ADB backed Barani areas water resources project may cost $104.5 million
FAISALABAD (March 08 2008): The investment cost of Asian Development Bank supported 'Barani Integrated Water Resources Sector Project' is estimated at $104.5 million equivalent, including taxes and duties of $14.4 million equivalent.
While financial charges during implementation (comprising interest during implementation and commitment charges) are estimated at $7.5 million. According to Punjab Irrigation and Power Department (PIPD) sources, this project will increase water storage capacity by undertaking the construction of dams.
Sediment control measures in the dam watershed will also be implemented to prolong the dam's life and improve the sustainability of the water storage capacity of new dams and existing dams that need urgent attention.
Once a site is identified and pre-feasibility studies are undertaken, the main activities in dam construction will consist of (i) selecting candidate sub-projects for a feasibility study, (ii) contracting out the feasibility studies, environment impact assessments, detailed design and construction supervision to the private sector, and (iii) mobilising communities during feasibility studies to ensure full consultation and participation.
The selection of the candidate sub-project will result from three screenings that will take place after (i) identification, (ii) pre-feasibility study, and (iii) feasibility study. Mandatory associated activities will include (i) preparing the land acquisition and resettlement plans and implementing them, (ii) mobilising a panel of experts for approval of the proposed dam designs, (iii) contracting out the construction of the dam, and (iv) supervising the dam impoundment.
The dam construction and watershed management activities account for 70 percent of the total project costs. PIPD sources said that the project would increase the agricultural income of 20,000 households (160,000 people) and provide increased and clean domestic water to 9,050 households (72,400 people).
Other benefits are (i) the provision of bulk water to municipalities, and reforestation and land erosion control in the dam watershed, as well as (ii) increased production opportunities for private fish growers. The core sub-project's economic internal rate of return is 14.3 percent, said official sources.
They said that the main activities in watershed management would consist of (i) training the soil conservation and range officers; (ii) mobilising the community and registering the Citizen Community Board (CCB); (iii) preparing a watershed development plan and implementing it by (a) constructing silt trap structures, (b) covering major erosion spots with vegetation, and (c) controlling erosion in farmers' fields.
The sector project will support the Punjab government's efforts to develop water resources and improve their management in four districts Attock, Rawalpindi, Jhelum, and Chakwal of the barani areas of Punjab that suffer from water scarcity.
The project intends to improve households' income and health by increasing crop and livestock productivity through irrigation development and increased access to water and sanitation.
Activities will include (i) construction of dams and appurtenant structures to increase water availability in the area; (ii) watershed management to enhance the dams' life expectancy; (iii) development of the rural water supply for communities in the vicinity of the dam; (iv) development of community-managed irrigation distribution network; (v) agriculture extension services to support the transition to irrigated agriculture; and (vi) institutional support.
The project will also rehabilitate and develop irrigation schemes, provide extension support, and improve watershed management in existing dams. To address the problem of sustainability and low economic returns observed in previous dam projects in barani areas, the project will change the sub-sector implementation practices and follow an integrated approach looking simultaneously at dam development, watershed management, and command area development.
Similarly, it will support devolution of the water scheme to organised water users and foster a demand-driven approach through the inclusion of social mobilisation support.
ADB project study report said that about one quarter of Pakistan's cultivable area remains outside the Indus canal system and suffers from chronically low agricultural productivity. In Punjab, about 19 percent of cultivable lands lie in barani areas where local rain-fed farming systems and existing water sources can no longer support the growing local population.
Yet significant gains in agriculture and livestock productivity and related economic growth can be obtained through water resources development for which little investment support has been made available to date.
With suitable topography and rainfall, the best potential option is the development of water storage through the construction of dams. Previous experiences, however, show that an integrated approach must be used in developing dams in barani areas to ensure the full attainment of the potential economic benefits.
As such, the provision of infrastructure will need to be demand-driven and accompanied with the development of community-managed irrigation schemes, on-farm water management support, irrigated agriculture support services, and support for developing market linkages, watershed conservation to prevent fast sedimentation, and targeted interventions to ensure the full development of stored water for domestic water supplies.
Business Recorder [Pakistan's First Financial Daily]
