PROJECT DATA SHEET

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.

PDS Creation Date

30 Jul 2009

PDS Updated as of

30 Mar 2013

Project Name

Punjab Irrigated Agriculture Investment Program - Project 2

Country

Pakistan

Project/Program Number

37231-033

Status

Approved

Geographical Location

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.

Sector and/or Subsector Classification

Agriculture and natural resources / Irrigation, Drainage, and Flood Protection

Thematic Classification

Economic growth Environmental sustainability Governance Climate change

Gender Mainstreaming Categories

Some gender benefits

FINANCING
Type/Modality of Assistance Loan TOTAL Approval Number 2841 Source of Funding Asian Development Fund Counterpart Approved Amount (US$ thousand) 270,000 39,000 US$ 309,000

SAFEGUARD CATEGORIES
For more information about the safeguard categories, please see http://www.adb.org/site/safeguards/safeguard-categories

Environment

Involuntary Resettlement

Indigenous Peoples

SUMMARY OF ENVIRONMENTAL AND SOCIAL ISSUES

Environmental Aspects The major anticipated environmental impacts are (i) soil contamination around the contractor s camp, (ii) dust, smoke and noise, (iii) compaction of soil, (iv) water leakage from temporary dikes and (v) damage to flora and fauna. The mitigation measures have been agreed and will be included in the contractor s contractual obligation to the Government and ADB. The main provisions include (i) managing the camp s waste properly, (ii) maintaining the roads and drainage ditches in proper order, (iii) using low noise machinery, (iv) monitoring and strengthening temporary dikes and (v) maintaining the borrow area leveled and useable at the completion of the contract. The site specific environment related actions will further be refined following implementation of EMP Involuntary Resettlement LARP has been prepared in line with the country s Land Acquisition Act 1894 and Resettlement Framework first prepared and agreed upon under the MFF. This work has been updated to comply with ADB's SPS (2009). A total of 69 households (414 persons) will be affected by the project. In total, 19 houses will be affected, which include 14 houses owned by the PID in its staff colony and 5 private houses. PID will build new houses in the colony to accommodate its 14 staff families. The private house owners will be compensated through replacement costs. The other damages include 24 fruit and 13 wood trees and loss of crops on acquired land during project implementation. The number of affected people through dislocation or through 10% loss of their productive assets represents less than 200. The resettlement cost is estimated at just under $500,000. Government of Punjab will purchase the necessary land to comply with the resettlement plan. Resettlement costs will be financed under the loan. Further refinement is expected as the survey of the studs finalized in the light of model study. Indigenous Peoples The project area does not include communities that may be defined as indigenous people under ADB s SPS (2009). Consequentially, indigenous people impact classification for the project area is C .

STAKEHOLDER COMMUNICATION, PARTICIPATION, AND CONSULTATION

During Project Design Stakeholders, beneficiaries, and people in the project area have been consulted. A participatory and consultative methodology was adopted to undertake social analysis during the project preparation. 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 questionnaires of households directly affected by land acquisition and civil works. During Project Implementation During project implementation, the participation of stakeholders is being supported and deepened with the assistance of key project staff and the consultants. Dedicated resettlement staff at the project management office is to ensure that resettlement activities are addressed and will be implemented ccording to ADB guidelines (SPS, 2009). ADB reviewed and cleared the draft resettlement plan and was notified as per Land acquisition act 1984.

DESCRIPTION
The new Khanki Barrage (NKB) will be constructed on River Chenab at 275m downstream of the existing khanki headworks. It will replace a 120 years old existing structure. Its main components are (i) main weir and undersluices, (ii) gates and hoisting arrangement, (iii) operating deck and access road, and (iv) canal head regulator and lead channel. The NKB will diver 330 m3sec-1 (11,653 ft3 sec-1) irrigation supplies to the Lower Chenab Canal (LCC) serving about 1.2 million ha agricultural land. The construction of NKB at the upstream end will ensure sustained irrigation delivery to the

LCC comman area and will contribute to the outcome of the MFF. The NKB at the upstream end will ensure sustained irrigation delivery to the LCC command are and will contribute to the outcome of the MFF. The NKB will also increase the safe flood discharge capacity from the present 22,654 m3sec-1 (800,000 ft3sec-1) which is less than a one fifty years flood event to 31,149 m3sec-1 (1,100,000 ft3sec-1) equivalent to one in 100 years flood event. Overall 568,000 farming families (310,000 less than 2 ha and 190,000 between 2 to 6 ha) will be benefitted through reliable irrigation supplies.

