurement assessment has been carried out and found the implementation institutional capacity to be satisfactory. Resp: Bank and client | Stage: Implementation | Due Date: Throughout Status: Not yet Due Governance Rating Substantial Description: Risk Management: Complex implementation arrangements, involving multiple Project interventions will leverage substantial investments from the beneficiaries which committees and several layers of government and spanning will mitigate governance risks. across 36 districts in the province, could lead to weak oversight, Procurement of materials for watercourses would be carried out by the communities who uneven performance, and pose governance challenges will also implement the works. Therefore, there would be internal check and balance and self interest to carry out procurement properly. Two consultants would be overseeing the works. PIACs would supervise on regular basis, and certify the quantity and quality of works, and M&ECs would carry out spot check and technical audits. The disbursements would be on unit rate basis for total outputs and would not be made for works that are not completed properly. The financial transactions would also be in thousands at a given time. Thus additional financial staff is added and a good system of financial management would be used.
Resp: Bank | Stage: Prep & Impl | Due Date: Throughout | Status: Not yet Due Project Risks
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Design Rating Low Description: Risk Management: Farmers may not want to adopt the technologies introduced under The project design draws on lessons learned from previous projects in Pakistan and similar the project and there may also be resistance to the project‟s projects in parts of the country. Major lessons incorporated in the project design include, introduction of functioning of the water user associations, inter alia: a) Beneficiary participation is made central to the project b) Laser levelers and training, demonstration activities, and monitoring and evaluation. HEIS are provided to the service providers instead of Government agency HEIS c) Output However, the project is based on well tested and popular based operation with disbursements to be made on unit rates instead of traditional interventions such as watercourse (W/C) improvements, laser procurement and contracting of works and materials leveling, high efficiency irrigation systems like drip, bubbler and The project design also reflects extensive consultations with farmers and users. The sprinkler. All aspects of these systems are in demand by farmers. technology would be provided to the farmers based on demand and according to their needs.
Resp: Bank | Stage: Prep & Impl | Due Date: Throughout | Status: Not yet Due Social and Environmental Rating Low Description: Risk Management: There are no adverse social or environmental impacts anticipated. The project has positive environmental benefits, including N/A reduction in water losses, less degradation of land and water resources, etc.
Program and Donor Rating Low Description: Risk Management: Program and donor risks are minimal. The project is fully The Bank has been engaged in the water and agriculture sector for many years and is in financed by the Bank and the Government and is not affected by active dialogue with the Government and key stakeholders concerning the development of financing of other projects by donors. these sectors.
Resp: Bank | Stage: Prep & Impl | Due Date : Throughout | Status: Completed Delivery Monitoring and Sustainability Rating Moderate Description: Risk Management: The scale of the project involving installation of irrigation Farmers and users who participate in the project would be provided training to enhance systems at several thousand sites can pose a risk in terms of their capacity and experience in managing project works. ensuring quality of works. Supervisory consultants would ensure quality of works undertake under the project. The O&M in the irrigation sector in Pakistan is generally challenging. project management and the Project Steering Committee would ensure that corrective However, this is mainly related to government-owned upper tier actions are taken to ensure quality as identified by the farmers, supervisory and M&E of the irrigation system - from barrages to the head of consultants. watercourses. Below the watercourses, the system is maintained The O&M of the works improved under the project would be reduced and more easy thus 68 by farmers themselves and it is comparatively well maintained. improving the sustainability of the works and this would help in improving sustainability of irrigation system overall.
Resp: Bank | Stage: Prep | Due Date : None | Status: Not yet due Project Team Proposed Rating Before Review Preparation Risk Rating: Moderate Implementation Risk Rating: Moderate Description: Description: The overall risk ratings at preparation and implementation are Moderate because: (i) spread of the project areas; (ii) number of users involved; and (iii) number of transactions involved.
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Annex 5: Implementation Support Plan Punjab Irrigated Agriculture Productivity Improvement Program Phase-I Project (PIPIPP)
Strategy and approach for Implementation Support3
215. The strategy for implementation support (IS) has been developed based on the nature of the proposed project. It will aim at making the support to the client for implementation more flexible and efficient and focus on the implementation of the risk mitigation measures as defined in the ORAF.
Procurement: There would be thousands of small contracts procured by participating communities under this project particularly under Components A and B of the Project. The Bank team have been providing and continue to provide implementation support by: (a) technical, management and procurement expertise funded by the ongoing Water Capacity Building Project; (b) training to members of the procurement committee and related staff in the regional project offices, as well as the project management consultant; (b) reviewing procurement documents and providing timely feedback to the procurement committee; (c) providing detailed guidance on the Bank‟s procurement guidelines to the procurement committee; and (d) monitoring procurement progress against the detailed procurement plan developed by Directorate of Agriculture Water Management. Financial management: Supervision will review the project‟s financial management system, including but not limited to accounting, reporting and internal controls. Supervision will also cover sub- projects on a random sample basis. The Bank team will also work with the project management consultant to assist DGAWM, District Offices and Tehsil level Project offices in improving coordination among different departments and units for financial management and reporting. Environmental and social safeguards: The Bank team will supervise and provide support to DG AWM and field offices for the implementation of the agreed environmental and the social issues. Anti Corruption: the Bank team will supervise the implementation of the agreed Governance procurement and Governance and Accountability Action Plan. Technical Aspects/Independent Panel of Experts: The Bank credit would support an Independent Panel of Experts consisting of internationally renowned experts in the fields of HEIS expertise, agriculture and irrigation agronomy etc, Coordination with the Development Partners. The Bank team would help Government with coordination among Development Partners (DPs), and help in addressing project management, procurement, disbursement, financial management and safeguard issues.
Implementation Support Plan
216. Some of the Bank team members will be based in the country office, some in Washington and others in country offices in the region to ensure timely, efficient and effective implementation support to the client. Timely monitoring and support to DGAWM will be mainly provided by team members in the country offices of the region, especially for the first 18 months. Formal implementation support
3 This is an indicative and flexible instrument which will be revised during implementation as part of the ISR and adjusted based on what is happening on the ground. The implementation plan should be consistent with the design and riskiness of the operation, and should be adequately resourced. 70 missions and field trips will be carried out semi-annually and these would be coordinated with other DPs such as USAID, ADB who are also involved in the water sector of Pakistan and Punjab.
217. Detailed inputs from the Bank team are outlined below: Technical inputs. Irrigation, agronomy, water engineering and drip electro-mechanical equipment expertise are required to review project plans, implementation and specification of goods etc. The task team would contract individual consultants with these skills. Specialist and high level procurement skills are required for review of major works contracts as well as the two consulting services PISCs and M&ECs. During construction and commissioning, technical supervision is required to ensure that the contractual obligations are met on technical grounds. Field visits by the team‟s irrigation, agriculturist, and agriculture economist will be conducted on a semi-annual basis throughout project implementation.
Fiduciary requirements and inputs. Training will be provided by the Bank‟s financial management specialist and procurement specialist. The team will also help DGAWM identify capacity building needs to strengthen its financial management capacity and to improve procurement management efficiency. Both financial management and procurement specialists will be based in the country office to provide timely support. Formal supervision of financial management will be carried out semi-annually, while procurement supervision will be carried out on a timely basis as required by the client. DGAWM would be provided with consulting services in this area and assistance by PISCs, M&ECs. In addition, under component E of the project, funds are available to DGAWM for recruitment of consultants with specialized skills as needed. The Bank can help in identifying consultants needed with these required skills.
Safeguards. Inputs from an environment and a social specialist are required, though the project‟s social and environmental impacts are limited and the client capacity is generally adequate. Training is required on environment monitoring and reporting. On the social side, implementation support missions will focus targeting of project activities to small farmers as agreed under the implementation plan. Field visits are required on a semi-annual basis. Both social and environmental specialists are country office based. The M&ECs and TATCs would help in independent monitoring of the safeguard issues and highlighting to the Bank team any issues, possible alternative solutions in a timely manner.
Operation. An operations officer based in the country office will provide day to day supervision of all operational aspects and coordination with the client and among Bank team members.
218. The main focus of implementation support is summarized below:
Time Focus Resource Estimate Partner Role
First Year Technical Review, Irrigation Engineer (with proc exp.) - 4 SWs NA of the procurement review, Electro-mechanical Engineer (with Proc ex.) - 1 SW Project site review, plan Procurement Specialist - 5-6 SWs reviews bidding or 18 documents months Procurement and FM Procurement and FM Specialists - 5 SWs NA Trainings
Social aspects Social Specialist/RAP Specialist - 2 SWs NA
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Environmental Environmental Specialist - 3 SWs NA supervision
Institutional and Institutional Specialist - 4 SWs capacity building of DG AWM, Financial and Financial Specialist - 4 Sws strategies issues etc.
Irrigation, Agronomy Irrigation, Agriculture, Horticulture Specialist - 3 and Horticulture SWs each
Team Leader TTL 8 SWs
Year 2-5 of Project construction Irrigation Engineer 4 SWs NA the Project Procurement and Contract management 6 SWs
Sws per Environmental and Environmental Specialist 2 SWs NA year social monitoring Social/RAP Specialist 2 SWs
Financial Management, FM Specialist, Disbursement Specialist 4 SWs disbursement and reporting
Institutional Institutional Specialist 3 SWs NA arrangements, capacity building of WAPDA, financial strategy for WAPDA
Task leadership TTL 8 SWs NA
219. The staff skills mix required is summarized below: Number of Staff Skills Needed Weeks Number of Trips Comments
Irrigation engineer 4 SWs annually Fields trips as required. Inter/National Agriculturist and Horticulturist 4 SWs Annually Fields trips as required. Inter/National Electro-mechanical Engineer 1 SW annually Field Trips as required International
Procurement 6 SWs annually Fields trips as required. Country office based Procurement Specialist 2 SWs Annually International Social specialist (national) 2 SWs annually Fields trips as required. Country office based Social Specialists (intern.) 3 SWS Annually Field trips as required International/Regiona l Environment specialist 2 SWs annually Fields trips as required. Country office based Environmental Sp. 3 SWs Annually Field trips as required International Financial management 3 SWs annually Fields trips as required. Country office based specialist Institutional Specialist 4 SWs annually Field trips as required International Task Team leader 6 SWs annually Fields trips as required International/Country based
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Annex 6: Team Composition Punjab Irrigated Agriculture Productivity Improvement Program Phase-I Project (PIPIPP)
220. World Bank staff and consultants who worked on the project: Name Title Unit Masood Ahmad Lead Water Resources Specialist SASDA
Chaohua Zhang Lead Social Sector Specialist SASDS
Javaid Afzal Senior Environmental Specialist SASDI
Uzma Sadaf Senior Procurement Specialist SARPS Riaz Mahmood Financial Management Specialist SARFM Erik Nora Communications Officer SACPA Sameena Dost Senior Counsel LEGES
Chau-Ching Shen Senior Finance Officer CTRFC Shabir Ahmad Program Assistant SASDO Venkatakrishnan Ramachandran Program Assistant SASDO
Peer Reviewers Guy Alaert Lead Water Resources Specialist ECSS1 Javier Zuleta Sr. Water Resources Specialist LCSEN Xiaokai Li Sr. Water Resources Specialist EASIN Manuel Contijoch Sr. Water Resources Spec. LCSEN Abdulhamid Azad, Sr. Irrigation Engineer MNSWA MNSWA Satoru Ueda Lead Water Resources Specialist AFTWR Francois Onimus, Sr. Water Sr. Water Resources Spec. AFTWR Resources Spec. AFTWR
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Annex 7: Economic Analysis
221. The Project would have a transformational impact on Punjab‟s Water Sector, by cutting down the water losses and introducing technologies which help in water conservation and increased productivity of water. It is quite challenging to fully quantify and capture the benefits of such intervention in a sector like agriculture in which many factors are at play. Therefore, a simplified approach is used to estimate the incremental benefits of the project and cost benefit analysis is carried out by determining a discount rate which equalizes the costs and benefits i.e. the Economic Rate of Return (ERR). The methodology and analysis is described below.
Estimation of Project Benefits. 222. The benefits are quantified to the extent possible for major interventions under the project proposed: Component A; HEIS and laser leveling and Component B; watercourse improvements of the Project. The benefits of component C, technical assistance are enormous, however, they are not quantified separately and it is assumed that these services are required for the benefits of components A and B even though they do extend beyond the scope of these components. Similarly the benefits of training under component D of the project are not quantified though the cost of all components is considered in the economic analysis.
Assumptions and Methodology for Estimation of Benefits 223. Component A1: Installation of High Efficiency Irrigation Systems. It is assumed that about 120,000 acres would benefit from the installation of Drip and other HEISs (see Table 2.2 in Annex 2 for more detailed breakdown). HEIS would be installed in a range of sizes starting from as small as 1 acre to 15 acres. However, costs and benefits estimates are prepared for 3 acres, 5 acres, 10 acres and 15 acres units as these points are assumed to define appropriately the cost and benefits curves. It is assumed that DRIP would be installed over 100,000 acres and sprinkler and other forms of HEIS would be installed on 20,000 acres. Further assumptions are made according to the targets that about 40,000 acres would come under orchards Citrus 37%, Guava 33% and Mango 30%, based on the current Agricultural Statistics. Also about 40,000 acres each would be under vegetables and row crops. In southern Punjab it would be mostly cotton as it is a cash crop in that area, and in northern and eastern Punjab (where cotton is not grown) it would be mostly vegetables as there are major cities with a high demand for vegetables in urban areas etc.
224. Crop budgets/models were prepared for each crop, orchards, vegetables, cotton and mixed crops under consideration with and without HEIS. The crop budgets were prepared separately for existing and new orchard with and without HEIS. It is assumed that about 40% of HEIS would be installed on existing orchards and about 60% on the new orchards. The development of a new orchard needs additional investment till fruiting and benefits are considered to flow from 4 to 5 years after their plantation depending upon the type, Mango taking the longest time. Full development of orchards is assumed after 10 years of plantation.
225. Crop Yields. Data for crop yield under with and without HEIS has been taken from the case studies entitled: “Assessment of Performance and Yields under Drip Irrigation” carried out in year 2008 by the Planning and Evaluation Cell, GoPunjab, Agriculture Department, Lahore. These were based on the field observation of a few units of HEIS already installed. Very conservative assumptions are made for increase in crop yields. It is assumed that with HEIS, yield of orchard and cotton would increase by 20%, sugarcane by 40%, vegetables by 50% and of wheat in canal commanded area by 50% and in Barani area by 80%. In the analysis major benefits come from orchard, vegetables and cotton. Contribution of other crops in the overall benefits is not as significant as of these crops. For existing orchards no yield increase is assumed in the first year of operation and increase is from the second year.
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226. Area Benefited. Drip irrigation system will be installed in about 100,000 acres and sprinkler and other HEIS will be provided for about 20,000 acres. Benefited area is estimated as about 40,000 acres for orchards; about 40,000 acres each for row crops and vegetables. However, installation of HEIS will enable farmers to double the intensity by cultivating row crops and vegetables in both the seasons (Rabi and Kharif). Being conservative, the analysis is done considering that only 80% of the area fitted with HEIS will be cultivated with vegetables after harvesting cotton and similarly the area earmarked for vegetables and fitted with HEIS will be cultivated 100% in Rabi and 80% in Kharif. It is further assumed that increase in yields and benefits would be less in first year and full during the second year.
