Major Change in Project

Project Number: 47235-001 Loan Numbers: 3159 and 3160 November 2019

Islamic Republic of Pakistan: Trimmu and Panjnad Barrages Improvement Project Distribution of this document is restricted until it has been approved by the Board of Directors. Following such approval, ADB will disclose the document to the public in accordance with ADB's Access to Information Policy.

CURRENCY EQUIVALENTS (as of 22 October 2019)

Currency unit – Pakistan rupee/s (PRe/PRs)

PRe1.00 = $0.00641 $1.00 = PRs155.89

ABBREVIATIONS

ADB – Asian Development Bank EIRR – economic internal rate of return ha – hectare IEE – initial environmental examination m3/s – cubic meters per second O&M – operation and maintenance PID – Punjab Irrigation Department PMO SDR

– –

project management office special drawing right

NOTES

(i) The fiscal year (FY) of the Government of Pakistan ends on 30 June. “FY” before a calendar year denotes the year in which the fiscal year ends, e.g., FY2020 ends on 30 June 2020.

(ii) In this report, “$” refers to United States dollars. Vice-President Shixin Chen, Operations 1 Director General Werner E. Liepach, Central and West Asia Department (CWRD) Director Xiaohong Yang, Pakistan Resident Mission (PRM), CWRD Team leader Asad Zafar, Senior Project Officer (Water Resources), PRM, CWRD Team members Umais Amin, Project Analyst, PRM, CWRD

Nurlan Djenchuraev, Senior Environment Specialist, CWRD Ashfaq Kokhar, Senior Safeguards Officer, PRM, CWRD Christina Pak, Principal Counsel, Office of the General Counsel Muhammad Ali Sheikh, Associate Financial Control Analyst, PRM, CWRD Ahsan Tayyab, Principal Natural Resources Economist, CWRD

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.

CONTENTS Page

MAP

I. PROPOSED MAJOR CHANGE 1

II. BACKGROUND 1

III. IMPLEMENTATION PROGRESS 1

IV. RATIONALE FOR THE PROPOSED CHANGE 2

V. DUE DILIGENCE 2

VI. THE PRESIDENT'S RECOMMENDATION 5

APPENDIXES

1. Revised Design and Monitoring Framework 6

2. List of Linked Documents 9

Indus R

iver

Tarbela Dam

Mangla Dam

Indu

s R

iver

Sutlej R

iver

Chenab R

iver

Jhelum River

Ravi R

iver

B A LOCHISTA N

KHY B ERPA KHTUNKHWA

SIND H

PUN JABTrimmu Barrage

Islam Barrage

Panjnad Barrage

Boundaries are not necessarily authoritative.

Barrage

Canal

River

National Capital

Provincial Capital

City/Town

District Boundary

Provincial Boundary

Hafizabad

Jhang

Toba Tek Singh

Sargodha

Mandi Bhauddin

Okara

Kasur

Sheikhupura

Gujranwala

Gujrat

Jhelum

Narowal

Sialkot

Faisalabad

Pakpattan

Bahawalnagar

Rajanpur

Lodhran

VehariMultanKhanewal

Rawalpindi

Attock

Chakwal

Khushab

Mianwali

Bhakkar

Layyah

Dera Ghazi Khan

Sahiwal

Lahore

ISLAMABAD

Bahawalpur

MuzaffargarhMuzaffargarh

74 00'Eo

74 00'Eo

70 00'Eo

70 00'Eo

29 00'No

29 00'No

33 30'No

33 30'No

TRIMMU AND PANJNAD BARRAGES IMPROVEMENT PROJECT

P A K I S T A N

192451B ABV

0 50 100

Kilometers

N

This map was produced by the cartography unit of the Asian Development Bank.

The boundaries, colors, denominations, and any other information shown on this

map do not imply, on the part of the Asian Development Bank, any judgment on

the legal status of any territory, or any endorsement or acceptance of such

boundaries, colors, denominations, or information.

