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37231-013: Punjab Irrigated Agriculture Investment Program

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37231-013: Punjab Irrigated Agriculture Investment Program Completion Report Project Number: 37231-013 MFF Number: 0009 Loan Numbers: 2299, 2300, 2841, 2971, and 3351 September 2018 Pakistan: Punjab Irrigated Agriculture Investment Program This document is being disclosed to the public in accordance with ADB’s Public Communications Policy 2011. CURRENCY EQUIVALENTS Currency unit – Pakistan rupee/s (PRe/PRs) At Appraisal At Project Completion 15 November 2006 30 September 2017 PRe1.00 = $0.0164 $0.0095 $1.00 = PRs60.8 PRs105.4 ABBREVIATIONS ADB – Asian Development Bank EAF – environmental assessment framework EIA – environmental impact assessment EMP – environmental management plan FFA – framework financing agreement GDP – gross domestic product GIS – geographic information system IEE – initial environmental examination IMU – irrigation management unit LAR – land acquisition and resettlement LBDC – Lower Bari Doab Canal MIS – management information system MFF multitranche financing facility O&M – operation and maintenance PFR – periodic financing request PID – Punjab Irrigation Department PIDA – Punjab Irrigation and Drainage Authority PIU – project implementation unit PMO – project management office WEIGHTS AND MEASURES m3/s – cubic meters per second km – kilometer ha – hectare mm – millimeter GLOSSARY abiana – irrigation service fee barrage – gated hydraulic structure built across a river or other watercourse to control, regulate, and divert flows to canals or to facilitate navigation biraderi – clan conjunctive use – use of surface water and groundwater to meet water needs in the same geographic area rabi – crop growing season from about October to March khal panchayat – water user association based on a common irrigation field outlet from the canal kharif – crop growing season from about April to September NOTES (i) The fiscal year (FY) of the Government of Pakistan ends on 30 June. “FY” before a calendar year denotes the year in which the fiscal year ends, e.g., FY2018 ends on 30 June 2018. (ii) In this report, “$” refers to United States dollars Vice-President Wencai Zhang, Operations 1 Director General Werner Liepach, Central and West Asia Department (CWRD) Director Xiaohong Yang, Pakistan Resident Mission, CWRD Team leader Asad Zafar, Senior Project Officer (Water Resources), CWRD Team members Muzaffar Bukhari, Project Analyst, CWRD Noriko Sato, Natural Resources Specialist, CWRD In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. CONTENTS Page BASIC DATA i MAP xiii I. PROGRAM DESCRIPTION 1 II. DESIGN AND IMPLEMENTATION 2 A. Program Design and Formulation 2 B. Program Outputs 3 C. Program Costs and Financing 6 D. Disbursements 8 E. Programe Schedule 8 F. Implementation Arrangements 8 G. Technical Assistance 9 H. Consultant Recruitment and Procurement 9 I. Safeguards 10 K. Monitoring and Reporting 11 III. EVALUATION OF PERFORMANCE 11 A. Relevance 11 B. Effectiveness 12 C. Efficiency 13 D. Sustainability 14 E. Development Impact 15 F. Performance of the Borrower and the Executing Agency 15 G. Performance of the Asian Development Bank 16 H. Overall Assessment 16 IV. ISSUES, LESSONS, AND RECOMMENDATIONS 17 A. Issues and Lessons 17 B. Recommendations 17 APPENDIXES 1. Design and Monitoring Framework 19 