Document of The World Bank FOR OFFICIAL USE ONLY ~/ ? /jLp/52>- /~k Report No. 9142-PAK STAFF APPRAISALREPORT PAKISTAN THIRD ON-FARM WATER MALNAGEMENT PROJECT May 2, 1991 Europe,Middle East and North Africa Region Country DepartmentI AgricultureOperations 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. Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
Transcript
Document of
The World Bank
FOR OFFICIAL USE ONLY
~/ ? /jLp/52>- /~k Report No. 9142-PAK
STAFF APPRAISAL REPORT
PAKISTAN
THIRD ON-FARM WATER MALNAGEMENT PROJECT
May 2, 1991
Europe, Middle East and North Africa RegionCountry Department IAgriculture Operations Division
This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.
I maund - 82.3 lbs (0.0367 'g ton) - 37.32 kg (0.0373 t)26.8 maunds - 2,205 lbs - 1.0 t27.2 maunds - 1.0 lg ton (2240 lbs) - 1,016 kg
FISCALS .
July 1 to June 30
ABBREVIATIONS AND ACRONYMS
ADB Asian Development BankADP - Annual Development ProgramECNEC - Executive Committee of the National Economic CouncilFATA Federally Administered Tribal AreasFANA Federally Administered Northern AreasFCU - Federal Coordination UnitFGW - Fresh GroundwaterFWMC - Federal Water Management CellGOP - Government of PakistanGOProvinces Provincial GovernmentsGOPunjab Government of PunjabIrB International Competitive BiddingIrAD * International Fund for Agricultural DevelopmentIIS - Indus Irrigation SystemLCB Local Competitive BiddingM * MillionMinFA Ministry of Food, Agriculture and CooperativesMRES - Mona Reclamation Research Sration (WAPDA)M&E Monitoring and EvaluationNESPAK - National Engineering Services Pakistan (PVT) LimitedNWFP North West Frontier ProvinceO0H * Operation and MaintenanceOFWM - On-Farm Water ManagementOFUM I - First IDA assisted OFWM Project (Cr. 1163-PAK)OFUM II - Second IDA assisted OFwM Project (Cr. 1603-PAK)PLL - Precision Land LevelingPPM * Parts per MillionRAP - Revised Action Programme for Irrigated AgricultureSCARP Salinity Control and Reclamation ProjectSGW - Saline GroundwaterSOE * Statement of ExpendituresTA * Technical AssistanceTDS * Total Dissolved SolidsTW TuoewellUNDP * United Nations Development ProgramUSAID - United States Agency for International DevelopmentWAPDA - Water and Power Development AuthorityWMED - Watercourse Monitoring and Evaluation Directorate (WAPDA)WUA - Watir Users AssociationW/C * Watercourse
GLOSSARY
barani rainfed area with some interspersed small irrigation schemeschak tertiary irrigation command (about 1/5 ha)kareze - traditional irrigation system with tunnel chairnelkatcha earthenkatcha nucca * irrigation outlet in earthen bankmogha - uncontrolled outlet from parent channel to chaknullah * intermittent, non-perennial streampucca permanent-pucca nucca masonry,'concrete outlet to farm units and fieldssailaba - flood plainsarkari khal - communal portion of watercoursewarabundi - weekly rotational schedule of irrigation deliveries to farmerswatercourse - irrigation distribution system within a chak
FOR OFFICIAL iuSE ONLY
PAKISTAN
THIRD ON-FARM WATER MANAOENF.EI pROJECT
STAFF APPRAISAL REPORT
Table of Contents
Page No.
LOAN/CREDIT AND PROJECT SUMMARY .............................. i-ii
I. BACKGROUND ................................................... 1
Introduction ................................................. 1Demographic and Physical Features ............................ 1Agriculture and Its Performance .............................. 1Irrigated Agriculture and Water Management ................... 2Government Policy and Bank Group Assistance Strategy .... ..... 5IDA Financed OFWM Projects ................................... 5Impact of OFWM Projects ...................................... 6Lessons Learned .............................................. 6Issues ............... ........................................ 7Rationale for Bank Involvement ............................... 9
II. THE PROJEC T. 9
Areas. 9Objectives ......... 10Description ......... 11Civil Works ......... 11Equipment ....... 17Technical Assistance .......................................... 17Monitoring and Evaluation .............. ...................... 17Training ............................................... 18Supervision and Administration ......... ...................... 18
III. PROJECT COST. FjINANCING AND PROCUREMENT ...... ................ 18
IV. PROJECT IMPLEMENTATION............................... 24
Institutional Arrangements ............................... 24Monitoring and Evaluation ............................... 30Operation and Maintenance ............................... 31Implementation Schedule ............. ................. 31
This document has a restricted distribution and may be used by recipients only in the performan,..of their offlcial duties. Its contents may not otherwise be disclosed without World Bank authorization.
Tble of Contents (cont'd)
Pate No.
V. PRODUCTION. MARKETING AND PRICES. FM INCONME. COST RECOVERY .. 32
Production ..................................... 32Marketing and Prices ...................................... 33Farm Income ..................................... 34Cost Recovery ............................................... 35
VI. BENEFITS AND JUSTIFICATION . ................................... 37
Production and Employment ...................................... 37Economic Analysis ............................................ 38Sensitivity and Risks ......................................... 39Environmental Issues .......................................... 39
VII. AGREEMENTS REACHED AND RECOMMENDATION ....... .................. 40
4. Financial and Economic Tables- Table 1: Cropping Patterns and Yields- Table 2: Summary Farm Budgets- Table 3: Total Project, Financial Farm Budget- Table 4: Prices Used in Financial and Economic Analysis- Table 5: Economic Benefits and Costs
5. Irrigation Agronomy
6. Terms of Reference for Supervisory Consultants
7. Monitoring and Evaluation
8. Implementation Schedule
PIATE I Indus Plain and Peshawar Vale Water BalancePLATE II Procedure for Reconstructing Earthen ChannelsPLATE III Watercourse Outlet (Pucca Nucca) DrawingPLATE IV Organizational Chart - BalochistanPLATE V Organizational Chart - North West Frontier Province (NWFP)PLATE VI Organizational Chart - PunjabPLATE VII Organizational Chart - SindhPLATE VIII Organizational Chart - Northern AreasPLATE IX Federally Administered Tribal Areas (FATA)PLATE X Federal Coordination Unit
IBRD 22652 Punjab ProvinceIBRD 22653 Sindh ProvinceIBRD 22654 Balochistan ProvinceIBRD 22655 NWFP and FATAIBRD 22656 Northern Areas (Gilgit)
PAKISTAN
THIRD ON-FARM WATER MANAGE4ENT PQIE
LWN/CREDIT AND PROJECT SUMOyktY
Borrover: Islamic Republic of Pakistan
Beneficiaries: About 250,000 farm families in Balochistan, North WestFrontier, Punjab and Sindh Provinces, Federally AdministeredTribal and Northern Areas.
