48042-001: Panj-Amu River Basin Sector Project | Asian Development Bank

Afghanistan: Panj-Amu River Basin Sector Project

Sovereign (Public) Project | 48042-001 Status: Active

The project will increase agricultural productivity in the Panj-Amu River Basin through improving access and use of water at farm, scheme and river levels. The project will support the government strategy, which aims to increase per-capita income and reduce poverty among rural and pastoral communities. It will improve cropping intensities, irrigated areas, and crop yields on a command area of 74,500 hectares (ha) and as a result, increase annual farm incomes in the range $123-615 per household for over 55,000 households, and create approximately 11,000 full-time rural jobs per annum, with an estimated value of $10.4 million. The project will also improve food security, substitute imports for wheat, and improve self-sufficiency, and increase in exports of high-value products such as fruit and nuts. The project will also create more economic opportunities for agribusiness development, particularly for input suppliers and processors of and market intermediaries for agricultural products.

Project Details

Project Officer
Ayubi, Mohammad Hanif Central and West Asia Department Request for information
Country
  • Afghanistan
Modality
  • Grant
Sector
  • Agriculture, natural resources and rural development
 
Project Name Panj-Amu River Basin Sector Project
Project Number 48042-001
Country Afghanistan
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0506-AFG: Panj-Amu River Basin Sector Project
concessional ordinary capital resources lending / Asian Development Fund US$ 26.00 million
Grant 0507-AFG: Panj-Amu River Basin Sector Project
European Union US$ 50.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural drainage - Irrigation - Rural flood protection

Gender Equity and Mainstreaming Some gender elements
Description The project will increase agricultural productivity in the Panj-Amu River Basin through improving access and use of water at farm, scheme and river levels. The project will support the government strategy, which aims to increase per-capita income and reduce poverty among rural and pastoral communities. It will improve cropping intensities, irrigated areas, and crop yields on a command area of 74,500 hectares (ha) and as a result, increase annual farm incomes in the range $123-615 per household for over 55,000 households, and create approximately 11,000 full-time rural jobs per annum, with an estimated value of $10.4 million. The project will also improve food security, substitute imports for wheat, and improve self-sufficiency, and increase in exports of high-value products such as fruit and nuts. The project will also create more economic opportunities for agribusiness development, particularly for input suppliers and processors of and market intermediaries for agricultural products.
Project Rationale and Linkage to Country/Regional Strategy

Afghanistan is one of the least developed countries in the world. The poverty headcount rate is 39% and the percentage of food insecure population is 33%. Average gross domestic product (GDP) per capita during the 2011-2015 period is $634, causing Afghanistan to rank 168th out of 183 countries reviewed by the World Bank. Agriculture is Afghanistan's major sources of livelihood, employs 79% of the national work force, and is a significant source of national income. Agriculture contributes significantly to Afghanistan's GDP, although this has been decreasing from 38% in 2002 to 22% in 2014 . The country's major staple crop is wheat, representing 60% of Afghan's daily dietary intake. With total production output of 5.37 million tons in 2015, Afghanistan relies heavily on import to meet its population's dietary energy requirements with an import dependency of 16% of total food demand. This level of dependency is growing 11% per annum. Food insecurity is prevalent throughout the country, but most critical in the north where food insecurity index is as high as 73% in the provinces of Badakhshan and Bamyan.



Afghanistan is a dry country with precipitation falling as snow falls in the winter, while crops require water in the summer. Limited access to irrigation water is a key binding constraint to agricultural productivity, besides low quality inputs and traditional agricultural practices. While the vast majority of Afghans depends on agriculture for a living, only 12% (or 64.4 million ha) of the country's terrain is arable. Rain-fed area is currently of 3.7 million ha and irrigated area 3.8 million ha, each representing about 5-6% of total arable land. Of the total irrigated area of 3.8 million ha, it is estimated that around 2.2 million ha are single or double cropped every year, with balance of 1.6 million ha being irrigated if and when water is available, at intervals of 2-6 years.



Sporadic irrigation has been the primary cause for crop yields below the world average, for example average wheat yield of 2.03 tons/ha in 2013 (world average of 3.27 tons/ha) and average rice yield 2.5 tons/ha in 2013 (world average of 4.5 tons/ha). Irrigated yields are observed to be significantly greater than rain-fed yields, for example, the irrigated wheat yield is 2.5 times that of rain-fed. With irrigated areas producing 69% of total wheat outputs, irrigation water is a critical high value factor for yield improvement.