227. Un-quantified Benefits of HEIS. Other benefits of HEIS which are not quantified and included in the analysis and or cannot be quantified are:
(i) Generally between orchard and row crops like cotton, the farmers also grow other crops when DRIP is installed such as vegetables. In the case of cotton, it is observed that some farmers also intercrop vegetables, while cotton is still small in height, vegetables mature and then cotton grow up and it is harvested. Similarly in the orchard field, they take vegetables while orchard plants are still young and there is space in between. This is not assumed in the crop budgets mentioned above, thus the benefits identified and used in the analysis are much less than would otherwise accrue; (ii) The farmers would take the water saved from the DRIP and use on the remaining land where DRIP is not installed and increase the cropped area on their farms using traditional flood irrigation perhaps and produce crops such as fodders, wheat, etc, This is possible because of highly efficient of water use on part of their farm. The incremental production from this water is neither quantified nor included in the analysis – again a very conservative estimate of benefits from the project; (iii) Weeds are controlled causing less problems in cropping; (iv) Bacteria, fungi and other pests and disease that spread on moist environment are reduced as the above ground part of the plants are normally dry; (v) Less ponding of water in the fields reducing insect issues; (vi) The pond for DRIP give continuous supply of water for other purposes, some may also grow fish in these ponds and such benefits are not quantified and considered.
228. Component A2: Laser Land Levelling. Various studies carried out in past have indicated that a significant amount of irrigation water is lost during its application due to uneven fields and inappropriate farm designs. This leads to over-irrigation of low-lying portions and under-irrigation of higher spots that not only results in colossal water wastage but also causes accumulation of salts in patches. Furthermore, over-irrigation leaches soluble nutrients from the crop root zone, makes the soil less productive, and degrades groundwater quality.
229. Several studies undertaken by International Water Management Institute (IWMI) at Punjab, also demonstrated that about 20% to 25% water is wasted during field application because of undulated and poorly levelled farms. Besides waste of scarce irrigation water, fertilizer use efficiency and crop yield suffer due to over and under-irrigation in different parts of the same field. These losses could be avoided through Precision Land Leveling (PLL) using laser technology. It is now well accepted that land levelling results in substantial increases in productivity, particularly if carried out with "Laser guided" equipment. Besides water savings, PLL reduces the time that farmers spend on irrigation, facilitates uniform seed germination, and increases fertilizer use efficiency. All together these factors increase cropping intensity and crop yields. Under this component, about 3,000 laser levelling equipment would be provided to service providers on shared cost basis. These service providers will provide the following land farming
75 services: (i) surveying, farm planning, and layout/designing; (ii) precision land levelling; (iii) introduction of improved irrigation methods e.g. borders/ furrows, water scheduling etc.
230. The equipment will be operated and maintained by service providers who will provide rental services for carrying out laser land leveling within the project area. OFWM staff available at Tehsil level will provide technical assistance to farmers in this regard. Operational cost of the laser along with tractor is estimated as Rs 950/hour (including tractor and driver). The rental value of the laser services is estimated as Rs 1,100 per hour. On average, 8 hours are estimated to level one acre of land. Frequency of land levelling is assumed once in 4 years.
231. The benefited area under this component has been estimated as 2.88 million acres during the project period. However, the project will develop capacity of laser guided land levelling of about 0.9 million acres per annum, through private service providers. Benefits have been estimated by developing typical per acre crop budgets under with and without precision land levelling. As a conservative approach, only 3 percent increase in yield of cotton in Kharif and 4% in yield of wheat in Rabi is quantified for estimating the benefits of laser land levelling. Following a conservative approach for the analysis, no other direct indirect benefits like generation of employment, development of market activities etc. are considered for this analysis.
232. Component B1: Watercourse Improvement in Canal Areas. The estimation of benefits for watercourses improved in canal command areas is based on actual observation and evaluation of the impact of watercourse improvements carried out under various program and more recently under the National Program for Improvement of Watercourses (NPIWC); Sindh On-Farm Water Management and Third On-Farm Water Management Projects, these were funded by the World Bank. These evaluations show (and are taken as an assumption in the economic analysis here) about 26% increase in the amount of water delivered to farms on average. Increased water supplies led to higher cropping intensity and yields, as well as some shift towards higher value crops. A recently completed report of NPIWC shows increase in cropping intensity up to 14% and increase in cultivated area as 7.5%. The report also shows a 7.8% increase in yield of rice; 9% increase in wheat; 12% increase in cotton; 3.5% increase in sugarcane; and 21.8% in maize crop. The ICR of the Third On-Farm Water Management Project estimated that farmers saved about 50% of the labor originally needed for irrigation and as much as 10 days/ha/year on maintenance.
233. Approximately 5,500 watercourses (50% each using brick lining and PPCL technology) serving to about 1.1 million acres in canal command areas shall be improved under the project. Benefits have been estimated considering increase in yield and intensity by developing per acre crop budgets for an average cropping pattern with an intensity of 136 percent under without project situation and 147 percent at full development (i.e. 8% increase). Only one percent increase in the yield of cotton and wheat is assumed for the present analysis. No change in level of inputs or decrease in yield is assumed under without project situation. These are quite conservative assumptions.
234. Component B2. Completion of Partially Improved Watercourses. The program will cover rehabilitation/completion of about 1,500 watercourses which were partially improved earlier, in canal command areas. The benefited area under this component is estimated as 300,000 acres. Benefits of this component are estimated by attributing 50% benefits of a newly lined watercourse on an average basis, as such cropping intensity in this area is estimated to increase from 122% to 127% (i.e. 4% increase) under without project situation to with project situation respectively. Assumptions about increase in yields and level of inputs are same as for the watercourse improvement in the canal command area narrated above.
235. Component B3: Improvement of Watercourses in Non-Canal Command Areas. Farmers in barani/non canal commanded areas of Punjab depend upon very scarce irrigation water available mainly
76 through precipitation. Some water is also supplemented by natural nallahs, small and mini dams, and from limited pockets of groundwater. Efficient use of such a small quantity of irrigation water is only possible through installation of appropriately designed irrigation schemes. The same, inter-alia, include supplying water to the fields of lower or equal elevation by open channels or by providing naccas and turnouts at water abstraction points.
236. This component would cover watercourse improvement in the rainfed/non-canal command areas, i.e. which are not in the command of barrage controlled irrigation but have localized irrigation schemes. These are generally small watercourses and cost of improvement is less. The project would cover rehabilitation of about 2,000 watercourses/ irrigation conveyance system in non canal command areas. Benefited area under this component is estimated as 200,000 acres.
237. Data on land utilization statistics has been used to estimate present cropping intensities based on the average of last 3 years. Based on these estimates, the average pre-project cropping intensity is estimated at about 90 percent in Barani areas and projected to 99 percent for estimating the project benefits under this activity. Wheat is the major crop in Barani areas with less average yield as compared to canal command areas. After providing irrigation services, only 20% increase in wheat yield is assumed under with project situation, whereas actually it would be much more. Other Assumptions
238. Without-project situation. The overall low irrigation efficiency will continue and the irrigated area crop yields may decrease. However, for purposes of this analysis, a conservative approach has been adopted assuming no decrease in the present level of crop yields, inputs and cropped area.
239. With-project situation. As a result of project implementation, additional area will be brought under orchard developing HEIS in the irrigated areas. While appraising the component of watercourse improvement, increase in yield and cropping intensity is estimated based on results achieved in similar programs implemented during past, as described above.
240. Crop Yields. Data for pre-project crop yields for evaluation of Component A2 and Component-B has been taken from published statistics (Crop Area and Production by Districts 2009-10, issued by Ministry of Food and Agriculture Government of Pakistan). A three year average is used to estimate the baseline yields of various crops.
241. Cropping Intensity. Cropping pattern and cropping intensity is worked separately for the irrigated and Barani areas using published statistics. Overall intensity in Punjab is estimated as 136% in irrigated areas and about 90% in the Barani areas.
242. Prices. For the financial and economic analysis, prices of inputs and outputs have been expressed in June 2011 price levels. Data on open market prices was collected through various sources for determining the farm-gate financial prices, including price bulletins issued by the Federal Bureau of Statistics, Government of Pakistan.
243. Economic evaluation has been carried out using economic prices. Import parity prices have been derived for wheat, sugarcane and fertilizers and export parity prices are derived for rice and cotton crops using commodity price data issued by World Bank in June 2011. Appropriate adjustments for transportation, insurance, port handling and storage charges and allied cost have been made while deriving the import and export parity prices. Dollar conversion rate has been used as 1 US$ = 85 Rupees. Prices used for the analysis have been shown in Table 7.4.
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244. A standard conversion factor (SCF) of 0.9 has been used for shadow pricing of all non-tradable commodities. Possible reduction in operation and maintenance has been ignored4 wherever envisaged.
245. Economic Cost. The economic costs are estimated by adjusting the financial cost, taking out the duties and taxes, price contingences and adjusting with SCF of 0.9. Cost of all components is included in the analysis even though only direct benefits of Components A and B are accounted for. Economic cost has been derived using the total project cost in financial terms as US$ 423.5 million. Economic cost has been derived by netting out duties and taxes and after application of SCF. The economic analysis is carried out in local currency.
246. The project life is conservatively assumed to be 25 years including the implementation period of 6 years though the useful life of civil works and HEIS will be much more than 25 years.
Economic Analysis and Sensitivity Analysis
247. Economic Rate of Return (ERR) has been estimated for various project interventions to establish the economic viability of different size of agricultural farms and for each different source of irrigation. For HEIS, the ERR for various crops and farm sizes are summarized in Table 7.1.
Table 7.1: ERR (Percent) of HEIS for various Crops and Farms (Percent)
Farm Size (acres) Sr. Crops 3 5 10 15 A. Drip Installation A.1 Existing Orchards i Citrus 38.9 41.1 50.2 55.6 ii Guava 31.7 33.3 40.6 48.4 iii Mango 40.7 42.8 51.2 58.0
A.2 New Orchards i Citrus 22.1 23.7 27.9 30.9 ii Guava 21.4 22.0 26.2 31.4 iii Mango 22.1 22.7 25.7 28.6
Citrus+Vegetables 27.5 32.1 37.3 43.7
A.3 Vegetables - Tomato 18.1 26.8 32.6 36.0 - Potato 21.2 27.3 33.6 37.5 - Chillies 20.9 28.4 34.0 38.3
A.4 Other Crops i Sugarcane 13.7 18.1 24.9 26.7 ii Cotton 22.0 33.4 35.9 37.4 vi Flower Roses 22.5 31.7 38.0 42.8
B. Sprinkler i Wheat Canal Command 15.8 19.6 30.5 31.6 ii Wheat Barani Area 17.5 21.7 33.6 34.7 iii Pulses 16.2 21.0 27.4 31.6 vi Tomato 15.8 21.1 32.2 33.4
4 The pre-appraisal mission collected data from farmers and FOs on operation and maintenance costs. It is clear from the data collected that farmers spend considerable resources (time, labor and money) to keep the watercourse functional even at the low efficiency. After watercourse improvement, the O&M costs will reduce substantially. To be on the conservative side, the reduction in O&M cost has not been taken into account in the analysis. If the reduction in O&M cost is taken into account the ERR would be higher. 78
248. It is clear that HEIS returns are high for orchards, vegetables, and crops like cotton. Returns are not encouraging for sugarcane. Therefore, the project should promote the use of HEIS in priority for orchards, vegetables, rose flowers and cotton. Returns from new orchards are lower due to a delay in realization of benefits. This is due to the method used in discounting the future benefits.
249. The project ERR by various subcomponents is given below in Table 7.2. HEIS yields highest ERR. The overall project ERR is 32.6 and a B/C ratio of 1.9 at 12% discount rate and the estimation is shown in Table 7.5.
Table 7.2 ERR (%) by Project Major Components Project Intervention ERR % BC Ratio @ 12% Discount rate High Efficiency Irrigation System (HEIS) 43.2 2.1 Laser Land Leveling 32.7 1.5 Watercourse Improvement in Canal Command Area 28.1 2.3 Watercourse Rehabilitation of Partially Improved WCs 23.1 1.9 Watercourse Improvement in Non-Canal Command Area 19.7 1.6 Overall Project 32.6 1.9
250. Sensitivity Analysis. The ERR is robust and not sensitive to reasonable cost overruns, reduced benefits and a combination of both. The impact of cost over runs and reduction in benefits is summarized below: Table 7.3: Sensitivity Analysis: ERR Response Assumptions EIRR % 1 Base Case 32.6 2 Cost Increased by 20% 25.7 3 Benefits Reduced by 20% 24.2 4 Cost Increased by 20% & 18.5 Benefits Reduced by 20% 5 Benefits Delayed by Two Years 19.6 6 Cost increase by 90% and benefits Decreased by 47% 12.0
251. Switching Values: Analyses for switching values indicate that the ERR for the project would fall to 12 percent if the costs increased by more than 91 percent or the benefits decreased by more than 47 percent.
252. Employment Impact: The project would create about 12.9 million additional person days per annum of employment as farm labor. This estimate reflects the additional labor days required for land preparation, plowing, watering, harvesting, etc. at full development. The employment generated for handling incremental production, processing and marketing would be substantial. Also the employment generated during project implementation for construction works, and staffing by HEIS and laser leveling service providers would be very significant.
