GOVERNMENT OF PAKISTAN
PLANNING COMMISSION
PRODUCTION SECTORS
(Agriculture Production)
PC-1 FOR THE PROJECT
Water Conservation and Productivity
Enhancement through High Efficiency
Irrigation Systems (Revised)
Pakistan Agricultural Research Council
Ministry of Food and Agriculture
Islamabad
July 2010
GOVERNMENT OF PAKISTAN
PLANNING COMMISSION
PC-1 FORM
PRODUCTION SECTORS
(Agriculture Production)
1. NAME OF THE PROJECT Water Conservation and Productivity
Enhancement through High Efficiency
Irrigation Systems (Revised)
2. LOCATIONS The project would be implemented in cluster form
in identified areas of Punjab, Sindh, Khyber
Pakhtunkhwa (K-P), Balochistan, AJK, FATA,
Gilgit-Baltistan (G-B) and ICT. Preference will be
given to those areas growing high value crops,
water scarce areas, cultivable waste lands,
commands of new irrigation schemes including
small and mini dams and lands of fragile
environments. Priority areas will be identified for
the implementation of the project in clusters in all
the four provinces and Areas of AJK, FATA, G-B
and ICT.
3. AUTHORITIES RESPONSIBLE FOR
i. Sponsoring Government of Islamic Republic of Pakistan
through Ministry of Food and Agriculture
(MINFA), Islamabad
ii. Execution a) Pakistan Agricultural Research Council
(PARC), Islamabad through National Project
Directorate (NPD) comprising of Federal
Project Management Unit (FPMU), Project
Design, Monitoring, Testing and Training
Unit (PDMTU), and 8 Regional Project
Monitoring Units (RPMUs)
b) Provincial Departments of Agriculture
(Directorate Generals/ Directorate of OFWM,
Punjab, K-P, and Balochistan; Directorate
General of Agricultural Engineering and
Water Management Sindh) through Provincial
Project Implementation Units (PPIUs);
Agriculture Department of AJK, G-B, FATA
and ICT through Project Implementation
Units (PIUs).
c) Private Sector Service and Supply Companies
(SSCs) registered with the NPD-FPMU
d) Farmers/Beneficiaries
iii. Operation and maintenance a) Farmers/Beneficiaries
b) Supply and Services Companies (SSCs)
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iv. Concerned Federal Ministry Ministry of Food and Agriculture (MINFA),
Government of Pakistan, Islamabad.
4. (A) PLAN PROVISION
i) If the project is included in the The proposed project is in-line with objectives of
medium term/five year plan, the Medium Term Development Framework
specify actual allocation. (MTDF) 2005-2010 under sub-sector On-Farm
Water Management Programme with financial
allocation of Rs. 46.781 billion during the period
2005-10. The project was therefore funded out of
allocation for water sector during 2007. MTDF
emphasizes among others the followings:
a) Maintain water quality through protecting
water resources by preventing their pollution.
b) Extensive research in water saving
technologies
c) Efficient utilization of agricultural land.
d) The concept of more crops per drop of water
shall be pursued to ensure improved
irrigation methods and practices.
e) Conservation and optimizing water use
efficiency.
A total of Rs. 3411.55 million were allocated for
the project during the last three and the current
year federal PSDPs.
Rs. 1250 million during 2007-08 PSDP
Rs. 1000 million during 2008-09 PSDP
Rs. 800 million during 2009-10 PSDP
Rs. 411.55 million during 2010-11 PSDP
ii) If not included in the current Thematically the priority for water conservation
Plan, what warrants its has been given in the plan. However, no specific
inclusion and how is it now allocation has been made in the plan. Considering
proposed to be accommodated. the high priority of the project as evident from the
directives of the President and Prime Minister, the
project was included under the Special Initiatives
of the President‟s Programme during 2007.
The President of Pakistan during a presentation
made on November 24, 2005 directed to initiate
drip/sprinkler irrigation in the country. In
compliance to the directive, this project was
prepared to conserve water and enhance
productivity in the country. Presentation to the
Prime Minister of Pakistan on the project was
also made on May 8, 2006, wherein, project was
conceptually cleared with the directive to involve
a minimum number of players in the
implementation of the project and proposed
necessary adjustment in cost sharing
arrangements.
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iii) If the project is proposed to be Not applicable
financed out of block
provision, indicate:
B) PROVISION IN THE The project is being executed since September 2007
CURRENT YEAR and Rs 411.55 million have been allocated by federal
PSDP/ADP government for the year 2010-11. In addition to this
the USAID has committed to provide Rs. 1700.0
million (USD 20.0 million) as a grant during 2010-
11.
5. PROJECT OBJECTIVES
i) The objectives of the sector/ a) Objectives of Medium Term Development
Sub-sector as indicated in the Framework 2005-10:
medium term/five year plan. Objective of MTDF 2005-2010 in respect of
Indicate objectives of the water resources management for irrigated
project and a linkage agriculture emphasizes conservation measures
between the proposed that would upgrade “Potentially Available Water
project and the sectoral Resources” to the category “Useable Water
objectives. Resources”. Due importance shall be given to
measures that would enhance water use
efficiency. Similarly, the concept of “more crop
per drop of water” through a national plan to
enforce improved irrigation methods and
practices has been stressed. Further the objective
of the MTDF is to support the private
investments in irrigation sector. Enhancement of
water productivity through high efficiency
irrigation systems is also one of the key
objectives of MTDF 2005-10.
b) Project Objectives:
The primary objective of the project is to
increase agricultural production by utilizing
available irrigation water efficiently through
installation of High Efficiency Irrigation
Systems (HEIS) both in Barani and canal
command areas. Saved water would be used
either to increase cropping intensity and/or for
the expansion of the irrigated area. The
proposed project will be implemented in
Punjab, Sindh, Khyber Pakhtunkhwa,
Balochistan, AJK, FATA, GB and ICT. The
main objectives of the project are as follows:
Saving of water both from conveyance and
application at the field level;
Increase of crop yields and improvement of
quality of the produce;
Saving of fertilizers and other chemicals
used in agriculture;
Increase of cropping intensity for existing
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commands;
Expansion of irrigated area and cultivation
of un-commanded lands in new irrigation
schemes
The implementation of the proposed project
will result in the following benefits in the
project areas.
1. About 40-50% water will be saved in project
areas compared to current surface irrigation
practices.
2. Cost of land development and labour would
be reduced.
3. Use of chemicals to control weeds and crops
pests will be reduced.
4. Utilization efficiency of fertilizers will be
improved.
5. Cropping intensity will be increased for the
existing commands and new areas will be
brought under command for the new
schemes
6. Water productivity of project areas is
expected to be enhanced by 30 – 100% due
to better water management and production
practices.
c) Project Objectives in Quantitative Terms:
1. Installation of drip/sprinkler irrigation
systems on estimated area of 265,950 acres
for field crops, orchards and vegetables.
2. About 20000 farmers will install the HEIS
systems and hence will get training on
O&M of the systems by the SSC. A further
6750 farmers will get specially designed
training on production technologies,
improving water productivity and farm
profitability by the Provinces and other
areas. Training of about 600 professionals
in survey and designing of systems,
installation, operation, trouble shooting and
management of Systems.
3. Reduction in waterlogging and salinity in
project areas.
4. Increase of cropping intensity by about
40 % in the existing and new commands.
5. Increase of crop yield by 30-100%
depending on the crop and management
practices followed by the farmers.
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d) Sectoral Relationship
Freshwater is a finite and a scarce resource. With
increasing population and food requirement,
availability of water per capita is decreasing.
Therefore, new water conservation techniques
need to be promoted. The project objective are in-
line with the priority areas of the water sector i.e.
making use of available water consciously and
more efficiently to get maximum crop production
per drop of water. All efforts to conserve the
available water resources are being made.
The proposed project responds to the overall
national strategy to mobilize and conserve
available water resources. The project is
transferred to PARC on July 29th 2009 and the
existing infrastructure of PARC will be used along
with provincial partners. Implementation will be
done by the provinces (PPIUs) through Service
and Supply Companies (SSCs) registered with the
NPD-FPMU. The PARC will be responsible for
design verification and approval, quality control,
monitoring, R&D and technical services.
The project will introduce high efficiency
irrigation systems in the country with the objective
to increase agricultural production to a level where
not only domestic needs are met but exportable
surplus is also generated for foreign exchange
earnings. Promotion of these water saving systems
would result in cultivating more area and
improving the quality of agricultural commodities
to compete in the international market. The
proposed project is also environment friendly as
interventions envisaged therein allow efficient
utilization of fertilizers, which is costly
agricultural input, as well as help minimization of
herbicide/pesticide‟s use.
Excessive mining of groundwater resources has
further aggravated the situation especially in
Northern Punjab, FATA and Balochistan. To cope
with the situation, existing irrigation practices
must be improved through promotion of high
efficiency irrigation technologies for sustainable
crop production.
Fruits are the major source of income in the
uplands of the country. Further expansion of area
in fruit production is generally constrained due to
undulating topography and water scarcity.
Proposed project would improve the livelihood of
farming community of hilly or mountainous areas
by growing high value crops through drip
irrigation system.
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Drip/Sprinkler Irrigation Systems have been
recognized world over as the efficient methods of
irrigation attaining irrigation efficiency i.e. up to
90% compared to 50% efficiency of conventional
surface irrigation system.
The implementation of the project with the
installation of Drip/Sprinkler Irrigation Systems is
expected to improve water productivity. Thus, the
saved water can be used to bring additional area
under cultivation.
High efficiency irrigation technologies are cost
intensive; therefore, economic viability depends on
growing high value crops. In order to make high
efficiency irrigation technologies sustainable in the
project areas training of personnel and support
services is essential. Ownership of schemes by
farmers is obtained through cost sharing
arrangement with stakeholders.
The installation of high efficiency irrigation
systems is expected to contribute to private sector
development and accelerate the pace of farm
mechanization, technological introduction and
modernization of irrigation technologies in the
country.
ii) In case of revised project, The Project was transferred by MINFA to PARC
indicate objectives of the project on July 29th 2009 under the directive of the Prime
if different from original PC-I. Minister‟s Secretariat endorsing the directive of the
President of Pakistan. The overall objectives of the
project remain the same. However, based on the
experience of last three years, the administrative
arrangements and implementation strategy have
been changed. Project will be implemented by the
provinces through the registered SSCs. The
Design, supervision, monitoring, quality control,
research and technical services will be the
responsibility of PARC instead of Consultants. For
this purpose PARC will establish PDMTU at
Islamabad and RPMUs at eight selected regions.
The PPIUs will implement the project through the
SSCs considering the extremely low performance
of the project in the last two years and by
simplifying the procedures to accomplish the
desired targets. The survey, design and installation
of systems including the post-installation O&M
services and training of farmers will be provided
by the registered SSCs. The technical services
including training and quality testing support will
be provided by PARC.
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6. DESCRIPTION AND JUSTIFICATION OF THE PROJECT
A BACKGROUND
i) Background
Agriculture is Pakistan‟s largest single sector of the economy, ahead of manufacturing, and accounts
for 21.8 percent of Gross Domestic Product (GDP). Due to higher growth in the manufacturing and
service sector the share of the agricultural sector has declined from over 35% in the early 1970s to
30% in 1980/81 and 21.8% at present. The agriculture sector at present employs 17.5 million
workers representing 47.6% of Pakistan‟s total labour force. The livelihoods of 62 % of population
(89 million) living in rural areas directly or indirectly depends on agriculture. The latest Census
indicates that there are 5.1 million farmers with an average farm size of 3.8 ha which has declined
from the average farm size of 4.7 ha and 5.3 ha in 1980 and 1972, respectively. Sixty nine (69)
percent of the farmers are reported owner-operators as compared to 55% in 1980 and 42% in 1972.
The agriculture sector is, therefore, a key sector of economy contributing 60% of foreign exchange
earnings through export of value added agricultural produce and employing directly or indirectly
62% of rural population.
In general agricultural production has kept pace over the years with increasing demand mainly
through horizontal expansion. Yields have remained fairly constant and below the average of
comparable countries but showing some improvements in the last five years. Production of
vegetables in particular tomatoes and potatoes has tripled in the last 20 years indicating a strong
demand. The low yields are mainly due to lack of water and inefficient use of agricultural inputs
including water. As the potential for horizontal expansion has been largely exhausted the need for
intensification and modernization of agriculture including modern irrigation techniques has become
more pressing to satisfy the ever-growing food requirements of the country.
ii) Present Status of Irrigated Agriculture
Food security is the major GOP policy objective. Pakistan‟s current population has reached 170
million at 1.8% growth rate and will reach 221 million by 2025. This demands urgent steps to
increase the agricultural production to ensure food security. According to “Lower Demand
Scenario” of Planning Commission estimates for demand and production of selected agricultural
commodities in 2010 and 2025 are presented in the Table 1.
Table 1 According to “Lower Demand Scenario” Estimates for Demand and Production
of Selected Agricultural Commodities in 2010 and 2025
Crop Per Capita Existing Production and Projected Production
Demand Requirements (M. Tonnes)
(kg/annum)
2000 2010 2025
Wheat 154.0 21.11 26.69 34.03
Rice 14.5 5.16 5.70 6.20
Cotton 8.8 1.91 2.10 2.20
Sugar 28.4 47.50 55.20 65.00
Edible Oil 16.2 4.41 5.02 6.41
Maize 12.7 1.65 2.20 2.81
Fruit 72.5 5.85 12.54 16.02
Source: Water Sector Strategy by ADB
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The irrigation water requirement of this level of production would be 135 MAF by 2025 against
existing availability of 103 MAF at current level of water use efficiency. In addition, the
municipal and industrial water demand is expected to increase from 4.1 in 2004 to about 12.1
MAF in 2025, albeit with some return flow to the river system. It is estimated that the shortfall
of irrigation water in 2025 will be about 31.39 MAF. It follows that water is the constraining
factor for agricultural expansion. In the country there are 8.25 million ha of cultivable land that
is not being used due to the lack of water. Although during the last four decades the water
resources of Pakistan have expanded due to construction of dams, canals and mobilization of
groundwater and irrigated area has increased, the development in the water resources has not
kept pace with the population growth. The per capita water availability has declined from 5,650
m3 in 1951 to presently 1100 m3. In 2010 not more than 1000 m3 will be available per person
thus making country as water scarce.
Unfortunately there is little additional water that can be mobilized. Construction of some new
dams is being considered but these will mainly be used to make up for storage capacity lost
through sedimentation. A particular risk for Pakistan‟s agriculture is the dependence on one
single river system only. Droughts, when they occur, affect the whole country and cannot be
compensated by other river systems. Groundwater is an important source of water but
exploitation in many areas has exceeded the recharge capacity hence the water table is falling
and water quality is deteriorating due to the intrusion of saline water.
Barani lands in general have a much lower productivity than irrigated lands due to the higher
risks of farming and the corresponding lower level of inputs. Some of the Barani lands that have
previously not been irrigated because of difficult terrain could now be irrigated using drip or
sprinkler irrigation systems.
All this emphasizes the need to invest in water conservation and improvement in water use
efficiency. It requires a shift in agricultural policies to encourage water conservation, crop
diversification and productivity improvements. Promotion of high efficiency irrigation is one of
the means to achieve these objectives.
iii) Shortcomings of Existing Irrigation Systems
Traditional irrigation practices at farm level are surface irrigation on unlevelled fields. The
efficiency of existing irrigation system is 40% because of outdated irrigation technology and
inherent difficulties of adjusting water delivery to water demand in an extended canal irrigation
system. Waterlogging, salinity and environmental hazards are wide spread. Delivery of
irrigation water to farmers is supply based. Therefore, crop water requirements are not met
timely which negatively affect agricultural production. Existing irrigation practices are the cause
of low yields and do not support production of quality products. On-farm water management
programmes to support lining of watercourses and laser-levelling of fields have started yielding
results after the implementation of the National Watercourse Improvement Programme. These
programmes will be complemented by introduction of HEIS.
The President of Pakistan after being briefed on the situation and the available options in a
meeting with senior officials on January 26, 2006 decided to launch a Programme for the
promotion of drip and sprinkler system. The present Programme is a follow-up on the
President‟s directive.
Recently, a directive was issued by the President‟s Secretariat on June 8th 2009, where the
implementation of the High Efficiency Irrigation Project was shifted to PARC. This change was
primarily due to the extremely low performance of the project in the last 2.5 years, when against the
targets of over 80,000 acres less than 200 acres have been commissioned at the time of transfer of
project to PARC. During the last one year PARC was able to commission around 6000 acres, even
the financial resources were extremely limited during the year 2009-10.
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iv) Review of Previous Drip/Bubbler Irrigation Projects
Only a few projects on a very limited scale had been undertaken in the past for introduction of
high efficiency irrigation systems. These schemes have not always been successful, but the
farmers have seen the benefits, as well as the difficulties, of drip and sprinkler irrigation system.
PARC is the pioneer in developing local manufacturing of Poly-ethylene (PE) plastic pipes and
materials for drip irrigation systems including filters, connections and emitters with the help of
local plastic industry in Lahore. In addition, local manufacturing of low-cost high pressure pipes
and Rainguns were initiated in collaboration with the private sector in Lahore. The current
programme is to be built on this experience. A brief review of previously implemented projects
follows.
a. High Efficiency Irrigation Programmes in Punjab
Introducing Technology of Sprinkler/Drip Irrigation
The project “Introducing Technology of Sprinkler/Drip Irrigation” was implemented during
1982-86 at a total cost of Rs. 4.13 million. Its main purpose was to demonstrate sprinkler and
drip irrigation systems to the farming community in Barani areas of the Punjab through
installation of 16 sprinkler and 3 drip irrigation units as well as exploring possibilities for local
manufacturing of such systems. The scheme was executed in accordance with design
parameters. However, the project did not show desired results due to inadequate training of
beneficiaries, lack of back-up support to users and use of poor quality materials.
Productivity Enhancement Programme (PEP)
The project “Provision of Water Lifting Devices and Sprinkler/Drip Irrigation Scheme” was
implemented in Barani areas of the Punjab during 1991-92 to 1992-93 with the support of
PARC. It was based on the technology developed by WRRI-NARC and indigenized with the
help of local industry. Locally developed 400 portable Raingun sprinkler systems were provided
to the farmers at subsidized costs. The main objective of the scheme was exploitation and
management of water resources in Barani and hilly areas through adoption of non-conventional
irrigation methods. Significant impact of the project on farmers‟ income was observed but
overall the project was not successful largely due to the assumption that „one size will fit to all‟.
Further quality of diesel engines and pumps was questionable and under design to achieve
desired pressures.
OFWM-III Project
OFWM-III Project (OECF Japan assisted) was implemented in nine irrigated and Barani
districts of the province (Lahore, Sheikhupura, Gujranwala, Sialkot, Gujrat, Jhelum, Chakwal,
Rawalpindi and Attock). The project was implemented during 1991-92 to 1999-2000 at a total
cost of Rs. 1,610.47 million. The project achievements included installation of 15 micro
irrigation schemes besides improvement of 3,158 watercourses in irrigated/Barani area,
construction of 86 water storage tanks, precision land levelling of 22,859 acres, establishment of
328 Demonstration Centers, installation of 5 joint/communal tube wells, development of 29 on
farm drainage sites, establishment of 25 training sites for water harvesting, and training of 8,979
staff/farmers. Only 15 high efficiency irrigation systems involving a cost of Rs. 0.30 million
(only 0.02% of total project outlay of Rs. 1,397.18 million) were installed. Such a small
component could not develop the momentum and the critical mass required for the introduction
of a new technology. PARC provided the technical support and training in the areas of water
harvesting and high efficiency irrigation systems. Response was relatively better than provious
projects.