Expansion of new irrigated areas has been examined on a number of projects, but high capital cost outlays make it economically infeasible. Improving access to irrigations water on existing irrigation systems also has number of constraints, including: (i) inequitable distribution of water both at the river level (between schemes) as a result of lack of capacity, tools and resources within the government for river basin management, and at the command area level (within schemes) as a result of lack of formal consultation and distribution mechanisms (user rights) and breakdown of the mirab structure; and (ii) dilapidated and inefficient state of irrigation infrastructure due to inadequate operation and maintenance (O&M), a lack of capacity to scale up investment due to inadequate water use fee collection and government capacity and resources, and damage to infrastructure through flooding as a result of upstream erosion leading to high abstraction rates and increased flash flooding, as a result of poor upper catchment conservation.

Impact Per capita income increased and poverty among rural and pastoral communities reduced.
Project Outcome
Description of Outcome Agricultural productivity in the Panj Amu River Basin increased
Progress Toward Outcome The project has just started. No progress toward outcome at this time.
Implementation Progress
Description of Project Outputs

Water allocation and availability improved

Command areas enhanced

Watersheds properly managed and protected

Status of Implementation Progress (Outputs, Activities, and Issues) The project has just started. No implementation progress yet.
Geographical Location Badakhshan, Kunduz, Takhar
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project is categorized B for environment. An IEE will be prepared to describe (i) the project area baseline environment; (ii) the physical and non-physical works; (iii) the potential impacts of these works; (iv) an environmental management plan (EMP); (v) a description of residual impacts remaining after EMP implementation; and (vi) recommendations for additional studies if required.
Involuntary Resettlement The project is categorized B for involuntary resettlement. A land acquisition and resettlement plan will be prepared. It is anticipated that additional land may be required for the canal widening and cleaning activities, leading to involuntary land acquisition. The project preparatory consultants will verify the types and magnitude of impacts and prepare a land acquisition and resettlement plan, in consultation with the potentially affected persons.
Indigenous Peoples The project is Category C for indigenous peoples impact. The Project does not trigger safeguards for and requirements from indigenous peoples under SPS (2009) and no indigenous development framework or plan is required. Afghanistan is inhabited by ethnic groups across its 34 provinces. None of these groups may be considered as IP communities based on the SPS (2009) definition of IP for operational purposes. The project area is not known to be a part of Kuchi nomadic groups seasonal migration areas.
Stakeholder Communication, Participation, and Consultation
During Project Design A stakeholder analysis will identify the poor and excluded who should participate in and be involved in the process of the design and decision on project packages during project preparation. In addition a capacity development component under the proposed project will be proposed to help build the capacity of WUAs to address farmers' demands and complaints. Irrigation projects by definition benefit those with land more than the landless, who are usually the poorest. Irrigation improvement however has indirect effects on local employment especially in terms of productivity gains and improved maintenance.
During Project Implementation

The PMU will ensure stakeholder consultations with communities and affected parties are held.

Project design process and feasibility study are on-going

Business Opportunities
Consulting Services Advance contracting is expected to recruit implementation support consultancy, feasibility study and detailed design, and works contract for three representative subprojects.
Procurement NCB (Works) for 16 contracts worth $49.14 million; NCB (Goods) for 1 contract worth $0.26 million; Shopping (Goods) for 16 contracts worth $0.49 million; CPP for 32 contracts worth $3.14 million.
Responsible ADB Officer Ayubi, Mohammad Hanif
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, CWRD
Executing Agencies
Ministry of Finance
Pashtunistan Watt,
Kabul,
Islamic Republic of Afghanistan
Timetable
Concept Clearance 30 Sep 2014
Fact Finding 03 Jun 2016 to 14 Jun 2016
MRM 16 Aug 2016
Approval 26 Oct 2016
Last Review Mission -
Last PDS Update 12 Sep 2017

Grant 0506-AFG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Oct 2016 02 Nov 2016 09 Dec 2016 31 May 2023 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 26.75 Cumulative Contract Awards
ADB 26.00 26 Oct 2016 0.92 0.00 4%
Counterpart 0.75 Cumulative Disbursements
Cofinancing 0.00 26 Oct 2016 0.44 0.00 2%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory - - Satisfactory

Grant 0507-AFG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Oct 2016 02 Nov 2016 09 Dec 2016 31 May 2023 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 50.00 Cumulative Contract Awards
ADB 0.00 26 Oct 2016 0.00 12.77 26%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 50.00 26 Oct 2016 0.00 1.13 2%

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.

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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.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan