Concept

Project Components

Component A: Institutions, Capacity and Information Total Cost US$20.4M (IDA US$18.4M, GoB US$2M)

This component will support a gradual transition to IWRM approaches in Balochistan in line with the existing IWRM policy. It will support institutional restructuring, professional development, installation and operation of hydro-meteorological systems, and establishment of multi-agency river basin information systems that provide public access to all available hydromet data for the two project basins. The Project will support the establishment of a hydro-met observation network in the two project river basins including telecommunication equipment, software for data transmission and analysis, storage conversion of the data into the needed information and training in network O&M. Because of its crucial importance, a groundwater observation network will be installed and operated in the two river basins. Public online river basin information systems will combine climate and hydrological data with spatial data sets from multiple agencies including for land-use, soils, topography, river networks, environmental assetsetc. Appropriate institutional arrangements for initial IWRM efforts will be determined and progressively implemented during the Project. Investment will be made in professional development to support IWRM, including in aspects of water resources planning and management.

Sub-component A1 will support institutional strengthening and restructuring; it will determine appropriate institutional arrangements for the initial stages of IWRM in Balochistan and recommend a realistic trajectory for institutional change considering current institutions and capacity. The restructuring recommendations will be implemented progressively over the life of the Project.

Sub-component A2 will support hydro-meteorological data collection and management to provide the required information platform for improved water resources planning. The Project will design and implement monitoring networks across the two basins for collecting climate, surface water and groundwater data. Data transmission and storage facilities will be established, and government staff will be trained in operating and maintaining these systems and in water resources analysis and modelling using the data collected.

Component B: Water Infrastructure and Management Investments Total Cost US$163.9M, (IDA US$156.2M, Beneficiaries US$7.7M).

This component will support implementation of IWRM sectoral investments in the Nari and Porali basins within a framework of community mobilization and participation. Investments will include: B1 – Construction and/or rehabilitation of irrigation and potable water supply facilities; flood protection infrastructure; B2 – Related watershed and rangeland management; and B3 – On-farm water management and agricultural productivity activities.

For the Nari and Porali river basins, detailed feasibility studies assessed surface and groundwater resources and the opportunities for integrated water resources development. For the Nari Basin, pre-feasibility analysis identified 264 potential schemes; feasibility studies considered 77 of these and detailed assessments were made for the 18 most cost-effective. For the Porali Basin, a feasibility study considered 13 perennial and three flood irrigation schemes.

These 34 (18+13+3) irrigation schemes were then considered in terms of (i) economic rate of return, (ii) number of beneficiaries, (iii) security risks, (iv) beneficiary ethnicity, (v) beneficiary willingness to participate in scheme management including operations andmaintenance, and (vi) available funding envelope. This led to the selection of three schemes in the Nari Basin (Nari Gorge, Yatabad and Mushkaf) covering around 55,000 ha, and three schemes in the Porali Basin (Khudzar, Nimmi and Gundacha) covering around 15,000 ha.

In addition to these schemes, the proposed Project incorporates various watershed management activities, on-farm water management improvements, and other aspects of water management improvement.

Sub-component B1 will support six irrigation schemes: three each in the Nari and Porali basins, spanning approximately 69,300 ha. Development work will include remodeling of the headwork and secondary canals. The Project will support construction and rehabilitation of sixteen village water supply schemes providing potable water supply to ~3,600 households. High-intensity rain in the steep upper catchments generates high-energy flash flooding and there is a dire need for flood protection works in five districts in the Nari basin and in two districts in the Porali basin. The proposed works will protect ~14,600 ha of farmland, 31 km of village roads (with 18 bridges and culverts), numerous villages and various irrigation infrastructure.

Sub-component B2 will support a participatory approach to watershed management and rangeland management at the irrigation scheme level, to complement the new infrastructure investments under sub-components B1 and B3. Watershed management will include soil and water conservation measures, drainage improvement, rainwater harvesting, rehabilitation/protection of irrigable land degraded/endangered by erosion gullies and plantations. Rangeland management will focus on pasture and biomass production through introduction of rotational grazing and stocking rate limits.

