Afghanistan: Water Resources Development Investment Program - Project 1

Sovereign Project | 42091-032

Summary

The Investment Program is consistent with the Afghanistan National Development Strategy (ANDS), which was approved in April 2009 and constitutes the country's strategic platform for development for 2008 2020. Its aim is to promote growth, generate wealth, and reduce poverty and vulnerability. ANDS covers all key sectors and sub-sectors, and embraces several themes. Water resources is a major sector under ANDS, which provides a programmatic approach to developing the water sector that includes (i) physical investments in rehabilitation of existing and development of new water resources and irrigation infrastructure; and (ii) nonphysical investment in capacity building, strengthened institutions, and policy frameworks. The proposed MFF finances the medium-term portion of a broader investment program. The Investment Program is consistent with ADB's Afghanistan country partnership strategy (CPS) 2009 2013, long-term strategic framework 2008 2020 (Strategy 2020), and water policy Water for All.

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Project Name Water Resources Development Investment Program - Project 1
Project Number 42091-032
Country Afghanistan
Project Status Approved
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0167-AFG: Water Resources Development Investment Program - Project 1
Asian Development Fund US$ 86.60 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector Agriculture, natural resources and rural development - Agricultural policy, institutional and capacity development - Irrigation - Rural flood protection - Water-based natural resources management
Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The Investment Program is consistent with the Afghanistan National Development Strategy (ANDS), which was approved in April 2009 and constitutes the country's strategic platform for development for 2008 2020. Its aim is to promote growth, generate wealth, and reduce poverty and vulnerability. ANDS covers all key sectors and sub-sectors, and embraces several themes. Water resources is a major sector under ANDS, which provides a programmatic approach to developing the water sector that includes (i) physical investments in rehabilitation of existing and development of new water resources and irrigation infrastructure; and (ii) nonphysical investment in capacity building, strengthened institutions, and policy frameworks. The proposed MFF finances the medium-term portion of a broader investment program. The Investment Program is consistent with ADB's Afghanistan country partnership strategy (CPS) 2009 2013, long-term strategic framework 2008 2020 (Strategy 2020), and water policy Water for All.

The Investment Program will finance (i) the rehabilitation and upgrading of existing and development of new irrigation and water resources infrastructure, (ii) flood management infrastructure, (iii) institutional strengthening, and (iv) capacity building for key staff throughout the sector. The first tranche project has four components: (i) northern basins development (NBD) that includes rehabilitation and upgrading of irrigation infrastructure, and development of a river basin agency (RBA) and water users associations (WUAs) for water management; (ii) Nangarhar Valley Development Authority (NVDA) improvement that includes irrigation rehabilitation and upgrading, development of WUAs, and a management reform plan for the NVDA; (iii) flood management that includes development of flood protection infrastructure along the Amu Darya River and development of a national flood management program; and (iv) project management and program development that includes a program development facility to prepare the subsequent two tranches of the MFF.

Project Rationale and Linkage to Country/Regional Strategy

Water resources in Afghanistan. Sound management and development of Afghanistan's water resources are essential for sustained economic growth. Afghanistan is arid, and precipitation varies substantially both geographically and over the course of the year, with most precipitation falling between November and April. The seasonal precipitation pattern leads to annual flooding; this causes significant economic losses in some areas, but also provides potential opportunities. Harnessing available water resources where and when they occur and exploiting these resources most efficiently for irrigated agriculture and other uses are key challenges.

Agricultural economy. Agriculture employs about two thirds of the population and comprises up to half of Afghanistan's gross domestic product. However, agricultural production fluctuates yearly because of climatic conditions, and irrigation is necessary in most areas for reliable agriculture. Irrigated agriculture accounts for about 80% of crop production. Almost 85% of Afghanistan's inhabitants live in rural areas, and are either directly or indirectly dependent on agriculture. Improved access to irrigation is necessary for rural economic growth and improved livelihoods.

