Document of The World Bank

FOR OFFICIAL USE ONLY Public Disclosure Authorized

Report No. 4380-PAK

STAFF APPRAISAL REPORT Public Disclosure Authorized

PAKISTAN

FOURTH DRAINAGE PROJECT Public Disclosure Authorized

April 27, 1983 Public Disclosure Authorized South Asia Projects Department Irrigation I Division

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

US$1 = Rs 13.0 Rs 1 = US$0.08

WEIGHTS AND MEASURES

English/US Units Metric Units

1 foot (ft) = 30.5 centimeters (cm) 1 yard (yd) = 0.915 meters (m) 1 mile (mi) = 1.609 kilometers (km) 1 acre (ac) = 0.405 hectare (ha) I square mile (sq mi) = 259 ha 1 pound (lb) = 0.454 kilograms (kg) i long ton (lg ton) = 1,016 kg (1.016 kg) (1.016 metric tons)

Pakistani Units English Units Metric Units

1 maund = 82.3 lbs (0.0367 lg ton) = 37.32 kg (0.0373 m tons) 26.8 maunds = 2,205 lbs = 1.0 m tons 27.2 maunds = 1.0 lg ton (2240 lbs) = 1,016 kg

ABBREVIATIONS AND ACRONYMS USED

ac - Acre ADP - Annual Development Program AO - Agricultural Officer cca - Canal Commanded Area cusecs - cubic feet per second EC - Electric Conductivity (of water or other solutions) ECNEC - Executive Committee of the National Economic Council FA - Field Assistant FGW - Fresh Groundwater ga - Gross Area GOP - Government of Pakistan GOPunjab - Government of Punjab Province ICB - International Competitive Bidding LCB - Local Competitive Bidding m - Meter M - Million maf - Million Acre Feet M&E - Monitoring & Evaluation mmhos/cm - millimhos per centimeter (unit of electric conductance) FOR OFFICIAL USE ONLY

NDB .- Non-Development Budget OFWM - On-Farm Water Management O&M - Operation & Maintenance PCC - Project Coordination Committee PLA - Personal Ledger Account PLL - Precision Land Levelling PID - Punjab Irrigation and Power Department ppm - parts per million RAP - Revised Action Programme for Irrigated Agriculture RSC - Residual Sodium Carbonate SAR - Sodium Adsorption Ratio SCARP - Salinity Control and Reclamation Project SGW - Saline Groundwater t - metric ton TDS - Total Dissolved Solids TW - Tubewell USAID - US Agency for International Development WAPDA - Water and Power Development Authority WMA - Water Management Assistant WMO - Water Management Officer WMS - Water Management Supervisor WUA - Water Users' Association

GLOSSARY chak - lowest order of irrigation command (about 400 ac) doab - land between rivers kareze - traditional irrigation system with tunnel-like delivery channel kharif - wet season (mid-April to mid-October) katcha nucca - temporary outlet in earthen ditch bank mogha - uncontrolled outlet from parent canal to chak pucca nucca - permanent (masonry or concrete) outlet rabi - dry season (mid-October to mid-April) sarkari khal - communal portion of watercourse warabundi - rotational schedule of irrigation deliveries to farmers watercourse - irrigation distribution system in a chak

FISCAL YEAR

July 1 - June 30

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.

-ii-

pAKUSTAN

FOURTH DRAINAGE PROJECT

Table of Contents

Page No.

I. PACKCROUND ...... 1 General ...... 2 Irrigation Distribution Systems. 2 Draina83e ...... 3

II. THE PROJECT AREA. 7 Phvsical Features. 7 Agriciiltural Production .11 Agricultural Inputs and Services .13

III. TTIEPROJECT ...... 13 Objectives ...... 13 Subsurface Drainage .14 Surface Drainage ...... 18 On-Farm IJater M-¶anagement and Extension ...... 18

TV. PROJECT COSTS, FINANCING, PROCUREMENTAND DISBURSEMIENTS . 20 Cost Estimates .20 Financing .21 Procurement .22 Disbursements .23

V. PROJECT IMPLEMENTATION AND OPERATION AND MAINTENANCE 24 Operation and Maintenance .27 Implementation Schedule. 28 Technical Assistance and Training .28 Monitoring and Evaluation. 29

VI. PROnUCTITON, lMARKETINGAND PRICES, FARM INCOME AND CnST PErOVTERY ...... 31 Agricultural Impact .31 14arketinr and Prices ...... 32 Farm Income ...... 34 Cost Recover .34

VII. BENEFITS AND JUSTIFICATION ...... 36

VIII. AGREEMENTS REACHED ...... 38 -iii-

LIST OF ANNEXES

ANNEX 1 Cost Tables

Table 1 - Subsurface Drainage, Civil Works Table 2 - Subsurface Drainage, Equipment and Vehicles Table 3 - Subsurface Drainage, Equipment and Vehicles (continued) Table 4 - Subsurface Drainage, Technical Assistance Table 5 - Subsurface Drainage, Training Table 6 - Surface Drainage Table 7 - On-Farm Water Management and Extension Table 8 - Project Expenditure by Time Table 9 - Disbursement Schedule for IDA Credit

ANNEX 2 Implementation Schedule

ANNEX 3 Procurement Schedules

Table 1 - Civil Works for Subsurface and Surface Drainage Table 2 - Equipment and Vehicles Table 3 - Technical Assistance

ANNEX 4 Procedures for Operation of Civil Works Imprest Account

ANNEX 5 Consultants Terms of Reference

ANNEX 6 Financial and Economic Tables

PLATES

I Water Balance (Present), Indus Plains and Peshawar Vale

II Organizational Chart - Drainage

III Organizational Chart - On-Farm Water Management

MAPS

IBRD Map 16902 : PAKISTAN - Fourth Drainage Project PAKISTAN

FOURTH DRAINAGE PROJECT

STAFF APPRAISAL REPORT

I. BACKGROUND

1.01 Pakistan-s extensive irrigation systems (40 M ac) were largely developed without provision for subsurface drainage and minimal provision for surface drainage. As a result, the watertable underlying the Indus Plain has risen, leading to serious problems of waterlogging 1/ and salinity in many areas. Recognizing this situation, the "Revised Action Programme for Irrigated Agriculture" (RAP) 2/ accorded high investment priority to projects involving subsurface drainage in irrigated areas with a high watertable of unusable groundwater. In a policy statement in connection with the Struc- tural Adjustment Program, 3/ the Government of Pakistan's (GOP) Minister of Finance indicated that critical drainage of waterlogged and saline areas would be one of five priority program areas in the agricultural and water sectors to receive emphasis in future public expenditures.

1.02 In line with RAP's recommendations and GOP's policies, the Bank included an Irrigation/Drainage IV Project in the FY83 IDA Lending Program. An IDA identification mission visited Pakistan in October 1981 to discuss the proposed project. The Secretary of the Ministry of Water and Power and the Secretary of Punjab-s Department of Irrigation and Power determined that the Lower Rechna Doab would be designated as the site for the proposed drainage project with subsurface drainage as a main component. An IDA appraisal mission comprising Messrs. W. D. Fairchild, C. P. Cheng, J. Mohamadi, W. Peters, P. Streng, U. Qamar and R. Winger, visited Pakistan from June 19 to July 12, 1982. Two feasibility reports prepared by WAPDA, "Lower Rechna Remaining Sub-project" (May 1982) covering the Samundri I, Samundri II and Paharang units, and "Khairwala Unit Lower Rechna Remaining" (June 1982) served as the principal reference documents for the appraisal mission. The mission found that most of the project area is in desperate need of drainage.

1/ The term "waterlogging" reflects common usage in Pakistan to denote a high water table.

2/ Published in May 1979 by Water and Power Development Authority (WAPDA) and based on a four-year Indus Basin Planning Study, funded by UNDP with the Bank as executing agency.

3/ Supported by a Bank Group Structural Adjustment Loan and Credit (Ln. 2166-PAK and Cr. 1255-PAK). The severity of the waterlogging problem and its deleterious impact on crop production are even greater than indicated in these two reports.

General

1.03 Pakistan has a total land area of 196.7 M ac. Only 40% of this, or about 78.0 M ac is suitable for crop, range and forest production. About 40.0 M ac of the cultivable land is commanded for irrigation where about 90% of the nation's total agricultural production is generated. The remaining 14.7 M ac of cultivable land is either dependent on flood moisture (sailaba) or rainfall (barani).

1.04 Agriculture dominates Pakistan's economy. It contributes about 30% to GDP, provides about two-thirds of total exports, and employs some 55% of the nation's 24.6 million labor force, thus keeping about 70% of the popula- tion (83.8 million) in rural areas. During the period FY77-81, Pakistan's annual economic growth rate exceeded 6%, a marked increase over the 3.7% for the FY71-76 period. At the same time, the agricultural growth rate increased from 1.7% in FY71-76 to 4.2% in FY77-81. Even so, the per capita annual income in Pakistan is only about US$300 (Bank's estimate for 1980) with approximately 30% of the population having income below US$150. The doubling of the growth rate in the agricultural sector during the late 1970s can be attributed partly to favorable weather; however, a major factor was farmer response to GOP's policy of raising support prices for agricultural crops, programs to improve the reliability of irrigation water supplies, and increased availability of agricultural credit and fertilizer. At the same time GOP has been reducing, with a goal to eliminating, subsidies on non-water agricultural inputs.

Irrigation Distribution Systems

1.05 Indus Irrigation System. The first controlled year-round irrigation in the Indus Basin began in 1859 with the completion of the Upper Bari Doab Canal from Madhopur headworks on the Ravi River. Today, the Indus Irrigation System commands about 34.5,M ac and comprises three major storage reservoirs (Tarbela, Mangla and Chasma), 1/ 19 barrages or headworks, 12 link canals, 43 canal commands and some 89,000 chaks. The total length of the canal system is about 35,000 mi with watercourses, farm channels and field ditches running another 1.0 M mi in length. The Indus Irrigation System is the largest contiguous irrigation system in the world.

1.06 Under the Indus Irrigation System, river water is diverted by bar- rages and weirs into main canals and subsequently into branch canals, dis- tributaries and minors. An open, free-flowing outlet (mogha) regulates water from distributaries and minors into a watercourse by a discharge of one to three cusecs. Distribution of water to fields is governed by a time rotation scheme (warabundi) based on size of land holding. Operation and maintenance

1/ About 14.5 maf of live storage. - 3 -

(O&M) of this system above the miogha is the responsibility of the Provincial Irrigation Departments (PID), 1/ whereas the farmers maintain the water- courses. Two recently approved IDA-supported projects, On-Farm Water Manage- ment Project (Cr. 1163-PAK) and Irrigation Systems Rehabilitation Project (Cr. 1239-PAK) are designed to assist farmers and PIDs in carrying out their O&M duties. Under Cr. 1239-PAK, GOP and GOPunjab agreed to increase O&M allocations in real terms to meet estimated requirements by FY85. This agreement was reaffirmed under the Structural Adjustment Program (para 1.01). TInder the SCARP VI Project (Cr. 754-PAK) and recently under the Irrigation Systems Rehabilitation Project, GOPunjab also agreed to periodically raise water charges in order to fully recover O&M costs by mid-1990 (see Chapter VI). Budgetary allocations for O&M of the irrigation system show an upward trend in FY83, and the Provinces have improved cost recovery. Nevertheless, there is scope for further improvement, which was recognized in a recent Federal Cabinet decision that the Provincial Governments should narrow the gap between O&M costs and recoveries through successive increases in water charges.

1.07 Irrigation Outside the Indus Basin. About 5.5 M ac of irrigated land in Pakistan is located outside the Indus canal command area (cca). It is scattered in relatively small parcels with water supplies coming from such sources as open wells, tubewells, lift pumps, karezes, springs and small diversions. Generally, these irrigation water supplies are uncertain and vary with the season and location.

Drainage

1.08 Prainage and Associated Problems. The hydrological balance of the Indus Basin has been significantly altered during the past century by the continuous and expanding diversion of riverflows for irrigation. Seepage from the distribution system of canals, distributaries, minors and watercourses and deep percolation of irrigation water from irrigated lands have resulted in a gradual rising of the groundwater table which has now reached a crisis condition over a significant portion of the irrigated area. At the beginning of this century the water table was generally over 50 ft below the surface throughout the Indus Plain. However, the Indus Basin Salinity Survey 2/ reports that 22% of the Indus Basin has a water table within 6 ft of the surface, and an additional 30% of the area has a water table within 10 ft. Much of this survey was completed in 1977 and 1978 and the situation has deteriorated significantly since that time. This deterioration has been accelerated by the improved system of barrages and

1/ Except for major storage reservoirs and limited O&M of drainage schemes assigned to WAPDA (para 5.10).

2/ "Indus Basin Salinity Survey," WAPDA, 1981 indicates that Punjab Province has about 36% of its cca with a groundwater table within 10 ft of the surface and Sind Province has 57% in the same category. -4- additional storage (para 1.05), which has made it possible to significantly increase diversion of irrigation water.

1.09 In addition to the waterlogging problem, rainstorm flooding occurs frequently in the upper portion of the Bari, Rechna and Chaj Doabs in Punjab and in the lower reaches of the Indus Plain near the sea coast In Sind. Surface drainage problems are also encountered in portions of NWFP and in cities such as Karachi, Sukkur, Jhang, Lahore and Rawalpindi. Furthermore, surface drainage problems associated with the flat topography of the Indus Basin have been exacerbated by the construction of roads, railways, flood embankment and irrigation distribution networks which obstruct natural drainage flows.

1.10 Surface Drains. The first reported high water table was in Punjab Province in Bari Doab in 1880. It was stated in numerous studies and inves- tigations in the 1930s that waterlogging was caused mair'y by insufficient surface drainage and differences in permeabilities of the sub-strata. Hence it was reasoned that the rising groundwater table was caused mainly by mon- soon rainfall. Consequently, construction of surface drains was proposed for quick disposal of run-off from monsoon rainfall. By 1947, about 2,200 mi of storm water/irrigation waste drains were constructed in the Rechna and Chaj Doabs. Since the major contributor to waterlogging is deep percolation of irrigation water rather than precipitation, these surFace drains had marginal effect on waterlogging but they did provide relief from rain flooding. Even though about 8,700 mi of surface drains have been constructed ir Pakistan to date, crop losses because of rain flooding remain excessive, especially in Punjab Province and the Kotri drain area of Sind Province because of inadequate collector drain capacity and coverage as well as poor maintenance.

1.11 SCARP Program. The responsibility for alleviating the problem of waterlogging and salinity was assigned to WAPDA in 1958. Based upon various studies, WAPDA initiated a salinity control and reclamation project (SCARP) concept of installing public tubewells (TW) to: (a) control waterlogging and salinity; and (b) provide for optimum development of fresh groundwater (FGW) resources for agricultural production. These TWs (capacity of 2 to 5 cusecs) and required surface drains have been installed by WAPDA with funding from the Federal Annual Development Program (ADP), whereas PIDs are responsible for required O&M with funding from the Provincial Non-Developmental Budget (NDB). SCARP I was launched in Punjab in 1959 and completed in 1963. WAPDA has since taken up 30 such projects in Pakistan. When completed, these projects would cover about 15.5 M ac. As of June 30, 1980, WAPDA had installed about 11,050 public TWs in the FGW zones and about 1,400 public TWs in saline groundwater (SGW) zones 1/ at a cost of about Rs 5,500 M. However, financial constraints have severely limited progress with only 50% of the SCARP cca (about 7.5 M ac) covered to date with public TWs. Meanwhile, individual farmers have installed about 180,000 TWs (capacity of one cusec or

1/ FGW generally defined as groundwater with total dissolved solids (TDS) of less than 1,000 ppm and SGW with more than 1,000 ppm. - 5 - less) primarily for supplementary irrigation. These private TWs have con- tributed significantly to the control of waterlogging. It is estimated that the annual private TW pumpage is about 27.0 maf, whereas that for public TWs is about 5.0 maf.

1.12 SCARP public TWs have made significant contributions in localized areas to alleviating the waterlogging and salinity problems. Also, experience gained from the SCARPs has spurred installation of private TWs in the FGW zones. Nevertheless, WAPDA reported in October 1980 that about 25% of the SCARP cca had a watertable within 5 ft of the surface and 63% within 10 ft. This continued high watertable in SCARP areas has resulted from numerous problems -- technical, institutional, financial and economic. Since FY75, pumping capacity of individual SCARP TWs has been declining at a rate of about 4.6% annually because of TW failure, reduction in capacity (blockage of screens and gravel pack), and pump breakdown. Even though Punjab's Provincial NDB funding for TW O&M has increased over 160% from FY77 to FYS1, and the Rs 353 M makes up 50% of the PIDs annual O&M budget, this level of funding permits TW operation at only 30 to 35% of designed capacity. Another major problem is that a formalized program has not been developed for con- junctive use of canal and TW water. Operating criteria for public TWs have not been developed to reflect crop water and/or leaching requirements. Public TW operators pose a particularly difficult problem, as they are fre- quently absent from their stations. Initially, TWs are installed with protec- tive devices to shut off the motor when electrical supply problems are experienced. Pumps are to be started only by operators, but because operators are frequently absent, many of these protection devices have been disabled by disgruntled farmers, which has resulted in a high incidence of burned out motors. Technical problems have centered around standardized TW design, which has resulted in the following deficiencies:

(a) design did not adequately reflect site specific material logs, which frequently resulted in an incorrect location and design of screen slots and gravel pack;

(b) TWs were located along drains and canals for easy disposal which resulted in a high level of recirculation of canal and drainage water from receiving channels;

(c) TWs were located in some areas where hydraulic conductivity, both vertical and horizontal, is inadequate to provide required drainage to the crop root zone;

(d) TWs have not been properly spaced to achieve effective drainage throughout the area to be drained;

(e) deep TW design has resulted in pumping of large quantities of grotndwater from deeper strata, which invariably is more saline. This highly saline water must then be disposed into irrigation channels and/or rivers serving lower lying irri- gation areas; and - 6 -

(f) deep TW design also resulted in pumping some aquifers not directly connected hydraulically to the upper strata to be drained.

1-13 Recognizing the critical need for control of waterlogging, as well as the institutional and technical problems facing the SCARP program, WAPDA recommended in RAP (para 1.01) that:

(a) FGW resources should be exploited by the private sector;

(b) a program should be implemented to transfer O&M of existing public TWs in FGW zones to the private sector; and

(c) control of waterlogging in SGW zones should have high priority in future investment programs.

In line with these recommendations, GOP has directed that feasibility reports be prepared for two projects, a Private Tubewell and Rural Electrification Project and a SCARP Transition Project, using funds from the UNDP Project, "Investment Project Preparation in Water, Agriculture and Energy Sectors, (PAK/81/004), with the Bank as executing agency. Studies for these two reports were initiated in FY83.

1.14 IDA-F4inancedDrainage Projects. Three IDA-funded drainage projects, Khairpur II (Cr. 684-PAK), SCARP VI (Credit 754-PAK), and SCARP Mardan (Cr. 877-PAK) are under construction in Pakistan. The first horizontal pipe drainage systems to be installed in Pakistan have been included in the Khairpur II (about 31,000 ac) and SCARP Mardan (about 73,000 ac) projects. About 250 public TWs are scheduled to be installed in SCARP VI to drain about 300,000 ac in the SGW zone. In addition, the Bank is executing agency for a UNDP financed study leading to the preparation of a feasibility report for the Left Bank Outfall Drain (LBOD) in Sind Province.

1.15 On-Farm Water Management Project. Several investigations conducted in the mid-1970s 1/ verified that about 40-50% of the water entering each chak is lost during conveyance before reaching the crops. Such losses are particularly critical when coupled with the acute shortage of planned irriga- tion deliveries (para 2.03). Because of these heavy conveyance losses, GOP, with USAID support, launched a five-year (FY76-80) Pilot On-Farm Water Management (OFWMI)project, which was followed by a three-year IDA-financed (FY81-83) OFWM project (Cr. 1163-PAK). The objective of both projects was to increase crop production by increasing irrigation water supply through programs of water management reducing losses within individual chaks. These two projects provided for: (a) renovation of about 3,600 watercourses with about 15% pucca lining and structures; (b) heavy cleaning of about 26,500 watercourses; and (c) precision land levelling (PLL) of about 48,000 ac. A

1/ Mona Reclamation Experiment Station (MRES) and Colorado State University Team, 1973 and 1976; Perspective Planning Division, WAPDA, 1977. -7 - successful innovation of these projects was that benefitted farmers would contribute all required labor. In the case of Cr. 1163-PAK, farmers are required to organize formal Water Users' Associations to facilitate main- tenance of watercourse improvements and to repay some of the costs of materials required for civil works. WAPDA's Survey and Research Organization has been monitoring and evaluating these projects. They have found that the improved water management practices have resulted in savings of up to 50% of preproject water losses. However, WAPDA found also that crop production did not increase immediately following such improvements because of an inadequate extension program, and farmers slow initial response to the increased water supplies.

II. THE PROJECT AREA

Physical Features

2.01 Location. The proposed project would cover the Paharang, Samundri I and Samundri II units in Rechna Doab, Punjab Province (see IBRD Map 16902). 1/ These units have extensive areas of high watertable and salinity/sodicity (alkali) affected lands. These three units in Faisalabad Division cover some 355,000 ac, with about 295,000 ac under canal command (Table 2.1). The Paharang and Samundri I units are contiguous and are located immediately to the north and northeast of Faisalabad city, whereas the Samundri II unit is located to the south and southwest of Faisalabad.

Table 2.1: Project Area by Unit (O000 ac)

Unit Gross Area (ga) Canal Command Area (cca)

Paharang 138 113 Samundri I 43 33 Samundri II 174 149 Total 355 29S

2.02 Climate. Rainfall is sparse. Annual precipitation is only about 10 in, half of which falls in July and August. The maximum 10-day pan evaporation rate is about 3 in and averages about 80 in annually. Hence, irrigation is a necessity for agricultural production. Even so, heavy rain- fall does occur during some monsoon seasons causing substantial flood losses to property and crops. The average monthly temperature ranges from 56°F in

1/ Khairwala unit has not been included in this project because of financial constraints. Even though this unit has a drainage problem, it is not as severe as in the other three units, i.e., Khairwala has about 23% of its area with a water table of less than 5 ft, whereas the other three units have about 77% in the same category (see Table 2.4). - 8 -

January to 93 0F in June. Daily maximum temperatures in summer may reach about 1200 F. Occasionally, temperatures may fall below 32 0F in winter, however, killing frost is rare.

2.03 Irrigation. The Paharang and Samundri I units receive irrigation water from the Jhang and Rakh perennial branch canals, which in turn are supplied by the Lower Chenab Canal Feeder. The Samundri II unit is irrigated by the Lower Gugera and Burala perennial branches of the Lower Chenab Canal. Planned surface water deliveries are about 3 cusecs/i,000 ac, which is about one-half the crop requirements. During hot and dry summer days the water shortage becomes acute and puts most crops under severe moisture stress.

2.04 Punjab's OFWM Directorate is currently carrying out a substantial on-farm water management program. To date, 1,100 watercourses have been renovated, 13,500 watercourses have been heavily cleaned, and 30,000 ac of land have received PLL in the Province. Just a small percentage of such required improvements have been made in the project area. 1/ In addition, most of the watercourse renovation has been completed under the Pilot OFWM Project (USAID supported) where only 10% of the communal watercourse was lined and formalized WUAs were not organized to assume required maintenance.

