Public Disclosure Authorized

PROJECT INFORMATION DOCUMENT (PID)

CONCEPT STAGE
Report No.: AB215
Project Name PUNJAB ON-FARM WATER MANAGEMENT
Region SOUTH ASIA
Sector Rural Development
Project ID P084551
Borrower(s)
Implementing Agency
Agriculture Department
On-Farm Water Management Wing
Public Disclosure Authorized

Government of Punjab
21-Davis Road
Lahore, Punjab

Environment Category [ ] A [ X] B [ ] C [ ] FI [ ]
Safeguard Classification [ ] S1 [ X] S2 [ ] S3 [ ] SF [ ]
Date PID Prepared August 11, 2003
Estimated Date of Appraisal April 5, 2004
Authorization
Estimated Date of Board August 12, 2004
Approval
Public Disclosure Authorized

1. Key development issues and rationale for Bank involvement

The Province of Punjab plays an important role in the country’s agriculture sector. Its
contribution to overall agricultural production is estimated at 80 percent. More than 70 percent of
cropped area under the Indus Basin is situated in Punjab. Out of 135,000 watercourses that
deliver water to farms nationwide, 56,000 (42%) are in Punjab Province. So far, the Government
of Punjab (GoPunjab) has improved 24,000 watercourses and intends to improve the remaining
32,000 in the next few years.

Recent reviews of the irrigated agriculture system indicate that Punjab faces major issues, which other provinces
also face to a lesser or greater extent. Besides seasonal water shortages, it faces: (i) low water delivery efficiency
(35-40% water losses from canal head to crop root zone, major part of the water losses occurring in tertiary channels
and on-farm); (ii) water distribution inequities (arising from poor O&M and illegal withdrawals) (iii) wasteful on-
farm water use (arising from over watering, poorly leveled fields, inefficient cultural practices); (iv) water logging
Public Disclosure Authorized

and salinity (exacerbated by poor on-farm water management, inappropriate water scheduling) and, (v) recurring
and prolonged drought accompanied by serious water shortages in the irrigation system.

The GoPunjab has given high priority to these issues and, through the Federal Government (letter of July 17, 2003),
has requested Bank’s assistance for a OFWM project. The request for Bank’s assistance is triggered by a stagnation
in the renovation of watercourses in the province in the last four years, due to limited support and the water shortage
caused by prolonged drought.

The Bank has been involved in the development of Pakistan’s irrigation system for over thirty years, initially
participating in major investments in storage, barrage, and link canals and, lately, in improving system efficiency,
which is the aim of the proposed project as well. As a province with the largest population, irrigated agriculture and
unimproved watercourses, Bank’s support to on-farm water management improvement could have a major impact
on overall agricultural production and water use efficiency. The economic and social impact is positive and highest
relative to interventions in other parts of the irrigation conveyance systems and, with improved screening and
targeting of beneficiaries, it could be one of the key instruments for addressing poverty and growth. The
Implementation Completion Report for the Bank-supported Third On-farm Water Management Program, which
closed in 1997, showed that the amount of water delivered to farms increased by an average of 26%, savings in time
in farmer operation in irrigating farm fields was 50% of the labor originally needed for irrigation and maintenance
requirements of the watercourses was significantly reduced. The economic rate of return for the program was
estimated at 23% and farmers were able to bring additional land under cultivation, and increase the yield and
production of crops.

The proposed project supports the CAS goal of reducing poverty through pro-poor growth interventions such as
improving agricultural productivity and governance in the irrigation system. It would foster partnerships between
public sector entities and community based organizations. It would take into account main lessons learned from the
implementation of similar projects in the past including, inter alia, the need to: (i) adopt an approach that allows for
individual watercourse design with full farmer participation and according to what farmers want and are prepared to
finance and implement; (ii) ensure community organizations to be formed on a voluntary basis for long-term
sustainability and (iii) have an affordable system of cost-sharing, as well as an O&M system fully owned by
community organizations.