A"mout: US$83.6 million (loan US$36.3 million; credit SDR 33.4million, or US$47.3 million equivalent)
Terms: Twenty years, including a five-year grace period, at theBank's standard variable interest rate, for the loan;standard, with 35 years maturity, for the credit.
RelendintTerms: Not applicable.
Qigect The five-year project (FY91-95) would provide for renovatingDa8cription: about 7,700 watercourses, precision leveling of 55,000 ha, and
construction of 500 water storage tanks in the four Provinces,FATA and Northern Areas. Project objectives are to: increaseagricultural production through effective use of water savedby improved water management; strengthen the capability of theimplementing agencies; enhance farmer participation throughstronger Water Users Associations (WUA); and reduce governmentfinancial obligations through improved cost recovery programs.
Estimated Cost:/ Local Lorgin Total---- US$ m --------
Civil Works (including farmers'cash cost (US$5.2 M]) 64.4 6.5 70.9
1.01 Because of the positive impact of the first two IDA assisted On-Farm Water Management Projects (OFWM I, Cr. 1163-PAK; and OFVM II, Cr. 1603-PAK) and the strong demand from farmers for continued OFWM activities, theGovernment of Pakistan (GOP) requested the Bank Group to finance a third OFWMproject (OFWM III). GOP has decided that, in addition to covering irrigatedlands in the four Provinces, Balochistan, North West Frontier Province (NWFP),Punjab and Sindh (Indus Irrigation System), as under OFWM II, this new projectshould give increased emphasis to barani areasl and also cover irrigatedlands in the Federally Administered Tribal Areas (FATA) and Northern Areas(FANA). This report is based on GOP's feasibility reportV (financed underthe Second Irrigation Systems Rehabilitation Project, Cr. 1888-PAK) and thefindings of an appraisal missiont1 which visited Pakistan during May/June1990.
Demographic and Physical Features
1.02 Pakistan's population is over 100.0 M and growing at an annual rateof 31, and may thus reach about 145.0 M by the year 2000. Over 70X of thepopulation lives in rural areas. The average annual per capita income isabout US$370 equivalent. About 301 of the population is estimated to haveannual income below the absolute poverty level (US$150).
1.03 Pakistan covers an area of about 80.0 M ha of mainly arid and semi-arid land. Approximately 20.0 M ha are cultivated (16.5 M ha irrigated),3.0 M are exploitable forest and 8.0 N ha are rangelands. Much of the centralIndus plain, the main agricultural producing region, receives less than 150 mmof rainfall annually whereas pan evaporation is more than 1,250 mm, whichmakes irrigation a necessity.
4 rlculture and Its Performance
1.04 Agriculture is the most important sector in the economy in terms ofcontribution to gross domestic product, foreign exchange earnings, andemploy;ment generation. Irrigated land produces 901 of total farm output.Major crops are wheat, cotton, rice and sugarcane, which cover 62X of theannual sown area. During the Sixth Five-Year Plan (FY84-88), agriculture grew
I/ Rainfed area with some interspersed small irrigation schemes.
2/ On-Farm Water Management - III Project. Feasibility Study. Main Report,National Engineering Services Pakistan (PVT) Limited, et al, May 1990.
2/ The mission comprised Messrs. Peter Streng, C.P. Cheng, Warren D.Fairchild (Bank), M. Ashraf and K. Baum (consultants).
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at 3.8X annually against a target rate of 4.9X. Major crops productiongenerally met or was close to plan targets. Value added in major crops isestimated to have grown 3.1X in FY90 whereas minor crops achieved theirhighest growth rate (42) for the last five years. Considerable variationsexist in annual and seasonal production due to climate (the poor wheat harvestin 1986 was caused by late rain), pest incidence (cotton suffered heavy lossesin 1985) and uncertain irrigation supply. The sector is further constrainedby structural and institutional weaknesses which contribute to its unevenperformance; e.g., wheat production in FY90 was reduced because of a shortageof fertilizer at time of sowing. Even with recent significant increases inagricultural production, average yields for major field crops in Pakistanremain well below those of other developing countries.
Irrigated Agriculturg and Water Management
1.05 Irrigation in Pakistan can be divided into two categories, the IndusIrrigation System (IIS) serving about 12.0 M ha, and small systems servingabout 4.5 M ha in the barani (rainfed) areas. The IIS is the largestcontiguous irrigation system in the world and is publicly operated andmaintained. Because of low precipitation (para 1.03), very little rainfedagriculture is possible in the command area. Irrigation systems in baraniareas are scattered and vary considerably as to size of command, source, dutyand dependability of water supply. Generally these systems are operated bythe private sector for supplemental irrigation.
1.06 Indus Irrigation Svstem. Development of IIS started in the late18OOs. Today it comprises the Indus river and its major tributaries, 3 majorreservoirs (about 19,000 M me of conservation storage), 19 barrages/headworks,and 43 canal commands. The total length of canals is about 57,200 km. Thereare about 107,000 chaksl, which cover on average about 175 ha and serve about40 farms. The watercourses (W/Cs), farmer branches, and field ditches servingthe chaks run another 1.6 M km. Approximately 125,000 N m3 of surface wateris diverted annually into this canal system. In addition, about 12,500 publictubewells (TWs) and over 225,000 private TWs pump 43,000 H me of groundwaterannually for irrigation (see Plate I for water balance).
1.07 Through the years, the increased diversion of surface water forirrigation has significantly altered the hydrological balance in the IndusPlain. As a result, the groundwater table has risen to a critical stage overa large area. WAPDA's Indus Basin Salinity Survey (1981) indicated that 22Xof IIS (about 3.6 M ha) has a groundwater table within 2 meters of landsurface. This high water table increases the prevalence of salinity in thesoil profile and areas of problematic soils, which in turn reduces cropproduction. Overall system irrigation delivery efficiencies are low. Variousstudies by WAPDA indicate that about 25X of diverted surface supplies are lostbefore reaching the chaks. Operation and maintenance (O&M) of watercourseswithin chaks, which is the responsibility of farmers, has been poorhistorically, resulting in excessive delivery losses. Farmers in the mid and
I/ Tertiary irrigation command.
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tail re&'hes generally receive less water than their planned share. In short,the increasingly serious problems of waterlogging and poor water managementare major constraints to raising agricultural production.
1.08 Irrigation in Barani Areas. Except for some small water storagereservoirs and a limited number of public TWs, irrigation outside IIS has beenlargely developed by farmers. The water sources for these scattered systemsare groundwater, perennial streams, non-perennial flood flows (known as"sailaba" irrigation), karezes (underground tunnels), seeps and springs, andstorage reservoirs. Water delivery varies considerably because ofdependability of source, cost of producing water and location -- in areas ofhigher precipitation (500 mm and above), iArigation is supplemental and fewerunits of water are applied than in dryer areas where irrigation water isrelied on entirely. Generally, these systems are poorly designed, theinfrastructure is fragile, inefficiently operated with high water losses, andpoorly maintained. However, irrigation water from these systems is the basisfor a degree of stable agricultural production, which is extremely importantto the farmers since it provides insurance against the vagaries of rainfall.Hence, the marginal value of such water is relatively high.