2.05 Water Suitability. RAP established broad water quality criteria (Table 2.2) for basin planning in Pakistan that can serve as a general guideline in determining suitability of water for irrigation purposes. However, such criteria must be adjusted to the different environmental condi- tions, i.e., soils, climate, cropping patterns, water management practices, drainage, and economics of amendments.

Table 2.2: Criteria for Water Suitability (through 1990)

EC TDS RSC Suitability of Water mmhos/cm ppm SAR meg/l

Useable directly 2.3 1500 12 5.0 Useable with mixing /a 4.4 3000 20 10.0

/a Mixing of ground and surface water at ratio of 1:1.

2.06 Canal water from the Indus Irrigation System is low in salt and alkali with total dissolved solids (TDS) averaging between 80-160 mg/l, and sodium adsorption ratio (SAR) of less than 0.5. This bigh quality water is highly suitable for irrigating the diversified cropping system of the project area.

2.07 Groundwater sampled by the mission from numerous shallow wells in the project area indicates a TDS of less than 3,000 mg/I. The sodium bicarbonate

1/ Less than 5% of watercourses have been renovated and less than 1% of the irrigated land has received PLL. - 9 - content and the SAR values are quite high with over 50% of the samples having an SAR value above 18. Hence, most groundwater is presently unsuitable for irrigation by direct application. However, with improved drainage and water management, it would appear that some of the groundwater could be used for irrigation purposes if properly mixed with the higher quality surface sup- plies. Such mixing is already taking place as evidenced by about 500 private TWs that have been installed in the project area. Most of these are shallow, low capacity TWs (one cusec or less) located adjacent to canals, branches, distributaries and minors, where groundwater quality is enhanced by seepage from these channels.

2.08 Surface Drainage. The flat topography 1/ and absence of a well defined natural drainage system in the project area has created a severe surface drainage problem. This has been-compounded by construction of roads, railroads and irrigation works that obstruct surface runoff. To alleviate this problem a system of surface drains has been constructed. However, this system is inadequate because of poor design and maintenance as evidenced by clogged channels and insufficient capacities. 2/ Also, the present system does not provide a direct outlet to all project lands. Surface drainage for the Paharang unit is mainly provided by the Paharang main drain which out- falls into the Chenab River through the Chakbandi system. Surface drainage for the Samundri I and Samundri II units is provided by the Samundri drainage system which discharges into the Ravi River. This system consists of four drains: the Maduana drain, which drains the Samundri I area and the northern part of Samundri II; the Awagat drain which drains the central part of Samundri II; and the Samundri main and branch drains which drain the southern part of the Samundri II area. Table 2.3 gives the main features of the project area's surface drainage system.

Table 2.3: Main Features of the Project Surface Drainage System

Catchment Design Area Discharge Length Name of Drain (sq mi) (cusecs) (mi)

Paharang Main Drain 222 589 38 Samundri Main Drain 385 771 41 Samundri Branch Drain 49 98 21 Awagat Branch Drain 78 156 31 Maduana Branch Drain 268 536 48

1/ Average gradient of one foot per mile.

2/ The Irrigation Systems Rehabilitation Project (Cr. 1239-PAK) provides funds for rehabilitating certain surface drains in Punjab Province, as well as sets a target for NDB funding to ensure maintenance of rehabilitated schemes. - 10 -

2.09 Water Table. The project area is in desperate need of subsurface drainage. WAPDA's May 1982 report on the "Lower Rechna Remaining Subproject" indicates that about 77% (about 270,000 ac) of the gross project area has an extremely high groundwater table (less than 5 ft), while some 21% (about 74,000 ac) is moderately well drained with a groundwater table between 5 and 10 ft (Table 2.4). Field inspections by the mission indicated that the high water table problem may be more severe than stated in the report. Other data provided by WAPDA i/ indicated that from 1955 to 1982, the percentage of well drained land 2/ in the project area has decreased from 79% to 6%, an alarming rate of 2.7% annually.

Table 2.4: Groundwater Table Depth (October 1982) Ia

Oto 5 ft 5 to 10 ft 10 ft plus ( 000 ac) (M) ('000 ac) {%) (000 ac) (%)

Paharang 84.1 60.9 45.1 32.7 8.8 6.4 Samundri I 38.8 90.3 4.2 9.7 - - Samundri II 149.6 86.0 24.4 14.0 - - Total 272.5 77.0 73.7 20.6 8.8 2.4 /a gross area.

2.10 Soils. The project area consists of soils derived from alluvial deposits of the Ravi and Chenab rivers. These soils are generally deep and calcareous, ranging in texture from coarse to moderately fine with a predominance of medium-textured materials. Based upon the one soil profile/sq mi chemical analysis made by WAPDA in 1978 (Table 2.5), about 67% of the project lands at the time of analysis was salt free, whereas about 8% was saline-non/sodic, 20% saline/sodic, and 5% non-saline/sodic. The salinity/sodicity of the project lands is somewhat higher than that for the remainder of the Lower Rechna Doab. Some of the salt-affected soils, though sodic by definition, can be reclaimed through drainage and leaching. In some of the area, inadequate drainage and increases in salinity have brought about the development of problematic soil sodicity. Reclamation and amelioration of these problematic sodic and nongypsiferous soils would be more difficu'lt, requiring application of gypsum in addition to drainage and leaching. Reclamation would therefore be less economically feasible where such amend- ments are needed. With this exception, project area lands have favorable characteristics of soil permeability and available moisture relationships for irrigated agriculture. It is estimated that about 12,500 ac of land in the project area that are scheduled to receive subsurface drainage have sodic

1/ Land Classification Report on Samundri II area prepared by Soil Salinity and Water Table Survey Directorate, Planning Division, WAPDA, August 1982.

2/ Land area with watertable depth of over 10 ft. - 11 - problem soils, requiring amelioration through reclamation with gypsum. In general, the alkali problem is limited to the top 12 in of the soil profile.

Table 2.5: Chemical Analysis of Soil Profiles

Gross Non- Non- Non- Non- Unit Area Saline/Sodic Saline/Sodic Saline/Sodic Saline/Sodic (O000 ac) ( 000 ac) (%) (000 ac) (%) ('000 ac) (X) ( 000 ac) (%)

Paharang 138.0 109.0 79 5.5 4 18.0 13 5.5 4 Samundri I 43.0 28.0 65 6.0 14 7.3 17 1.7 4 Samundri II 174.0 101.0 58 15.5 9 47.0 27 10.5 6

Total 355.0 238.0 67 27.0 8 72.3 20 17.7 5

Lower Rechna 240.0 58.0 74 179.0 8 336.0 15 67.0 3 Source: "1979 Soil Salinity Atlas," WAPDA.

Agricultural Production

2.11 Farm Size and Tenure. Of the 32,070 farms in the project area, 76% are less than 12.5 ac, 19% are between 12.5 ac to 25 ac, and 5% are over 25 ac. The average size farm is about 9.25 ac as compared to a national average of about 12.5 ac. Also, over 80% of the farms are either owner operated or owner-cum-tenant operated. Table 2.6 shows the land tenural pattern for the project area.

Table 2.6: Land Tenure Pattern (cca)

% of Farms % of Area No. of Owner Owner- Owner Owner- Unit Farms Operated Cum-Tenant Tenant Operated Cum-Tenant Tenant (cca ac)

Paharang 12,663 52 33 15 42 42 16 113,079

Samundri I 3,750 52 33 15 42 42 16 33,486

Samundri II 15,657 48 31 21 38 41 21 149,369

Total 32,070 50 32 18 40 41.5 18.5

Source: Pakistan Census of Agriculture, 1972.

2.12 Impact of High Water Table on Agricultural Production. With its generally fertile soils and well developed irrigation system, Faisalabad - 12 -

Division was once one of the most agriculturally productive areas in Pakistan. Because of the rising groundwater table, at least 25% of the arable area in the Division has become increasingly waterlogged, and salinity/sodicity (alkali) has accumulated in the surface soils. As a result, agricultural productivity has declined considerably. During the 1945-81 period, the non-producing cropland area has increased by about 50%, and the total salinity/sodicity affected area by more than 100%. During the same period, cotton acreage (a crop intolerant of a high water table) has decreased by about 43%.

2.13 Yields, Cropping Intensity and Production. Wheat, sugarcane and fodder are now the main crops in the project area. Next in importance are maize, cotton and rice. However, because of waterlogging and soil salinity/ sodicity, yields are poor. Except for rice,-crop yields in the project area are lower than the average yields in Faisalabad Division. Since at least 25% of the 1.8 M ac of arable land in the Division is waterlogged, the difference between the yields in the project area and the non-waterlogged areas of the Division would be even more. Because of the waterlogged condition of the land and the small holdings, low income and desire to minimize risks, farmers tend to apply available irrigation water to most of their land. Conse- quently, in spite of the water shortage (para 2.03) cropping intensities in the project area are relatively high (153% in Paharang, 134% in Samundri I, and 132% in Samundri II). The present cropping intensities and estimated production are given Table 2.7.

Table 2.7: Present Yield, Cropping Intensity and Production of Major Crops

Cropping Crop Intensity Acreage Yield Production (% of cca) (-000 ac) (kg/ac) (t)

Klarif Cotton 8 24 135 3,240 Rice 4 12 554 6,648 Maize 13 38 344 13,072 Fodder 10 29 7,890 228,810 Sugarcane 20 59 10,550 622,450

Rabi Wheat 41 121 613 74,173 Oilseeds 6 18 190 3,420 Fodder 12 36 12,468 448,848 Sugarcane 20 59 - -

Source: Report on Lower Rechna Remaining Subproject, WAPDA, May 1982. - 13 -

AgriculturalInputs and Services

2.14 Inputs Supply. The government-owned,tehsil-based bulk depots and village based sub-depots supply most fertilizers,pesticides and seeds. Beginning in FY80, the private sector also has been selling fertilizersand pesticides. The annual fertilizerconsumption, in terms of nutrient per cropped acre, is estimated at around 30 kg. Pesticide usage is sparse. The use of certifiedseed in the project area is also very limited; only 3.5% of the required wheat seed was certified during the FY81 crop season. This situation is expected to improve through the implementationof the IDA-financedSeed Industry DevelopmentProject (Cr. 620-PAK).

2.15 Extension Service. The Faisalabad Division Agriculture Extension Office is headed by a Deputy Director of Agriculture (DDA). Under him are three Extra Assistant Directors of Agriculture (EADA)--oneeach at Faisalabad,Toba Tek Singh and Jhang, one Assistant Plant Protection Officer, one Assistant HorticultureOfficer, 20 AgriculturalOfficers (AO), and 247 Field Assistants (FA). Although Punjab-s extension program has been improv- ing recently, the service in Faisalabad Division still encounters the follow- ing difficulties: (a) inadequate number of operating staff, especiallyof FAs; each FA covers an average of about 1,500 farm families in this Division; (b) lack of staff mobility; (c) inadequate training of staff; and (d) poor linkage and coordinationwith research, even though both the Agricultural University and the Ayub AgriculturalResearch Institute are located in Faisalabad. All these shortcomingswere verified through farmers interviews by the mission. The Division's extension service is not covered by the IDA-financedPunjab Extension and AgriculturalDevelopment Project (Cr. 813-PAK), which only covers five districts in the Province (Rahimyar Khan, Vehari, Sheikhupura,Sarghoda and Jhehlum).

III. THE PROJECT

3.01 The proposed five-year project (FY84-88)would be located in the Paharang (113,000 ac cca), Samundri I (33,000 ac cca) and Samundri II (149,000 ac cca) units of Faisalabad Division in Punjab Province (see IBRD Map 16902). It would consist of the following components:subsurface drainage, surface drainage, and on-farm water management and extension. The surface drainage componentwould serve the entire project area (295,000 ac cca), however, because of financial constraintsthe other components would be limited to about 75,000 ac with severe subsurfacedrainage problems.

Objectives

3.02 The project's two objectiveswould be to increase agricultural production and to strengthen the capability of WAPDA and Punjab's Departments of Irrigation (PID), and Agriculture in carrying out similar projects. In order to achieve the agriculturalobjective, the project would: - 14 -

(a) reduce water3logggingand salinity by installing a system of subsurface PVC drains;

(b) reduce rain flooding by rehabilitating and extending the area's surface drainage system;

(c) increase irrigation water supplies through savings resulting from improved OFIWM practices; and

(d) strengthen the extension program.

In order to achieve the institutional objective, the project would provide substantial technical assistance and training, the size of which has been determined by the fact that Pakistan is just at the beginning of what may become a vast program of subsurface drainage installation (paras 5.14 to 5.17).

Subsurface Drainage (Base Cost US$61.6 M) 1/

3.03 For the subsurface drainage component, the project would provide required civil works (US$39.3 M), equipment (US$12.9 M), technical assistance and training (US$4.2 M), administration and engineering (US$3.9 M) and recur- rent cost (US$1.3 M) for treatment of about 22,500 ac in Paharang, 24,750 ac in Samundri I, and 27,750 in Samundri II (see Annex 1, Tables 1-5 for detailed cost estimates). Selection of areas to receive such treatment would be made by the Project Coordination Committee (para. 5.02) and concurred in by IDA. The major basis for selecting these areas would be an irrigation suitability land classification, 2/ with consideration given to the following points:

(a) existing outlet is available for outfall;

(b) watertable depth of 5 ft or less throughout the year over most of the area; and

(c) size of farm units, ownership, and tenancy arrangements comparable to the norm for the three units (para 2.11).

In preparing the land classification, maximum use would be made of existing data.

3.04 Civil Works. Because of the problems experienced in Pakistan with TW drainage of SGW areas (para 1.12), GOP has evolved a policy for subsurface drainage which emphasizes horizontal pipe drainage in SGW areas and private

1/ All cost estimates in Chapter III are base costs.

2/ Patterned after the concepts and principles of the US Bureau of Reclama- tion system, but adapted and structured to be site-specific. - 15 -

TWs in FGW areas. However, TWs may be installed in SGW areas as an interim solution, where urgent need for drainage makes it inappropriate to wait for the completion of more time-consuming pipe installation. In line with this GOP position, and recognizing that horizontal pipe is the internationally accepted technology for such drainage, it was determined that such technology would be employed in this project.

3.05 The project would provide for installing about 225 mi of collector and 1,380 mi of field drains with gravel envelope, 250 sumps, 78 mi of link- ing channels, and facilities, as well as soil amendments. These requirements were extrapolated from data for a sample area of about 5,000 ac supplied by WAPDA. For the project area, an average lateral spacing of 450 ft, or about 100 ft/ac of such pipe was determined appropriate. All subsurface drain facilities were located on a four-inch to the mile map with one-foot con- tours.

3.06 Over 40% of the test holes in the WAPDA sample indicated problems of sodicity (alkali), low infiltration, and upward groundwater pressures. Estimated quantities and costs for the project have been based on these data with the assumption that they are representative of the project area. However, it appears that there are extensive and contiguous lands with a critical groundwater table within the project area that are relatively free of such problems. Identification and selection of such areas by GOP, using the land classification mentioned in para 3.03 would reduce significantly the subsurface drainage cost per ac (about US$815) envisioned for the project. This could thereby increase the acreage under the project to receive such treatment. Generally, GOP should limit areas receiving subsurface drainage to those lands that can be drained within this cost estimate.

3.07 Collector drains would be installed 8.5 to 11 ft deep so that lateral drains can be installed in the most permeable stratum between 6.5 and 8 ft. The transient flow method, which considers all the parameters related to soil condition, rate of drainage required, and irrigation practice, would be used for determining final drain spacing and selecting the pipe diameters required for the lateral and collector drains. All sumps, pumps and power units would be designed for maximum inflow into the sump; the most economical storage size and capacity; the required pumping rate; and the most suitable cycling schedule for operation of the power and pump units. Effluent from the sub- surface drains would be disposed through the surface drainage system. Col- lection of design data and preparation of detailed construction designs, drawings, specifications, and cost estimates would be initiated by WAPDA in the second semester of FY83 to enable initiation of subsurface drain instal- lation beginning early in FY85. (See para 5.04 and Implementation Schedule -- Annex 2, and Annex 3, Table 1 for Procurement Schedule for Civil Works). Designs and specifications for the subsurface drainage system would be con- sistent with the US Bureau of Reclamation "Standard Specifications for - 16 -

Drainage Systems." 1/ Assurances have been obtained from. GOP that all civil works designs and specifications would be satisfactory to IDA.

3.08 It is estimated that there would be about 12,500 ac in the area receiving subsurface drains that have sodic soil problems. These soils are characterized by infiltration rates so low that sufficient irrigation water cannot enter the soil profile to sustain optimum plant growth. About 2 t/ac of pulverized gypsum 2/ along with additional irrigation water for leaching would be applied to these lands to improve water infiltration, soil structure and tilth and reduce sodicity and salinity.

3.09 No land, easements, or right-of-way would be purchased for installa- tion of collector or lateral drains. However, compensat'on would be paid to farmers for crop loss during construction. Private lands,would be purchased as required for sumps and linking channels.

3.10 Office buildings, rest house, storage yards, and maintenance build- ings for the project would be constructed in the Faisalabad area. Additional facilities to be constructed would include storage areas in the immediate project area.

3.11 Equipment. The project would provide the required construction equipment, vehicles, lowlift. sump pumps, survey equipment, soil and water laboratory equipment as well as office equipment and furniture.

3.12 To complete the 75,000 ac subsurface system within the five-year project period, nine heavy duty trenching machines and related equipment would be procured. Three of these machines would be modified for greater strength and equipped with 20-in shields and larger gravel hoppers to permit installation of up to 12 -in collector drains. The lateral drains would be installed using the other six standard trenchers. Each trencher would have laser controls to maintain accurate grade for installing the drainage pipe. Other construction equipment to be procured include: crawler tractors, motor graders, backhoes, lowbed trailers, front-end loaders, tractors and trailers with elevators, trucks, etc. (see Annex 3, Table 2 for complete listing of equipment and procurement schedule).

3.13 Besides the normal project requirements for transport, office and survey equipment, the project would provide: (a) about 250 lowlift pumps for pumping drain water from collector drains to linking channels and secondary pumping to branch drains; and (b) water and soil laboratory equipment required to aid in designing of subsurface system, and determining soil amendments and drain water suitability for irrigation.

1/ "Standard Specifications for Drain Systems," July 1982, Columbia Basin Project, United States Department of Interior, Bureau of Reclamation.

2/ It is recommended that 100% of the gypsum should pass through a 1/4-inch mesh sieve. - 17 -

3.14 Technical Assistance and Training. The project would provide the following technicalassistance:

(a) about 225 man-months of resident and part-time specialists (estimated cost -- US$10,350 per m/m) would be appointed to assist in: (i) preparationof plans, designs and tender documents for subsurface drainage schemes; (ii) preparing tender documents, procuring, modifying and operating drainage equipment; (iii) inspectionand operationand maintenance of installedworks; (iv) soils and land classificationinvesti- gations; and (v) monitoring and evaluation; (para 5.14) and (b) funding (about US$1.0 M) of a local research organizationor governmentalagency for monitoring and evaluation of the project (paras 5.18-5.20).

3.15 The project would provide the following training to WAPDA and PID staff:

(a) about 30 study tours in technicallyadvanced foreign countries with comparable irrigation,subsurface and surface drainage facilities;

(b) on-the-job training of about nine equipment operators by experienceddrainage contractorslocated in the arid and semi-arid irrigated areas of the United States;

(c) on-the-job training for pipe drainage constructioninspectors;

(d) on-the-job training for planners, designers and installers of pipe drainage; and

(e) in-countryworkshops and on-the-job training within the project and under the Khairpur Tile Drainage (Cr. 684-PAK) and SCARP Mardan (Cr. 877-PAK) Projects.

The technical experts identified in para 5.14 would provide guidance in developing and carrying out the above training program.

3.16 Administrationand Engineering. The project would provide the implementationagency with the required staff, and related funding for manag- ing the project as well as for planning, design, and implementationof required works. This cost has been estimated at 10% of the civil works category. - 18 -

Surface Drainage (US$5.0 M)

3.17 The project would provide required civil works (US$2.8 M), equipment (US$0.9 M), administration and engineering (US$0.3 M) and recurrent costs (US$1.0 M) fot the surface drainage component covering the entire 295,000 cca of the project area (see Annex 1, Table 6 for detailed cost estimates).

3.18 Civil Works. These improvements would include: (a) constructing new surface drains; (b) rehabilitating existing drains; and (c) constructing stream gauging stations on drains. All civil works design and construction would be consistent with existing specifications of WAPDA and Punjab's PID, which are satisfactory to IDA.

3.19 The project would construct one new branch drain (3 mi) in Samundri II and 15 new subdrains (56 mi). Of these subdrains, three (19 mi) would be located in Paharang, four (15 mi) in Samundri I, and eight (22 mi) in Samundri II. The project would also provide about 168 structures: 18 inlets, 100 culverts and 50 watercourse syphons.

3.20 The project would also rehabilitate 100 mi of the Samundri Drainage System, covering the following drains: Samundri Branch (21 mi), Awagat Branch (31 mi), and Maduana Branch (48 mi).

3.21 Equipment. The project would provide seven automatic gauging sta- tions. Five stations would be built on the Samundri Drainage System; one on each of the branch drains and two on the main drain. Two stations would be built on the Paharang-Chakbandi drainage system. Data obtained from these automatic gauging stations would enable the project engineers to establish the relationship between rainfall and run-off which would be used for pos- sible modification of the design of the project surface drainage system.

3.22 The project would also provide vehicles and O&M, survey and other equipment required for this component (see Annex 3, Table 2 for complete listing of equipment and procurement schedule).

3.23 Administration and Engineering. The project would provide required staff for management, as well as planning, design, construction and inspec- tion of the surface drainage civil works. These costs are estimated at 10% of the cost of the civil works.

On-Farm Water Management and Extension (US$7.6 M)

3.24 The project would provide the required civil works (US$6.7 M), equip- ment (US$0.2 M), technical assistance and training (US$0.1 M), administration and engineering (US$0.4 M), and recurrent cost (US$0.2 M) for the on-farm water management and extension component that would be implemented in the subsurface drainage area (see Annex 1, Table 7 for detailed cost estimates). Generally, this component would replicate the technical, financial and institutional arrangements in the On-Farm Water Management Project (Cr. 1163-PAK). - 19 -

3.25 Civil Works. The project would provide required materials, precast structures, and earthwork. All civil works would be carried out in accord- ance with technical criteria established in the "On-Farm Water Management National Standards for Practices and Materials," Ministry of Food, Agricul- ture and Cooperatives, GOP, June 1980, which are satisfactory to IDA. Civil works installation would include: watercourse renovation, precision land leveling (PLL), and demonstration plots. All labor required for civil works construction would be contributed by the farmers.

3.26 It is envisioned that the watercourse renovation program would cover all watercourses (about 190) in the subsurface drainage area. Since the project is located in a SGW area, about 30% of the communal watercourse (sarkari khal) would be lined with brick masonry, and the remaining 70% would be rebuilt with clean compacted soil. A few watercourses in the area have been renovated under the Pilot OFWM project, where masonry lining was limited to about 10% of the communal watercourse. Lining of these watercourses would be extended to about 30% under this project. About 28 permanent structures (pucca nuccas) would be installed on each watercourse at major junctions and authorized outlets. In addition, three culverts would be installed along each watercourse, and a buffalo bath on every second watercourse. Water saving from watercourse renovation is estimated at about 25% of the supply delivered at the inlet. 1/ Even though every watercourse in the area would be renovated, the schedule for implementing these improvements would be coordinated with the subsurface pipe installation to:

(a) minimize damage to OFWM works resulting from installation of pipe; and

(b) facilitate operation of pipe through timely introduction of OFWM practices to minimize deep percolation resulting from excessive watercourse conveyance losses.