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Table 7.4 Financial and economic Prices of Input and Output Unit Price (Rupees) Items Unit Financial Economic A. OUTPUTS Mango Ton 18,000 16,200 Citrus Ton 17,000 15,300 Ber Guava Ton 16,500 14,850 Sugarcane Ton 3,750 3,375 Wheat Grains Ton 19,000 30,303 Straw Ton 2,000 1,800 Pulses Ton 25,000 22,500 Cotton Ton 213,600 36,157 Potato Ton 6,100 5,490 Chilies Ton 60,000 54,000 Tomato Ton 20,000 18,000 B. INPUTS Fertilizers Urea Kg. 25.00 38.51 DAP Kg. 47.20 56.81 TSP Kg. 33.00 47.88 SSP (Rs. 316 per Bag) Kg. 11.00 15.96 -N Kg. 18.30 27.45 -P Kg. 39.70 59.55 -K Kg. 32.36 48.54 -F.Y.M. Tons 450 405
Plant Protection Chemical Liter 650 585 Ground Chemical 200 180 Seeds Treatment 250 225
Seed/Plants Mango No. 50.0 45.0 Citrus No. 38.0 34.2 Guava No. 28.0 25.2 Sugarcane No. 0.5 0.4 Wheat Kg. 9.5 8.6 Pulses Kg. 60.0 54.0 Cotton Kg. 20.0 18.0 Tomato(Seed) Kg. 400.0 360.0 Tomato(Plants) No. 0.3 0.2 Chilies Kg. 460.0 414.0 Labour Hired M/Days 150.0 225.0 Others Tractor Rs./Hours 175.0 157.5 Diesel Rs./Gallon 85.0 76.5 Prod. Material (Sticks) Rs./Stick 0.1 0.1 Land Development Rs./Acre 1,500.0 3,600.0 Gunny Bags Rs./Bag 20.0 18.0 Packing Material (Basket) Rs./Basket 10.0 9.0 Packing Material (Crate) Rs./Crate 20.0 18.0 Source: - Agricultural Statistics of Pakistan 2010
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Table 7.5 ERR Analysis (Million Rs.) Component-Wise Operational Costs Component-Wise Net Incremental Benefits
WC WC WC Project HEIS Rehabilitat WC HEIS Rehabilitati Net Improvemen Total Improveme Improvem Year Capital Agronomic Laser ion of Improveme Agronomic Laser on of Total Incremental t in Canal Cost nt in Canal ent in Costs and Other Leveling Partially nt in Barani and Other Leveling Partially Benefits Benefits Command Command Barani Costs Improved Area Benefits Improved Area Area Area WC WC 1 2,851 209 6 67 11 7 3,150 466 - - - - 466 (2,685) 2 5,701 490 108 143 24 14 6,481 1,168 130 112 15 8 1,433 (5,048) 3 5,701 717 382 160 27 16 7,002 2,129 648 449 60 30 3,317 (3,685) 4 5,701 1,002 656 177 29 18 7,583 3,403 1,556 1,010 136 69 6,173 (1,410) 5 5,701 1,290 912 194 32 19 8,149 4,583 2,723 1,683 226 114 9,329 1,180 6 2,851 1,386 912 144 24 14 5,331 5,429 2,205 2,356 316 160 10,466 5,135 7 - 1,452 912 85 14 8 2,471 5,890 2,205 2,916 392 198 11,601 9,130 8 - 1,560 912 85 14 8 2,580 6,355 2,205 3,253 437 221 12,470 9,890 9 - 1,655 912 85 14 8 2,675 6,771 2,205 3,365 452 228 13,021 10,346 10 - 1,726 912 85 14 8 2,746 7,062 2,205 3,365 452 228 13,312 10,566 11 - 1,916 988 85 14 8 3,012 7,362 2,205 3,365 452 228 13,612 10,600 12 - 2,114 1,140 85 14 8 3,362 7,659 2,205 3,365 452 228 13,909 10,547 13 - 2,184 1,140 85 14 8 3,432 7,900 2,205 3,365 452 228 14,150 10,719 14 - 2,243 1,140 85 14 8 3,491 8,084 2,205 3,365 452 228 14,334 10,842 15 - 2,283 912 85 14 8 3,302 8,182 2,205 3,365 452 228 14,432 11,130 16 2,182 912 85 14 8 3,201 8,238 2,205 3,365 452 228 14,488 11,287 17 - 2,062 912 85 14 8 3,082 8,238 2,205 3,365 452 228 14,488 11,406 18 - 2,062 912 85 14 8 3,082 8,238 2,205 3,365 452 228 14,488 11,406 19 - 2,062 912 85 14 8 3,082 8,238 2,205 3,365 452 228 14,488 11,406 20 - 2,062 912 85 14 8 3,082 8,238 2,205 3,365 452 228 14,488 11,406 21 - 2,182 988 85 14 8 3,278 8,238 2,205 3,365 452 228 14,488 11,211 22 - 2,301 1,140 85 14 8 3,549 8,238 2,205 3,365 452 228 14,488 10,939 23 - 2,301 1,140 85 14 8 3,549 8,238 2,205 3,365 452 228 14,488 10,939 24 - 2,301 1,140 85 14 8 3,549 8,238 2,205 3,365 452 228 14,488 10,939 25 - 2,301 912 85 14 8 3,321 8,238 2,205 3,365 452 228 14,488 11,167 26 - 2,301 912 85 14 8 3,321 8,238 2,205 3,365 452 228 14,488 11,167 27 - 2,301 912 85 14 8 3,321 8,238 2,205 3,365 452 228 14,488 11,167 28 - 2,301 912 85 14 8 3,321 8,238 2,205 3,365 452 228 14,488 11,167 29 - 2,301 912 85 14 8 3,321 8,238 2,205 3,365 452 228 14,488 11,167 30 - 2,301 912 85 14 8 3,321 8,238 2,205 3,365 452 228 14,488 11,167 NPV @12% ERR 32.6% Cost 36,989 N/K 2 Benefits 72,027
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Annex 8: Environment and Social Assessment Summary
Background
253. Irrigated agriculture is central to Pakistan‟s economy; because of its arid climate, the annual evaporation far exceeds the rainfall, making irrigation essential for growing crops. Pakistan relies on the largest contiguous irrigation system in the world, namely the Indus Basin Water System (IBWS) to provide basic food security (90 percent of food production and 25 percent of the Gross Domestic Product). Agriculture is the single most important source of employment and exports (two thirds of employment and 80 percent of exports) and irrigation represents more than 95 percent of the total consumptive use of water. However, this massive infrastructure is deteriorating and is in need of modernization along with reforms to improve the allocation of water as well as the efficiency of its use. Moreover, competition for water is growing among the provinces and across the increasing needs for irrigation, industrial and domestic use, and the environment. Yet there remains a need for significant new investment, not only in irrigation but in other uses of water as well, including power generation and urban-industrial and domestic supplies (50 percent of the population is not served by a formal supply system and sanitation and water treatment reaches less than ten percent of the population). At the same time, there is uncontrolled pollution of surface and groundwater from agriculture, industry and rapidly growing cities. Legislative, Regulatory, and Policy Framework
National Legislation and Regulations
254. The Pakistan Environmental Protection Act, 1997 (the Act) is the basic legislative tool empowering the government to frame regulations for the protection of the environment. The requirement for environmental assessment is laid out in Section 12 (1) of the Act. Under this section, no project involving construction activities or any change in the physical environment can be undertaken unless an Initial Environmental Examination (IEE) or an Environmental Impact Assessment (EIA) is conducted, and approval is received from the federal or relevant provincial EPA. The requirement of conducting an environmental assessment of the proposed project emanates from this Act.
255. The Pakistan Environmental Protection Agency Review of IEE and EIA Regulations, 2000 (the „Regulations‟), developed by the Pak-EPA under the powers conferred upon it by the Act, provide the necessary details on preparation, submission and review of the IEE and the EIA. Categorization of projects for IEE and EIA is one of the main components of the Regulations. Projects have been classified on the basis of expected degree of adverse environmental impacts. Project types listed in Schedule I are designated as potentially less damaging to the environment, and those listed in Schedule II as having potentially serious adverse effects. Schedule I projects require an IEE to be conducted, provided they are not located in environmentally sensitive areas. For Schedule II projects, conducting an EIA is necessary.
256. The proposed project falls under Schedule II (Section D) of the Regulations. Hence an EIA has to be conducted for it.5
257. The National Environmental Quality Standards (NEQS), promulgated under the PEPA 1997, specify the following standards:
Maximum allowable concentration of pollutants in gaseous emissions from industrial sources,
5 The terms ESA and EIA have been used interchangeably in this document. The document has been named as the ESA, however, it meets all the requirements of an EIA as well.
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Maximum allowable concentration of pollutants in municipal and liquid industrial effluents discharged to inland waters, sewage treatment and sea (three separate set of numbers). Maximum allowable emissions from motor vehicles. Ambient air quality standards. Drinking water standards Noise standards.
258. The other environmental laws relevant to the project are listed below:
Land Acquisition Act, 1894 Punjab Wildlife (Protection, Preservation, Conservation and Management) Act, 1974 Forest Act, 1927 Canal and Drainage Act, 1873 Punjab Irrigation and Drainage Authority Act, 1997 Punjab On-Farm Water Management and Water Users‟ Associations Ordinance, 1981 Provincial Local Government Ordinances, 2001 Antiquity Act, 1975 Mines, Oil Fields and Mineral Development Act, 1948 Factories Act, 1934 Employment of Child Act, 1991 Pakistan Penal Code, 1860
The World Bank Operational Policies
259. OP 4.01. The World Bank requires environmental assessment (EA) of projects proposed for Bank financing to help ensure that they are environmentally sound and sustainable, and thus to improve decision making.6 The OP defines the EA process and various types of the EA instruments.
260. The proposed project consists of activities which have environmental and social consequences, including:
Damage to assets (such as crops), Loss of land, Deterioration of air quality, Water contamination and consumption, Damage to top soil, land erosion, Safety hazard.
261. Since none of the potential impacts of the project are likely to be large scale, unprecedented and/or irreversible, the project has been classified as Category B, in accordance with OP 4.01. Furthermore, the present ESA is being carried out in accordance with this OP, to identify the extent and consequences of these impacts, and to develop an EMP for their mitigation.
262. Other OPs. Applicability of the other WB safeguard policies with respect to the environmental and social issues associated with the proposed project is tabulated below
6 Excerpts from WB OP 4.01. WB Operational Manual. January 1999.
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Operational Policy Triggered Involuntary Resettlement (OP 4.12) No Forestry (OP 4.36) No Natural Habitat (OP 4.04) No Pest Management (OP 4.09) No Safety of Dams (OP 4.37) No Projects in International Waters (OP 7.50) No Cultural Property (OP 4.11) No Indigenous People (OP 4.10) No Projects in Disputed Area (7.60) No
Project Components (see Annex 2)
Project Alternatives
No-project Alternative
262. The „no-project‟ alternative is not acceptable since in that scenario, a considerable amount of irrigation water will continue to be wasted. As described above, the irrigation sector in the country suffers from among others factors low surface water delivery efficiency as well as wasteful on-farm water use, and only 35-40 percent of irrigation water reaches from the canal head to the crop root zone. Pakistan relies upon its irrigation network for 90 percent of its food production and 25 percent of its GDP. In addition, the country‟s agriculture sector provides two-third of employment and 80 percent of exports. With rising population and the associated increasing pressure on food and other commodities, and decreasing water availability in the rivers, improving water delivery efficiency is vitally important to enhance the irrigation productivity that will in turn increase the productivity of agriculture sector. Alternative Irrigation Methods
263. Flood irrigation has been the traditional method in the country for ages. In this method, the entire cultivation field is flooded with irrigation water. This method is time-consuming and hence labor intensive, highly inefficient in terms of water usage, and also results in other problems such as increased vulnerability to pest attacks and proliferation of weeds, in turn resulting in the increased need of pesticides and weedicides. The high efficiency irrigation methods proposed under the Project address all of these problems, in addition to achieving enhanced yields and productivity of the farms. As already mentioned above, these HEISs typically reduce input costs by 20-35 percent, increase yields by 20-100 percent, lower irrigation labor up to 30 percent, diversify cropping patterns and save up to 75 percent water. 264. It is clear from the above comparison that high efficiency irrigation methods are the preferred options for irrigating the cultivation fields in the country. Environmental and Social Aspects 265. High efficiency irrigation methods generally result in the reduced need of farm inputs such as fertilizers, pesticides, fungicides, and herbicides, as mentioned above. The controlled irrigation generally results in reduced vulnerability of crops to pest attacks and reduced proliferation of weeds, in turn
84 resulting in reduced need of pesticides and herbicides. In addition, fertigation (i.e., application of fertilizers or other soil additives through the irrigation system) is possible for HEISs, such as drip and sprinkler, resulting in enhanced effectiveness of fertilizers and hence their reduced quantities needed. Similarly, for these HEISs, chemigation (i.e., application of pesticides, fungicides, and herbicides through the irrigation system) is possible, resulting in enhanced effectiveness of these chemicals and hence their reduced quantities needed. The overall result of the HEIS is therefore a much reduced usage of chemical inputs. 266. The above mentioned reduced usage of chemical inputs affects the environment and communities in a positive manner. The excessive usage of these chemicals causes contamination of soil and water that may pose health hazards for nearby communities and may also harm natural flora and fauna including beneficial insects that are important for functions such as pollination. With the adoption of high efficiency irrigation methods, contamination of soil and water and the associated negative impacts on communities and natural flora/fauna is likely to be reduced. Alternative Land Leveling Methods
267. Conventional leveling with the help of tractors or graders is the major alternate to laser land leveling, which is included in the proposed project. Environmental and Social Aspects 268. No major environmental and social aspects are associated directly with the leveling activity. The indirect aspects of the conventional leveling methods include increased water consumption, increased need of pesticides, weedicides and other chemical inputs. This excessive usage of chemical inputs can potentially contaminate soil and water, which may pose health hazards for nearby communities and may also harm the natural flora and fauna, as described above as well. It can therefore be concluded that with the help of laser leveling, contamination of soil and water and the associated negative impacts on communities and natural flora/fauna is likely to be reduced. Alternative Methods of On-farm Water Conservation
269. The alternatives available for on-farm water conservation include: (i) piped conveyance system; (ii) re-alignment and brick-lining the entire length of the water course; and (iii) re-aligning and improving the water course, but keeping it earthen (i.e., without brick-lining). The cost of the first alternative would be prohibitive with marginal benefits compared to the second alternative, and the reduction of water losses will not be substantial in case of the third option. Therefore, the benefit-cost ratio is best for the second alternative, which has been selected for the proposed project. Environmental and Social Aspects 270. No major difference exists among the above options in terms of the environmental and social consequences, except that the third option would not fully achieve the objective of water conservation and associated benefits. Alternative Methods of Implementing the Proposed Initiatives
271. The beneficiaries of high efficiency irrigation/laser land leveling/water course improvement schemes under the proposed project would be required to share the cost of establishing the schemes. Once established, these schemes will be operated and maintained by the beneficiaries themselves. This arrangement will ensure „ownership‟ of these schemes by the beneficiaries, and thus the sustainability of the initiative.
