Pakistan : Khyber Pakhtunkhwa Water Resources Development Project

Sovereign Project | 51249-004

The Government of Pakistan requested PRF from the Asian Development Bank (ADB) to prepare the Khyber Pakhtunkhwa Water Resources Development Project. The project supports the Government of Pakistan's Vision 2025 and ADB's country partnership strategy for Pakistan, 2021-2025, which emphasizes addressing the food security constraints, building climate resilience, and investing in value-chain rural infrastructure developments importantly improving water storage and regulatory capacity, irrigation system upgrades, facilitating institutional transformation and sustainable maintenance and operational management of water resource systems.

Project Details

  • Project Officer
    Zafar, Asad A.
    Sectors Group
    Request for information
  • Country/Economy
    Pakistan
  • Sector
    • Agriculture, natural resources and rural development
Project Name
Khyber Pakhtunkhwa Water Resources Development Project
Project Number
51249-004
Country / Economy
  • Pakistan
Project Status
Active
Project Type / Modality of Assistance
  • Loan
Source of Funding / Amount
Loan 6049-PAK: Khyber Pakhtunkhwa Water Resources Development Project
Source Amount
Concessional ordinary capital resources lending US$ 3.60 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
Sector / Subsector
  • Agriculture, natural resources and rural development / Agricultural production - Irrigation - Land-based natural resources management - Water-based natural resources management

Gender
Description

The Government of Pakistan requested PRF from the Asian Development Bank (ADB) to prepare the Khyber Pakhtunkhwa Water Resources Development Project. The project supports the Government of Pakistan's Vision 2025 and ADB's country partnership strategy for Pakistan, 2021-2025, which emphasizes addressing the food security constraints, building climate resilience, and investing in value-chain rural infrastructure developments importantly improving water storage and regulatory capacity, irrigation system upgrades, facilitating institutional transformation and sustainable maintenance and operational management of water resource systems.

Outputs and Activities: Output 1: Detailed engineering design, procurement, and safeguards documents prepared: The PRF will support the detail engineering design including technical, economic, financial, environmental, social safeguards, gender, climate change assessment, and beneficiary community participation. Detail design will include the review, validation, or upgrading of preexisting and ongoing studies, as well as additional surveys and studies. Integrated and innovative solutions using digital technologies, modernized irrigation methods, climate-smart agriculture practices, linkage of rural agriculture business with markets and strengthening the role of women will be incorporated in the design. The PRF will deliver projects with high level of procurement and safeguards readiness and will include updating the land acquisition and resettlement planning documents, social impact assessment, environment impact assessment, economic analysis, and gender analysis and a gender action plan.

Output 2: Project readiness financing implementation support provided and capacity of executing and implementing agencies improved: The PRF will augment project start-up and early implementation capacity of the executing and implementing agencies particularly in resettlement plan implementation, procurement transactions and strengthening the overall PRF implementation management capacity. The PRF will consult farming communities including women and other stakeholders and prepare agriculture value chain assessment for investment design. Digitization of irrigation and drainage system asset condition, farms level delineation, water resources and demand measurements, and system performance will strengthen capacities to sustainably design the operation and maintenance of the planned investments.

Project Rationale and Linkage to Country/Regional Strategy

The agriculture sector is vital to Pakistan's economic growth, food security, and livelihood for rural population. The sector contributes 19.2 percent to the country's gross domestic product and provides employment to around 38.5 percent of the labour force. Agriculture yield and productivity per unit of water is below global and regional averages. This is because of growing scarcity of reliable, good quality water supply; land degradation, and mismanagement of agricultural production and water resources. Pakistan has limited water resources. Without significant reform and demand management, water demand could increase 50 percent by 2047 to significantly exceed supply. Population and economic growth will be the dominant drivers of demand increase. The largest increases will be for irrigation, while the fastest rates of increase will be for domestic and industrial use. Changes to Pakistan's rainfall and runoff regimes and hence its water resources are highly uncertain. Increase in the incidence of drought conditions is likely. Other studies indicate negative effects on major crops and cereals yields due to climate change. The sector requires holistic and integrated solutions, farm productivity, harvest and post-harvest losses, trade, value chains, small scale processing and farm operations are identified as key priority areas in cluster development-based agriculture transformation plan. Water shortage is identified as serious challenge in many clusters.