In addition, a formal Water Users' Association (WUA) would be organized on each chak prior to installing masonry and concrete structures. Scheduling priority for watercourse renovation would be given to those chaks where farmers have indicated a willingness to improve field ditches and apply OFWM practices on their farms.

3.27 OFWM practices on individual farms, including simple irrigation structures, and improvements in field ditches would be encouraged. The project would supply technical assistance for laying out these works. Land leveling equipment, currently owned and operated by the Punjab OFWM Direc- torate, would be made available on a rental basis to the farmers. It is estimated that about 19,000 ac or 25% of the subproject area will receive PLL during the project period.

1/ Based on monitoring and evaluation by WAPDA of similar improvements in the USAID financed Pilot OFWM Project. - 20 -

3.28 A one-acre demonstration plot would be installed in each renovated chak. The purpose of these plots is to demonstrate the effective utilization of the additional water supply resulting from OFWM improvements. Demonstra- tions would include PLL, proper field layout, land preparation and irrigation scheduling, improved cultural practices, and use of non-water i puts. The project would provide technical assistance and Punjab OFWM Directorate would supply equipment without charge for the PLL on this plot. The plots shall have good accessibility and be located on typical farms with average crop yields. In selecting the location, it is important that the farmer associated with the plot has the enthusiasm and resources to carry out the required activities and is willing to cooperate with other farmers in the chak.

3.29 Equipment. The project would provide the vehicles, survey and office equipment required for the additional three field teams and personnel assigned to the O&M section (see Annex 3, Table 2 for complete listing of equipment and procurement schedule).

3.30 Technical Assistance and Training. Technical assistance would be provided in the form of local supervisory consultants (about 90 man-months at about US$1,600 per m/m) to assist Punjab's OFWM Directorate in supervising and monitoring progress and quality of work, preparing reports, processing reimbursement applications, and general budget and fiscal control. Required training would be provided under other projects such as the OFWM Project (Cr. 1163-PAK).

3.31 Administration and Engineering. The project would provide three additional field teams (one for each unit), three water management specialists and 10 field assistants to lay out OFWM works, supervise con- struction, maintain required liaison with the WUAs and conduct the strengthened extension program (paras 5.07 and 5.08). In addition, the project would cover required overhead expenses at the Faisalabad Division and Lahore headquarters of the Punjab OFWM Directorate.

IV. PROJECT COSTS, FINANCING, PROCUREMENT AND DISBURSEMENTS

Cost Estimates

4.01 Total project cost is estimated to be US$101.4 M, with a foreign exchange component of US$42.3 M or 42%. Estimates are based on April 1983 prices and include US$14.1 M in taxes and duties. The cost of civil works is based on (a) recent estimates for installing pipe drains in SCARP Mardan (Cr. 877-PAK) as well as actual costs for installing pipe in the United States; (b) prevailing rates in Punjab for earthwork, masonry structures and items related to constructing and rehabilitating surface drains; and (c) recent actual costs in Pakistan for installing OFWM works. Physical contingencies range from 15% for subsurface drainage construction to 5% for equipment and none for technical assistance staff, and administration and - 21 - engineering. Price contingenciesare estimatedas follows: FY84, 7.8%; FY85, 7%; FY86, 6.5%; and FY87 and FY88, 6% for domestic,and FY84, 7.75%; FY85, 7.25%; FY86, 6.5%; FY87 and 88, 6% for internationalinflation. Estimates are detailed in Annex 1 and summarizedin Table 4.1.

Table 4.1: Cost Summary by Components

Rs M US$ M Component Local Foreign Total Local Foreign Total

1.. Subsurface Drainage 427.9 372.8 800.7 32.9 28.7 61.6 2. Surface Drainage 48.9 16.1 65.0 3.8 1.2 5.0 3. OFWM & Extension 81.9 16.5 98.4 6.3 1.3 7.6 Base Cost 558.7 405.4 964.1 43.0 31.2 74.2

Phys. Contingencies 60.0 42.3 102.3 4.6 3.3 7.9 Price Contingencies 149.2 101.6 250.8 11.5 7.8 19.3 Total Project Cost 767.9 549.3 1,317.2 59.1 42.3 101.4

Financing

4.02 The proposed IDA Credit of SDR 60.3 M (US$65.0 M) would finance about 75% of total project cost net of taxes and duties. It is expected that the United Kingdom and the Netherlandswould cofinance the equivalentof US$9.8 M and US$3.5 M, respectively,which together would cover an additional15% of total project cost, net of taxes and duties. GOP, GOPunjab and farmers would finance the remainingUS$23.1 M equivalent,or about 23% of total project cost, including taxes and duties. Farmers' contributionwould amount to about US$0.7 M relating to the installationof OFWM works (para 4.07).

4.03 Financing for the subsurface and surface drainage components (about US$91.2 M) would be included in the water sector of the Federal Annual Development Program (ADP). Financing for the OFWM and extension component (about US$10.2 M) would be included in Punjab's Provincial ADP. Approval of the project's PC-ls by the Executive Committee of the National Economic Council (ECNEC) and meeting all conditions precedent to the effectivenessof the United Kingdom's and the Dutch funding would be conditions of credit effectiveness. The proposed financing plan by expenditurecategory is in Table 4.2. - 22 -

Table 4.2: Proposed Project Financing (US$M)

Domestic External Total GOP & Expenditure Category Cost Farmers GOPunjab IDA UK Dutch

1. Civil Works 70.2 0.7 11.6 54.3 3.6 - 2. Equipment 16.2 - 6.5 - 6.2 3.5 3. TA & Training 5.5 - - 5.5 - - 4. Adm. & Engineering 5.7 - 0.5 5.2 - - 5. Recurrent Costs 3.8 - 3.8 - - - Total 101.4 0.7 22.4 65.0 9.8 3.5

4.04 As GOP and the Provinces experienced difficulties in prefinancing certain expenditures for project development, a Civil Works Imprest Account at the Federal level (within the State Bank of Pakistan) and subaccounts at the Provincial level were established under the OFWM Project (Cr. 1163-PAK). This system has worked satisfactorily. The proposed project would use the Imprest Account and a subaccount in Punjab Province to finance construction of OFWM works. Promptly after Credit effectiveness, an advance of about Rs 2.75 M from the IDA Credit would be deposited in the Imprest Account for transfer to the Punjab subaccount. Disbursements from the subaccount would follow existing Provincial procedures and would be under the control of the Director General of Punjab's OFWM Directorate, with delegation of operating authority to the Deputy Director located in the Faisalabad Division. Annex 4 gives a detailed description of operating procedures. Assurances have been obtained from GOP and GOPunjab that the operation of the two accounts would be satisfactory to IDA.

Procurement

4.05 Items to be financed by the project include civil works, equipment, materials and technical assistance and training. Procurement under the subsurface and surface drainage components would be carried out by WAPDA, whereas GOPunjab-s OFWM Directorate would be responsible for the OFWM com- ponent (see Annex 3 for Procurement Schedules).

4.06 Procurement of civil works for the subsurface drainage component, including pipe (about US$50.6 M net of taxes and duties), would be by inter- national competitive bidding (ICB) in accordance with IDA guidelines. Con- tractors for installing subsurface drainage facilities would utilize project equipment (see para 5.12 on O&M of such equipment). Procurement of soil amendments (gypsum) would follow WAPDA's local competitive bidding (LCB) procedures, which are satisfactory to IDA.

4.07 Civil works construction for the OFWM and extension component would be in small parcels, seasonal, and involve extensive farmer donated labor. Such construction would not be practical for ICB. Hence, the civil works would be carried out in the following manner: (a) watercourse renovation would be done by government supplied materials and farmer donated labor; and - 23 -

(b) precision land levelling would be done by farmers with equipment rented from Punjab's OFWM Directorate and/or private contractors. Materials for watercourse renovation consist of sand, bricks, cement, and precast struc- tures that are readily available in Pakistan. These materials would be procured by Punjab's OFWM Directorate following provincial procedures that are satisfactory to IDA. The material cost would run about US$30,100 per watercourse or about US$5.7 M for the project.

4.08 Appointment of suitably qualified consultants (US$5.1 M) would be in accordance with principles and procedures described in the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency," as published by the Bank in August 1981.

4.09 Procurement of the nine trenchers (para 3.12; US$3.5 M) would follow procedures agreeable to GOP and the Netherlands. All other equipment (US$6.2 M) and civil works for the surface drainage component (US$3.6 M) would be procured under procedures acceptable to the United Kingdom and GOP. As the equipment is essential for project implementation, the effectiveness of both cofinanciers' funding agreements would be a condition of IDA credit effectiveness (para 4.03).

Disbursements

4.10 Disbursement of the IDA Credit would be for identified items to be so financed, as contrasted to items to be financed by other co-financing organizations, and would amount to:

(a) 85% of the cost of civil works for the subsurface drainage component;

(b) 95% of the cost of civil works materials for the OFWM and extension component;

(c) 100% of the cost of technical assistance and overseas training; and

(d) 90% of the cost of local training and of the salaries and allowances of WAPDA's field personnel and Punjab's OFWM Directorate's field crews and O&M Section associated with the project.

Disbursements under (a) and (c) would be made against full documentation. Disbursements under (b) and (d) would be made against certified statements of expenditures; supporting documents would be retained by the implementing agencies for review by IDA. Reimbursement applications for (b) would also be accompanied by: (i) a statement of transactions on the Imprest subaccount since the previous application, with the balance certified by the State Bank of Pakistan; and (ii) a reconciliation showing that the balance represents the amount deposited in the account at the beginning of the project, less payments awaiting IDA reimbursement. - 24 -

4.11 It is anticipated that the final IDA disbursement for the project would be made by December 31, 1988, about six months after project comple- tion. Estimated IDA disbursements are shown in Annex I, Table 9 and reflect the implementation schedule (see Annex 2 for Implementation Schedule) achieved in comparable international drainage projects as well as that for the OFWM Project (Cr. 1163-PAK).

4.12 The implementing agencies would be subject to normal GOP and GOPunjab expenditure control and auditing procedures. Project accounts would be maintained separately and in a readily identifiable form by these agencies. Accounts would be audited separately from overall accounts by an independent auditor. Assurances have been obtained from GOP and GOPunjab that: (a) all project accounts would be kept separately and audited annually by an inde- pendent auditor satisfactory to IDA; (b) copies of unaudited annual project accounts would be sent to IDA for review not later than six months after the end of each fiscal year, followed by certified copies of the audited accounts and auditor's report within nine months of the end of the fiscal year; and (c) the auditor's report would include a statement that funds disbursed against statements of expenditures had been used for the purposes for which they were provided.

V. PROJECT IMPLEMENTATION AND OPERATION AND MAINTENANCE

5.01 Institutional Arrangements. The project would be implemented by WAPDA in the Federal Ministry of Water and Power and the OFWM Directorate in Punjab's Department of Agriculture. A Project Coordination Committee would be established to coordinate the activities of these two implementing agencies.

5.02 Project Coordination Committee and Project Policy Committee. The project coordination committee would be established to: (a) coordinate the scheduling of the implementing agencies to maximize complementary aspects of the drainage and OFWM components; (b) prepare work plans and proposals for budgetary allocations; (c) select areas to receive subsurface drainage and OFWM improvements; (d) review quarterly and annual progress reports, work plans and programs and make appropriate recommendations to WAPDA, GOPunjab and GOP; and (e) send the documents listed in (d) together with its comments to IDA within 60 days of the close of reporting periods. It is envisioned that this committee would meet at least quarterly. The committee would be chaired by the General Manager (Water) Central, WAPDA, and would include the following members: Chief Engineer, Faisalabad, Punjab Department of Irriga- tion and Power; Chief Engineer, WAPDA (Faisalabad); Project Director, WAPDA; and Director General, OFWM, Punjab Department of Agriculture. A condition of credit effectiveness would be the organization of this project coordination committee by GOP and GOPunjab. GOP and GOPunjab have also given assurance that a Project Policy Committee would be constituted when the first subunit of the project becomes operational. The functions of this committee would include: (a) formulating policies aimed at full participation of project beneficiaries and optimization of O&M activities in the completed project - 25 - units to realize the planned project benefits within the shortest possible time; (b) rationalizing and standardizing O&M criteria and practices, and reviewing the yardsticks for staff and annual O&M budget allocations for efficient management of the project; and (c) reviewing policies governing the levy of water charges and other appropriate financial arrangements peri- odically to reach levels sufficient to cover increasing portions of an agreed stepped-up O&M program. This committee would be chaired by the Additional Chief Secretary, Punjab Department of Planning and Development, and would include the Secretaries of Punjab's Departments of Irrigation and Power, Agriculture, and Finance, and the General Manager (Water) Central, WAPDA as its members.

5.03 WAPDA. Responsibility for implementing the subsurface and surface drainage components would be with WAPDA and more specifically with the General Manager Central WAPDA (see Organizational Chart-Drainage, Plate II). Relating to these two components, WAPDA would be responsible for: (a) recommending to the project committee the areas to receive subsurface drainage and OFWM improvements; (b) preparing plans and detailed designs for construction; (c) executing required civil works and project facilities; (d) preparing specifications and related procurement for civil works, equip- ment, and technical experts; (e) operating and maintaining civil works for the first year following installation; (f) operation and maintenance of equipment; (g) monitoring of project progress and works of improvement to determine their effect in alleviating subsurface and surface drainage problems; (h) maintaining separate accounts for the project; (i) certifying quantity and quality of project works completed; (j) preparing IDA reimburse- ment applications; (k) preparing quarterly and annual progress reports for the project and submitting them to the project coordination committee within 30 days of the close of each reporting period; and (1) preparing an annual work plan by March 1 of each year to serve as the basis of funding in the succeeding year's Federal ADP. In addition, WAPDA would be responsible for preparing a project completion report by December 31, 1988 with input on the OFWM component to be supplied by Punjab's OFWM Directorate (para 5.06).

5.04 WAPDA would establish a project office near Faisalabad under the direction of the Chief Engineer. At the same time a Project Director would be appointed and posting of sanctioned staff would be initiated. Plans and designs would be prepared that would enable the scheduled construction of surface drains for the Samundri II unit in FY84, which would allow installa- tion of the subsurface pipe drains in this unit beginning in FY85. The establishment of the project office would be a condition of credit effectiveness.

5.05 Punjab's Department of Irrigation and Power. During construction, WAPDA would be responsible for O&M of civil works installed as part of the subsurface and surface drainage components. However, it is envisioned that WAPDA, about one year after completing construction of a subunit, would turn over such units for O&M purposes to Punjab's PID. Specifically, PID 's Drainage Division, under the Chief Engineer of the Faisalabad Region, would carry out this responsibility. - 26 -

5.06 Punjab's On-Farm Water Management Directorate. Responsibility for implementing the 0FWMIand extension component would be assigned to Puijab's OFWMDirectorate. These responsibilities would include: (a) planning and design of OFWMprogram, i.e., watercourse renovation, PLL, and water manage- ment measures on watercourse branches and individual farms; (b) laying out, constructing, and inspecting civil works; (c) supervising installation and operation of demonstration plots; (d) supervising O&M of renovated watercour- ses; (e) organizing, registering, assisting and maintaining liaison with formalized Water Users' Associations; (f) procuring required equipment; (g) preparing quarterly and annual progress reports and submitting them to the Project Coordination Committee within 30 days of the close of the report- ing period; (h) preparing by March 1 of each year during the project period an annual work plan as an input into the preparation of the Provincial ADP and for review by the Project Coordination Committee; (i) maintaining separate project accounts; (j) preparing and submitting IDA reimbursement applications, including the verification and certification of completed civil works; (k) submitting required information on the OFWcI and extension com- ponent to WAPDA for timely inclusion in the Project Completion Report; (1) organizing and supervising the application of soil reclamation amendments by the WUAs as specified by WAPDA; and (m) providing assistance to WTJAs and individual farmers on non-water inputs and services, with a view to increas- ing agricultural production.

5.07 Three additional field teams, one in each subproject unit, would be mobilized to plan, design, lay out, construct, and inspect required OFWM works. The three teams would be in the field by September 1, 1983 and would be directly responsible to the Assistant Director, Engineer at Faisalabad (see Organization Chart-OFWM, Plate III). Each field team would consist of eight members, i.e., leader, three water manageme-at officers, and four sub- engineers, plus required support staff.

5.08 The Punjab O&M Section established in the OFWM project (Crn 1163-PAK) would be strengthened in the project area to include three additional water management supervisors (WMS) and 10 field assistants (FA) who would be responsible to the Assistant Director, Agriculture, in Faisalabad. Each WMS would be responsible for a subproject unit and each FA would be responsible for about 19 watercourses. This section would be specifically responlsible for: (a) organizing formal WUAs; (b) serving as liaison between WIJAs and OFW'M Directorate to encourage effective and continued operation of WUAs; (c) monitoring watercourse maintenance and taking appropriate action; (d) assisting farmers and WUAs in planning, implementing and operating simple irrigation measures; (e) scheduling OFWNf field teams to do follow-up work on renovated watercourses, i.e., additional lining, PLL, etc.; (f) promoting water management practices within the chak and on individual farms; (g) supervising work and operations on individual demonstration plots; and (h) supplying assistance and advice on non-water inlputs and services includ- ing application of soil reclamation amendments. The Deputy Director LArea Coordinator) at Faisalabad would be responsible for organizing a discipline approach for carrying out all of the responsibilities outlined above It is envisioned that in the subproject area during the project period all aSiS- tance and advice to farmers on non-water inputs and services vould be by - 27 - personnel assigned to the O&M Section in the OFWM Directorate. However, it is further envisioned that Punjab's Secretary of Agriculture would review this program and determine the appropriateness of reassigning these respon- sibilities to the Extension Service. In the meantime, the Area Coordinator would take the required action to ensure appropriate coordination with the Extension Service.

5.09 Water Users' Associations. Formalized Water Users' Associations would be organized on all chaks with watercourses to be renovated prior to installing masonry lining and structures. These WUAs would be organized under authority of Punjab Ordinance No. V of 1981, dated April 22, 1981. Each WUA would be registered in the Office of the Director General of Pun- jab's OFWM Directorate. The Ordinance provides for: (a) organizational procedures; (b) membership; (c) general assembly of users; (d) voting requirements; (e) resolution of disputes; (f) powers of the association; and (g) election of a board of directors, along with powers and duties of the board. Among other things, WUA's are authorized to install, operate and maintain watercourse improvements, TWs and drainage facilities. Provisions are also made for the WUAs to organize into a Federation of Associations along a distributary or canal.

Operation and Maintenance

5.10 Subsurface and Surface Drainage Components (Civil Works). During construction and for one year following completion of a subunit, WAPDA would be responsible for all O&M of the subsurface and surface drainage components. Thereafter, O&M responsibilities would be transferred to Punjab's PID. It is estimated that the O&M cost would run about Rs 55/ac 1/ for the subsurface and Rs 17/ac 1/ for the surface drainage component. 2/ This would require an allocation in PID's non-development budget rising to about Rs 15.1 M annually in FY89. 3/ Assurance has been obtained from GOPunjab that sufficient fund- ing, in line with the above estimate but modified with operational experience, would be provided to Punjab's PID to ensure adequate maintenance of drainage facilities installed under the project (see paras 6.10, 6.13, 6.14). It is important that the surface drains be well maintained to reduce losses from rain flooding and provide outlets for the pipe drains. In addi- tion, it is imperative that the pipe drains and related pumps be properly operated and maintained to meet drainage requirements and to guard against costly replacement and/or repairs resulting from poor O&M.

1/ FY83 base cost figures.

2/ Surface drainage O&M cost based on WAPDA's estimate of desilting project area drains: Silt volume 10.8 M cft per year, cost of removal Rs 460 per 1,000 cft, total annual cost Rs 4.96 M.

3/ In FY88 prices, including contingencies. - 28 -

5,11 OFWM Component (Civil Works). WUAs would be responsible for the O&M of renovated watercourses. Sanctions are provided in Punjab-s Ordinance No. V of 1981 to ensure maintenance of these facilities. In case of non-compliance with the maintenance requirements, such maintenance can be undertaken by either the WUA and/or OFWM Directorate and the costs assessed by the Provincial Department of Revenue against the non-complying farmer(s) in the form of land arrears. Individual farmers would be responsible for the O&M of field ditches and other improvements such as PLL. Punjab-s OFWM Directorate would supply the necessary technical assistance through the OFWM O&M Section to assist the WUAs and farmers in carrying out these O&M respon- sibilities.

5.12 Vehicle and Equipment Repairs and Service. O&M of transport and construction equipment for the subsurface drainage component utilized by the civil works contractor would be provided by the contractor. All other project procured equipment would be operated and maintained by the agency procuring such equipment.

Implementation Schedule

5.13 Project implementation is planned for five years, FY1984-88 (Annex 2, Implementation Schedule). Major equipment for drainage construction and vehicles would be procured in the first year (see Annex 3, Table 2, Procurement Schedule). Installation of subsurface drainage pipes on about 75,000 ac and construction of related works would be spread out from the second to the fifth year. Improvement of the surface drainage system would be carried out in the first and second years in the Samundri II unit, and during the second to the fourth years in the Samundri I and Paharang units. The Drainage Engineer and supervisory consultants (Annex 1, Tables 4 and 7) would be appointed within two months of Credit effectiveness and all other full-time experts would begin their service within six months of the start of the project, except for the O&M expert who would be appointed by July 1, 1985.

Technical Assistance and Training

5.14 Since installation of pipe subsurface drainage systems is just in its initial stage in Pakistan, this project would provide about 17 man-years of full-time and about 20 man-months of part-time consulting services to strengthen WAPDA's implementation capacity and ensure the quality of works installed as well as to train local technical staff. These consultants would be appointed by WAPDA and would be responsible to the Project Director in Faisalabad (see Terms of Reference for Technical Experts, Annex 5). The professions and length of service for the full-time experts are estimated as follows: - 29 -

Profession Man-years

Drainage Engineer, 1 5.0 Drainage Design Engineer, 1 3.0 Drainage Construction Engineer 1 4.5 Drainage System O&M Engineer, 1 2.5 Soil Specialist, Drainage Investigation, 1 2.0 Total 17.0

5.15 The project provides about 90 man-months of local supervisory con- sultants to further strengthen Punjab's OFWM Directorate and assist in implementing the OFWM component. Appointment would be by Punjab's Secretary of Agriculture with the consultants directly responsible to the Director General OFWM Directorate. Responsibility of the supervisory consultants would be comparable to that assigned to a similar group in the OFWM Project, Cr. 1163-PAK (see Terms of Reference for Supervisory Consultants, Annex 5).

5.16 Assurances have been obtained from GOP that it would employ qualified consultants (Annex 1, Tables 4 and 7) for the assignments described in paras 5.14 and 5.15 in accordance with terms and conditions satisfactory to IDA. The principles and procedures described in the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" (August 1981) would be followed. In addition, assurances have been obtained that GOP would employ the full-time Drainage Engineer and super- visory consultants within two months of Credit effectiveness.

5.17 The project would also provide both overseas and in-country training for WAPDA and PID staff (para 3.15). A total of 30 overseas tours (about 6 tours per year) and in-country training for about 200 technical staff has been provided (Annex 1, Table 5). GOP would consult with IDA by December 31, 1983 on training programs and selection of officials for the overseas training.

Monitoring and Evaluation

5.18 The Monitoring and Evaluation Office (M&E), WAPDA -- either directly or through a local consultant -- would be responsible for monitoring and evaluation of the subsurface and surface drainage components and the evalua- tion of the OFWM component. Monitoring of the OFWM component would be the responsibility of Punjab's OFWM Directorate assisted by the local supervisory consultants. M&E would prepare a work program for this monitoring and evaluation by October 1, 1983 and submit it through the Project Coordination Committee to IDA for review by December 1, 1983. M&E would prepare annual reports on its activities and would submit a final report to the Project Coordination Committee and IDA by December 31, 1988. Assurance has been obtained from GOP, that M&E's Monitoring and Evaluation Unit for this project would be operational by January 1, 1984. - 30 -

5.19 Monitoring. In addition to the general physical and financial aspects of project progress, monitoring should -- selectively -- include the following:

(a) Subsurface Drainage Component. Reasonably accurate measurements of the irrigation delivery to the farm units; continuously measure the subsurface drainage effluent from both individual drains and complete sump systems; measurement of drawdown between drains to determine if the drains are functioning as designed; collection of drain effluent for chemical analyses and evidence of any iron bacteria buildup; and a scheduled reading of the permanent observation wells and piezometric cluster installations to monitor the general watertable fluctua- tions and piezometric head dissipation resulting from the sub- surface drain operation. The observation wells will be pumped dry every six months for the first two years and samples taken of the fresh water flowing back into the well for laboratory sampling to monitor the effect of the subsurface drains on the groundwater quality. After two years, the sampling schedule will be changed to once a year, except in areas of high salt concentrations. Soil samples will be taken throughout the project once a year to check the physical changes in the soil.

(b) Surface Drainage Component. Continuously measure the flow in the drainage system to check whether the new and rehabilitated drains are operating as planned, and collect data from the seven automatic gauging stations to establish the relationship between rainfall and run-off which may be used for subsequent modification in drain design.

(c) On-Farm Management Component. Assess the reduction in water losses in a certain number of renovated watercourses and examine the impact on crop production from the combined effect of lowered groundwater table, improved water management and strengthened extension services.

5.20 Evaluation. Evaluation would concentrate on assessing the impact of the project, especially regarding: (a) the effect on lowering the groundwater table of the completed subsurface and surface drainage system; (b) the benefits derived from the improvements, i.e., subsurface and surface drainage; and (c) the effect on crop production of the renovated watercourses distributed over the entire subsurface drainage area. Agricultural produc- tion data would be collected before and after the improvements, and sampling areas would be selected for items (b) and (c). Analysis of this data/information would be useful in improving the design of future drainage projects in Pakistan. - 31 -

VI. PRODUCTION, MARKETING AND PRICES, FARM INCOME AND COST RECOVERY

Agricultural Impact

6.01 Wheat, sugarcane, Kharif fodder (green maize) and Rabi fodder (ber- seem) are used as proxies for the more diversified cropping pattern 1/ found in the project area. In the surface drainage area (220,000 ac), the project would have only a relatively modest impact on agricultural production through the reduction of losses due to rain flooding in the Kharif season (sugarcane and fodder). In the subsurface drainage area (75,000 ac), it would sig- nificantly increase crop production by eliminating waterlogging and soil degradation, improving water management and strengthening extension. Yields of wheat, sugarcane, maize fodder and berseem are estimated to rise from 0.6, 10.6, 7.9 and 12.5 tons per acre at present to 1.2, 21.1, 15.8 and 24.9 tons per acre at full development (project year 10 and later). 2/ "Without the project," production of all four proxy crops is assumed to decline to about half their present level by project year 30 as a result of a 20% reduction in farm area and yield decreases of about one-third. 3/ This decline in produc- tion is projected on the basis of a further rise in the water table and an increase in soil salinity and sodicity. In some areas, this situation would lead to a deterioration of the soils due to problematic sodicity (paras 2.10, 3.06). Reclamation of such soils may not be economically feasible. Total incremental production would increase as shown in Table 6.1 below.

1/ See Table 2.7.

2/ For comparison, RAP's Leading Farmer Survey (1975) showed yields of wheat and sugarcane of 1.3 and 32.5 tons per acre, respectively.

3/ See Annex 6, Tables 2 and 3. - 32 -

Table 6.1: Incremental Crop Production (In '000 metric tons)

PY 10 PY 30 Present With Without Incr. With Without Incr.

Wheat /a 25.6 53.1 20.7 32.4 53.1 12.9 40.2 Sugarcane /b 855.9 982.7 697.8 284.9 772.0 428.8 343.2 Kharif Fodder /b 302.6 350.8 251.6 99.2 272.6 151.7 120.9 Rabi Fodder /a 149.6 299.3 123.6 175.7 299.3 75.3 224.0

/a Subsurface drainage area only. 7T Subsurface and surface drainage area..

Source: Annex 6, Table 1.

Marketing and Prices

6.02 Marketing and processing facilities in the project area are adequate to handle the project-s incremental inputs and outputs. The area is well served by local roads and-linked with Faisalabad -- one of the major agricul- tural commodity markets in Punjab -- and the wholesale markets of Samundri, Gojra and Jaranwala. Faisalabad is connected with Lahore, Karachi and other principal cities by railway and fairly good roads. Under the Government's expansion program, the existing wheat storage capacity in Faisalabad Division would increase from 182,000 tons to 204,000 tons by FY83. For rice an addi- tional capacity of 10,000 tons would be provided.

6.03 Following two good harvests in FY81 and FY82, Pakistan has, at least for the time being, achieved self-sufficiency in wheat, and for the first time a token 50,000 tons were exported. 1/ Based on the Five Year Plan target of a daily per capita availability of 340 g of wheat and the estimated population growth rate, 2/ wheat consumption requirements would increase from 10.8 million tons in FY82 to about 12.7 million tons by FY88. Currently, the project area is a net importer of foodgrains and most wheat produced is consumed on the farm. Farmers with medium and large holdings, however, sell their surplus wheat (directly or through middlemen) to Government procurement centers and private wholesalers/millers. Government procured wheat is sold at the official price to authorized mills to produce flour for sale through the subsidized ration system. To stabilize market prices between harvests, the Government also sells wheat to private mills at lower than free market prices with the condition that they sell flour at an agreed price.

1/ See Chapter VII, para 7.02, for assumptions regarding the future.

2/ Assuming 3% in FY82, 2.9% in FY83 and 2.7% thereafter. - 33 -

6.04 Depending on the ratio of the price of unrefined brown sugar and the official procurementprice of sugarcane,25-40% of the total cane production is sold to sugar mills, while the balance, net of seed and chewing require- ments, is absorbed by cottage industries. Farmers within authorizedmill zones are obliged by law to sell 85% of their cane to sugar mills. While the productionof refined sugar is purchased by the ProvincialFood Departmentat the official price for sale through the ration system, there is no price support for unrefined brown sugar.

6.05 Following a nearly 30% increase in procurementprices in FY81 (from Rs 7 to Rs 9 per maund in Punjab), cane production increased by 18% in FY81 and 13% in FY82, and a much higher percentage than in earlier years was sold to mills, resulting in a record sugar production -- about 1.3 million tons -- in FY82. Export prospects are not bright because of low internationalprices and the high cost of production in Pakistan due to poor cane yields and a low sugar content in the cane. Incrementalproduction would be absorbed by increased domestic demand, however. Based on GOP's target of a per capita availabilityof 21 kg of unrefined and 11.5 kg of refined sugar per year, cane productionrequirements would rise from 36.6 million tons in FY82 to about 38 million tons in FY88.

6.06 Currently, the area produces less fodder than is required to properly feed its livestock population;incremental fodder productionshould therefore be absorbed without difficulty. Other project outputs -- rice, cotton, oil seeds -- would also find a ready market.

6.07 Prices of all major agriculturalinputs and outputs are influencedby Government intervention-- import/exportcontrols, taxes, producer/consumer subsidies,support/procurement measures. Past pricing policies emphasized consumer subsidies through fixing procurement prices at levels below interna- tional prices, while attempting to compensateproducers by subsidizingfer- tilizer and other agriculturalinputs. However, with the National Agricul- tural Policy announced in February 1980, a new pattern has emerged. Prices of key agriculturaloutputs and inputs are periodicallyadjusted in the light of prevailing circumstances(world market prices, domestic needs) to provide appropriate incentivesto producers while reducing input subsidies. GOP is committed to align the prices of tradable agriculturalinputs and outputs with internationalprices in a carefully phased manner. Measures taken so far include: (a) a 50% increase in fertilizer retail prices in February 1980, followed by further increases of about 10% in March 1982 and 15% in October 1982 as part of an effort to eliminate the fertilizersubsidy by the end of FY85; (b) privatizationof pesticide imports and distribution,and elimination of pesticide subsidies in Punjab and Sind from FY81 and in NWFP and Baluchistan by 1983; (c) increases in procurementprices of all major crops in FY81, and further increases in cotton, rice and wheat prices in FY82; and (d) establishmentof an AgriculturalPrices Commission in March 1981 to advise on price and subsidy policies. Despite its still incomplete staffing, the Commissionhas played a valuable role in strengtheningdecision making in this area. - 34 -

Farm Income

6.08 While farmers in the surface drainage area would see their Kharif crop losses from rain flooding halved with the project, it is not assumed that there would be any changes in farming practices. In contrast, the improvements in the subsurface drainage area would lead benefiting farmers to increase input use and better maintain their farms, resulting in a doub- ling of the present very low yields and a corresponding increase in incomes. On an average size farm of about 9 ac, net crop production value (in constant FY83 prices) is estimated to rise from Rs 6,840 at present to Rs 18,890 (+ 175%) at full development, whereas without the project there would be a decline to Rs 4,860 by project year 10 and to Rs 2,690 by year 30. Net production value per man-day would rise from Rs 30 to Rs 90 with the project, and net production value per capita from Rs 1,020 at present to Rs 2,820 at full development. Again, a substantial decline is projected without the project. Details are given in Table 6.2.

6.09 The "with project" estimates would enable benefiting farmers in the subsurface drainage area to properly remunerate family labor as well as contribute to project cost recovery through increased water charges or other charges the Government plans to introduce (see below). An annual drainage charge of Rs 720 per farm (in FY83 prices) would cover the full O&M require- ments in this area.

Cost Recovery

6.10 Pakistan-s surface irrigation and drainage system has been deteriorating due essentially to inadequate funding for operation and main- tenance (O&M), and Punjab is no exception. Under the Irrigation Systems Rehabilitation Project (Cr. 1239-PAK), GOP and GOPunjab agreed to increase annual budgetary allocations for O&M in real terms over the coming years in order to meet estimated requirements (or appropriately revised figures) by FY85. For Punjab, these requirements were projected to be Rs 535 million (in constant 1981 prices). Estimated O&M funding for the surface and subsur- face components of this project (about Rs 15.1 million annually from FY89 -- see para 5.10) would be part of these requirements.

6.11 The agreement to substantially increase allocations for O&M of the surface irrigation and drainage system was reaffirmed under the Structural Adjustment Program (Ln. 2166-PAk and Cr. 1255-PAK). In addition, GOP agreed to improve the performance of public tubewells. In the short term, alloca- tions would be increased to meet their full O&M requirements. In the longer term, the Government intends to reduce the budgetary burden of tubewell O&MT by promoting private tubewell development in all usable groundwater areas where this is compatible with drainage requirements, and by phasing out or divesting public tubewells, based on the results of a SCARP Transition project preparation study under way with the help of the UNDP and the Bank (para 1.13). - 35 -

Table 6.2: Summary Farm Budgets, Subsurface Drainage Area (Average Size Farm of 9 ac; Constant FY83 Prices)

PYlO PY30 Present With Without With Without

Cropped Area (ac) 10.1 10.3 9.4 10.3 8.0

Gross Production Value (Rs) 13,620 27,590 11,130 27,590 6,830

Input Costs (Rs) 6,780 8,700 6,270 8,700 4,140 Of which: Water Charges ( 300) ( 310) ( 280) ( 310) ( 230)

Net Production Value (Rs) 6,840 18,890 4,860 18,890 2,690

Of which: Wheat (2,120) ( 6,260) ( 1,440) ( 6,260) ( 850) Sugarcane (2,300) ( 7,310) ( 1,530) ( 7,3iO) ( 790) Maize Fodder (1,010) ( 2,170) ( 790) ( 2,170) ( 430) Berseem (1,410) ( 3,150) ( 1,100) ( 3,150) ( 620)

Net Production Value (Rs) - per Cropped Acre 680 1,830 520 1,830 340 - per Man-day /a 30 90 25 90 15 - per Capita /b 1,020 2,820 725 2,820 400

/a Including family labor. lb Average family size is 6.7 persons.

Source: Annex 6, Tables 2 and 3.

6.12 To improve the recovery of O&M expenditures on the irrigation system, GOPunjab agreed, first under the SCARP VI Project (Cr. 754-PAK) and recently under the Irrigation Systems Rehabilitation Project, to raise water charges periodically (subject to the necessary legislative approval) or make other appropriate arrangements to achieve full cost recovery by mid-1990.

6.13 No new conditionality on cost recovery is included in this project. However, the issue of recovery of drainage expenditures is one of increasing relevance in Pakistan in view of expected needs for major drainage invest- ment. This issue will be addressed as part of a proposed second Structural Adjustment Program tentatively scheduled for FY84. GOP is currently con- sidering a number of alternatives, among them a betterment charge to be paid by beneficiaries of irrigation and drainage investments. Reassurance has been obtained from GOP and GOPunjab that water charges and/or other appropriate arrangements would be periodically reviewed to reach levels sufficient to cover increasing portions of an agreed stepped-up O&M program in line with existing covenants in IDA financed projects (SCARP VI Project - Cr. 754-PAK; Irrigation Systems Rehabilitation Project - Cr. 1239-PAK; and Structural Adjustment Program - Ln. 2166-PAK and Cr. 1255-PAK). - 36 -

6.14 Punjab's Non-Development Budget (NDB) allocations for O&M of the surface irrigation and drainage system (including establishment) have been increased by two-thirds since FY81, to reach Rs 554.3 million in FY83. This figure exceeds the target set under the Irrigation Systems Rehabilitation Project for this year. 1/ The NDB allocation for tubewell O&M increased about 12% between FY81 and FY83, to reach Rs 396.4 million. Irtigation water charges in Punjab have been raised 75% since mid-1978. No increase is included in the FY83 budget. Nevertheless, estimated revenue from water charges would again cover about 70% of O&M expenditures 2/ in FY83. Details are shown in Table 6.3.

Table 6.3: GOPunjab NDB Irrigation O&M Expenditure and Water Charges (Rs million)

Estab- Water Year lishment Canals /a TWs Total Charges %

1979-80 208.2 85.6 304.0 597.8 417.7 70 1980-81 239.7 90.6 352.9 683.2 473.0 69 1981-82 305.8 125.9 /b 394.6 826.3 /b 593.1 72 1982-83 346.4 207.9 396.4 951.1 660.8 /c 69

/a Includes allocations for canals, surface drains and flood protection works. lb Excludes exceptional GOP grant of Rs 100 M. /c Budget; all other data are revised budget figures.

Source: GOPunjab, Department of Irrigation.

VII. BENEFITS AND JUSTIFICATION

7.01 The project would raise agricultural production and incomes through a package of subsurface drainage, surface drainage, improved OFWM practices and extension on about 75,000 ac, and would reduce crop and property losses caused by storm flooding through improved surface drainage in the entire project area (295,000 ac). About 32,070 farm families, or about 215,000 people, would directly benefit from the project. Their present per capita incomes of US$90-120 equivalent compare with an estimated rural poverty income level of US$140 (1981). Incremental farm employment would increase from 660,000 man-days in project year 10 (equivalent to about 2,750 full-time jobs) to 1.32 million man-days in project year 30 (about 5,500 full-time

1/ Rs 415 million in 1981 prices, or about Rs 492 million in 1983 prices.

2/ Including tubewell O&M. - 37 - jobs). The project would also have a beneficial impact on the environmentby reducing the breeding areas of mosquitoes.

7.02 The project's economic rate of return (IRR) is estimated to be about 15%. At a discount rate of 10%, the assumed opportunitycost of capital in Pakistan, the project-s economic net present value is Rs 314.7 million (US$24.2 million). Economic costs and benefits have been valued in constant spring 1983 terms. The main assumptionsunderlying the rate of return calculationsare as follows:

(a) Project Life: Thirty years, with full development in the 75,000 ac subsurfacedrainage area reached in project year 10. (b) Prices: Farm gate prices for internationallytraded goods are based on the latest (December 1982) IBRD commodity price forecasts,1/ while those for non-traded goods are based on domestic financial prices. Pakistan is expected to become self-sufficientin wheat by the mid-1980's, and a net exporter by the end of the decade. Therefore, an import parity price for wheat is used through 1989, and an export parity price for 1990 and later years. Local prices and local price componentshave been translatedinto border Rupees using a standard conversion factor of 0.9.

(c) Project Costs: Estimates are incremental,net of duties and taxes, and allowances for inflation, but include physical contin- gencies (para 4.01). The full cost of all project components has been taken into account. The residual value (25%) of equip- ment having a longer useful life than the project implementation period has been deducted from the cost stream in project year 6. Crop production costs have been adjusted to reflect realistically the staggered occurrence of costs and resultingbenefits. Local cost components have been expressed in border Rupees using the standard conversion factor of 0.9.

(d) Project Benefits: Benefits consist of incrementalcrop produc- tion and avoided non-agriculturallosses from storm flooding. Wheat, sugarcane, Kharif and Rabi fodder (green maize and berseem, respectively)are used as proxies for the more diversified cropping pattern found in the project area. "Without project" production is assumed to fall as a result of waterloggingand soil degradation to about 50% of present levels by project year 30. "With the project", production in the subsurface drainage area is estimated to reach about double the present level at full development. The yield build-up in this area would take about five years on each parcel of improved land.

1/ See Annex 6, Tables 5-7. - 38 -

Benefits in the surface drainage area "with the project" are estimated to be about 5% of "without project" crop production in the Kharif season, plus half of the average non-agricultural losses from flooding.

7.03 With the measures incorporated in the design of the project -- selection criteria, specialized drainage construction equipment, substantial technical assistance and training, strengthened extension and on-farm water management program -- no unusual risks are foreseen regarding its implementa- tion. However, its success would depend on the coordinated and timely execu- tion of all three components, and delays in any one of them would reduce expected benefits. The sensitivity of the project to changes in benefits and costs has been tested using switching values as a measure. 1/ The results show that total costs could rise by about 34% or total benefits fall by about 25% without making the project unacceptable, i.e., reducing the rate of return below 10%. Further tests show that with benefits down 20% and costs up 10%, the IRR would drop to 9.6%. With benefits lagged one year, the rate of return would still be 12.5%, while a two-year lag would reduce it to about 11%. Although some changes in costs and benefits from the assumed values cannot be excluded (with downward changes in benefits having a greater prob- ability than upward changes in costs), it is not expected that they would be large enough to make the project economically unacceptable. A table showing economic benefits and costs is in Annex 6. 2/

VIII. AGREEMENTS REACHED

8.01 Assurances have been obtained from GOP and/or GOPunjab that:

(a) designs and specifications for all civil works would be satis- factory to IDA (para 3.07; Sec. 3.04 DCA);

(b) operation of the civil works imprest account and subaccount would be satisfactory to IDA (para 4.04; Sec. 2.02(b) DCA);

1/ The switching value is the value of the variable tested for which the projects net present value is zero, or for which the project-s economic rate of return (IRR) is equal to the opportunity cost of capital (the discount rate).

2/ A sizeable part of the project area is expected to be free of the upward groundwater pressures found in the sample area (para 3.06) on which project calculations have been based. In this case, it would be possible to provide subsurface drainage to a larger area than the 75,000 acres now foreseen, and project benefits would increase correspondingly. - 39 -

(c) suitably qualified consultants would be appointed in accordance with terms and conditions satisfactory to IDA (para 4.08 and 5.16; Sec. 3.03 DCA);

(d) all project accounts would be kept separately and audited annually by an independent auditor satisfactory to IDA; copies of unaudited annual project accounts would be sent to IDA for review not later than six months after the end of each fiscal year, followed by certified copies of the audited accounts and auditor's report within nine months of the end of the fiscal year (para 4.12; Sec. 4.01 DCA);

(e) sufficient funding based upon estimated and agreed targets would be provided to Punjab's PID to ensure the adequate main- tenance of installed drainage facilities (para 5.10; Sec. 2.01(d) Punj. Ag.);

(f) the full-time Drainage Engineer and supervisory consultants would be employed within two months of Credit effectiveness (para 5.16; Sec. 3.03(b) DCA);

(g) a monitoring and evaluation unit for this project would be operational by January 1, 1984 (para 5.18; Sec. 2.07(b) WAPDA Ag.); and

(h) water charges and/or other appropriate financial arrangements would be periodically reviewed to reach levels sufficient to cover increasing portions of an agreed stepped-up O&M program so as to achieve full recovery of such costs in line with existing covenants in IDA-financed projects (SCARP VI - Cr. 754-PAK; Irrigation Systems Rehabilitation Project - Cr. 1239-PAK; and Structural Adjustment Program - Ln. 2166 and Cr. 1255-PAK) (para 6.13; Sec. 3.03 Punj. Ag.).

8.02 Conditions of credit effectiveness (Sec. 6.01 DCA) would be: (a) approval of the PC-Is for the project by the Executive Committee of the National Economic Council (para 4.03); (b) meeting all conditions precedent to the effectiveness of the United Kingdom's and the Dutch funding (para 4.03); (c) organization of the project coordination committee (para 5.02); and (d) establishment of the project office (para 5.04).

