Preparing Kurram Tangi Integrated Water Resources Development Project (ADB-52051-003)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Pakistan
Geographic location where the impacts of the investment may be experienced.
Specific Location
North Waziristan
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Nov 15, 2021
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Islamic Republic of Pakistan
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Energy
  • Hydropower
  • Water and Sanitation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 5.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 5.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Apr 25, 2022

Disclosed by Bank Nov 15, 2021


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to ADB documents, the proposed investment will be in the form of a Project Readiness Financing (PRF) that will conduct all due diligence, including safeguard assessments, and prepare due diligence and safeguard documents that the government and ADB need to approve for the Kurram Tangi Integrated Water Resources Development Project. This will include update of land acquisition and resettlement plan, environment impact assessment, financial and economic analysis, and gender action plan. The PRF will also help prepare procurement documents and implement procurement activities. This will include support to the executing and implementing agencies in carrying out (i) bidding process, specifically advance procurement actions before ADB Board approval of the ensuing project; and (ii) start-up activities such as the recruitment of project implementation support consultants and/or staff.

PROJECT RATIONALE AND LINKAGE TO COUNTRY/REGIONAL STRATEGY

Pakistan is not a water secure country. It is close to the water scarcity threshold of 1,000 cubic meters per person per year. The country's water security is undermined by poor water resources management, weak water services delivery, including irrigation and drainage services, poor water data and analysis, weak planning and allocation, pollution, and low water productivity.

The agriculture sector in Pakistan contributes 18.5% to the country's gross domestic product (GDP) and provides employment for approximately 38.5% of the labor force. Agriculture remains the main source of livelihood for the majority of Pakistan's rural population. Over the last decade, the performance of the sector has remained subdued due in part to inadequate water availability. The agriculture sector uses 90.0% of the available water. The irrigated agriculture produces 80.0% of the total food requirements and contributes to around $22 billion to annual GDP. Khyber Pakhtunkhwa province, where the project is located, has 17% of the country's population and contributes up to 10.5% to the country's GDP. About 22.0% of Khyber Pakhtunkhwa province's GDP is from the agriculture sector, which also provides jobs to about 37.0% of the labor force in the province. Nearly 80.0% of the province's population lives in rural and peri-urban areas, where about 85.0% directly or indirectly earn their livelihood from agriculture.

The country's energy sector is a constraint to economic growth. Currently, around 60 million people have no access to energy. Hydropower only accounts for 27% of the total energy produced in the country. In addition to potential water scarcity and the energy crisis, climate change is posing various challenges to Pakistan's water and energy sectors. It is expected that in the near future, Pakistan's hydrological cycle will be impacted due to global warming, which will alter the timing and intensity of extreme events (flood, droughts, heatwaves, high winds, and cyclones etc.). Use of diesel pumps for groundwater extraction and energy production using oil produce greenhouse gases into atmosphere and will intensify warming. There is a need to produce more green energy to cater for the current and future energy needs.

The Government of Pakistan has requested project readiness financing (PRF) from the Asian Development Bank (ADB) to prepare the ensuing Kurram Tangi Integrated Water Resources Development Project. The ensuing project is a priority for the government and is aligned with ADB's Strategy 2030, addressing poverty and inequality, climate change and disaster risk management, rural development and food security, and strengthening governance and institutional capacity. The government's Vision 2025, and ADB's Country Partnership Strategy (2020 2025), all emphasize the need for water, energy and food security, reducing rural poverty and enhancing rural livelihoods, and reducing regional growth disparities.

The PRF will ensure high project readiness of the ensuing project, thereby facilitating the timely and cost- effective achievement of the project outcomes. The PRF and the ensuing project are listed in the country operations business plan (COBP), 2021 2023 for Pakistan. The government approved the Planning Commission Proforma-II for the proposed PRF in June 2021. ADB's value addition will include (i) capacity development for improved water resources management; (ii) updating environmental impact assessment, land acquisition and resettlement plan, gender action plans with a special focus on gender equality in line with detailed design; (iii) ensuring climate-resilient designs; (iv) integration of command area development with the key water storage and irrigation infrastructure; and (v) demonstration of digital technologies, modernized irrigation, and climate smart agriculture practices.

CONSULTING SERVICES

WAPDA will recruit all consultants following the ADB Procurement Policy (2017, as amended from time to time), Procurement Regulations for ADB Borrowers (2017, as amended from time to time. Value for money shall be achieved by making use of advance contracting and open competitive bidding procedures for consultant recruitment.

 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.
Responsible ADB Officer Yaozhou Zhou
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, CWRD
Executing Agencies
Water and Power Development Authority
Mr. Muhammad Amin Jan
701 WAPDA House
Lahore, Pakistan

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.adb.org/forms/request-information-form

ADB has a two-stage appeals process for requesters who believe that ADB has denied their request for information in violation of its Access to Information Policy. You can learn more about filing an appeal at: https://www.adb.org/site/disclosure/appeals

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.

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