Pakistan. IDA to provide $250 million to Punjab irrigated agriculture project

International Development Association (IDA) will provide dollars 250 million for Punjab Irrigated Agriculture Productivity Improvement Programme Project Phase-I, while local beneficiaries would bear dollars 173.5 million.

According to an update project report of World Bank, the project's main objectives are to improve water productivity.

Improved water productivity will translate into greater agricultural output per unit of water used, and will be achieved through improved physical delivery efficiency, irrigation practices, crop diversification and effective application of inputs.

These objectives would contribute to increased agricultural production, employment and incomes, higher living standards and positive environmental outcomes.

WB report pointed out that the irrigated agriculture is central to Pakistan's economy; because of its arid climate, the annual evaporation far exceeds the rainfall, making irrigation essential for growing crops.

Pakistan relies on the largest contiguous irrigation system in the world, namely the Indus Basin Irrigation System (IBIS) to provide basic food security (90 percent of food production and 25 percent of the gross domestic product).

Agriculture is the single most important source of employment and exports (two thirds of employment and 80 percent of exports) and irrigation represents more than 95 percent of the total consumptive use of water.

However, this massive infrastructure is deteriorating and in need of modernisation along with reforms to improve the allocation of water as well as the efficiency of its use, WB report pointed out.

According to report, the key irrigation sector issues are: (i) low surface water delivery efficiency (only about 35-40 percent from the canal head to crop root zone); (ii) water distribution inequities; (iii) lack of storage capacity and control structures; (iv) wasteful on-farm water use; (v) waterlogging and salinity; (vi) poor operation and maintenance (O&M) and low cost recovery; and (vii) a constrained investment climate.

These issues are a manifestation of institutional weaknesses due to near exclusive control by the public sector entities characterised by the usual inefficiencies of centralised bureaucracies, lack of corporate skills and poor client (farmer) focus and accountability, WB report added.

WB report mentioned that Pakistan had made progress in reforming irrigation institutions through programmes that the Bank has been supporting for more than a decade.

Irrigation management is being decentralised at the canal command level and the farmers' participation is being enhanced through distributary/minor canal level farmers organisation (FOs).

In particular, Sindh and Punjab provinces have made considerable progress and hundreds of FOs have been developed in many canal commands.

The institutional reform programme is time intensive, involving complexities with their own issues that would take time to resolve, consolidate and show visible outcome.

The Bank has ongoing operations to deepen and broaden the institutional reform programme to improve the long term sustainability of the IBIS.

This operation would build on the long history of partnership and collaboration that the Bank has with Pakistan in the water sector.

The government recognises the Bank's continuous and positive role in the I&D sector, and particularly sees a natural role for the Bank in this project.

Bank involvement is also crucial for ensuring proper implementation of the project, innovation and introduction of new technology.

Therefore the government is seeking support from the World Bank for its knowledge, expertise and experience in the sector, in addition to its financing.

Thus, the Bank's involvement was crucial for achieving the project objectives, WB report added.

It was important to note that the Director General Agriculture (Water Management) - DGAWM - would be responsible for all aspects of implementation of the project, including technical, procurement, financial management and overseeing the technical assistance and training programme etc and act as the Project Director.

The OFWM Directorate has demonstrated that it has capacity to implement such programmes in Punjab.

It has implemented several World Bank, ADB and Japan International Co-operation Agency (Jica) financed projects and national programmes for watercourse improvements and high efficiency irrigation systems.

The DGAWM would be supported by a staff at headquarters and its team would be strengthened, particularly by adding highly qualified deputy director finance and a procurement specialist.


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