1.09 On-Farm Water Management Program. A series of USAID financedexperiments and investigations were conducted in the 1970s at WAPDA's MonaReclamation Experiment Stationi (MRES) to determine: (a) irrigation deliveryefficiencies within chaks; and (b) appropriate policy, program,infrastructural and institutional improvements for increasing theseefficiencies. It was found that water losses in the farmer maintainedcommunal W/Cs ("sakari khal") were between 30X and 50X with additional lossesin the farmer branches and field ditches. Technological development centeredon brick masonry lining of W/Cs, importance of good design and maintenance of"katcha" (earthen) sections, design for "pucca nuccas" (pe- .nent turnouts),and specifications for precision land leveling (PLL). It was also found thatfarmers were extremely interested in increasing irrigation water available forcrop production through application of improved water management practiceswithin their chaks and that they could be organized into groups that wouldprovide labor for civil works construction and assurance for related O&M. Thefindings of these MRES experiments/investigations, later verified inoperational projects and the UNDP financed, World Bank executed Indus BasinPlanning Study (PAK/74/044), formed the basis for subsequent implementation ofon-farm water management (OFWM) projects and programs. The initial five-year(FY77-81) Pilot OFWM Project was supported by USAID, followed by OFWM I (Cr.1163-PAK, cofinanced by IFAD), OFWM II (Cr. 1603-PAK), and OFWM components inseveral irrigation and drainage projects (Khaipur Tile Drainage, Cr. 648-PAK;SCARP Mardan, Cr. 877-PAK; Fourth Drainage, Cr. 1375-PAK; Command WaterManagement, Cr. 1487-PAK; Left Bank Outfall Drain, Cr. 1532-PAK; and SCARPTransition Pilot, Cr. 1693-PAK). Meanwhile, other donors such as ADB, Germanyand United Kingdom (UK) also finisnce OFWM projects in Pakistan. The status ofOFWM projects, using W/C renovation as an indicator, is shown in Table 1.1.After considerable effort only about 16X of all W/Cs have been improved, whichemphasizes the need for massive further OFWM investment.
4
TIZLJJ,: STATUS OF WATERCOURSE RENOVATION UNDER VARIOUS PROJECTS
Proiect Donor Puniab Sindh NWFP BlQf;hiista Totgl
A. Comgleted by June 30. 1990
1. Pilot OFWM USAID 1,083 162 80 5 1,3302. OFWM I IDA/IFAD 2,440 396 269 125 3,2303. D.I. Khan Project ADB - - 568 - 5684. SCARP Harda.a IDA - 670 - 6705. Fourth Drainage IDA 400 - - 4006. OFWM II A/ IDA 3,190 636 344 261 4,4317. Bahawalpur,
1. Fourth Dra!nage IDA 600 - - - 6002. OFWM II M/ IDA - 138 136 229 5033. Command Water Mgt. IDA - 100 108 60 2684. SCARP Transition Pilot IDA 22 - - - 225. LBOD h_ - 678 - 6786. Ghotki FGW Germany - 123 - - 123
Sub-total 622 1,039 244 289 2,194
Total A + B 10.900 3.774 2,361 680 17.7L
C. Total No. of W/Cs S/ 55,000 40,000 10,000 2,000 107,000
A/ Extended to 1991.ki Cofinanced by IDA and Swiss Development Corporation.g/ Figures given by provincial OFWM DirectoriiaIs.
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Government Follow and Bank p go Asgistance Strate
1.10 GOP fully recognizes that the huge investments made in irrigationinfrastructure would be wasted if they are not properly maintained, theefficiency of water delivery and use is not improved, and drainage is notprovided to check waterlogging and soil salinity. The water subsector policiespursued under the Fifth and Sixth Five-Year Plans and continued under the SeventhFive-Year Plan (FY89-93) address these issues. These initiatives grew out of theUNDP financed, World Bank executed Indus Basin Study. The study report±recommended numerous policy and institutional improvements, many of which havebeen adopted by GOP, and placed priority on drainage, rehabilitation, and watermanagement projects. IDA has supported a number of projects in these areasincluding, besides those listed in para 1.09 above, the Salinity Control andReclamation Project (SCARP) VI (Cr. 754-PAK), and the Irrigation SystemsRehabilitation Projects (Cr. 1239-PAK and Cr. 1888-PAK).
1.11 Pakistan's development plans acknowledge that investments made fordrainage and rehabilitation of facilities must be accompanied by measures tostrengthen agricultural input and supptic services and the role of the privatesector if efficient agricultural production is to be achieved. The proposed OFWNIII is intended to address one important part of this agenda, namely themanagement of a key input (water) at the farm level and strengthening ofirrigation agronomy programs (para 4.05). It builds on extensive research (para1.09) and experience gained from the USAID financed pilot project, OFWM I(Project Completion Report, No. 7309, June 24, 1988) and OF14 II.
IDA Financed QFWM Proojects
1.12 Significant features of OFWM I and OFWM II are:
(a) Project components are civil works -- lining and/or earthen improvementof W/Cs, PLL, water storage tanks, demonstration plots; equipment;technical assistance; training; and staff for supervision andadministration.
(b) Farmers participate directly through (i) formation of Water UsersAssociations (WUA) under Provincial ordinances before the start ofrenovation work; (ii) contribution of labor; and (iii) maintenance ofinstalled improvements.
(c) Cost recovery, with beneficiaries sharing a portion of the cost ofcivil works materials, was introduced under OFWM I in Punjab and Sindhand extended to all four provinces under OFWM II (Punjab 25X plusemployment of masons, Sindh 30X, NWFP 101, Balochistan 251).
(d) OFWM Directorates have been established in each Provincial Departmentof Agriculture with an appropriate range of technical and financial
3/ Revised ACtLon PX29X = 8 for Irrigated Agriculture, WAPDA Master Planningand Review Division, May 1979.
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resources for project implementation. Both engineering and agriculturecapability is posted in the headquarters and field offices withemphasis on field teams working directly with farmers and WUAs. Thisataff has been assisted by supervisory consultants and technicalexperts. OFWM Training Institutes/Centers have been established in allProvinces. A Federal Water Management Cell under the Ministry ofAgriculture was responsible for project coordination.