Abbasia Canal Command

Haveli Main Line Canal Command

Panjnad Canal Command

Rangpur Canal Command

Upper Bahawal Canal Command

Qaim Canal Command

Approved Project Scope

Major Additional Project Scope

Ran

gpur

Can

al

Upper Bahawal Canal

Qaim Canal

Ran

gpur

Can

al

Abbasia Link C

anal

Panjnad Canal

Haveli Main Line Canal

Haveli Main Line Canal

Upper Bahawal Canal

Qaim Canal

Abbasia C

anal

Trimmu Sidhnai linkTrimmu Sidhnai link

I. PROPOSED MAJOR CHANGE 1. A major change in the Trimmu and Panjnad Barrages Improvement Project in Pakistan is proposed for Board consideration.1 2. The major change is an increase in project scope to include the Islam barrage, which is in the same southern Punjab province as the Trimmu and Panjnad barrages that are currently being upgraded under the project. The project title will change to “Trimmu, Panjnad and Islam Barrages Improvement Project”. The additional scope will be financed through surplus loan proceeds. This change is considered major because it materially alters the approved project scope and outcome. The revised design and monitoring framework is in Appendix 1.

II. BACKGROUND 3. The Board of Directors of the Asian Development Bank (ADB) approved the project on 22 September 2014 for $150 million (L3159) — $50 million from regular ordinary capital resources (OCR) and SDR64,982,000 ($100 million equivalent at approval, L3160) from concessional OCR. The project became effective on 21 January 2015, the project completion date is 30 September 2020 and the loan closing date is 31 March 2021. The project’s impact will be sustained agricultural production in the command areas of the barrages. The outcome will be that the Trimmu and Panjnad barrages will be safe and will reliably deliver irrigation water to their canals. Through rehabilitation and upgrades of the barrages, the current project will provide reliable irrigation to 1.87 million hectares (ha). The project’s outputs will be (i) rehabilitated and upgraded Trimmu barrage, (ii) rehabilitated and upgraded Panjnad barrage, and (iii) improved capacities of the communities and the Punjab Irrigation Department (PID). The outputs will be achieved by (i) increasing the flood passage capacities of the Trimmu barrage from 12,743 cubic meters per second (m3/s) to 24,777 m3/s (an increase of 94%), and of the Panjnad barrage from 19,822 m3/s to 24,495 m3/s (a 24% increase); (ii) improving the stability of the existing structures against floods, climate variability, erosion, and sedimentation; (iii) developing the capacity of the executing agency and communities; and (iv) providing social facilities such as a public park, an upgraded health unit, and an upgraded girls’ school. The project is classified as complex. PID is the executing agency and administers the project through the project management office (PMO).

III. IMPLEMENTATION PROGRESS 4. Project outputs 1 and 2 —rehabilitated and upgraded Trimmu and Panjnad barrages—are progressing through two works contract packages. The contract for the Trimmu barrage was awarded in December 2015 for PRs9,360 million ($60 million) and began on 31 May 2016 for a 3-year completion period. The rate of progress stands at 91%, and the completion period was extended to 30 April 2020 because of concurrent delays attributable to both the employer and contractor. The contract will be completed within the overall project period and within the original design and monitoring framework target. The contract for the Panjnad barrage was awarded in March 2018 for PRs5,454 million ($35 million) and began on 10 July 2018 for a 3-year completion period. Progress stands at 52% versus a 52.7% planned target. The works under both contracts are being supervised by one consulting firm. The third output, improved capacities of the communities and PID, is progressing satisfactorily. Vocational and flood risk management trainings are nearing completion at Trimmu Barrage followed by commencement at Panjnad Barrage. PID trained 12 engineers in water resources management at an international institute.

1 ADB. 2014. Report and Recommendation of the President to the Board of Directors: Proposed Loans to the Islamic

Republic of Pakistan for the Trimmu and Panjnad Barrages Improvement Project. Manila.

2

5. The project performance rating is on track based on technical, contract awards, disbursements, financial management and safeguards indicators. Financial reporting has been timely and in accordance with acceptable standards. Risks identified during processing and implementation were successfully mitigated. As of 22 October 2019, the contract awards total $111.1 million and the disbursements total $69.8 million, respectively, against a total elapsed time of 78%. The updated Performance Overview is accessible from the list of linked documents in Appendix 2.