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272. Other options include: i) full cost of the scheme to be covered by the Project; and ii) full cost of the scheme to be covered by the beneficiary. The disadvantages of these alternatives are quite obvious; the first option would result in lack of ownership of the schemes by the beneficiaries, while the second option may fail to attract the farmers to adopt new initiatives included under the proposed project. 273. No major difference exists among the above options in terms of environmental and social consequences, except that the selected option will ensure beneficiary and community participation. Environmental and Socioeconomic Profile
Location 274. Punjab Province is located south of the Khyber Pakhtunkhwa (KP) province, the Islamabad Capital Territory; west of the Indian States of Punjab and Rajasthan; north-northeast of the Sindh Province; and east-northeast of the Balochistan Province (see Figure 1 for the map of the Province). Physical Environment
275. Geography. Punjab is Pakistan's second largest province having an area of 205,344 km2 (79,284 sq miles) after Balochistan and is located at the north-western edge of the geologic Indian plate in South Asia. The capital and largest city is Lahore which was the historical capital of the wider Punjab region. Other important cities include Multan, Faisalabad, Sheikhupura, Sialkot, Gujranwala, Jhelum and Rawalpindi. Undivided Punjab is home to six rivers, of which five flow through Pakistani Punjab. From west to east, these are: the Indus, Jhelum, Beas, Chenab, Ravi and Sutlej. Nearly 60 percent of Pakistan's population lives in Punjab. It is the nation's only province that touches every other province; it also surrounds the federal enclave of the national capital city at Islamabad. This geographical position and a large multi-ethnic population strongly influence Punjab's outlook on national affairs and induces in Punjab a keen awareness of the problems of Pakistan's other important provinces and territories. 7 276. The province is a mainly a fertile region along the river valleys, while sparse deserts can be found near the border with Rajasthan and the Sulaiman Range. The region contains the Thal and Cholistan deserts. The Indus River and its many tributaries traverse the Punjab from north to south. 277. The landscape is amongst the most heavily irrigated on earth and canals can be found throughout the province. Weather extremes are notable from the hot and barren south to the cool hills of the north. The foothills of the Himalayas are found in the extreme north as well. 278. Soil Morphology. The texture, morphology, and moisture holding capacities of the soils in the province vary from region to region. The surface crust soils are composed of alluvial deposits consisting of silt, clay, sand, and loam. Clay and silt formations occur in discontinuous layers with limited lateral extent. Their thickness is generally less than five meters8. Due to rich surface irrigation in central Punjab, the fertile soils of the floodplains give a good per unit yield9. 279. Air Quality. A joint air quality study of Lahore, Rawalpindi, and Islamabad by the Pak-EPA and the Japan International Cooperation Agency (JICA), showed that the average suspended particulate matter (SPM) in the study districts was 6.4 times higher than WHO Guideline Values. The levels of sulfur dioxide, carbon monoxide, and oxides of nitrogen also exceeded the acceptable standards in some areas, but the average levels were below the Guideline Values10. Another similar study of Gujranwala and
7 Source: Wikipedia (http://en.wikipedia.org/wiki/Punjab,_Pakistan), accessed on 27 April 2011. 8 Punjab Sustainable Development Strategy, Environment Department, Punjab, 2008 9 Ibid 10 3-Cities Investigation of Air and Water Quality (Lahore, Rawalpindi, Islamabad), JICA/Pak-EPA, 2001
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Faisalabad also revealed higher concentrations of SPM in the ambient air11. However, barring congested urban centers, air quality in rest of the province generally conforms to WHO Guideline Values12. However, the project sites will essentially be located in rural areas where the ambient air quality is likely to be free from most of the criteria pollutants such as sulfur dioxide, carbon monoxide, and oxides of nitrogen. 280. Surface Water Resources. The Indus River and its tributaries are the main source of surface water in the Punjab Province (and in the country). The Indus rises in Tibet, at an altitude of about 5,486 m (18,000 feet) above mean sea level (amsl), and has a total catchment area of 654,329 km2. Length of the Indus River in the country is about 2,750 km. Five main rivers that join the Indus from the eastern side are Jhelum, Chenab, Ravi, Beas and Sutlej. Besides these, two minor rivers - Soan and Harrow also drain into the Indus. On the western side, a number of small rivers join Indus, the biggest of which is River Kabul with its main tributaries i.e. Swat, Panjkora and Kunar. Several small streams such as Kurram, Gomal, Kohat, Tai, and Tank also join the Indus on the right side. 281. The Indus River exhibits great seasonal variations, with more than 80 percent of the total annual flow occurring during the summer months, peaking in June, July and August. 282. Rivers Water Quality: The water quality of Indus River and its tributaries is generally considered excellent for irrigation purposes. The Total Dissolved Solids (TDS) range from 60 mg/l in the upper reaches to 375 mg/l in the lower reaches of the Indus, which are reasonable levels for irrigated agriculture and also as raw water for domestic use. The disposal of saline drainage from various irrigation projects has been a major factor in the increased TDS in the lower reaches of the rivers in Punjab. There is progressive deterioration downstream and the salinity is at its maximum at the confluence of the Chenab and Ravi rivers, where the TDS ranges from 207 to 907 mg/l. A slight improvement in water quality is noted further downstream at Panjnad due to dilution from the inflow from Sutlej River. The quality of the Indus water at Guddu, however, is within acceptable limits for agriculture; TDS being in the range of 164-270 mg/l. 283. In the upper reaches of the Indus River, the Dissolved Oxygen (DO) content remains above 8.5 mg/l which is well above the acceptable levels of 4 mg/l. The Biochemical Oxygen Demand (BOD) downstream of Attock has been recorded as 2.9 mg/l. Indus River water quality has been studied at the Dadu Moro Bridge and Kotri Barrage, with nitrate levels at 1.1 and 7.5 mg/l, phosphate at 0.02 and 0.3 mg/l, BOD at 2.4 and 4.1 mg/l, faecal coliforms at 50 and 400 per ml, and aluminum at 1.8 and 0.2 mg/l respectively. Due to industrial waste discharges from Punjab and Sindh, a high content of heavy metals such as nickel, lead, zinc and cadmium have also been found in Indus water. 284. Groundwater. The Punjab Province can be divided in four hydro-geological zones: Potohar plateau and Salt Range, piedmont areas, alluvial plains, and Cholistan desert. The total groundwater potential in the province (52.7 bcm or 42.75 MAF) is based upon rainfall recharge (12.2 bcm or 9.90 MAF), groundwater recharge (8.7 bcm or 7.08 MAF), recharge from rivers (4.3 bcm or 3.5 MAF), and recharge from the irrigation system (26.7 bcm or 21.70 MAF).13 285. In the last 25-30 years, ground water has become a major supplement to canal supplies, especially in the Upper Indus Plain, where ground water quality is good. Large scale tube-well pumpage for irrigation started in the early sixties. There are presently more than 500,000 tube-wells in the Indus Basin Water System (IBWS). According to a study, the total groundwater potential in Pakistan is of the order of 67.8 bcm (55 MAF).
11 2-Cities Investigation of Air and Water Quality (Gujranwala and Faisalabad), JICA/Pak-EPA, 2003 12 Air Quality Monitoring in Six Districts of Punjab using Physico-Chemical Techniques, Environment Protection Department, Government of the Punjab, 2005 13 Source: Pakistan‟s Groundwater Reservoir and its Sustainability. Muhammad Amin, Member Water, WAPDA.
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286. Major part of the groundwater abstraction for irrigation is within the canal commands or in the flood plains of the rivers. However, the amount of abstraction varies throughout the area, reflecting inadequacy/unreliability of surface water supplies and groundwater quality distribution. 287. The quality of groundwater ranges from fresh (salinity less than 1000 mg/l TDS) near the major rivers to highly saline farther away, with salinity more than 3000 mg/l TDS. The general distribution of fresh and saline groundwater in the country is well known and mapped, as it influences the options for irrigation and drinking water supplies. 288. Availability and quality of groundwater, the depth of water table, and the aquifer recharge rates considerably differ from area to area depending on a number of variables such as amount of precipitation, proximity to surface water channels, and other meteorological factors14. About 79 percent area of the province has fresh groundwater15. High fluoride content is found in groundwater of the Salt Range16. Water table varies from as low as 1 meter in the waterlogged areas to as deep as 90 meters in desert areas17. The groundwater is drawn through hand pumps, tube-wells, springs, and public water supply schemes. Wildlife Protected Areas
289. There exists one national park, nineteen wildlife sanctuaries and five game reserves in the project area. A list of these protected areas is provided in Table 1. Socioeconomic Environment
290. Demographic Profile.18 The population of the province is estimated to be more than 81 million in 2010 and is home to over half the population of Pakistan. The major language spoken in Punjab is Punjabi and Punjabis comprise the largest ethnic group in the country. The language is not given any official recognition in the Constitution of Pakistan at National level. Punjabis themselves are a heterogeneous group comprising different tribes, clans and communities (qaum in Urdu). In Pakistani Punjab these clans and communities have more to do with traditional occupations such as blacksmiths or artisans as opposed to rigid social stratifications. 291. In addition to the Punjabis, the province is also home to other smaller ethnic groups which include the Siraiki, Hindkowan, Sindhis, and Muhajirs. The Muhajirs are Urdu speaking Muslim migrants from India and settled in Pakistan after independence in 1947. Three decades of bloodshed in neighboring Afghanistan have also brought a large number of Afghan refugees to the province. 292. As per the Pakistan census of 1998, linguistic distribution of Punjab province is: Punjabi (75.23 percent), Saraiki (17.36 percent), Urdu (4.51 percent), Pashto (1.16 percent), Balochi (0.66 percent), Sindhi (0.13 percent) others (0.95 percent). The population of Punjab (Pakistan) is estimated to be between 97.21 percent Muslim with a Sunni Hanafi majority and Shia Ithna 'ashariyah minority. The largest non-Muslim minority is Christians and make up 2.31 percent of the population. Other minorities include Ahmedi, Hindus, Sikhs, Parsis, and Bahá'í. 293. The dialects spoken in different regions of the land have a common vocabulary and a shared heritage. The people of Punjab also have a shared spiritual experience, which has been disseminated by Tasawwaf and can be witnessed on the occasion of the remembrance-fairs held on the Urs of Sufi Saints.
14 Punjab Sustainable Development Strategy, Environment Department, Punjab, 2008 15 Water Quality Status in Pakistan, Pakistan Council of Research in Water Resources, Islamabad, 2003 16 Ibid 17 Punjab Sustainable Development Strategy, Environment Department, Punjab, 2008 18 Source: Wikipedia (http://en.wikipedia.org/wiki/Punjab,_Pakistan), accessed on 27 April 2011.
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294. Economy. 19 Punjab has always contributed the most to the national economy of Pakistan. Punjab's economy has quadrupled since 1972. Its share of Pakistan's GDP was 54.7 percent in 2000 and 59 percent as of 2010. It is especially dominant in the service and agriculture sectors of Pakistan economy, with their contributions ranging from 52.1 to 64.5 percent and 56.1 to 61.5 percent, respectively. It is also a major manpower contributor because it has largest pool of professionals and highly skilled (technically trained) manpower in Pakistan. It is also dominant in the manufacturing sector, though the dominance is not as huge, with historical contributions raging from a low of 44 percent to a high of 52.6 percent. In 2007, Punjab achieved a growth rate of 7.8 percent and during the period 2002- 03 to 2007-08, its economy grew at a rate of about 7 percent to 8 percent per year, and during 2008-09 grew at 6 percent against the total GDP growth of Pakistan at 4 percent. 295. Despite lack of a coastline, Punjab is the most industrialized province of Pakistan; its manufacturing industries produce textiles, sports goods, heavy machinery, electrical appliances, surgical instruments, cement, vehicles, auto parts, metals, sugar mill plants, cement plants, agriculture machinery, bicycles and rickshaws, floor coverings, and processed foods. In 2003, the province manufactured 90 percent of paper and paper boards, 71 percent of fertilizers, 69 percent of sugar and 40 percent of cement of Pakistan. 296. Despite its dry climate, extensive irrigation makes it a rich agricultural region. Its canal-irrigation system established by the British is the largest in the world. Wheat and cotton are the largest crops. Other crops include rice, sugarcane, millet, corn, oilseeds, pulses, vegetables, and fruits such as kinoo. Livestock and poultry production are also important. Despite past animosities, the rural masses in Punjab's farms continue to use the Hindu calendar for planting and harvesting. 297. Punjab contributes about 76 percent to annual food grain production in the country. 51 million acres (210,000 km2) is cultivated and another 9.05 million acres (36,600 km2) are lying as cultivable waste in different parts of the province. Cotton and rice are important crops. They are the cash crops that contribute substantially to the national exchequer. Attaining self-sufficiency in agriculture has shifted the focus of the strategies towards small and medium farming, stress on barani areas, farms-to-market roads, electrification for tube-wells and control of water logging and salinity. 298. Punjab has also more than 68 thousand industrial units. The small and cottage industries are in abundance. There are 39,033 small and cottage industrial units. The number of textile units is 14,820. The ginning industries are 6,778. There are 7,355 units for processing of agricultural raw materials including food and feed industries. Lahore and Gujranwala Divisions have the largest concentration of small light engineering units. The district of Sialkot excels in sports goods, surgical instruments and cutlery goods. 299. Punjab is also a mineral rich province with extensive mineral deposits of coal, gas, petrol, rock salt (with the second largest salt mine in the world), dolomite, gypsum, and silica-sand. The Punjab Mineral Development Corporation is running over a hundred economically viable projects. Manufacturing includes machine products, cement, plastics, and various other goods. 300. Land Use / Agricultural Profile. Agriculture is the mainstay of Pakistan's economy. It accounts for 21 percent of the GDP and together with agro-based products fetches 80 percent of the country‟s total export earnings. More than 48 percent of the labor force is engaged in this sector. 301. Punjab province has about 29 percent of the total reported 57 percent of the total cultivated and 69 percent of the total cropped area of Pakistan. It contributes a major share in the agricultural economy of the country by providing about 83 percent of cotton, 80 percent of wheat, 97 percent fine aromatic rice, 63 percent of sugarcane and 51 percent of maize to the national food production. Among fruits, mango
19 Source: Wikipedia (http://en.wikipedia.org/wiki/Punjab,_Pakistan), accessed on 27 April 2011.
89 accounts for 66 percent, citrus more than 95 percent, guava 82 percent and dates 34 percent of total national production of these fruits. 302. Agriculture is still the predominant economic activity of 64 percent population of rural Punjab. About 50 percent of total labor force is employed in agriculture. More than 70 percent of cropped area of Indus Basin is located in Punjab. The principal sources of irrigation are the surface channels supplemented by tube-wells. Rainfall accounts only for a small proportion of the irrigation sources. Sericulture, horticulture, and aviculture are also gaining popularity. Investments in honeybee, sheep, goat, fish, poultry, and dairy farming are also increasing. The major seasonal crops include wheat, rice, maize, and vegetables. Other agricultural products include fodder, fresh vegetables, and lattice20. The reported area of Punjab is 17.62 million hectares, out of which 71 percent is cultivated and the remaining is uncultivated21. 303. Cultural Heritage. A large number of sites exist in the Province having archeological, historical, cultural, and religious significance, and the ones that have been officially notified and protected under the Antiquity Act, 1975 are listed in Table 2. 304. Environmental Hotspots. The environmental hotspots in the Province are essentially the wildlife protected sites listed in Table 1 and the cultural heritage sites listed in Table 2. In addition, heavily forested areas particularly in Murree tehsil are also included in the environmental hotspots in the Province. No project interventions will be carried out inside or at these hotspots.
