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34-Management Report and Recommendation International Bank for Reconstruction and Development International Development Association MANAGEMENT REPORT AND RECOMMENDATION IN RESPONSE TO THE INSPECTION PANEL INVESTIGATION REPORT PAKISTAN: NATIONAL DRAINAGE PROGRAM PROJECT (CREDIT NO. 2999-PK) September 18, 2006 MANAGEMENT REPORT AND RECOMMENDATION IN RESPONSE TO THE INSPECTION PANEL INVESTIGATION REPORT OF THE PAKISTAN NATIONAL DRAINAGE PROGRAM PROJECT (CREDIT NO. 2999-PK) Pursuant to paragraph 23 of the Resolution Establishing the Inspection Panel (IBRD Resolution 93-10 and IDA Resolution 93-6), attached for consideration by Executive Directors is Management’s Report and Recommendation in response to the findings set out in the Investigation Report of the Inspection Panel (No. 36382-PK, dated July 6, 2006) on the captioned Project (Pakistan: National Drainage Program Project, Credit No. 2999-PK). MANAGEMENT REPORT AND RECOMMENDATION IN RESPONSE TO THE INSPECTION PANEL INVESTIGATION REPORT NO. 36382-PK PAKISTAN: NATIONAL DRAINAGE PROGRAM PROJECT (CREDIT NO. 2999-PK) CONTENTS ABBREVIATIONS AND ACRONYMS...................................................................................i LIST OF OPERATIONAL POLICIES, OPERATIONAL DIRECTIVES, AND OPERATIONAL POLICY NOTES ..........................................................................................ii EXECUTIVE SUMMARY OF MANAGEMENT RESPONSE .............................................iii I. INTRODUCTION .........................................................................................................1 II. BACKGROUND ...........................................................................................................2 III. DESCRIPTION OF THE PROJECTS...........................................................................8 IV. FINDINGS AND OBSERVATIONS OF THE PANEL .............................................10 V. KEY ISSUES ...............................................................................................................13 VI. LESSONS LEARNED.................................................................................................33 VII. MANAGEMENT ACTION PLAN .............................................................................36 VIII. RISKS ..........................................................................................................................42 IX. CONCLUSION............................................................................................................44 FIGURES Executive Summary Figure 1. Left Bank of Indus River in Southern Sindh..........................................................vi Main Text Figure 1. Salinity Levels in Pakistan.......................................................................................4 Figure 2. Left Bank of Indus River in Southern Sindh.........................................................17 PICTURES Executive Summary Picture 1. Indus River..............................................................................................................iv Picture 2. Salt encrusted agricultural land in Sindh...............................................................vii Picture 3. Cholri Weir in 1998 ................................................................................................xi Picture 4. Mud flats and landscape in the vicinity of the dhands and southern Badin...........xii Main Text Picture 1. Kadhan Pateji Outfall Drain...................................................................................14 Picture 2. Salt encrusted agricultural land in Sindh...............................................................18 Picture 3. Tidal Link...............................................................................................................21 Picture 4. Cholri Weir in 1998 ...............................................................................................24 Picture 5. Mud flats and landscape in the vicinity of the dhands and Badin .........................27 TABLES Executive Summary Table 1. Action Plan.............................................................................................................xv Main Text Table 1. Action Plan.............................................................................................................37 ANNEXES Annex 1. Panel Findings, Management Comments and Actions ..........................................45 Annex 2. LBOD and NDP Project Description.....................................................................71 Annex 3. Livelihood Support Programs for Coastal Area of Badin District and Sindh........77 Annex 4. Review of Performance of Left Bank Outfall Drain Stage I..................................86 Annex 5. IPOE Report: Environment Studies, Summary of Findings ..................................93 Annex 6. Country Water Resources Assistance Strategy......................................................96 Annex 7. Drainage Master Plan--International Panel of Experts ........................................115 Annex 8. July 2003 Floods Fatal Casualties in Sindh.........................................................121 Annex 9. Chronology of Key Events...................................................................................122 Annex 10. Schedule of Supervision Missions for LBOD and NDP......................................124 Annex 11. Documents and References..................................................................................131 MAPS Map 1. IBRD No. 34984 – National Drainage Program Project (NDP) – Sindh Province Map 2. IBRD No. 34988 – National Drainage Program (NDP) Project – Sindh Province. Detail of the LBOD Outfall System ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank IRSA Indus River System Authority AWB Area Water Boards IsDB Islamic Development Bank BP Bank Procedures IUCN International Union for the Conservation of CAS Country Assistance Strategy Nature CBO Community-based Organization JBIC Japan Bank for International Cooperation CCA Cultivable Command Area KPOD Kadhan Pateji Outfall Drain CIDA Canadian International Development LBOD Left Bank Outfall Drain Agency MTR Mid-Term Review CWRAS Country Water Resources Assistance NGO Nongovernmental Organization Strategy NDP National Drainage Program DERA Drought Emergency Recovery Assis- NSDS National Surface Drainage System tance NWFP North West Frontier Province DMP Drainage Master Plan OD Operational Directive DPOD Dhoro Puran Outfall Drain ODA Overseas Development Administration DSEA Drainage Sector Environmental As- (United Kingdom) sessment OFWM On-Farm Water Management EIA Environmental Impact Assessment O&M Operations and Maintenance EMMP Environmental Management and OP Operational Policy Monitoring Plan OPEC Organization of Petroleum Exporting Coun- EPA Sindh Environmental Protection tries Fund for Development Agency PO Partner Organization FLAR Framework for Land Acquisition and POE Panel of Experts Resettlement PPAF Pakistan Poverty Alleviation Fund FGW Fresh groundwater RAP Resettlement Action Plan FO Farmers’ Organization SAR Staff Appraisal Report GCA Gross Command Area SCARP Salinity Control and Reclamation Program GDP Gross Domestic Product SDC Swiss Development Cooperation GOP Government of Pakistan SEA Strategic Environmental Assessment GOS Government of Sindh SFD Saudi Fund for Development IBDF Indus Basin Development Fund SIDA Sindh Irrigation and Drainage Authority IBRD International Bank for Reconstruction TBOD Trans-Basin Outfall Drains and Development TDF Tarbela Development Fund ICR Implementation Completion Report TL Tidal Link IDA International Development Associa- TOR Terms of Reference tion TWs Tubewells IEE Initial Environmental Examination WAPDA Water and Power Development Authority IES Initial Environmental Scoping WSIP Water Sector Improvement Project IPOE International Panel of Experts WWF Worldwide Fund for Nature CURRENCY EQUIVALENTS (Exchange Rate Effective September 15, 2006) Currency Unit = Pakistani Rupee USD 1.00 = PKR 60.6 / PKR 1.00 = USD 0.0165 WEIGHTS AND MEASURES Metric System 1 meter (m) = 3.280 feet 1 hectare (ha) = 2.470 acres 1 Kilometer (km) = 0.620 miles 1 cubic meter (m) = 35.310 cubic feet 1 million acre feet (MAF) = 1.234 billion 1 cubic foot/second (cfs, = 0.0283 cubic meters/sec cubic meters cusec) (m3/sec, cumec) i LIST OF OPERATIONAL POLICIES, OPERATIONAL DIRECTIVES, AND OPERATIONAL POLICY NOTES OP/BP 4.01 Environmental Assessment, January 1999 OP/BP 4.04 Natural Habitats, September 1995 OD 4.20 Indigenous Peoples, September 1991 OD 4.30 Involuntary Resettlement, June 1990 BP 13.05 Project Supervision, March 1989 and July 1991 BP 17.50 Disclosure of Information, March 1994 and June 2002 OP 8.50 Emergency Recovery Assistance, August 1995 OPN 11.03 Management of Cultural Property, September 1986 ii EXECUTIVE SUMMARY OF MANAGEMENT RESPONSE THE REQUEST AND THE INSPECTION 1. In response to a Request for Inspection of the National Drainage Program (NDP) Project filed by residents of the Badin District in southern Sindh Province of Pakistan on September 10, 2004, the Inspection Panel submitted its report on July 6, 2006. 2. What follows is a description of the Request, the findings of the subsequent investigation and the Bank’s response, including plans to address the issues raised and the much wider issue of Pakistan’s challenge to manage its scarce water resources. Presented briefly at the outset is the context in which to understand this challenge. 3. The Wider Context. Pakistan is sometimes described as a desert with a river running through it.
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