Documentof The WorldBank FOR OFFICIALUSE ONLY Public Disclosure Authorized RepurtNo. 10725 PROJECT COMPLETION REPORT PAKISTAN Public Disclosure Authorized RESERVOIR MAINTENANCE FACILITIES PROJECT (LOAN 2247-PAK) JUNE 15, 1992 Public Disclosure Authorized Agricultural Operations Division Public Disclosure Authorized Country Department III South Asia Regional Office This documenthas a restricteddistribution and maybe usedby recipientsonly in the performanceof their official duties. Its contentsmay not otherwisebe disclosedwithout World Bank authorization. CURRENCY EOUIVALENT US$1 = £O.606 ACRONYMS AND ABBREVIATIONS BCM - Billion Cubic Meters ha - Hectare km - Kilometer KW - Kilowatt M - Million B - Billion MCM - Million Cubic Meters MW - Mega Watt CRR - Chief Resident RepresentAtive ECNEC - Executive Committee of the National Economic Council GOP - Government of Pakistan IBDF - Indus Basin Development Fund IRC - Indus River Contractors LC - Letter of Credit O&M - Operation and Maintenance ODA - (British) Overseas Development Administration NOC - No Objection Certificate OED - Operations Evaluation Department PC-i - Project Concept - 1 SAR - Staff Appraisal Report PCR - Project Completion Report USAID - U.S. Agency for International Development TDF - Tarbela Development Fund WAPDA - Water and Power Developmnent Authority FISCAL YEAR JULY 1-JUNE 30 T:1E WORLD BANK FOR OMCIALUSE ONLY Washington,D.C. 20433 U.S.A. Sinceof Director.Genwal Opeation Evaluation June 15, 1992 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report - Pakistan Reservoir Maintenance Facilities Project (Loan 2247-PAK) Attached. for your information, iB a copy of a report entitled "Project Completion Report on Pakistan - Reservoir Maintenance Facilities Project (Loan 2247-PAX)", prepared by the South Asia Regional Office. No audit of this project has been made by the Operations Evaluation Department at this time. Attachment IThis documenthas a restricteddistribution and may be usedby recipientsonly in the performance |of their official duties.Its contents may not otherwisebe disclosedwithout World Bankauthorization. FOR OFFICIAL USE ONLY PROJECT COMPLETIONREPORT PAKISTAN RESERVOIRMAINTENANCE FACILITIES PROJECT (LOAN 2247-PAK) TABLE OF CONTENTS Page No PREFACE EVALUATIONSUMMARY iii PART I PROJECT REVIEWFROM BANK'S PERSPECTIVE. 1 Project Identity ............ ..... ,............. 1 Background ....................... o ... 1 Project Objectives and Descriptions ........................... 2 Project Design and Organization .................................3 ProjectImplementation .4...... ..................... .... 4 ProjectResults .7...... ..................... 7 Project Sustainability................ .... ...... 9 Bank Performance ......... .*00.#.. $.10 BorrawerPerformance ....................... .12 Project Relationship ................. .. .... 13 ConsultingServices ................... .. 14 Project Documentation and Data .................................. 15 PART It PROJECT REVIEW FROM BORROWER'S PERSPECTIVE 15 ProjectDesign ce. .. ............. .. 15 Project I mplementation .. .too..... e 16 Project Results .. o*o.....to...19 ProjeoctSustainability ... *.. *o*o*9o .. ...... 19 Bank Performance ....... ............ 20 Borrower Performance ............. *...20 Project Relationship . ........ .*. ... .......... 21 PART III CONCLUSIONSAND RECOMMENDATIONS 21 PART IV STATISTICAL INFORMATION 24 Project Timetable ........................ Z 4 Loan Disbursements ........................ ... 25 Project Implementation ........................................ 27 Project Costs and Financing ................... 28 Status of Covenants ..... ........................ ........ 29 Use of Bank Resources ......... ...*.... ... 30 MAP IBRD 16630R1 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. PROJECT COMPLETION REPORT PAKISTAN RESERVOIR MAINTENANCE FACILITIESPROJECT (LOAN 2247-PAK) PREFACE 1. This Project CompletionReport: (PCR) reviews performance under the Reservoir Maintenance Facilitiesproject for which a Bank Loan of US$10.2 million was made in December 1983. The project was co-financed by UK Overseas DevelopmentAdministration (ODA) grant of UKR8.5 million, which was later increased to UKE8.9 million during the project implementation. The loan closing date was extended twice by one year to ,une 30, 1991. To accommodate final disbursements,the loan accounts were kept open for about five months beyond the closing date. The last disbursementwas made on December 3, 1991 and the undisbursed balance of $211,092 (2Z of the loan amount) was cancelled as of that date. The UK ODA grant part of the project 49 still on-going and is expected to take about two more years for the grant to be fully disbursed. 