8.03 With the above assurances, the project would be suitable for an IDA credit of SDR 60.3 M (US$65.0 M) on standard terms. The borrower would be the Islamic Republic of Pakistan. PAKISTAN FOURTHDRAINAGE PROJECT Table1. SUBSURFACEDRAINAGE, CIVIL WORKS Detailed CostTable (Rs '000)

Duantita BaseCosts Phg. ------Cont. For. Gross Sumsarv Unit 1 2 3 4 5 Total Unit Cost 1 2 3 4 5 Total Rate Exch.Tax Rate Account

I. INVESTMENTCOSTS

A. CIVILWORKS CONSTRUCTION

Collector Drains (225mi) ac - 15,000 20,000 20,000 20000 75,000 1.595 - 23,931,5 31,908,6 31,908.6 31,908.6 119,657.3 0.15 0.43 0.19 CU Lateral Drains (1,383 mi) ar - 15,000 20,000 20,000 20,000 75,000 3.415 - 51,225.4 68,300.5 68,300.5 68,300.5 256,126.8 0.15 0.43 0.15 CU Manholes(2,640) ac - 15,000 20,000 20,000 20,000 75,000 0.322 - 4,829.9 6,439.9 6,439.9 6,439.9 24,149.5 0.15 0.43 0 CU Subdrains(78 mi) ac - 15,000 20,000 20,000 20,000 75,000 0.29 - 4,355.8 5,807.8 5,807.8 5,807.8 21,779.1 0.15 0.43 0 Cl Sumps,Outtall (251sumPs) ac - 15,000 20900020,000 20,000 75,000 0.486 - 7,293.5 9,724.6 9,724.6 9,724.6 36,467.4 0.15 0.43 0 CJ Electrification ac - 15,000 20,000 20,000 20,000 75,000 0.233 - 3,500.9 4,667.8 4,667.8 4,667.8 17,504.3 0.15 0.43 0 CW CaspFacilities /a LS ------14,046.7 - - - - 14,046.7 0.15 0.43 0 Ci Roadsand Infrastructure ac - 25,000 25,000 25,000 - 75,000 0.184 - 4,592.2 4,592.2 4,592.2 - 13,776.6 0.15 0.43 0 CU

Sub-TotalCIVIL WORKSCONSTRUCTION 14,046.7 99,729.1 131,441.4 131,441.4 126,849.2 503,507.7 ° B. ADMINISTRATIONANDENGINEERING ------1,404.7 9,972.9 13,144.1 13,144.1 12,684.9 50,350.8 0 0.2 0 ADME C. CROPCOMPENSATION ac - 15,000 20,000 20,000 20,000 75,000 0.032 - 477.0 636.0 636.0 636.0 2,385.0 0.1 0 0 CH D. SOILAMENDMENTS (GupsuO) ton - 5,000 6,667 6,667 6,666 25,000 0.192 - 960.4 1,280.7 1,280.7 1,280.5 4,802.2 0.1 0.15 0 CU

Total INVESTMENTCOSTS 15,451.4 111,139.4 146,502.2 146,502.2 141,450.6 5614045.7

II. RECURRENTCOSTS

A. CIVILWORKS OIM ac - - 15,000 35,000 55,000 105,000 0.06 - - 898.4 2,096.3 3,294.2 6,288.9 0.1 0.2 0 CUO B.EQUIPMENT REPAIR AND MAINTENANCE LS ------885.4 1,328.1 29213.5 399Y.O 3194l,7 11b067,70.1 0,5 0.44 EN

Total RECURRENTCOSTS 885.4 19328.1 3P112.0 5,195.3 6,835.9 17,356.6

TotalBASELINE COSTS 16,336.8 112,467.5 149,614.1 151,697.4 148,286.4 578,402.3

la Office buildings, maintenancebuildings, storaseyards.

April25, 1983 17'05 - 41 -

PAKISTAN ANNEX FOURTHDRAINAGE PROJECT Table 2. SUBSURFACEDRAINAGE, ESUIPMENT AND VEHICLES Detailed Cost Table (Rs '000)

guantita BaseCosts Phy, ------Cont. For, Gross Summiary Unit 1 2 3 4 5 Total Unit Cost 1 2 3 4 5 Total Rate Exch, Tax Rate Account

1. iNVESTMENTCOSTS

A. CONSTRUCTIONEQUIPMENT

Modified Trencher, Crawler, 325 hp, 12 ft Depth Laser Control Assembly,with 20 in Shield and Gravel HoPper No, 3 - - - - 3 5,676 l7?027.7 - - - - 17,027.7 0.05 0.67 0.33 CEO Trencher, Crawler, 325 hp, 12 ft Depth Laser Control Assembly,with 16 in Shield and Gravel Hopper No, 6 - - - - 6 5,177 31,064.6 - - - - 31,064.6 0,05 0.67 0.33 CEO Gravel Trailer and Elevator No. 20 - - - - 20 436 8,728.7 - - - - 8,728.7 0.05 0.6 0,4 CEO Tractor, Crauler, 105 hp No, - - 9 1,072 9,650.4 - - - - 9,650.4 0.05 0.6 0.4 CEO Backhoe/Loader,Crawler, 1.5 cu gd No. 4 - - - - 4 912 3,646.6 - - - - 3,646.6 0.05 0.6 0.4 CEO Motor Grader, 125 hp No. 3 - - - - 3 1,646 4,938.2 - - - - 4,938.2 0.05 0.6 0.4 CEO Loader, Crawler, Front End or Side No, 3 - - - - 3 1,396 4,187.1 - - - - 4,187.1 0.05 0.6 0.4 CEO Tractor, Crawler, 105 hp, with Blade No. 3 - - - - 3 1,108 3,323.1 - - - - 3,323.1 0.05 0.6 0.4 CEO Portable ConcreteMixer, 10 cu ft No. 6 - - - - 6 222 1,329.3 - - - - 1,329.3 0.05 0.6 0.4 CEO DewaterinsPump No. 8 - - - - 8 30 239,3 - - - - 239.3 0.05 0.6 0.4 CEO WheelTwpe Front EndLoader No, 3 - - - - 3 1,052 3,157.0 - - - - 3,157.0 0.05 0.6 0.4 CEO Drain TubeCleaning Hiachine No, 3 - - - - 3 279 837.4 - - - - 837.4 0.05 0.6 0.4 CEO Portable AirCompressor with PneumaticTools No. 2 - 2 23 46.5 - - - - 46.5 0.05 0.6 0,4 CEO SheepfootRoller (10 T),with Vibrator No. 3 - 3 507 1,522,0 - - - - 1,522.0 0.05 0.6 0.4 CEO SpareParts LS ------8,969.8 3,363.7 3,363.7 3,363.7 3,363.7 22,424.4 0.05 0.6 0.4 CEO

Sub-Total CONSTRUCTIONEGUIPMENT 98,667.6 3,363.7 3i363.7 3,363.7 3,363.7 112,122.2 D. PUMPSETS

SumpPumps and PowerUnits (incl. controls) No. - 45 60 60 60 225 11 - 479.8 639.7 639.7 639.7 2,398.9 0.05 0.75 0 PMP PumPSets (incl. controls) forSecondary Stations on Subdrains No, - 5 7 7 7 26 24 - 110.3 165.7 165.7 165.7 615.4 0.05 0.75 0 PMP Spare Parts LS ------301.4 150.7 150.7 150.7 753.6 0.05 0,75 0 PHP

Sub-Total PUMPSETS - 899,6 956.1 956.1 956.1 3.767.9 C. TRANSPORTVEHICLES

Duap Truck, 6 cu yd No. 9 - - - 9 558 59024.6 - - - - 5,024.6 0.05 0.46 0.54 VEH 4x4 King Cab Pick-up, 3/4 T No. 9 - - - - 9 434 3,908.0 - - - - 3,908.0 0.05 0.46 0,54 VEH Low BedTractor Trailer, 30 T No, 3 - - - - 3 2,348 7,045.0 - - - - 7,045.0 0.05 0.6R 0.32 VEH Truck with Weldins Accessories No, 3 - - - - 3 1,473 4,419.8 - - - - 4,419.8 0.05 0.46 0.54 VEH Water Tan$kTruck, 1200 sal No. 3 - - - - 3 698 2,093.6 - - - - 2,093.6 0.05 0.46 0.54 VEH 4x4 4-PassenserField Car /a No. 10 - - - - 10 244 2,437.0 - - - - 2,437.0 0.05 0.46 0.54 VEH 4x4 6-12 PassenserCarrgall /b No, 7 - - - - 7 377 2,636.3 - - - - 2,636.3 0.05 0.46 0.54 VEH Fuel TankTruck, 1000 sal No. 3 - - - - 3 1,340 4,021.0 - - - - 4,021.0 0.05 0.46 0.54 VEH Truck for PVCPipe Transport No, 3 - - - - 3 426 1,279.4 - - - - 1,279.4 0.05 0.68 0.32 VEH MaintenanceTruck No. 3 - - - - 3 724 2,173.3 - - - - 2,173.3 0.05 0.46 0.54 VEH 4x4 CraneTruck forPumP Maintenance No. 3 - - - - 3 579 1,738.0 - - - - 1,738.0 0.05 0.46 0.54 VEH 4x4Station Wason No. 2 - - - - 2 348 695.6 - - - - 695.6 0,05 0.46 0.54 VEH SpareParts LS … - … … … …3,747.2 1,405.2 1,405.2 1,405.221405.2 9,367.9 0.05 0.46 0.54 VEH

Sub-Total TRANSPORTVEHICLES 41,218.7 1,405.2 1,405.2 1,405.2 1,405.2 46,839.4

Total INVESTMENTCOSTS 139,886.35,668.4 50725.05,725.0 50725.0 162,729.6

Total BASELINECOSTS 139,886.35,668.4 5,725.0 5,725.0 5,725.0 162,729.6

/a Eight cars for part-time and full-tise technical experts. /b Three each for survew and drainage investigation teams, one standby.

April25, 1983 17105 I 0c------0- I -04~--

I 0Co -0410 - -n------I C-I C--In S- C--c-In-I-n-

I 0 -C - C-- c--cc-c--I--n -- In--mac-n c-n-- I I-- - 4- - - l-- - -0 I- -- ~- CC C- -414I I CCCo 14 InCOCIW I .CC.4 O C I.O -CC.- .OCC .0 . . I C..cC.. C. 0.CCO.C .CC .3C I I.

Co 0- In. ..-. .. 0 . . I.CI . .0 o.In .-. .I .O . . . .S14nfI I 0 nI 0. nC- CInC n

I Co Co Co Ccc,m c-In C- - -In----- In-O 0C- - - -, In- Ic-n-l -- - f -I c-- -- 04 C-- -0 -10 01Co Co Co C~In04A 44--tIn ZC6~ mIn-l - -0 4-104-111-CC- Inc- -i- C C 1 0 - I -1C ICo I - A In In ~~-Co c-- --Inc - - 404 WIn Cc;- a-Ill I-4CIC-- n ~1 0 Inn Co U Ic~ ~-o---- -c-we- - A - -t 0- Ic-I oo C 4-1 I 0 Cl 0-4 - -- - -00 In - ---- 0 40 -0 - In 0-410-In - -0- -o-c-c-In

I Co-, CO C c-c-C In OC- In C--no t < c-I zt Inc-I In 004-I- -

I Co c- T, ~ ~0.-0-

guartitr BaseCosts ------_-. ------ont. Fir. Gross Summar Unit 1 2 3 4 9 Tstal Unit Cost 2 7 5 Total rate E:ch. Tao.Rate Account

I. INvESTMENTCOSTS

A. FULL-TlMETECHNICAL ASSISTANCE t 1. Salaries andBenefits a

DrazinaeEngineer Eooeraenced in Drainageof Irriated Land; Staf Year ! I I I 1 51997.t72 1.897.6 l.A'. l.e97.69 1.897.6l,892.6 0,488.2 0 0.A C rTA Construction Engarieer E:perienced in Drainageof Irrigated Lands St;ff Tear °.5 1 I 4.5 1.581.36 '90." 1.581,41.581.4 1.581.4 1.581.4 7,111.1 0 TA8 0 FTA DesignEnsineer E::eersenced in lPsion ofDrainage Sustems for Irrigated Lands Stoft Year I I I - - 0 1.552.3 1.5S1.4 1.581.4 l.581.4 - - 4.744.1 0 0.8 0 FTA EngineerEroerienced in OtM of Drainage Destees Staff Year - - I 1 0.5 2'5 1,991,36 - - 1.581.4TAS.4 '90.'3.°55.4 n 0.8 I FTA Soil Scientist Trained in DrainageInvestidations St2ff Year I I 2 1r581.36 1,581.41.581,4 - - - 3.162.7 0 0.0 FTA

Sub-TotalSalaries andBenefits la . 585.1.0 6-641.7 6.641.75,060.4 4,269.728.464.5 2. OtherExrenses

Air Travel (iecl. homeleave) lb RoundTrir 8 14 4 8 10 44 39.S79 909.0 5iG.3 159,5 319.0 398,8 1,754.t 0.1 1 0 FTA Hous"nAic AnnualRent 8.5 4 4 3 2.5 1' 128.345 449.2 513.4 510.4 385.0 320.0 2,181.9 0.1 0.? 0 FTA In-country Travel /d AnnualAllowance 0.5 4 4 7 2.5 1' 20,102 80.9 92.4 92,4 69.3 57,8 392.' 0.1 8.2 D FTR Miscellaneous AnnualAllowance 3.5 4 4 3 2.5 17 23.102 90.9 92.4 92.4 69.0 57,8 392.7 0.1 0.2 0 FTA Vehicle Repaorand Maintenance/e ------47.0 47.6 47.t 4.6 47.6 238.0 0.1 0.46 0 FTA Fuel andOil /f Oreratiunfnonth 10 10In tO 10 50 0.507 65.0 65.0 - 650 65.0 325.2 0.1 0.5 0 FTA

Sub-TotalOther E:ePenses 1042.9 i.36U.1 0-o7 95.3 Q47.8 5.285.1

Sub-TotalFULL-TIME TECHNICAL ASSISTANCE ^,893,6 P.010,S 7.62,1 6.015.7 5-21'.5 33,749.6 B. PART-TSIETECHNICAL ASSISTANCE

1. Salaries andBenefits Staff D2Y 100 100 100 100 100 500 3.69 36A.0 368.A 369,0 36°.0 369.0 1944.9 0 08 0 FTA 2. OtherExpenses

Air Travel /4 RoundTrri 5 5 5 25 3-.87B 100.4 !99.4 199.4 199.4 199,4 996,9 0.1 1 0 FTA Housing las 75 '5 '5 '5 7 5 1.091 91.8 91.8 01,9 81.8 81.8 409.1 0.1 0.2 0 FTA In-cosntro Travel Dan '5 '5 79 ' '55 3'5 0.481 DAl 36.1 3.136. 16.1 180.5 0,1 0.2 0 FTA Miscellaneous D3a '5 '5 'S 75 ' 3'5 0.481 30.1 376.1 iA.1 36.1 36.1 180.5 0.1 0.2 0 Fn VehicleRepair andMaintenance h ------97.6 47,r 41,L 4'S6 47,1 239.0 0.1 0.46 0 FTA Fueland Oil /i Oseratin fornth 10 I0 10 10 lD 50 6.503 65.0 65.0 oS.0 6S.0 65.0 325.2 0.1 0.5 0 6TA

Sub-TotalGther E:penses 466.0 46d.0 4r6.0 46d.0 466.0 2.730.2

Sub-TotalPART-TIME TECHNICAL ASSISTANCE 975.0 835.3 035.0 83Sf 3S3.0 4,17S.1 C. MONITORINGANDEVALUATION LA -- 566.9 2-566.0 2.16.0 2-56t.9 2.566.9 12,834.5 0 0.2 0 LTA

0 Total INVESTMENTCOSTS =2.205,911.412,8 11014,0 Q.417.6 8,n1 .4 50,'59.2

Total BASELINECOSTS 10,295.511.412.8 11.014.0 9.41'.6 98019.450,'59,2

/a Assumingrecruitment through a firm. lb US$3000Per roundtriF (appraisal estimate); homeloave euer two uears, for staff Polsthoee deoendentr. /c Incl, utilities. /d US$150or Rs 1800 Per morth tarpraisal enAimatei. /e 5Z of cost of four 4x4 4-prssenserfield cors eachsean. If For four 4::4 4-passengerfield cars, /§ Trips of 20 dasseach, of whichfiove are tra-el timp. /h 59of cost of foua 4:4 4-Passe-Oerfield oarseach seia. /i For four 4.4 4-rassengerfieI' -s.

March 2. 1980 OS:00 PAKISTAN FOURTHDRAINAGE PROJECT Table5. SUBSURFACEDRAINAGE, TRAINING DetailedCost Table (Rs'000)

Ouantitv BaseCosts Phy. ------Cont.For. Gross Sumaars Unit 1 2 3 4 5 TotalUnit Cost 1 2 3 4 5 Total Rate Exch.Tax Rate Account

I. INVESTMENTCOSTS

A. INTERNATIONALTRAINING

Travel StudsTour 6 6 6 6 6 30 53.17 319.0 319.0 319.0 319.0 319.01,595.1 0.1 1 0 TRO Per Diem Dav 90 90 90 90 90 450 1.994 179.4 179.4 179.4 179.4 179.4 897.2 0.1 1 0 TRG Training/a Dau 9O 90 90 90 90 450 1.329 119.6 119.6 119.6 119.6 119.6 598.2 0.1 1 0 TRG

Sub-TotalINTERNATIONAL TRAINING 618.1 618.1 618.1 618.1 618.13,090.5 B. IN-COUNTRYTRAINING

TravelAllowance Person 75 50 25 25 25 200 1.07 80.2 53.5 26.7 26.7 26.7 213.9 0.1 0.2 0 TRG Materials Person 75 50 25 25 25 200 0.695 52.1 34.8 17.4 17.4 17.4 139.0 0.1 0.2 0 TRG Miscellaneous Person 75 50 25 25 25 200 0,535 40.1 26.7 13.4 13.4 13.4 107.0 0.1 0.2 0 TRG Audio-VisualEauipsent LS ------48.7 20.9 - - - 69.5 0.1 0.2 0 TRG

Sub-TotalIN-COUNTRY TRAINING 221.1 135.8 57.5 57.5 ,)5 529.4

TotalINVESTMENT COSTS 839.2 753.9 675.6 675.6 675.63,619.9

TotalBASELINE COSTS 839.2 753.9 675.6 675.6 675.63Y619.9

/a Masor saa notbe reouired.

March2, 1983 08'00 - 45 -

ANNEX 1 PAKISTAN FOURTHDRAINAGE PROJECT Table 6. SURFACEDRAINAGE Detailed CDst Table (Rs '000)

Osantita Base Costs Phb. …------…------Cont. For. Gross Suemors Unit 1 2 3 4 5 Total Unit Cost 1 2 3 4 5 Total Fate E:ch. ra: Rate Account

1. INVESTMENTCOSTS

A. CIVIL WARKS

1. Sasundri 11

Samundritirs Drais Extension Mile 2 2.4 - - - 4.4 266,789 533.6 640,3 - - - 1173.9 0.1 0.15 0 CA Sasundri Br. Dr. Rehabilitation Mile if10 - - - 21 65.097 716.1 651.0 - - - 1-3U7.0 0.1 0.15 0 CU Sasundri-Br. Dr. Ex:tension mile 1.3 2 - - - 3.3 266.789 346.B 533.6 - - - 880.4 0 1 0.15 0 Cr AwaaatBr. Dr. Rehabilitation Mile 16 15 - - - 31 65,097 1,041.5 976.4 - - - 2018.0 0.1 0.15 0 CW AwagatBr. Dr. Extension Mile 4 6.1 - - - 10.1 266.789 1,067.2 1,;27.4 - - - 2,694.6 0.1 0.15 0 CW MaduanaBr. Dr. Rehabilitation Mile 24 24 - - - 48 129.126.3,0R9.0 3,099.0 - - - 6,198.0 0.1 0.15 0 CW MaduanaBr, Dr. Ex:tension Nile 3 4.' - - - 7.7 266.789 800.4 1,253.9 - - - 2,054.3 0.1 0.15 0 CA

Sub-TotalSasundri II ',604.U8,781.6 - - - 16,386.2 2. Sasundri I

MaduanaOr. Dr. Extension Mile 15 - - IS 266.709 - - 4,001.9 - - 4,01.8 0.1 0.15 0 CA 3. Paharang

Marh Chiniot Extension Mile - - - 4 - 4 266.789 - - 1,067.2 1,067.2 0.1 0.15 0 CA ChakBandi Extension Mile - - 0 10 - 19 266.789 - - 401.1 2!667.9 - 5S069.0 0.1 0.15 0 CW SangawallaBr. Dr. Rehabilitatiorc Nile - - - 14 - 14 42.606 - - - 597.6 - 597.6 0.1 0.15 0 CW

Sub-Total Paharang - - 2,401.1 4,332.7 - 68?33.D 4. Structures

Inlets No. 4 5 5 4 - IS 22.03' 91.3 114.2 114.2 91.3 - 411.1 0.1 0.15 0 CW Culverts No. 20 30 30 20 - 100 S0.037 1,600.? 2,401.1 2'401.1 1,600.7 - S,003.7 0.1 0.15 0 Cw WatercourseSyphons No. 10 IS 15 10 - 50 10.672 106.7 160.1 160.1 106.7 - 533.6 0,1 0.15 0 CW Automatic GauginaStations LS - 224.1 - - - - 224.1 0.1 0.15 0 CA Other LS 4.3 4.3 4,3 4.3 4.3 21.3 0.1 0.15 0 CW

Sub-TotalStructsres 2,027.2 2,679.6 2,679.6 1.803.1 4.3 9,193.0 5. Administration andEnaineering /a 963.2 1,146.1 908.3 613.6 0.4 35631.6 0 0.2 0 ASME

Sub-Total CIVIL WORKS 10,594.9 12,607.4 9,990.8 6.749.3 4,7 39,947.1 B. VEHICLESAND OEQUIPMENT

1. Vehicles

4Yx4Field Car No, 3 - - - - -243,696 731,1 - - - 731,1 0.05 0.46 0.54 HEH 4x4 LiahtPick-up No. 2 2 243,696 487.4 - - - - 487.4 0.05 0.46 0.54 JEH SpareParts LS - - 121.8 45.7 45.7 45.7 45.7 304.6 0.05 0.46 0.54 VEH

Sub-Total Vehicles 1,340.3 45.7 45.7 45.7 45.7 1.523.1 2. Survey Eauipment,Office Supplies, Tols LS … … … … … … … 310.2 44.3 44.3 44.3 - 443,1 0.05 0.5 0.5O OE 3. AutomaticGauoes LS ------542.8 - - - - 542.8 0.05 0.5 0.5 0OE 4. OWMEusiptent lb

Dragline, I cuad No. I - -2 208022502 2,802.5 - - - - 2,802.5 0,05 0.6 0.4 CEO OpenDrain Cleanina Machine No. 2 - - - 2 2,246.433 4.492.9 - - - - 4,492.9 0.05 0.6 0.4 CEO SpareParts LS - - 729,5 273,6 273.6 2'3.6 273.6 1,823.8 0.05 0.6 0.4 CEO

Sub-Total OGMEoulpeent lb 80024.9 273.6 273.6 2'3.6 273.6 9,119.2

Sub-Total VEHICLESAND EGUIPNENT 10,218.2 363.6 363.6 363.6 319.3 11,623.2

Total INVESTMENTCOSTS 20.813.1 12,971.0 10,354.4 7,112.9 324.0 51,575.3

II. RECURRENTCOSTS

A. CIVIL WORKSGUM 1000ac - 70 149 182.5 295 696.5 18.182 - 1,272.8 2,709,1 37318,35,363.8 12,663.9 0.1 0.2 0 CWO B. VEHICLEDIM /c Operatina Nonth 10 10 10 00 10 50 8.129 81.3 81.3 81.3 81.3 81.3 406.4 0.1 0.5 0 WEHO C. EQUIPMENTREPAIR AND MAINTENANCE LS ------43,8 73.0 102.3 116.9 365.2 0.1 0.5 0.49 ERM

Total RECURRENTCOSTS 110.5 1,397,9 20863.5 3,501.0 5,561.9 13,435.6

Total BASELINECOSTS 20,923.6 14,368.8 13,217.9 10,614.7 5,885.9 65,010.9

a IOZc itemsI to 4 above. Nb Initialls to be usedfor rehabilitation. /c For five 4x4 vehocles.