2. Program Cost at Appraisal and Actual 23 3. Program Cost by Financier 28 4. Disbursement of ADB Loan Proceeds 39 5. Implementation Schedule 41 6. Consultant Recruitment and Procurement 45 7. Contract Awards of ADB Loan Proceeds 48 8. Status of Compliance with Loan Covenants 49 9. Economic Reevaluation 61 BASIC DATA A. Loan Identification 1. Country Islamic Republic of Pakistan 2. MFF number and financing sources M0009 (Loan 2299, 2300, 2841, 2971 and 3351)1 3. Project title Punjab Irrigated Agriculture Investment Program 4. Borrower Government of Pakistan 5. Executing agency Punjab Irrigation and Power Department2 6. Amount of loan $900 million 7. Project completion report number PAK 1717 8. Financing modality Multitranche financing facility B. Loan Data 1. Appraisal – Date started 10 July 2006 – Date completed 04 August 2006 2. Loan negotiations Loan 2299–2300 – PFR1 – Date started 10 November 2006 – Date completed 11 November 2006 Loan 2841 – PFR 2 – Date started 18 November 2011 – Date completed 09 December 2011 Loan 2971– PFR 3 – Date started 26 November 2012 – Date completed 27 November 2012 Loan 3351– PFR 4 – Date started 12 November 2015 – Date completed 12 November 2015 3. Date of Board approval 13 December 2006 4. Date of loan agreement – Loan 2299–2300 – PFR 1 22 June 2007 – Loan 2841– PFR 2 18 January 2012 – Loan 2971– PFR 3 30 April 2013 – Loan 3351– PFR4 14 December 2015 5. Date of loan effectiveness Loan 2299–2300 – PFR 1 – In loan agreement 20 September 2007 – Actual 24 August 2007 – Number of extensions None 1 Loans 2300 and 2841 are financed from ADB’s Special Fund resources, while all other loans are financed through ADB’s Ordinary Capital Resources. 2 Renamed the Punjab Irrigation Department in July 2011 ii Loan 2841– PFR 2 – In loan agreement 17 February 2012 – Actual 17-February 2012 – Number of extensions None Loan 2971 – PFR 3 – In loan agreement 29 July 2013 – Actual 06 June 2013 – Number of extensions None Loan 3351 – PFR 4 – In loan agreement 13 March 2016 – Actual 11 January 2016 – Number of extensions None 6. Project completion date Loan 2299 – PFR 1 – Appraisal 31 December 2016 – Actual 30 September 2017 Loan 2300 – PFR 1 – Appraisal 31 December 2016 – Actual 30 June 2017 Loan 2841 – PFR 2 – Appraisal 30 June 2016 – Actual 30 September 2017 Loan 2971 – PFR 3 – Appraisal 30 September 2016 – Actual 30 September 2017 Loan 3351 – PFR 4 – Appraisal 31 December 2016 – Actual 30 September 2017 7. Loan closing date Loan 2299 – PFR 1 – In loan agreement 30 September 2007 – Actual 30 September 2017 – Number of extensions 4 Loan 2300 – PFR 1 – In loan agreement 30 September 2013 – Actual 30 June 2017 – Number of extensions 3 Loan 2841– PFR 2 – In loan agreement 31 December 2016 – Actual 30 September 2017 – Number of extensions 2 iii Loan 2971 – PFR 3 – In loan agreement 31 March 2017 – Actual 30 September 2017 – Number of extensions 1 Loan 3351 – PFR 4 – In loan agreement 30 June 2017 – Actual 30 September 2017 – Number of extensions 1 8. Financial closing date – Actual Loan 2299 – PFR 1 05 January 2018 Loan 2300 – PFR 1 21 September 2017 Loan 2841 – PFR 2 8 May 2018 Loan 2971 – PFR 3 26 December 2017 Loan 3351 – PFR 4 28 December 2017 9. Terms of loan Loan 2299 – PFR 1 – Interest rate LIBOR plus 0.60% per annum. – Commitment Charges 0.75% per annum – Maturity (number of years) 25 years – Grace period (number of years) 5 years Loan 2300 – PFR 1 – Interest