Afghanistan : Arghandab Integrated Water Resources Development Project

Sovereign Project | 48096-002

The project will improve the availability and management of water resources in the Arghandab basin in Kandahar province by (i) increasing the storage capacity of the Dahla Dam by raising its height, (ii) increasing the reliability of irrigation water supplies downstream of the dam, (iii) improving agriculture water productivity by providing on-farm support to farmers to improve crop production, and (iv) strengthening institutions in water resource management. Additional benefits associated with raising the dam include hydropower generation, to be undertaken by the private sector; and urban and industrial water supply to Kandahar City and its surroundings, to be undertaken by World Bank.

Project Details

  • Project Officer
    ADB Disclosure
    Sectors Group
    Request for information
  • Country/Economy
    Afghanistan
  • Sector
    • Agriculture, natural resources and rural development
Project Name
Arghandab Integrated Water Resources Development Project
Project Number
48096-002
Country / Economy
  • Afghanistan
Project Status
Active
Project Type / Modality of Assistance
  • Grant
Source of Funding / Amount
Grant 0655-AFG: Arghandab Integrated Water Resources Development Project
Source Amount
Asian Development Fund US$ 348.78 million
Grant: Arghandab Integrated Water Resources Development Project
Source Amount
World Bank US$ 200.00 million
Grant 0656-AFG: Arghandab Integrated Water Resources Development Project
Source Amount
IFAD Grants US$ 40.00 million
Operational Priorities
  • OP1: Addressing remaining poverty and reducing inequalities
  • OP2: Accelerating progress in gender equality
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
  • OP5: Promoting rural development and food security
  • OP6: Strengthening governance and institutional capacity
Sector / Subsector
  • Agriculture, natural resources and rural development / Agricultural production - Irrigation - Water-based natural resources management

Gender
Effective gender mainstreaming
Description
The project will improve the availability and management of water resources in the Arghandab basin in Kandahar province by (i) increasing the storage capacity of the Dahla Dam by raising its height, (ii) increasing the reliability of irrigation water supplies downstream of the dam, (iii) improving agriculture water productivity by providing on-farm support to farmers to improve crop production, and (iv) strengthening institutions in water resource management. Additional benefits associated with raising the dam include hydropower generation, to be undertaken by the private sector; and urban and industrial water supply to Kandahar City and its surroundings, to be undertaken by World Bank.
Project Rationale and Linkage to Country/Regional Strategy
Water availability in Afghanistan is highly seasonal and erratic, with frequent and worsening droughts affecting agriculture, living standards, and the local economy. Improved reliability of irrigated water supply is crucial to enable the expansion of high value cropping enterprises and associated activities.
Impact

Jobs and gross domestic product growth increased

Project Outcome

Description of Outcome

Management and use of water resources in the Arghandab River basin improved

Progress Toward Outcome

Implementation Progress

Description of Project Outputs

Dahla Dam capacity increased

Reliability of irrigation water supply increased

Agricultural water productivity improved

Capacity in water resource management and use strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Kandahar

Safeguard Categories

Environment
A
Involuntary Resettlement
A
Indigenous Peoples
C

Summary of Environmental and Social Aspects

Environmental Aspects
The project is Category A for Environment and will require preparation of an Environmental Impact Assessment (EIA) study to assess the impacts and provide adequate mitigation measures as well as monitoring plans. Component 1 involves raising of Dahla Dam by 13.6 meters. Works related with saddle dam 1 to 6 and saddle dam 1 extension, intake tower, tunnel lining and trash rack will also be carried out. Execution of the works under this component will result in significant environmental impacts, including change in land use and ecology due to inundation at the upstream end, soil erosion and dust generation during earthworks, as well as social issues related mainly with water rights, land tenure as well as occupational and community health and safety. Moreover, aquatic environment/habitats may also be affected in case the environmental flow conditions are not accounted for at the downstream end.
Involuntary Resettlement

The project is Category A for Involuntary Resettlement. As of 18 March 2019, for the dam raise output, it is estimated that: (i) 22 villages will be inundated; (ii) 596 out of a total of 778 houses in these villages will be impacted; (iii) 14 mosques and schools, 3 shrines and 3 graveyards will be affected; (iv) 84% of agricultural land in these villages will be inundated; (v) 643 orchards, and 92,241 fruit trees will be inundated; (vi) a 600m long strip of the proposed road realignment will pass through agricultural lands of one village.