Irrigation sector. Afghanistan has approximately 6.5 million hectares (ha) of arable land. By the mid-1970s, over 3 million ha received irrigation, and irrigation uses 95% of Afghanistan's developed water supplies. Today, 1.8 million ha have regular irrigation. About 80% of irrigated lands have been developed and managed by local communities in river valleys, and these systems are old and degraded. Improving the performance of these existing traditional irrigation systems is necessary to boost agricultural production. Modern irrigation systems under state control were developed with foreign aid over the last 50 years. The NVDA near Jalalabad was established by the former Soviet Union under a collective farm model. It is currently operated by the Ministry of Agriculture, Irrigation, and Livestock (MAIL). The systems support perennial irrigation on 20,000 ha of prime agricultural land, of which 12,000 ha are privately owned, with most of the remainder on short-term leases to small farmers. All physical aspects of the irrigation system need rehabilitation. The Government also needs support to develop a business plan to restructure NVDA (currently an inefficient state enterprise) and increase its corporate orientation.

Seasonal flooding. In many areas, annual flooding and bank erosion results in damage to irrigation systems and the loss of prime agricultural land, rural infrastructure, and other assets. This problem is particularly acute in the upper Amu Darya River that borders Afghanistan and Tajikistan. ADB is implementing the Pyanj River Basin Flood Management Project to address flood issues, but infrastructure investment is needed to remedy problems, and Afghanistan currently has little flood management capacity.

Impact Agricultural production increased in Balkh, Jazawan, Nangarhar, Kunduz and Takhar provinces.
Project Outcome
Description of Outcome Improved water resources management.
Progress Toward Outcome

The rehabilitation of NVDA main, secondary and tertiary canals bid evaluation report was submitted to ADB and granted the no-objection in November 2014. The ICB contract was awarded on Feb 3, 2015 and contractor is in mobilization stage. As consultant (SIM.S.pa) TL was replaced, therefore, PMO is waiting for consultant to mobilize the TL and SRE approved to start the work upon in early April 2015.

Non-physical outputs are progressing.

Implementation Progress
Description of Project Outputs

Improved northern Basin irrigation system delivers reliable irrigation supplies.

Irrigated lands are protected from flood events

Institutional Strengthening

Capacity development and training

Project Management

Status of Implementation Progress (Outputs, Activities, and Issues)

Current work of the contract has been completed, with progress rate of 93% in total. Due to some unforeseen reasons and despite one year time extension the contractor was not able to complete the construction of all structures. There has been an increase in quantities and hence costs amounting to some 15%, largely due to changes in designs that have had to be made to accommodate community concerns. In total 207 structures of the original scope of 250 were completed. Currently A request to reduce the scope of the project has been submitted for ADB's consideration in order to close the project.

The contract for Bangala weir has already been awarded on 21 April 2014. The advance has been paid on Nov 2014 and the NTP issued, the contractor has completed the excavation of the main structure and has started the excavation of river trenches. The concrete works will commence on early May 2015.

The BER for a NCB package for priority civil works has been approved by ADB. Detailed designs for the ICB package have been completed and IFB was advertised on ADB and government websites on 21 Aug 2013. Bid evaluation report has been submitted to ADB for review and approval. PC paper has been prepared and circulated to PC committee and comment has been received. The ADB NOL for ICB contract granted on November 21, 2014, and the SPC approval received on December 10, 2014. The Contract Award Notice was announced on Dec 12 for 14 days with a closing date of Dec 25, 2014. The Acceptance Letter sent to contractor on January 8, 2015 and the reply received in the same day. The ICB contract was awarded on Feb 3, 2015 and contractor is in mobilization stage. As consultant (SIM.S.pa) TL was replaced, therefore, PMO is waiting for consultant to mobilize the TL and SRE approved to start the work upon in early April 2015.

Improved access points to be constructed as part of the pilot rehabilitation of secondary and tertiary canal structures (Balkh), and through the ICB package (NVDA). The access points (Water Collection point) in Lower Balkh are considered as CC and will be implemented through the NGO, its worth to mention that the NGO has been selected to undertake the required job. The ADB NOL for ICB contract granted on November 21, 2014, and the SPC approval received on December 10, 2014. The Contract Award Notice was announced on Dec 12 for 14 days with a closing date of Dec 25, 2014. The Contract Award Notice was announced on Dec 12 for 14 days with a closing date of Dec 25, 2014. The Acceptance Letter sent to contractor on January 8, 2015 and the reply received in the same day. The ICB contract was awarded on Feb 3, 2015 and contractor is in mobilization stage. As consultant (SIM.S.pa) TL was replaced, therefore, PMO is waiting for consultant to mobilize the TL and SRE approved to start the work upon in early April 2015.

