IBRD to provide $145.6 million for PBIP-II
RECORDER REPORT
FAISALABAD (April 04 2010): International Bank for Reconstruction and Development (IBRD) will provide $145.6 million for Punjab Barrages Improvement Phase-II Project (PBIP-II) to strengthen and modernise Jinnah barrage and affiliated works to enable reliable and uninterrupted supply of water for over 2.1 million acres of farmland benefiting about 600,000 farm families for irrigation and domestic water users; and to build IPD's capacity in improved water resources and irrigation system management.
According to WB project report, the project would help support first strategic objective of the Country Assistance Strategy (CAS) and PRSP-II of Restoring Stability and Maintaining Growth for Sustainable Development, support aim of the CAS of sustained growth recovery with enhanced resilience to shocks and volatility to growth. The CAS emphasises the need to strengthen water sector governance.
The barrages are strategic assets and their full or partial failure would result in economic and environmental disaster and social chaos. The project would help in avoid such shocks to the economy/society and help develop resilience for sustained growth and poverty reduction.
WB report revealed that the Bank has a long history of partnership and collaboration with Pakistan. In particular, the Bank is seen as a trusted partner in the water sector and a co-ordinator for international financial institutions and other development partners.
The two largest provinces (Punjab and Sindh), which manage more than 85 percent of the IBIS, have embarked on far reaching irrigation reforms and have made significant progress on the reform agenda. Altogether, the Bank has supported more than 48 operations in irrigation, drainage and water resources development and the power sector so far.
With the assistance of the Bank, the Government of Punjab has already completed the rehabilitation and modernisation of the Taunsa Barrage located in the Indus River below the Jinnah Barrage, report pointed out. Therefore, the Government of Punjab is seeking support from the World Bank for its knowledge, expertise, experience and it seeks a reliable partner in the sector, in addition to financing.
More specifically, the Bank is expected to help ensure that (i) a systematic approach is adopted in the design of rehabilitation of the barrages (ii) thorough planning is carried out to minimise the interruptions to operation during construction along with a suitable communication strategy to bring on board major stakeholders; (iii) any environmental and social concerns are properly addressed, (iv) the project works and facilities are procured and constructed with good quality, within the budget, and on schedule; (iv) the operation and maintenance will be upgraded and strengthened as a model for safe and sustainable use of other barrages; and (v) institutional capacity is strengthened in carrying out such operation and overall management of the water resources and the river system in the province through technical assistance and various components of the project.
WB report revealed that Pakistan has enjoyed good economic performance in recent years. After a decade of political instability, macroeconomic crisis, and limited economic and social progress in the 1990s, Pakistan has emerged as one of the fastest-growing economies in Asia, with rising per capita income and improved social indicators. With growth there has been an increase in demand for better infrastructure.
However, Pakistan's infrastructure platform needs significant investment in order to support Pakistan's growth and service delivery goals. Infrastructure services, including electricity, paved roads, municipal services, and telecommunications reach a relatively low proportion of the population.
At the same time, improvements in basic infrastructure are critical to improving human development outcomes. Approximately 40 percent of the population lack access to power and about 75 percent of all rural health, education and market facilities are accessible only by earth tracks.
Similarly, water and sanitation services, which are critical to achieve human development outcomes, have suffered from poor quality and limited availability. The water quality in rivers' streams and canals has been deteriorating, leading to harmful impact on the public health.
WB report pointed out that the Pakistan Country Assistance Strategy (CAS) for FY10-14 will be implemented in a period of uncertainty with a focus both on immediate needs dictated, in part, by ongoing conflict and the return to macroeconomic stability; but also a medium term approach that supports growth, service delivery, improved institutional governance, human development and infrastructure investment through existing platforms.
The aim of the CAS is sustained growth recovery and to enhance Pakistan's resilience to shocks. The Strategic Objectives for the FY10-14 CAS are based on both selectivity and flexibility in a results framework that specifies desired outcomes and intermediate indicators, but also provides for unexpected challenges and evolving demands.
The Strategic Objectives focus on three core areas:
-- Restoring Stability and Maintaining Growth for Sustainable Development;
-- Investing in Pakistan's human development resources and protecting the poor;
-- Improving governance and service delivery
These Strategic Objectives respond to Pakistan's needs and the World Bank Group's comparative advantages. They will build upon existing platforms, particularly in health, education, social protection, and infrastructure; while political, economic and social developments will influence specific opportunities and possibly constrain others.
For first strategic objective, restoring stability and maintaining growth over the CAS period will require significant investment and continued policy reforms, particularly to address infrastructure deficits, improve competitiveness, and address cross cutting issues such as environmental management and urban planning.
Among other things this requires investments in improved water management for agriculture productivity and growth. During the CAS period agricultural growth will provide a basic foundation for robust growth.
A critical prerequisite will be an efficient and well-run irrigation system, particularly in Sindh and Punjab provinces. While progress has been made, the irrigation and drainage system suffers from deteriorating infrastructure and weak governance. To reduce volatility to growth, Bank's support will include rehabilitation of major assets such as barrages and continued capacity development at the regional and federal level for managing water resources, WB report added.
Copyright Business Recorder, 2010
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