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ASIAN DEVELOPMENT BANK PCR: PAK 20021 PROJECT COMPLETION REPORT ON THE KHUSHAB SALINITY CONTROL AND RECLAMATION PROJECT (Loan 901-PAK[SF]) IN PAKISTAN July 2000 CURRENCY EQUIVALENTS Currency Unit – Pakistan Rupee/s (PRe/PRs) At Appraisal At Project Completion (July 1988) (April 1998) PRe1.00 = $0.055 $0.018 $1.00 = PRs18.20 PRs54.5 ABBREVIATIONS ADB – Asian Development Bank EA – executing agency EIRR – economic internal rate of return DAE – Directorate of Agricultural Extension DOA – Department of Agriculture, Punjab DOWM – Directorate of On-Farm Water Management FO – farmers’ organization IPD – Irrigation and Power Department, Punjab NDP – National Drainage Program O&M – operation and maintenance PCR – project completion report PVC – polyvinyl chloride SCARP – Salinity Control and Reclamation Project TA – technical assistance WAPDA – Water and Power Development Authority WUA – water users’ association NOTES (i) The fiscal year of the Government ends on 30 June. (ii) In this report, “$” refers to US dollars. CONTENTS Page BASIC DATA ii MAPS viii I. PROJECT DESCRIPTION 1 II. EVALUATION OF IMPLEMENTATION 2 A. Project Components 2 B. Implementation Arrangements 3 C. Project Costs and Financing 3 D. Project Schedule 4 E. Engagement of Consultants, and Procurement of Goods 4 and Services F. Performance of Consultants, Contractors, and Suppliers 5 G. Conditions and Covenants 5 H. Disbursements 6 I. Environmental and Social Impacts 6 J. Performance of the Borrower and the Executing Agencies 7 K. ADB’s Performance 8 III. EVALUATION OF INITIAL PERFORMANCE AND BENEFITS 8 A. Initial Performance 8 B. Financial Performance 8 C. Economic Performance 9 D. Attainment of benefits 9 IV. CONCLUSIONS, LESSONS LEARNED, AND RECOMMENDATIONS 9 A. Conclusions 9 B. Lessons Learned 10 C. Recommendations 10 APPENDIXES ii BASIC DATA A. Loan Identification 1. Country Pakistan 2. Loan Number 901-PAK(SF) 3. Project Title Khushab Salinity Control and Reclamation Project 4. Borrower The Islamic Republic of Pakistan 5. Executing Agency Water and Power Development Authority Irrigation and Power Department, Punjab Directorate of On-Farm Water Management, Department of Agriculture, Punjab 6. Amount of Loan SDR40.915 million ($53.0 million) 7. PCR Number PAK 583 B. Loan Data 1. Fact-Finding – Date Started 5 February 1988 – Date Completed 18 February 1988 2. Appraisal – Date Started 10 March 1988 – Date Completed 23 March 1988 3. Loan Negotiations – Date Started 15 August 1988 – Date Completed 18 August 1988 4. Date of Board Approval 22 September 1988 5. Date of Loan Agreement 5 October 1988 6. Date of Loan Effectiveness – In Loan Agreement 3 January 1989 – Actual 7 February 1989 – Number of Extension 1 7. Closing Date – In Loan Agreement 31 December 1994 – Actual 5 March 1999 – Number of Extensions 2 8. Terms of Loan – Service Charge 1 percent per annum – Maturity 35 years – Grace Period 10 years iii 9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 1 December 1989 2 December 1998 9 years Effective Date Original Closing Date Time Interval 7 February 1989 31 December 1994 5 years 11 months Revised Closing Date Time Interval 30 April 1998 9 years 3 months Actual Closing Date Time Interval 5 March 1999 10 years 1 month b. Amount (SDR) Original Revised Disbursed No. Category Allocation Allocation Amount 1A Civil Works – Part A 25,125,000 28,232,000 23,397,143 1B Civil Works – Part B 2,573,000 3,456,000 3,127,379 2A Equipment, Vehicles, & 574,000 497,000 561,693 Materials – Parts A & B (excluding electrification) 2B Equipment, Vehicles, & 902,000 521,000 562,331 Materials – Parts A & B (electrification only) 2C Equipment, Vehicles, 2,342,000 913,000 911,990 & Materials – Part C 3 Consulting Services & 1,536,000 1,752,000 1,307,579 Training for Part A 4F Local Expend.- Consulting 401,000 422,000 402,404 Services & Training Part B 4G Local Expend.- Project 2,760,000 3,278,000 5,039,154 Implementation (Parts A & B) 4H Local Expend. – Project 443,000 220,000 219,622 Implementation (Part C) 5 Service Charge 987,000 1,010,000 919,349 6 Prior Technical Assistance 50,000 50,000 0 7 Unallocated 3,222,000 564,000 0 Total 40,915,000 40,915,000a 36,443,644 aAn unutilized amount of SDR4,471,356 was canceled on 5 March 1999. iv c. Amount ($) Original Revised Disbursed No. Category Allocation Allocation Amount 1A Civil Works – Part A 32,546,137 40,152,284 33,547,628 1B Civil Works – Part B 3,332,983 5,028,978 4,573,234 2A Equipment, Vehicles, & 743,541 677,467 765,840 Materials – Parts A & B (excluding electrification) 2B Equipment, Vehicles, & 1,168,421 740,670 797,130 Materials – Parts A & B (electrification only) 2C Equipment, Vehicles, 3,033,752 1,246,356 1,244,976 & Materials – Part C 3 Consulting Services & 1,989,685 2,465,240 1,858,138 Training for Part A 4F Local Expend.