April 25, 19S3 17:05 - 46 -

PAKISTAN FOURTHDRAINAGE PROJECT ANNEX 1 Table 7. ON-FARMMATER MANAGEMENT ANDEXTENSION Detailed Cost Table (Rs '500)

Guantits uFse Costs Phs, ------Cont. For Gross S:jumurv T Unit 1 2 3 4 5 Total Unit Cost 1 2 3 4 5 Total Rate E:ch. s: Rate Accourt

I. INVESTMENTCOSTS

A. CIVIL AORKS

1. Watercourse Renovation la

Linins H/C 38 30 38 3B 30 190 267.867 10,17B.910,178.9 10,178.9 10,17B.910.178.9 50,894.7 0.1 0.15 0 CL Nakkas/b No. 1,064 1,064 1,064 1,064 1,064 5,320 0.353 375.8 375.8 375.8 375.0 3'5.8 1,879.2 0.1 0.15 0 CV Culverts /c No. 114 114 114 114 114 570 2.089 238.2 238.2 238.2 238.2 238.2 1,191.0 0.1 0.15 Q CV Buffalo Wallows/d No. 19 19 19 19 19 95 7.947 151.0 151.0 151.0 151.0 151.0 755.0 0,1 0.15 0 CA Earthen Improvement H/C 38 38 38 38 38 190 35.558 1,351.2 1,351.2 1,351.2 1,35l.2 1,351.2 6,756.0 0.1 0.25 0 WCI

Sub-Total WatercourseRenovation la 12,295.2 12,295.2 l2,295.2 1,2295.2 12,295.2 61,475.8 2. Precision Land Levelling /e uc 3,800 3,800 3,800 3,800 3.800 19,000 1.306 4.963.6 4,963.6 4,963.6 4,963,6 4,963.6 24,817.8 0.1 0.15 0 cA 3. DemonstrationPlots (1 ac) No. 38 38 38 38 38 190 2.241 85.2 05.2 85.2 85.2 85.2 425.8 0.1 0.15 0 CA

Sub-Total CIVIL WORKS 17,343.9 17,343.9 17,343.9 17,343.9 17,343.9 86,719.4 B. VEHICLESAND EQUIPMENT

1. Vehicles

4.4 Field Car No. 3 - - - - 3 213.696 731,1 - - - - 731.1 0.05 0.46 0.54 VEH 4x4 Pick-up No. 3 - - - - 3 213.696 731.1 - - - - 731.1 0.05 0.46 0.54 VEH Motorcacle No. 12 - - - - 12 13.293 159.5 - - - - 159.5 0.05 0.46 0.54 VEH pic9cle No. 22 - - - - 22 1.329 29.2 29.2 0.05 0.46 0.54 VEH SpareParts LS ------165.1 61.9 61.9 6119 61.9 412,7 0.05 0.46 0.54 VEH

Sub-Total Vehicles 1O816.0 61.9 61.9 61.9 61.9 2,063.7 2. Enuipment

Survesina Eauipment LS ------99.7 - - - - 99,7 0.05 0.51 0.49 OE9 OfficeEauipment LS ------66.5 - - - - 66.5 0.05 0.5 0.5 0E0 Miscellaneous LS - - - - 277 27.7 0.05 0.51 0.49 0E0

Sub-Total Eauiement 193.0 193,.

Sub-Total VEHICLESAND EQUIPMENT 2,009.9 61.9 61.9 61.9 61.9 2,257.5 C. TECHNICALASSISTANCE

Supervisora Consultants Man-Month IS 10 18 18 18 90 20.535 369.6 369,6 369.6 369.6 369.6 1,S48.2 0.1 0.2 0 LTR D. ADMINISTRATIONAND ENGINEERING

Field Teats (31/f LS ------S02.2 802.2 802.2 002.2 802.2 4,010.8 0 0.2 0 ADhE Extension /a LS ------44.9 44.9 44.9 44.9 44.9 224.6 0 0.2 0 ADHE Overhead/h LS ------44.9 44,9 44.9 44,9 44.9 224.6 0 0.2 0 ADHE

Sub-Total ADMINISTRATIONAND ENGINEERING 092.0 892.0 092.0 092.0 092.0 4,460,0

TotalINVESTMENT COSTS 20,615.4 10,667.4 18,667.4 1S,667.4 18,667,4 95,285.1

II. RECURRENTCOSTS

A. WATERCOURSEOVM ac - 15,200 30,400 45,600 60,000 152,000 0.02 - 309.9 619.7 929.6 1,239.4 3,09B.6 0.1 0.2 0 HCO

Total RECURRENTCOSTS - 309,9 619.7 929,6 1,239.4 3,090.6

Total BASELINECOSTS '0,615.4 10,977.3 19.2'7.1 19.597.0 19,906.9 98,383.7

la Averagelenoth of watercourse is 5,000 m (serving 400 ac), of which 30% would be lined (appraisal cost estimate Rs 167.34/r) and 70X would receive earthen improvement(cost Rs 9.521m). /b Permanentstructures (28 Per watercourse). /c Three Per watercourse. /d Onefor two watercourses. /e Assusing 25% of each watercourse will be levelled (about 200 m3/sc, appraisal cost estimate Rs 6.12/mO). /f Each consisting of 1 leader, 2 water manaaementofficers, I water managementspecialist, 4 subenvineers and suFport staff (drivers and clerks). Cost estimate includes salaries and benefits (60%of total) and other expenses(40%). /a Staff consists of 3 water manaaementspecialists and 10 field assistants. Cost estimate includes salaries andbenefits (60%of totol) and other expenses (40%). /h At Faisalabad Division andLahore headauarters.

March 2, 1903 00:00 - 47 -

PAKISTAN ANNEX 1 FOURTHDRAINAGE PROJECT Table 8. PROJECT EXPENDITURE BY TIME (Rs '000)

BaseCosts Foreigr; Exchange

1 2 3 4 5 Total 1 Anournt

I. INVESTMENTCOSTS

A. CIVILWORKS

CIVILWORKS 39,671.1 128,620.5 158,433.3 155,486.4 144,762.6 626,973.9 38.3 240,198.7 WATERCOURSEEARTHEN IMPROVEMENT 1s351.2 1,351.2 1,351.2 1,351.2 1,351.2 6,756.0 15.6 1,051,9

Sub-Total CIVILWORKS 41,022.3 129,971.7 159,784.5 156,837.6 146,113.8 633,729.8 38.1 241,250.6 Physical Contingencies 4,804.6 17,983,6 226550.5 22,255.8 20,953.8 88,548.4 39.7 35,192.4 Price Contingencies 3s628.0 23,361.6 42FB20.3 55,672.8 65,079.9 190,562.5 39.4 74,993.1

Sub-Total INCLUDINGCONTINGENCIES 49,454.8 171,316.9 2259155.3 234,766.2 232,147.5 9129840.7 38.5 351,436.1 Taxes - 16,289.4 23,162.7 24,587.2 26,062.4 90,101.8 0.0 0.0 Foreign Exchange 12,676.2 64,351.2 88,029.9 92,756.1 93Y622.7 351,436.1 0.0 0.0 B. EQUIPMENTAND VEHICLES

CONSTRUCTIONEQUIPMENT 106,692.5 3,637.2 3,637.2 3,637.2 3,637.2 121,241.4 62.8 76,111,3 PUMPSETS - 899.6 956.1 956.1 956.1 3,767.9 75.7 2,850.5 VEHICLES 44,375.1 1,512.8 1,512.8 1,512.8 1,512.8 50s426.2 49.6 25,027.4 OTHEREQUIPMENT AND TOOLS 5,675.9 324.6 305.5 44.3 - 60350.3 49.4 3,139.5

Sub-Total EQUIPMENTAND VEHICLES 156,743.4 6,374.2 6,411.6 6P150.5 6,106.1 181,785.9 58.9 107,128.8 Phyisical Contingencies 7,837.2 318.7 320.6 307.5 305.3 9,089.3 58.9 5,356.4 Price Contingencies 13,108.7 1,064.8 1,591.6 2,015.6 2,505.9 20,286.6 58.9 11,950.8

Sub-Total INCLUDINGCONTINGENCIES 177r689.3 7,757.7 8S323.8 8,473.6 S,917.3 211,161.8 58.9 124,436.1 Taxes 72,714.5 2,947.8 39144.5 3,160.7 3,317.9 859285.4 0.0 0.0 Foreign Exchange 104,782.2 4,521.8 4,878,2 4,993.3 5,260.5 124,436.1 0.0 0.0 C. ADMINISTRATIONANDENGINEERING 3,259.8 12,011.0 14,944.4 14,649.7 13,577.3 58f442.3 20.1 11 720.3 Price Contingencies 258.0 1,890.5 3,498.6 4,545.0 5,279.7 15Y471.8 20.2 3125 I

Sub-Total INCLUDINGCONTINGENCIES 3,517.8 13,901.5 18,443.0 19,194.7 1B,857.0 73,914.1 20.1 14,845.4 Foreisri Exchange 710.8 2,792.0 3,703.7 3,853.1 3,785.9 14,845.4 0.0 0.0 D. TECHNICALASSISTANCE AND TRAINING

FOREIGNTECHNICAL ASSISTANCE 7,728.6 8,845.9 8,447.1 6,850.7 6,052.5 37,924.7 75.3 28n540.4 LOCALTECHNICAL ASSISTANCE 2,936.5 2,936.5 2Y936.5 2,936.5 2,936.5 14,682.7 20.7 3,041,3 TRAINING 839.2 753.9 675.6 675.6 675.6 3,619.9 88.4 3i200.2

Sub-Total TECHNICALASSISTANCE AND TRAINING 11,504.4 12,536.3 12,059.2 10,462.8 9,664.6 56,227.3 61.9 340781.9 Physical Contingencies 271.7 295.9 248.2 246.7 245.9 1,308.3 58.6 766.5 Price Coritingencies 935.0 2,032.1 2,897.0 3,333.4 3,864.2 13,061.6 61.7 8060.5

Sub-Total INCLUDINGCONTINGENCIES 12,711.2 14,864.3 15,204.3 14,042.8 13,774.7 70,597.3 61.8 439608.9 Foreign Exchange 7,808.5 9,428.9 9.493.5 8,578.2 8,299.8 43*608.9 0.0 0.0

Total INVESTMENTCOSTS 212,530.0 160,893.2 193,199.7 188,100.6 175.461.9 930,185.4 42.5 394,881.6 Physical Contingencies 12,913.5 18,598.2 23,119,3 22,810.0 21,505-1 98,946.0 41.8 41,315.3 Frice Contingencies 17,929.7 28,349.0 50,807.4 65,566.8 76,729.6 239,382.6 41.0 98,129.5

Total INCLUDINGCONTINGENCIES 243,373.1 207,840.5 267,126.4 276,477.4 273,696.5 1,268,513.9 42.1 534,326.4

Taxes 72,714.5 19,237.2 26,307.2 27,747.8 29,380.4 175,38'.1 0.0 0.0 Foreign Exchange 125,977.7 81,093.8 106,105.3 110,180.7 110,968.9 534,326,4 0.0 0.0

April 25, 1983 17:05 - 48 -

PAKISTAN ANNEX 1 FOURTHDRAINAGE PROJECT Table 8. PROJECT EXPENDITURE BY TIME (Cont'd.) (Rs '000)

BaseCosts Foreign Exchange

1 2 3 4 5 Total I Amount

_n 22== UUUUSZZ 21z28353w=ss8233 ianUzzw.zzu z .zssazs ssx w=sZ==Z===

II.RECURRENT COSTS

A. CIVILWORKS ODff - 1.272.8 3.607.6 5.414.6 8,657.9 18,952.8 20,7 3.925.8 PhysicalContingencies - 127.3 360.8 541.5 865.8 1,895.3 20.7 392.6 Price Contingencies - 220.4 929.1 1,847.9 3,703.6 6,701.0 20.8 1.397.0

Sub-TotalINCLUDING CONTINGENCIES - 1.620.4 4,897.4 7,803.9 13.227.3 27.549.1 20.7 5,715.4 ForeignExchange - 336.2 1,016.4 1.618.9 2,743.9 5.715.4 0.0 0.0 B. WATERCOURSEOlM - 309.9 619.7 929.6 1,239.4 3,098.6 20.7 641.8 Physical Contingencies - 31.0 62.0 93.0 123.9 309.9 20.7 64.2 Price Contingencies - 53.7 159.6 317.3 530.2 1,O60.7 20.9 221.2

Sub-Total INCLUDINGCONTINGENCIES - 394.5 841.3 1,339.8 1,893.6 4.469.1 20.7 927.2 ForeianExchsnGe - - 81.8 174.6 277.9 392.8 927.2 0.0 0.0 C. EOUIPMENTREPAIR AND MAINTENANCE 914.6 1,372.0 2.286.6 3,201,2 3,658.5 11,433.0 50.0 5,721.3 PhysicalContingencies 91.5 137.2 228.7 320.1 365.9 1,143.3 50.0 572.1 Price Contingencies 80.1 240.2 594.8 1.099.2 1,573.1 3,587.4 50.1 1.795.5 …------… Sub-Total INCLUIIINGCONTINGENCIES 1,086.2 1,749.3 3,110.0 4,620.6 5.597.5 16.163.7 50.0 8,089,0 Taxes 532.2 857.2 1,523.9 2,264.1 2,742.8 7,920.2 0.0 0.0 Foreign Exchange 543.6 875.4 1,556.4 2,312.3 2,801.2 8,089.0 0.0 0.0 D. VEHICLEO&M 81.3 81.3 81.3 B1.3 81.3 406.4 51.1 207.7 PhysicalContingencies 8.1 8.1 8.1 8.1 8.1 40.6 51.1 20.8 Price Contingencies 7.1 14.1 21.0 27.8 34.8 104.9 51.3 53.8

Sub-Total INCLUDINGCONTINGENCIES 96.5 103.6 110.4 117,2 124.3 552.0 51.1 282.3 ForeignExchange 49.3 53.0 56.5 60.0 63.6 282.3 0.0 0.0 _ …------… Total RECURRENTCOSTS 995.9 3,035.9 6.595,2 9.626.7 13,637.2 334890.8 31.0 10,496.7 PhysicalContingencies 99.6 303.6 659.5 962.7 1,363.7 3,389.1 31.0 1,049.7 Price Contingencies 87.2 528.3 1,704.5 3,292.2 5,841.7 11,454.0 30.3 3,467.5

Total INCLUDINGCONTINGENCIES 1,182.7 3,867.8 8,959.2 13,881.520,842.7 48,733.9 30.8 15,013.8

Taxes 532.2 857.2 1.523.9 2.264.1 2,742.8 7,920.2 0.0 0.0 Foreign Exchange 592.9 1,346.4 2,803.9 4,269.1 6.001.5 15,013.8 0.0 0.0 …------… _ Total BASELINECOSTS 213,525.9163,929.1 199,794.9 197,727.2 189,099.1 964,076.2 42.0 405,378.3 PhysicalContingencies 13,013.118,901.8 23,778.8 23,772.7 22,868.8 102,335.1 41.4 42,365.0 Price Contingencies 18,016.928,877.3 52,511.9 68.859.0 82,571.3 250,836.5 40.5 101,597,0

Total PROJECTCOSTS 244,555.9211,708.2 276.085.5 290,358.9 294,539.21,317,247.8 41.7 549,340.3

Taxes 73,246.720,094.4 279831.1 30.011.9 32,123.1 183.307.3 0.0 0,0 ForeignExchange 126,570.692,440.2 108,909.2 114,449.8 116,970.5 549,340.3 0.0 0.0 …------April25, 1983 17.05 - 49 - ANNEX 1 Table 9

PAKISTAN

FOURTHDRAINAGE PROJECT

Disbursement Schedule of IDA Credit

Fiscal Year Bi-annual Cumulative and Semester Disbursement Disbursement

FY84/85 I /1 0.8 0.8 II 2.2 3.0

FY85/86 I 7.5 /2 10.5 II 6.0 16.5

FY86/87 I 6.5 23.0 II 7.0 30.0

FY87/88 I 7.2 37.2 II 7.5 44.7

FY88/89 I 7.5 52.2 II 77.3 59.5

FY89/90 I 5.5 65.0

/1 I: 1st half-year. II: 2nd half-year.

/2 Includes about US$3.5 for contractor mobilization advance. PAKISTAN

FOURTIH DRAINAGE PROJECT

Implementation Scheduile

CY 1983 1984 1985 1986 1987 1968 Ouarter _ 1 2 3 4 1 2 3 4 1 2 3 4 1 .2 3 4 I 2_ 3 4 112 3 4

1. Subsurface dIraJnage 75,000 ac - _ ac _ -- I aca i G ac -2 oo c

2. Surface drainage, 177.5 mi.

Samuuiidri I. 15,0 mi

Sainundri II, 125.5 mi 61 3 a 6.m Paharaig, 37.0 mi 3.OFWM ~z Watercourse Renovation

190 w/c 38 l/c 38 /c 38 /c 38 /c 38 k/c

3 Precisior. Land Levelling - - 8 O 3. 0 a 0 a 3 800 a 19,0OOO a cl 3, 8)0 a 3,8)0a 800 ac, 3 1 80ac 3, 8 O af

- Demonstration Plots ------190Plots 38 plo a 38 lot 38lot{ 38lo s 38 plo s

_ . _~~~~~~~~~~~~~~~ FORM NO. 1934 (1 -83)

PROCUREMENT SCHEDULE FOR CIVIL WORKS COANTRO AfT FROJECT S"ut eang

6 Subsurface251,1 D9ains0SeS 83 Tq84h985 86 187 1 88

SubsurfaceDrains ~251,160 OSL- - 2 Schedule 3

Subsrface Drains ICB~ TKIS

PRCSUSL,KICArISN ACTIONS FROCAREMKNRACTIONS RET,,OO OF PSOOLRKEKENT A_INITIATE EREFARATION OF CRKOUALIFICOTION SOLUKMNCS I N11IATE FRKFARATIONOF RRKCITIIAT IONS ,aNORID OCCOIUMIN rs 9 NSCOARUCTONSN%CORFP EK ICR8SIESNAT 0DNA 2 ISANCLAOC SFECIFO CA tARION AND SIC OOCUMKER5 1I Cr1N TR J T ON 159 000RCTCE CR CAL IORFETIRIAC -TANSMIA UTSONCORENTSNRITKIOIA 1 7 C-IDO CLEARANCE SF DOCUMENTSAND CRITERIA 4 ISSLE INVITATION TO Rl(I 12 COSN9TRACTICTND00 CORELCR S1OC,NC K- RECEIFRTOUFLCONTROCTNDTCREOICTOSAAS TPRANSIT ECALOARION =EFORC10ND OAWARTCOTCDYNI1AT CNS 1C LA F OC 'CUTC F_TRANSM,T EVALOATION REFDRTAND RECOMMRENOA1NS TO I00 7 ISA CLEARANICCFOKLOCMKEKNOATIONO H LA 0-ISA CLEARANCEOF RECOMMENDATIONN 8 AOASI2LOCDTRAOr FORIM NO. 1933 (1-83)

cRNy PAK1i1TAN PROCUREMFENTSCHEDULE FOR EQIJIPMENT AND MATERIALS , Fourth Dratnage

'C 86 - r9E TIO TE T IADTD_ _-977 CT '83 ~84 85 "87 88 0 _TW ICI, !__DJKAE @ 83 w 84 _ 86

T L1i,l m('- "rt n i feslodifyS d 'NethIx> 33PAISA SOniUt;* -- : t:14=-tr T74=isi:F.: t -r-t =t1I 1 t I

I F

J,~~ ~ ~ ~ ~~'' 1'

2I8A I>RSOUALIrICATIE~~~~~~~~~~~~~~~~~~~~~~~~1 Al.' ON ICIN FF=ounMNIr;lhte 'FFD

Mfxoto -lO0 u ft16)ATA F ' ;II1

Three-FrontEndLoaders K2 OATT9t tFrIIL 4 4yŽ Wlbeeltype PiP t$1 lt$4=919 4

A-INITIATE -EAPATA.TIONAFTE-EAJRLIPICRTION ORCUMENTs 11 TTA nEPAC9AT-O O 9 F IATIOAC 991- ) RA- CIC909SI9 C9IC[IIAI l 9C99AT C CNTAT9NAT109 AND EVALUATfON CEITERIA . ln9N9T 099:F ICII99CAN' . -1 -C-0MNT T'.D 10IICC'' CTI9 9CEA COM9T'CI- e DAITNG rd 1TE -TRAEA.IT D-RISENOS AND ClITERlA TO IDA C IDA C 999990 or STECIFCATION ON-) 111L 9991999 AC 0109 .C6 OuMeNTL99LO1CC-1--I VE C-ISA CLEAP.ACE OF A AIMANTSANDCRICEEIA 9 II991119,9 1A90991 TOIO OOINGa, A- -UFE PROUAIFICATION -ATICE S TICS PN E9A9TNT9O.EI I E-E AIPTOF COET-ACTR fflEOUALIPICATION DATA 9 I99991999)-Al ION REPORTAND 9WA09 O900MDTNAT TO.'199 1110 '991 NlTl A ON 9-TAlANSIT EVALUATION REPORTAND RAECDMUENDATIONRTO IDA. ICACC.ATNCC DOFReCOM A 0|9 G-IDD CLEARANCE RE SE9DESSAENDATIONS E 9wAwl' 9

1/ CUF/Ex-factory price (wvithout spares). FORM NO. 1933 (1-13)

EQUIPMENTAND MATERIALS _ Fwscaourth Drainage COU.T.Y. PAKISTAN PROCUREMENTSCHEDULE FOR

t D8.N 9 8486 AREouALlMlcA7OfUE ACTIONS

d Three-Drain Tube 570 INITIITAt O L Cleaning Machines U.K.

Two-Open Drain 30a~~o Cleaning Machines U.K.

AT SITE LCd LocAL CONETITIVE-- - IDA C0EAA--CE OF SPECI-ICU-ION AND dID DOCUMENTS I FINAL LIUD- . *-TRANSSITOOCUSMENVSNCRITESO TolOU 3 RIDDING MS 13 *aISOCINVITATION TO RIO C-IDA CIMURMECEOF DOMOCUSEFYS ANE CRITERIA PE-PEUDENT SOOPPINO PI.E p^ RIDS RS) D-ET UE PRROu*CIFICATION NOTICE T OPEN NEG_NEGOTIATION I EREFORTAND AWARD TECOROFNOVTTSONTO 111 E-RECSIPTOFCONTRACTOR RREEOA*LIPICATION DATA S TOUNSCIlTEVALIIARION PA IA OF RECDMMENDATIONS P-RRANS4IT EVALUATIONJREPoRT ANDOMECOWMENOATIONS TO IOA 0 IOU CLEARANCE S VANAO CY.TO ACT G-IDACLEARANCE OF RECOEINOATIONS

1/ CIF/EAx-factory price (without aparese). FORM NO. 1933 (1183)

Fourth _ PROCUREMENT SCHEDULE FOR EQUIPMENT AND MATERIALS COUsTRo PAJISTAN

4D M""o OFT MTOF -8 CY 8TIMAT 1f WANTr' .. T

Two-p'ortable Aixr Coms- pressors, w/Pne.umatic U.K. ISD Tools Thlree-Sheepfoot Rollers 1,040 -Ao.A wf'Vibrator, 10 T U.K. - -I.E

2 -SepPumps & Power 2i,420 -- -- Units inel. Controls U.K. DIE

2-Pump Sets, ci-e. 620 . Controls UK

Seveli-Automatic Water 310 I.u Level Recording U.K. IOII Gauges --- - INine-Dump Trucks, 6 cu 2,620 A- A-- yda

Three-Lowbed Tractor Trailers, 30 T U.K. ATA

Three-Trucks w.Welding2,0 PRIA Accessories -.. SVND -

Three-Water Tank Trucks 100 OFOA 1,200 gal. UK

Three-Fuel Tank Trucks U.K. 210 NRIA 1,000gal.