For the irrigation and agriculture output, it is estimated that: (i) 151 shops along the canal will be affected and will be removed; (ii) surveys are currently being carried out to determine the trees, residential structure, cultural sites, etc in the road beside the canal.

Indigenous Peoples
The project is Category C for Indigenous Peoples Impact, In Afghanistan, there are no groups regards as Indigenous People's, as per the SPS (2009) definition. All groups are integrated into society and represented at the various political groups.

Stakeholder Communication, Participation, and Consultation

During Project Design
During Project Implementation

Business Opportunities

Consulting Services
An estimated 1856 person-months (pm) (496 international, 1360 national) of consulting services are required to (i) facilitate project management and implementation, (ii) survey (geological, seismological) and design, (iii) capacity building and training, (iv) strengthen the agricultural value chains and improve water productivity on farms; and (v) resettlement and safeguards plans implementation and monitoring. Consulting firms will be engaged using the quality- and cost-based selection (QCBS) method with a standard qualitycost ratio of 90:10, consultant- qualification-based selection (CQS), and Single Source Selection (SSS). Advance contracting and retroactive financing will be undertaken in conformity with ADB Procurement Policy (2017, as amended from time to time) and ADB's Staff Instructions Borrower Administered Consulting Services (2017, as amended from time to time). The issuance of invitations to bid under advance contracting and retroactive financing will be subject to ADB approval.
Procurement

For procurement of goods, works, non-consulting services, and consulting services in the project, ADB Procurement Policy (2017, as amended from time to time), Procurement Regulations for ADB Borrowers (2017, as amended from time to time) and the associated Staff Instructions/Project Administration Instructions shall apply. Open Competitive Bidding (OCB) procedures with international advertising will be used for civil works contracts estimated to cost $222.63 million and for goods estimated to cost $4.25 million. OCB procedures with national advertising will be used for civil works and goods contracts estimated to cost $8.94 million. Request for Quotations will be used for contracts for procurement of works and goods less than $100,000. Community contracts and Community labor working contracts estimated to cost $35 million involving local materials and community participation.

Contact

Responsible ADB Officer
ADB Disclosure
Responsible ADB Department
Sectors Group
Responsible ADB Division
Agriculture, Food, Nature, and Rural Development Sector Office (SG-AFNR)

Timetable

Concept Clearance
08 Dec 2016
Fact Finding
23 Apr 2019 to 08 May 2019
MRM
23 Jul 2019
Approval
11 Sep 2019
Last Review Mission
-
Last PDS Update
16 Sep 2019

Funding

Grant 0655-AFG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Sep 2019 25 Sep 2019 27 Mar 2020 31 May 2027 - -
Financing Plan
  Total (Amount in US$ million)
Project Cost 358.78
ADB 348.78
Counterpart 10.00
Cofinancing 0.00
Grant Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 06 Jun 2024 5.59 0.00 2%
Cumulative Disbursements 06 Jun 2024 2.42 0.00 1%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - Satisfactory Satisfactory Satisfactory Satisfactory

Grant 0656-AFG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Dec 2019 07 Mar 2020 07 Mar 2020 31 Mar 2027 - -
Financing Plan
  Total (Amount in US$ million)
Project Cost 40.00
ADB 0.00
Counterpart 0.00
Cofinancing 40.00
Grant Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 06 Jun 2024 0.00 10.20 26%
Cumulative Disbursements 06 Jun 2024 0.00 7.79 19%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - Satisfactory Satisfactory Satisfactory Satisfactory

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