Figure 1: Punjab Province
20 Punjab Sustainable Development Strategy, Environment protection Department, Go Pb, Final Report, 2008 21 Punjab Development Statistics, Bureau of Statistics, Government of the Punjab, 2007
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Table 1: Protected Areas in Punjab Description Area (ha) Type Coordinates Abbasia Reserve Forest 2,731 Wildlife Sanctuary Not Recorded Bahawalpur R. F. Plantation 547 Wildlife Sanctuary 29/23 N. 71/39 E. Bajwat 5,795 Game Reserve Not Recorded Bhagat Reserve Forest 251 Wildlife Sanctuary Not Recorded Bhakkar Forest Plantation 2,124 Wildlife Sanctuary 31/37 N. 71/03 E. Bheni 2,068 Wildlife Sanctuary Not Recorded Bhon Fazil 1,062 Game Reserve Not Recorded Chak katora Reserve Forest 535 Wildlife Sanctuary Not Recorded Chak Reserve Forest 2,158 Wildlife Sanctuary Not Recorded Changa manga Plantation 5,063 Wildlife Sanctuary 31/05 N. 73/59 E. Chashma Barrage 33,082 Wildlife Sanctuary 32/27 N. 71/19 E. Chashma Lake Not Unclassified 32/27 N. 71/19 E. Recorded Chaupalia 9,857 Game Reserve Not Recorded Chichawatni Forest Plantation 4,666 Wildlife Sanctuary 30/32 N. 72/42 E. Chinji 6,070 National Park 32/42 N. 72/22 E. Cholistan 660,921 Wildlife Sanctuary 29/59 N. 73/16 E. Cholistan 2,032,6 Game Reserve 29/23 N. 71/39 E. Chumbi-Surla 55,943 Wildlife Sanctuary 32/50 N. 72/46 E. Daluana 2,314 Game Reserve Not Recorded Daman Reserve Forest 2,270 Wildlife Sanctuary Not Recorded Daphar Reserve Forest 2,897 Wildlife Sanctuary 32/24 N. 73/08 E. Depalpur Plantation 2,928 Wildlife Sanctuary 30/40 N. 73/39 E. Diljabba-Domeli 118,101 Game Reserve Not Recorded Fateh Major Forest Plantation 1,255 Wildlife Sanctuary Not Recorded Gatwala 5,883 Game Reserve Not Recorded Hamot Reserve Forest 889 Wildlife Sanctuary Not Recorded Head Islam/Chak Kotora 3,132 Game Reserve 29/49 N. 72/33 E. Head Qadirabad 2,850 Game Reserve 32/18 N. 73/29 E. Inayat Reserve Forest 4,211 Wildlife Sanctuary Not Recorded Indo/Pak Border Belt Not Game Reserve Not Recorded Recorded Jalalpur Lake 42 Wildlife Sanctuary 32/32 N. 72/14 E. Jalalpur Sharif Forest 2,263 Wildlife Sanctuary 32/41 N. 73/32 E. Jauharabad Reserve Forest 399 Wildlife Sanctuary 32/17 N. 72/21 E. Kala Chitta 132,605 Game Reserve N. 72/20 E. Kalabagh Game Reserve 1,550 Unclassified 34/04 N. 71/36 E. Kamalia Plantation 4,396 Wildlife Sanctuary 30/43 N. 72/43 E. Kathar 1,141 Game Reserve 33/45 N. 73/07 E. Khabbeke Lake 285 Wildlife Sanctuary 32/37 N. 72/14 E. Khanewal Plantation 7,217 Wildlife Sanctuary 30/18 N. 71/56 E. Kharar lake 235 Wildlife Sanctuary 30/52 N. 73/13 E. Kheri Murat 5,616 Game Reserve Not Recorded Kot Zabzal 10,117 Game Reserve Not Recorded Kotla issan Reserve Forest 2,178 Wildlife Sanctuary Not Recorded Kundal Rakh 2,999 Wildlife Sanctuary Not Recorded Kundian plantation 7,800 Wildlife Sanctuary 32/27 N. 71/29 E. Lal Suhanra 51,588 National Park (WHS) 29/21 N. 71/58 E. Lohi Bher Forest 887 Wildlife Sanctuary 33/43 N. 73/05 E.
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Description Area (ha) Type Coordinates Machu Plantation 4,109 Wildlife Sanctuary Not Recorded Miranpur Reserve Forest 768 Wildlife Sanctuary Not Recorded Mitha Tiwana Plantation 1,116 Wildlife Sanctuary Not Recorded Namal lake 482 Game Reserve 32/40 N. 71/49 E. Pirawala kikarwala 506 Game Reserve 30/21 N. 72/02 E. Qadirabad Head Works 2,849 Game Reserve 32/18 N. 73/29 E. Rahri Bungalow 5,463 Game Reserve Not Recorded Rajan Shah Plantation 2,110 Wildlife Sanctuary Not Recorded Rakh Ghulaman 4,356 Wildlife Sanctuary Not Recorded Rasool Barrage 1,138 Game Reserve 32/42 N. 73/33 E. Shorkot Forest Plantation 4,079 Wildlife Sanctuary 30/50 N. 72/04 E. Sodhi I 5,817 Wildlife Sanctuary 32/35 N. 72/17 E. Taunsa Barrage 6,566 Wildlife Sanctuary 30/42 N. 70/46 E. Tehra Plantation 339 Wildlife Sanctuary Not Recorded Thal 71,275 Game Reserve 33/22 N. 70/33 E. Ucchali lake 942 Game Reserve 32/36 N. 72/13 E. Wathar Reserve Forest 1,874 Wildlife Sanctuary Not Recorded
Table 2: Cultural Heritage Sites in Punjab
Attock District 1. Lala Rukh‟s tomb, Hasan Abdal, Attock. 2. Begum ki Sarai, on left bank of Indus River near Attock fort, Attock. 3. Saidan Baoli, Hatti, Attock. 4. Hakim‟s tomb, Hasan Abdal, Attock. 5. Chitti Baoli, Pindi Suleman Makhan, Attock. 6. Attock Fort, Attock. 7. Attock tomb, on G. T. Road near Ziarat Hazrat Baba Sahib, Attock. 8. Behram ki Baraddari, Attock. 9. Tope and Mnastery (Buddhist remains), 5 miles east of Hasan Abal Baoli Pind, Attock. 10. Kallar (temple) or Sassi da Kallara, village Shah Muhammad Wali, Tesil Talagang, Attock. 11. Site at Garhi, village Malak Mala, 6 miles east of hasan Abal, Attock. 12. Inderkot mosque, Fateh Jang, Inderkot, Attock. 13. Buddhist site (Behari Colony) Hasan Abddal Town, Behari Colony, Attock. Bahawalpur District 14. Tomb of Abu Hanifa, Uchh Sharif, Bahawalpur. 15. Tomb of Bibi Jawidi, Uchh Sharif, Bahawalpur. 16. Tomb of Nuria, Uchh Sharif, Bahawalpur. 17. Tomb of Bhawal Halee, Uchh Sharif, Bahawalpur. 18. Tomb of Musa Pak Shaheed, Uchh Sharif, Bahawalpur. Dera Ghazi Khan District 19. Ghazi Khan‟s Tomb, Mohalla Zaminaran, Village Chirotta, Ddera Ghazi Khan. 20. Ther Dallu Roy, Dajal, Ddera Ghazi Khan. Fasialabad District 21. Wangar Wala Tibba, Chak No. 742, Tehsil Taoba Tek Singh, Faisalabad. Gujranwala District 22. Baraari in Sherawala garen, Gujranwala city. 23. Tomb of Abdul Nabi Kotli Maqbara, Gujranwala. Gujrat District 24. Akbari Baoli in fort Gujrat city. 25. Bahar Wali, Baoli Kharian Town, Gujrat. 26. Tomb of Shaikh Ali Baig, locally calle Hanjeera, Village Hailan, Tehsil Phalia, Gujrat. Jhang District
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27. Shahi Masi, Chiniot, Jahng. 28. Tomb of Shah Burhan, Chiniot, Jhang. Jhelum District 29. Rohtas Fort, 5 miles from Dina Railway Station, Jhelum. 30. Ruined Temple with gateway, Melot, Jhelum. 31. Raja Mansigh‟s Haveli Rohtas, Jhelum. 32. Hill measuring 25 ft. long and 190 ft. broad, Murti in Tehsil Pind Dadan Khan, Jhelum. 33. Two ancient teples, Bhagan Wala, 11 miles from Haranpur Railway Station, Jhelum. 34. Ruins of Nandana, For Bhagan Wala, Jhelum. 35. Sardar of Hari Singh‟s Haveli, Katas, Jhelum. 36. Ruined Buddhist Stupa area around it, Katas, Tehsil Pind Dadan Khan, Jhelum. 37. Satghara temple Village Katas, Tehsil Pind Dadan Khan, Jhelum. Khanewal District 38. Tomb of Khali Walid, village Kabirwala, Khanewal. Lahore District 39. Tomb of Ali Mardan Khan and Gateway, Lahore. 40. Buddo‟s tomb, Lahore. 41. Sarvwala Maqbara, Lahore. 42. Huzuri Bagh Baradari, Lahore. 43. Dai Anga‟s tomb, Lahore. 44. Shalamar Garden, including baradari, gateway, kiosks, pavilions, well, Naqqar Khana, asmani well and garden, Lahore. 45. Old Fort, Lahore. 46. Buddho ka Awa, Lahore. 47. One kos minar, Lahore. 48. Roshani gate, Lahore. 49. Mirza Kamran‟s baradari, Lahore. 50. Tomb of Dr. Muhammad Iqbal, Lahroe. 51. Tomb of Dr. Muhammad Iqbal, 34-A, Mcleod Road, Lahore. 52. Chauburji, Mazang, Lahore. 53. Gulabi Bagh gatweay, Begumpura, Lahore. 54. Qutbudddin Aibak‟s tomb, Anar kali street, Lahore. 55. Tiledd gatweay and two bastions, Nawankot, Lahore. 56. Two kos minars, Minola, 6 miles from Jullo, Lahore. 57. Tomb of Shaikh Mosa, Ahangar, mosque and house, Mcleod Road, 35, Chiraghan Street, Lahore. 58. Tomb of (erroneously called) Zebun-Nisa, Nawankot, Lahore. 59. Naddira Begum‟s tomb and tank, Mian Mir, Lahore Cantonment, Lahore. 60. Hujra Mir Mehdi (Janazegah), Kot Khawaja Saeed, Lahore. 61. Tomb of Prince Parwaiz, Kot Khawaja Saeed, Lahore. 62. Tomb of Nawab Bahadur Khan, Mughalpura near Railway crossing, B-II, South of railway carriage shop, Lahore. 63. Javedd Manzil, Allama Iqbal Road, Lahore. 64. Jahangir‟s tomb and compound, Shahdara, Lahore. 65. Akbari Sarai an mosque, Shahdara, Lahore. 66. Tomb of Asif Khan and compound, Shahdara, Lahore. 67. Tomb of nur Jeha, Shahdara, Lahore, 68. Tomb of Mahabat Khan and boundary wall, Baghbanpura, Lahore. 69. Samadh of Rajit Singh, Karakh Singh and Nau Nihal Singh, Lahore. 70. Tomb of Anarkali, Lahore. 71. Baradari and Samadh of Maharaja Sher Singh, Lahore. 72. Badshahi mosque, Lahore. 73. Wazir Khan‟s mosque, Lahore. 74. Chitta gate, Chowk Wazir Khan inside elhi Gate, Lahore. 75. Another gate to northeast of Wazir Khan‟s mosque, Chowk Wazir Khan, Lahore. 76. Well of Raja Dina Nath, Chowk Wazir Khan, Lahore. 77. Masti gate, Lahore.
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78. Bhati gate, Lahore. 79. Sheranwala gate, Lahore. 80. Kashmiri gate, Lahore. 81. Lahori known as Lahori gate, Lahore. 82. Delhi gate, Lahore. 83. Wazir Khan‟s hammams inside Delhi gate, Chowk Wazir Khan, Lahore. 84. Haveli Nau Nihal Singh including garden, quarters, latrine etc. inside Bhati gate, Kucha Nau Nihal Singh, Lahore. 85. Tomb of Khawaja Sabir (Nawab Nusrat Khan) inside Railway Mechanical Workshop, Mughalpura, Lahore. 86. Tomb of French Officer‟s ddaughter, Kuri Bagh, Lahroe. 87. Wazir Khan‟s baradari, oldd Anarkali, Behind Lahore Museum, Lahore. 88. Samadh of Jhingar Shah Suthra (Suthron ka Asthan) Suthron, Teshl Lahore, Lahore. 89. Samadh of Bhai Wasti Ram Tixali gate near Shahi Qila, Lahore. 90. A Mughal period tomb, Tehsil Lahore Singhapura, oppsite Police Post, Lahore. 91. Jani Khan‟s tomb, Baghbanpura, Lahore. 92. Dai Anga‟s mosque, Naulakha, Lahore. 93. Mosque with glazed tiles work, Bagumpura, Lahore. 94. Mosque of Nawab Zakariya Khan, Bagumpura, Lahore. 95. Inayat Bagh, opposite Shalamar Garden, Bagumpuura, Lahore. 96. Angori bagh, opposite Shalamaer Garen Bagumpura, Lahore. 97. Mariam Zammani mosque, insie Masti gate, Lahore. Mianwali District 98. Shershah‟s baoli, Wah Buchhran, Mianwali. 99. A buddhist Stupa with a surrounding area on River Inddus to the north of Village Rokhari, Mianwali. Multan District 100. Sawi Masjid an graves, Kotla Tole Khan, Multan. 101. Tombs of Petrick Alexander Vana, Andrew & William Anderson, Old Fort, Multan. 102. Shrine of Rukne Alam, Old For, Multan. 103. Tomb of Shah Ali Akbar‟s mother, Sura Miana, Multan. 104. Tomb of Shams Tabriz, Sura Miana, Multan. 105. Tomb of Shah Ali Akbar, Sura Miana, Multan. 106. Tomb of Shah Yousuf Gardezi, Multan. 107. Mound Ratti Khari, Head Bust 133 village Bhatianwala, Teshil Kaberwala, Multan. 108. Tobm of Shah Hussain Soozai, near Abdal Road, Multan. 109. Tomb of Mai Mehraban, Mohallah Kirialoghana, Multan. 110 Ruined mosque Village Sargana, Multan. 111. Maryala Moun, Chak No. 267/IOR, Multan. Muzaffargarh District 112. Tomb of Thar Khan Nahar, Sitpur, Musaffargarh. 113. Mosque of Tahar Khan Nahar, Sitpur, Muzaffargarh. 114. Tomb of Sheikh Sadan Shaheedd, Village Sadan, Muzaffargarh. Rawalpini District 115. Tope or stupa (Buddhist), Mankiyala, Rawalpindi. 116. Top or stupa (Buddhist) Bhallar, Rawalpindi. 117. Pharwala fort Pharwala, Rawalpindi. 118. Losar baoli, Wah Cantonment, Rawalpindi. 119. Bhir Moun,Taxila, Mauza Majawer, Rawalpindi. 120. The area or Track known as Babar Khan, Taxila, Babar Khan, Rawalpindi. 121. Kalawansite, Mauza Karawal, Rawalpindi. 122. Chirtope site, Taxila, Chirtope, Rawalpindi. 123. Sirkap site, Mauza Gangu Bahaddur, Rawalpindi. 124. Giri remains, Mauza Khuram Gujjar, Rawalpindi. 125. Mohra Maradu site, Taxila, Rawalpindi. 126. Rewat fort, Village Rewat, Rawalpindi. 127. Nicholson Column, Margala Pass, Rawalpindi. 128. Kos minar, Milestone 102, G.T. Road, Rawalpindi.
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129. Kos Minar, near Golara Railway Station, Rawalpindi. 130. Farudgh-e-Shahan-e-Mughalia, tank and garden Wah, Rawalpindi. 131. Ratta Pind, Village Gangu Bahadur, Rawalpindi. Sahiwal District 132. Mounds, Harappa, Saiwal. 133. Mir Chakar‟s tomb, Satghara, Sahiwal. 134. Tomb of Syyed Daud Kirmani, Shergah, Sahiwal. Sargodha District 135. Three temple inside fort, Amb Sargodha. 136. Site of ancient city, Bhera, Sargodha. 137. Site of ancient city, Vijjhi, 2 milles southwest of Miani known as Sabzal Pind, Sargodha. 138. A red sandstone teple, Sodhi Zerin, Sargodha. Sheikhupura District 139. Sheikhupura fort, east of Sheikhupura town, Sheikhupura. 140. Baoli and mosque, Jandiala Sher Khan, Sheikhupura. 141. Tank and tower, Sheikhupura. 142. Tomb of Abdullah Shah, Jandiala Sher Khan, Sheikhupura. 143. Mound Mian Ali Sahib, Mian Ali Faqiran, Sheikhupura. 144. Tibba (Mound), Kala Shah Kaku, Sheikhupura. 145. Tomb of Noor Muhammad, Jandiala Sher Khan, Sheikhupura. 146. Tomb of Hafiz Barkhurdar, Jandiala Sher Khan, Sheikhupura. Sialkot District 147. Tibba Jolian, Sialkot.