PROJECT RATIONALE AND LINKAGE TO COUNTRY/REGIONAL STRATEGY

From a broader development perspective, strong engagement in the water sector in Pakistan is supported by (i) the ADB Pakistan country partnership strategy and program, which identifies water as one of the key areas for economic development; (ii) ADB's Medium-Term Strategy II, which lists investment in water resources as a core ADB activity; and (iii) the national Government and the Government of Punjab, which both identify investment in irrigation and water management as a priority for Pakistan for economic development and poverty reduction. Punjab irrigated agriculture accounts for 28% of Punjab s GDP and employs over 50% of its labor force. Irrigated cultivable agriculture covers 8.4 million hectares (ha) with a cropping intensity of 122%. Fourteen barrages supply water through 22 main and link canals. Upgrading the irrigation system requires over $3 billion. The Medium-Term Development Framework (MTDF) estimated expenditure on the irrigation sector at a high 32% annually since 2005. The water resources sector road map identifies improving infrastructure, institutions and agricultural productivity to drive sustained agricultural growth. ADB's agriculture sector evaluation (2006) for Pakistan emphasizes rehabilitating water resources and irrigation in its lending portfolio. Punjab Irrigation Department (PID) asset management plan requires rehabilitation of seven barrages and five main canal systems. The World Bank and Japan International Cooperation Agency (JICA) also supported the irrigation sector institutional reforms through development policy loans and the Punjab irrigation system improvement project.

DEVELOPMENT IMPACT
Improved agricultural production and farm income in Lower Chenab Canal (LCC) command area (Gujranwala, Hafizabad, Sheikhupura, Nankana Sahib, Faisalabad, Jhang and Toba Tek Singh districts).

PROJECT OUTCOME
Description of Outcome Progress Towards Outcome

The sustainable improved delivery of services for irrigated agriculture and better water management in LCC command areas.

OUTPUTS AND IMPLEMENTATION PROGRESS

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

1. New Khanki Barrage completed on time and within the budget. 2. EA's improved project management efficiency.

Technical bid evaluation of ICB works contract completed. Financial bids of the qualified bidders were opened on 11 March and are being evaluated by the EA. Consultantancy contract was awarded on 21 February 2013. The EA's Project related staff was trained on project implementation and procurement.

BUSINESS OPPORTUNITIES
Date of First Listing

19 Dec 2011 Consulting Services The consulting services package will be procured using Quality- and Cost-Based Selection (QCBS) with a quality/cost ratio of 90/10. The consultancy services will provide inputs of 84 person-months of international and 1394 person-months national consultants. The consultants will be recruited according to ADB's Guidelines on the Use of Consultants (2010 as amended time to time).

Procurement

All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (2010, as amended from time to time). The main civil works package will be awarded under international competitve bidding using single stage 2envelop method. Single-stage two envelope procedures will be followed for ICB contract. Supply contracts estimated to cost the equivalent of $500,000 and more will be awarded on the basis of international competitive bidding; those costing $100,000 up to $500,000 equivalent will be awarded on the basis of limited international bidding; and minor items costing $100,000 equivalent or less will be procured under shopping.

Procurement and Consulting Notices

http://www.adb.org/projects/37231-033/business-opportunities

TIMETABLE
Concept Clearance

Fact-finding

Management Review Meeting

17 Oct 2011

Approval

22 Dec 2011

Last Review Mission

MILESTONES
Closing Approval No. Approval Signing Effectivity Original Revised Actual

STATUS OF COVENANTS
Covenants are categorized under the following categoriesaudited accounts, safeguards, social, sector, financial, economic, and others. Covenant compliance is rated by category by applying the following criteria: (i) Satisfactoryall covenants in the category are being complied with, with a maximum of one exception allowed, (ii) Partly Satisfactorya maximum of two covenants in the category are not being complied with, (iii) Unsatisfactorythree or more covenants in the category are not being complied with. As per the 2011 Public Communications Policy, covenant compliance ratings for Project Financial Statements apply only to projects whose invitation for negotiation falls after 2 April 2012.
Category Approval No. Sector Social Financial Economic Others Safe Project Financial Statements

Loan 2841

CONTACTS AND UPDATE DETAILS

Responsible ADB Officer Akhtar Ali (aali@adb.org)

Responsible ADB Department

Central and West Asia Department

Responsible ADB Division

Environment, Natural Resources & Agriculture Division, CWRD

Executing Agencies

Irrigation and Power Dept., Punjab Mr. Khalid Masood

LINKS
Project Website http://www.adb.org/projects/37231-033/main

List of Project Documents

http://www.adb.org/projects/37231-033/documents