2. Proposed objective(s)

The overall development objective is that new Water Users Associations (WUAs) improve irrigation water
efficiency and management in tertiary level irrigation systems (watercourses) and on member farm fields, to
increase agricultural productivity and farm incomes. The project interventions would: (a) improve the reliability,
efficiency and equity of irrigation water distribution; (b) support agricultural productivity enhancement and
diversification measures to complement and enhance the benefits of improved water management, and (c) enhance
long-term sustainability of the irrigation system by fostering self-supporting and self-managing WUAs that will be
the foundation for future higher tier farmer organizations.

3. Preliminary description

The project is aimed at establishing and supporting WUAs at the chak level to improve, operate and maintain
watercourses, improve on-farm water management and carryout agricultural productivity enhancing practices. The
WUAs will also form the foundation for the formation of Farmer Organizations (FOs) at higher tiers of the irrigation
conveyance system as envisaged in the reform policy of the Government, although the project will not organize the
higher tier organizations. The following components are envisaged in the proposed project:

• Social mobilization and capacity building - establish and build the capacity of close to 7000 WUAs to
implement watercourse improvement schemes, carry out O&M functions, participate in the
introduction/dissemination of improved agronomic practices, technologies and inputs.
• Improvements and development of irrigation facilities - renovate about 6,000 watercourses comprising of
2000 in fresh ground water areas and 4000 in saline ground water areas; construct minor irrigation schemes
and water storage tanks in non-canal command areas and lift water from natural nallahs and low-lying
water ponds to farmer fields; undertake pilot schemes in installation of community tubewells and
construction of community water storage ponds at head of watercourses.
• Agricultural productivity enhancement – disseminate irrigation technologies to achieve higher level of
irrigation application efficiency and water productivity; demonstrate irrigation agronomy practices and
resource conservation technologies such as rabi drill, bed shaper, bed planter, ridge planter, and widely
introduce farm designing and precision land leveling (PLL). New irrigation technologies such as gated
pipes, sprinklers and trickle systems, etc., will be demonstrated and introduced to farmers. Input and output
marketing arrangements will supported to maximize the benefits from the introduction of new technologies.
• Project management. – support executing entities including District and Tehsil administrations and entities
at the provincial level. Baseline surveys, impact/outcome evaluation, technical assistance for
implementation and supervision, financial management and audits, management information system and
 monitoring of environmental and social impacts and implementation of mitigation measures will be
supported.

The GoPunjab has estimated the total cost of the project to be US$111 million for four years, of which farmers share
is estimated at US$19 million, GoPunjab US$9 million and IDA credit US$83 million.

4. Safeguard policies that might apply

The project will be implemented province-wide, in canal command areas as well as in barani areas. Sites and the
specific interventions have not been identified. These would be selected based on a screening process, which would
include eligibility criteria related to poverty focus, willingness to form voluntary WUA and to assume watercourse
improvement responsibility, concentration of small farmers in a given watercourse, location of watercourses within
a distributary or minor giving priority to those that are at the tail reach, hydrological factors and areas where system
rehabilitation improvement and quality of services needs are the highest. The government would complete an
Integrated Environmental and Social Assessment (IESA) before project appraisal and this would include a well
articulate environmental and social management framework. The framework will provide a road map with clear and
measurable screening criteria, a transparent process and procedure, adequate technical and managerial capacity and
financial resources, as well as timetable and monitoring system.

The safeguard policies that apply for the project will be determined by the IESA but it is felt that Environmental
Assessment (OP/BP 4.01), Pest Management (OP/BP 4.04) and Projects in International Waterways (OP/BP/GP
7.50) may apply.

5. Tentative financing
Source: ($m.)
Borrower 9.00
IDA 83.00
Water Users Association 19.00
TOTAL 111.00

6. Contact point

Contact: Tekola Dejene

Title: Sr. Agricultural Economist.
Tel: 9090-235
Fax: (051) 2279649
Email: Tdejene@worldbank.org
Location: Islamabad, Pakistan (IBRD)