Second Barani Development Project, Rawalpindi
The Second Barani Area Development Project was financed by the Asian Development Bank
and was implemented over a period of six years (1990-91 to 1996-97) at a cost of Rs. 39.00
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million. Under its OFWM component, 50 Rain-gun sprinklers and installation of drip irrigation
systems on 67 acres were included besides construction of 91 water storage tanks, 1,140
dugwells, and installation of three water turbine pumps. It was observed that careful selection of
farmers to assure ownership and provision of support services are essential for success. Unless
the complete technological package including crop establishment methods, irrigation scheduling,
correct fertilizers application, plant protection techniques and requisite technical assistance to
the farmers for operation, maintenance and trouble shooting is provided micro irrigation system
cannot deliver satisfactory performance. The overall impact was not that significant as the
assumption was that „one size will fit to all‟.
b. High Efficiency Irrigation Programmes in Balochistan
Various drip irrigation projects implemented in the province have done a lot to popularize this
new technology in irrigation among the orchard growing farmers of the province. Under a
project undertaken in 1991-92 about 173 ha of trickle irrigation system was installed in various
districts of the province. Out of these Quetta, Mastung, Kalat and Pishin are the prominent ones.
Ten demonstration units of one ha each and two blocks of two ha each were also established in
10 districts of the project area. Extensive in-country trainings were arranged for the officers of
the department and farmers of the area, who have installed drip irrigation systems. About
150,000 rootstocks of apple and cherry were imported from England, which were planted in the
Central Nursery and budded with improved varieties and supplied to the farmers of the area.
Two other projects namely “Introduction of Trickle and Sprinkler Irrigation Systems” and
“Programme for Expanded Trickle/Sprinkler Irrigation Systems” were started in 2000-2001 and
2002-2003, respectively. About 164 ha of trickle irrigation had been installed on farmers' fields
under these two projects. The response was relatively better as services of SSCs were available.
The SSCs have also gained some exposure under these projects. However, productivity part was
weak.
c. Lessons Learnt
It was observed that there is a need for developing adequate technical expertise at the
federal and for the SSCs levels for designing, monitoring and evaluation of pressurized
irrigation systems. Similarly, technical expertise is needed at the provincial level for field
testing and evaluation of system as per approved design.
Provision of rigid pre-designed systems is not feasible for all locations. The design
needs to be flexible and adaptable to meet the requirements of each and every site that
should take into consideration the field size, soil conditions, crop status, water source,
crop water requirements, etc.
Follow up assistance is necessary for keeping the system operative as lack of such
support to farmers result in abandonment of the system.
Complete technological package including crop establishment methods, fertilizer
requirements, plant protection techniques and other agronomic practices is essential for
successful implementation of such interventions.
Focused approach is required through full-fledged projects able to create momentum and
a critical mass instead of making pressurized irrigation technologies a component of
larger schemes.
Active participation of all stakeholders at all stages of implementation ensures successful
execution of envisaged interventions.
Successful operation of the systems demands skills and expertise. It was observed that
proper training of the farmers/operators is the key to success and sustainability of the
installed systems.
Centralized procurement tends to delay the execution of project activities due to lengthy
procedures in the public sector. Therefore responsibility of survey, design and
installation should rest with the SSCs in the private sector.
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Non-availability of water and spare parts are root causes for the abandonment of
schemes.
High initial cost was one of the factors preventing adoptability of the technology.
When high efficiency irrigation systems were introduced in Balochistan some 20 years ago,
the groundwater situation was less stressed than today. The current water scarcity is now
driving farmers to adopt this new technology.
Over the years, considerable advancements have taken place all over the world in computer
assisted design tools, better simulations, and analysis techniques to achieve the most reliable and
optimum design. Similarly, developments in manufacturing technology have also considerably
decreased the initial cost of installation of pressurized irrigation systems that was a major
deterrent for adoption of these technologies. Furthermore, acute water shortage and trend
towards growing higher value crops has motivated farmers in other countries with similar
growing conditions (India, China, Thailand and Near-East countries) to invest in HEISs.
Pakistan is lagging behind in this regard.
B. JUSTIFICATION
Experience of other countries and studies conducted in the recent past recommend that
introduction of high efficiency irrigation systems is effective in conserving surface as well as
groundwater resources. These systems have distinct advantages over surface irrigation system,
which are as follows.
High Efficiency Irrigation systems save about 40-45% of irrigation water, allowing the
farmers to increase their area under cultivation.
Minimum labour is engaged to carry out the irrigation practices.
Land development cost is minimised.
Efficient utilization of fertilizer is enhanced to 70-90%.
Twin menace of waterlogging and salinity is controlled.
Land and water resources are conserved.
Quality and production of the crops is improved.
Overall farmers‟ income is increased.
System is environmental friendly.
Employment for rural population is generated.
Enhancement of crop productivity by 30-100%.
Cropping intensity is expected to increase by 40-45%.
Use of herbicides and pesticides is expected to be minimized.
Allow effective use of liquid fertilizers and marginal quality of irrigation waters.
Other benefits of these systems are increase of crop yield due to better water management practices
and readily availability of plant nutrients through fertilizer injection in the systems i.e. nutrients are
directly supplied to the plant roots, making the food readily available to the plants. Therefore,
utilization efficiency of agricultural inputs is also enhanced. Field experiments have shown that all
the crops produce higher yields and use less water with micro irrigation systems compared to surface
irrigation systems. Improvement of products quality is another feature that would enhance
marketability in international market. It has also been found that in special cases saline water could
also be used with these methods of irrigation for cultivation of crops. Table 2 shows comparison of
yields and water requirements of some of the fruits and vegetables through surface and drip
irrigation systems.
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Table 2 Yields and Irrigation Water Requirements under Flood and Drip Irrigation System
Crop Yield MT/Ha Water Used (mm)
Flood Drip % Yield Flood Drip % Water
Irrigation Irrigation Increase Irrigation Irrigation Saving over
over Flood
Flood Irrigation
Banana 57.50 87.50 52 1760 970 45
Grapes 26.40 32.50 23 532 278 48
Citrus 100.00 150.00 50 1660 640 61
Sugarcane 112.44 138.36 23 969 490 49
Tomatoes 32.00 48.00 50 300 184 39
Brinjal 28.00 32.00 14 90 42 53
Chilli 04.20 06.10 44 100 42 62
C. DESCRIPTION OF THE PROJECT
i) The Original PC-1
The original PC-1 aimed at conversion of about 291,249 acres of surface-irrigated or newly
developed irrigated lands to drip and sprinkler irrigation systems and the establishment of an
institutional and private sector structure to follow-up on project activities after the termination of
government support. The project consists of the following components:
Publicity/Farmer‟s Mobilization Programme
Intensive Training Programme for Professionals and Farmers
Installation of HEISs on about 291,249 acres out of which:
56 % Surface Drip/Bubbler Irrigation Systems (Micro Irrigation)
44 % Sprinkler Irrigation System
Technical and Agronomic Support
Research and Development Programme
The project was to be financed mainly through Federal Public Sector Development Programme.
The capital cost of project was Rs. 18,000.259 million including provincial share of Rs. 2,634.256
million (20% of system cost), farmers‟ contribution of Rs. 2,644.071 million (20% of system cost)
and Supply & Services Companies contribution of Rs. 9.815 million (10% of the system cost for
demonstration plots). The duration of the project was five years. The average cost of the HEISs
including installation was estimated to be Rs. 45,000 per acre (+10% variation). The Federal
Government provided 60% financial support @ Rs. 27,000 per acre (+10% variation) to the
beneficiaries against the cost of system. The Provincial Governments contributed 20%
equivalent to Rs. 9,000 per acre with + 10% variation towards system cost. The remaining cost
of the system has been picked up by the beneficiaries. Arrangement/availability of water source
for the system has been the responsibility of the beneficiaries. The financial support of Federal
and Provincial Governments for installation of the system was limited to 50 acres in a single
case. The farmer, GOP and Provincial Governments would share each of the system cost in the
ratio of 20 or 10%, 60 and 20% or 30%, respectively, subject to the maximum system cost limit
of Rs. 45,000 per acre ( + 10% variation). However, for installation of demonstration plots the
farmer, Supply & Service Company and GOP share was in the ratio of 10:10:80 respectively
with the prescribed limit.
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Establishment of Provincial Coordination and Implementation Units (PCIUs) was proposed for
implementation of the project. Further, Provincial Project Monitoring Units at Chief Minister‟s
Secretariat under the overall supervision of Federal Project Monitoring Unit were also created
for close monitoring of the project activities. Over and above the 60% sharing of the system cost
Federal Government has provided financial support for the establishment and O&M of PCIU
and PMUs.
ii) The Revised PC-1
The revised project PC-1 aims at conversion of about 2,65,950 acres of surface-irrigated or newly
developed irrigated lands to any type or adaptation of drip and sprinkler irrigation systems and the
establishment of an institutional and private sector structure to follow-up on project activities after
the termination of government support. The project consists of the following major components:
Publicity/farmer‟s mobilization programme by provincial OFWM and registered SSCs
Training programme for capacity building of the implementing staff by PARC
Design, installation and post-installation O&M services to farmers on about 265,950 acres
by the registered SSCs
Post installation training and agronomic support to the farmers by the OFWM
Material testing and quality control by PARC
Monitoring and evaluation by PARC
The project is to be financed mainly through Federal Public Sector Development Programme.
USAID has committed to contribute Rs. 4250 million at current prices of USD (USD 50.0
million). The total cost of project is same as Rs. 18,000.030 million including provinces‟ share of
Rs. 2519.883 million and farmers‟ share of Rs. 1,400.116 million. The contribution of Supply and
Services Companies (SSCs), which was mainly for demonstration plots, is limited to Rs. 10.959
million for completed and ongoing demonstration sites. Further contribution of the SSCs will be
minor because target area for demonstration is largely completed. However, based on the
requirement, demonstration area can be enhanced, if needed.
The average cost of survey, design and system installation will range from Rs. 40,000 to Rs.
60,000 per acre based on orchards and crops combinations and type of systems. Farmers‟ share
is fixed at Rs. 5000 per acre. The maximum subsidy for survey, design and system installation
by the SSCs will vary from Rs. 35,000 to 55,000 per acre based on type of the system. In
addition to the system subsidy farmers will be paid Rs. 10,000 per acre for the construction of
the water storage tank for maximum of 70% schemes, wherever needed. If the cost of system is
less than the subsidy, then farmers share will be adjusted accordingly, otherwise the maximum
subsidy will be paid if cost exceeds the maximum subsidy. In case farmer opts for sophisticated
systems, then the excess cost will be paid by the farmer and subsidy will not increase in any of
such circumstances. Arranging the source of water within 100 m from the field for irrigation and
all the earth work for system installations and filling of the pipes will be the responsibility of
farmers.
In order to achieve the project objectives as outlined in Section 5.b, the following strategies will
be adopted:
The project will be implemented in a demand driven mode, where farmers will choose
one of the registered SSC for the given region. Selection of system is farmers‟ choice.
However, farmers need to be mobilized, demonstrated and convinced of the benefits of
system in order to take the investment decision and submit application to one of the
registered SSCs. Registered SSC will arrange farmers visit to the nearby installed system
to demonstrate the system and apprise him/her regarding the most appropriate system
suitable to the farmers‟ needs.
The survey, design, installation and post installation operation and maintenance (O&M)
services will be provided by the registered SSCs for at least one year after formal
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verification and commissioning of the system by the RPMUs in collaboration with
PPIUs/PIUs and district OFWM staff.
Farmers can contact ZTBL to get loan to pay their share. ZTBL will provide loan at their
standard interest rate of 9%. Necessary arrangements have been worked out with the
ZTBL and PARC.
The systems will be designed and installed on turnkey basis by the registered SSCs.
Their registration will be renewed annually based on their performance and previous
registration of all the non-functional SSCs in the project will be cancelled by the NPD.
The Project will be implemented initially in selected cluster areas to make it success.
These clusters include areas of horticultural crops (like citrus, mango, banana, guava,
lychee, etc.) and water scarce areas or areas where water is at premium in all provinces,
AJK, GB, FATA and ICT;
There will be a strong focus on quality. International Standard (ISO, DIN, BS or
Equivalent) will be specified. Material testing and quality control will be maintained by
the National Laboratories to be established at WRRI-NARC. Whereas, the on-site testing
of materials and systems will be accomplished by the staff of the RPMUs and samples
will be provided to the Testing and Quality Control Unit located at WRRI-NARC for
testing and report.
There will be a focus on farmers who are willing to install the systems and therefore, the
previous maximum limit of 50 acre is removed so that all the farmers are entertained
based on system requirement. Previously, limit of 50 acres was proposed but at the same
time centre-pivot sprinkler irrigation system was included in the project. Centre-pivot
sprinkler irrigation system is cost-effective for farm size of over 100 acres. Household
and low-cost Family Drip Irrigation Systems will also be installed through the support of
localized NGOs and the SSCs to address the needs of small holders and the women,
particularly for kitchen gardening. The actual cost of these systems will be worked out
by the project during the course of implementation but subsidy support will be provided
based on already agreed procedures. As the system cost will increase due to small scale
household system, simpler systems will be designed and cost will be fixed per system
basis instead of per acre basis;
The SSC after completing the survey and design for various farms will submit the design
and BOQs to the Design Verification Section of the PDMTU for verification and
approval. After verification and approval of the design, the PDMTU will authorize the
PPIUs for issue of the work order to the SSC for the approved design of the system.
Farmers will pay their share of Rs. 5000 per acre to the SSC after issue of work order by
the PPIU.
After receipt of the work order and farmers‟ share, the SSC will start installation of the
system. No advance will be paid to the SSC for mobilization. After delivery of all the
materials and to the sites and duly verified by the RPMUs/PPIUs, the PPIUs will make
payment of 50% of the system cost to the SSC. The SSC will install the system and after
verification/testing by the RPMUs/PPIUs, the PPIU will make 40% payment to the SSC.
Remaining 10% will be kept as security and will be released on successful operation of
the system for a period of one year and farmers‟ trainings.
Concerted training efforts through:
Intensive one week duration training course for professionals/master trainers on
design, installation, monitoring, quality control, operation and maintenance of HEIS
at the federal and provincial levels by the PDMTU in collaboration with the federal
and provincial training institutions.
Training of farmers in system O&M through short courses and field schools at
demonstration sites and progressive farmers‟ fields by the SSCs.
Capacity building and training of farmers by the PPIUs/PIUs and district OFWM
staff through post installation demonstration and provision of technical services on
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optimum crop production technologies for improving water productivity and
increasing farm profitability.
Production and distribution of manuals in regional languages,
Demonstration sites in all districts of cluster areas,
Seminars and workshops to review experience and to make improvement on the
project concept.
Adoption of a coordinated approach in R&D in public and private sectors. In this regard
PARC research establishments and NARS (National Agricultural Research System)
institutions would be involved to conduct multi-disciplinary applied research in
collaboration with PARC. Funds are also kept for WRRI-NARC and other PARC
research establishment for R&D purposes. The purpose of research is to support the
implementation of the Project instead of doing traditional research. The objective will be
to reduce system cost, idigenization of system components, scheduling of irrigation and
fertigation and water productivity.
A maximum subsidy of Rs. 3.0 million per farmer is fixed inclusive of system cost and
storage reservoir. The project support in any case will not exceed. However, farmers can
enter into a cooperative arrangement if they are interested to install large systems (i.e.
centre-pivot sprinkler irrigation), where cost is reduced tremendously if system is of over
100 acres. Thus the objective is to reduce the system cost per acre and provide to the
farmers systems which are reliable and long-life. Life of centre-pivot sprinkler irrigation
system is highest compared to any other system.
The payment for storage reservoir will be made based on the scheduled rates of civil
works as fixed by the PWD in all the provinces. Farmers will be responsible to construct
the storage reservoirs, whereas the design will be provided by the SSC.
iii) Schemes Eligible for Support
The schemes eligible for support comprise the full range of high efficiency irrigation systems
including water storage tank. Typically, the schemes will include all types of systems and
adaptations covering the broad areas of drip and sprinkler irrigation systems. Any other
adaptation which helps to reduce the cost will be used to make this project a success and ensure
fast adoption of technology in Pakistan. There is a limit to federal support in terms of maximum
subsidy of Rs. 3.0 million per farmer including both system and storage costs. This limit is in
line with the cost of original limit of 50 acres farm size, which restricts inclusion of large farms
in the scheme. However, farmers can enter into a cooperative arrangement to install large
systems like centre-pivot sprinkler irrigation with an objective to reduce the cost per acre. Such
systems are more reliable than any other systems but requires large amount of water. The
specific type and layout of the irrigation systems will be tailored to farm conditions (source of
water, predominant cropping pattern, size of the farm/field, topography, soil conditions, etc) and
farmers‟ preferences. On-farm storage reservoirs will be required when water is taken from a
canal with rotational water supply. The types of systems recommended for inclusion in the
project are:
Drip Irrigation Systems for Orchards and Widely Spaced Crops: Drip irrigation
systems with standard laterals are recommended for orchards and widely spaced crops
with fertigation facility. All sorts of emitters as per requirement will be used.
Drip Irrigation Systems for Crops: Drip irrigation systems with driplines or drip tapes
are recommended for row crops with fertigation facility. The cost of dripline and drip
tape will vary, as driplines are normally designed for around 10 years of life, whereas
drip tapes are designed for 2-3 crop seasons if rolled up at the time of crop harvesting
and land preparation. In any case recycled pipe will not be allowed. The spacing of in-
line emitters will be based on the requirement of crops.
Bubbler or Mini Sprinkler Irrigation Systems for Matured Orchards: Bubbler or
mini sprinkler irrigation systems should be selected only for matured orchards based on
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higher water discharge. The system is costlier than the drip irrigation systems. Effort will
be made to design the system for 16 – 20 hours of operation at peak requirement to keep
the system cost low. Furthermore, it is not feasible to convert mature orchards on drip
irrigation and bubblers are a sort of localized flood irrigation. Bubblers should be
installed in only special cases where water is available in large amounts and farmers are
ready to pay higher costs. Because these are large discharge systems and relatively
inefficient and termed as localized flood irrigation systems.
Sprinkler Irrigation Systems: Sprinkler irrigation systems will be specified for field
crops (grain crops, sugarcane, fodders and selected vegetables). On small fields either
solid-set or semi-solid set systems will be installed. Semi-solid set systems (hose-move
systems) have been used successfully by small-holders in many countries. They are
relatively cheap (about half the costs of standard drip irrigation system) and easy to
maintain and operate. Their disadvantage is relatively high labour requirements for the
movement of sprinklers.
Continuous Move Automated Sprinkler irrigation Systems: On large fields of over
100 acres Continuous Move Automated Sprinkler Irrigation Systems will be used. This is
a solid, time-tested technology and relatively cheap per unit of irrigated area for large
farms of over 100 acres. However, they require relatively formed fields, good and
reliable source of water (preferably a well because on-farm storage would be too
expensive) and a dependable source of energy. These systems should be operated by
trained technicians. The investment cost for medium and large systems easily exceeds
the maximum grant under this program. Therefore, farmers who are interested to install
large systems may be allowed to contribute larger share of cost from their own resources
or loans from the commercial Banks or ZTBL.
Family Drip Irrigation Systems: Family Drip Irrigation Systems are suitable for home
gardening and peri-urban agriculture. They may also serve as an entry level drip
irrigation system to allow women to experiment and get familiar with the technology.
Family drip irrigation systems are designed for areas of 500 to 1000 m2. They can best
be used in peri-urban agriculture where farmers may have limited land and access to
small sources of water (dug-well, piped water, ditch). These systems consist of only five
components (elevated tank, shut-off valve, filter, mainline, drip-line). Drip-lines are used
because of the low pressure requirements. These systems are cheap, easy to install and
to operate. The filling of the tank is done by manual pump, gravity or a small electric
pump. These systems are ideal for mountain environments like Murree Hills, Hazara and
Malakand Divisions where spring water or perennial streams are available and land
holdings are extremely limited. Women will be given priority for these systems.