Imact of OQFM Projects
1.13 Although the monitoring and evaluation (M&E) program for OFWM II (para1.16) was until recently fraught with management and technical difficulties, thesubsequent work by WAPDA's Watercourse Monitoring and Evaluation Directorate(WMED), as well as their earlier M&E work and reports on USAID's Pilot Projectand OFWM I provide information on the benefits of OFWM improvements. WAPDA'sfield observations together with interviews of farmers and WUA officials showbenefits from OFWM programs which can be generalized as follows:
(a) W/C renovation reduces conveyance losses between 35 and 50;
(b) the impact on cropping intensities and yields varies considerably bychaks; however, saved water is used by most farmers to irrigate moreland. Increases in intensities generally are in the 10-20X range withyield increases up to 101;
(c) inequity of water supply between head and tail-end fields is reducedfollowing W/C renovation;
(d) siltation and related maintenance need is reduced somewhat because ofhigher flow velocities in renovated W/Cs;
(e) illegal interference with water flow and disputes over water allocationwithin a "warabundi" (weekly irrigation delivery schedule) groupdiminishes.
The above benefits have generated strong farmer support for OFWM projects inrural Pakistan. Consequently, OFWM has been a priority program in GOP's recentFive-Year Plans and Annual Development Programs (ADP).
Lesions Learned
1.14 The project completion report on OFWM I (para 1.11) states thatimplementation was on the whole smooth and without major difficulties but variedin pace from province to province. By the end of the extended project period,all revised targets, except trickle irrigation demonstration, had been achievedor considerably exceeded. The objective of improving the management of land andwater in the renovated W/C commands was not fully achieved because of poorcoordination between the OFWN and Extension Directorates and shortage ofqualified staff. While the project's positive impact on production wasunequivocally acknowledged by farmers and other observers, this impact wasdifficult to quantify because of insufficient data. The economic rate of returnof the project was reestimated to be 291. As important issues for the future of
the OFWM program the completion report listed the need for a more systematicapproach to W/C renovation covering entire command areas of minor or distributarycanals; the need for greater farmer involvement in the~ financing of OFWM works;and the need for adequate W/C repair and maintenance with active involvement ofthe WUAs. Recovery of farmers share in investment cost had been declining underthe project, and WUAs appeared to cease functioning effectively after completionof construction, and to neglect maintenance.
1.15 Lessons learned from OFWM I guided the design of OFWM II, for which IDACredit 1603-PAK was made in September 1985. To overcome the weaknesses in non-structural water management services and enable the Extension Service to assumean expanded role, the project was to provide specialized staff training andimproved coordination between OFWM and Extension. The performance of the WUAswas to be improved through addition of an agricultural officer, plus assistants,to the OFWM field teams. Arrangements were made for better project M&E. Partialrecovery of the cost of construction materials was introduced in Balochistan andNWFP, and rates were increased in Punjab and Sindh. Credit 1603-PAK was extendedtwice by one year each (the current closing date is December 31, 1991) to allowcompletion of an expanded work program and help bridge the gap between theongoing and proposed third project. Physical targets are expected to beachieved. However, the issues noted in the OFWM I completion report have not yetbeen fully resolved.
Issues
1.16 The several deficiencies that have emerged in OFWM I and OFWM II wouldbe addressed in OFWM III.
(a) Efficient translation of saved water into increased agriculturalRroduction (maior project obiective). To date, the emphasis of theOFWM program has been on civil works construction, and equal a.tentionhas not been given to translating saved water into increasedagricultural production. Even though available M&E reports (para 1.13)show increases in cropping intensities and yields, there is room for awider and fuller response. Irrigation agronomy programs in Pakistanmust be strengthened if the full benefits of OFWM expenditures are tobe captured (see para 4.05 and Annex 5 for appropriate follow-upactivities);
(b) Strengthening Water Users Associations. Farmers' participation in OFWHactivities through formal WUAs organized on individual chaks has beenan essential factor in the success of the program. Over 15,000 WUAshave been organized. During construction of civil works, WUA membersare enthusiastic and WUAs function at their peak; subsequently,however, WUAs fail to assume many of the post-improvementresponsibilities intended to be delegated to them, often includingmaintenance of installed works. Fortunately, this does not mean thatmaintenance is not done. The final evaluation report for OFWM I statesthat while only a small percentage of the 40 watercourses observed havebeen maintained through WUAs, the vast majority are being maintained bythe farmers on their own and the rest by the traditional khal
committee./ *W"U4s fail to function as planned because: (i) during theinitial phase of organization, farmers are not fully informed about theprogram and their role in it; and (ii) government follow-up toencourage WUAs in carrying out their responsibilities is inadequate.Besides efficient O&M there are other activities that WUAs couldundertake for the benefit of their members. These include:coordination and procurement of non-water inputs and services; 06M oftubewells in fresh groundwater (FGW) zones; formation of a federationof WUAs for greater farmer involvement in water allocation and O&M ofminors and small tributaries. Farmers must become more involved inthese matters, and the government by encouraging such involvement willbenefit through decreased demand on the treasury and increased revenuefrom additional production (see paras 4.05, 4.08 and 4.09 and Annex 5for follow up activities).
(c) Cost Recovery. Collection of farmers' share of the cost of OFWMmaterials (para 1.12 c) was initially (1984 and 1985) quite good inPunjab (about 90X) but dropped to less than 40X of the amounts due by1990 as the OFWM staff could no longer cope with the increasing numberof farmers involved. Collection in Sindh has been less than 10. InBalochistan and NWFP, collections got off to a slow start in 1988 butare now satisfactory because the program is relatively small and OFWNstaff is able to reach farmers. Recognizing the importance of costrecovery for the sustainability of the OFWM program, GOP andGOProvinces held a special meeting in August 1989. It was decided thatresponsibility for collection in Punjab and Sindh would be transferredto the Revenue Departments, with necessary information supplied by theOFWM Directorates, whereas in Balochistan and NWFP collection wouldremain with the OFWM field staff. At appraisal, assurances were giventhat amounts due under OFWM II in Punjab and Sindh would be fullyrecovered by March 1991. However, the actual level of recoveries fallsfar short of this target. In agreeing on the target date for fullrecovery, the provincial governments had evidently underestimated thedifficulties involved in making appropriate arrangements for datapreparation. Also, the eventuality of revenue staff having toundertake other activities, e.g. population census and campaign work,was not anticipated. A revised and improved cost recovery program isenvisaged under OFWM III, and targets have been agreed for 901 recoveryof amounts due (see paras 5.15, 5.16).
(d) Monitoring and Evaluation. GOP decided that M&E of OFWM II would beundertaken by a local consulting firm, rather than by WAPDA's WMED,which had the assignment in earlier projects. After several years ofweak performance, the government cancelled the contract. Encouraged bythe Bank, the government reassigned the responsibility to WAPDA.WAPDA's staff, under the circumstances, have come up with an acceptabledraft report. It is envisaged that WAPDA will be assigned M&Eresponsibility for this project (see paras 4.16 to 4.18 and Annex 7 forproposed M&E program).
LJ Project completion report for OFWM I, para 3.34.