The output is part of ICB and would be achieved during execution of project.

Invitation for bids for Yatim Tapa flood protection works was advertised on 22 October 2013. Bid evaluation report has been submitted to ADB. PC paper has been prepared and circulated to PC committee and comments have been received. The PC paper is being revised and ADB no objection has been granted for the award of contract on 3 September 2014, the Yatim Tepa flood protection works and pilot porcupines contract was awarded on 21st October 2014. The contractor decided to not apply for an advance payment and provided the PMO with their statement of cash flow which shows their ability to run the project without receiving the advance payment. After meeting the other requirements under the civil work commencement. The letter of NTP was issued on 17 January 2015. The work is in progress now. The contractor has started making of pre-cast concrete blocks for bank protection. The construction of the intake depends on the amount of the flow in the river and may not start till late Sept this year

Invitation for bids for Yatim Tapa flood protection works was advertised on 22 October 2013. Bid evaluation report has been submitted to ADB. PC paper has been prepared and circulated to PC committee and comments have been received. The PC paper is being revised and ADB no objection has been granted for the award of contract on 3 September 2014, the Yatim Tepa flood protection works and pilot porcupines contract was awarded on 21st October 2014. The contractor decided to not apply for an advance payment and provided the PMO with their statement of cash flow which shows their ability to run the project without receiving the advance payment. After meeting the other requirements under the civil work commencement. The letter of NTP was issued on 17 January 2015. The work is in progress now. The contractor has started making of pre-cast concrete blocks for bank protection. The construction of the intake depends on the amount of the flow in the river and may not start till late Sept this year.

ADB NoL granted for the award of contract on 3 September 2014, the Yatim Tepa flood protection works and pilot porcupines contract was awarded on 21st October 2014. The contractor decided to not apply for an advance payment and provided the PMO with their statement of cash flow which shows their ability to run the project without receiving the advance payment. After meeting the other requirements under the civil work commencement. The letter of NTP was issued on 17 January 2015. The work is in progress now. The contractor has started making of pre-cast concrete blocks for bank protection. The construction of the intake depends on the amount of the flow in the river and may not start till late Sept this year.

Implementation consultant recruited by MEW (31 December 2011, SNC Lavalin). Sub-contracting of NGO for WUA establishment ongoing. The consultant is currently finalizing a capacity building program ongoing for the Northern Basin RBA and the Panj Amu RBA. The capacity development plan was approved by ADB on 20 May 2014 and the capacity building program is expected to be completed by Q4 2016.

Bangala weir contract has been awarded, consultant is working on the operation rules. The supervision consultant will draft O&M plan and will submit it for MEW's review before the completion of the civil works.

NVDA charter was approved by cabinet of Minister and now NVDA canal directorate has a legal status as government company, while work is ongoing to finalize the business plan. SIM.S.pa is called to re-mobilize the specialist for developing the business plan with no response from SIM. As the new minister will join MAIL, regular shareholder's meeting will be called and member of Board of Director, Executive Board and M&E board will be recruited. Meanwhile a focal team will be assigned to work with SIM.S.pa institutional specialist who will develop the business plan, but could be delayed to Q1 of 2016.

NGO has been selected to undertake the required job. The NGO and MAIL has no legal relationship and the issue of implementation of this activity to be resolved in PSC meeting. Both SNC and MC contract finished and it was decided that MAIL will recruit an NGO for establishment of IAs and WUAs, capacity building and OFWM. The ToR is almost ready and under review of MAIL OFWM team. It is expected to have the NGO on board during Q2 of 2015.

PMOs/PIOs established in 2011 and recruitment process completed in 2012.

Work is ongoing. The program presented to MEW on Dec 2014 and accepted by MEW. The proposal for FMU establishment will be soon submitted to ADB. Final comments on the FMU proposal has been incorporated and will be submitted to ADB very soon.

First draft of the PPMS has been prepared, which is subject for some modification, currently PCO at MoF is working on it.