Water Storage Reservoirs: On-farm storage will be required when the source of water
is a canal that runs on rotational schedule or for farms using low discharge wells or
springs. Reservoirs can be quite large depending on the size of the HEIS and the rotation
interval. On the average a storage capacity of about 400 m3 will be required per 1 ha in a
7 days rotation interval. Most reservoirs will be excavated to allow gravity flow from
the canal. The need for lining depends on soil conditions. In heavy textured clay soil
good compaction may be sufficient. Percolation losses of up to 5 cm per day may be
acceptable. If the percolation losses are higher, lining is required. There are different
lining methods. The least expensive lining is probably PE liner covered with about 30
cm earth or stone pitching with concrete grouting where stones are locally available.
More expensive are PP and geo-synthetic liners that can be used in exposed installations.
iv) Details of Civil Works, Equipment and Machinery
The original project hired Project Implementation and Assistance (PIA) Consultants for material
checking and design verification of the eligible schemes. But the performance of PIA
consultants was extremely poor and slow as they don‟t have the capacity for such checking and
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quality control. The revised project envisages establishment of the state-of-the-art testing and
quality control laboratory at NARC, Islamabad, which requires separate laboratory building and
a number of research equipment. The details of laboratory building are given at Annexure-1,
whereas the details of laboratory equipment are described at Annexure-2. Most of the project
vehicles, office equipment and furniture have already been purchased by the FPMU and PPIUs
during the last three years of project operation. The details are given at Annexure-3. All these
project assets are transferable to FPMU for rational redistribution among all the subordinate
offices. Some additional office equipments and furniture may be required for new office setups
and the details of which are given at Annexure-4. Vehicles will be purchased for essential uses
and within the provisions of the project PC-I.
v) Technical Experts
Project will have a strong technical support at the federal as well as provincial levels by
Technical Experts. Technical experts will be recruited to help the Project at different stages of
coordination and implementation of the programme. These experts will report to the NPD-
FPMU, and NPD-PDMTU. The functions of the Technical Experts would be as under:
Assist in implementation of scheme in provinces including guidance in technical matters;
Assist in establishing benchmark data for provinces;
Review training modules prepared by provincial training institutions and to improve the
training/course contents;
Advise on the use of standards (ISO, DIN, BSI, ANSI) and review; and improve the
specifications prepared by the project;
Review and conduct spot checks of the work of Project Teams;
Make suggestions on crop diversification;
Advice on documentation and dissemination of success stories;
Assist in holding national seminars and workshops;
Liaise with research institutions, review research Programmes and facilitate application
of research results in the field.
Critical evaluation of research proposals and recommendations for awarding funding
through the research funds allocated in the project.
vi) Technical Assistance
The original PC-1 relied upon Project Implementation Assistance (PIA) Consultants for a
number of activities including:
Drafting of tender document for supply companies including contract conditions,
specifications for design, material & installation of equipment, itemized list of typical
items.
Assist in Evaluation of the bids and award of contracts.
Assistance in finalization of rate for various items and services required for system
installation.
Assistance in mobilization and screening of farmers.
Checking design of the system and cost estimate prepared by the supply and services
companies.
Spot-checking for quality of material delivered to the site by supply companies,
conformity with specified standards and quantities.
Supervision during system installation and conformity with specifications.
Certification of requests for payments, verification of implemented works and issuance
of NOC to the PCIUs/Bank(s) for payments of systems cost to the supply companies.
Participation in the training of OFWM staff in areas of High Efficiency Irrigation System
as well as capacity building.
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Submission of quarterly physical and financial progress report to MINFAL/FWMC and
provincial set up.
Review and advice on standards, specifications and criteria for the equipment of High
Efficiency Irrigation System suiting local conditions.
Liaise with provincial PMUs and PCIUs for smooth execution of field activities.
Establishment and maintain a website containing information on the scope of the
programme, application, procedure, advantages of drip and sprinkler irrigation,
demonstration sites.
In the revised PC-I the Consultants will not be required as they do not have the desired capacity
for the High Efficiency Irrigation Systems. The low performance can be viewed that less than
200 acres were commissioned by the end of July 2009. Consultant has hired all the staff right
from the beginning even then their performance was extremely slow. Their capacity is also
limited and that was the major reason in slow commissioning of the sites. When PARC took
over the project in July 2009, out of 129 completed schemes only 9 were verified and
commissioned covering an area of 198 acres. Therefore, NPD-PDMTU will be established and
along with the RPMUs the role of Consultants will be fully taken over by PARC under the
Project. The technical services will be provided to the farmers through the PPIUs and the district
OFWM professional staff.
vii) Supply and Services Companies
a. Registration and pre-qualification of SSCs
Companies wishing to participate in the implementation of the project will be pre-qualified
according to the following criteria:
All the SSCs registered previously will be scrutinised on the basis of their performance
in the last three years. Furthermore, new firms will also be allowed to participate in the
registration. PARC through NPD will register the potential SSCs and their registration
will be renewed based on their performance. Only those firms which have got the
registration will be eligible to submit design/proposals and work at the provincial levels.
Only those companies will be pre-qualified and registered which can deliver the full
package of survey, design, delivery of material, installation and one year post installation
O&M services. Companies will be required to describe relevant previous work and give
details of their manpower capacity. If national companies do not possess the required
experience but work in partnership or joint venture with an international company the
experience and capacity of that company will be considered. The joint venture agreement
is to be submitted. The basic criteria recommended for the selection of the SSC includes:
Companies having capacity of the local manufacturing of pumps, pipes, sprinkler or
drip components;
Companies having joint ventures with reputable international or regional companies
but having experience of agricultural supplies and services;
International or regional companies of repute having authorized partners in Pakistan
Companies having sound financial standing to be supported by audited balance sheet
tax declaration, etc.
Companies will be required to indicate the source of material they intend to use in the
project. The material should be properly stamped indicating the source and/or standard as
per international specifications.
Companies would be required to establish demonstration plots in each province on the
areas to be selected in consultation with PARC.
b. Bidding procedure and contract conditions
In the last three years, the Project has established price structure for the systems. Contract
conditions will include:
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Selected SSCs will be required to deposit a performance bond with NPD.
Liberally-qualified companies will be invited to submit proposal for a list of typical
items required for HEISs. The bid price of each item would cover the cost of surveying,
design, transportation, installation, testing and other items such as training of clients
(farmers), one year warranty of O&M services, etc. The Company accepts that NPD,
based on the bids received, will establish an average price schedule that will be applied
to the project. Factors to compensate for the remoteness of certain sites will not be
applied. The schedule will be revised annually to account for inflation within the
approved system cost.
All material must comply with relevant international standards and should be marked
accordingly. A separate guideline has been established for this purpose, which will be
used. At request, SSCs must submit proof of compliance with standards and must deliver
specimen of materials for testing. Testing will be done by the PARC for the randomly
selected samples from the field.
SSCs are responsible for the quality and matching of material irrespective of the source.
The SSCs should establish service centres for each cluster of HEISs installed by them.
Government may assure volume of business in the first two years for each of the selected
SSCs of about 1000 ha per cluster area in order to reduce the risk for the SSCs. At the
start of project, the response of farmers and size of the business was not known. SSCs
might be inclined to include the risk into their unit rates thus increasing the cost of the
systems. The Government guarantee will reduce the risk and provide a basis for cost
calculations. The input to enhance will be dependent on quality intervention.
In the event of failure of any SSC to abide by these commitments, the penalties as
already established may be imposed. However, the same should be brought to the notice
of NPD, so that the other provinces and areas may be intimated accordingly, if required.
c. Responsibilities of the SSCs
The SSCs will be responsible for:
Motivation and mobilization of farmers through mass awareness and arranging the trips
of farmers to the nearby demonstration sites.
Survey of the farmer‟s land, soil, topography, assessment of water source and water
quality, source of power, farm operations, predominant cropping pattern and other
relevant data, perform soil and water analysis if needed.
Assess the availability of water and availability of energy for pumping. Design the water
supply system from source of water (canal, well or other) to High Efficiency Irrigation
Systems which should not be more than 100 meters from the system. Exceeding this
limit, farmers would be responsible to bear the expenditure for the extra supply to be
arranged. Determine the need for storage. Consider need for constructing a fractional
tubewell, storage, pump set, power source and High Efficiency Irrigation Systems. But
this will not qualify for the farmer to get the subsidy support as it will be provided only
for system‟s cost and storage.
Designing of the High Efficiency Irrigation Systems in accordance with accepted
standards keeping in mind the necessity to keep the costs lower while ensuring trouble-
free operation. The SSC will also be responsible to design water storage tank as per
requirement and preferences of farmer. For the construction of water tank, the payment
will be made directly to the farmer as per agreed scheduled rates as per Public Works
Department (PWD), as farmers will be responsible to construct the storage tank.
Procure the material and install the system as per approved designs. Beneficiary will be
responsible to arrange the water source including construction of fractional tubewell at
his/her own.
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SSC will provide the manufacturer specifications and pump characteristics with every
design and BOQs of the system. In fact, every item or component specification and
manufacturer must be identified. This information is essential in maintaining quality
control of installed systems.
Provide O&M services for a period of one year including regular visits.
Supply of spare parts, as and when required on payment by the concerned farmer after
the warrantee period of one year.
Warranties to undertake repair/replace any portion or the entire system components for a
period of one year, if they are found to be defective in material or workmanship. The
repairs/replacement to be done at the cost of the company or their representatives.
Operate the already developed demonstration site on the designated sites during the
demonstration phase. The new companies will also establish demonstration sites free of
cost to the project for demonstration of their materials and systems.
Training to the farmer on:
Operations of the System
Maintenance of the system e.g. filtration & flushing system, flow monitoring, etc.
Acid treatment
Agronomic practices for the crops grown
Handling of the system after harvest, precautionary measures during inter-culture,
slack period storage, etc.
Provision of an O&M Manual to the farmer in local language at the time of installation
along with warranty.
The SSC however, will not be responsible for any theft, fire, natural disaster, misuse,
animal damage, and failure of pumps not supplied by the SSC (in case farmers‟ pump is
used), modification in the installed system by the farmer without consultation,
mishandling or any other factors beyond the control of the supplier.
The SSCs will establish service centres to provide after sale service in areas of
operations where-ever a cluster is developed. A smaller area does not release the SSCs
from his obligation to provide after sale O&M services. These Service Centres will
provide technical guidance to farmers, supply of spare parts, maintenance as well as
ensuring satisfactorily performance of the system.
The SSC will be responsible to select standard equipment, materials and system
components and submit the specifications to the PDMTU at the start of the project and
the same will be maintained during the project duration. Materials which are not
approved by the PDMTU will not be allowed to use by the SSC for installation of the
system. The NPD-PDMTU will have the right to verify materials from the principals
(national or local). Non-branded materials will not be allowed.
The RPMUs will collect random samples of the delivered material for testing and quality
verification by the PDMTU. In case the materials are not of desired quality and
specification, the payment will not be made by the respective PPIUs/PIUs and SSC will
be black-listed and registration will be cancelled.
The previous system of Bank guarantee for the SSC is waived. However, every SSC will
be asked to submit a performance guarantee based on the size of the work being
performed. The FPMU will determine the size of the guarantee based on the operations
of the SSC being performed in the project. This guarantee will be kept for the purpose of
security for quality work & to take care of the problems encountered in system
installation/operation. The guarantee will be around 5% of the overall size of the
business the SSC is going to make with the Project. In case such guarantee is provided
by the SSC, then the deduction of 10% at the commissioning of the system equivalent to
the award cost will be waived.
The SSC will ensure supply of a simple toolkit and running parts free of cost to the
farmer so that minor repairs can be undertaken instantly. The SSC will respond to the
requests of farmers for repairs on urgent basis (within 1-3 days).
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d. After-sale services
After-sale O&M services will be provided by the SSCs to the farmers for one year duration.
During the initial period the SSC will visit the farm at regular intervals to check the installation
and advice the farmer in O&M.
viii) Material Testing & Quality Control
The crucial aspect of supply of drip and sprinkler irrigation systems is quality of the materials
delivered to the farmer. Poor quality directly affects performance of the system and therefore
reduces the yield of the crop, uniformity and quantity of water applied, quantity of fertilizers
delivered to the plant, etc. It may also shake the confidence of the farmer in the technology. In
fact, this factor will not only impact performance, but can also reduce the durability and the life
of the components and/or system. In the past some of the manufacturers have resorted to
manufacture and supply of sub-standard/non-ISO/recycled pipes and components of system.
This will not be tolerated as quality is an entry level prerequisite and can‟t be compromised.
The quality control both in terms of materials, hydraulics, water, and energy efficiency was the
major constraint in the original PC-I as there is no facility available in the country for the
complete test of the systems. The PIA Consultant had the primary responsibility to verify quality
and compliance of materials with specifications. Therefore, there is a need of an efficient quality
assurance mechanism at the country level. The revised strategy proposes establishment of the
state-of-the art facility at the WRRI-NARC for the testing of materials and quality control in
terms of hydraulic performance, water and energy use efficiency for the plastic materials,
sprinklers, prime-movers, pumps, etc. This will require a building structure for testing labs. The
PARC Works Directorate will be responsible for the design, implementation and supervision of
the works and construction work will be assigned to the construction firms as per rules and
regulations of PARC. This will strengthen the capacity of HEISs project. Appropriate staff and
technicians will be hired for operation of laboratories. The professional team of the RPMUs
assisted by a district OFWM inspection teams will conduct random checks and gather samples
of delivered material periodically from the field for quality verification by the professional staff
of Material Testing and Quality Control section of the PDMTU. In case of failures/poor quality
material, the penalties as already established will be imposed and registration of the SSC will be
cancelled.
In order to ensure supply of standard quality materials to the farmers the manufacturers who are
registered to participate as SSCs are barred from manufacture/sale/trading of sub-standard/non-
ISO/recycled plastic components like laterals, HDPE/ PVC pipes and fittings, emitters, filters,
etc. If any manufacturer or SSC violates this clause, it will be removed from the approved list
and debarred to supply any system under the Project. In case of any dispute, the decision of the
dispute resolution committee at the federal level would be final & binding. The provincial
committees can forward their recommendations to the federal committee.
ix) Farmers’ Eligibility Criteria
In the original project a complicated procedure was adopted for the selection of the farmer. This
procedure will not be followed in the revised project. Farmers will be motivated and mobilized
by the SSCs, PPIUs/PIUs and district OFWM staff. The following procedure will be followed
to select the farmers:
The farmer should be owner of the land and all required inputs in terms of land, water,
machinery and others are available as per criteria defined by the NPD.
Farmers who have already received subsidy from the HEISs project (up to the maximum
limit of Rs. 3.0 million) are not eligible. The list and information of beneficiary farmers
will be provided to all the SSCs.
Any eligible farmer can ask the registered and pre-qualified SSC to survey the farm to
seek support from the project. Size and type of system is the farmer‟s choice.
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SSC will survey and design the system and after verification and approval of the design
by the PDMTU the farmer will become eligible for the subsidy support. Without this
approval farmer is still a candidate for the support from the HEISs project.
On approval of the design and issue of work order by the PPIU/PIU, the farmer will
deposit his share of Rs. 5000 per acre upfront to the SSC in the shape of demand
draft/pay order.
x) Transparency in the Selection Procedure
Complete transparency will be observed in the selection and sanctioning of financial assistance
to the beneficiary. The following procedure will be applied:
The PPIUs/PIUs will make wide publicity of the Project along with list of registered
SSCs through the network of district governments, private sector SSCs, and local NGOs
as well as through electronic and print media. The PPIUs/PIUs in collaboration with
SSCs will organize field days on demonstration sites for interested farmers. Farmers will
be introduced to HEIS, its key components, functioning, benefits, and operational
requirements and will receive answers on any questions & queries. Information material
will be distributed during the field days. The federal and provincial governments shall
include the details of this scheme in their web site.
The application form will be developed and distributed to the interested farmers during
the field days at demonstration sites as well as be made available at the district level at
the offices of the Agriculture Departments, PPIUs/PIUs and the SSCs in various
provinces and other areas. The SSCs would be responsible to distribute applications to
the farmers in their areas. Application is just a formal request from the farmer to the SSC
to initiate survey and design of the farm. It can be done through an informal request from
the farmer to the SSC but filling of application by the farmer and collection by the SSC
is necessary to keep the details of the interested farmer.
xi) Training and Capacity Building
a. Training of professionals
Adequate trainings and capacity building of all the actors are the thrust areas in this scheme.
Although, the concept of drip and sprinkler irrigation is not new and the system is applied in
Pakistan since two decades, though in a small scale, till today most of the field level staff does
not possess adequate knowledge on these systems. The same applies to farmers. In fact the main
reason for the very slow and sluggish phase of development of this technology is the lack of
awareness and technological know-how among the farmers and field level workers. MINFA did
realize this and made training a core component of this Programme in the 1st PC-1, but these
trainings were hardly organized. Only one training course was organized by the FPMU with the
support of PARC.
In the revised Project document emphasis will be placed on training of the professional staff of
the project. Training courses will be organized for professionals involved in the implementation
of the programme at all levels. About two week duration training courses will be organized by
the PDMTU in collaboration with other stakeholders. The training will be conducted at NARC
or other establishments of PARC and provincial training institutions. The staff of the Training
and Capacity Building Section of PDMTU will ensure development of the curriculum and the
course materials with inputs of the Technical Experts. The appropriate resource persons would
be selected from the PARC system, project team, SSCs or from the open market. The training
for professionals would involve expenditure for course materials, institutional expenses for
organizing Programmes, hosting of participants, working lunch and tea, stationary items,
transport expenses for field visit, etc. The project outlays about Rs. 1,687,000/ for organizing a
one week local training programme for a batch of 40 officials. In addition to this Rs. 0.570
million is kept for preparation of training modules. The estimated number of professional
requiring trainings is about 600. Hence 15 training programs will be organized by the PDMTU
22
to fulfil the training needs of the Project. The break-up of the estimated cost of the training for
one batch of 40 professionals is given in Table 3.
Table 3 Estimated cost of one training program for a batch of 40 professionals
Cost
S. # Activity
(Million Rs.)
1 Training Hall / Venue for six days 100,000
2 Boarding/lodges @ Rs. 2500/day of 40 participants for 6 days 480,000
3 DA @ Rs. 650/day of 40 participants for 6 days 156,000
4 TA @ Rs. 15000/trainee for 40 participants 600,000
5 Resources Persons Charges @ Rs. 2500/2hr lecture (24 lectures) 60,000
6 Printing of Training Materials @ Rs. 500/trainee 20,000
7 Working lunches/teas @ Rs. 500/head for 70 people 210,000
8 Local Transport and Transportation of goods. 11,000
9 Others (lump sum) 50,000
Total 1,687,000
b. Training of farmers
Farmers‟ trainings will be organized at two levels. Firstly, the SSCs will provide the necessary
trainings to the farmers in system‟s O&M. In total around 20000 farmers will install the HEISs
at their fields and will directly get the basic trainings in O&M of the system from the SSCs. The
system‟s O&M trainings would cover the aspects of trouble shooting for day-to-day problems of
clogging, flushing, acid treatment, etc.
Secondly, farmers would also be trained on various specialized themes including crop water
requirements and irrigation scheduling with special reference to crops under cultivation,
scheduling of fertigation for optimum use of fertilizers, improved water productivity, etc.
Farmers‟ trainings will be organized largely by the PPIUs/PIUs with the support of the NPD-
FDMTU. In fact, the NPD-FDMTU will initially train all the full and part-time staff of the
OFWMs and PPIUS/PIUs. These trainees will work as master trainers and impart training to the
farmers. As the training will be arranged in the real-life situation, therefore these trainings will
be imparted at the Demonstration Sites of the enlightened farmers having improved water
productivity using drip and sprinkler irrigation. The duration of these specialized trainings will
be 2-3 days. The trainings will be organized in real-life situation using a participatory approach.
Following brief introductions on the subject, farmers will exchange experience and views among
themselves in structured discussions.
