Pakistan: Punjab Irrigated Agriculture Investment Program - (Tranches 1 and 4)
The project’s intended impact was to increase agricultural production and farm income in the Lower Bari Doab Canal command area. This was to be measured by increases in cropping intensity and average farm income of the 275,000 farming families by 10% by 2021. Its outcome was for the Lower Bari Doab Canal command area to receive a sustainably improved delivery of water services and management.
In December 2006, the Asian Development Bank (ADB) approved a $900 million equivalent multi-tranche financing facility (MFF) for the Punjab Irrigated Agriculture Investment Program (PIAIP) to finance improvements to Punjab’s irrigation sector. At the same time, two loans for tranche 1 totaling $227.8 million equivalent were approved $217.8 million equivalent (Y25.6 billion) from ADB’s ordinary capital resources (loan 2299) and $10 million equivalent from ADB’s special fund resources (loan 2300). Loan 2299 was denominated in Japanese yen. The loan amount increased in 2011 because of yen appreciation. As a result, and upon the government’s request, surplus loan proceeds were cancelled. By September 2015, the loan amount equivalent was reduced further due to loan currency depreciation, rendering the loan insufficient to complete the project. To meet the cost overruns in civil works and offset the reduction of the loan amount due to currency fluctuations, the government requested for additional financing. ADB, in December 2015, approved the additional financing (tranche 4)5 of $26.6 million (loan 3351) for project 1. It consisted of two main components, the Lower Bari Doab Canal Improvement Project (LBDCIP) aiming to rehabilitate and upgrade the Lower Bari Doab Canal (LBDC) network, and the Punjab Irrigated Agriculture Project Preparation Facility (PIAPPF) aiming to fund the preparation of subsequent projects to be financed under the PIAIP MFF and project implementation management of the tranche 1 project.
This report validates the completion report's assessment of the program. IED overall assessment: Successful.