.DIoDrAUEET POOC-SDEWN ATOS *EOOAUF,C-IOS ED-bOs Icr-INSESNATIANA. INITIASE PSEPATATIONOS SWECIFICATIONSANDSIDDOCUDEUSS S INIDlAL DELIVRSc AT SITe A-INrTIATerREPAR*5boOppsFEO*L,p,fCAr,DOsoCU,e,r, 0 INSTEIM DfT lvelesS AT SITE COMPFSIT,ICESIDDINO OH A ATANSMlt sFeclFICATINS ANO S.D DocuMeNTS TD In IV0. ANOED-AcD*V5SR,TE 1I FINAL0DELIVDDTATSIDS CG-IOCAC CAUPESIT A IDA-CCEDANCeOF S.ECIDICASE AN- GID.D-CUNENT7 *-ThAn DDCUIAZGITOTMOD AITER%ITO ID. NG 00 1 31DI C-ISA CLI*550RAI OF 000551 *NM CRITERIA S ISSue INVIDArAN TO S- N-CPN-PAUEND _MNDNAAIONS SHOPPING ON SF-0-T AND AWARD TGIIAA CD0TR*CrOePREOU*UPIC*TION DATA TTRAN-SSIT evATlASIAN N.A-NATIANIOD I-RMOTOs OF SDCoMUeNDADIONS S |w RPORT AND RECOMMEN*ATIONS00TD* 7 IDA0CLA ANC- P-WA5AIT EVOL.-TION AhAD- L-T-ICT G-I0O CIJARARcE OF REEMENO*TIANS S

1/ CIF/Ex-factory prices (without spares). FORM NO. 1933 (1-83)

PAKISTANxCOtINTPY PROCUREMENT SCHEDULE FOR EOUIPMENT AND MATERIALS 1.0JrCT Fourth Drainage

RECIERoPra A.1-R1" ATMr RWMATe.oz . R .. . .__ . DUSA ITO PRsR .X

Three-Trucks for PVC PipB 990- Transport UK

Three-Maintenance Truckf 1,130APAIA U.K. FE

Thr e-4x4 Crane Trucks UK f or PumpMaintenance T.A 2,040 APPRAISL - Li Nine-4x4 King Cab Pc- UK EIE Upe, 3/4T

Five-Pick-Ups 60APASL ---- : 4.4 U.K. RVSO-- j- ~

Sixteen-4x4 - 4 Pasen- 2,30.K.AA ger Field Cares-A

4 1,370APAIA -- Se:ven-4x - 6-12 Passer U.K. OCOT -- ger Carryalls------

Two-4x4 Station Wagons U.K.1 30 APP.AISA

Twelve-Motorcycles U.K. PVS.j- - - - - 0z? S~~~~~~~8

2-0 APPRAISAL 22-Bicycles UK EE

PR3UA*LIPICATOIO AGTI0NS PROCURfMAA I ACTIONS REP-OD EOPROC-REMENT A-P.ITIATEPREPARATION.OP PROUALIEI.T.ION DOcCUMNTS INITIATE OPDTACOICAT -FR[ARATl( -IONSANDO IOTEMENTS9 INITIALLIERy AT 5,, ICR-INTERNATION.AL A*0EOALOAONARITENIA Z NCSSIITSFECIF CA710NSAND 6O OOCUMENFS70I-TERTINC IN7tRIM OE.IC0TIER A7T 7E CO-R"-T-ET .- , S-TTIANSIT OOCULENTSANM CRITERFIA TO lEA S IAO CLEARANCE CF ECIRICATION ARlS AACCRENNS I FINAL DELIVETY AT SITE *C -LOCAL C-MF1-T1VE a a1 C-..ACLEARA.CEROF OCMENTS.ANOCRITERIA I SOARIE, ITATIDN TO .1R BISING cr tC G-ISUE PREGOALIFICATIOA NOTICE S OFPNTIES PR tRAFENT ROPTINS Gl I-F E-REaElT O EONTR*C-OEfN(ERALIEICATIRN RATS ETANSMIT EVAClATIO REPORTANE A000D F...TE TO. IICA NEGONESOT,AT,N-ATIONS F-T N*IIT ETA, OSTIRRREPORT APD RECOMM-NRATIONSTO IRA I 0A CLEARANCE OF FECOR-FNOATIONS NJ L A-IDA CLEARANCEOF RECOEMNRATION-R AW0PD IC RITACT

1/ ClF/Ex-factory price (without spares). FORM NO. 1933 ( 1-83)

PROCUREMENT SCHEDULE FOR EQUIPMENT ANO MATERIALS SUANTIATRENT K _ ._9T ___Fourth Drainage

0OlT- 10 AP RISA L Cy 4 I1X 4 84 =C !"T250 7 Survey Equipment U.K. T

Drainage InVeStigation 130 APPRAIAL Equipment 3 Sets U.K. ASO

12,410 - APPAIAL - Soil Lab Equipmnent & Supplies UK TA

Office Furniture U.K. 120 arAsA.

Office Equipment U.K. 250 APRASA -

270 APPRA-SA Mfiscellaneous U.K. F--AC

PREALION U*IPCATON-TR - TCUEOTE CIISC C' I IICSRETIC C

S-FGALRP-TENALPDT... OTC.NOENTC -NI~~~ ~~ ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~ ~~~~~~~~~~~~~~~~~~~~~~NC-EOITC C P--5RITD ENATSIANDERRAN- EC- UEOATO.TI DA I CA CIECTANE OP TLAMATNC-IO-C A- IRACLEAAA.CE O EOMMCV..TD..CITP . C ACIS T7'ACS RT-

I/ CIF/Ex-factory Price (without spares). PROCUREMENTSCHEDUL' fOR TECHNI.^AL ASSISTANCE

Drainage Engineer 7 (Technical Advisor) NE -- = -

Drainage Design NC-- Engineer

Drainage Construction NEC ------Engineer CSA

Drainage Systems NEC O&NEngineer C-

Soil Scientist NEC SCE ----

1. Develop key objectives and general scope of assignmzent 5. Negotiate contract 2. Clear key objectives and general scope with IDA 6. Clear negotiated contract with IDA l 3. a. Determine short list 7. Award contract Xi b. Prepare TOR .4 c. Prepare conditions of employment 8. Commence service 4. IDA clearance of 3 above 9. Complete service - 58 - Annex 4 Page 1

PAKISTAN

FOURTH DRAINAGE PROJECT

Procedures for Operation of Civil Works Imprest Account For On-Farm Water Management Component

1. A "Civil Works Imprest Account" (Imprest Account) has been opened in the State Bank of Pakistan by the Director General, Federal Water Management Cell (Federal Cell), Ministry of Food, Agriculture and Coopera- tives.

2. The Federal Cell, through the Finance Division, has authorized the Province of Punjab to open a sub-account (Personal Ledger Account - PLA) in the Treasury for purposes of receiving funds from the Imprest Account and making payments for civil works items eligible for financing from the proceeds of the IDA Credit. The sub-account (PLA) is administered by the Director General of Punjab's Provincial On-Farm Water Management (OFWM) Directorate.

3. Promptly after the Effective Date of the Credit, IDA would withdraw Rupees 2.75 million equivalent from the Credit Account for deposit in the Imprest Account. The Federal Cell would transfer the amount to the sub-account (PLA) under advice to the Provincial Planning and Development and Finance Departments.

4. Payments from the sub-account (PLA) would be exclusively for civil works. All withdrawals from the sub-account (PLA) by the OFWM Director General would be in accordance with the procedures prescribed by the Punjab Provincial Government for operation of PLAs. Copies of these procedures would be forwarded to IDA. Checks to withdraw funds from the sub-account would be signed by the OFWM Director General and co-signed by an appropriate officer designated by the Provincial Government, preferably outside the OF!JM Directorate. All documents substantiating any payment made from the sub-account would be retained by the OFW4M Direc- torate.

5. The OFIWM Director General would submit to the Federal Cell monthly statements of expenditures verified by the leader of the supervisory consulting team.

6. On the basis of the monthly statements of expenditures, certified by the supervisory consulting team leader, the OFWM Directorate would prepare reimbursement applications for signature by the authorized Punjab Government official and submit them to IDA (through the Resident Mission, - 59 -

Annex 4 Page 2

Islamabad, with copy to the Federal Cell). The payment instructions in the applications should clearly state the name and number of the sub-account to ensure proper transfer of funds. IDA would withdraw from the Credit Account the reimbursable amounts and remit them to the sub-account as indicated in the payment instructions.

7. A monthly statement of the sub-account would be prepared by the OFVWY Directorate reflecting all transactions during the month. It would be forwarded by the Directorate to IDA through the Resident Mission.

8. If for any reason IDA should disallow or reduce a claim submitted by the OFWTMDirectorate, the Government of Punjab would be required to make up the amount in the sub-account.

9. The sub-account would be audited in accordance with para 4.12 of the Staff Appraisal Report (Sec. 4.01 DCA).

10. No further deposit in the Imprest Account/PLA would be made when the total amount withdrawn under this civil works component has reached the equivalent of SDR 4.3 M (US$4.6 M).

11. GOP would obtain from the State Bank of Pakistan and furnish to IDA any information relating to the Imprest Account and sub-account (PLA) as IDA may reasonably request. - 60 - ANNEX 5 Page 1 PAKISTAN

FOURTH DRAINAGE PROJECT

Terms of Reference

Technical Experts (Subsurface Drainage)

Description of Work

1. The Technical Experts shall assist IWAPDA's Project Director, located at Faisalabad, in the planning, designing and implementing of the subsurface drainage component of the project (para 5.14). In addition, the Operation and Maintenance Expert(s) shall assist the Punjab Department of Irrigation in developing its O&M program for this component and in efficiently carrying out this responsibility.

2. It is envisioned that these experts shall be appointed as individuals by WIAPDA. They shall be individually responsible for the technical phase of their responsibilities. However, the Drainage Engineer--Technical Advisor to the Project Director--would have overall management supervision of these experts including evaluation of their work performance, and the scheduling of part-time consultants. He would repre- sent these experts in all broad administrative discussions with WAPDA. His administrative duties would include, but not be limited to: (a) assis- tance in preparing IDA reimbursement applications; (b) certifying IDA reimbursement applications; (c) assistance in preparing progress reports and project completion report; and (d) facilitating training programs. He could assign other experts to assist or act on his behalf in these activities. Contracts of all technical experts would reflect this administrative arrangement.

Duties and Qualifications of Full-Time Technical Experts

3. Drainage Engineer - Technical Advisor To Project Manager: In addition to the management responsibilities enumerated in para 2 above, this expert would have the following duties:

(a) to provide full-time technical guidance for the investiga- tion, location, design, construction and operation of the surface and subsurface drainage systems;

(b) to advise and assist in the preparation and organization of training at all levels;

(c) to serve as instructor on technical drainage subjects during the training sessions; - 61 - Annex 5 Page 2

(d) to recommend criteria and procedures for technicalworks and constructionspecifications;

(e) to assist in the preparationof tender documents for civil works and the evaluation of bids;

(f) to provide spot checks as often as necessary at the gravel processing plant to ensure the operations are being performed according to the written specifications;

(g) to provide expert technical-assistance to the Project Manager at all staff meetings and meetings with WAPDA and Pakistan officials;

(b) to prepare all technical reports and correspondencerelated drainage matters for the approval and signatureof the Project Manager.

Qualifications: A degree in Civil or AgriculturalEngineering with academic training in irrigation,agricultural soils, and drainage. A minimum of 15 years of increasing responsibilityin the investigation, location, design, construction,inspection, operation and maintenanceand administrationof surface and subsurface drainage systems for irrigated lands in arid regions.

4. Drainage ConstructionEngineer: Duties would include:

(a) technical assistance to the constructiondivisions in the constructionof subsurfacedrainage systems in all types of soil conditions;

(b) technical advice on the repair, minor modification,and operationand maintenance of drainage constructionequipment;

(c) assistance in the evaluation of bids;

(d) assistance to contractorsin the understandingof the con- structionspecifications, inspection requirements,progress reports, settlement of grievancesand solution of construc- tion problems;

(e) advice and assistance in the developmentand organizationof the constructiontraining program for staff at all levels;

(f) serving as instructor on constructionand safety procedures at all training sessions; - 62 - Annex 5 Page 3

(g) on-the-job training and guidance in the inspection of the quality of the drain material and the installation techniques being used for the construction of the subsurface drainage system;

(h) assistance in the preparation and organization of the train- ing program for drain inspection and serving as an instruc- tor;

(i) acting as chief inspector and liaison official between the drainage engineer and the drain contractor;

(j) reviewing all daily inspection reports and preparing monthly summaries of drain inspection problems and how corrected; and

(k) preparing guidelines or manuals on all phases of drain inspection.

Qualifications: A degree in engineering with academic training in con- struction techniques, administration and equipment. A minimum of ten years of increasing responsibility in construction and inspection of surface and subsurface drainage systems in irrigated lands as a government construc- tion engineer or as an owner or superintendent of a drainage construction company working in an irrigated area.

5. Drainage Design Engineer: Duties would include:

(a) full time technical assistance to the planning/design unit for the design, preparation of specification drawings and engineer's cost estimate and monitoring of completed subsur- face drains for possible improvement in design techniques;

(b) advice and assistance in the preparation and organization of a training program for design personnel;

(c) instruction in the training program not only for design personnel but for staff at all levels;

(d) assistance in the preparation of tender documents;

(e) checking all completed designs and specification drawings and when technically satisfactory, initialing to indicate they are technically acceptable;

(f) suggesting modifications of design techniques and require- ments when existing techniques and requirements are unsatis- factory;

(g) providing technical liaison between the drainage engineer and the planning/design unit. - 63 - Annex 5 Page 4

Qualifications: A degree in civil engineering with academic training in irrigation and drainage design theories and techniques. A minimum of 15 years of increasing responsibility in the design of irrigation and drainage systems, with at least five years as a drainage engineer in charge of obtaining data, designing drainage systems and evaluating the functioning of completed drains.

6. Drainage System Operation and Maintenance (O&M) Engineer: Duties would include:

(a) full time advice and guidance to the operation Division and Punjab's PID on proven operation and maintenance techniques;

(b) advice and assistance in the preparation and organization of the operation and maintenance training program;

(c) service as an instructor in the O&N training;

(d) preparation of an O&M procedure manual, to be approved by GOP, and leadership in the enforcement of the manual guidelines;

(e) daily evaluation of the adequacy of the operation and main- tenance program and recommendation of changes required in scheduling or equipment;

(f) serving as liaison between the drainage engineer, the O&M organization and the planning/design unit and construction divisions;

(g) providing technical assistance in the preparation of the monthly and annual O&M progress and implementation reports.

Qualifications: A graduate civil or agricultural engineer with at least 15 years of increasing responsibility as an operation and maintenance engineer on an irrigation and drainage project with one or two years as the O&M supervisor.

7. Soil Scientist (Drainage Investigation): Duties would include:

(a) assistance to the planning/design unit in drainage investiga- tion, and assistance to M&E in the monitoring and evaluation of programs;

(b) assistance in the setting up and efficient operation of the project's soil and water laboratory;

(c) instruction to staff at all levels on agricultural soil characteristics as related to drainage; - 64 -

Annex 5 Page 5

(d) on-the-job training for drainage personnel in the recogni- tion, evaluation and interpretation of soil data as they relate to drainage design, construction and (&M;

(e) serving as liaison between the soil science personnel in the planning/design unit and the drainage engineer and construc- tion divisions;

(f) assistance and advice on the reuse and mixing of drain effluent for irrigation;

(g) technical advice on the solution of drainage problems caused by soil related discrepancies.

Qualifications: A degree in Soil Science with academic classes on irriga- tion and drainage subjects. A minimum of 10 years experience as a land classifier and at least 2 years working as a member of a drainage inves- tigation team on irrigated lands.

Consultancy Services

8. The full-time consultants would be stationed in Faisalabad in office space provided by WAPDA for the Project Director. The following are the envisioned man/months and approximate periods of assignment for these experts:

Profession Man/Months Period

Drainage Engineer (Technical Adv.) 60 10/1/83 to 9/30/88 Drainage Design Engineer 36 10/1/83 to 9/30/86 Drainage Construction Engineer 54 1/1/84 to 6/30/88 Drainage System O&M Engineer 30 7/1/85 to 12/31/87 Soil Scientist 24 10/1/83 to 9/30/85 Total 204

9. In addition to the full-time experts, the project provides for about 500 man/days of part-time experts. Professions represented would include those envisioned for full-time experts, as well as part-time assistance in such areas as: (a) inspection; (b) monitoring and evalua- tion; (c) irrigation agronomy; and (d) water management.

10. All technical experts would be appointed by WAPDA in accordance with terms and conditions acceptable to IDA. The principles and proce- dures described in the "Guidelines for the Use of Consultants by World Bank Borrowers and the World Bank as Executing Agency" (August 1981) would be followed. In addition, assurance has been obtained that WAPDAwould employ the Drainage Engineer (Technical Advisor) within two months of Credit effectiveness. - 65 - Annex 5 Page 6

Terms of Reference

SupervisoryConsultants - On Farm Water Management (OFWM) Component

Descriptionof Work

1. For the purposes of this agreement, the team of supervisorycon- sultants, locally engaged and supplied by a consulting firm, shall provide certain professionaland technical services to the Punjab Provincial On-Farm Water Management (OFWMI)Directorate to assist in the overall coordinationand management of this project. 1/ The team shall report to the Director General, Punjab's OFWM Directorate,and shall be under his general supervision.

2. All project records shall be made available to the team of con- sultants.

Scope of Work

3. The services to be performed by the supervisoryconsultant team shall include:

(a) review of plans and designs for civil works to assure com- pliance with agreed criteria and standards;

(b) review of technicaladequacy of revised standards proposed by the Directorate;

(c) verificationof statementsof expendituresfor procured materials;

(d) check of pucca structures during installationand check of all completed civil works to assure that such works meet the agreed criteria and standards of eligibilityfor IDA financ- ing;

(e) notificationof Director General, OFWM, in Punjab, of com- pliance or non-complianceof completed civil works with agreed criteria and standards;

(f) preparationof IDA reimbursementapplications for the Direc- torate, and verificationof quantities and acceptable quality;

1/ Terms and conditions of agreement and experience and qualificationsof consulting firm shall be satisfactoryto IDA. - 66 - Annex 5 Page 7'

(h) assistance to the Directorate in preparationof annual work plans and progress and completion reports, as well as updat- ing project work plan; and

(i) monitoring,reviewing, and assisting in procurement activities.

4. Following certified completion of civil works by the Punjab OFWM Directorate,the team shall check all renovated watercoursesto verify quantity and quality of pucca facilities and quality of the katcha sec- tions. In addition, the team shall check all PLL of the demonstration plot to determine quantity and quality of completedworks. Deficiencies noted in the quality or quantity of work shall be reported to the Director General of the Provincial OFWM Directoratewithin 45 days of certification of completion by the Directorate.

5. Consultant team's assistance in preparing progress and completion reports, annual and updated project work plans, and budget control shall be in accordancewith directives from the Director General and consistent with time schedule required for such activities as included in the project implementationschedule.

ConsultancyServices

6. The consultant team shall be stationed in Lahore in office space to be provided by the firm and to be located in close proximity to the Punjab On-Farm Water Management Directorate. The agreement for consult- ancy services between GOPunjab and the consulting firm would be signed within two months of Credit effectiveness. The team would consist of the followingmembers:

Profession No. Man/Months

Team Leader, Engineer (Full Time) 1 60 Accountant (Part Time) 1 15 Sub-engineer(Part-Time) 1 15 Total 90

7. The consulting firm's fee would include all personnel costs (salaries,related expenses and allowances);firm's overhead; transport, office and survey equipment, transportationcosts; rent of office facilities and utilities; as well as clerical support and drivers. In addition,the firm would supply limitedback-up staff support, services, and technicalassistance from its headquartersstaff as required. PAKISTAN

FOURTHDRAINAGE PROJECT

INCREMENTALCROPPRO8UCTION

(inThousand Hetric Tons)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

53,1 WHEATSETH PROJ. 25.2 24.7 25,4 27.6 31.5 38.0 43.6 48,2 51.4 53,1 53.1 53.1 53.1 53.1 53.1 918.6 SUGARCANEWITHPROJ. 840.5 833.0 837,8 850.4 877.1 921,4 955.2 979.7 992.2 902.7 972.8 956.9 947.2 937.6 928.1 325,1 K. FODDERWITH PROJ. 296.4 294.9 292,6 297.3 306.9 322,7 332,4 341.0 345.5 350.8 347.2 341.3 337.8 334.2 328.5 299.3 R. FODDERWITH PRDJ. 146.6 144.2 147.4 161.3 184.0 222.0 252.3 276.3 291.9 299.3 299.3 299.3 299.3 299.3 299,3

18,2 WHEATS-OUT PROJ. 25.2 24.7 24.3 23.7 23.3 22,9 22.5 22.1 21.4 20.7 20.3 19.9 19.5 19.2 18,6 620,0 616.0 SUGHARCANEA-OUTPROJ. 840.5 826.5 812.6 790.9 777,0 763.6 750.2 736.9 723.8 697.8 685.1 664.9 652.5 640.2 223,1 218.7 K. FODDERS-OUT PROJ. 296.4 291.4 283.6 278.0 271.1 266,4 258.8 254.2 249.6 251.6 246.9 239.4 234.9 230.4 111.0 107.4 R. FODDERW-OUT PROJ. 146.6 144.2 140.3 - 137.9 134.1 131.8 129.5 125.8 123.5 123.6 121.3 119.0 115.4 113.2

33.5 33.9 34.5 34.0 INCR,WHEAT PROD. - - 1.1 3.9 8.2 15.1 21.2 26.2 30.0 32.4 32.8 33.2 300.0 302.6 IOCR.SUGARCANE PROD. - 7,3 25.2 51.6 100.1 157.9 205.0 242.0 268.5 284.9 287.6 292.0 294.7 297.4 105,4 106.4 INCR.K. FODDERPROD. - 2.6 9.0 18.5 35.7 96.3 73.5 86.8 95,9 99.3 100.3 101.9 102.9 103.9 188,4 191.9 INCR.R. FODDERPROD. - - 7.1 23.4 49.9 90.2 122.9 150.5 168.5 175,7 178.0 180.3 183.9 186.2

17 18 19 20 21 22 23 24 25 26 27 28 29 30

SHEAFWITH PROJ. 53.1 53.1 53.1 53,1 53.1 53.1 53.1 53.1 53.1 53.1 53.1 53.1 53.1 53.1 SUGARCANEWITHPROJ. 909.2 900.0 085.1 867.9 859.1 850.3 841.7 833.1 824.7 811.0 802.7 794.6 786.5 772.0 K. FODDERWITH PROJ. 319.5 316.1 310.6 307,3 304.1 298.8 295.6 290.4 292.2 289.0 283.0 280., 275.6 272.6 R. FODDERWITH PROJ. 299.3 299.3 299.3 299.3 299.3 299,3 299.3 299.3 299.3 299.3 299.3 299.3 299.3 299.3