In provinces where drip irrigation technology is at its infancy, the required quality farms may
not be available in proximate locations. This will necessitate taking farmers to other
location/areas where the relevant technology for appropriate crops has been demonstrated.
Provision will be required in terms of boarding/lodging, including working lunch, field
transportation, charges of resource persons, TA/DA to farmers, basic course materials, etc. The
expenditure is estimated to Rs. 190,000 per programme for a set of 50 farmers in each district.
The cost break-up of each training program is presented in Table 4.
23
Table 4 Estimated cost of one training program for a batch of 50 farmers
Cost
S. # Activity
(Million Rs.)
1 Training Hall/Venue and sitting arrangement for 50 Farmers 0.025
2 TA/DA of farmer @ 1500/farmer 0.075
3 Transportation of Goods 0.010
Resources Persons Charges @ Rs.2500 per lecture (4
4 lectures/day) 0.010
5 Print of Training Materials @ Rs. 500/person 0.025
6 Lunch and Refreshments etc @ Rs. 500/person 0.035
7 Others 0.010
Total 0.190
A total of 6750 farmers in 135 districts will be trained all over the country (1800 in Punjab, 1200
in Sindh, 1150 in K-P, 1400 in Balochistan, 400 in FATA, 350 in G-B, 400 in AJK and 50 in
ICT at one training course in each district). The training programs will mainly be arranged at
one of the progressive farmer‟s fields which can be used as demonstration site during the
training program. The concerned PPIU/PIU will arrange these trainings in collaboration with the
SSCs and the NPD-PDMTU.
c. Training programme for suppliers
Recruitment and capacity development of its own staff is essentially the obligation of the SSCs.
However, as it is one of the objectives of the programme to facilitate private sector development
in HEISs project and to increase employment opportunities for graduates and technicians
training facilities will also be provided for this group. Staff of suppliers may participate in
training courses of professionals at request. If the need arises the experts would be responsible to
set-up short training course covering specific design and operation aspects. Local training may
also be provided on improved agronomic practices.
d. Mass awareness
Drip and sprinkler irrigation are modern irrigation techniques for which appropriate campaign
for creating mass awareness among farming community is to be launched both through
electronic and print media. The FPMU, PPIUs/PIUs and SSCs would undertake aggressive
mass awareness campaign to inform farmers about the benefits of the system and its future
prospects.
Demonstration sites are the most effective mean to create interest of potential clients. They will
also serve as training sites for field schools. Demonstration sites will be established on
designated fields or research stations by the registered SSCs within the range of prescribed
ceiling, however, GOP support would be limited to subsidy per acre while the balance cost of
the system will be shared equally by the SSC, farmers or institutions for the demonstrations
only. Demonstration sites will be equipped with all standard HEIs. These installations will also
be used for applied research. During first phase of the project implementation 3-4 demonstration
sites, but at least one in each cluster area, will be established in each province. A number of
demonstration sites are reported to be non-functional. These non-functional demonstrations sites
have to be made functional by the respective SSC, if farmers are enlightened otherwise few sites
will be selected having enlightened farmers.
24
e. Applied research
The research programme will be designed in a way to provide support to the project during the
implementation phase. The research programme will be implemented by the PARC research
establishments. WRRI-NARC who is the pioneer in the development of high efficiency
irrigation systems in the country will take the lead in collaboration with other establishments of
PARC. The proposals will be reviewed and screened by the Experts followed by the approval of
Chairman PARC. Priority will be given to those proposals that are likely to produce results
relevant to the project objectives and the research findings can be disseminated to the farming
community. Traditional research is not the objective under this project. An amount of about
Rs.30 million of the project funds will be set aside to finance research which will support the
objective of the project in terms of adaptations of system to reduce the cost through
indigenization of the technology.
xii) Monitoring and Evaluation
There is an imperative need that the project of this dimension needs critical, vigorous and
continuous monitoring throughout its implementation period. In the original PC-I, the
monitoring and evaluation was done by the federal and provincial Monitoring Units, which
could not be established in some of the provinces. In the revised project, the monitoring role has
been assigned to PARC which will ensure this by establishing eight regional project monitoring
units (RPMUs) in the provinces and other areas under the overall supervision and guidance of
PDMTU. The location and extent of each RPMU is selected on the basis of PARC‟s
establishments and accessibility to the remote areas. The RPMUs will monitor the project
activities and verify the system installations in their jurisdictions and report to the PDMTU. The
RPMUs will review/monitor the progress periodically and send monthly report to the federal
PDMTU. The report will enlighten:
Number of schemes designed by the SSCs
Number of work orders issued by the PPIUs and PIUs
Number of schemes installed by SSCs and handed-over to farmers
Financial transactions, amount spent and reserved by the PPIUs and PIUs
Performance report of the schemes, major difficulties
Farmer‟s opinion
Number of trainings conducted and Programmes for the ensuing month
Demonstration need and status
Status of after sales system O&M services provided by the SSCs
Status of awareness campaigns done in different villages by the SSCs and the
PPIUs/PIUs/
Inspection at random of systems installed, quality of equipment and working of the
system (scheme) in different areas and report to PDMTU.
The monitoring section of the PDMTU will monitor the overall progress through consolidation
of the RPMUs reports, evaluate against targets and suggest required adjustment of funds and
initiate supporting activities or adjustment of procedures, if required.
xiii) Project Risk and Risk Avoidance Strategies
The overall project concept, the strategy and implementation procedure, although carefully
elaborated in several rounds of meetings with subsequent refinement of the strategy, involves
considerable risks. Not all of these risks could be eliminated in the project design. Major risks
include:
Farmers have been practicing flood irrigation system in the country since centuries.
Switching from the conventional practice to High Efficiency Irrigation System, despite
25
its advantages, may be resented. Considerable effort will be required and attractive
conditions to convince farmers to convert to HEIS.
At initial stage, farmers may be reluctant to adopt HEISs because it appears difficult to
operate and maintain. HEIS demands a certain level of knowledge and expertise for its
operation. A certain level of literacy is required to understand manuals and the concept
of crop water requirements. Hence the target groups are enlightened and enterprising
farmers.
Initially adequate expertise in design, installation and operation of the system is not
easily available in the country. Therefore, a Design Team will be established as part of
the PDMTU and trainings will be provided by PARC.
Private sector also has limited experience. Joint venture of local firms with
international/regional firms with relevant experience will be preferred for
prequalification. The success of the system requires strong after-sales O&M services.
The SSCs will be required under the contract to provide the after-sale O&M services for
a period of one year. To cover this risk a cluster approach is proposed in order to
facilitate the setting-up of service centers. Technical and agronomic services for
improving water productivity and increasing farm profitability will be provided by the
PPIUs/PIUs through the concerned district OFWM staff.
High quality agricultural products are expected as a result of HEIS adoption. However,
under existing marketing conditions high value products may not fetch higher prices due
to market limitations. Therefore, Horticulture Development and Export Board will be
required to explore and promote exports and agricultural processing.
Banks and private sector lack necessary infrastructure in the country and may not deliver
services to farmers appropriately. This risk is to be covered through a staged approach
(cluster areas) and human resources development.
Non-availability of provincial share or indifference to the project may also affect the
project activities. Similar is the case with non-availability of share of funds from
Government of Pakistan and/or USAID.
Short supply of irrigation water due to less flow in canal may also affect crop production
severely. Supplement irrigation by tubewells, if available, would reduce the risk.
The HEISs are energy intensive. Any drastic increase in energy (electricity/diesel) price
may result in greater operational cost and farmers may be reluctant to operate the system
at full scale.
(xiv) Termination of the Project
At the termination, project assets, both movable and immovable, will be transferred to respective
institutions of PARC for future development projects to be implemented in this area. With
completion of the project life the task of releasing Bank Guaranties to SSCs after completion of
their warranty period, will be handled by the NPD for the first two years. In future under the
Revised project, no Bank Security is expected from the SSCs. However, 10% of the system cost
will be kept for a period of one year as a warrantee.
7. CAPITAL COST ESTIMATES
The total estimated cost of the project is Rs. 18,000.030 million. The USAID will contribute
USD 50.00 million (Rs. 4250.000 million at current prices) as a grant. The 1st tranche of USD
20.00 million will be received during 2010-11 followed by USD 10.00 for each of the next three
years. The share of various contributors in the original and revised project PC-1 is given in the
Table 5. In case of any variation in the foreign aid by the USAID, the project cost will be
accommodated by adjusting the Federal Government‟s share accordingly.
26
Table 5 Share of Various Contributors in the Original and Revised PC-1
Cost Sharing Original PC-1 Revised PC-1
GOP Share
Local (Federal PSDP) 12712.116 9819.071
Foreign Aid (USAID) -- 4250.000
Provincial Share 2634.256 2519.883
Farmers‟ Share 2644.071 1400.116
SSCs‟ Share 9.815 10.959
Total 18000.259 18000.030
The summary of the project cost and share of each project partner during the project operation
period is given in the Table 6. The details of the budget break up for the whole project and each
project component are given in the Annexure-5A to Annexure-5M.
i) Indicate Date of Estimation of Project Cost
The Project cost estimates for the original PC-1 were worked out on the prevailing rates of the
required items available in the open market by the end of January, 2007. In the revised PC-1, the
estimates have been adjusted using June 2010 market prices.
ii) Basis of Determining the Capital Cost
Capital cost of the project is based on the prevailing market rates of various items available in
the open market. The cost estimates of brick lined, earthen, Geo-membrane lined and Poly
Ethylene lined water storage tanks have also been prepared for guidance (if applicable) at
suitable places. Specifications and standards were developed and given in the original PC-1. It
may however be added that arranging water source including construction of water storages tank
was the responsibility of the farmers at their own costs in the previous PC-I. As the storage tank
is an essential element of the high efficiency irrigation system in canal command areas and areas
with wells and springs having extremely low discharge. Therefore, storage tanks will be
provided wherever necessary with GOP support of Rs. 10,000/ acre. For this purpose budgetary
allocation is made to cover around 70% of the Target Area.
27
Table 6 Summary of the Project Costs
S. No. Parameters Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 Total % Age
1 Administration & Supervision
1.1 Establishment 9.928 40.177 67.603 199.918 204.951 210.049 215.252 947.879 5.27
1.2 Operational 5.959 45.131 37.721 133.555 146.387 161.276 178.036 708.064 3.93
2 Transport & Office Equipment 42.149 102.513 7.171 18.574 - - - 170.407 0.95
3 System Installation - 143.208 759.240 2,500.305 4,069.800 4,537.200 2,954.310 14,964.063 83.13
4 Civil Works ** - - - 79.850 - - - 79.850 0.44
5 Laboratory Equipment - - - 35.000 40.000 - - 75.000 0.42
6 Rewards and Incentives - 1.313 - - - - - 1.313 0.01
7 Training / Capacity Building - 3.803 - 16.012 20.192 12.471 2.850 55.328 0.31
8 Publicity / Farmers' Mobilization - 6.534 - 11.750 5.975 3.188 - 27.447 0.15
Project Review and Impact Evaluation
9 - - - - 8.000 - 8.000 16.000 0.09
(Mid-Term and Final)
10 Research and Development - - - - - 15.000 15.000 30.000 0.17
11 Technical Experts/Consultants - - - 5.000 10.000 10.000 5.000 30.000 0.17
12 PIA Consultant 39.300 - 60.700 - - - 100.000 0.56
Base Cost 97.336 342.679 871.735 3,060.664 4,505.305 4,949.183 3,378.448 17,205.350 95.59
Physical & Price Contingencies - - - 153.033 225.265 247.459 168.922 794.680 4.41
Total Project Cost 97.336 342.679 871.735 3,213.697 4,730.570 5,196.642 3,547.370 18,000.030 100.00
GOP Share 97.336 313.093 568.039 874.763 2,837.170 3,197.762 1,930.908 9,819.071 54.55
Provincial Government's Share - 3.834 151.848 419.609 686.400 750.880 507.312 2,519.883 14.00
USAID Share - - - 1,700.000 850.000 850.000 850.000 4,250.000 23.61
Farmers' Share - 14.793 151.848 219.325 357.000 398.000 259.150 1,400.116 7.78
SSCs' Share - 10.959 - - - - - 10.959 0.06
* Civil works include building for material testing laboratories and office space.
28
In the original PC-I, the system cost was assumed as Rs. 45,000 per acre with subsidy of Rs.
36,000 per acre and rest was farmer‟s contribution. But in reality the system cost varied from Rs.
45,000 to 90,000 per acre depending on the system. The pro-rata cost inclusive of all overheads
in the original project was over Rs. 61,800 per acre which was around Rs. 170,000 per acre in
the first 2 years due to extremely slow outcome. The survey conducted by PARC revealed that
around 25% systems commissioned were non-functional. Therefore, instead of fixing the cost
farmer‟s share and subsidy are fixed to allow the farmers to work with the SSC to have cost
within the allocated limits.
The MINFA and the Planning Commission, while evaluating the system cost proposed in the
revised project of Rs. 40,000 to 60,000 per acre (with an average of Rs. 50,000 per acre) should
not be compared with the cost of Rs. 45,000 per acre in the original project rather it should be
compared with the actual performance in the field where pro-rata cost of the original project was
doubled. This is the reality which should be kept in mind while comparing the two documents.
This was the reason that project was transferred to PARC under the directive of Prime Minister‟s
of Pakistan. In the revised PC-I, the subsidy cost is increased due to reduced share of farmer
from Rs. 9000 per acre to Rs. 5,000 per acre and the increase in subsidy from Rs. 36,000 per
acre to an average of Rs. 45,000 per acre. In reality, in the original PC-I before transferring to
PARC, the burden of increased cost was shifted to farmer, where it ranges from Rs. 18,000 to
63,000 per acre depending on the type of the system and that‟s why farmers declined to install
these systems and targets hardly achieved were 5500 acres (commissioned system) against
actual targets of over 80,000 acres. This was a consequence of keeping the farmers share open
and SSCs were having the flexibility to increase the cost. In fact, the mentioned cost limit of Rs.
45,000 per acre was never enforced.
The revised project will be executed through the newly recruited professionals at the federal level,
who will be offered salary package announced by the Ministry of Finance (Regulation Wing) vide
O.M. No. F. 4(9)R-3/2008-592/09, dated 18th August, 2009; and through the existing manpower of
OFWM at district level, they will be granted additional charge allowance in the light of para-2(c) of
Finance Division (Regulation Wing)‟s O.M. No. F. 16(1)R-14/2003, dated 12th August, 2008.
Similarly, any officer/official of PARC or any other department, if posted on transfer (deputation),
in the HEIS Project, he/she will get pay in his/her own pay scales and allowances plus deputation
allowance @ 20% of the basic pay subject to maximum of Rs. 6,000 per month or as revised from
time to time alongwith Project Allowance at the prescribed rates announced by the Finance
Division‟s O.M. dated 12th August, 2008 referred to above. Moroever, if the Federal Government
announces any other allowance/incentives in future for the project employees, the same will be
made applicable and met out of the existing budget of the Project.
iii) Year-Wise/Component-Wise Estimation of Physical Activities and Financial
Requirements
The year-wise and component-wise estimation of physical activities and financial requirements
is given in Table 7. The choice of system and SSC is left with the farmer. In the previous PC-I,
the targets were fixed for sprinkler and drip irrigation separately which is hypothetical as experts
can‟t decide about the needs of the farmers. Therefore, target is kept open and farmers‟
preferences and site specific conditions will determine choice of the system. However,
provincial targets in terms of area to be covered have been fixed.
29
Table 7 Year-Wise/Component-Wise Estimation of Physical Activities and Financial Requirements
Pakistan
Installation of HEIS (Acres) Financial Requirements (Million Rupees)
S# Region
Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 Total Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 Total
1 Punjab - 1096 6670 14954 24000 26000 19280 92000 - 58.27 300.15 852.38 1,368.00 1,482.00 1,098.96 5159.754
2 Sindh - 614 2593 8293 16000 15500 11500 54500 - 40.52 116.69 472.70 912.00 883.50 655.50 3080.910
3 K-P - 517 7609 6874 11000 12000 6000 44000 - 34.12 342.41 391.82 627.00 684.00 342.00 2421.345
4 Balochistan - 46 - 7954 12000 14000 10000 44000 - 3.04 - 453.38 684.00 798.00 570.00 2508.414
5 AJK - 28 - 2272 3000 4700 2000 12000 - 1.85 - 129.50 171.00 267.90 114.00 684.252
6 G-B - 75 - 2225 3000 4700 2000 12000 - 4.95 - 126.83 171.00 267.90 114.00 684.675
7 FATA - 7 - 1193 2000 2400 1050 6650 - 0.46 - 68.00 114.00 136.80 59.85 379.113
8 ICT - 0 - 100 400 300 - 800 - - - 5.70 22.80 17.10 - 45.600
Pakistan - 2383 16872 43865 71400 79600 51830 265950 - 143.208 759.240 2500.305 4069.800 4537.200 2954.310 14964.063
GOP Share for Physical Targets of HEIS Systems and Water Tanks - 113.622 455.544 161.371 2176.400 2538.320 1337.848 6783.105
Provinces‟ Share for Physical Targets of HEIS Systems and Water Tanks - 3.834 151.848 419.609 686.400 750.880 507.312 2519.883
USAID Share for Physical Targets of HEIS Systems and Water Tanks - - - 1700.000 850.000 850.000 850.000 4250.000
Farmers‟ Share for Physical Targets of HEIS Systems and Water Tanks - 14.793 151.848 219.325 357.000 398.000 259.150 1400.116
SSCs' Share for Demonstrations of HEIS Systems - 10.959 - - - - - 10.959
Total - 143.208 759.240 2500.305 4069.800 4537.200 2954.310 14964.063
30
iv) Project Approved History along with PSDP Allocations, Releases and Expenditures
On the direction of President of Pakistan as well as Prime Minister of Pakistan, the Federal
Water Management Cell (FWMC) formulated the project named “Promotion of Water
Conservation Technologies through High Efficiency Irrigation Systems in Balochistan” for
inclusion in the PSDP of 2004-05. The Governor of Balochistan also urged MINFAL to make
investment in the promotion of drip irrigation systems in Balochistan. Finally, the project was
approved by ECNEC during 2007 at the total cost of Rs. 18000.259 million
The project was executed under the supervision of Federal Water Management Cell (FWMC) up
to July 2009. However, the progress to achieve the specified objectives was extremely poor and
slow. Consequently, the President‟s Secretariat issued the directive of President of Pakistan on
June 8th 2009 for the transfer of High Efficiency Irrigation Systems Project to PARC, which
was endorsed by the Prime Minister‟s Secretariat on June 26th 2009. The basic reason for the
transfer of the project was that in the PC-I, the system cost was estimated as Rs. 45,000 per acre,
whereas the pro-rata cost of the system inclusive of all cost comes to around Rs. 61,800. The
actual system cost during the first two years paid out of the project comes to Rs. 45,000 to
90,000 per acre. The pro-rata cost inclusive of all cost was Rs. 170,000 per acre, which is 274%
of the cost of the PC-I. The most discouraging aspect was that the consultant cost by the end of
December 2009 comes to Rs. 27,000 per acre against the pro-rata cost of around Rs. 1340 per
acre.
The Project was transferred to PARC by MINFA on July 29th 2009. PARC initiated project
review process and all the provinces were requested to provide their inputs for project revision
and modification. A consultative meeting with all the stakeholders including FWMC, Provincial
OFWM, PIA Consultants and some of the SSCs was organised at PARC in August 2009 to
critically review the project performance. PARC also conducted a quick survey of the installed
systems for their performance evaluation and to get feed back from the farming community.
Based on the recommendations, PARC formulated revised PC-1 and submitted MINFA on
September 25, 2009. MINFA raised some quarries and observations, which were addressed by
PARC and revised PC-1 was resubmitted for onward transmission to the Planning Commission
on September 30, 2009. MINFA forwarded the revised project PC-1 on December 12, 2009.