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(e) Federal Coordination. Project coordination by the Federal WaterManagement Cell (FWMC) in the Ministry of Food, Agriculture andCooperatives has been unsatisfactory. Problems have occurred inprocurement, appointment and management of M&E consultants andtechnical assistance, and handling of the Cell's Special Account.FWMC's role has slowed down project activities in contrast to theprogressive approach of the Provincial OFWM Directorates. FWMC's staffis much larger than that assigned to coordinate comparable multi-provincial Bank Group assisted projects, e.g. Command Water ManagementProject (Cr. 1487-PAK) (see para 4.07 for proposed Federal CoordinationUnit).
Rationale for Bank Involvement
1.17 The Bank's continued involvement in Pakistan's OFWM program isjustified for two reasons: (a) although other donors may finance portions of theprogram, the Bank has the longest experience and thus is best suited to ensurethe successful implementation of this follow-on project, which attempts toovercome weaknesses in earlier projects and includes a number of new policy,institutional and technical initiatives; and (b) Pakistan has about 107,000watercourses, of which up to mid-1990 only about 15,500 had been renovated and2,200 had been scheduled for improvement under several projects (Table 1.1);renovation of the remaining 89,300 watercourses is beyond the capability of GOP,and external financial and technical assistance is still needed to undertake thisimportant work.
II. THE PROJECT
Areas
2.01 The five-year (FY91-95) project would be implemented in all fourProvinces, FATA and FANA, covering about 1.0 K ha. Its size has been determinedby available financing and the capacity of the implementing agencies. With theexception of FATA and FANA, the implementing agencies have 3ained experienceunder OFWM I and OFWM II, as well as other OFWM projects (see Table 1.1). Giventhis experience and the technical assistance to be provided, their capacity isconsidered adequate to carry out the proposed project. Generally, the projectwould be a continuation of OFWM II, but would give greater emphasis to baraniareas, irrigation agronomy, and strengthening formal WUAs for improvedimplementation and O&M of works. The project would finance civil works,equipment, technical assistance, training, M&E, and supervision andadministration (see Annex 1, Tables 1-9, for estimated cost).
2.02 The project would cover most of the irrigated districts served by theIndus Irrigation System, as well as many districts in the barani areas where OFWMpractices are required for irrigations systems served by other water sourcesmentioned in para 1.08 (maps IBRD 22652 to 22656). Specifically, it would be
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implemented in all, or parts of, 17 districts in Balochistan,V 10 districts inNorth West Frontier Province,Z/ 21 districts in Punjab,2I 12 districts in Sindh,Vall political agencies in FATA,I1 and Gilgit in FANA. Specifically excluded fromthe project are chaks improved under OFWM I and OFWM II, and areas covered byOFWM comp-nents under other projects, namely:
(a) IDA supported SCARP Mardan (Cr. 877-PAK), Fourth Drainage (Cr. 1375-PAK), Command Water Management (Cr. 1487-PAK), Left Bank Outfall Drain(Cr. 1532-PAK), SCAR!? Transition Pilot (Cr. 1693-PAK) projects, andsubareas under the proposed Second SCARP Transition project currentlybeing appraised;
(b) ADB supported projects, e.g., Leiah (Punjab) and Paharpur (NWFP) areasplus proposed extensions, North Rohri Fresh Groundwater Tubewellproject (Sindh), Pat Feeder Extension project (Balochistan), SwabiSCARP and Chasma Right Bank (NWFP), and the Ghotki Fresh GroundwaterTubewell project (Sindh) assisted by Germany.
Objectives
2.03 The project has the following objectives:
(a) increasing agricultural production through effective use of irrigationwater saved by improved OFWM practices and a strengthened irrigationagronomy program;
(b) improving the capability of the implementing agencies in the fourprovinces, FATA, and Northern Areas to carry out an expanding OFWMprogram, and facilitating their coordination with the ExtensionDirectorates;
(c) providing for increased farmer participation in WUAs and strengtheningthese organizations to improve water and non-water input management andensure efficient O&M of installed facilities; and
5/ Bajaur, Mohmand, Khyber, Kurram, North Waziristan, South Waziristan.
(d) reducing government's financial obligations through increased costrecovery, and encouraging WUAs to assume O&M responsibilities withinsmaller irrigation commands.
Description
Civil Works (base cost US$70.9 M, including US$5.2 H farmers' cash contribution).
2.04 The project would provide materials, precast structures, personnel andequipment for construction of required civil works. Farmers would provide allunskilled labor, as well as all materials and labor for PLL (paras 2.16-2.18).In Punjab, farmers would also hire masons, which makes up the entire farmer cashcontribution shown above. In the other areas, the implementing agencies wouldemploy the masons. Assurances have been obtained from GOP that all civil workswould be designed and constructed in accordance with technical criteriasatisfactory to the Bank. In practice, such criteria would be those establishedin the 'On-Farm Water Management National Standards for Practices and Materials",Ministry of Food, Agriculture and Cooperatives, GOP, June 1980. These are thesame specifications used for OFWM I and OFWH II. An exception to thesespecifications is the requirement for "first class" brf ks, which are unavailablein most areas of Pakistan. Hence, bricks procured shall be of good quality (freeof flaws, cracks and powdery crust of salts), well fired, and meet the followingminimum standards: (a) standard size (23 cm x 11 cm x 7 cm) with square cornersand parallel sides; (b) absorb no more than 61 of their weight during one hoursoaking in water; and (c) withstand a crushing force of 250 kg/cmo. In addition,all masonry mortar shall have a cement/sand mixture of 1:4 (one part cement tofour parts sand). Concrete for lining and structures shall have a mixture of1:2:4 (1 part cement, 2 parts sand and 4 parts aggregate).
2.05 Generally, civil works in the IIS will be limited to watercourserenovation, including work on farmer branches and field ditches, PLL, anddemonstration centers. The same would be undertaken in the barani areas, but in
addition water storage tanks, diversion structures and channels for floodirrigation in sailaba areas, higher efficiency irrigation technologies(sprinkler, trickle, etc) and hydra ram pumps would be provided. Limitedfacilities would be provided for improving the OFWM Training Institutes, fieldoffices, staff housing and Farmer Training Centers.
2.06 Planning and design of OFWM civil works is a continuing activity.Hence, works to be constructed early in the project period will be planned anddesigned by field teams prior to the start of the project. Completion of plansand designs to meet envisaged targets should not be a problem.
2.07 Table 2.1 lists the major civil works targets. These targets imply asignificant increase in work load over that in OFWM II (100% for Balochistan,NWFP and Sindh) and represent a new activity for FATA and FANA. Except forPunjab, works would be phased in during the first three project years to enableimplementing agencies to post and train additional field teams, as well as workwith farmers and WUAs.
2.08 Watercourse Renovation (base cost US$64.5 H). About 70Z of the W/Csprogrammed for renovation (Table 2.1) are located in the IIS and the remainder inbarani areas. Whereas IIS W/Cs generally command between 75 and 200 ha and serve25 to 50 farms, barani W/Cs vary considerably in size but are normally muchsmaller, commanding 50 ha or less.