2. The PCR was prepared by a Bank Consultant (familiarwith dams safety aspects) for the Agriculture OperationsDivision incorporatingChapter II of the PCR prepared by the Borrower. The preface, the evaluation summary, and Tables 2a, 2b, 3 and 4 (part IV) were preparsd by Bank staff. The Bauikstaff also made several modifications and editorial clhangesto enhance the clarity and improve the sequence of the report. 3. A copy of the draft PCR was sent to the Governmentof Pakistan, Economic Affairs Division and the ODA during early January 1992 for informationand comments. Their comments are duly incorporatedin the PCR. -iii- PROJECT COMPLETIONREPORT PAKISTAN RESERVOIR MAINTENANCE FACILITIESPROJECT (LOAN 2247-PAR) EVALUATION SUMMARY Obiectives 1. The basic objectives of the project were to improve and strengthen the capability of WAPDA to safely operate, maintain and monitor the Tarbela, Mangla and Chasma dams projects and related facilttiesefficiently, by providing the needed buildings (workshopsand warehouses), the Operation and Maintenance (O&M) and dam safety equipment,monitoring instrumentation,and technical assistance for carrying out dam safety inspectionsand overseas training of WAPDA personnel in O&M of dams and dam safety monitoring. Prolect Costs 2. The total project cost was $42.2M (18.OM in local currency and 24.2M in foreign exchange) including $15.6M equivalent in taxes and duties. The Bank loan of $10.2M together with UK (ODA) grant of £8.5M (about $14M equivalent) provided the foreign exchange costs. The UK grant part of the project is still on-going and WAPDA hcs estimated that it will take about two more years for the grant to be fully disbursed. The project costs at closure of the UK grant are estimated at about $35M instead of $42.2M due to reduction in the local costs of buildings and the taxes and duties. ImiplementationExperience 3. Important differencesbetween the planned and actual implementationwere the delayed project start, slow procurement and the two extensions of the Loan Closing date. Firstly the loan effective date slipped by four months due to delay in approval of the project's PC-1 by the GOP Executive Committee of the National Economic Council (ECIEC). Secondly, finding a replacement for the Chief Engineer O&M of Tarbela caused delays in initiationof the project activities, specially of procurement. Other main causes of procurement delays were the delayed preparation and approval of technical specificationsand bid documents, evaluation of bids, processingof letters of credits, (LC) involving rather cumbersomeprocedures, and delayed No Objection certificates (NOC) issued by GOP. 4. Due to serious efforts by the project organizationand the Bank missions and the experience gained by WAPDA, procurement accelerated in 1987 and even more so thereafter. However, because of prolonged delays at the beginning -iv- coupled with the procurement of the needed additionalequipment for dam safety as identifiedby the dam safety inspectionsand approved in 1989, WAPDA could not catch up with the planned schedule and the loan closing date had to be extended to June 30, 1991. 5. Most of the buildings (comprisingnew workshops and warehouses) were not built because WAPDA could buy existing buildings from Indus River Contractors (IRC) at nominal prices. The rehabilitationof existing buildings and constructionof new parking sheds for equipment and vehicles were satisfactorilycompleted with some delays which did not effect project results. The dam safety inspectionsand training of WAPDA personnel in dam saf.ty monitoringwere assessed by GOP/WAPDA to be highly successful and greatly contributingto dam safety. Results and Sustainability 6. While the project as financed by Bank has been successful in meeting its objectivesof strengtheningWAPDA's capability to present level of preparedness for O&M of dams, dam safety monitoring and for undertaking remedial measures as necessary, the continued success/impactof the project will depend on WAPDA's prompt actions in meeting the deficienciescreated from time to time in staff and the O&M budget, and in retaining the required trained personnel. The Tarbela dam inspectionsprovided under the project, resulted in very valuable recommendationsfor the repairs and remedial measures which increased the safety of the dam and provided for efficient dam safety monitoring. It is essential that GOP/WAPDA continue the annual and periodic dam safety inspectionsand place only qualified and experienced engineers and technicians for the O&M and safety monitoring of the dams. Lessons Learned and Recomanendation 7. Lessons from project implementationwhich are relevant