Planning Commission invited comments of provinces on the revised project PC-1, which offered
few observations. Federal Minister for Food and Agriculture called on meeting at MINFA on
February 22, 2010 to develop consensus on the project operation. PARC also convened a
meeting with the provinces on March 01, 2010 where it was decided that the project will be
implemented in collaboration with provinces but project monitoring activities will be looked
after by PARC. Federal Minister for Food and Agriculture again called a meeting on March 16,
2010 where it was decided to cancel the contract of the PIA consultants and PARC was
entrusted to carry out the job/role of PIA consultants through the PDMTU to be established at
PARC with RPMUs in the selected regions. The final meeting was held in MINFA on July 2nd
under the Chairmanship of the Federal Minister Food and Agriculture and attended by the
provincial Agriculture Ministers and the OFWM Staff. The project was in-principle cleared by
the Federal Minister and few observations were raised regarding the need for strengthening
FATA and GB. The recommendations and decisions of all these consultative meetings are
incorporated into this revised version of the project PC-1, which is resubmitted for formal
approval. The details of PSDP allocations during the 1st three years of project operation are
given in Table 8.
31
Table 8 The PSDP allocations, actual releases and expenditure up to May 31, 2010.
Year PSDP Allocation Releases Actual Expenditure
2007-08 1250 905.107 106.781
2008-09 1000 278.013 400.874
2009-10 800 159.00 115.110
Total 3,050 1,342.12 622.764
v) Item-wise, Year-wise Actual Expenditure and Physical Progress
The details of item-wise distribution of actual expenditure are given in Table 9, whereas details
of physical progress are given in Table 10. Actual expenditures up to May 31, 2010 are Rs.
622.764 million. Total 255 irrigation systems (drip/sprinkler) covering an area of 6852 acres has
been verified up to May 31, 2010.
Table 9 Item wise Actual Expenditure Up to May 31, 2010
Head Punjab Sindh KPK Bal. AJK FATA G-B FPMU Total
Establishment 13.211 18.623 31.765 15.485 4.052 - 7.125 20.447 110.708
O & M Cost 21.232 18.907 10.768 14.676 1.003 - 3.375 14.810 84.771
Transport & Equipment 7.098 29.481 25.298 58.583 3.115 1.104 9.524 17.630 151.833
System Installation 155.553 34.088 29.410 1.925 0.490 - 0.900 - 222.366
Reward - - 1.217 - - - 0.096 - 1.313
Training 3.112 0.581 0.060 1.379 - - 0.050 0.037 5.219
Publicity 1.500 2.716 - - - - 0.177 0.725 5.118
PIA
- - - - - - - 39.300 39.300
Consultant/HEISCON
TOTAL 201.706 104.396 98.518 92.048 8.660 1.104 21.247 92.949 620.628
32
Table 10 HEIS Project Physical Progress Up to May 31, 2010
Sites Selected Sited Approved System Installation Commissioning Verification
by SSC by Consultant In Progress Completed Referred Verified
Province
Farms Area Farms Area Farms Area Farms Area Farms Area Farms Area
(No) (Acres) (No) (Acres) (No) (Acres) (No) (Acres) (No) (Acres) (No) (Acres)
Punjab 400 9,867 368 8,891 61 1,707 210 4,963 181 4,311 165 3,975
Sindh 327 8,441 91 3,549 28 1,958 39 694 39 694 35 634
K-P 144 9,067 130 7,609 61 5,270 69 2,339 55 2,243 50 2168
Balochistan 470 10,598 12 213 - - 2 46 2 46 2 46
AJK 14 93 7 62 - - 4 42 2 12 2 12
G-B 12 240 6 75 - - 6 75 2 42 1 17
FATA 30 81 1 7 - - 1 7 1 7 - -
Total 1,397 38,387 615 20,406 150 8,935 331 8,165 282 7,355 255 6,852
33
vi) Justification for Revision of PC-1 and Variation in Scope of Project if Applicable
The project was approved by ECNEC in September 2007 but the progress to achieve the
specified objectives was extremely poor and slow. Consequently, the President‟s Secretariat
issued the directive of President of Pakistan on June 8th 2009 for the transfer of High Efficiency
Irrigation Systems Project to PARC, which was endorsed by the Prime Minister‟s Secretariat on
June 26th 2009. The Project was transferred to PARC by MINFA on July 29th 2009. PARC
initiated project review process and all the provinces were requested to provide their inputs for
project revision and modification. A consultative meeting with all the stakeholders including
FWMC, Provincial OFWM, PIA Consultants and some of the SSCs was organised at PARC in
August 2009 to critically review the project performance, weaknesses and future strategy. PARC
also conducted a quick survey of the installed systems for their performance evaluation and to
get feed back from the farming community. The observations detailed below were made and
recommended to be incorporated in the revised PC-1.
a. Weaknesses in the original PC-1
The project was transferred to PARC because of the slow performance of the project. PARC
identified the weaknesses related to the slow performance of the project and the details are:
Farm not taken entirely: a) Sprinkler and drip irrigation systems designed for a portion of
the farm; b) rest of the farm is on flood irrigation; and c) Hybrid irrigation systems – in-
efficiencies of both.
OFWM and PIA Consultants influenced selection of SSCs instead of farmers as request
for survey was issued to all the functional companies thus, resulting in increased burden
of survey and design of the system raising the cost;
Cartelization is a major weakness, as number of companies was asked to submit survey
and design of the system for the farmers, as all the companies did not submit the design
and thus selection was made by Consultants from the designs provided by the SSCs. The
cost of system has gone up to Rs. 90,000 per acre or more for the drip irrigation systems
designed for crops;
Lack of awareness among farmers is also one of the reasons for slow performance of the
project and their role was limited;
PIA Consultants lack capacity to verify design of sprinkler and drip irrigation systems –
only 9 systems out of 129 are verified by Consultants, when the project was transferred
to PARC on July 29th 2009. With the efforts made by PARC by the end of February 2010
179 systems covering 4229 acres have been verified and commissioned;
50 % Registered Companies are non-functional creating an illusion of competition;
Out of 10 functional SSCs only 2-3 SSCs have design capacity;
Cumbersome process might have prevented the top level International SSCs with
complete technology from registration;
One of the Chinese SSCs is already installing drip irrigation systems in cotton: a) design
and installation is a hands-on experience and has been done successfully on 8 sites in
Sindh and Punjab; and b) Chinese experience indicates that the function can be done in
the field and a complete integrated package can be provided to the farmers, if system is
properly designed. In this case there was standard design of 25 acres for cotton alone
using drip tape and it was adjusted to select farms having 25 acres of plot size. This is
not a standard practice as every farm is of different size. The approach of standardizing
the system resulted in failures in the past. Furthermore, experience of drip irrigation on
crops would help if best practices are followed;
Except two SSCs, rest have in-adequate capacity to deliver an integrated system to
farmers; and
34
Storage of water needed for canal command areas especially for small-holders or for low
discharge wells, which is not included in the original PC-I.
b. Revised strategy
Based on the weaknesses and experiences gained in the last two years of project implementation,
PARC has come up with a revised strategy within the approved project cost. The revised
strategy is presented in Table 11.
Table 11 Comparison of current and proposed strategy for the Project Implementation
Parameter Current Strategy Revised Strategy
Coverage of the Only the area to be If possible, whole farm be designed for at
farm irrigated using sprinkler or least pipe-flow irrigation system
drip or both irrigation (mainline) and then actual area be covered
systems under the project. with sprinkler and drip irrigation so that in
future any further expansion should not
affect the mainline and sub-mains.
Otherwise the investment will be wasted.
Type of irrigation Sprinkler and/or drip Irrigation system at the farm level will be
systems to be irrigation system established for: a) Bed-furrow Irrigation;
installed b) Drip irrigation; c) Sprinkler irrigation.
System cost Initially the system cost System cost can‟t be fixed considering
was fixed and later on over 30 variables involved in farming –
subsidy was fixed. type of system, crop, age of plant, row to
row and plant to plant spacing, etc.
Therefore, system cost is kept for the three
types of systems ranging from Rs. 40,000
to 60,000 per acre, with an average cost
of Rs. 50,000 per acre for the purpose of
cost estimation.
Farmer’s Farmers‟ investment Farmers‟ income is not sufficient for
contribution capacity was not accepting the technology, as this was the
considered especially for major limitation for the implementation of
the small holders as the project. Therefore, farmer‟s share is
farmers‟ share was floating fixed at Rs. 5,000 per acre to create
and open ended. This healthy competition among SSCs. This
resulted in the increase of will motivate the SSCs to work with the
system cost even more than farmers and try to keep the system cost
Rs. 90,000 per acre and between Rs. 40,000 to 60,000 based on the
farmers were forced to pay type of the system. This will also motivate
the balance (Rs. 9000 to the farmers to come forward for the
Rs. 54,000 per acre). One installation of the HEISs. Apart from the
of the reasons for slow fix share of farmers, earthwork for
performance is that farmers installations of HEIS will be the
refused to install systems at responsibility of the farmer. This would
this cost. include digging of the channels for pipe
laying and then covering the pipe with
35
earth. Farmers will also be responsible for
arranging water source at the head unit of
the system or close by.
Post installation No separate cost was Provision of knowledge, information and
technical services allocated for services to the adequate training to the farmers is the key
to the farmers farmers including system for success of the system installed at the
O&M, irrigation and farmers‟ fields as the ultimate aim is to
fertigation scheduling, enhance productivity and quality of the
water use and productivity, produce. The services have been separated
adoption of high value from the role of the SSCs because of lack
crops, training pruning of of capacity of the SSCs in imparting
orchards, production training and technical services. The SSCs
technologies and training will provide O&M of the installed systems
of the farmers. This was for one year warranty period along with
the reason that majority of O&M training to farmers. The technical
the systems surveyed by services such as production technology
PARC indicated that SSCs and adoption of high value crops,
are not providing any productivity enhancement and related
O&M services rather they agronomic practices will be provided by
ask for visit charges. the RPIUs/PIUs and district OFWM staff
in each district.
System cost, Current level of subsidy is System cost with new strategy will range
sharing of cost Rs. 36000/ acre from Rs. 40,000 to Rs. 60,000 per acre
and system irrespective of crops and based on type of system, crop
subsidy cropping system. Based on combinations and site-specific conditions.
the experience, the actual Out of this Rs. 8000 to 12000 per acre (at
cost however varied from 20% of system cost) will be contributed by
Rs. 45,000 to over 90,000 the provincial governments, farmers‟ share
per acre. is fixed at Rs. 5000 per acre and rest (Rs.
27000 to 43000 per acre) will be provided
by the federal government. The subsidy
for survey, design & system installation
will vary from Rs. 35,000 to 55,000 per
acre based on type of the system with an
average of Rs. 45,000 per acre for the
purpose of cost estimation.
Cost of water Water storage cost was The design of water storage will be
storage tank included for the provided by the SSC based on system‟s
demonstration phase alone requirement and farmers‟ preferences;
and subsidy of Rs. 10,000 whereas construction will be organized by
per acre was provided. The the farmers themselves and low-cost lining
construction was the materials will be used to minimize the
responsibility of the SSC. cost. The project will provide maximum
subsidy of Rs. 10,000 per acre to the
farmers, wherever tank is essential.
Province will also contribute 20% cost
of storage tank.
Maximum limit Limit of 50 acres was Instead of limit of 50 acres, limit of
on subsidy per imposed which restricts the subsidy of Rs. 3.0 million (inclusive all
farmers basis involvement of farmers costs – system and water storage tank)
36
beyond 50 acres and is imposed which is almost equivalent to
resulted in manipulation in the previous limit of size but it encourages
ownerships. the large farmers to invest more for the
installation of larger systems and thus
result in better adoption of the technology.
Selection of SSC Selection of SSC was the Farmers will select SSC out of the notified
discretion of the Consultant registered SSCs. The selected SSC will
based on the approval of conduct the survey to reduce the survey
design as all the companies cost and avoid unnecessary delays and
were asked to prepare the burden on the project. In case of poor
design. performance of the SSC, retention money
of the SSC will be forfeited and
registration will be cancelled.
Maximum level of Subsidy of Rs. 36,000 was Proposed levels of maximum subsidy for
subsidy per acre fixed irrespective of crop survey, design and system installation are:
for different types type (orchards, vegetables, a) Drip irrigation for Orchards at
of systems crops). The system cost standard spacing – Rs. 35,000 per acre;
including Survey and farmers‟ share were b) Drip irrigation for high density
and Design Cost open and the project has no orchards, bubblers for matured
control over the SSCs for orchards and Raingun Sprinkler
the system cost. Irrigation for crops – Rs. 45,000 per
acre; and c) Drip (drip line or drip tape
for crops only) and automated sprinkler
irrigation systems including continuous
move systems (centre-pivot and linear
move) for crops – Rs. 55,000 per acre
(based on prices for 2009-10 subject to
inflation). The increase in subsidy on
system cost from that of original PC-I is
Rs. 9,000 per acre assuming average
subsidy of Rs. 45,000 per acre.
Registration and A rigid criteria was A liberal criterion is developed for pre-
Pre-qualification developed for the pre- qualification of the SSC. Renewal of
of SSCs qualification registration of SSCs would be based on
their past performance and capacity in
survey, design, installation and post-
installation O&M services and supplies.
Conditions No conditions were SSC will be responsible for: a) Field
imposed for SSCs imposed on SSC for survey and system design – 7 days; b)
completion of works on System installation – 7-14 days; and c)
time. Post-installation training, O&M services
for 1 year and provision of spare-parts due
to manufacturing faults.
PIA consultants PIA Consultants were hired Minister for Food and Agriculture in the
for selection of the SSC, meeting on 16th March decided that the
verification of the system contract of the PIA Consultants be
design, supervision and terminated and PARC must take over the
monitoring of installation, role of design, monitoring and
quality control and coordination as capacity of PARC is much
37
authorization of payments better than Consultants and PARC can
for the commissioned perform this purpose effectively.
systems.
Payment schedule Mobilization Advance – Mobilization – No payment at the time
for SSCs 20% at the time of of award of works
award of works Delivery of materials at the site – 50%
Delivery of materials at Commissioning of the system – 40%
the site – 40% Warrantee – 10% for a period of one
Commissioning of the year
system – 28%
Warrantee – 12% for a
period of two years
c. Proposed actions
Provincial targets have been fixed on the basis of water shortage and aridity;
Water scarce areas will be taken up first;
Engineering and scientific staff of PDMTU will replace the PIA Consultants and
provincial monitoring units
Mobilization and awareness of farmers by PPIUs/PIUs, SSCs and FPMU;
Training of farmers by the SSCs and PPIUs/PIUs;
Training of professionals by the PDMTU;
State-of-the-art quality testing facility and staff at WRRI-NARC for system components
and materials;
Monitoring facility at regional level under the PDMTU;
Design verification and approval by the PDMTU
No additional cost – readjustments within approved cost;
Incentivize private sector for local manufacturing of sprinkler and drip irrigation systems
components; a) rebate on import duty and taxes for the import of PE polymers (not
locally manufactured) for agriculture – it contradicts with the policy of zero-tax on the
import of drip systems – supporting foreign industry; b) Five Years Tax exemption for
local industry supporting agriculture; and c) incentives to foreign investors for
technology introduction and indigenization. The FPMU and PDMTU will work on these
issues with the concerned Ministries to seek approval.
vii) Item-wise comparison of revised cost with the originally approved cost and reasons
for variation
The details of item-wise comparison of originally approved and revised costs and reasons for
variation are given in Table 12.
viii) Exchange rate used to work out FEC in the original and revised PC-1s
The original PC-1 did not include foreign exchange component. In the revised project, the
USAID has committed to provide USD 50.00 million to this project as a grant. The 1st tranche
of USD 20.00 million will be received during 2010-11 followed by USD 10.00 for each of the
next three years. The exchange rate used to work out the Foreign Exchange Component in the
revised PC-1 is as 1 USD = 85 Rs.
38
Table 12 Item-Wise Comparison of Originally Approved and Revised Costs and Major Reasons for Variation
(Million Rs.)
S. Original Revised
Selected Cost Items Reasons for Variation
No. Cost Cost
The PPIUs/PIUs have been restructured with core staff of about 10 persons. Existing staff of
Administration & Agriculture Department available at district level will be utilized to implement project activities
1 1902.076 1655.943 throughout the country in 135 districts. The full time manpower deputed will be paid incentive
Supervision
allowance for their services. However, due to limited staff available with ICT, GB and FATA some
additional support staff is provided mainly in the field of water management.
About Rs. 151.833 million have already been spent on purchase of the transport and office
Transport & Office equipment by the FPMU and Provinces. In view of revamping/re-structuring of the HEIS project,
2 194.130 170.407 all the assets are required to be received back for their rational distribution and utilization under the
Equipment
new setup. The new project units proposed in this revised PC-1 however will require some office
equipment and vehicles which will be purchased.
System cost is increased due to inflation. System cost and subsidies have been revised accordingly
System Installation and & benefits passed on to the farmers. In addition, water storage tanks are also provided, which were
3 13256.774 14964.063 not included in the original PC-I but during demonstration phase it was observed that these are
Storage Tank
essential in canal commands and in areas having very low discharge of wells. The increased cost is
largely due to water storage tank and increase in subsidy of Rs. 9,000 per acre.
In the original PC-1, Rs. 96.85 million were kept for strengthening of FWMC and construction of
office buildings. In the revised PC-1, Rs. 79.85 million have been kept for construction of essential
4 Civil Works 96.850 79.850 offices and buildings for the national testing and quality control laboratories. The cost of office
building is eliminated and the savings made will be used for the construction of the National
Quality Control and Testing Laboratories covering both the water and energy aspects. Even then
budget is reduced and savings are diverted to other heads.
Laboratory Equipment for
5 2.000 75.000 Funds are demanded for the establishment of National Quality Control and Testing Laboratories
Testing and Quality Control through procurement of standard equipment.
Rs. 1.313 are already been spent in first two years. Financial motivation never works, hence no
6 Reward / Incentive 262.124 1.313 funds are further required. However, incentive allowance is provided for the OFWM and PARC
staff deputed full-time for the HEISs project and in line with the GoP rules as part of the salary
39
package.
Training of professionals and farmers is critical to the success of project. The cost is revised in
7 Training & Capacity Building 85.985 55.328
view of the future requirements. Savings made will be used for other purposes.
Publicity, Advertisements
8 132.295 27.447 Rs. 6.534 are already spent. The responsibility of publicity and advertisement is shared with SSCs.
and Farmers' Mobilization Therefore cost has been reduced.
During 5th year of project operation and at the closure of the project, 3rd party evaluation will be
Project Impact Evaluation 32.000 16.000 arranged by PARC in terms of project effects and impacts. Therefore, provision has been made for
9
Study such an evaluation. Planning Division may also monitor and evaluate the project as per its
procedure.
WRRI, NARC is the pioneer in research aspects of the high efficiency irrigation systems in
Pakistan and has sufficient infrastructure and expertise. Therefore, budget requirements are reduced
10 Research and Development 200.000 30.000 as only critical areas related to indigenization and local manufacturing and evaluation for
standardization will be done to support the project objectives. In the original PC-I, the R&D
component was out-sourced.
Technical Technical experts will be recruited to help the Project at different stages of coordination and
11 12.660 30.000 implementation of the program. Increase in budget is due to the reason that PIA Consultants‟
Experts/Consultants
contract will be terminated and Consultants will be hired on need basis in critical areas.
12 PIA Consultant 479.628 100.000 Rs. 39.3 already spent. Provision is made to cover the remaining costs already incurred and
verified.
13 Bank Services Charges 212.311 - Bank services charges are excluded in the revised PC-1. The money saved is utilized for high
priority areas to make the project success.
Total Project Cost 18000.259 18000.030 No change in the total project cost. Only administrative arrangements and implementation
strategies are changed.