2.09 The communal W/C ("sarkari khal") represents about 20X of the W/Clength with the remaining 801 being farmer branches and field ditches. Thecommunal W/C, which conveys a large portion of the irrigation water, would bedemolished, realigned and rebuilt with clean compacted soil at the same site(Plate II). In contrast to the other Provinces, in NWFP the communal W/C islocated on private land which complicates realignment and removal of trees. Evenso, it is important that unnecessary kinks and obstructing trees be removed toreduce water losses and construction costs. As a guide in NWFP, bends in thecommunal W/C should be limited to one every 50 m and lining should not bediverted around individual trees. Precast outlets ("pucca nuccas", Plate III)would be installed at junctions to reduce channel deterioration and water loss,and to improve water control. In addition, at least one "pucca nucca" would beinstalled for each farm and fields difficult to command because of terrain. Forlarger farms one "pucca nucca" could be supplied for each 4 ha. Because 'puccanucca" lids occasionally chip or break, and to facilitate their replacement, allmanufacturers would be required to use standard molds approved by theimplementing agencies. A maximum of four culverts would be installed at majorcrossings in each W/C, and a limited number of check/drop structures and buffalobaths would be installed as required. All buffalo baths would be located within500 m of a village. Where water is sufficiently clean, laundry sites would beprovided near each village as required.
2.10 The standard "pucca" lining in OFWM I and OFWM II was a rectangulardesign using a double-brick masonry wall (23 cm) and a brick masonry bed (7 cm)plastered inside and on top of the wall. This design has proven to be durableand easy to install, but it is relatively costly (about US$7.25/m for W/Chandling 60 1/sec). Research at WAPDA's MRES and trials by the Provincial OFWHDirectorates indicate that other technologies will perform satisfactorily undercertain conditions. For example:
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(a) single-brick masonry wall (11 cm) rectangular and trapezoidal designswith 7 cm masonry bed are satisfactory for W/Cs constructed on or belowgrade and in areas of low traffic; savings are about 40X of materialcosts;
(b) Portland cement concrete wall (1:2:4 mix--7 cm thick) trapezoidaldesign is more difficult to install, but is a good alternative whereacceptable quality bricks are not available; savings are about 40X ofmaterial costs;
(c) three-piece precast slabs are starting to be used--they cost about thesame as double-brick masonry, are relatively easy to install and wouldappear to be a good substitute, especially where good quality brick aredifficult to find.
(d) PVC pipe is cost competitive for low flows (10 1/sec or less) androlling terrain. It is relatively easy to install and has low waterlosses.
2.11 In OFWM II, "pucca" lining was provided for about 15X of the length ofcommunal W/Cs in FGW zones, and 30X in saline groundwater (SGW) zones and reacheswith high losses because of highly permeable soils. The higher percentage ofpucca lining in SGW zones recognizes that deep percolated water in these areas isirretrievably lost for crop production since it becomes part of the brackishgroundwater. Deep percolated water in FGW zones becomes part of terminalgroundwater storage and is available for timely application through pumping.Together with improvements to the "katcha" (earthen) section of the communal W/C,this technology results in an overall reduction in conveyance losses withinchaks by up to one-half. Appropriate renovation of the "katcha" section of thecommunal watercourse is essential because, with proper O&M, about 401 of thewater savings occurs in these reaches.
2.12 This project will provide greater flexibility to (a) encourage farmersto improve their own branches and field ditches, and (b) allow additional liningwhen less costly but acceptable lining technologies are selected by the WUAs (seeTable 2.2 below). This approach makes it possible to reduce water conveyancelosses within chaks without increasing the cost of publicly supplied constructionmaterials. The double-brick (23 cm) and/or three-piece precast slab technologywill be standard and will be used in all elevated and high traffic reaches withinIIS. The "threshold" pucca lining, i.e., with use of standard technology andexisting condition of farmer branches and field ditches, will be up to 10 of thecommunal W/C in FGW areas and 20X in SGW areas. Recognizing the higher value ofirrigation water in barani areas, the percentage of "pucca" lining will be thesame as for SGW areas within IIS. Use of PVC pipe would be encouraged in baraniareas for flows of less than 10 1/sec -- especially in conjunction with tubewellsand water storage tanks. The maximum percentage of "pucca" lining under variousoptions is shown in Table 2.2. Effective implementation of these options willrequire strong and continuing involvement of WUA members in the decision-makingprocess regarding the design of renovp&ed W/Cs. For trapezoidal design, goodcompaction of side slopes is essential to prevent cracking and deterioration. Toovercome this problem, the project will provide each field team with a portablecompactor.
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Table 2.2: MAXIMUM ALLOWABLE (X) "PUCCA" LINING OF COMMUNAL W/C
Fresh Groundwater Saline GroundwaterStandar Les2Cgstlvx Standard Less Costly
a/ Single brick and Portland cement concrete lining.i/ Minimum improvement covering two-thirds commanded land within chak.
2.13 Formal WUAs would be organized and registered on each chak and "katcha"improvement to the communal WZC would be completed prior to installation of any"Rucca" structures (para 4.09). In addition, the following criteria would beused by field teams in setting priorities for chaks to receive OFWM improvements:
(a) farm units operated predominately by low-income farmers with smallholdings (less than 5 ha); and
(c) willingness of the WUA members to improve their farm branches and fieldditches.
Within these criteria, areas would be chosen where groups of five to ten W/Cscould be improved at one time to increase efficiency of the field teams andreduce transportation costs. Also, the implementing agencies should givepreference to chaks served by irrigation channels being rehabilitated by theProvincial Irrigation Departments (PIDs) under the Second Irrigation SystemsRehabilitation Project (Cr. 1888-PAK). Assurances have been obtained from GOPand GOProvinces that criteria satisfactory to the Bank would be followed inselecting l/Cs for improvement as well as in detgrmining the length of WIC liningand the extent of other "Rucca" and "katcha" improvements.
2.14 The following guidelines would be used by field teams in determiningthe lining percentage and selecting reaches of communal W/Cs to be lined:
(a) FGW would be defined as groundwater with less than 1,000 ppm totaldissolved solids (TDS) and SGW with more than 1,000 ppm TDS in theupper 40 m of the soil profile. For planning purposes, the Atlas. SoilSalinity Survey. Irrigated Areas of Indus Basin (41 M acres), WAPDA,1981 would be used in making a general determination of FGW and SGWzones;
(b) sandy soils would be defined as soils with 70% grain size greater than0.2 mm in the top 2 m of the soil profile. Test results certifying the
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existence of such soil conditions would be maintained in the designfile for eligible W/Cs; and
(c) normally, head reaches of W/Cs, having maximum flows and hydraulic headwould be pucca lined. However, other reaches eligible for pucca liningwould include portions having excessive water losses because ofelevation or soil conditions, having chronic sedimentation problems,and high traffic areas around villages and along roads.