IV. RATIONALE FOR THE PROPOSED CHANGE 6. The Islam barrage is in the same southern Punjab province as the Trimmu and Panjnad barrages. It faces significant risk of failure because its structural stability and the capacity to safely pass floods have deteriorated, which could lead to considerable loss of agricultural production on about 47,000 ha of farmland and poses a threat to about 0.3 million people. Adding the Islam barrage to the project scope is within the project’s broad objective of sustaining agricultural production in the command areas of the barrages and will enhance its impact. The surplus loan proceeds will finance upgrades to the Islam barrage through a revision of the financing plan and reallocation of loan proceeds. PID requested, through the borrower, that it may utilize the surplus loan proceeds for the proposed change in scope of the project. 7. Impact, outcome, and outputs. With the proposed change, the revised impact of the project will be sustained agricultural production in the command areas of Trimmu, Panjnad, and Islam barrages, and the outcome will be that the barrages will be safe and can deliver reliable irrigation water to their canals. The revised outcome will still contribute to the impact. The project classification remains unchanged. The revised outputs will be expanded to include a rehabilitated and upgraded Islam barrage, and additional community strengthening near the Islam barrage. The outputs will be achieved by (i) improving the stability of the existing structures against floods, erosion, and sedimentation; and increasing the flood passage capacities of the Islam barrage from 7,560 m3/s to 9,401 m3/s (a 24% increase); and (ii) developing the capacity of the communities near the Islam barrage by upgrading a girls’ school, building a family park, and providing livelihood training to 150 community members (50% of them women).

V. DUE DILIGENCE 8. Project cost and financing. ADB and PID identified a loan surplus in 2018 due to savings from Trimmu barrage contract, a depreciation of the Pakistan rupee from $1 = PRs110 to $1 = PRs140, and an unallocated ordinary capital resources loan amount. While additional financing was considered in 2018 to upgrade the Islam barrage, it was not pursued when it became clear that the loan surplus would suffice after the Pakistan rupee depreciated further to $1 = RPs158.3 in August 2019. The loan saving from the Trimmu contract is estimated at $10.3 million in addition to the unallocated amount of $18.3 million. PID proposes to use $16.2 million from the loan surplus for the Islam barrage upgrade, associated consulting services, resettlement, project management, and capacity development.2 In addition, PID proposes to use $4.8 million from the loan surplus for an expansion of the ongoing Trimmu and Panjnad outputs, which includes (i) improving the barrage operations and traffic through additional or upgraded bridges, (ii) enhancing the PID building infrastructure at the barrages for better management, and (iii) expanding capacity building to an additional 10–15 engineers through a master’s degree program. The surplus loan proceeds are sufficient to fully finance the changes in scope.

2 ADB. 2019. Aide-mémoire: Loan Review Mission, 29 April–6 May 2019. Islamabad.

3

9. Project implementation. The implementation arrangements will remain the same as for the original project. PID will continue to act as the executing agency and administer the project through the PMO. The major change will involve a contract for upgrading the Islam barrage through works totaling $14.5 million, procured through open competitive bidding, awarded by June 2020 and completed by June 2023, with a 1-year defect notification period. The project completion date will be accordingly extended from 30 September 2020 to 30 June 2023 (loan closing date: 31 December 2023). The Islam barrage requires a new construction supervision consulting firm totaling $1.7 million, to be recruited through quality- and cost-based selection (at a quality–cost ratio of 80:20). The award is expected by December 2019. The changes in scope of the ongoing Trimmu barrage activities will require two civil works packages—one for additional bridges ($2.2 million) and one for irrigation colony works ($1.9 million). Upgrades of bridges and colony works at the Panjnad barrage will be accommodated through modification of the existing contract. PID will expand capacity building activities additionally costing $1.3 million. The project administration manual was revised in terms of cost estimates, financing plan, implementation arrangements, schedule, procurement arrangements, and safeguard policy requirements. Under the disbursements procedure, the statement of expenditure ceiling of $100,000 was removed because PID has adequate financial management capacity. 10. Technical. A government-funded feasibility study was carried out in 2005, followed by a detailed engineering design in 2007 covering structural repairs (e.g., of the concrete floor, and the bodies of the main and subsidiary barrages); and improvements to the barrages’ operation and monitoring systems, including installation of automated gates and barrage safety monitoring instruments. The proposed interventions are based on various hydrological, hydraulic, structural, and geotechnical investigations and analyses, and the methodologies adopted in the engineering designs are consistent with accepted international standards and practices. The construction technology required for the upgrade of Islam barrage is well-known and widely practiced in Pakistan. Rehabilitation and upgrade of Islam Barrage is included in the revalidated feasibility study of 2018 which concluded that the flood discharge magnitude of 9,401 m3/s remains valid. The detail engineering design review is also included in the terms of reference for the construction supervision consultant for any modification in design that may be required. 11. Economic. An economic analysis was also carried out on the proposed investment in the Islam barrage upgrade, in accordance with ADB’s guidelines for economic analysis.3 The main benefits of upgrading an additional barrage will be sustained agricultural production. An analysis of available data in the command area of the Islam barrage revealed that the cropped area has shrunk by more than 19% between 2014 and 2018, and crop yields declined by about 20%. This implies a significant annual reduction in cropped area and yields of about 5%. 12. Investing in the upgrade of the Islam barrage will minimize the likely losses in agricultural production by restoring the original cropped area and its yield levels. The provision of regulated irrigation will bring an estimated 29,000 ha back to the cropping intensity level of fiscal year (FY) 2014. The investment will eliminate the need for inevitable emergency barrage repairs. Other benefits include less flood damages in the command area, which now is at substantial risk of flooding because of the limited flood passage capacity of the existing barrage. The investment in the Islam barrage is deemed economically viable with an economic internal rate of return (EIRR) of 17.6% and an economic net present value of PRs1,828.4 million. It is lower than the original project EIRR of 23.4% but still robust against an increase in costs or a decrease in benefits, as shown in the sensitivity analysis. The worst-case scenario indicates an EIRR above 13.5%.