- Consulting 519,442 602,486 575,718 Services & Training Part B 4G Local Expend.- Project 3,575,217 4,752,170 7,157,995 Implementation (Parts A & B) 4H Local Expend. – Project 573,847 296,614 296,098 Implementation (Part C) 5 Service Charge 1,278,529 1,425,685 1,301,851 6 Prior Technical Assistance 64,768 68,303 0 7 Unallocated 4,173,678 770,452 0 Total 53,000,000 58,226,705a 52,118,608 aAn unutilized amount of $6,108,097 was canceled on 5 March 1999. 10. Local Costs (ADB Financed) Cost Appraisal Actual Estimate Amount ($ million) 25.6 26.5 Percentage of Local Cost 66% 62% Percentage of Total Cost 39% 39% v C. Project Data 1. Project Cost ($ million) Cost Appraisal Actual Estimate Foreign Exchange Cost 27.400 25.655 Local Currency Cost 38.500 42.895 Total Cost 65.900 68.550 2. Financing Plan ($ million) Item Appraisal Estimate Actual Foreign Local Total Foreign Local Total Exchange Currency Cost Exchange Currency Cost Implementation Costs ADB 26.056 25.600 51.656 24.353 26.463 50.816 Borrower 0.000 12.900 12.900 0.000 16.432 16.432 TA Recovery 0.065 0.000 0.065 0.000 0.000 0.000a IDC Cost (ADB) 1.279 0.000 1.279 1.302 0.000 1.302 Total 27.400 38.500 65.900 25.655 42.895 68.550 ADB = Asian Development Bank, IDC = interest during construction, TA = technical assistance a There was no amount charged against the loan for the TA recovery since the amount utilized was only $123,000 of the approved TA amount of $215,000. The loan agreement indicated that only the amount that exceeds the equivalent of $150,000 should be charged against the loan. vi 3. Cost Breakdown by Project Components ($’000) Component Appraisal Estimate Actual Foreign Local Total Foreign Local Total Exchange Currency Cost Exchange Currency Cost A. Civil Worksa 1. Part A. Drainage 17,224 18,852 36,076 17,326 26,832 44,158 2. Part B. Irrigation 1,169 2,373 3,542 2,362 2,644 5,006 B. Vehicles & Equipment 1. Parts A & B 635 337 972 765 583 1,348 2. Part C 87 2,318 2,405 1,245 105 1,350 3. Electrification 1,168 0 1,168 797 0 797 C. Consulting Services 1. Part A. Drainage 1,590 295 1,885 1,858 94 1,952 2. Part B. Irrigation 10 405 415 0 581 581 D. Administration 1. Parts A & B 0 3,404 3,404 0 9,909 9,909 2. Part C 0 606 606 0 1,244 1,244 E. Land Acquisition 0 1,000 1,000 0 903 903 F. Recovery of TA Cost 65 0 65 0 0 0 G. Service Charge 1,279 0 1,279 1,302 0 1,302 H. Unallocated 4,173 8,910 13,083 0 0 0 Total 27,400 38,500 65,900 25,655 42,895 68,550 a Beneficiary contribution was not reflected in the appraisal cost estimate. The Project Completion Review Mission estimates that the total contribution is equivalent to about $1.0 million. 4. Project Schedule Date Appraisal Estimate Actual a. Date of Contract with Consultants Drainage 2 Jun 1990 Irrigation 11 Jun 1990 b. Completion of Engineering Design Jul 1990 c. Civil Works Contract Date of Award Mar 1990 Jul 1993 Completion of Work Dec 1993 18 Nov 1997 d. Equipment and Supplies First Procurement Oct 1989 Last Procurement Apr 1998 e. Start of Operations of sumps Beginning of Start-Up 23 Feb 1997 Completion of Tests and Commissioning 4 Apr 1998 vii Date Appraisal Estimate Actual f. Other Milestones First Extension of Loan Effectiveness 3 Feb 1989 First Extension of Loan Closing Date 30 Apr 1997 Second Extension of Loan Closing Date 30 Apr 1998 Reallocation of Loan Proceeds 10 Jan 1996 Change in Project Scope 10 Jan 1996 Cancellation of Loan Proceeds First 26 Oct 1998 Second 5 Mar 1999 5. Benchmark Survey Dec 1988 Impact Evaluation Jul 1996/Mar 1997 D. Data on ADB Missions Date No. of Person Specialization No. Name of Mission From To Persons -days of Members 1 Fact-Finding 5 Feb 88 18 Feb 88 3 42 Project Engineer Agronomist Project Economist 2 Appraisal 10 Mar 88 23 Mar 88 4 56 Project Engineer Agronomist, Counsel Project Economist 3 Special Review 27 Jun 89 4 Jul 89 1 8 Project Engineer 4 Inception 05 Mar 90 12 Mar 90 1 8 Project Engineer 5 Review 28 Apr 91 4 May 91 1 7 Project Engineer 6 Review 1 May 92 10 May 92 1 10 Project Engineer 7 Special Review 24 May 94 29 May 94 1 5 Rural Dev.
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