Sub-component B3 will support the improvement of on-farm and field irrigation water efficiency and farm productivity. The sub-component will invest in command area development including establishment of FOs, on-farm infrastructure, matching grants and training. On-farm infrastructure will include construction/rehabilitation of watercourses, water storage tanks/ponds, and farm access roads. Matching grants will support investment in farm technologies, value chain enhancements and farm development work with highest income potential and sustainability. Trainings will invest in capacity building for farmers, entrepreneurs and project/department staff in best agricultural and water management practices.

Component C: Project Management &Technical Assistance Total Costs US$25.4M (IDA US$25.4M)

This component will support project management, monitoring and evaluation and studies. The component will finance expenditures associated with overall project implementation costs, including incremental costs associated with the Project Management Unit (PMU) and the Project Implementation Units (PIUs), Project Supervision and Implementation Assistance (PSIA)consultants, M&E consultants, and implementation of Management Plans and Strategic Studies including the Environmental Management Plan (EMP), the Social Mitigation Plan and the Gender Action Plan (GAP). Study tours will also be included with piloting of new technologies and others that may be identified during project implementation, as well as feasibility studies forother river basins.

Project Cost & Financing

Project Cost.

The total project cost is estimated at US$209.7 million. Cost by components is shown in Table 1. Detailed costs of Project items by component and by year, cost sharing, and expenditure category are available in the Project Files.

Project Financing.

IDA financing will cover 95.4 percent of the total Project costs including US$22.9M in taxes and duties. The Government of Balochistan will finance US$2M of the Project cost for O&M of the hydro-met networks under Component A commencing from project year 4. Project beneficiaries will finance US$7.7M of the total Project costs through in-kind contributions to infrastructure investments and cash contributions to matching grants.

Table 1: Summary of Project costing

Lessons Learned and Reflected in the Project Design

The following lessons learned from previous projects in Balochistan (including BSSIP), other projects in Pakistan, and similar projects in Afghanistan, Ethiopia, India, and Central Asia, are incorporated in the Project design.

Flexibility.

In conflict areas, projects must have built-in flexibility and room for innovation to respond to ever changing security situation in a timely and practical manner. The schemes included in this Project are a subset of a much larger set of technically and economically viable schemes in different locations that could be implemented if the security context for the selected schemes changes;

Mining Local Knowledge and Skills.

To build community credibility, it is important to have implementing agency staff from the project area. This allows for better access to communities and local decision-making bodies. This was a key reason for successful implementation of BSSIP. The new PMU will therefore include several local staff to guide implementation;

Managing Expectations for Policy Reforms.

A phased and incremental approach to policy reforms is more likely to build ownership and ensure sustainability. Focus on practical and achievable activities can yield results within a six-year period and lay the foundation for significant institutional change through longer-term engagement. In this regard, the proposed Project will include an assessment in the early stages of implementation to determine, in consultation with government, an appropriate approach to institutional reform. The initial focus will be on practical steps such as establishing a functioning and well run hydro-met network to inform improved decision making;

Partnering with expert partners leverages international expertise.

The involvement of specialist partner agencies in project implementation will provide additional technical support on community approach issues relating to agricultural enhancement;

Incentive Structure and Benefit Sharing to Foster Community Ownership.

Clear incentives for farmer and community participation are required. This should reward commitment and can prevent potential moral hazard. Benefit sharing mechanisms are required to incentivize watershed protection activities that benefit downstream communities. This will be achieved in the proposed Project through a matching grants scheme and a wide range of awareness raising and training programs implemented through FOs that will be established under the Project; and

Smart Monitoring Mechanisms, Tools and Technologies.

The use of innovative tools and technologies including third party monitoring are important supervision tools where regular field visits are difficult.