3 ADB. 1997. Guidelines for the Economic Analysis of Projects. Manila; and ADB. 1999. Handbook for the Economic Analysis of Water Supply Projects. Manila.

4

13. Financial. The government’s ability to provide adequate financing for the project’s future operation and maintenance (O&M) from the irrigation service charge remains a concern; the revenue from the charge has declined and now meets less than 20% of O&M expenditures. The O&M thus largely depends on public funding. The government has long recognized the issue and initiated sector reforms in 1997 to improve irrigation cost recovery. However, the reform progress has not been encouraging. The government is now committed to increasing the irrigation fee, improving the assessment, and raising fee collection to 90% of the improved assessment by 2022.4 PID prepares and regularly updates the O&M expenditure needs of the assets. Since 2008, the maintenance budget has increased from PRs2.3 billion to PRs9.2 billion, while the operational budget (including nearly 40,000 staff) rose from PRs4 billion to PRs11 billion. The aging infrastructure led to an increase in maintenance costs from one-third of the total O&M budget to about half of it. Overall, the annual increase of the O&M budget during FY2008–FY2019 averaged 11%. This matches the trajectory of the non-development budget of the Government of Punjab. Based on this, the O&M budget forecast till FY2027 shows a more than twofold increase from PRs20 billion to PRs46 billion. Since the share of PID O&M remains at 1%–2% of Punjab’s non-development budget, the fiscal headroom for increasing the O&M allocations to irrigation projects remains adequate. For the Islam barrage, the consultants will prepare an O&M manual. 14. Environmental safeguards. The upgrade of the Islam barrage is smaller in scope than the upgrades in Trimmu and Panjnad. No sensitive receptor, protected area, game reserve, or archeological sites are present at or near the Islam barrage. Environmental screening was performed, and the initial environmental examination (IEE) is in accordance with ADB’s Safeguard Policy Statement (2009). Upgrading the Islam barrage does not cause significant adverse environmental impacts on the area. The impacts are site-specific, reversible, limited to construction, and will be mitigated through the environmental management plan, which includes capacity building and training programs. As such, the overall project categorization of B for environment is the same as at appraisal. The project complies with public disclosure and PID held public consultations. Copies of the community and occupational health and safety plans, and the IEE are available for public viewing at local PID offices and at the Environmental Protection Agency, Punjab. PID prepared the IEE and posted it on ADB’s website in June 2018 as part of the originally considered additional financing, which is no longer needed given the sufficient loan surplus (para. 8). The IEE was updated. ADB's country safeguard review mission in December 2017, and subsequent review missions in November 2018 and July 2019 recommended corrective actions for the construction sites, which have largely been taken. 15. Social safeguards—involuntary resettlement and indigenous peoples. The upgrade of the Islam barrage will involve the relocation of 25 squatter families (170 persons) from the government land they currently occupy. The overall project classification remains A for involuntary resettlement, even though the Islam activities will not have any impact of category A. The project classification remains C for indigenous peoples since no indigenous people as defined by ADB’s Safeguard Policy Statement reside in the Islam barrage area. PID prepared a draft resettlement plan in August 2018 based on detail engineering design of 2007 and posted it on the ADB website as part of the originally considered additional financing, which is no longer needed (para. 8). PID will update the plan during design review. The resettlement plan for the Trimmu and Panjnad barrages has been fully implemented except the compensation payments for four landowners of the Trimmu barrage which is expected in November 2019. Construction work on land of these landowners commenced after agreement to avoid the risk of floods and potential damage near the barrage. Works on Islam barrage will commence after compensation to these land owners, ADB's approval of the updated resettlement plan, and verification by external monitor.