40
8. ANNUAL OPERATING & MAINTENANCE COST AFTER PROJECT
COMPLETION
It is expected that after closure of the project and termination of government support conversion
from flood to HEISs will continue on its own momentum. The SSCs would have established a
sales and service network and have experienced staff. They will continue pushing the technology
aggressively and providing after sales services at low rates. The existing regular staff of district
OFWM would take over the remaining activities (communication strategy for farmers regarding
the project, farmers‟ awareness campaigns, field days at the demonstration sites established by
the SSCs, farmers‟ trainings in collaboration with SSCs, development of training curriculum and
materials in collaboration with PDMTU and SSCs, and support to the PDMTU monitoring of the
systems). Farmers will be responsible for O&M of the system and replacement of system
components after the completion of the warrantee period. Hence, there would be no recurring
expenditure for schemes completed under the project.
9. DEMAND AND SUPPLY ANALYSIS
Details Remarks
Description of products/services Not applicable
Demand/Supply along with Unit Price for last five year Not applicable
Import/Export for last five years along with Unit Price Not applicable
Projected demand/supply for 10 years Not applicable
Proposed year-wise production and unit price of the product Not applicable
Existing and proposed assignments for marketing Not applicable
10. FINANCIAL PLAN AND SOURCES OF FINANCING
PARC through NPD-FPMU of the project would make the decision in respect of allocation of
funds to participating agencies for implementation of the project. The funds allocated in PSDP
would be transferred to the specifically opened Project Assignment Accounts of the respective
PPIUs/PIUs and PDMTU. The provincial governments will deposit their share of the system
cost as per PC-1 to the Project Assignment Account and provide proof of the same to the NPD-
FPMU.
Allocated funds would be transferred to the designated accounts as per government instructions.
The GOP budget along with the Other Areas‟ share would be channelled through the designated
Bank(s) for payment to SSCs as per approved procedure. The project financial flow mechanism
is described in the Annexure–6. PPIUs/PIUs and Bank(s) would be responsible to follow
prescribed procedure for incurring expenditure(s) ensuring meeting all audit requirements as
agreed upon and would furnish monthly-reconciled statement of expenditure and audit
account/report regularly to Federal NPD-FPMU.
a) Equity
The anticipated share of funding provided by each sources is given hereunder;
Sponsors Own Resources Nil
Federal Government Rs. 9819.071 Million
Provincial Government Rs. 2519.883 Million
DFI's/banks Nil
Farmers‟/Beneficiaries Rs. 1400.116 Million
Foreign Equity Nil
Supply and Service Companies Rs. 10..959 Million
Others Nil
41
b) Debt Not applicable
c) Grants along with sources
The major source of the project finance is the Government of Pakistan through PSDP. The USAID
will provide up to USD 50.00 million to this project as grant. The 1st tranche of USD 20.00
million will be received during 2010-11 followed by USD 10.00 during each of the next three
years. In case of any change in USAID‟s financial support, the share of Federal Government will
be increased or decreased accordingly. The USAID wants PARC to utilize their contribution
only for system installation, technical support, training, awareness campaigns, and effective
project monitoring. Also, USAID indicated its interest to invest their contribution more
specifically in the areas of G-B, FATA, K-P, Balochistan and ICT especially for poor and
women farmers.
d) Weighted cost of capital Not Applicable
11. PROJECT BENEFITS AND ANALYSIS
i) Financial Benefits
There is no direct income to the project; however, with completion of each scheme an additional
income of Rs. 20,000 per acre per year is expected to be accrued to the farmers, which is a
contribution towards economic development.
ii) Economic Benefits
Economic analysis has been undertaken in the original PC-1 of the project. On the basis of that
analysis the project is viable. The Net Present Value at 15% Discount Rates comes to be Rs.
14,290 million, BCR of project is 1.45 and EIRR is 26.1%. Following are the assumptions for
carrying out economic analysis:
Economic analysis has been conducted for 25 years
80% of drip and sprinkler irrigation systems will be installed on new orchards
20% of the drip and sprinkler irrigation systems will be installed on existing orchards
Due to water saving farmers will brought about 62,282 acres of land under High
Efficiency Irrigation Systems at their own cost.
The new orchards under drip and sprinkler systems will bear fruits after 4 to 5 years.
It is assumed that existing orchards under drip and sprinkler irrigation systems will have
no incremental yields during first year of operation.
It is assumed that orchards like Apple, Grapes, Apricot, Dates, Mangoes, Citrus & Guava
and field crops like Cotton, Sugarcane, Tomatoes and Chillies will be brought under drip
and sprinkler irrigation systems.
It is assumed that sprinkler irrigation system will be installed on crops like Wheat,
Pulses, Cotton, Sugarcane, Tomatoes and Chillies.
The financial prices have been multiplied with standard conversion factor of 0.9 to
calculate the economic prices.
iii) Social Benefit with Indicator
The project is expected to increase cropped areas, crop yields, cropping intensity, reduce water
losses and produce quality products. Accordingly, with the increase in income of beneficiaries,
an improvement of the rural livelihood and poverty reduction is expected.
The project will generate many forward and backward linkages with plastic industry and
agriculture sector. It is expected that overall 68,000 direct/indirect employments would be
generated under the project. A considerable numbers of high paying jobs will be generated in the
private sector for technicians and graduates in marketing, designing and maintaining HEISs.
iv) Environmental Impact
The project is environment friendly and would not cause any adverse environmental affects
normally associated with the new development, resettlement, depletion of land and water
42
resources, and loss of wildlife habitats. The project is expected to minimize the use of
pesticides/herbicide besides improving the soil health. The use of plastic tube in installation of
the system would be recycled to prevent environmental degradation.
v) Sensitivity Analysis
Country is met with water shortages. Any delay would adverse impact on the agricultural
development in the country and the management of water resources. The much needed
improvement of livelihood in rural areas will be further delayed. Further, price escalation due to
inflationary trend may lead to increase in project cost. However the viability of the project has
been tested for the following assumptions:
a) Cost increased by 10%
b) Benefit reduced by 10%
c) Cost increased by 10% and benefits reduced by 10%
d) Benefits delayed by 2 years
The project remains viable for each of the above mentioned assumptions. Taking into account
the above assumptions, the EIRRs of the project come to 23.2, 22.8, 20.0 and 16.3%. The detail
of Sensitivity Analysis are given in the previous PC-I.
(vi) Employment Generation (Direct and Indirect)
The implementation of the project would provide enhanced employment opportunities to the
rural as well as urban population of the country in the sectors of agriculture, processing, agro-
based industries, manufacturing in plastic, resin, polyethylene and metallic pipes. About 292
people will be directly employed by the project itself. Furthermore, a number of irrigation
companies will recruit hundreds of skilled labor for design, installation and operation of high
efficiency irrigation systems. Local private industry dealing with high efficiency irrigation
system components will open new avenues of employment for skilled workers. Improvements in
crop yields will also boost economic activity in rural areas of the country that will also create
further employment options.
12. A) IMPLEMENTATION MECHANISM
i) Implementation Schedule
The starting and completion date of the project for the original and revised PC-1 is as under;
PC-1 Starting Date Completion Date
Original April, 2007 April, 2012
Revised April, 2007 June, 2014
The project implementation is expected to be completed during 87 months extendable to
accommodate any delay in physical execution due to reasons beyond human control.
Prequalification and selection of SSCs, recruitment of staff, and standardization of equipment
specifications were completed during April, 2007 – December 2007, but the targets could not be
achieved during 2007-08. The project targets were partly achieved during 2008-09. The
installation of the system was delayed and actually started during 2008-09, which is proposed to
be undertaken up to June 2014. Due to the slow performance of the project during the first three
years, the project duration has been increased from 61 months to 87 months.
ii) Implementation Modalities
PARC shall be the nodal centre and will establish NPD (National Project Directorate) to
implement the project throughout the country in collaboration with Agriculture Departments of
the Provinces and other areas. It will ensure smooth functional linkages among all the project
components and SSCs, Technical Experts, and research establishments for optimal
implementation, conducting problem oriented adaptive R&D activities, and developing and
43
maintaining the standards by quality testing facilities. At the start of the project, the tasks listed
below need to be completed gradually.
Recruitment of project staff for the proposed establishments.
As soon as revised PC-1 is approved, the NPD-FPMU will convene a meeting of the
Federal Steering Committee to be chaired by the Chairman PARC. Similarly, provincial
Steering Committees will be constituted in all the provinces, AJK, Gilgit-Baltistan,
FATA and ICT.
Registration of SSCs based on the selection criteria and the performance of the SSCs in
the past three years.
PPIUs/PIUs established in each Province will implement the project in the potential
clusters decided by the NPD (FPMU and PDMTU).
Regional Project Monitoring Units are to be set up, under overall supervision and
guidance of the federal PDMTU, to monitor the project activities and provide support for
material testing and quality control.
Meanwhile an awareness campaign would be undertaken by NPD-FPMU and
PPIUs/PIUs to inform farmers about high efficiency irrigation systems. The registered
SSCs would undertake publicity campaign at their own.
Demonstration sites to be approved by the PARC will be established in each cluster area
by registered SSCs at a share of Rs. 5000/acre by the farmer on cost sharing basis
keeping in view the prescribed ceiling.
The funds allocated in PSDP would be transferred to the specifically opened Project
Assignment Accounts of the respective PPIUs/PIUs and NPD-PDMTU. The provincial
governments will deposit their share of the system cost as per PC-1 to the Project
Assignment Account and provide proof of the same to the NPD-FPMU.
List of registered SSCs will be widely circulated through media and would be available
at each district agricultural office.
Farmer will select the system of his choice and SSCs for survey and design of the
scheme.
The selected SSC will submit design, BOQs, cost estimates of the system to the PDMTU
for verification and approval (estimate based on agreed item-wise prices).
The NPD-PDMTU notifies the PPIU/PIU about the verified and approved system
designs to issue the work order.
After verification and approval of the design and BOQs by the NPD-PDMTU and issue
of work order by the PPIU/PIU, the farmer will deposit his due share to the selected SSC
through demand draft/pay order.
No advance as mobilization will be paid to any of the SSCs. At the time of delivery of
HEIS equipment and materials at the site, the PPIUs/PIUs after required verification by
the RPMU and district OFWM staff, the PPIUs/PIUs will make payment of 50% of the
system cost. At the commissioning of the site and verification by the RPMU, the
PPIUs/PIUs will make the payment equivalent of 40% of the system cost and the rest
10% will be kept as a warrantee for a period of one year.
Construction of water storage tanks will be done by the beneficiaries (wherever needed).
Payment of Rs. 10,000 per acre will be made to the farmer after verification of the
completed storage tank based on the actual BOQs of the civil works as per scheduled
rates of the PWD. Part payments will be made if the materials are delivered at the site.
Earthwork for installations of HEISs will be the responsibility of the farmer. This would
include digging of the channels for pipe laying and then covering the pipe with earth.
Farmers will also be responsible for arranging water sources at the head unit of the
system or close by.
Installation of the system by the SSCs.
Physical checking and verification of the system installed by the SSC by the concerned
RPMU and district OFWM staff with active participation of farmer.
Handing over of the scheme to farmers. Signing protocol stating the farmer‟s obligation.
Training of farmer/operators in system O&M by the SSC.
44
Training of farmers in production technologies and water productivity by the
PPIUs/PIUs and district OFWM offices.
Constitution of a Dispute Resolution Committee comprising Provincial Project Director,
EDO and Director RPMU. Final authority rests with Chairman PARC for resolution of
disputes.
12. B) RESULT BASED MONITORING (RBM) INDICATORS
The details of the RBM indicators for the project are described in Table 13.
45
Table 13 Result Based Monitoring (RBM) Indicators
Outcomes
Baseline Indicators Targets After Impacts
Inputs Outputs
Completion of Project
Introduction of high Increased area Currently area under HEIS About 265950 acres of Technology dissemination, adoption
efficiency irrigation under HEIS in the in the country is less than cultivable land will be and diffusion
systems (drip, country 1000 acres brought under HEIS in Strengthening of Private sector through
sprinkler, centre Pakistan the development of Service and Supply
pivot, etc) Companies in irrigation technology
System indigenization & local
production of irrigation system
components
Joint ventures between international
and local companies
Employment generation
Saving in foreign exchange
Control of waterlogging and salinity
Provision of quality Optimized use of Conveyance & application Improved irrigation Saving in irrigation water of 40 – 50 %
and efficient Services input resources losses account for about technology and At least 30% increase in crop yields
50% of irrigation water technical services for Increase in cropping intensity of 40%
Increased area
system‟s O&M to
under cultivation Current yields of major Saving of fertilizers and agro-chemicals
about 20,000 farmers
crops and fruits in Possibility of bringing new area under
covering about 265950
Pakistan are among the cultivation
acres under the HEISs.
lowest in the World Production of quality agricultural
Present average cropping products and possibilities of earning
intensity in Pakistan is foreign exchange through export of
107% quality products
46
Capacity building Testing and Currently there is no Development of state- Assurance of quality materials,
quality control material testing and of-the-art testing and equipment and O&M services through
facility quality control facility in quality control facility private sector involvement
the field of HEIS/ Training of 600
Training of Gradual replacement of inefficient
pressurized irrigation professionals in
professionals and irrigation technology
systems. survey, design,
farmers
installation, operation, Filling up the gaps in academic and
Only a few trained
Farmers maintenance, research sector
professionals are available
mobilization and monitoring &
in this particular field
awareness evaluation of the
creation Farmers are unaware of HEISs
the modern irrigation
Specialized training of
technology and its
6750 farmers in 135
potential benefits and are
districts covering
still using the old
aspects of irrigation
irrigation technology
and fertilizer
scheduling, water use-
crop production
technologies by the
NPD-PDMTU, PPIUs
and PIUs.
Basic training of
20,000 – 25,000
farmers in operation &
maintenance of the
HEISs
Farmers mobilization
and awareness creation
47
13. PROJECT MANAGEMENT
i) Administrative and Institutional Arrangements
The original PC-I included a number of Committees for policy guidelines & implementation
arrangements, which demanded lot of documentation and meetings. Therefore, in line with the
Prime Minister‟s directive that minimum number of players should be involved to have
implementation of the project on a faster track, no such committees are formed for this purpose.
The key functions have been assigned to PARC instead of consultants. The administrative and
institutional structure for implementation of the project has been kept as lean as possible. As the
project is a Federal Government supported Programme, its implementation will be governed by
the Federal Steering Committee (FSC). The composition of the FSC will be as under:
Secretary, MINFA Chairman
Chairman, PARC Member
Joint Secretary (Plan), MINFA Member
Representative of Finance Division Member
Representative of USAID Pakistan Office Member
Provincial Secretaries Agriculture of four provinces, Equivalent from
FATA, G-B and ICT, Secretary P&D AJK Member
Member Natural Resources Division, PARC Member
Director General (DM&E) Accountant General of Pakistan Member
National Project Director Member
Director, PDMTU Member
DG, FWMC Member
Director FPMU Member/Secretary
The committee would be authorized to make necessary adjustments and corrections in the
administrative, implementation and financial modalities to remove difficulties besides
allocation/reallocation of financial resources according to ground realities, without changing
overall scope of the project. In order to cover the variability due to specific conditions of the
areas, type of the HEISs and other inflation factors, the FSC may review the prescribed ceiling
of system cost and water storage tank and change the share of each stakeholder accordingly to
facilitate the smooth implementation of the project. The FSC will meet at least twice during each
project year to monitor the progress achievements, discuss project related issues, review action
plans, and provide guidelines for future course of action
Similarly, the Provincial Steering Committees (PSC) will be constituted in all the provinces,
AJK, Gilgit-Baltistan and FATA. These Committees will be chaired by Secretary Agriculture
(Secretary P&D in case of FATA) while Provincial Project Director, Representative of Finance
Department, Representative of P&P, Director Training Institute (OFWM), Director RPMU and
representative of the FPMU will be the members. The PD of PPIU will act as secretary of the
PSC. The Office of the Provincial Project Director/Project Director will be the secretariat of the
PSC. The PSC will meet at least twice a year during project operation and would take
appropriate decisions for smooth implementation of the project; resolve financial and
implementing issues; review and monitor project activities in their respective areas.
The project will be implemented by PARC through the NPD (FPMU, PDMTU) and
Provinces/Other Areas through PPIUs/PIUs and district OFWM offices. The already established
FPMU will work under NPD-PARC for the overall management of the project including
administrative and financial matters. PARC will also establish NPD-PDMTU at federal level for
design verification and approval, project monitoring, material testing and quality control, and
48
trainings of professionals/master trainers. The contract of the PIA consultants will be terminated
and their role will be taken up by the NPD-PDMTU located in PARC. PARC will also establish
eight RPMUs at the regional level under the overall guidance of NPD-PDMTU to monitor the
project activities, system installations, and collect random samples of the delivered material for
testing and quality verification by the NPD-PDMTU.
The PPIUs/PIUs already established in each province and other areas will be restructured and
would be headed by the Provincial Project Director or Project Director (DG, OFWM) on full
time basis, who will be paid incentive allowance at Rs. 30,000/month from the project budget.
They will be responsible to coordinate and implement the project in their respective
provinces/areas through a full time PPIU/PIU headed by Provincial Project Director/Project
Director and district OFWM staff in each district, payments to the SSCs, farmers‟ training
program, and other related aspects. The district OFWM staff will be responsible for
demonstration and mass awareness campaigns to motivate and mobilize the farmers, training of
farmers, joint supervision of system installations with the RPMU, and other related activities.
The district OFWM staff of the provinces and other areas/department will get their regular
salaries and allowances from their parent departments/source. However, for looking after the
additional duty of the project, they will be paid Additional Charge Allowance at the rate of 20%
of the basis pay scale subject to a maximum of Rs. 6,000 per month or as revised from time to
time. The institutional setup of the project management team is described in the Annexure 7A,
whereas Annexures-7B to 7F depict the organizational structure of the different units and
sections of the project. The location and extent of the eight RPMUs is presented by Annexure 8.
ii) Manpower Requirements
Likewise the original PC-1, the revised project will be executed mainly through the newly recruited
professionals at the federal and provincial levels, whereas at the district level existing staff of the
OFWM will be deployed for project work. The existing manpower of the provinces not covered in
the revised project especially the Provincial Monitoring Units stands to be terminated w.e.f. June
30, 2010 or till the approval of the revised PC-1, whichever is earlier. The existing staff of the
FPMU will largely be retained. For newly established project units, PARC will recruit the required
professionals and other project staff as per its recruitment policy and prescribed rules for each post.
However, this is a critical issue and provinces might take time to implement it, therefore in the
project adjustments will be made accordingly. The distribution of manpower requirements by each
project component is given at Annexure-9A, whereas Annexure-9B presents the services of the
existing district OFWM offices. The Annexure-9C shows the requirement of project staff in the
original PC-1 and the professionals engaged by the PIA consultants as per original PC-1 are
detailed in the Annexure-9D.
The FATA, AJK and GB do not have required manpower with qualification in Agricultural
Engineering (Water), therefore allocation made for incentive allowance in line with the provincial
OFWM will be used to recruit the staff as shown in the organizational structure of Annexure 7F.
The number of Field Teams shown in the organizational structure would depend on the budget
allocated in the structure.
The qualification and experience of the staff to be recruited in the HEISs Project is presented in
Table 14.
Table 14. Qualification and experience required for various positions in the HEISs Project
Post Grade Qualification Experience
National Project Director 21 M.Sc. in Agricultural Over 20 years of post-
Engineering (Water)/ graduate experience in
M.Sc. in Hydraulic water management and
Engineering/ M.Sc. specifically the high
49
in Water Resources efficiency irrigation
Management/M.S.c systems. Experience as
in Irrigation Project Director or in
Engineering. management of R&D
However, preference projects will be given
will be given to Ph. D preference. Experience
in the above of managing R&D
respective disciplines. projects will be an
additional qualification.
