Pakistan: Punjab Irrigated Agriculture Investment Program-Project 1

Sovereign Project | 37231-023 Status: Active

ADB is helping Pakistan improve water resource management and increase productivity of irrigated agriculture in Punjab province. The first project under the multitranche financing facility will improve Balloki Barrage and the Lower Bari Doab Canal system that supply irrigation water to more than 700,000 hectares.

 
Project Name Punjab Irrigated Agriculture Investment Program-Project 1
Project Number 37231-023
Country Pakistan
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2299-PAK: MFF-Punjab Irrigated Agriculture Investment Program Subproject 1: Punjab Irrigated Agriculture Project Preparation Facility (PFR1)
Ordinary capital resources US$ 217.80 million
Loan 2300-PAK: MFF-Punjab Irrigated Agriculture Investment Program Subproject 1: Punjab Irrigated Agriculture Project Preparation Facility (PFR1)
concessional ordinary capital resources lending / Asian Development Fund US$ 10.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Agriculture, natural resources and rural development - Irrigation - Rural water policy, institutional and capacity development - Water-based natural resources management

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The project seeks to promote economic growth, increase farm incomes and improve resource sustainability through enhanced productivity of irrigated agriculture and improved management of Punjab's water resources. Project components include (i) rehabilitation and upgrading of Balloki Barrage including the Lower Bari Daub Canal (LBDC) and BS Link Canal head regulators; (ii) rehabilitation and upgrading of the LBDC main canal and appurtenant structures as well as branch, distributary and minor canals comprising the LBDC distribution system; (iii) intensified and rationalized systematic groundwater monitoring and strengthened groundwater resource management in the LBDC command; (iv) improved on-farm water management practice and agriculture support; and (v) institutional reform and strengthening to ensure improved operation and management of the LBDC system.

The Punjab Irrigated Agriculture Project Preparation Facility (PIAPPF) will ensure that (i) forthcoming projects are expeditiously prepared to fully utilize Program resources, (ii) future projects are well designed and meet ADB guidelines, and (iii) the PIAIP is well managed.

Project Rationale and Linkage to Country/Regional Strategy The infrastructure has seriously deteriorated due to (i) age (much is nearly 100 years old), (ii) no asset management planning, and (iii) chronic underfunding and ineffective implementation of O&M. The poor condition of some large infrastructure poses serious risks, yet the deteriorated system more generally means unreliable irrigation service delivery, particulary to the tail ends of the canals. Farmers have adapted to unreliable and inadequate canal water by developing private tubewells.
Impact Increased agricultural production and farm income in Lower Bari Doab Canal (LBDC) command area (Okara, Sahiwal, Khanewal, Vehari, and Multan districts)

Project Outcome

Description of Outcome LBDC command area receives a sustainably improved delivery of water services and management
Progress Toward Outcome Of the 9 civil works contracts, five are complete, progress on two is above 90% while progress on the remaining two is above 70%. It is expected that all civil works contract will substantially complete by 30 June 2017 (except for small works that may require canal flow closure). ADB fielded a loan review mission of the Project (15-22 Nov 2016). The Government and ADB agreed that loan will not be extended further beyond 30 June 2017. Any works left after the revised loan closing date of 30 June 2017, will be financed by the Government from its own resources.
Implementation Progress
Description of Project Outputs

The LBDC and distribution system rehabilitated on time and within budget.

A groundwater management plan and conjunctive use strategy for LBDC is operational

Farmers use improved on-farm water management practices

Area Water Board (AWB) and Farmers Organizations (FOs) take responsibility for operations of canal systems.

Due diligence of subsequent tranches

Balloki Barrage rehabilitated on time and within budget

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

Of the 9 civil works contracts, five are complete, progress on two is above 90% while progress on the remaining two is above 70%. It is expected that all civil works contract will substantially complete by 30 June 2017 (except for small works that may require canal flow closure). The Government and ADB agreed that loan will not be extended further beyond 30 June 2017. Any works left after the loan closing date of 30 June 2017, will be financed by the Government from its own resources.

The rehabilitation works comprises 201 km of main canal and 2,264 km of distribution system. The 201 km of main canal have been completed under three contracts; ICB-01,-02,-03. Work of a total 2,264 km length of Distributaries & Minors has been awarded. Of the awarded R&U work on Distribution System, 1,660 km has been completed while work on 604 km is in progress. The number of appurtenant structures has been reduced from 3,500 to 2,258 after doing the condition survey during canal closure between Dec 2015 _ Jan 2016. Of the revised scope of the 2,258 structures, work is completed on 214 structures of Main Canal and 1,001 structures on distribution system while work on 1,043 structures of distribution system under contracts ICB-04, ICB-05, ICB-06A & ICB-06B is on-going.