4 World Bank. 2017. Strengthening Markets for Agriculture and Rural Transformation in Punjab Program. Islamabad.

5

16. Climate change. A climate vulnerability and risk assessment was carried out to analyze climatic and hydrological trends and impacts relevant to the performance of the project facilities, notably temperature, floods, and extreme rainfall events. Flows at the Islam barrage are controlled by upstream infrastructure and are mainly driven by summer snowmelt in the upstream (Himalayas) and South Asian monsoon. The onset of the summer monsoon brings heavy rains that often produce extensive flooding in the low-lying areas of Sutlej River Basin in Pakistan. Overall assessment results show that variations in precipitation extremes are either insignificant or low and may not cause significant adverse impacts on infrastructure. Variability in flows arising from increases in maximum and minimum temperatures may affect agriculture. 17. Poverty and social. Rural poverty is relatively high and deeply entrenched in Bahawalpur District, which is in the command area of the Islam barrage. The area is characterized by poor socioeconomic indicators. Farming, including tenant-based farming, is a major source of livelihoods. An estimated 20,000 rural households in the command areas will benefit from reliable irrigation and sustained agricultural production, and about 0.3 million rural residents will benefit from reduced flood risks. The project will offer local employment, since typically at least 60% of unskilled and semiskilled workers employed by contractors are from local communities. The current project is categorized as effective gender mainstreaming, since it supports women in obtaining livelihood skills and gaining access to better education and health. This will be maintained as a complementary activity in the proposed upgrade to the Islam barrage. The gender action plan for the Islam barrage includes a focus on female residents: 200–300 girls will benefit from the upgrade of a girls’ primary school near the barrage to a mid-level school, and at least 150 community members, 50% of whom women, will be trained in livelihood skills. A family park to be developed near the barrage will generate economic activities, serve as a livelihood source for local men and women, and offer a safe public space for the community. 18. Governance. The financial management assessment carried out for the original project in 2014 and updated in 2019 concluded that the financial capability of PID and the PMO was generally satisfactory in terms of recording financial transactions and balances, providing regular records and monitoring reports, and safeguarding assets. For the PMO the financial management assessment highlighted the inadequacy of its internal audit mechanism and the provision of staff, and insufficient incentives to avoid frequent staff turnover. These issues have since been solved under the ongoing project. PID assured ADB that it will use a similar mechanism for the internal audit at the Islam barrage as adopted for the Trimmu and Panjnad barrages, and that the PMO staff incentives will be continued and further improved. The procurement risk assessment conducted for Punjab and PID in the original project concluded that the general environment for procurement in PID is satisfactory, and to a large extent harmonized with internationally accepted practices and procedures. PMO procurement and contract management staff capacity is adequate to administer procurement for the additional scope. 19. Staff views. ADB staff confirms due diligence compliance with the project administration instruction on change in loan projects and that comments from the Procurement, Portfolio and Financial Management Department; Office of the General Counsel; Controller’s Department; Strategy, Policy and Partnerships Department; Economic Research and Regional Cooperation Department; and Sustainable Development and Climate Change Department were addressed.

VI. THE PRESIDENT'S RECOMMENDATION 20. The President recommends that the Board approve the major change in the Trimmu and Panjnad Barrage Improvement Project in Pakistan as described in paras. 1–2.

