Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: PAD1661 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT Public Disclosure Authorized IN THE AMOUNT OF SDR142.6 MILLION (US$200.0 MILLION EQUIVALENT) TO THE ISLAMIC REPUBLIC OF PAKISTAN FOR A BALOCHISTAN INTEGRATED WATER RESOURCES MANAGEMENT AND DEVELOPMENT PROJECT Public Disclosure Authorized June 7, 2016 Water Global Practice South Asia Region Public Disclosure Authorized 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 (Exchange Rate Effective May 31, 2016) Currency Unit = Pakistan Rupees PKR 104 = US$1 US$1.40288 = SDR 1 FISCAL YEAR July 1 – June 30 ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank GAP Gender Action Plan AGP Auditor General of Pakistan GDP Gross Domestic Product AGPR Accountant General Pakistan GIS Geographic Information Revenues System BCM Billion Cubic Meters GOB Government of Balochistan BSSIP Balochistan Small-Scale GRC Grievance Redressal Irrigation Project Committee CGA Controller General of GRM Grievance Redress Accounts Mechanism CIA Cumulative Impact GRS Grievance Redress Service Assessment IBIS Indus Basin Irrigation System CO Community Organizations IBRD International Bank for CQS Consultant Qualification Reconstruction & Selection Development DA Designated Account ICB International Competitive EA Environmental Assessment Bidding EFA Economic and Financial ICT Information & Analysis Communications Technology EIA Environmental Impact ID Irrigation Department Assessment (Balochistan) EMP Environmental Management IDA International Development Plan Association ERR Economic Internal Rate of IPSAS International Public Sector Return Accounting Standards FBS Fixed Budget Selection IUFR Interim Unaudited Financial FM Financial Management Report FMIS Financial Management IWRM Integrated Water Resources Information System Management FMM Financial Management LCS Least Cost Selection Manual M&E Monitoring and Evaluation FO Farmer Organization Mha Million hectares FWP Future With Project MIS Management Information FWOP Future Without Project System NCB National Competitive Bidding RAP Resettlement Action Plan NGO Non-Government RPF Resettlement Policy Organization Framework O&M Operations and Maintenance SA Social Assessment OM Operations Manual SCF Standard Conversion Factor PDO Project Development SIA Social Impact Assessment Objective SIAMP Social Impact Assessment and PFM Public Financial Management Management Plan PIU Project Implementation Unit SOP Standard Operating PKR Pakistan Rupee Procedures PMU Project Management Unit SSS Single Source Selection PSC Project Steering Committee WB World Bank PSDP Public Sector Development WUA Water User Association Program PSIA Project Supervision and Implementation Assistance QBS Quality Based Selection QCBS Quality & Cost Based Selection Regional Vice President: Annette Dixon Country Director: Patchamuthu Illangovan Senior Global Practice Director: Jennifer Sara (Acting) Practice Manager: Meike van Ginneken Task Team Leaders: William Young/Mahwash Wasiq/Muhammad Riaz PAKISTAN BALOCHISTAN INTEGRATED WATER RESOURCES MANAGEMENT AND DEVELOPMENT PROJECT TABLE OF CONTENTS I. STRATEGIC CONTEXT .................................................................................................1 A. Country Context ............................................................................................................ 1 B. Sectoral and Institutional Context ................................................................................. 1 C. Higher Level Objectives to which the Project Contributes .......................................... 4 II. PROJECT DEVELOPMENT OBJECTIVES ................................................................4 A. PDO............................................................................................................................... 4 B. Project Beneficiaries ..................................................................................................... 5 C. PDO Level Results Indicators ....................................................................................... 5 III. PROJECT DESCRIPTION ..............................................................................................5 A. Project Components ...................................................................................................... 6 B. Project Financing .......................................................................................................... 8 C. Lessons Learned and Reflected in the Project Design .................................................. 9 IV. IMPLEMENTATION .......................................................................................................9 A. Institutional and Implementation Arrangements .......................................................... 9 B. Results Monitoring and Evaluation ............................................................................ 10 C. Sustainability............................................................................................................... 11 V. KEY RISKS ......................................................................................................................12 A. Overall Risk Rating and Explanation of Key Risks.................................................... 12 VI. APPRAISAL SUMMARY ..............................................................................................13 A. Economic Analysis ..................................................................................................... 13 B. Technical ..................................................................................................................... 14 C. Financial Management ................................................................................................ 14 D. Procurement ................................................................................................................ 15 E. Social (Including Safeguards) ..................................................................................... 15 F. Environment (including Safeguards) .......................................................................... 17 G. World Bank Grievance Redress .................................................................................. 18 Annex 1: Results Framework and Monitoring .........................................................................19 Annex 2: Detailed Project Description .......................................................................................25 Annex 3: Implementation Arrangements ..................................................................................40 Annex 4: Implementation Support Plan ....................................................................................57 Annex 5: Economic Analysis .......................................................................................................59 Annex 6: List of Documents in the Project File ........................................................................65 Annex 7: Map IBRD No. 42229 ................................................................................................66 PAD DATA SHEET Pakistan PK-Balochistan Integrated Water Resources Management & Development Project (P154255) PROJECT APPRAISAL DOCUMENT SOUTH ASIA GWA06 Report No.: PAD1661 Basic Information Project ID EA Category Team Leader(s) P154255 A - Full Assessment William Young, Mahwash Wasiq, Muhammad Riaz Lending Instrument Fragile and/or Capacity Constraints [ ] Investment Project Financing Financial Intermediaries [ ] Series of Projects [ ] Project Implementation Start Date Project Implementation End Date 01-Aug-2016 30-Jun-2022 Expected Effectiveness Date Expected Closing Date 01-Sep-2016 31-Oct-2022 Joint IFC No Practice Senior Global Practice Country Director Regional Vice President Manager/Manager Director Meike van Ginneken Jennifer J. Sara Patchamuthu Illangovan Annette Dixon Borrower: Islamic Republic of Pakistan Responsible Agency: Balochistan Irrigation Department, Government of Balochistan Contact: Mr. Abdul Hameed Mengal Title: Project Director Telephone No.: 92812870705 Email: [email protected] Project Financing Data(in USD Million) [ ] Loan [ ] IDA Grant [ ] Guarantee [ X ] Credit [ ] Grant [ ] Other Total Project Cost: 209.70 Total Bank Financing: 200.00 Financing Gap: 0.00 i Financing Source Amount BORROWER/RECIPIENT 2.00 International Development Association (IDA) 200.00 LOCAL BENEFICIARIES 7.70 Total 209.70 Fiscal Year 2017 2018 2019 2020 2021 2022 2023 Annual 10.00 20.00 30.00 40.00 40.00 40.00 20.00 Cumulative 10.00 30.00 60.00 100.00 140.00 180.00 200.00 Institutional Data Practice Area (Lead) Water Contributing Practice Areas Agriculture, Climate Change, Environment & Natural Resources Cross Cutting Topics [ X ] Climate Change [ X ] Fragile, Conflict & Violence [ X ] Gender [ ] Jobs [ ] Public Private Partnership Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Mitigation Co- Co-benefits % benefits % Agriculture, fishing, and forestry Irrigation and drainage 60 20 Agriculture, fishing, and forestry Forestry 10 20 Public Administration, Law, and Public administration- 10 20 Justice Water, sanitation and flood protection Water, sanitation and flood protection Water supply