A groundwater management plan and conjunctive use strategy for LBDC: Activity completed 20 months before original schedule. Groundwater data base and model have been developed and handed over to PID, staff has been trained, and database and model are being used by PID.

Farmers use improved on-farm water management practices: Against a target of 40 demo plots on a total of 200 ha area, establishment of 53 plots (having a cumulative area of 2,120 ha) completed in Q3 2013 - two years ahead of the original project schedule.

Area Water Board (AWB) and Farmers Organizations (FOs) take responsibility for operations of canal systems: Against a target of establishing one AWB, 50 FOs and 3,000 KPs, the Project was able to establish one AWB, 53 FOs, and 3,779 KPs.

Due diligence of subsequent tranches:

1._Tranche 2 approved in Q4 2011

2._Tranche 3 approved in Q4 2012

3._Trimmu-Panjnad (Stand alone) approved in Q3 2014

4._Pakpattan Distribution System for $120 million. Project is ready:

a._Feasibility study, detail design and PC-1 prepared .

b._Climate change assessment study to be carried out as it became requirements now. Project is ready.

5._Thal Canal ($250 million): Project is ready:

a._Feasibility study, and detailed design completed.

b._PC-1 is under preparation.

c._Climate change assessment study yet to be carried out.

6._Cholistan Water Resources Development Project:

a._Feasibility study is in progress. Expected completion 30 June 2017

7._Link Canals Remodeling:

a._Feasibility study is substantially completed. Full completion expected by Q42016

Balloki Barrage: The progress on Balloki Barrage contract is 90%

Geographical Location Punjab in Okara, Sahiwal and Khanewal districts

Safeguard Categories

Environment B
Involuntary Resettlement A
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects The environmental assessment has been completed and environmental management plan (EMP) has been prepared for each works contract package and included in the works contract agreement. Implementation of EMPs is being monitored and six monthly monitoring reports are prepared.
Involuntary Resettlement Land acquisition and resettlement plans (LARPs) of all works packages have been approved. Their implementation is in different phases for each works package. Regular internal and external monitoring is being done and six monthly reports are prepared.
Indigenous Peoples There are no indigenous people in the project area
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholders, beneficiaries, and people directly affected have been consulted, and will continue to be consulted during finalization of project design and implementation. A participatory and consultative methodology was adopted to undertake social analysis during the project preparatory technical assistance. It involved (i) initial field reconnaissance discussions with project stakeholders, (ii) focus group discussions with women in core subproject areas, (iii) detailed household survey with male respondents in core subproject areas, (iv) key informant interviews, and (v) detailed survey questionaires of households directly affected by land acquisition and civil works on the rights-of- way.
During Project Implementation Farmer Organizations (FOs) and Water User Associations (WUAs) have been formed. FOs are participating in rehabilitation and upgradation of distributory canals. They are also responsible for i) collecting water charges (Abiana) and ii) operation and management of canals.

Business Opportunities

Consulting Services The IPPMU will be supported by a package of consulting services for the PIAPPF to prepare and carry out final design for the ensuing projects to be financed under MFF. This package will provide for 216 person-months of international consultants and 700 person-months of domestic specialists to prioritize investment options, prepare projects to the feasibility level, and carry out detailed design and tender document preparation. For LBDCIP, contracts for five packages of consultant services will be awarded comprising of about 333 person-months of international specialists and 1,423 person-months of domestic experts to support all facets of Project implementation. All consultants to be financed under PIAIP including those for LBDCIP will be recruited in accordance with Guidelines on the Ue of Consultants by Asian Development Bank and Its Borrowers, April 2006. The selection and engagement of required services will be through firms selected under quality- and cost-based selection procedures and individuals as required. The PMU will recruit NGOs for resettlement activities that will be contracted on a competitive basis acceptable to ADB.
Procurement All procurement will be undertaken following ADB's Procurement Guidelines (April 2006) as amended from time to time. Civil works packages for the R&U of Balloki barrage, the LBDC main canal and the bulk of the irrigation distribution system will be awarded under international competitive bidding (ICB) among suitably pre-qualified contractors. Civil works contracts costing less than $4.0 million including those for the rehabilitation and upgrading of the Jhandraka and 15-L distributary and minor canals which will be awarded in two "distributary" defined civil works contracts of only medium scale (to facilitate their early construction) will not be suitable for or of interest to international contractors. Moreover, adequate domestic contracting capacity exists to successfully underatke these works at a reasonable cost; thus they will be undertaken under national competitive bidding procedures among suitably pre-qualified local contractors. Supply contracts estimated to cost the equivalent of $100,000 up to $500,000 will be awarded on the basis of limited international bidding. Minor items costing $100,000 equivalent or less will be procured under direct shopping. Since none among pre-qualified bidders, submit their bids for ICB-06, a Minor Change in Scope for Repackaging of LBDC-ICB-06 was approved to split it, in two i.e. ICB-06 (A) and ICB-06 (B) on 18 October 2012.