Stakeholder Consultations
Objectives
305. Stakeholder consultation is an integral part of the environmental and social assessment for a project such as PIPIP, and aims to provide a two-way communication channel between the stakeholders and the project proponents. In line with this aim, the objectives of stakeholder consultation conducted as part of the ESA were to:
develop and maintain communication links between the project proponents and stakeholders,
provide key project information to the stakeholders, and to solicit their views on the project and its potential or perceived impacts, and
ensure that views and concerns of the stakeholders are incorporated into the project design and implementation with the objectives of reducing or offsetting negative impacts and enhancing benefits of the proposed project. Consultation Process 306. Consultations with project stakeholders were carried out while conducting the ESA. A participatory and consultative approach was employed for information gathering and data collection. 307. Meetings and consultations were held with a range of key informants as well as government and civil society stakeholders at different levels. The focus group discussions with smaller groups of grassroots stakeholders were held, whereas discussions with the institutional stakeholders were arranged in consultation workshops. These discussions were held with project affected people, project beneficiaries and other local communities in Attock, Rawalpindi, Chakwal, Lahore, Okara, Sahiwal, Multan, Bhakkar, and Layyah districts. An attempt was made to consult stakeholders from all of the distinct regions of the province with respect to the cultivation and water availability – Potwar, Central Punjab, Sothern Punjab, and Thal desert. This process of stakeholder consultation was conceived to interact meaningfully with
95 affected communities and other stakeholders. The consultations also helped better understand local knowledge with respect to the various sets of issues and concerns, and integrate these into the project design and EMP. Consultations with Institutional Stakeholders
308. The institutional stakeholder consultations were held during the workshops organized in Rawalpindi and Multan. Representatives of the following organizations were invited for these workshops:
Pakistan Environmental Protection Agency (EPA) Punjab EPA and EPD Planning Commission P&DD, Punjab Ministry of Environment Ministry of Food and Agriculture Ministry of Water and Power Officials from the Agriculture Department, Punjab NARC The Pakistan Water and Power Development Authority (WAPDA) Pakistan Council for Research on Water Resources (PCRWR) Irrigation Department Barani Agriculture University, Rawalpindi Agriculture University, Faisalabad National University of Science and Technology (NUST) International Islamic University World Bank Asian Development Bank United Nations Development Program (UNDP) Barani Agriculture Research Institute (BARI) Punjab Economic Research Institute (PERI) Cotton Research Center, Multan Sustainable Development Policy Institute (SDPI) International Union for Conservation of Nature (IUCN) WWF.
309. Concerns Raised and Suggestion Forwarded by Institutional Stakeholders. The institutional stakeholders raised several concerns and provided useful suggestions/recommendations. These are provided below.
The capacity building and awareness raising of farmers should also address the water-borne diseases caused by over irrigation. The use of FM radio should be promoted for the awareness raising and capacity building of farmers for the improved irrigation techniques. The research institutions should also play their role in capacity building of farmers and the Department staff. The research institutes should arrange farmers‟ gatherings and workshops. More effective investment is needed for the bed-furrowing with the help of laser leveling.
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Trees and livestock are important elements of the rural agricultural economy. The tree cutting caused by the water course improvement should be compensated through plantation of appropriate tree species at appropriate locations. Tree plantation can be used for nitrogen fixing of soil, as wind breaker particularly in areas that experience sand/wind storms. Drip irrigation should be promoted in areas having undulating terrain. The national water policy needs to be devised addressing judicious use of the available water for irrigation. Sustainability of modern irrigation techniques needs to be studied through research. The laser land leveling equipment should be provided to the rental services. Demonstration systems should be arranged at regional level to showcase the modern irrigation techniques. The Project interventions can employ the rural unemployed youth. The private sector should be motivated to participate in promoting the modern irrigation techniques. Drip irrigation system is ideal for locations where water is scarce. The private sector needs to be supported and encouraged to develop simple machinery for bed-furrowing and other similar tasks. The water course improvement can potentially cause tree cutting and loss of natural vegetation. Tree cuttings should be restricted to only those trees causing restriction in water flow or hindrance in civil works. Existing provision for improvement of entire earthen section may be reconsidered to relax the same for a certain portion located at tail end of watercourse where water flows only for a few hours. The hydrological data needs to be collected and analyzed to fully understand the impact of water course lining on the groundwater recharge. Laser land leveling is now becoming economically viable and sustainable. Other interventions such as water course lining are not yet sustainable and government‟s support is needed to undertake these improvements. Environmental impacts of brick kilns, which would provide bricks for the Project, needs to be highlighted. Local manufacturing of drip irrigation systems and their parts should be encouraged. The traditional flood irrigation system is no more viable in view of the water shortage, hence high efficiency irrigation methods should be promoted through the Project. Tube-wells should be installed giving due consideration to their location and inter-tube-well distance. The lining of the water courses should be carried out beyond the current limit of 30 percent. The quality of water course lining needs to be improved, and the Department team should regularly monitor this aspect. The soil and water pollution caused by the left over plastic tubing and other parts for the drip/sprinkler irrigation system needs to be addressed. The drip irrigation system is currently suitable for large farmers having more resources available to them and having more know-how/awareness. The barriers for its adaptation by the small farmers need to me removed. Pest management component needs to be included in the Project, addressing the use of pesticides (and other chemical inputs) in the high efficiency irrigation techniques. Awareness raising and capacity building components should also be included in the Project in this regard. Additionally, this aspect needs further field research. The contaminated water in the canals is causing diseases, since it is used for drinking purposes in many areas. The use of solar energy should also be explored for pumping groundwater. Trees are sometimes cut down for improving the water courses. The compensatory tree plantation should be included in the Project (and Water User Associations‟ contracts with the Department). The Department should also encourage the farmers to build water ponds to store irrigation water. Laser leveling is highly beneficial for water conservation. The tube-wells are being misused, and there is no law to control the installation of new tube-wells. The Department should promote small dams and sprinkler/drip irrigation in the Potohar region of the Province.
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Grass Root Stakeholders Consultations
310. The grass root consultations were carried out to inform the communities about the project and to
obtain their views and concerns. These consultations were carried out at the following locations:
Farm of Qamar-ul-Zaman and others, Tehsil Hazro, District Attock Farm of Ahsan Khan and others, Tehsil Hazro, District Attock Farm of Mohammad Arshad Khan and others, Tehsil Hazro, District Attock Farm of Moazzam Javed and others, Tehsil and District Attock Farm of Malik Ghulam Hussain and others, Tehsil Jand, District Attock Farm of Khursheed Ahmed Khan and others, Tehsil Fateh Jang, District Attock Farm of Chaudhry Mushtaq and others, Tehsil and District Rawalpindi (near Chakri) Farm of Mian Abdul Majeed and others, Tehsil and District Rawalpindi (near Chakri) Farm of Iqtedar Amir and others, Tehsil and District Chakwal
Farm of Mohammad Hayat and others, Tehsil and District Chakwal WUA # 7828 (Khwaja Faqir), Lahore Cantonment.
WUA # 4412/R (Taqi Pur), Lahore Cantonment Farm (Countryside Natural Products (Pvt.) Ltd.), Tehsil Ferozwala, District Sheikhupura Farm of Shabir Hussain and others, Tehsil Muridke, District Sheikhupura
Water course # 79430-L, Renala Khurd, District Okara Water course # 40477-L, Renala Khurd, District Okara Farm of A. Ashiq Babar and others, Chichawatni, District Sahiwal Water course # 6072-TR, Chichawatni, District Sahiwal Farm of Malik Hammad Hyder and others, Chichawatni, District Sahiwal
Water course # 13528-TF, Chichawatni, District Sahiw al Water course # 16575-L, Shakh-e-Madina, District Multan Water course # 37810-L, Gagra, District Multan Farm near Karor, District Layyah Farm of Ahmed Mujtaba and others, Karor, District Layyah Farm of Asad Imran and others, District Layyah
Farm of Bashir A. Khan and others, District Bhakkar Farm of Rana Munawar and others; Chaubara, District Layyah Farm of Mohammad Husnain and others, Chaubara District Layyah
Farm of Sardar Nasir Abbas Magsi and others, Chaub ara, District Layyah
311. Table 3 presents list of the discussants and the key issues raised during the consultations.
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Table 3: Key Issues Discussed during Grass Root Consultations Location/Farmers Number and Type Key Issue Discussed of Participants Farm of Qamar-ul-Zaman and 10; Very positive impact on productivity; water others, Tehsil Hazro, District Farmers; consumption after scheme completion reduced Directorate General to one-third; area under cultivation increased; Attock Agriculture (WM) price of land increased. officers; District Extension of scheme is needed; the farmers Officer (DO), showed keenness to participate in any future Deputy District scheme of same or similar nature. Officer (DDO), The Department officials informed the farmers Assistant about high efficiency irrigation techniques and Agriculture the forthcoming project. Engineer (AAE) Farm of Ahsan Khan and 9; Farmers very happy with increased others, Tehsil Hazro, District Farmers; productivity; water consumption after scheme Directorate General completion reduced to one-third; area under Attock Agriculture (WM) cultivation increased; price of land increased. officers; DO and Quantities of fertilizers and pesticides needed DDO; Supply and reduced. Service Company Farmers showed satisfaction with the SSC (SSC) support. The farmers showed keenness to participate in any future scheme of same or similar nature. Farm of Mohammad Arshad 10; Farmers satisfied with increased output; water Khan, and others Tehsil Farmers; consumption after scheme completion Directorate General reduced. Hazro, District Attock Agriculture (WM) Quantities of fertilizers and pesticides needed officers; DO and reduced. DDO; Supply and Farmers showed satisfaction with the SSC Service Company support. (SSC) The farmers showed willingness to participate in any future scheme of same or similar nature. Farm of Moazzam Javed and 8; Farmers satisfied with increased output; water others, Tehsil and District Farmers; consumption after scheme completion Directorate General reduced. Attock Agriculture (WM) Quantities of fertilizers and pesticides needed officers; DO and reduced. DDO The farmers showed willingness to participate in any future scheme of same or similar nature. The Department officials informed the farmers about high efficiency irrigation techniques and the forthcoming project. Farm of Malik Ghulam 12; Farmers satisfied with increased wheat output; Hussain and others, Tehsil Farmers; water consumption and cost of irrigation after Directorate General scheme completion reduced. Jand, District Attock Agriculture (WM) Quantities of fertilizers and pesticides needed officers; DO and reduced. DDO; Supply and Farmers showed satisfaction with the SSC Service Company support. (SSC) The farmers showed willingness to participate in any future scheme of same or similar nature.
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Location/Farmers Number and Type Key Issue Discussed of Participants Farm of Khursheed Ahmed 15; Farmers satisfied with increased orchard Khan and others, Tehsil Fateh Farmers; output; water consumption and cost of Directorate General irrigation after scheme completion reduced. Jang, District Attock Agriculture (WM) Quantities of fertilizers and pesticides needed officers; DO and reduced. DDO; Supply and Farmers showed satisfaction with the SSC Service Company support. (SSC) The farmers showed willingness to participate in any future scheme of same or similar nature. Farm of Chaudhry Mushtaq 9; Farmers showed satisfaction on the success of and others, Tehsil and District Farmers; scheme. They have applied for drip irrigation Directorate General scheme for the farm. Rawalpindi (near Chakri) Agriculture (WM) The farmers reported limited use of pesticides officers; DO and and fertilizers. AE The farm provides employment to more than 20 workers. The Department officials informed the farmers about high efficiency irrigation techniques and the forthcoming project. Farm of Mian Abdul Majeed 12; Farmers reported increased output from the and others, Tehsil and District Farmers; farm after the completion of the scheme. In Directorate General addition to the increased income to the Rawalpindi (near Chakri) Agriculture (WM) owners, the farm has provided employment to officers; DO and about 50 workers. AE The farmers enquired about any future schemes offered by the Department. The Department officials informed the farmers about high efficiency irrigation techniques and the forthcoming project. Farm of Iqtedar Amir and 10; Farmers satisfied on the success of scheme. others, Tehsil and District Farmers; They have applied for drip irrigation scheme Directorate General for the farm. Chakwal Agriculture (WM) The farmers reported limited use of pesticides officers; DO and but increased use of fertilizers. AE The farm provides employment to more than 6 workers. The farmers willing to adopt high efficiency irrigation techniques. The Department officials informed the farmers about high efficiency irrigation techniques and the forthcoming project. Farm of Mohammad Hayat 11; Farmers reported increased output from the and others, Tehsil and District Farmers; farm after the completion of the scheme. Directorate General The farmers have applied for the Chakwal (WM) officers; DO Government‟s scheme for the high efficiency and DDO irrigation system. Water course # 7828 (Khwaja 21; Farmers showed their satisfaction about the Faqir), Lahore Cantonment. WUA members and water course improvement and reported water other farmers; conservation after the completion of scheme. Directorate General They expected the Department to provide Agriculture (WM) further assistance. officers; DDO, The community mobilization was found to be
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Location/Farmers Number and Type Key Issue Discussed of Participants AAE, WMO, Sub effective. The WUA documentation was Engineers (SEs) found to be proper. The community showed interest in high efficiency irrigation methods and laser land leveling. The WUA members complained about delayed payments, and also requested the Department to increase the earlier payment installments and decrease the last installment. Trees need to be cut for water course improvement works. Compensatory tree plantation should be carried out. The Department officials informed the farmers about the forthcoming project involving laser land leveling, high efficiency irrigation techniques, and water course improvement. Water course # 4412/R (Taqi 17; Farmers reported water conservation after the Pur), Lahore Cantonment WUA members and completion of scheme. They expected the other farmers; Department to provide more assistance for Directorate General further improvement in the water courses. Agriculture (WM) The community mobilization was found to be officers; DDO, effective. The WUA documentation was AAE, WMO, Sub found to be acceptable with some need for Engineers (SEs) improvement. The community showed interest in high efficiency irrigation methods and laser land leveling. The WUA members complained about delayed payments, and also requested the Department to increase the earlier payment installments and decrease the last installment. Trees need to be cut for water course improvement works. Compensatory tree plantation should be carried out. The Department officials informed the farmers about the forthcoming project involving laser land leveling, high efficiency irrigation techniques, and water course improvement. Farm (Countryside Natural 10; The farmers reported achieving very high Products (Pvt.) Ltd.), Tehsil Farmers; yield from the farm using of the drip irrigation Directorate General system. Ferozwala, District Agriculture (WM) The quantities of pesticides and fertilizers Sheikhupura officers; DDO, need were reduced. AAE, SSC Water consumption was significantly reduced. The farmers showed satisfaction regarding the service provided by the SSC. Farm of Shabir Hussain, 11; The farmers reported achieving high yield Tehsil Muridke, District Farmers; from the farm using of the sprinkler irrigation Directorate General system for wheat crop. Sheikhupura Agriculture (WM) The quantities of herbicides and fertilizers officers; DDO, need were reduced. AAE, SSC Water consumption was significantly reduced. The farmers showed satisfaction regarding the
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Location/Farmers Number and Type Key Issue Discussed of Participants service provided by the SSC. Water course # 79430-L, 25; The farmers reported the reduction in time Renala Khurd, District Okara WUA members and required to irrigate the fields after the other farmers; improvement of the water courses. They Directorate General expected the Department to provide more Agriculture (WM) assistance for further improvement in the officers; DO, DDO, water courses. AE; Consultant The farmers now moving to further improvements such as laser land leveling. The community mobilization was found to be effective. The WUA documentation was found to be acceptable with some need for improvement. The community showed interest in high efficiency irrigation methods and laser land leveling. The WUA members complained about delayed payments, and also requested the Department to increase the initial payment installments and decrease the last installment. Trees need to be cut for water course improvement works. Compensatory tree plantation should be carried out. The Department officials informed the farmers about the forthcoming project involving laser land leveling, high efficiency irrigation techniques, and water course improvement. Water course # 40477-L, 22; The farmers reported the reduction in time Renala Khurd, District Okara WUA members and required to irrigate the fields and increase in other farmers; the irrigated area after the improvement of the Directorate General water courses. They expected the Department Agriculture (WM) to provide more assistance for further officers; DO, DDO, improvement in the water courses. AE; Consultant The community mobilization was found to be effective. The WUA documentation was found to be acceptable with some need for improvement. The community showed interest in high efficiency irrigation methods. The WUA members complained about delayed payments, and also requested the Department to increase the initial payment installments and decrease the last installment. Trees need to be cut for water course improvement works. Compensatory tree plantation should be carried out. The Department officials informed the farmers about the forthcoming project involving laser land leveling, high efficiency irrigation techniques, and water course improvement. Farm of M. Ashiq Babar, 10; The farmer reported about 30% saving in Chichawatni, District Sahiwal Farmers; water requirements after laser land leveling. Directorate General Use of herbicides, fertilizer, and pesticides