Director FPMU 20 M.Sc. in Agricultural Over 17 years of post-
Engineering (Water)/ graduate experience in
M.Sc. in Hydraulic water management and
Engineering/ M.Sc. specifically the high
in Water Resources efficiency irrigation
Management/M.S.c systems. Experience as
in Irrigation Director or in
Engineering. management of R&D
However, preference projects will be given
will be given to Ph. D preference. Experience
in the above of managing R&D
respective disciplines. projects will be an
additional qualification.
Director PDMTU 20 M.Sc. in Agricultural Over 17 years of post-
Engineering (Water)/ graduate experience in
M.Sc. in Hydraulic water management and
Engineering/ M.Sc. specifically the high
in Water Resources efficiency irrigation
Management/M.S.c systems. Experience in
in Irrigation design, monitoring and
Engineering. training will be given
However, preference preference. Experience
will be given to Ph. D of managing R&D
in the above projects will be an
respective disciplines. additional qualification.
Head, Design, Verification and 19 MSc. in Agricultural Over 12 years of
Approval Section Engineering (Water) experience in water
or MSc Irrigation management and
Engineering specifically the high
efficiency irrigation
systems. Experience in
design of high
efficiency irrigation
systems will be given
preference. Experience
of managing Design
Teams will be an
additional qualification.
Training and Capacity Building 19 MSc. in Agricultural Over 12 years of
Section Engineering (Water) experience in training
or MSc Irrigation and capacity building
50
Engineering programmes in the area
of water management
and specifically the high
efficiency irrigation
systems. Experience in
training of staff of
OFWM and SSCs in the
design of high
efficiency irrigation
systems will be given
preference. Experience
of managing the
training and capacity
building programme
will be an additional
experience.
Head, Monitoring and Evaluation 19 MSc. in Agricultural Over 12 years of
Section Engineering (Water) experience in
or MSc Irrigation monitoring and
Engineering evaluation in the area of
water management and
specifically the high
efficiency irrigation
systems. Experience in
monitoring of activities
of staff of the OFWM
and SSCs in the high
efficiency irrigation
systems will be given
preference. Experience
of managing of
monitoring and
evaluation of R&D
projects is an additional
qualification.
Head, Testing and Quality Control 19 MSc in Agricultural Over 12 years of
Section Engineering (Water) experience in Testing
or MSc Irrigation and Quality control in
Engineering the area of water
management and
specifically the high
efficiency irrigation
systems. Experience in
testing and quality
control of high
efficiency irrigation
systems will be given
preference. Experience
of managing laboratory
for Testing and Quality
Control is an additional
51
qualification.
Provincial Project Director/Project 19 MSc in Agricultural Over 12 years of
Director (HEIS) Engineering (Water) experience as an
or MSc Irrigation irrigation engineer in
Engineering the area of water
management and
specifically the high
efficiency irrigation
systems. Experience in
implementation of high
efficiency irrigation
systems will be given
preference. Experience
of design, installation
and monitoring of high
efficiency irrigation
systems will be an
additional qualification.
Irrigation Engineer 18 MSc in Agricultural Over 5 years of
Engineering (Water) experience as an
or MSc Irrigation irrigation engineer in
Engineering the area of water
management and
specifically the high
efficiency irrigation
systems. Experience in
design, installation and
monitoring high
efficiency irrigation
systems will be given
preference. Experience
of managing irrigation
systems projects will be
an additional
qualification.
Deputy Director (Admn) 18 MBA/MPA Over 5 years of
experience in
administration of R&D
projects.
Deputy Director (Finance) 18 MBA (Finance) Over 5 years of
experience in Accounts
and Finance of R&D
projects.
Design Engineer 18 MSc. in Agricultural Over 5 years of
Engineering (Water) experience in water
or MSc Irrigation management and
Engineering specifically the high
efficiency irrigation
systems. Experience in
52
design of high
efficiency irrigation
systems will be given
preference. Experience
of managing Design
Teams is an additional
qualification.
Irrigation System Testing Engineer 18 MSc. in Agricultural Over 5 years of
Engineering (Water) experience in testing of
or MSc Irrigation high efficiency
Engineering irrigation systems for
water and energy use
efficiency. Experience
of working in private
sectors companies will
be given preference.
Experience of
managing Field Testing
activities will be an
additional experience.
Hydraulic Testing Engineer 18 MSc. in Agricultural Over 5 years of
Engineering (Water) experience in hydraulic
or MSc Hydraulic testing of sprinkler and
Engineering drip irrigation system
components including
the locally
manufactured materials.
Experience in working
in hydraulic testing in
public and private
sector companies will
be given preference.
Experience of
managing hydraulic
testing labs will be
additional qualification.
Material Testing Engineer 18 MSc in Agricultural Around 5 years of
Engineering (Water) experience in Testing
or MSc and Quality control in
Mechanical/Materials the area of water
Engineering management and
specifically the high
efficiency irrigation
systems. Experience in
testing and quality
control of high
efficiency irrigation
systems will be given
preference. Experience
of managing laboratory
for Testing and Quality
53
Control will be an
additional qualification.
Training Officer 18 MSc. in Agricultural Over 5 years of
Engineering (Water) experience in training
or MSc Irrigation and capacity building
Engineering programmes in the area
of water management
and specifically the high
efficiency irrigation
systems. Experience in
training of staff of
OFWM and SSCs in the
design of high
efficiency irrigation
systems will be given
preference. Experience
of managing the
training and capacity
building programme
will be an additional
experience.
Monitoring Engineer 18 MSc. in Agricultural Over 5 years of
Engineering (Water) experience in
or MSc Irrigation monitoring of high
Engineering efficiency irrigation
systems at farmers
fields. Experience in
monitoring of high
efficiency irrigation
systems projects will be
given preference.
Experience of working
as Monitoring Engineer
will be an additional
experience.
Account Officer 17 MBA (Financial) Experience working as
Accounts Officer will
be given preference.
Assistant Engineer (Irrigation) 17 BSc Agricultural Experience working in
Engineering (Water) high efficiency
irrigation systems will
be given preference.
Agriculture Officer (Horticulture) 17 MSc Hons in Experience working in
Agriculture (with high efficiency
specialization in irrigation systems will
Horticulture) be given preference.
54
14. ADDITIONAL DECISIONS REQUIRED TO MAXIMISE SOCIO ECONOMIC
BENEFITS FROM THE PROPOSED PROJECT
i) Role of the Provinces in the Implementation Process
The implementation arrangement as envisaged in the original PC-I did not work out effectively,
as the performance of the project was extremely slow and poor. Therefore, implementing
strategy of the revised project is modified with expanded role and key functions in the
implementation process to PARC and provinces, which is in line with presentation given to the
Prime Minister that minimum number of players will be involved in the implementation of
project. This is also in line with the prevailing macro-economic policy of the government. The
existing PPIUs/PIUs will be restructured and provided with necessary professional staff. The
provincial project implementing units have major responsibilities in implementation, farmers
training and mass awareness, and support to the RPMUs for monitoring. The Provinces‟ role
has been expanded at district level. Some of the existing regular professional staff of the district
OFWM will be involved to implement the project in their districts. The full-time staff will only
get salaries from their parent department/source and will be paid incentive allowance from the
project budget at Rs. 10,000/month.
ii) Cost Sharing Formula
In the previous PC-I, the cost sharing formula for the system cost alone was set at 60:20:20 for
Federal Government, Provinces and Farmers, respectively provided that the cost of the system
does not exceed Rs. 45,000 per acre (+ 10% variations). In case the cost exceeds the prescribed
ceiling the extra cost of the system per acre will be born by the beneficiaries. This formula was
expected to create farmers‟ ownership. In case the Federal Steering Committee felt difficulties in
the implementation of the project, the prescribed ceiling of system cost was reviewed by the
Committee. In any case federal support was 60% of the system cost subject to the prescribed
ceiling. The financial supports both Federal and Provincial Governments were available up to
maximum limit of 50 acres. If provincial Governments intend to reduce ratio of farmer‟s share,
then share of respective provincial Governments was enhanced accordingly.
This arrangement has been changed in the revised PC-I, where farmers share is fixed at Rs.
5,000 per acre, as farmer does not have the capacity to pay more in the pilot phase of this
project. The average cost of the system and storage reservoir has been estimated @ Rs. 57,000
per acre. Farmers‟ share is fixed at Rs. 5,000 per acre while provincial governments will
contribute 20% of the remaining cost of system and storage reservoir, which is Rs. 10,400 per
acre. Remaining Rs. 41,600 per acre will be provided by the Federal government. USAID will
provide Rs. 4250.00 million (USD 50.00 million) to federal government mainly to cover the cost
of system installation, monitoring, training and research. The fixed cost of system and farmers‟
share would force the SSCs and the farmers to keep the cost as low as possible. The FSC will be
authorized to make necessary adjustments in the system cost per acre for smooth implementation
of the project. There is no limit for the maximum area to be covered but a limit of Rs. 3.0
million (inclusive of all subsidies proposed in the project) is imposed per farm basis as a
contribution from the Project. In case farmers are interested to expand the system rest of the cost
will be paid by the farmer in total. For the installation of Continuous-move and Automated
Sprinkler Irrigation Systems, farmers can join in to Groups to seek support for these systems,
which are cost-effective for farms of more than 100 acres. Fixing the maximum limit of subsidy
to Rs. 3.0 million means that the benefits of the project are extended to small holders also.
In case of demonstration plots the cost sharing formula as outlined in the original PC-1 was 80%
by the GOP, 10% by the farmers/institutions, and remaining 10% by the SSCs. Provinces were
excluded to share the cost of demonstration plots. The targets for demonstration plots are largely
completed and only few demonstration sites may be required. The cost sharing formula in the
revised PC-1 is 80% by the GOP, fixed share of Rs. 5000 per acre by the farmers/institutes, and
rest by the SSCs for the future demonstration plots.
55
CERTIFICATE
It is certified that the project proposal has been prepared on the basis of instructions provided by
the Planning Commission for the preparation of PC-I for the production sector projects.
Prepared By i. (Dr. Bashir Ahmad)
Director, Environment
Pakistan Agricultural Research Council, Islamabad
Ph. No. 051-8442312
ii. (Zakir Hussain Dahri)
Director, Energy
Pakistan Agricultural Research Council, Islamabad
Ph. No. 051-9225454
Checked By (Dr. Shahid Ahmad)
Member, Natural Resources Division
Pakistan Agricultural Research Council, Islamabad
Ph. No. 051-9220385
Approved By i (Dr. Zafar Altaf)
Chairman
Pakistan Agricultural Research Council, Islamabad
Ph. No. 051-9203966
ii (Mr. Junaid Iqbal Chowdry)
Secretary
Ministry of Food and Agriculture, Islamabad
Ph. No. 051-9210351
56
Annexure-1A
Space Requirements for Construction of Laboratory Buildings
S# Name of Position PDMTU Std. Space Req. C. Area
(sq ft) (sq ft)
1 Head Testing Section (B-19 / Package) 1 240 240
2 Irrigation System Testing Engineer (B-18) 1 160 160
3 Material Testing Engineer (B-18/Package) 1 160 160
4 Hydraulic testing Engineer (B-18/Package) 1 160 160
5 Computer Assistant (B-15 / Package) 2 60 120
6 Office Assistant (B-15/Package) 2 60 120
7 Technician (Mechanical) (B-14/ Package) 2 60 120
8 Technician (Electrical) (B-14/ Package) 1 60 60
9 Technician (Chemical) (B-14/ Package) 1 60 60
10 Plumber/Fitter (B-8 / Package) 2 60 120
Laboratories etc.
11 Irrigation systems 1 1500 1500
12 Hydraulics 1 1500 1500
13 Material testing 1 1500 1500
14 Store 1 600 600
Sub-Total 6420
15 Add 40% area for walls, reception, circulation and 2568
wash rooms etc.
Grand Total 8988
57
Annexure-1B
Estimates of Civil/Construction Works
Unit Amount
No. Description Area Unit
Rate (Million Rs.)
1 Building Construction Civil Works 8988 sq ft 2070 18.61
Water Supply & Sanitation installation,
2 internal/external at 12.5 % of civil 8988 sq ft 258.75 2.33
3 Electrical works at 15% of civil works 8988 sq ft 310.5 2.79
4 Gas installation at 3% of civil works 8988 sq ft 62.1 0.56
5 Parking area & pathways at 5% civil works 8988 sq ft 103.5 0.93
6 Site development, land scaping & horticulture 8988 sq ft 62.1 0.56
work at 3% of civil works
7 Voice and data cabling network 8988 sq ft L.S 1.00
8 Underground water tank 20000 Gallon 120 2.40
9 Overhead water tank 10000 Gallon 212 2.12
10 Tubewell 1500000 1.50
11 Standby diesel generator (250 KVA), skid 3000000 3.00
mounted with automatic failer panel
12 One km and 12 ft wide approach road 39360 110 4.33
13 External sewage disposal works including L.S L.S 30.00
sewage water treatment plant
Sub-Total: A 70.12
Architectural & Engineering Consultancy
Services including sub-soil investigation,
14 2.80
topographic survey charge etc @ 4% sub-total
"A"
15 Contigencies @ 1% of "A" 0.62
16 Escalation for the 1st year Nil
17 Escalation for the 2nd year, 75% of sub-total 4.20
"A" at 8%
18 Escalation for the 3rd year, 37.5% of sub-total 2.11
"A" at 8%
Total Cost (M. Rs.) 79.85
58
Annexure-2
List of Equipment for National Quality Control and Testing Laboratory
No. Major Category of Quality Control and Testing Estimated Price
Equipment (Rs. in million)
1 Plastic Testing Equipment for strength, materials, 20.0
melting point, UV stabilizer, black carbon, dispersion,
etc.
2 Pipe Hydraulic Testing Facility for different 20.0
diameters including the installation of tubewell and
energization, etc.
3 Pump and Prime Mover Testing for Hydraulic and 5.0
Water Efficiency
4 Pump and Prime Mover Testing for Energy 5.0
Efficiency
5 Alternate Energy Sources and Testing (solar, biogas, 7.5
diesel, petrol, etc.) for motors and engines both for
AC and DC and Convertors
6 Sprinkler testing facility with automatic and non- 7.5
recording Rain gauges for collection of water sample
7 Drip Irrigation Testing Facility with Collection of 5.0
Water Samples, Pressure and Discharge Measurement
8 Miscellaneous Equipment for Field and Laboratory 5.0
Total 75.0
Note: The budget break-up is tentative. In fact feasibility would be required for the overall equipment
purchase for the Laboratory. Based on the detailed feasibility most appropriate and cost-effective equipment will be
purchased through the procurement procedures as described by the PEPRA rules.
59
Annexure-3A
List of Vehicles Purchased under HEIS Project
PCIU PMU Total
Components Provision in PC-1 Purchased Provision in PC-1 Purchased Provision in PC-1 Purchased
M. Cycle Vehicles M. Cycle Vehicles M. Cycle Vehicles M. Cycle Vehicles M. Cycle Vehicles M. Cycle Vehicles
Punjab 8 16 0 0 4 7 0 0 12 23 0 0
Sindh 6 12 0 12 4 6 4 6 10 18 4 18
Balochistan 8 16 6 16 4 7 4 7 12 23 10 23
K-P 10 10 8 10 0 8 0 8 10 18 8 18
AJK 2 4 2 1 0 0 0 0 2 4 2 1
G-B 2 4 2 4 0 0 0 0 2 4 2 4
FATA 2 4 0 0 0 0 0 0 2 4 0 0
MINFA
(FPCIU & 2 9 0 0 2 6 2 6 4 15 2 6
FPMU)
Consultant 0 0 0 0 0 0 0 0 0 15 0 15
Total 40 75 18 43 14 34 10 27 54 124 28 85
60
Annexure-3B
List of Machinery & Equipment Purchased under HEIS Project
S. # DESCRIPTION Punjab Sindh K-P Balochistan AJK FATA G-B FPMU Total
1 Computer Desktop Branded 22 25 25 32 6 6 6 10 132
2 Laser Jet Printer (B&W) HP 2015 17 19 19 25 4 4 4 6 98
3 Laser Jet Printer (All in one) HPm 1522nf 4 5 5 6 1 1 1 3 26
4 Laser Jet Printer (Color) HP 3505 1 1 1 1 1 1 1 1 8
5 Photocopier Toshiba E-Studio 425 4 6 5 6 1 1 1 1 25
6 Fax Machine Panasonic 5 7 7 8 2 2 2 2 35
7 Multimedia Projector 3M 1 1 1 1 - - - 1 5
8 Laptop Branded 1 2 2 2 1 1 1 1 11
9 Split A.C 1.5 ton DAIKOOL 15 18 20 23 3 3 1 7 90
10 Gaba National A.C 1.5 ton 1 1
11 Water Dispenser 2 3 1 6
12 Electric Water Cooler 1 1
13 Digital Camera 2 2 1 5
14 Audio Conference System 1 1
15 Refrigerator 3 1 4
16 Vacuum Cleaner 1 1 2
17 UPS 9 9
18 water filter 1 1
19 steno set 1 1
20 Telephone Exchange 1 1
21 Air Cooler 1 1
22 LCD 1 1
23 Heaters 12 12
24 DSL Hardware 2 2
61
Annexure-4
Details of Office Equipments to be Purchased*
Physical Requirements Total
Unit Cost
Particulars Unit PDMCU RPMUs Total Cost
Transport & Equipment
1 Computers (Desktop) No. 28 32 60 70000 4.200
2 Laser Printer No. 18 16 34 26000 0.884
3 Laptop No. 5 8 13 125000 1.625
4 Printers (Colored) No. 4 - 4 100000 0.400
5 Scanner No. 8 8 16 25000 0.400
6 Air-Conditioner No. 6 8 14 45000 0.630
7 Fax Machines with telephone No. 5 8 13 25000 0.325
8 Telephone No. 20 24 44 2500 0.110
9 Photostat Machines No. 5 8 13 300000 3.900
10 Multi-Media with Screen No. 1 - 1 150000 0.150
11 Digital Still Camera No. 5 8 13 40000 0.520
12 Electric Water Cooler No. 5 8 13 30000 0.390
13 Furniture & Fixture No. 4.5 8 12.5 250000 3.125
14 Office Re-Furbishing No. 1 - 1 115000 0.115
15 Others No. 1 8 9 200000 1.800
Total Office Equipment) 18.574
* Project vehicles and office equipment for the other units have already been purchased during the 1 st three years of project operation. These will be redistributed.