Responsible Staff

Responsible ADB Officer Zafar, Asad A.
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Pakistan Resident Mission
Executing Agencies
Punjab Irrigation Department
Syed Mehmood-Ul-Hassan
[email protected]
Canal Bank Mustafa Abad, Lahore

Timetable

Concept Clearance 08 Sep 2005
Fact Finding 10 Jul 2006 to 04 Aug 2006
MRM 12 Sep 2006
Approval 18 Dec 2006
Last Review Mission -
PDS Creation Date 14 Apr 2008
Last PDS Update 28 Mar 2017

Loan 2299-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Dec 2006 22 Jun 2007 24 Aug 2007 30 Sep 2013 30 Jun 2017 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 271.40 Cumulative Contract Awards
ADB 217.80 18 Dec 2006 195.05 0.00 94%
Counterpart 53.60 Cumulative Disbursements
Cofinancing 0.00 18 Dec 2006 198.43 0.00 96%

Loan 2300-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Dec 2006 22 Jun 2007 24 Aug 2007 30 Sep 2013 30 Jun 2017 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 10.00 Cumulative Contract Awards
ADB 10.00 18 Dec 2006 9.93 0.00 99%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 18 Dec 2006 10.03 0.00 100%

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Punjab Irrigated Agriculture Investment Program - Tranches 1 and 4: Audited Project Financial Statements (July 2015-June 2016) Audited Project Financial Statements Dec 2016
Amendment to Project Agreement for Loan Nos. 2299-PAK/2300-PAK(SF): Punjab Irrigated Agriculture Investment Program - Project 1 Project/Program Agreements Dec 2015
Loan Agreement (Ordinary Operations) for Loan 3351-PAK: Punjab Irrigated Agriculture Investment Program - Tranche 4 Loan Agreement (Ordinary Resources) Dec 2015
Punjab Irrigated Agriculture Investment Program - Project 1 Procurement Plans May 2014
Punjab Irrigated Agriculture Investment Program Project/Program Administration Manual Aug 2007
Amendment to Rebate and Surcharge Provisions of Loan Agreement for Punjab Irrigated Agriculture Investment Program - Project 1 between Islamic Republic of Pakistan and Asian Development Bank (1 Jul 2007) Loan Agreement (Ordinary Resources) Jul 2007
Project Agreement for Punjab Irrigated Agriculture Investment Program -- Project 1 between Asian Development Bank and Province of Punjab dated 22 June 2007 Project/Program Agreements Jun 2007
Loan Agreement for Punjab Irrigated Agriculture Investment Program -- Project 1 between Islamic Republic of Pakistan and Asian Development Bank dated 22 June 2007 Loan Agreement (Special Operations) Jun 2007
Loan Agreement for Punjab Irrigated Agriculture Investment Program -- Project 1 between Islamic Republic of Pakistan and Asian Development Bank dated 22 June 2007 Loan Agreement (Ordinary Resources) Mar 2007