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Location/Farmers Number and Type Key Issue Discussed of Participants Agriculture (WM) reduced. officials, DO, DDO, The farmers showed satisfaction about the AE; Consultant equipment and after-sales service provided by the SSC. Water course # 6072-TR, 12; The farmers reported increased availability of Chichawatni, District Sahiwal WUA members and water and hence increase in the irrigated area other farmers; after the improvement of the water courses. Directorate General They expected the Department to provide Agriculture (WM) more assistance for further improvement in the officials, DO, DDO, water courses. AE; Consultant The community mobilization was found to be effective. The WUA documentation was found to be acceptable with some need for improvement. The community showed interest in high efficiency irrigation methods. The WUA members complained about delayed payments, and also requested the Department to increase the initial payment installments and decrease the last installment. Trees need to be cut for water course improvement works. Compensatory tree plantation should be carried out. The Department officials informed the farmers about the forthcoming project involving laser land leveling, high efficiency irrigation techniques, and water course improvement. Farm of Malik Hammad 5; Farmers reported 30% saving in water use and Hyder and others, Farmers; 30% increase in yield after laser land leveling. Directorate General Decreased use of fertilizer and weedicides. Chichawatni, District Sahiwal Agriculture (WM) The farmer informed that without subsidy, officials, DO, DDO, they and other farmers would not be able to AE, Supervisor afford the laser land leveling. The Department officials informed the farmers about the forthcoming project involving laser land leveling, high efficiency irrigation techniques, and water course improvement. Water course # 13528-TF, 18; The WUA members reported reduction in Chichawatni, District Sahiwal WUA members and water losses, labor required for irrigating the other farmers; fields, and water pilferage - because of the Directorate General water course improvement. Agriculture (WM) The WUA members complained about officials, DO, DDO, delayed payments from the Government and AE; Consultant difficulty in getting farmers‟ contributions. The farmers usually have money only after the harvest. The delays in payments also affect the material purchase, since the material rates keep on increasing. The WUA members also complained about tough criteria used by the consultants for approving the works, increasing labor expenses, and requested that the Government‟s share should be increased. Trees need to be cut for water course
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Location/Farmers Number and Type Key Issue Discussed of Participants improvement works. Compensatory tree plantation should be carried out. The Department officials informed the farmers about water course improvement, laser land leveling and high efficiency irrigation techniques in the forthcoming project. Water course # 16575-L, 29; The farmers reported increased availability of Shakh-e-Madina, District WUA members and water and hence increase in the irrigated area other farmers; after the improvement of the water courses. Multan Directorate General They expected the Department to provide Agriculture (WM) more assistance for further improvement in the officials; DO, water courses. DDO, AE, WMO, The community mobilization was found to be Supervisors, effective. The WUA documentation was Rodmen found to be acceptable. The WUA members complained about delayed payments, and also requested the Department to increase the initial payment installments and decrease the last installment. They informed that collecting farmers‟ share was a very difficult task. They requested the Department to eliminate the farmers‟ share altogether. Trees need to be cut for water course improvement works. Compensatory tree plantation should be carried out. The Department officials informed the farmers about the forthcoming project involving laser land leveling, high efficiency irrigation techniques, and water course improvement. Water course # 37810-L, 27; The farmers reported increased availability of Gagra, District Multan WUA members and water and hence increase in the irrigated area other farmers; after the improvement of the water courses. Directorate General They expected the Department to provide Agriculture (WM) more assistance for further improvement in the officials; DO, water courses. DDO, AE, WMO, The community mobilization was found to be Supervisors, effective. The WUA documentation was Rodmen found to be acceptable. The WUA members complained about delayed payments, and also requested the Department to increase the initial payment installments and decrease the last installment. They informed that collecting farmers‟ share was a very difficult task. Trees need to be cut for water course improvement works. Compensatory tree plantation should be carried out. The community showed its willingness to undertake this compensatory plantation. The Department officials informed the farmers about the forthcoming project involving laser land leveling, high efficiency irrigation
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Location/Farmers Number and Type Key Issue Discussed of Participants techniques, and water course improvement. Government‟s Demonstration 6; Drip irrigation has resulted in decreased water Farm near Karor, District The farm‟s needs, as well as reduced pesticides, supervisors and weedicides and fertilizer usage. Layyah attendants; Directorate General Agriculture (WM) officials; DO, DDO, WMO. Farm of Ahmed Mujtaba and 10; The farmers reported reduced water others, Karor, District Layyah Farmers; consumption by 30%, increased yield, and Directorate General effective utilization of fertilizers by adopting Agriculture (WM) drip irrigation technique. officials; DO, DDO, WMO Farm of Asad Imran and 8; The farmers reported reduced water others, District Layyah Farmers; consumption, increased yield, reduced need of Directorate General fertilizers and pesticides by adopting drip Agriculture (WM) irrigation technique. officials; DO, DDO, WMO Farm of Bashir A. Khan, 7; The farmers reported reduced water District Bhakkar Farmers; consumption, increased yield, reduced need of Directorate General fertilizers and pesticides by adopting drip Agriculture (WM) irrigation technique. officials; DO, DDO, WMO Farm of Rana Munawar; 8; The farmers reported reduced water Chaubara, District Layyah Farmers; consumption, increased yield, reduced need of Directorate General fertilizers and pesticides by adopting sprinkler Agriculture (WM) irrigation technique. officials; DO, DDO, WMO Farm of Mohammad Husnain, 6; The farmers reported reduced water Chaubara District Layyah Farmers; consumption, increased yield, reduced need of Directorate General fertilizers and pesticides by adopting sprinkler Agriculture (WM) irrigation technique. officials; DO, DDO, WMO Farm of Sardar Nasir Abbas 7; The farmers reported reduced water Magsi, Chaubara, District Farmers; consumption, increased yield, reduced need of Directorate General fertilizers and pesticides by adopting drip Layyah Agriculture (WM) irrigation technique. officials; DO, DDO, WMO
Impact Assessment
Positive Impacts
312. The positive environmental and social impacts of the project include increased water conservation, enhanced social mobilization (i.e., establishment of WUAs) and employment opportunities for skilled
105 people. In addition, the project interventions such as high efficiency irrigation techniques will help discontinue usage of sewage water to irrigate crops particularly vegetables in the peri-urban areas – a practice that poses health risks to the population consuming these vegetables. Environmental Screening
313. The potentially negative impacts of the project interventions have been screened using the ADB‟s Rapid Environmental Assessment Checklist for the irrigation projects as given in Table 4 below. Table 4: Environmental Screening Screening Questions Yes No Remarks A. Project Siting Is the Project area adjacent to or within any of the following environmentally sensitive areas? Protected Area Unlikely - No subprojects to be located inside any protected area. Wetland Unlikely No subprojects to be located inside any protected wetland. Mangrove - ✔ No mangroves exist in the Province.
Estuarine ✔ No estuaries exist in the Project Area.
Buffer zone of protected area Unlikely - No subprojects to be located inside any protected area. Special area for protecting Unlikely - No subprojects to be located inside biodiversity any protected area. B. Potential Environmental Impacts Will the Project cause… loss of precious ecological values Unlikely - Most of the subprojects will be located (e.g. result of encroachment into in cultivation fields. Only some forests/swamplands or interventions could be located in historical/cultural buildings/areas, uncultivated areas. No subprojects disruption of hydrology of natural will be located at any protected waterways, regional flooding, and archeological, cultural, or religious drainage hazards)? sites. conflicts in water supply rights and Unlikely - The project interventions will not related social conflicts? change the existing water rights. Formulation of Water User Associations (WUAs) will address any possible conflicts. impediments to movements of people Unlikely - Most of the subprojects will be located and animals? in cultivation fields. The water course improvements include construction of culverts at appropriate locations. potential ecological problems due to Unlikely - The water course improvement works increased soil erosion and siltation, / possibly will decrease soil erosion. leading to decreased stream capacity? Appropriate mitigation measures have been included in project interventions. Insufficient drainage leading to Unlikely - The project interventions are unlikely salinity intrusion? to affect the drainage pattern. over pumping of groundwater, Unlikely - The project interventions will promote leading to salinization and ground judicious use and hence conservation subsidence? of irrigation water, thus reducing the
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Screening Questions Yes No Remarks need of ground water pumping. The water course lining may reduce groundwater recharge, but this lining will be minimized in the saline groundwater zone. impairment of downstream water Unlikely - The high efficiency irrigation schemes quality and therefore, impairment of / under the project will generally result downstream beneficial uses of water? possibly. in reduced and judicious use of chemical inputs. However, irrigation water conservation achieved with the help of project interventions may result in increased cropping intensity, and hence increased use of chemical inputs, which can potentially contaminate soil and water. Appropriate mitigation measures have been included in the project to address t dislocation or involuntary Unlikely - Most of the project interventions will resettlement of people? be located in cultivation fields. Only in rare cases, uncultivated land will be brought under cultivation. Appropriate control measures have been included to ensure that no resettlement of people takes place. disproportionate impacts on the poor, Unlikely - The project will generally benefit the women and children, Indigenous land owners and growers, however, Peoples or other vulnerable groups? these interventions are unlikely to negatively affect vulnerable groups such as poor, women and children. No indigenous people are known to exist in the Province. potential social conflicts arising from Unlikely - The project benefits are unlikely to land tenure and land use issues? change the existing land tenure or land use rights. Formulation of WUAs is likely to address any possible conflicts. soil erosion before compaction and Unlikely - Lining of water courses will generally lining of canals? / possibly reduce the soil erosion. Most of the interventions will be located in plain areas, thus minimizing the possibility of soil erosion. Appropriate mitigation measures have been included in the water course improvement and other components to control any soil erosion. noise from construction equipment? Unlikely - The noise during the project interventions will primarily be generated by tractors (laser land leveling), and small trucks (material hauling). These vehicles will essentially operate in cultivation fields, during the day time, where such machinery is routinely used. Hence
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Screening Questions Yes No Remarks the noise generation from the project intervention is unlikely to cause any significant impact. dust during construction? Possibly - Some minor dust emissions are likely to be caused by the construction activities, however these will take place within the cultivation fields where such dust emissions are quite routine. Water logging and soil salinization Unlikely - The project interventions aim to due to inadequate drainage and farm conserve irrigation water and management? discourage over-irrigation. Hence water logging and salinization are not likely to take place. Soil slinization cuased by high efficiency irrigation may be controlled by flood irrigating the field on occasional basis. leaching of soil nutrients and changes Unlikely - The project aims to conserve water in soil characteristics due to and discourage over-irrigation. Hence excessive application of irrigation leaching of soil nutrients and soil water? degradation are not likely to take place. reduction of downstream water Unlikely - The project interventions aim to supply during peak seasons? conserve irrigation water and discourage over-irrigation. Hence the project is unlikely to negatively affect other water users (other water users are likely to benefit from the project with increased water availability). soil pollution, polluted farm runoff Possibly - The high efficiency irrigation and groundwater, and public health techniques under the project need risks due to excessive application of smaller quantities of chemical inputs, fertilizers and pesticides? thus reducing the resultant soil and runoff contamination. However, the project interventions may also result in higher cropping intensity, thus requiring more chemicals inputs to be used, and hence greater risk of soil and run off contamination. Appropriate awareness raising and capacity building initiatives have been included in the project design to address these potential impacts. soil erosion (furrow, surface)? Unlikely - The project interventions (land leveling, high efficiency irrigation techniques, and water course improvement) will reduce and forestall soil erosion, usually associated with over-irrigation. scouring of canals? Unlikely - The water course improvement component will in fact arrest any previous scouring.
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Screening Questions Yes No Remarks clogging of canals by sediments? Unlikely - The water course improvement component will arrest sedimentation in the water courses. clogging of canals by weeds? Unlikely - The water course improvement component will in fact arrest any clogging of the water courses. seawater intrusion into downstream - ✔ No sea front exists in the Province. freshwater systems? introduction of increase in incidence Unlikely - The project interventions aim to of waterborne or water related to conserve water and discourage over- diseases? possibly irrigation. Therefore these interventions are likely to decrease waterborne or water-related diseases. The capacity building component of the project will address this aspect as well. dangers to a safe and healthy working Unlikely - The physical hazards associated with environment due to physical, to the project are same as the other chemical and biological hazards possibly cultivation activities. The biological during project construction and and chemical hazards are associated operation? with the injudicious and unsafe use/handling of chemical inputs. The project interventions are likely to reduce the need of these inputs. The capacity building component of the project will nonetheless address these aspects. large population influx during project Unlikely - The individual subprojects are quite construction and operation that small and localized, with no causes increased burden on social possibility or need of any population infrastructure and services (such as influx during construction or water supply and sanitation systems)? operation. social conflicts if workers from other Unlikely - The individual subprojects are quite regions or countries are hired? small and localized, with little possibility or need of workers from other regions. The contractors will be selected by WUAs. risks to community health and safety Unlikely The risk to community‟s health and due to the transport, storage, and use to safety is associated with the handling and/or disposal of materials such as possibly of chemical inputs (pesticides and explosives, fuel and other chemicals fertilizers) mentioned earlier as well. during construction and operation? The capacity building component of the project will address these aspects. community safety risks due to both Unlikely - The project interventions do not accidental and natural hazards, include any structures (such as dams especially where the structural and dikes) which could pose hazard to elements or components of the the local community through accidents project (e.g., irrigation dams) are or natural disasters. accessible to members of the affected community or where their failure could result in injury to the community throughout project construction, operation and decommissioning?
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Environmental and Social Management Plan
ESMP Objectives
The ESMP aims to provide the implementation mechanism for the mitigation and control measures for the potential impacts of the project on environment and people discussed in Section 7. The specific objectives of the ESMP include the following: To provide a mechanism to implement the mitigation and control measures identified during the present ESA. To propose institutional arrangements to implement the above-mentioned mitigation and control measures To define environmental monitoring requirements to ensure effective implementation of the mitigation and control measures. To identify capacity building needs with respect to the environmental and social aspects of the project. To specify the documentation requirements with respect to the ESMP implementation.