2.15 Water Storage Tanks (base cost US$1.9 M). About 500 water storagetanks would be constructed in barani areas to conserve watar by increasingvolumetric flows through intermittent and timely relea3es. Because the yieldfrom many barani water sources is small and variable, high conveyance losses areencountered with direct application of low discharges. The tanks would bedesigned to store about 8-12 hours of inflow from the water source; however,storage shou].d not be in excess of the crop water requirements of the commandedarea (2-10 ha). The tanks would be constructed with brick masonry walls (23 cmwide, maximum height 1.2 m) and a bed made of plastic sheets on a compacted soilbase. Assurances have been obtained from GOP and GOProvinces that a formal WUAwould be organized for the command area of each project tank. and a W/C would beinstalled in the commanded area. The W/C would be constructed consistent withthe provisions in paras 2.12 to 2.14 above.
2.16 Precision Land Leveling (ULL) (no cash base cost; however, farmers'contribution in labor, materials and equipment amounts to US$14.5 M). About55,000 ha of irrigated land, or about 7 ha per W/C to be renovated, will beprecision leveled. Although comparison clearly shows that simpler traditionalmethods of land leveling are much less effective than PLL, implementing agenciesand farmers tend to 'down play" PLL because there is no government subsidy forthis more costly method. The project will give additional attention to thisimportant water management practice, including its applicability on smallerplots. After traditional leveling, many farmers apply irrigation water until thehighest point in a field is covered, which leads to over-irrigation of low-lyingareas and under-irrigation of higher areas with a tendency for salts L.,accumulate in such areas. Over-irrigation leaches soil nutrients from the croproot zone, makes the soil less productive and degrades groundwater quality.Fields not properly formed result in low irrigation efficiencies and yields.
2.17 PLL is a process of appropriate land forming. Engineering surveys mustbe made and a field layout designed for each farm consistent with soil type,farmer's tillage equipment and crops to be grown. Studies at MRES indicate that(a) leveling can reduce the time of irrigation (and amount of water) by up to501; (b) proper field layout, which reduces the number and length of fieldborders and ditches can increase the irrigation area by about 2X and reduce W/Clength by up to 601; and (c) proper land forming can increase yields as much as25X.
2.18 The technical specification for land leveling under this project wouldremain the same as under OFWM II, i.e. i 60 mm in basins and a maximum 0.4X slopeon lands to be furrow irrigated. The implementing agencies will providetechnical assistance to farmers for surveying, plan preparation and design,layout and inspection. An engineering plan, field and irrigation ditch layout
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will be made for each parcel of land or farm to receive PLL. The project willprovide specialized training for field teams to increase their technicalcapability in carrying out this important practice. Involvement of individualfarmers in planning, design and layout is essential in order to come up with aland forming scheme that best meets their requirements. Laser leveling equipmentwas provided under OFWWM II, which resulted in better quality leveling jobs.Based on this experience, additional laser equipment wiii be provided under thisproject. Except in Balochistan, farmers would be responsible for all PLLconstruction work -- either by hiring contractors or by renting scrapers andother equipment from the implementing agency. In Balochistan, due to thescarcity of privately owned tractors, the OFWM Directorate would providetractors, as well as ancillary leveling equipment for rent. Rental ratesestablished by implementing agencies would cover only maintenance cost of theequipment, which would provide an incentive to farmers to adopt this practice.
2.19 Sailaba Flood Irrigation (base cost US$0.2 M). Flood plain irrigationhas been practiced for years by farmers in Balochistan where they constructtemporary "katcha" diversion structures and off-taking channels to divert floodflows from "nullahs" (intermittent, non-perennial streams) to adjacent lands.This irrigation method is vital to crop production in the extremely dry baraniareas of the Province. However, the systems lack proper design. During periodsof low runoff, the "head enders" take all of the diverted flows. During flashfloods, the "katcha" diversion structures wash out and no one receives irrigationwater. Hence, the present systems are undependable and inequitable. Simplerehabilitation of these systems, even though not a perfect solution, willimprove their operation and the lot of the farmers in these remote areas. Theproject would provide for upgrading about 35 of these schemes throughinstallation of appropriately designed "pucca" diversion structures (brickmasonry, stone pitching, etc.) and rehabilitation of off-taking channels.Assurances have been obtained from GOP and GOBalochistan that. formal WUAs woulbe organized in the command area served by the sailaba flood irrLgation schemesto be rehabilitated.
2.20 Hvdra Ram Lifting Devices and Higher Efficiency Irrieation Technoo1gies(base cost US$0.03 M). On a pilot basis, Punjab's OFWM Directorate has installedseveral hydra ram pumps in the Potwar area and Soan Valley for lifting water fromperennial streams to irrigate higher lands. GOPunjab officials are satisfiedwith the technology and want to expand it into barani areas. The project wouldprovide funds for an expanded "pilot" program of 10 such systems, which would beoperated in conjunction with appropriate water distribution systems. Where it ispossible to operate the distribution system by gravity, the design would be thesame as for barani W/Cs. In areas where distribution by gravity i.s impossible,other higher efficiency irrigation technology would be installed (e.g. sprinkler,trickle, bubbler). Agsuances have been obtained from GOP and gOPunj ab thatformal WUAs wQuld be organized in the command areas served by these schemes.
2.21 Demonstration Center, (base cost US$2.5 M). Under OFWM I and OFWM II,demonstration plots of 0.4-1.2 ha were installed on each renovated W/C. Theseplots were operated for only one year. Except for PLL, there was littleincentive for farmers to cooperate, Because of these limitations the plots hadlittle demonstration value. This is unfortunate since a deficiency of the OFWMprogram in Pakistan ls that equal attention has not been given to translating
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water savings into increased agricultural production (para 1.16). In line withthe emphasis on irrigation agronomy in this project, GOP and GOProvinces havedesigned a new approach for Jemonstration areas. Instead of plots, onedemonstration center will be provided for every 6-8 renovated W/Cs. Thesecenters, up to 2 ha in size, are to be located near a village and be easilyaccessible. They will operate through project completion. Cooperating farmerswill be encouraged by government to continue activities in the post-projectperiod. The centers will demonstrate a full range of water management practicesand irrigation agronomy techniques. The project would provide technicalassistance for the planning and design of the water management improvements,including materials and PLL. As a further incentive, the project would provideadditional agricultural inputs as required to demonstrate the value of good watermanagement and irrigation agronomy practices. Field days would be held duringeach crop season (see Annex 5).
2.22 Facilitiel (base cost US$1.8 M). To assist the OFWM program, theproject would provide certain facilities. In Balochistan, offices and residenceswould be provided for five field teams located in remote areas, and a hostel andclassroom at the OFWM Training Institute. In Sindh the project would strengthenthe OFWM Training Institute. Five Farmer Training Centers would be constructedin Punjab to improve training of officers and members of WUAs.