rate 1% per annum during the grace period and 1.5% per annum thereafter – Maturity (number of years) 32 years – Grace period (number of years) 8 years Loan 2841 – PFR 2 – Interest rate 1% per annum during the grace period, and 1.5% per annum thereafter – Maturity (number of years) 32 years – Grace period (number of years) 8 years Loan 2971 – PFR 3 – Interest rate LIBOR plus 0.60% per annum less a credit of 0.20% – Commitment Charges 0.15% per annum – Maturity premium 0.20% – Maturity (number of years) 20 years – Grace period (number of years) 5 years Loan 3351 – PFR 4 – Interest rate LIBOR plus 0.60% less a credit of 0.10% – Commitment Charges 0.15% per annum – Maturity (number of years) 15 years – Grace period (number of years) 5 years iv 10. Terms of relending (if any) Not applicable 11. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval PFR 1 (L2299) 01 December 2007 5 January 2018 121 months, 7 days PFR 1 (L2300) 19 May 2009 21 September 2017 62 months, 2 days PFR 2 (L2841) 3 May 2013 8 May 2018 60 months PFR 3 (L2971) 01 December 2013 26 December 2017 26 months, 26 days PFR 4 (L3351) 24 March 2016 28 December 2017 21 months, 20 days Effective Date Actual Closing Date Time Interval PFR 1 (L2299) 24 August 2007 5 January 2018 124 months, 15 days PFR 1 (L2300) 24 August 2007 21 September 2017 119 months, 26 days PFR 2 (L2841) 17 February 2012 8 May 2018 76 months PFR 3 (L2971) 06 June 2013 26 December 2017 53 months, 20 days PFR 4 (L3351) 11 January 2015 28 December 2017 21 Months, 17 days b. Amount (i) L2299-PAK – PFR 1 (¥ million) Increased during Last Undis- Original Imple- Canceled Revised Amount bursed Allocation mentation during Imple- Allocation Disbursed Balance Category (1) (2) mentation (3) a (4=1+2–3) (5) (6 = 4–5) Works 20,724.5 (8,788.3) 11,964.7 11,964.7 0 Equipment 194.0 (177.7) 6.3 16.3 0 Resettlement, 3.3 3.3 0 environmental mitigation 75.5 (72.2) Consulting services 2,203.1 (868.6) 1,371.8 1,371.8 0 Project management 3.0 (3.0) 0 Capacity development 583.5 (555.5) 28.1 28.1 0 Financing charges 1,460.2 (493.2) 967.0 967.0 0 Recurrent cost 327.7 (327.7) 0 Unallocated 66.3 (0.5) 0 Total 25,637.8 (11,286.6) 14,351.2 14,351.2 0 $ million equivalent 151.6 151.6 0 ( ) = negative number. a This includes the first partial cancellation of ¥4,363.4 million on 13 June 2011, and the conversion of loan currency for the undisbursed loan balance from ¥ to $ on 20 July 2015. Category allocation and disbursement status of the converted $ denominated loan are presented in item (ii). (ii) L2299-PAK – PFR 1 ($ million) Increased Canceled Last Undis- Original during during Revised Amount bursed Allocation Implemen Implementation Allocation Disbursed Balance Category (1) tation (2) (3) (4=1+2–3) (5) (6 = 4–5) Works 39.950 (5.417) 45.366 45.366 0 Equipment 1.432 1.432 0 Land acquisition, resettlement, environmental mitigation 0.582 0.563 0.019 0.019 0 Consulting services 2.702 (4.206) 6.909 6.909 0 Project management 0.024 0.024 0 Capacity development 4.476 4.420 0.056 0.056 0 v Increased Canceled Last Undis- Original during during Revised Amount bursed Allocation Implemen Implementation Allocation Disbursed Balance Category (1) tation (2) (3) (4=1+2–3) (5) (6 = 4–5) Financing charges 3.974 2.293 1.681 1.681 0 Recurrent cost 2.640 2.640 0 Unallocated 0.004 0.004 0 Total 55.784 1.752 54.031 54.031 0 ( ) = negative number.
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