Institutional Setup and Responsibilities
314. DGAWM will be overall responsible for environmental and social performance of the project in accordance with the national and WB requirements. 315. The DGAWM will designate an appropriate officer of the Directorate General to be the Environmental and Social Coordinator (ESC) for the proposed project at the provincial level. The ESC will ensure the effective implementation of ESMP throughout the project implementation. S/he will also maintain liaison and coordination with the WMOs at the district level, who will be designated as the district environmental and social coordinators (DESCs) in their respective districts. The DESCs will in turn supervise and coordinate with the WUAs and farmers for the actual implementation of the environmental and social guidelines (discussed in the next section) and other ESMP requirements during the project implementation. Environmental and Social Guidelines
316. Four sets of guidelines have been prepared, one each for the four types of interventions included in the proposed project. These guidelines, presented in Tables 5 to 8, have essentially been prepared on the basis of the mitigation measures discussed. These guidelines will be made part of the agreements to be signed for each scheme under the proposed project. Environmental and Social Monitoring
317. The monitoring will be carried out at three tiers. At the first tier, the WUA/farmers will fill simple checklists prepared on the basis of the environmental and social guidelines. At the second tier, the DESCs (WMOs) will carry out monitoring during their routine visits to the field, with the help of visual observations, review of the checklists filled by WUAs/farmers, and discussions with them. At the third tier, the ESC and/or the Supervision Consultants (where engaged) will provide top supervision of the monitoring carried out by the WUAs/farmers and DESCs, with the help of spot checks during their field visits. 318. Third Party Monitoring. In addition to the monitoring described above, the Department will also engage an appropriate firm/consultant to carry out the third party monitoring (or third party validation –
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TPV) on an annual basis. The objective of this monitoring would be to review the entire ESMP implementation process and its effectiveness, to identify any environmental and/or social issues caused by the project that may exist on ground, and to frame recommendations to improve ESMP and its various components. Environmental and Social Trainings and Awareness Raising
319. The objectives of the environmental and social trainings include providing basic knowledge and information on the key environmental and social issues associated with the proposed interventions to the key project personnel including the ESC and DESCs. The awareness raising initiatives on the other hand are essentially meant for the WUA members and farmers participating in the schemes under the proposed project. The training plan is presented in Table 9. The ESC will be responsible for the implementation of this plan. Documentation and Reporting
320. Complete documentation will be maintained for the entire ESMP implementation process, and the ESC will be overall responsible for this. The documentation will include the following:
environmental and social checklists filled by the WUAs/farmers, environmental and social checklists filled by DESCs, visit reports with photographs prepared by the Supervision Consultants and ESC, annual third party monitoring reports, training reports to be prepared by ESC with the help of DESCs, district quarterly reports on ESMP implementation activities prepared by each DESC in his/her respective district, quarterly reports on overall ESMP implementation of the project, to be prepared by the ESC on the basis of the district quarterly reports described above, and
project completion report on overall ESMP implementation during the entire duration of the project – to be prepared by ESC.
ESMP Implementation Budget
321. The cost of ESMP implementation over the project duration of six years has been estimated to be Rs. 19.2 million. This cost has been included in the overall project cost. The breakdown of this estimate is provided below. ESMP Implementation Budget
Description Cost (Pak Rs.) Notes/basis Personnel cost ESC, DESCs) - No additional manpower is needed. Third party monitoring 9.0 million 1.5 m per year Trainings 7.2 million 300,000 per training; 24 trainings Miscellaneous expenses 3.0 million 0.5 m per year Total (for 6 years) 19.2 million
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Table 5: Environmental and Social Guidelines – Drip Irrigation Environmental and Social Mitigation Measures Notes Aspect Land use, land form, and/or land The vacant area where orchard/cultivation farm is to take (particularly when the be established under the scheme should be owned schemes are to be implemented by the beneficiary. in previously vacant areas) No involuntary resettlement will be allowed during the project. It should be ensured that the local routes are not blocked by such schemes. Downstream water availability The project schemes particularly those involving expansion of cultivation area will be established ensuring no negative impacts on downstream water users. Soil erosion and topography The water ponds under the schemes will be appropriately located and designed, addressing all aspects including soil erosion, soil subsidence, and seepage. The scheme design involving excavation of water pond should include proper disposal of the surplus soil (eg, for the embankment for the water pond itself). Soil and water contamination Judicious use of the chemical inputs and use of alternate techniques (such as integrated pest management, using disease-resistant seeds, and mulching) will be promoted through awareness raising and capacity building initiatives. Waste disposal guidelines will be included in the design of the schemes. It will be ensured that no waste or left over construction material is left behind in the cultivation fields. Salt built up in soil Soil testing will be carried out particularly in areas where groundwater is used for irrigation. Occasional flood irrigation should be considered if salt built up is identified. Impacts on natural flora and If any trees are to be cut for scheme in a previously fauna vacant area, the farmer/scheme beneficiary will carry out compensatory plantation of appropriate indigenous tree species. Trees thus planted will be at least three times the number of trees cut for establishing the scheme. No schemes will be located inside any wildlife protected areas (see Table 1) for the list of such areas) Safety hazards/public health The awareness raising and capacity building initiatives will also address the safe practices to transport, store, handle, and apply the pesticides, herbicides, and fertilizers. The farm owners will provide necessary protective
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Environmental and Social Mitigation Measures Notes Aspect gear to the workers handling and applying pesticides and herbicides in the field. The capacity building component will address avoidance and cure of water borne and water related diseases. Damage to cultural heritage It should be ensured that no schemes are approved (particularly when the schemes inside or in the immediate vicinity of any cultural are to be implemented in heritage sites listed in Table 2. previously vacant areas) The schemes should not be located in graveyards or shrine. The „chance find‟22 procures will be included in the scheme agreements. Employment/contracting Local labor and local contractors will be preferred opportunities to carry out the construction and operation activities. Sustainability of schemes After-sales service will be ensured through contractual clauses.
Table 6: Environmental and Social Guidelines – Sprinkler Irrigation Environmental and Social Mitigation Measures Notes Aspect Land use, land form, and/or land The vacant area where orchard/cultivation farm is to take (particularly when the be established under the scheme should be owned schemes are to be implemented by the beneficiary. in previously vacant areas) No involuntary resettlement will be allowed during the project. It should be ensured that the local routes are not blocked by such schemes. Downstream water availability The project schemes particularly those involving expansion of cultivation area will be established ensuring no negative impacts on downstream water users. Soil erosion and topography The water ponds under the schemes will be appropriately located and designed, addressing all aspects including soil erosion, soil subsidence, and seepage. The scheme design involving excavation of water pond should include proper disposal of the surplus soil (eg, for the embankment for the water pond itself). Soil and water contamination Judicious use of the chemical inputs and use of alternate techniques (such as integrated pest management, using disease-resistant seeds, and
22 „Chance find‟ procedure: In case any artifact or site of archeological, cultural, historical, or religious significance are discovered during activities such as excavation of water ponds, the works will be stopped, and the Archeological Department will be informed.
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Environmental and Social Mitigation Measures Notes Aspect mulching) will be promoted through awareness raising and capacity building initiatives. Waste disposal guidelines will be included in the design of the schemes. It will be ensured that no waste or left over construction material is left behind in the cultivation fields. Salt built up in soil Soil testing will be carried out particularly in areas where groundwater is used for irrigation. Occasional flood irrigation should be considered if salt built up is identified. Impacts on natural flora and If any trees are to be cut for scheme in a previously fauna vacant area, the farmer/scheme beneficiary will carry out compensatory plantation of appropriate indigenous tree species. Trees thus planted will be at least three times the number of trees cut for establishing the scheme. No schemes will be located inside any wildlife protected areas (see Table 1) for the list of such areas) Safety hazards/public health The awareness raising and capacity building initiatives will also address the safe practices to transport, store, handle, and apply the pesticides, herbicides, and fertilizers. The farm owners will provide necessary protective gear to the workers handling and applying pesticides and herbicides in the field. The capacity building component will address avoidance and cure of water borne and water related diseases. Damage to cultural heritage It should be ensured that no schemes are approved (particularly when the schemes inside or in the immediate vicinity of any cultural are to be implemented in heritage sites listed in Table 2. previously vacant areas) The schemes should not be located in graveyards or shrine. The „chance find‟ procures will be included in the scheme agreements. Employment/contracting Local labor and local contractors will be preferred opportunities to carry out the construction and operation activities. Sustainability of schemes After-sales service will be ensured through contractual clauses.
Table 7: Environmental and Social Guidelines – Laser Land Leveling Environmental and Social Mitigation Measures Notes Aspect Soil and water contamination Judicious use of the chemical inputs and use of alternate techniques (such as integrated pest
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Environmental and Social Mitigation Measures Notes Aspect management, using disease-resistant seeds, and mulching) will be promoted through awareness raising and capacity building initiatives. Air quality deterioration Tractors will be properly maintained and tuned to minimize exhaust emissions, and proper fuel will be used. Impacts on natural flora and No schemes will be located inside any wildlife fauna protected areas (see Table 1) for the list of such areas) Damage to cultural heritage It should be ensured that no schemes are approved (particularly when the schemes inside or in the immediate vicinity of any cultural are to be implemented in heritage sites listed in Table 2. The schemes should not be located in graveyards previously vacant areas) or shrine. The „chance find‟ procures will be included in the scheme agreements. Safety hazards/public health The awareness raising and capacity building initiatives will also address the safe practices to transport, store, handle, and apply the pesticides, herbicides, and fertilizers. The farm owners will provide necessary protective gear to the workers handling and applying pesticides and herbicides in the field. The capacity building component will address avoidance and cure of water borne and water related diseases. Employment/contracting Local labor and local contractors will be preferred opportunities to carry out the leveling activities. Sustainability of schemes After-sales service will be ensured through contractual clauses.
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Table 8: Environmental and Social Guidelines – Watercourse Improvement Environmental and Social Mitigation Measures Notes Aspect Land use, land form, and/or land Land for the realigned water course should be take voluntarily donated by its owner, and proper documentation should be completed for this donation. The donation should be appropriately recorded in the WUA register. No involuntary resettlement will be allowed during the project. It should be ensured that the local routes are not blocked by such schemes. Soil and water contamination Waste disposal guidelines will be included in the design of the schemes. It will be ensured that no waste or left over construction material is left behind in the cultivation fields. Judicious use of the chemical inputs and use of alternate techniques (such as integrated pest management, using disease-resistant seeds, and mulching) will be promoted through awareness raising and capacity building initiatives. Soil erosion Earthen portion of the water course will not be left un-compacted for long durations. Surplus soil and silt will be disposed appropriately, without having any impacts on water courses, local routes, cultivation fields, or drains. Conflicts Social mobilization and capacity building will address formulation and sustainability of WUAs. The capacity building will address conflict avoidance and resolution. Impacts on natural flora and Cutting of trees would be restricted to only those fauna trees which cause restriction/hindrance in water flow or civil works. If any trees are to be cut, the WUA will carry out compensatory plantation of appropriate indigenous tree species. Trees thus planted should be at least three times the number of trees cut for establishing the scheme. No schemes will be located inside any wildlife protected areas (see Table 1) for the list of such areas) Damage to cultural heritage It should be ensured that no schemes are approved inside or in the immediate vicinity of any cultural heritage sites listed in Table 2. The schemes should not be located in graveyards or shrine. The „chance find‟ procures will be included in the scheme agreements. Safety hazards/public health The awareness raising and capacity building
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Environmental and Social Mitigation Measures Notes Aspect initiatives will also address the safe practices to transport, store, handle, and apply the pesticides, herbicides, and fertilizers. The farm owners will provide necessary protective gear to the workers handling and applying pesticides and herbicides in the field. The capacity building component will address avoidance and cure of water borne and water related diseases. Employment/contracting Local labor and local contractors will be preferred to opportunities carry out the construction and operation activities. Clogging of water courses Social mobilization and capacity building will address formulation and sustainability of WUAs. The capacity building will address proper maintenance and care of water courses. Sustainability of scheme Social mobilization will address the sustainability of WUAs, which in turn will ensure proper operation and maintenance of water courses.
Table 9: Environmental and Social Training Plan
Description Aspects to be Covered Participants Frequency Environmental and social Environmental and social ESC, DESCs, At the start of the project; trainings awareness; Supervision Afterwards as required Key environmental and Consultants; others social issues associated with project ESA findings; ESMP and its components; ESMP implementation. Awareness raising Judicious use of fertilizers, WUA members, On-going pesticides and herbicides; farmers Use of alternate techniques (such as IPM, using better seeds) to reduce the application of chemical inputs; Safe handling and application of pesticides and herbicides and use of protective gear; Waste disposal; Community mobilization (for WUA members)
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IBRD 38945 PAKISTAN PUNJAB IRRIGATED AGRICULTURE PRODUCTIVITY IMPROVEMENT PROGRAM PROJECT MAIN CITIES AND TOWNS MAIN ROADS PROVINCE CAPITALS RAILROADS NATIONAL CAPITAL PROVINCE BOUNDARIES INTERNATIONAL BOUNDARIES
65E 70ETAJIKISTANTAJIKISTAN 75E CHINACHINA
NORTHERNNORTHERN AREASAREAS PAKISTAN In ChitralChitral d us
Approximate 35N KHYBERKHYBER Line of Control PAKHTUNKHWAPAKHTUNKHWA SaiduSaidu KargilKargil To MuzaffarabadMuzaffarabad Kabul SrinagarSrinagar PeshawarPeshawar JammuJammu ISLAMABADISLAMABAD RawalpindiRawalpindi andand KashmirKashmir KahatKahat
AFGHANISTANA F G H A N I S T A N BannuBannu
m elu Jh GujratGujrat GujranwalaGujranwala To
b Mandi D.I.D.I. KKhanhan na To Che Kandahar LahoreLahore ZhobZhob FaisalabadFaisalabad
i av R ChamanChaman To Zhob PUNJABP U N J A B To Bhatinda Ludhiana SahlwalSahlwal
30N QuettaQuetta MultanMultan j 30N D.G.D.G. KhanKhan tle Su
s u d n I To Kerman BahawalpurBahawalpur NokNok KundiKundi BALOCHISTANB A L O C H I S T A N SurabSurab ISLAMICISLAMIC REPUBLICREPUBLIC OFOF RanipurRanipur To i PanjgurPanjgur a INDIAI N D I A Khash k IRANIRAN h s a
M MoroMoro
To TurbatTurbat BelaBela SINDHS I N D H Kerman To Jodhpur
GwadarGwadar PasniPasni HyderabadHyderabad 25N 25N
KarachiKarachi ThattaThatta BadinBadin
s u d n I Rann of Kutch This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, 0 50 100 150 200 Kilometers denominations and any other Arabian Sea information shown on this map do not imply, on the part of The 0 50 100 150 Miles World Bank Group, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries. 65E 70E 75E
NOVEMBER 2011 IBRD 37352
PAKISTAN SCHEMATIC DIAGRAM OF PAKISTAN INDUS BASIN WATER SYSTEM
This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries.
NOVEMBER 2009