Khyber Pakhtunkhwa (KP) province is the third largest province of Pakistan has more than 80% population of 35.5 million population living in rural areas. The headcount ratio of multidimensional poverty in KP is 49.2 percent compared to national average of 38.8 percent. This does not include the recently merged area far lowest ratio of 74 percent. Rural poverty is nearly 58%. The agriculture sector provides 33% employment largely to the rural population. The total cultivated area in KP is 1.88 million ha (8.5 percent of the country's total), only half of which is irrigated . KP is dependent heavily on production from other provinces for important food commodities. Finite and scarce provincial water resources require improve management, and promoting agricultural development is essential for the KP's economic and social progress.

The PRF is aligned with ADB's Strategy 2030 operational priorities of (i) addressing remaining poverty and reducing inequalities, (ii) accelerating progress in gender equality, (iii) building climate resilience, and (iv) promoting rural development and food security. The PRF is included in ADB's Indicative Country Pipeline and Monitoring Report for Pakistan, 2022-2024. The key strategic sector objectives of the Government of Khyber Pakhtunkhwa's medium-term development framework for 2019-2023 are improved water resource management including improved efficiency of irrigation water usage.

The PRF will ensure high-quality design, safeguards, and procurement readiness of the ensuing project. It will facilitate the timely and cost-effective achievement of the project's outcomes. The PRF builds on the updated feasibility study conducted by the transaction technical assistance (TA) consultants. The PRF will prepare detailed engineering design and update social and environmental safeguards documents and other diligence assessments. The PRF will support the capacity development of executing and implementing agencies in start-up activities, early implementation support and additional studies for improving ensuing project design. ADB's value addition will include promoting integrated and holistic irrigated agriculture and water resources management, early-stage upstream stakeholder engagement, scoping, and initial assessments for safeguards and gender due diligence. ADB has approved a supplemental technical assistance resource so that projects are grounded in strategic sector and climate change assessments and reviewed and enhanced by international consultants to integrate best international practices and quality solutions in the project design. This will be achieved through a combination of upstream analytical work, project processing and readiness support, policy advisory and capacity building, and implementation support.

Impact

Project Outcome

Description of Outcome
Progress Toward Outcome

Implementation Progress

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

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design
During Project Implementation

Contact

Responsible ADB Officer
Zafar, Asad A.
Responsible ADB Department
Sectors Group
Responsible ADB Division
Agriculture, Food, Nature, and Rural Development Sector Office (SG-AFNR)
Executing Agencies
Khyber Pakhtunkhwa Irrigation Department

Timetable

Concept Clearance
11 Dec 2017
Fact Finding
21 Mar 2022 to 30 Mar 2022
MRM
08 Sep 2022
Approval
28 Nov 2022
Last Review Mission
-
Last PDS Update
29 Nov 2022

Funding

Loan 6049-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Nov 2022 15 Dec 2022 16 May 2023 30 Jun 2026 - -
Financing Plan
  Total (Amount in US$ million)
Project Cost 4.60
ADB 3.60
Counterpart 1.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 06 Jun 2024 2.55 0.00 71%
Cumulative Disbursements 06 Jun 2024 0.62 0.00 17%

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 Access to Information Policy (AIP) 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.


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.

None currently available.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) 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.

Tenders

Tender Title Type Status Posting Date Deadline
Detail Engineering Design and Project Readiness Support Consulting Services Firm - Consulting Closed

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Detailed Engineering Design and Project Readiness Support Consulting Services 6049 17 Jun 2023 M/s National Engineering Services Pakistan (Pvt.) Limited | NESPAK House, Lahore Khyber Pakhtunkhwa Irrigation Department 2,520,579.68 2,520,579.68

Procurement Plan

Title Document Type Document Date
Khyber Pakhtunkhwa Water Resources Development Project; Procurement Plan Procurement Plans Oct 2022