WHEATW-OUT PROJ. 17.9 17.5 17.2 16.6 16.3 15.9 15.6 15.3 14.4 14.1 13.8 13.5 13.2 12.9 SUGARCANES-OUT PROJ. 604.0 592.2 573.2 551.2 539.9 528.8 517.8 506.8 496.0 478.6 468.0 457.6 447.3 428.8 K. FODDERS-OUT PROJ. 211.5 207.2 200.2 196.0 191.9 185.1 181.0 174.4 176.7 172.7 166.0 162.0 155.5 151.7 R. FODDERS-OUT PROJ. 105.3 101.8 99.7 97.6 94.2 92,2 08.9 86.9 87.6 84.3 82.3 79.1 77.2 75.3

40.2 INCR.WHEAT PROD, 35.2 35.6 35.9 36.5 36.0 37.1 37.5 37,8 38.6 38.9 39.2 39,6 39.9 INCR.SUGARCANE PROD. 305.2 307,8 311.9 316.7 319.1 321.5 323., 326.3 328.7 332.4 334.7 337.0 339.2 343.2 INCR.K. FODDERPROD. 107.9 108.9 110,4 111.3 102.2 112,7 114.6 116.0 115,5 116.4 117.8 118.' 120.1 120.9 ' INCR.R. FODDER PROD. 194.1 197.5 199.6 201.7 205.1 207,1 210.4 212.4 211.8 215.1 217.0 220.3 222.2 224,1

March 3, 1983 -68-

PAKISTAN ANNEX 6 Table 2 FOURTH DRAINAGE PROJECT

IUustrative Farm Budgets

Subsurface Drainage Area, With Project

(Average Size Farm of 9 ac; Constant FY83 Prices)

------Present------Project Year 10-30------Unit Price Area ----- Quantity---- Value Area ----- Quantity----- Value Unit (Rs) (ac) (kg/ac)l/ (kg) (Rs) (ac) (kg/ac)l/ (kg) (Rs)

A. OUTPUTS

Wheat 100 kg 154.60 2/ 5.04 610 3,074 4,753 5.22 1,220 6,368 9,846 Sugarcane Maund 3/ 7.92 2/ 2.48 10,550 26,164 - 5,552 2.48 21,100 52,328 11,104 Kharif Fodder (maize) t 144 1.17 7,890 9,231 1,329 1.17 15,780 18,462 2,658 Rabi Fodder (berseem) t 111 1.44 12,470 17,957 1,993 .1.44 24,940 35,914 3,986 10.13 13,627 T103 27,594

B. INPUTS

Wheat 5.04 5.22 Seed kg 1.92 37 186.5 358 37 193.1 371 Manure Cart 20 5 25.2 504 5 26.1 522 Urea kg 2.40 4/ 32.6 164.3 395 54.4 284.0 682 TSP kg 2.06 4/ 17.4 87.7 181 32.5 169.7 350 Labor (hired) Man-day 18 3.6 18.1 327 8.1 42.3 761 Bullock Bu.-day 25 6 30.2 755 6 31.3 783 Water Charge ac 22 111 115 2,631 3,584

Sugarcane 2.48 2.48 Cuttings kg .3 1,400 3,472 1,042 1,400 3,472 1,042 Manure Cart 20 10 24.8 496 10 24.8 496 Urea kg 2.40 4/ 43.5 107.9 259 65.3 161.9 389 TSP kg 2.06 4/ 21.7 53.8 111 32.6 80.8 167 Labor (hired) Man-day 18 10 24.8 446 18 44.6 803 Bullock Bu.-day 25 12 29.8 745 12 29.8 745 Water Charge ac 62 154 154 3 ,2_53T§96

Kharif Fodder (maize) 1.17 1.17 Seed kg 1.5 15 17.6 26 15 17.6 26 Manure. Cart 20 6 7.0 140 6 7.0 140 Urea kg 2.40 4/ 4.4 5.1 12 17.4 20.4 49 TSP kg 2.06 4/ 0 0 0 8.7 10.2 21 Labor (hired) Man-day 18 2 2.3 42 7 8.2 147 Bullock Bu.-day 25 3 3.5 88 3 3.5 88 Water Charge ac 14 16 16 72T '48

Rabi Fodder (berseem) 1.44 1.44 Seed kg 6 8 11.5 69 8 11.5 69 Manure Cart 20 5 7.2 144 5 7.2 144 Urea kg 2.40 4/ 10.9 15.7 38 21.7 31.2 75 TSP kg 2.06 4/ 0 0 0 10.9 15.7 32 Labor (hired) Man-day 18 5 7.2 130 12 17.3 311 Bullock Bu.-day 25 5 7.2 180 5 7.2 180 Water Charge ac 14 20 20 3m

All Crops 10.13 10.31 Seed 5/ kg 1,495 1,508 Manure Cart 20 64.2 1,284 65.1 1,302 Urea kg 2.40 4/ 293.0 704 497.5 1,195 TSP kg 2.06 T/ 141.5 292 276.4 570 Labor (hired) Man-day 18 52.4 945 112.4 2,022 Bullock Bu.-day 25 70.7 1,768 71.8 1,796 Water Charge ac 14 301 305 6,789 8,698

C. NET PRODUCTION VALUE

Wheat 2,122 6,262 Sugarcane 2,299 7,308 Kharif Fodder (maize) 1,005 2,171 Rabi Fodder (berseem) 1 412 3 155 Ts- M--- 18:896

1/ Except.for manure, labor and bullock. 2/ Net of transportation costs from farm to market or mill. 37.324 kg. Z/ Including transportation costs from sales point to farm. 5/ Including cuttings. -69- ANNEX 6 Table 3 PAKISTAN

FOURTH DRAINACE PROJECT

Illustrative Farm Budgets

Subsurface Drainage Area, Without Project

(Average Size Farm of 9 ac, Constant FY83 Prices)

Present Project Year 10 Project Year 30 Unit Price Area Quantity Value Area 2/ Quantity Value Area 3/ Quantity Value Unit (Rs) (ac) (kE/ac)(s) (ac) (k) (ac) - (kBac) 1/ (kg) (Rs) (ac) - (kg/ac)l/ (kg) (Rs)

A. OUTPUTS

Wheat 100 kg 154.60 4/ 5.04 610 3,074 4,753 4.62 540 2,495 3,857 3.89 400 1,556 2,406 Sugarcane Naund 5/ 7.92 4/ 2.48 10,550 26,164 5,552 2.27 9,360 21,247 4,509 1.87 6,970 13,034 2,766 Kharif Fodder (maize) t - 144 1.17 7,890 9,231 1,329 1.13 6,780 7,661 1,103 1.01 4,580 4,626 666 Rabi Fodder (berseem) t 111 1.44 12,470 17,957 1,993 1.39 10,760 14,956 1,660 1.22 7,340 8,955 994 10.13 13,627 -9.41 11,129 19 6,832 B. INPUTS

Wheat 5.04 4.62 3.89 Seed kg 1.92 37 186.5 358 37 170.9 328 37 143.9 276 Manure Cart 20 5 25.2 504 5 23.1 462 5 19.5 390 Urea kg 2.40 6/ 32.6 164.3 395 32.6 150.6 362 16.3 63.4 152 TSP kg 2.06 6 17.4 87.7 1b1 17.4 80.4 166 8.7 33.8 70 Labor (hired) Man-day 18 3.6 18.1 327 3.6 16.6 299 0 0 0 Bullock Bu.-day 25 6 30.2 755 6 27.7 693 6 23.3 583 Water Charge ac 22 111 102 86 2,631 2,412 1,557

Sugarcane 2.48 2.27 1.87 Cuttings - kg .3 1,400 3,472 1,042 1,400 3,178 953 1,400 2,618 785 Manure Cart 20 10 24.8 496 10 22.7 454 10 18.7 374 Ulrea kg 2.40 43.5 107.9 259 43.5 98.7 237 21.8 40.8 98 TSP kg 2.06 21.7 53.8 111 21.7 49.3 102 1 0 .9 20.4 42 Labor (hired) Man-day 1R 10 24.8 446 10 22.7 409 0 0 0 Bullock Bu.-day 25 12 29.8 745 12 27.2 680 12 22.4 560 Water Charge at 62 154 141 116 3,253 2,976 1,975

Kharif Fodder (maize) 1.17 1.13 1.01 Seed kg 1.5 15 17.6 26 15 17.0 26 15 15.2 23 Manure Cart 20 6 7.0 140 6 6.8 136 6 6.1 122 Urea kg 2.40 4.4 5.1 12 4.4 5.0 12 2.2 2.2 5 TSP kg 2.06 0 0 0 0 0 0 0 0 0 Labor (hired) Man-day 18 2 2.3 42 2 2.3 41 0 0 0 Bullock Bu.-ay 25 3 3.5 88 3 3.4 85 3 3.0 75 Water Charge ac 14 16 16 14 324 316 239

Kharif Fodder (berseen) 1.44 1.39 1.22 Seed kg 6 8 11.5 69 8 11.1 67 8 9.8 59 Manure Cart 20 5 7.2 144 5 7.0 140 5 6.1 122 Urea kg 2.40 10.9 15.7 38 10.9 15.2 37 5.5 6.7 16 TSP kg 2.06 0 0 0 0 0 0 0 0 0 Labor (hired) Man-day 18 5 7.2 130 5 7.0 126 0 0 0 Bullock Bu.-day 25 5 7.2 180 5 7.0 175 5 6.1 153 Water Charge ac 14 20 19 17 581 564 3 67

All Crops 10.13 9.41 7.99 Seed 7/ kg 1,495 1,374 1,143 Manure Cart 64.2 1,284 59.6 1,192 50.4 1,008 Ures kg 293.0 704 269.5 648 113.1 271 TSP kg 141.5 292 129.7 268 54.2 112 Labor (bired) Man-day 52.4 945 48.6 875 0 0 Bullock Bu.-day 70.7 1,768 65.3 1,633 54.8 1,371 Water Cbarge ac-301 278 233

C. NET PRODUCTION VALUE

Wheat 2,122 1,445 849 Sugarcane 2,299 1,533 791 Kharif Fodder (maize) 1,005 787 427 Rabi Fo4der (beraeem) 1,412 1,096 627 6,838 4,861 2,694

1/ Except for manure, labor and bullock. Farm area reduced to 8.4 ac. Farm area reduced to 7.2 ac. 4/ Net of transportation costs from farm to market or mill. 5/ 37.324 Kg. 6/ Including transportation costs from sales point to farm. 7/ Including cuttings. PAKISTAN

FOURTH10A1060E PROJECT

ECONONICBENEF ITS ANDCOSTS

(RS MILLION)

1 2 3 4 5 6 7 0 9 10 11 12 13 14 15 IA ------…------

PRD, OENEF.WITH PROJ. 227,4 291,6 402, 417,6 442.8 406.0 523.2 527,6 542.0 544.4 540.6 534.4 530.7 526.9 523.0 519.3 PRD. BEREF,A-ROUT PROJ. 227.4 209,7 309,9 304.0 377,3 373.0 360.6 352.2 345,3 334.0 320.7 319.7 313.6 3076 300.0 294.9

1NCR.PROD. BENEF. - 1.9 13.3 32.7 66,5 113.5 154,7 175,4 196.7 209.6 211.9 214.0 217.1 219.3 222.1 224.4

PRD. COSTSAlTO PROJ. 192.0 210.5 232.4 234,6 237,9 235.8 239,0 242.3 243.4 241.5 231.0 231.1 230,4 229.6 220.7 227.9 PROSCOSTS A-ROtT PRO.J 192.0 203,1 221,2 220.9 220,6 220.3 220,1 210,0 217.5 213.3 195,8 194.5 193.3 191.9 190.4 139.0

I0CR. PROD.CISTS - 7.5 11,2 13.6 17,3 15.5 19, 23.5 25.9 20.2 35.9 36.6 37,1 37.7 30,3 38.6

ND-AORIC.BEHEF. - 1.0 2.1 2.5 4.1 4.1 4.1 4.1 4.1 4.1 4.1 4.1 4.1 4.1 4.1 4.1

INVESIMENOCOSIS 151, 149.6 177 175.0 162.2 -16.7 - - - - 5.9 6,0 6.0 6.0 6.0 0.0 UIN COSTS 0.6 2.5 5,6 0.3 12,2 11.6 11,6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6

IRV, AND010 COSTS 152.5 152.1 105.4 103.3 174.3 -5.1 11.6 11.6 11.6 11.6 17.5 17.5 17.6 17.6 17.6 12.0

TOTALPROJECT BENEFITS - 2.0 15.4 35.3 70.6 117.6 150.0 179.5 200.0 213.7 216.0 210.9 221.2 223.4 226.2 226.15 TRIALPROJECT COSTS 152.5 159,5 196.5 096.9 190.6 9.6 31.3 35.1 37.6 39.9 53.4 54.1 54.7 55.3 55.0 51.5

NETPROJECT BENEFITS -052.5 -156. -101.2 -060.7 -121,0 100.0 127.4 044.4 063.2 173.9 062.6 064.0 066.5 060.1 070.4 077.2

------

17 10 19 20 21 22 23 24 25 26 I27 20 29 30

PROD.BENEF. WITH PROJ. 515.4 511.0 506.0 499.7 496.3 492.7 409,3 405.7 403.1 470.0 474.5 471.4 460.0 462.6 PMD. BENEF.0-BIT PROJ. 200.0 202.9 274.5 264.0 259,2 251.5 240,0 242.4 237.0 229.5 224,0 210.9 203. 205.8

10CR,PROD. DENEP. 226.6 228.9 230.6 214,9 237.0 239.2 240.1 243.3 246.0 240.6 250.5 252.5 254.4 256.9

PROD.COSTS AlTO PROJ. 227.0 226.1 225.3 222.6 213.4 212.6 200.8 201.0 210.6 2.09.0 209. 200.2 207.5 205.1 PROD.COSTS N-ROUT PROJ. 107.6 106.2 104.0 100.9 164.6 163.4 162,1 160.0 159.7 150.4 157.1 155.9 154.6 151.2

10CR.PRD. COSTS 39.4 39,9 40.5 41.7 40.7 49,2 49,7 50.2 50. 51.4 51.9 52.4 52.9 53.9

ONOIAGRIC.BENEF. 4.1 4.1 4.1 4.1 4.1 4.1 4,1 4.1 4.1 4.1 4.1 4.1 4.1 ,11

INVESTMENTCOSTS - - - - 5,9 6.0 6.0 6,0 6,0 0.9 - - - - 008COSTS 01.6 00.6 10.6 11.6 10.6 016 1.6 111006 11.6 00.6 00.6 10.6 10.6 11.6

1RV.AND DIM COSTS 01.6 10.6 01.6 01.6 07.5 17.5 17.6 07.6 07.6 12.5 11.6 01.6 01.6 10.6

TOTALPRJECT BENEFITS 230.7 233.0 235.7 239.0 241,2 243.3 245.4 247.4 250.1 252.6 254.6 256.6 205 261.0 TOTALPROJECT COSTS 51.0 51.5 52.1 53.3 66.2 66.7 67,3 67.8 68.5 63.9 62.5 64.0 64.5 65.5

NETPROJECT BENEFITS 179.7 101.4 183.6 105.7 175.0 176.5 170,1 179.6 101,7 100.0 191.1 192.6 194.0 195.4bX

ALpr11 25, 1903 PAKISTAN

FOURTH DRAINAGE PROJECT

Economic Price of Wheat

1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1995 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1995-96

Canadian, in Store Thunderbay Current US$/t 1/ 196 167 171 184 197 217 239 263 290 319 427 Constant 1983 US$/t 171 171 171 178 185 192 200 207 207 Index 100 107.5 115 121.9 129.2 137 145.2 153.9 206

x Exchange Rate (Rs 13/US$) Constant 1983 Rs/t 2,223 2,223 2,223 2,314 2,405 2,496 2,600 2,691 2,691 x Adjustment Factor (1.062 2/) CIF Karachi 2,361 2,361 2,361 2,457 2,554 2,651 2,761 2,858 2,858

Plus: Port Charges 8.6 9.3 10.0 Bagging 10.0 10.8 11.6 Loading/Unloading 6.0 6.5 7.0 Rail Transport to Faisalabad 207.5 224.1 241.5 Transport Station to Market 25.0 27.0 29.1

Total Additions 257.1 277.7 299.2 x SCF 3/ of 0.9 (rounded) 269 269 269 269 269 269 269 269 269

Less: Transport Farm to Market 4/ 50.0 54.0 58.2 x SCF of 0.9 (rounded) 52 52 52 52 52 52 52 52 52

Farm Gate Price (import parity) 5/ 2,578 2,578 2,578 2,674 2,771 2,868 2.978 3,075 3,075

Farm Gate Price (export parity) 5/ ------2,537 2,537

1/ World Bank, EPDCE, December 1982. 2/ Based on FY77-81 relationship between import unit values and prices of reference quality (Canadian No. 1 Western Redspring, in store, Thunderbay). 3/ Standard conversion factor. 4/ Average distance 4-6 miles (6-10 km). 5/ Pakistan is expected to become self-sufficient in wheat by the mid-1980's, and a net exporter by the end of the decade.

31x PAKISTAN

- FOURTH DRAINAGE PROJECT

Economic Price of Sugarcane

1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1995 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1995-96

ISA Daily Sugar Price, FOB Greater Caribbean Ports Current US$/t 1/ 374 190 210 313 467 495 524 556 589 624 835 Constant 1983 US$/t 210 291 406 406 406 406 406 406 406 Index 100 107.5 115 121.9 129.2 137 145.2 153.9 206 x Exchange Rate (Rs 13/US$) Constant 1983 Rs/t 2/ 2,730 3,783 5,278 5,278 5,278 5,278 5,278 5,278 5,278

Plus: Port Charges 10 Loading/Unloading 7 Rail Transport to Faisalabad 241.5 Transport Station to Market 29.1 Total Additions 287.6 x SCF 3/ of 0.9 (rounded) 259 259 259 259 259 259 259 259 259

Less: Transport Mill to Market 12.0 12.9 14 Processing 1,041 1,124.3 1,212 1,226 x SCF of 0.9 (rounded) 1,103 1,103 1,103 1,103 1,103 1,103 1,103 1,103 1,103 Price ex-Mill of Sugar 1,886 2,939 4,434 4,434 4,434 4,434 4,434 4,434 4,434

Sugarcane Equivalent 4/ 155 242 365 365 365 365 365 365 365

Less: Transport Farm to Mill 5/ 26.8 28.9 31.2 x SCF of 0.9 (rounded) 28 28 28 28 28 28 28 28 28 Farm Gate Price of Sugarcane 214 33737 t (import parity)

1/ World Bank, EPDCE, December 1982. 2/ CIF Karachi. 3/ Standard conversion factor. 4/ Based on an extraction rate of 8.23%. > 5/ Rs 1 per maund (37.324 kg) for distances up to ten miles from mill. (D PAKISTAN

FOURTH DRAINAGE PROJECT

Economic Price of Fertilizers

1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1995 1981--82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 _9_'-96

Urea, Bagged, FOB NW Europe Current US$/t 1/ 216 160 200 231 267 296 328 363 402 445 t018 Constant 1983 US$/t 200 215 232 243 254 265 277 289 300

TSP, Bulk, FOB Florida Current US$/t 1/ 161 140 172 194 218 236 256 278 302 327 439 Constant 1983 UhS$/t 172 180 190 194 198 203 208 212 213

Index 100 107.5 115 121.9 129.2 137 145.2 153.9 206

Constant 1983 Rs/t (Rs 13/US$) Urea 2,600 2,795 3,016 3,159 3,302 3,445 3,601 3,757 3,900 TSP 2,230 2,340 2,470 2,522 2,574 2,639 2,704 2,756 2,769 x Adjustment Factor (1.2 2/),CIF Karachi Urea 3,120 3,354 3,619 3,791 3,962 4,134 4,321 4,508 4,680 TSP 2,683 2,808 2,964 3,026 3,089 3,167 3,245 3,307 3,323

Plus: Port Charges 8.6 W Loading/Unloading 6 Rail Transport to Faisalabad 221.3 Transport Station to Bulk Depot 15 Storage and Handling 33 Transport to Sales Point 15 Transport to Farm Gate 40 Total Additions 338.9 366 394.6 x SCF 3/ of 0.9 (rounded) 355 355 355 355 355 355 3-5 355 355

Farm Gate Price 4/ - Rs/t Urea 3,475 3,709 3,974 4,146 4,317 4,489 4,676 4,863 5,035 TSP 3,038 3,163 3,319 3,381 3,444 3,522 3,600 3,662 3,678

Farm Gate Price 4/ - Rs per 50 kg Bag Urea 174 186 199 207 216 225 234 243 252 TSP 152 158 166 169 172 176 180 183 184

1/ World Bank, EPDCE, December 1982. 2/ Based on past relationship of fertilizer import unit values and prices of reference quality (average of urea, DAP and TSP). H . 3/ Standard conversion factor. 4/ Import parity. - X -74- PLATE I

PAKISTAN FOURTHDRAINAGE PROJECT Water Balance (Present) Indus Plainsand PeshawarVale

RIVERINPUT 152million acre feet Evaporation

101 Canass

V < 9~~~~~~~~~~~~~~~~~~-33 '

6

Percolation 3 4

Municipal 1Eaoain_ and ndustrial Eva39ratn o

Source: PlanningDivision Waterand PowerDevelopment Authority World Bank-24494 PAKISTAN FOURTHDRAINAGE PROJECT Organizational Chart (Drainage Components)

General Manager (Central-Water) WAPDA

Chief Engineer (Faisalabad) WAPDA

TechnicalExperfs Project Director Deputy Proj.Dir. (Dreinage)p (Faisalabad) PlanningDesign WAPDA (SuperintendingEngr.)

SeniorEngineer SeniorEngineer SeniorEngineer 1SeniorEnginee Senio Enginee SeniorEngineer Const.Division I Const.Division 11 Const DivisionIII SurveyDieis on Workshop Operaion Division (Pipe Drainage) (Pipe Drainage) (SuifaceDrainage) J rW s-i

[L<.IlJE-2 JE-3 IT 4 JE-1 JE4 J15 JE-2 JE-3 J Ei LEJ2 [ f JE-j[4 Junior Engineers

World Bank- 24492 til - 76 -

PLATE III PAKISTAN FOURTHDRAINAGE PROJECT Organizational Chart (On-FarmWater Management Component)

Secretary Punjab'sDept. of Agr.

DirectorGeneral OFWMDirectorate

DirectorField

Deputy Director Area Coordinator (FaisalabadDivision)

AssistantDirector AssistantDirector Agriculture Engineer I I

Water Management Supr. FieldTeam (3 Number) (3 Number)

FieldAssistants (10 Number)

Water Users' Association

Individual Farmers

World Bank-24493 - _.______-______, ______.. IBRD 16902R 71°30' 72°00 72°30' 7300' PI

PAKISTAN PAK I STAN AJ / P~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~indiBhattian Oo/ FOURTH DRAINAGE PROJECT

Proiect Units Existing: Irrigation System Branch Canalshcko Distributary Canals -3130' DrainageSystem Ku in~ 4-- Main Drains - Other Drains F L A

oZ2Rivers O Pands } Towns0 and Villages Metalled Roads n Railways

International Boundaries

01 10 20 30 40 KILOMETERS

3P00,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~101

71°30'

i AFGHANISTAN >Jk-on 1bd|

j ~~~~~~~~~~~~~~~n~~~~dhibacnwali

INDIA

Aathian Sea7 _ I 1 7200' To Khernewa/ 72°30' 73'00' 73°30'