The audit reports for 2010, 2011 and 2012 have been submitted to ADB and is being accepted by ADB. While the EOI announced for recruitment of audit firm to conduct the audit of 2013, 2014 and 2015. The first submission submitted to ADB on Jan 18, 2015 for review and comments were received, after incorporating the ADB's comments in submission 1, submission 2 and 3 also submitted to ADB on Mar 12, 2015 for ADB's review and waiting for ADB's NoL. Expecting to have the audit firm on board in Q2 of 2015.

Geographical Location Balkh, Jawzjan, Takhar, Kunduz and Nangarhar Provinces
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

The Water Resources Development Investment Program (the Investment Program) is financed by the Asian Development Bank (ADB), through a multitranche financing facility (MFF). The Investment Program has an environmental assessment and review framework and cumulative environmental impact assessment. Each project under the MFF will have individual safeguard documents as required by ADB. The first tranche had an initial environmental examination and is classified as environmental category B according to ADB guidelines.

An EARF and cumulative impact assessment were prepared for the Investment Program following the Government's existing environmental laws and regulations and ADB's Environmental Policy (2002).

The EARF lays out the procedures and provides guidance for environmental due diligence under the Investment Program. Environmental capacity development for the Investment Program will be supported through the implementation consultants' environmental specialist, who will be part of the safeguard team in the PMOs. The PMOs, with support from the consultants, will be responsible for environmental monitoring and implementation of the environmental management plans (EMPs). For future tranches, initial environmental examinations (IEEs), or environmental impact assessments, if required, will be prepared following the EARF and included in the appraisal report, with due public consultation and information disclosure. The finalized IEEs will be submitted with the PFR for ADB approval.

The IEE, including an EMP and summary IEE, was prepared for the first tranche, which is classified as category B in terms of environmental impacts. The Project should have positive impacts on the environment including improved water-use efficiency, protection of assets from river bank erosion and flooding, and better land-use management. Potential negative impacts include (i) erosion of flood protection infrastructure; (ii) dust, noise, and waste during construction; (iii) flood flow displacement due to headworks operation; and (iv) possible degraded surface and groundwater quality and public health due to increased use of agricultural inputs. These will be mitigated by (i) development of a contractors' environmental management plan based on the EMP, with monitoring benchmarks; (ii) operation of infrastructure to minimize flood damage; (iii) WUA training for improved water management; and (iv) RBA capacity building related specifically to developing and implementing technically, socially, and environmentally sound operational policies and procedures. All of the environmental due diligence documents for the first tranche and Investment Program are found in Supplementary Appendix D.

Involuntary Resettlement

A land acquisition and resettlement framework (LARF) was prepared based on the laws of Afghanistan and in accordance with ADB's Involuntary Resettlement Policy (1995) and Operations Manual49 and endorsed by the Government. The LARF has established a process for (i) resettlement categorization of project activities as A, B, or C based on ADB guidelines; (ii) assessment of required resettlement activities; (iii) preparation of any required resettlement plans or other safeguards documents; (iv) compensation to affected persons prior to commence of civil works; and (v) grievance redress among other resettlement activities. The safeguards teams in the PMOs will be responsible for all resettlement activities and prepare any required resettlement plan(s). The categorization form and draft resettlement documents for subsequent tranches will be submitted for ADB approval with each PFR. The PMO and implementation consultants and/or contractors will update resettlement plans during detailed design. Resettlement plans will be implemented only after they have been formally approved by the IA and cleared by ADB. No notice to proceed will be given for civil works until the resettlement plan is fully implemented in the construction area. The PMO will monitor the resettlement plan implementation and report to ADB. In addition, an external monitoring agency will be engaged by the PMO and will have responsibility for (i) confirming that any required land acquisition and resettlement activities have been completed prior to commencement of civil works, (ii) assessing implementation, (iii) progress reporting, and (iv) assessing the impact of the land acquisition and resettlement activities. The external monitoring agency findings and quarterly reports will be filed independently with the EA, IA(s), and ADB, and relevant information may be included in PMO reporting. A nongovernment organization may be engaged as required to support the PMO with the preparation and implementation of resettlement activities. The LARF will ensure that women receive due compensation for losses, and that women who are de facto household heads are clearly listed as beneficiaries for compensation. The Government of Afghanistan has agreed to pay resettlement compensation costs.