6 Appendix 1

REVISED DESIGN AND MONITORING FRAMEWORK

Impact(s) the Project is Aligned with: Sustained agricultural production in the command areas of the barrages (Punjab Growth Strategy 2018) a

Results Chain

Performance Indicators with Targets and Baselines

Data Sources and Reporting

Mechanism Risks Outcome Safe Trimmu, Panjnad, and Islam barrages delivered reliable irrigation water supplies to their canals

By 2020: a. Trimmu barrage main irrigated area is maintained at 1.21 million ha (2014 baseline: 1.21 million ha) By 2021: b. Panjnad barrage main irrigated area is maintained at 0.66 million ha (2014 baseline: 0.66 million ha) By 2022: c. Islam barrage main irrigated area is maintained at 0.047 million ha (2019 baseline: 0.047 million ha)

Punjab Agriculture Department’s crop reporting services

Climate-induced reduction in river flows and inter-sector competition for adjudication of water result in reduced water availability for irrigation. Insufficient provision of O&M budget results in poor operational performance.

Output 1 Trimmu barrage rehabilitated and upgraded

By 2020: 1a. Trimmu barrage capacity for water supply (to the associated canals) is maintained at 577.14 m3/s (2014 baseline: 577.14 m3/s)

1a. PID barrage operation data

Deterioration of security conditions reduces interest of international contractors.

1b. Water losses through the gates reduced to zero (2014 baseline: 15.3 m3/s)

1b. PID barrage operation data

1c. Trimmu barrage flood capacity is increased to 24,777 m3/s (2014 baseline: 12,743 m3/s)

1c. PID quarterly reports

1d. One basic health unit for women is upgraded (2014 baseline: 0)

1d. PID quarterly reports

Output 2 Panjnad barrage rehabilitated and upgraded

By 2021: 2a. Panjnad barrage capacity for water supply (to the associated canals) is maintained at 408.7 m3/s (2014 baseline: 408.7 m3/s)

2a. PID barrage operation data

Deterioration of security conditions reduces interest of international contractors.

2b. Water losses through the gates are reduced to zero (2014 baseline: 14.2 m3/s)

2b. PID barrage operation data

2c. Panjnad barrage flood capacity is increased to 24,495 m3/s (2014 baseline: 19,822 m3/s)

2c. PID quarterly reports

Appendix 1 7

Results Chain

Performance Indicators with Targets and Baselines

Data Sources and Reporting

Mechanism Risks By 2022: 2d. One primary school for girls is upgraded to a mid-level school (2014 baseline: 0)

2d. PID quarterly reports

Output 3 Islam barrage rehabilitated and upgraded

By 2022: 3a. Islam barrage capacity for water supply to the Qaim and Upper Bahawal canal systems is maintained at 35.5 m3/s (2019 baseline: 35.5 m3/s)

3a. PID barrage operation data

Deterioration of security conditions reduces interest of international contractors.

3b. Water losses through the gates are reduced to zero (2019 baseline: 2.8 m3/s to 8.4 m3/s)

3b. PID barrage operation data

3c. Islam barrage flood capacity is increased to 9,401 m3/s (2019 baseline: 7,560 m3/s)

3c. PID quarterly reports

3d. One primary school for girls is upgraded to middle school (2019 baseline: 0)

3d. PID quarterly reports

Output 4 Capacities of the communities and PID improved

By 2022: 4a. At least 300 community members (250 of them women) in Trimmu and Panjnad and at least 150 community members (50% women) in Islam increased their skills in a specific training subject (2014 baseline: 0)

4a. PID quarterly reports

Local customs and milieu not conducive for trained women to be employed, or appropriate job opportunities do not exit.

4b. Construction of two-family recreational parks, one each in the vicinity of Trimmu and Islam barrages, with 30% of the commercial spaces allocated to women (2014 baseline: 0)

4b. PID quarterly reports

4c. Revised guidelines for O&M approved and used by PID (2014 baseline: not applicable) By 2023:

4c. PID quarterly reports

Lack of enforceable regulations

4d. At least 20 PMO staff with enhanced skills in IWRM and FRM placed in the relevant positions (2014 baseline: 0)

4d. PID quarterly reports

Skills and knowledge not maintained

4e. IWRM and FRM approaches officially approved and implemented in the business operations of PID’s SPRU and PEA (2014 baseline: 0)

4e. PID quarterly reports; ADB technical assistance reportsb

Trained staff of PMO and PID are not retained throughout the project life.