EguipMent (base cost US$4.6 M)
2.23 The project would provide vehicles, land leveling equipment, includinglaser controls, hand compactors, and survey and office equipment. Except for onevehicle and some office equipment, all will be for the use of field teams, andsupervisory and M&E consultants. Vehicles would include 70 pickups, 52 jeeps(small), 9 autos or jeeps (medium size), 236 motorcycles and 210 bicycles.Considerable equipment will be available from OFWM II to supplement the newitems, which should adequately equip the work force.
Technical Assistance (base cost US$5.0 M)
2.24 Technical assistance (TA) to be provided by the project, and contractedby the Federal Coordination Unit, includes supervisory consultants and technicalexperts (see paras 4.11 to 4.13):
(a) Supervisory Consultants. About 77 staff-years of locally recruitedconsultants would be provided to assist the implementing agencies inreviewing plans and lesigns, supervising and monitoring progress,quality and quantity control, and preparing reports.
(b) Technical EsDerts. About 7 staff-years of internationally recruitedtechnical experts would be provided with the following expertise:water management, irrigation agronomy, sociology, M&E and training.
Monitoring and EvaluatLon (base cost US$1.4 M)
2.25 The project would fund about 125 staff-years of professional servicesto carry out the monitoring and evaluation (NhE) program. The program has beendivided into: (a) a base program, with related outputs, that would provide
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insights into the nature and extent of benefits to be expected from OFWMoperations that are components of other projects, as wall as this project; (b) areview of evaluation findings of OFWM programs included in previous projects andfollow-up evaluation on these sites; and (c) a component focusing on theemphasized features of this project, i.e. WUAs, irrigation agronomy and barani.To provide information on the sustainability of project benefits for a longerperiod of time, selected sites (approximately eight each year) that received OFWMimprovements under previous projects, e.g. Pilot, OFWM I and OFWM II, would bestudied. About 16 sites receiving OFWM improvements under this project will beintensively monitored and evaluated (see paras 4.16-4.18 and Annex 7).
Ttrining (base cost US$0.6 M)
2.26 Training would be provided by the OFWM training institutes and farmertraining centers. Most trainees would come from the field teams of theimplementing agencies, Extension Services and WUAs. Generally, project fundswould be used for expenses directly related to the trainees, e.g. travelallowances, training supplies, etc.
Sugervision and Administration (base cost US$15.0 M)
2.27 The project would provide 34 field teams in Balochistan, 26 in NWFP,114 in Punjab, 50 in Sindh and 2 each in FATA and Northern Areas, which would beequally divided between engineering and irrigation agronomy. This is an increaseof over 50Z for Balochistan, Sindh and NWFP and totally new for FATA and FANA.It will take time to recruit, post and train the staff, which is the reason forphasing in the civil works (para 2.07) and the expanded training program (para2.26). Funding would be provided for salaries, allowances and administrative andoperating expenses of these field teams and support staff, as well as a smallFederal Coordination Unit. As was the case for OFHWM II, it is envisaged thatsupervisory personnel above field team level, i.e. area and directoratepersonnel, and training staff will be funded as a non-project expense under theNon-Development Budget.
III. PROJECT COST. FINANCING AND PROCUREMENT
Project Cost
3.01 Total project cost over the five-year period (FY91-95) is estimated tobe Rs 3,422.0 M (US$155.5 M equivalent) with a foreign exchange component ofabout US$15.8 M or 10. A summary is given in Table 3.1, details are in Annex 1.Estimates are based on June 1990 prices and include about US$12.1 N in taxes andduties. Project cash cost is estimated to be US$112.0 M and farmer contributedlabor for civil works US$43.5 H. The cost of civil works is based on the mostrecent unit costs for OFWM II. The project is highly divisible, and since it isgenerally a repeater project, the requirements for equipment, technicalossistance, training, M&E, and supervision and administration are well known.h4c.ee, no physical contingencies have been included. Price contingencies area.bout 151 of base costs. The estimated annual inflation rates are given infootnote g/ to Table 3.1; the FY91 rates represent less than six months of theyear (price contingency adjustment).
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TabIe3.1A: PROJECT COST SUHMARY
ocal F Forein Tota. L orei Ttotl PercentRsM --- ----- US$ M --
3.02 The proposed Bank loan of US$36.3 H and IDA credit of SDR 33.4 H(US$47.3 M) would finance 1001 of foreign exchange cost and about 70X of localcash cost, or about 84X of total cash cost net of taxes and duties. Punjabfarmers would contribute about US$6.0 M, or about 61 of total cash cost net oftaxes and duties. GOP and GOProvinces would finance the remaining US$22.4 Mequivalent from their budgetary resources. Excluding duties and taxes,government flnancing would be about 10 of project cash cost. Farmers'contributed labor (plus some equipment use and supplies) would amount toUS$43.5 H or about 281 of total project cost. Angroval of the project's PC-Ls by ECNEC would be a condition of loan aind credit effectiveness. Theproposed financing plan is summarized in Table 3.2; details are in Annex 2.
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Table 3.2: PROPOSED PROJECT FINANCING(US$ M)
Total Domestic Be.k/ PercentCost Farmers G2t. IDA Bank/J-I
3.03 To facilitate project financing, GOP would establish four SpecialAccounts, one for each Provincial OFWM Directorate, in the National Bank ofPakistan (a commercial bank) which would be operated according to standardBank procedures for such accounts. All eligible expenditures of the OFWNDirectorates would be financed through these Special Accounts. The initialdeposit into the Special Accounts would be US$0.5 M for Balochistan, US$0.6 N
for NWFP, US$3.0 M for Punjab, and US$1.7 M for Siiidh, which represents theBant's share of approximately four months expenditurcs. Subsequentreplenishments would be made on the basis of applications submitted by thefour OFWH Directorates. Disbursements for the Fedar&l Coordination Unit, FATAand FANA would be by withdrawal applications subiit;.sd by these entities. To
facilitate completion of overall civil works ta.gete, 10X (US$8.4 M) of theBank Group assistance would remain unallocated initi'.-ly, to be utilized byimplementing agencies that have progressed faster in undertaking envisaged
works.
3.04 At the time of appraisal (May/June 1990), ,;lunjab had fullyutilized all allocated funding X_ er GFWM II. GOP hea requested retroactivefinancing to cover eligible expenditures from June 1, '-t90 to loan/creditsigning. It is proposed that retroactive financing be p-ovided, which couldreach about 61 of Bank Group assistance (or about US$5.0 iM).
D -sburag=ts
3.05 The Bank loan/IDA credit would be disbursed for:
(a) 891 of the cost of materials and skilled labor for W/C renovation,water storage tanks and sailiba flood irrigation improvements;
(b) 1001 of foreign expenditures, 100l of local expenditures ex-factory,or 601 of other local expenditures for equipment;
(c) 901 of the cost of supervisory consultants and M&E;