Tranche 1 has been categorized as category B for resettlement. The NBD component will require some land acquisition that may impact up to five families, but no relocation is required. The flood management component requires compensation for 19 families that are currently farming in the area of the proposed protective embankment. Short land acquisition and resettlement plans (SLARPs) have been prepared for the affected persons. A summary of the LARF is found in Appendix 14 and the full LARF and SLARP are in Supplementary Appendix C.

Indigenous Peoples The tranche 1 project has been classified as category C. The tranche 1 project areas are inhabited by different ethnic groups. The socioeconomic features and level of vulnerability of these people do not fit with the characteristics defined by ADB's Policy on Indigenous Peoples (1998). The impact of subsequent tranche projects on indigenous peoples will be categorized through the initial poverty and social assessment (IPSA) screening and indigenous peoples categorization followed by appropriate actions as indicated in the approved LARF. Specific actions favorable to indigenous peoples will be included in the land acquisition and resettlement plan or in the specific PFR document for projects categorized as B in terms of indigenous peoples impact. Projects undertaken as part of future tranches will avoid negative impacts on indigenous peoples. If a project under a future tranche is classified as category A with respect to indigenous peoples impacts, an indigenous peoples development plan will be prepared in accordance with ADB's Policy on Indigenous Peoples. Any required documents relating to indigenous peoples will be attached to the PFR.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations were undertaken by the project preparation consultants with farmer irrigators, the landless, sharecroppers, herders, community elders, officials from nongovernmental organizations (NGOs), and government authorities. In addition, small workshops and meetings were held in each of the project component areas, and a large final tripartite workshop was held in Kabul at the end of the project preparation. The views of the communities and proposed project beneficiaries were incorporated into the project design. Consultation is integral to the project design with regard to the development of water users associations (WUAs), which will be empowered to assume formal responsibility for the management and operation and maintenance of large portions of the irrigation system, and will share decision-making responsibility for infrastructure improvements.
During Project Implementation During project implementation, there will be significant interaction with the local farmers as a part of the WUA development and training program. Local NGOs will support implementation of this effort, which by its very nature will be participatory and involve ongoing consultation with farmers and community members.
Business Opportunities
Consulting Services

All consultants to be financed will be recruited in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time).

The PMOs and PIOs will be supported by consulting services packages to complete detailed design and provide effective construction supervision.

Firm consultants will be selected on quality based seleciton procedures. The MAIL package will provide 72 person-months of international consultants and 299 person-months of national consultants while the MEW package will provide 206 person-months of international consulting input and 758 person-months of national consulting input.

About 10 person-months of individual consultant input will be recruited to accelerate project readiness for detailed design and tendering of the construction of Bangala weir and R&U of the Samarkandian weir.

Procurement Procurement of works and goods to be financed under the Investment Program will be undertaken in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). International competitive bidding (ICB) will be used for supply contracts estimated costing more than $500,000 and for civil works that cost more than $2 million. National competitive bidding (NCB) will be used for goods and works above $100,000 and below the ICB thresholds. Shopping will be used for goods and works equal to or below $100,000.
Responsible ADB Officer Hans Woldring
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Afghanistan Resident Mission
Executing Agencies
Ministry of FinanceH.E. Dr. Mustafa Mastoordmfinance@mof.gov.afMinistry of Finance. Passhtunistan watt, Kabul
Timetable
Concept Clearance 01 Jul 2009
Fact Finding 16 May 2009 to 11 Jun 2009
MRM 14 Jul 2009
Approval 06 Oct 2009
Last Review Mission -
PDS Creation Date 17 Jul 2009
Last PDS Update 24 Mar 2015

Grant 0167-AFG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
06 Oct 2009 11 Nov 2009 08 Jan 2010 30 Jun 2015 30 Jun 2018 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 89.50 Cumulative Contract Awards
ADB 86.60 06 Oct 2009 78.62 0.00 91%
Counterpart 2.90 Cumulative Disbursements
Cofinancing 0.00 06 Oct 2009 30.55 0.00 35%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

Grant 0170-AFG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
06 Oct 2009 11 Nov 2009 08 Jan 2010 30 Jun 2015 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 0.00 Cumulative Contract Awards
ADB 0.00 06 Oct 2009 0.00 3.25 99%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 06 Oct 2009 0.00 1.78 54%

Evaluation Documents

See also: Independent Evaluation

No documents found.


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