8 Appendix 1

Key Activities with Milestones

1. Rehabilitation and upgrade of Trimmu barrage 1.1 Recruitment of PMO staff for the project (Completed) 1.2 Recruitment of consultants (Completed) 1.3 Bid invitation, evaluation, and award of ICB-01 contract (Completed) 1.4 Implementation of resettlement plan (Jan 2015–Nov 2019) 1.5 Construction works on ICB-01 (May 2016–Apr 2020) 1.6 Implementation of environmental management plan (May 2016–Apr 2020) 1.7 Commissioning and operation tests (Apr 2020–Mar 2021) 1.8 Upgrade of women’s basic health unit (Jan 2019-Jan 2020)

2. Rehabilitation and upgrade of Panjnad barrage 2.1 Bid invitation, evaluation, and award of ICB-02 contract (Completed) 2.2 Implementation of resettlement plan (Completed) 2.3 Construction works on ICB-02 (July 2018–July 2021) 2.4 Implementation of environmental management plan (Jul 2018–Jul 2021) 2.5 Commissioning and operation tests (Aug 2021–Jul 2022) 2.6 Upgrade of one primary school for girls (Oct 2019–Mar 2022)

3. Rehabilitation and upgrade of Islam barrage 3.1 Bid invitation, evaluation, and award of ICB-03 contract (Dec 2019–June 2020) 3.2 Two resettlement specialists to undertake internal and external monitoring of resettlement plan (Mar 2020) 3.3 Implementation of resettlement plan (Jan 2019–Jun 2020) 3.4 Construction works on ICB-03 (June 2020–June 2022) 3.5 Implementation of environmental management plan (June 2020–June 2022) 3.6 Commissioning and operation tests (June 2022–Oct 2022) 3.7 Upgrade of one primary school for girls (Jun 2020–Mar 2022) 4. Improved capacities of the communities and PID 4.1 Awareness raising among communities on FRM, girls’ education, and health care (Apr 2019–Dec 2022) 4.2 Training for local women at vocational and health centers (April 2019–Dec 2022) 4.3 Construction of recreational parks (Dec 2019–Jun 2023) 4.4 Preparation of guidelines for robust O&M of the barrages (Oct 2019–Jun 2023) 4.5 Training for 20 staff of PID’s PMO on FRM and IWRM (Mar 2016–Mar 2023) 4.6 Capacity building of executing agency’s SPRU and PEA for IWRM and FRM (Oct 2019–Jun 2023)

Project Management Activities Recruitment of PMO staff for the project (Completed) Recruitment of consultants (Completed) Recruitment of construction supervision consultant for the Islam barrage (May 2019—Dec 2019)

Inputs

ADB Government

Loan (OCR) Loan (COL)

$50 million SDR64,982,000 ($100 million equivalent at approval)

$23 million

ADB = Asian Development Bank, COL = concessional OCR lending, FRM = flood risk management, ha = hectare, ICB = international competitive bidding, IWRM = integrated water resources management, m3/s = cubic meters per second, O&M = operation and maintenance, OCR = ordinary capital resources, PEA = Punjab Engineering Academy, PID = Punjab Irrigation Department, PMO = project management office, PPMS = project performance monitoring system, SPRU = strategy and policy reform unit. a Government of Punjab. 2015. Punjab Growth Strategy. Lahore. b ADB. 2016. Institutional Transformation of the Punjab Irrigation Department to a Water Resources Department. Manila (TA 9255).

Source: Asian Development Bank.

Appendix 2 9

LIST OF LINKED DOCUMENTS http://www.adb.org/Documents/MC/?id=47235-001-3

1. Performance Overview

2. Revised Project Administration Manual

3. Revised Financing Plan

4. Reallocation of Proceeds

Supplementary Documents

5. Economic and Financial Analysis

6. Initial Environmental Examination

7. Resettlement Plan

8. Summary Poverty Reduction and Social Strategy

9. Climate Vulnerability and Risk Assessment Report

10. Gender Action Plan