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Punjab Irrigated Agriculture Investment Program - Tranches 1 and 4: Resettlement Monitoring Report Social Monitoring Reports Nov 2016
PIAIP - Project 1: Lower Bari Doab Canal Improvement Environmental Monitoring Report (January-June 2016) Environmental Monitoring Reports Aug 2016
Punjab Irrigated Agriculture Investment Program-Project 1: Lower Bari Doab Canal Improvement Project External Social Monitoring Report (May 2016) Social Monitoring Reports May 2016
Punjab Irrigated Agriculture Investment Program-Project 1: Lower Bari Doab Canal Improvement Project Internal Social Monitoring Report (March 2016) Social Monitoring Reports Mar 2016
Punjab Irrigated Agriculture Investment Project - Tranche 1: Lower Bari Doab Canal Improvement Project Biannual Environmental Monitoring Report (July-December 2015) Environmental Monitoring Reports Feb 2016
Punjab Irrigated Agriculture Investment Program-Project 1: Lower Bari Doab Canal Improvement Project External Social Monitoring Report (January-August 2015) Social Monitoring Reports Sep 2015
Punjab Irrigated Agriculture Investment Program-Project 1: Lower Bari Doab Canal Improvement Project Biannual Environmental Monitoring Report (January-June 2015) Environmental Monitoring Reports Jul 2015
Punjab Irrigated Agriculture Investment Program - Project 1: Lower Bari Doab Canal Improvement Project: Balloki Barrage (BB/ICB-01) Short Resettlement Plan Resettlement Plans Jun 2015
Punjab Irrigated Agriculture Investment Program - Project 1: Initial Environmental Examination Initial Environmental Examination Mar 2015
Punjab Irrigated Agriculture Investment Program - Project 1: Lower Bari Doab Canal Improvement Project: Fourth External Monitoring Report (January-December 2014) Social Monitoring Reports Mar 2015
Punjab Irrigated Agriculture Investment Program: Lower Bari Doab Canal Improvement Project Biannual Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Jan 2015
MFF-Punjab Irrigated Agriculture Investment Program Subproject 1: Lower Bari Doab Canal Improvement Project: Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Jun 2014
MFF-Punjab Irrigated Agriculture Investment Program Subproject 1: Lower Bari Doab Canal Improvement Project: Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Dec 2013
Punjab Irrigated Agriculture Investment Program - Subproject 1: Lower Bari Doab Canal Improvement Project: Internal Monitoring Report (December 2013) Social Monitoring Reports Dec 2013
MFF-Punjab Irrigated Agriculture Investment Program Subproject 1: Lower Bari Doab Canal Improvement Project: Environmental Monitoring Report (January-June 2013) Environmental Monitoring Reports Jun 2013
Punjab Irrigated Agriculture Investment Program - Subproject 1: Lower Bari Doab Canal Improvement Project: Internal Monitoring Report (June 2013) Social Monitoring Reports Jun 2013
Punjab Irrigated Agriculture Investment Program - Subproject 1: Lower Bari Doab Canal Improvement Project (LBDC Main Canal (ICB-05)) Resettlement Plans Apr 2013
PIAIP - Project 1: Lower Bari Doab Canal Improvement Project - Distribution System of Khanewal Irrigation Division [ICB-06(A)] Short Resettlement Plan (March 2013) and Addendum (March 2016) Resettlement Plans Mar 2013
MFF-Punjab Irrigated Agriculture Investment Program Subproject 1: Lower Bari Doab Canal Improvement Project: Environmental Monitoring Report (July-December 2012) Environmental Monitoring Reports Jan 2013
Punjab Irrigated Agriculture Investment Program - Subproject 1: Lower Bari Doab Canal Improvement Project: Internal Monitoring Report (January 2013) Social Monitoring Reports Jan 2013
Lower Bari Doab Canal Improvement Project and the Punjab Irrigated Agriculture Project: Bi-annual Environmental Monitoring Report Environmental Monitoring Reports Nov 2012
Punjab Irrigated Agriculture Investment Program - Subproject 1: Lower Bari Doab Canal Improvement Project [LBDC Main Canal (ICB-04)] Resettlement Plan Resettlement Plans Jul 2012
Punjab Irrigated Agriculture Investment Program - Subproject 1: Lower Bari Doab Canal Improvement Project: Second External Monitoring Report Social Monitoring Reports May 2012
Punjab Irrigated Agriculture Investment Program - Subproject 1: Lower Bari Doab Canal Improvement Project: Internal Monitoring Report (April 2012) Social Monitoring Reports Apr 2012
Punjab Irrigated Agriculture Investment Program - Subproject 1: Lower Bari Doab Canal Improvement Project: Third External Monitoring Report Social Monitoring Reports Jan 2012
Punjab Irrigated Agriculture Investment Program - Subproject 1: Lower Bari Doab Canal Improvement Project: First External Monitoring Report Social Monitoring Reports Nov 2011
Punjab Irrigated Agriculture Investment Program (PIAIP) - Lower Bari Doab Canal Improvement Project (LBDCIP) Tranche 1 - Jandraka Distributary System Subproject (June 2011) Resettlement Plans Jun 2011
Punjab Irrigated Agriculture Development Program Social Monitoring Reports Apr 2011
Punjab Irrigated Agriculture Investment Program - Subproject 1: Lower Bari Doab Canal Improvement Project (LBDC Main Canal (ICB-02)) Resettlement Plans Mar 2011
Punjab Irrigated Agriculture Investment Program - Subproject 1: Lower Bari Doab Canal Improvement Project (LBDC Main Canal (ICB-03)) Resettlement Plans Mar 2011
Punjab Irrigated Agriculture Investment Program - Subproject 1: Lower Bari Doab Canal Improvement Project (LBDC Main Canal (ICB-01)) Resettlement Plans Dec 2010
Punjab Irrigated Agriculture Development Program: Lower Bari Doab Canal Improvement Project Resettlement Plans Nov 2009
Punjab Irrigated Agriculture Development Program: Resettlement Framework Resettlement Frameworks Aug 2006

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.