62
Annexure-5A
Detailed Budget Break-up of the HEIS Project
(Million Rupees)
S# Particular Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 Total
1 Salaries & Allowances - - - 193.997 198.472 202.947 207.421 802.837
2 Honorarium - - - 2.221 2.665 3.173 3.786 11.845
3 Medical Charges - - - 3.700 3.815 3.930 4.044 15.489
A Establishment Expenses 9.928 40.177 67.603 199.918 204.951 210.049 215.252 947.879
1 Transport - - - 10.750 12.363 14.217 16.349 53.679
2 Machinery & Equipment - - - 1.105 1.271 1.461 1.681 5.518
3 Furniture & Fixture - - - 0.445 0.512 0.589 0.677 2.222
4 Others - - - 0.635 0.730 0.840 0.966 3.171
Repair & Maintenance - - - 12.935 14.875 17.107 19.673 64.589
1 Traveling Allowances - - - 28.900 29.750 30.757 31.671 121.078
2 Transportation of Goods - - - 0.648 0.674 0.704 0.738 2.763
3 P.O.L. for Govt. Vehicles - - - 31.850 36.163 41.122 46.825 155.960
4 Others - - - 2.850 2.850 2.850 2.850 11.400
Transportation - - - 64.248 69.436 75.433 82.084 291.201
1 Postage & Telegraph - - - 2.380 2.623 2.902 3.224 11.129
2 Telephone & T/Calls - - - 12.372 12.696 13.069 13.497 51.634
3 Electronic Communication - - - 0.798 0.893 1.001 1.126 3.818
4 Courier and pilot services - - - 1.055 1.089 1.128 1.172 4.444
5 Others - - - 1.413 1.459 1.513 1.575 5.960
Communication - - - 18.018 18.760 19.613 20.595 76.985
1 Gas - - - 1.530 1.760 2.023 2.327 7.640
2 Water - - - 0.691 0.795 0.914 1.041 3.440
3 Electricity - - - 2.442 2.808 3.230 3.714 12.194
4 Others - - - 1.813 1.918 2.101 2.240 8.070
Utilities - - - 6.476 7.280 8.268 9.321 31.344
1 Rent of Office Building - - - 7.720 8.492 9.420 10.454 36.086
2 Rate & Taxes - - - 0.980 1.127 1.296 1.490 4.894
3 Rent of Machinery/Equipment - - - 0.980 1.127 1.296 1.490 4.894
4 Others - - - 1.813 1.964 2.139 2.340 8.256
Occupancy Charges - - - 11.493 12.710 14.152 15.774 54.129
1 Office Stationary - - - 11.060 12.719 14.627 16.821 55.227
2 Newspapers, Books, Periodicals - - - 0.420 0.483 0.555 0.639 2.097
3 Uniform & Liveries - - - 0.735 0.845 0.972 1.118 3.670
4 Payment of services - - - 1.272 1.463 1.682 1.935 6.352
5 Others - - - 6.900 7.815 8.867 10.077 33.660
General - - - 20.387 23.325 26.704 30.589 101.005
B Recurring Expenses 5.959 45.131 37.721 133.555 146.387 161.276 178.036 708.064
1 Publicity/Farmers' Mobilization - 6.534 - 11.750 5.975 3.188 - 27.447
2 Training / Capacity Building - 3.803 - 16.012 20.192 12.471 2.850 55.328
3 Transport, Machinery & Equipments 42.149 102.513 7.171 18.574 - - - 170.407
4 Irrigation Work (system installations) - 143.208 759.240 2500.305 4069.800 4537.200 2954.310 14964.063
5 Civil Works (Lab. Building) - - - 79.850 - - - 79.850
6 Laboratory Equipment - - - 35.000 40.000 - - 75.000
7 Rewards and Incentives - 1.313 - - - - - 1.313
8 Research and Development - - - - - 15.000 15.000 30.000
9 Project Impact Evaluation Study - - - - 8.000 - 8.000 16.000
10 Technical Experts/Consultants - - - 5.000 10.000 10.000 5.000 30.000
11 PIA Consultant 39.300 - - 60.700 - - - 100.000
gC Other Expenses 81.449 257.371 766.411 2727.191 4153.967 4577.859 2985.160 15549.407
Sub-Total 97.336 342.679 871.735 3060.664 4505.305 4949.183 3378.448 17205.350
Physical & Price Contingencies - - - 153.033 225.265 247.459 168.922 794.680
Total Expenses 97.336 342.679 871.735 3213.697 4730.570 5196.642 3547.370 18000.030
63
Annexure-5B
Detailed Budget Break-up of the Federal Project Management Unit (FPMU)
(Million Rupees)
S
Particular Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 Total
#
1 Salaries & Allowances - - - 11.771 12.002 12.233 12.464 48.470
2 Honorarium - - - 0.235 0.240 0.245 0.249 0.969
3 Medical Charges - - - 0.353 0.360 0.367 0.374 1.454
A Establishment Expenses 6.699 7.264 8.645 12.360 12.602 12.845 13.087 73.502
1 Transport - - - 0.400 0.460 0.529 0.608 1.997
2 Machinery & Equipment - - - 0.150 0.173 0.198 0.228 0.749
3 Furniture & Fixture - - - 0.050 0.058 0.066 0.076 0.250
4 Others - - - 0.050 0.058 0.066 0.076 0.250
Repair & Maintenance - - - 0.650 0.748 0.860 0.989 3.246
1 Traveling Allowances - - - 1.300 1.495 1.719 1.977 6.491
2 Transportation of Goods - - - 0.045 0.045 0.045 0.045 0.180
3 P.O.L. for Government Vehicles - - - 1.300 1.495 1.719 1.977 6.491
4 Others - - - 0.480 0.480 0.480 0.480 1.920
Transportation - - - 3.125 3.515 3.964 4.479 15.083
1 Postage & Telegraph - - - 0.096 0.110 0.127 0.146 0.479
2 Telephone & T/Calls - - - 1.080 1.242 1.428 1.643 5.393
3 Electronic Communication - - - 0.060 0.069 0.079 0.091 0.300
4 Courier and pilot services - - - 0.090 0.104 0.119 0.137 0.449
5 Others - - - 0.125 0.144 0.165 0.190 0.624
Communication - - - 1.451 1.669 1.919 2.207 7.245
1 Gas - - - 0.180 0.207 0.238 0.274 0.899
2 Water - - - 0.054 0.062 0.071 0.082 0.270
3 Electricity - - - 0.300 0.345 0.397 0.456 1.498
4 Others - - - 0.125 0.125 0.150 0.150 0.550
Utilities - - - 0.659 0.739 0.856 0.962 3.216
1 Rent of Office Building - - - 1.440 1.584 1.822 2.095 6.940
2 Rate & Taxes - - - 0.060 0.069 0.079 0.091 0.300
3 Rent of Machinery/Equipment - - - 0.060 0.069 0.079 0.091 0.300
4 Others - - - 0.125 0.144 0.165 0.190 0.624
Occupancy Charges - - - 1.685 1.866 2.146 2.467 8.164
1 Office Stationary - - - 0.200 0.230 0.265 0.304 0.999
2 Newspapers, Books & Periodicals - - - 0.030 0.035 0.040 0.046 0.150
3 Uniform & Liveries - - - 0.060 0.069 0.079 0.091 0.300
4 Payment of services - - - 0.100 0.115 0.132 0.152 0.499
5 Others - - - 0.200 0.230 0.265 0.304 0.999
General - - - 0.590 0.679 0.780 0.897 2.946
B Recurring Expenses 4.540 4.199 6.623 8.160 9.215 10.524 12.002 55.262
1 Publicity / Farmers' Mobilization - 0.762 - 3.000 1.600 1.000 - 6.362
2 Transport, Machinery & Equipments 16.010 0.091 1.529 - - - - 17.630
3 Research and Development - - - - - 15.000 15.000 30.000
4 Project Impact Evaluation Study - - - - 8.000 - 8.000 16.000
5 Technical Experts/Consultants - - - 5.000 10.000 10.000 5.000 30.000
6 PIA Consultant 39.300 - - 60.700 - - - 100.000
C Other Expenses 55.310 0.853 1.529 68.700 19.600 26.000 28.000 199.992
Sub-Total 66.549 12.316 16.797 89.220 41.417 49.369 53.089 328.756
Physical & Price Contingencies - - - 4.461 2.071 2.468 2.654 11.655
Total Expenses 66.549 12.316 16.797 93.681 43.488 51.837 55.743 340.411
64
Annexure-5C
Detailed Budget Break-up of the Project Design, Monitoring, Testing and Training Unit (PDMTU)
(Million Rupees)
S
Particular Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 Total
#
1 Salaries & Allowances - - - 17.652 19.064 20.476 21.888 79.081
2 Honorarium - - - 0.353 0.381 0.410 0.438 1.582
3 Medical Charges - - - 0.530 0.572 0.614 0.657 2.372
A Establishment Expenses - - - 18.535 20.017 21.500 22.983 83.035
1 Transport - - - 0.600 0.690 0.794 0.913 2.996
2 Machinery & Equipment - - - 0.225 0.259 0.298 0.342 1.124
3 Furniture & Fixture - - - 0.075 0.086 0.099 0.114 0.375
4 Others - - - 0.075 0.086 0.099 0.114 0.375
Repair & Maintenance - - - 0.975 1.121 1.289 1.483 4.869
1 Traveling Allowances - - - 1.265 1.500 1.800 1.900 6.465
2 Transportation of Goods - - - 0.068 0.068 0.068 0.067 0.270
3 P.O.L. for Government Vehicles - - - 1.950 2.243 2.579 2.966 9.737
4 Others - - - 0.720 0.720 0.720 0.720 2.880
Transportation - - - 4.003 4.530 5.166 5.653 19.352
1 Postage & Telegraph - - - 0.144 0.166 0.190 0.219 0.719
2 Telephone & T/Calls - - - 1.080 1.242 1.428 1.643 5.393
3 Electronic Communication - - - 0.090 0.104 0.119 0.137 0.449
4 Courier and pilot services - - - 0.135 0.155 0.179 0.205 0.674
5 Others - - - 0.188 0.216 0.248 0.285 0.936
Communication - - - 1.637 1.882 2.164 2.489 8.172
1 Gas - - - 0.270 0.311 0.357 0.411 1.348
2 Water - - - 0.081 0.093 0.107 0.123 0.404
3 Electricity - - - 0.450 0.518 0.595 0.684 2.247
4 Others - - - 0.188 0.188 0.225 0.225 0.825
Utilities - - - 0.989 1.109 1.284 1.443 4.825
1 Rent of Office Building - - - 0.600 0.660 0.726 0.799 2.785
2 Rate & Taxes - - - 0.090 0.104 0.119 0.137 0.449
3 Rent of Machinery/Equipment - - - 0.090 0.104 0.119 0.137 0.449
4 Others - - - 0.188 0.216 0.248 0.285 0.936
Occupancy Charges - - - 0.968 1.083 1.212 1.358 4.620
1 Office Stationary - - - 0.300 0.345 0.397 0.456 1.498
2 Newspapers, Books & Periodicals - - - 0.045 0.052 0.060 0.068 0.225
3 Uniform & Liveries - - - 0.090 0.104 0.119 0.137 0.449
4 Payment of services - - - 0.150 0.173 0.198 0.228 0.749
5 Others - - - 0.300 0.345 0.397 0.456 1.498
General - - - 0.885 1.018 1.170 1.346 4.419
B Recurring Expenses - - - 9.455 10.742 12.287 13.771 46.255
1 Training / Capacity Building - - - 10.692 10.122 5.061 - 25.875
2 Transport, Machinery & Equipments - - - 7.538 - - - 7.538
3 Civil Works (Lab. Building) - - - 79.850 - - - 79.850
4 Lab. Equipment for Quality Control - - - 35.000 40.000 - - 75.000
C Other Expenses - - - 133.080 50.122 5.061 0.000 188.263
Sub-Total - - - 161.069 80.882 38.848 36.754 317.553
Physical & Price Contingencies - - - 8.053 4.044 1.942 1.838 15.878
Total Expenses - - - 169.123 84.926 40.790 38.592 333.431
65
Annexure-5D
Detailed Budget Break-up of Each of the Eight (8) Regional Project Monitoring Unit (RPMU)
(Million Rupees)
S
Particular Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 Total
#
1 Salaries & Allowances - - - 3.499 3.758 4.018 4.277 15.552
2 Honorarium - - - 0.070 0.075 0.080 0.086 0.311
3 Medical Charges - - - 0.105 0.113 0.121 0.128 0.467
A Establishment Expenses - - - 3.674 3.946 4.218 4.491 16.330
1 Transport - - - 0.225 0.259 0.298 0.342 1.124
2 Machinery & Equipment - - - 0.030 0.035 0.040 0.046 0.150
3 Furniture & Fixture - - - 0.005 0.006 0.007 0.008 0.025
4 Others - - - 0.020 0.023 0.026 0.030 0.100
Repair & Maintenance - - - 0.280 0.322 0.370 0.426 1.398
1 Traveling Allowances - - - 0.350 0.403 0.463 0.532 1.748
2 Transportation of Goods - - - 0.045 0.045 0.045 0.045 0.180
3 P.O.L. for Government Vehicles - - - 0.600 0.690 0.794 0.913 2.996
4 Others - - - 0.075 0.075 0.075 0.075 0.300
Transportation - - - 1.070 1.213 1.376 1.565 5.224
1 Postage & Telegraph - - - 0.060 0.060 0.060 0.060 0.240
2 Telephone & T/Calls - - - 0.084 0.084 0.084 0.084 0.336
3 Electronic Communication - - - 0.060 0.069 0.079 0.091 0.300
4 Courier and pilot services - - - 0.060 0.060 0.060 0.060 0.240
5 Others - - - 0.050 0.050 0.050 0.050 0.200
Communication - - - 0.314 0.323 0.333 0.345 1.316
1 Gas - - - 0.072 0.083 0.095 0.110 0.360
2 Water - - - 0.038 0.044 0.050 0.057 0.188
3 Electricity - - - 0.124 0.143 0.164 0.189 0.619
4 Others - - - 0.100 0.100 0.100 0.100 0.400
Utilities - - - 0.334 0.369 0.409 0.455 1.567
1 Rent of Office Building - - - 0.360 0.396 0.436 0.479 1.671
2 Rate & Taxes - - - 0.060 0.069 0.079 0.091 0.300
3 Rent of Machinery/Equipment - - - 0.060 0.069 0.079 0.091 0.300
4 Others - - - 0.100 0.100 0.100 0.100 0.400
Occupancy Charges - - - 0.580 0.634 0.694 0.762 2.670
1 Office Stationary - - - 0.180 0.207 0.238 0.274 0.899
2 Newspapers, Books & Periodicals - - - 0.030 0.035 0.040 0.046 0.150
3 Uniform & Liveries - - - 0.060 0.069 0.079 0.091 0.300
4 Payment of services - - - 0.084 0.097 0.111 0.128 0.419
5 Others - - - 0.100 0.100 0.100 0.100 0.400
General - - - 0.454 0.507 0.568 0.638 2.168
B Recurring Expenses - - - 3.032 3.368 3.752 4.191 14.342
3 Transport, Machinery & Equipments - - - 1.380 - - - 1.380
C Other Expenses - - - 1.380 - - - 1.380
Sub-Total - - - 8.086 7.314 7.970 8.681 32.051
Physical & Price Contingencies - - - 0.404 0.366 0.399 0.434 1.603
Total Expenses - - - 8.490 7.680 8.369 9.115 33.654
66
Annexure-5E
Detailed Budget Break-up of PPIU Punjab including 36 District OFWM Offices
(Million Rupees)
S
Particular Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 Total
#
1 Salaries & Allowances - - - 36.157 36.265 36.374 36.482 145.279
2 Honorarium - - - 0.118 0.206 0.268 0.345 0.937
3 Medical Charges - - - 0.178 0.181 0.184 0.187 0.730
A Establishment Expenses - 3.065 11.068 36.453 36.652 36.826 37.014 161.078
1 Transport - - - 1.950 2.243 2.579 2.966 9.737
2 Machinery & Equipment - - - 0.070 0.081 0.093 0.106 0.350
3 Furniture & Fixture - - - 0.040 0.046 0.053 0.061 0.200
4 Others - - - 0.050 0.058 0.066 0.076 0.250
Repair & Maintenance - - - 2.110 2.427 2.790 3.209 10.536
1 Traveling Allowances - - - 5.880 5.880 5.880 5.880 23.520
2 Transportation of Goods - - - 0.025 0.029 0.033 0.038 0.125
3 P.O.L. for Government Vehicles - - - 5.850 6.660 7.592 8.663 28.764
4 Others - - - 0.150 0.150 0.150 0.150 0.600
Transportation - - - 11.905 12.719 13.655 14.731 53.009
1 Postage & Telegraph - - - 0.400 0.454 0.516 0.588 1.958
2 Telephone & T/Calls - - - 2.340 2.340 2.340 2.340 9.360
3 Electronic Communication - - - 0.024 0.024 0.024 0.024 0.096
4 Courier and pilot services - - - 0.050 0.050 0.050 0.050 0.200
5 Others - - - 0.100 0.100 0.100 0.100 0.400
Communication - - - 2.914 2.968 3.030 3.102 12.014
1 Gas - - - 0.072 0.083 0.095 0.110 0.360
2 Water - - - 0.036 0.041 0.048 0.055 0.180
3 Electricity - - - 0.100 0.115 0.132 0.152 0.499
4 Others - - - 0.100 0.115 0.132 0.152 0.499
Utilities - - - 0.308 0.354 0.407 0.468 1.538
1 Rent of Office Building - - - 0.400 0.440 0.484 0.532 1.856
2 Rate & Taxes - - - 0.050 0.058 0.066 0.076 0.250
3 Rent of Machinery/Equipment - - - 0.050 0.058 0.066 0.076 0.250
4 Others - - - 0.100 0.115 0.132 0.152 0.499
Occupancy Charges - - - 0.600 0.670 0.749 0.837 2.855
1 Office Stationary - - - 2.280 2.622 3.015 3.468 11.385
2 Newspapers, Books, Periodicals - - - 0.015 0.017 0.020 0.023 0.075
3 Uniform & Liveries - - - 0.015 0.017 0.020 0.023 0.075
4 Payment of services - - - 0.050 0.058 0.066 0.076 0.250
5 Others - - - 0.800 0.920 1.058 1.217 3.995
General - - - 3.160 3.634 4.179 4.806 15.779
B Recurring Expenses - 7.455 15.030 20.997 22.771 24.810 27.152 118.216
1 Publicity / Farmers' Mobilization - 1.500 - 1.400 0.700 0.350 0.000 3.950
2 Training / Capacity Building - 3.112 - 1.520 2.280 2.280 0.760 9.952
3 Transport, Machinery & Equipments 3.907 3.191 - - - - - 7.098
4 Irrigation Work (system installations) - 58.266 300.150 852.378 1368.000 1482.000 1098.960 5159.754
C Other Expenses 3.907 66.069 300.150 855.298 1370.980 1484.630 1099.720 5180.754
Sub-Total 3.907 76.589 326.248 912.748 1430.404 1546.266 1163.887 5460.048
Physical & Price Contingencies - - - 45.637 71.520 77.313 58.194 252.665
Total Expenses 3.907 76.589 326.248 958.385 1501.924 1623.579 1222.081 5712.713
Province's Share - 3.834 60.030 155.522 249.600 270.400 200.512 939.898
67
Annexure-5F
Detailed Budget Break-up of PPIU Sindh including 23 District OFWM Offices
(Million Rupees)
S
Particular Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 Total
#
1 Salaries & Allowances - - - 22.477 22.585 22.694 22.802 90.559
2 Honorarium - - - 0.159 0.206 0.268 0.345 0.978
3 Medical Charges - - - 0.300 0.300 0.300 0.300 1.200
A Establishment Expenses - 9.101 10.388 22.936 23.091 23.262 23.447 112.226
1 Transport - - - 1.300 1.495 1.719 1.977 6.491
2 Machinery & Equipment - - - 0.070 0.081 0.093 0.106 0.350
3 Furniture & Fixture - - - 0.040 0.046 0.053 0.061 0.200
4 Others - - - 0.050 0.058 0.066 0.076 0.250
Repair & Maintenance - - - 1.460 1.679 1.931 2.220 7.290
1 Traveling Allowances - - - 3.865 3.865 3.865 3.865 15.460
2 Transportation of Goods - - - 0.025 0.029 0.033 0.038 0.125
3 P.O.L. for Government Vehicles - - - 3.900 4.418 5.013 5.697 19.027
4 Others - - - 0.150 0.150 0.150 0.150 0.600
Transportation - - - 7.940 8.461 9.061 9.750 35.212
1 Postage & Telegraph - - - 0.270 0.305 0.344 0.390 1.308
2 Telephone & T/Calls - - - 1.560 1.560 1.560 1.560 6.240
3 Electronic Communication - - - 0.024 0.024 0.024 0.024 0.096
4 Courier and pilot services - - - 0.050 0.050 0.050 0.050 0.200
5 Others - - - 0.100 0.100 0.100 0.100 0.400
Communication - - - 2.004 2.039 2.078 2.124 8.244
1 Gas - - - 0.072 0.083 0.095 0.110 0.360
2 Water - - - 0.036 0.041 0.048 0.055 0.180
3 Electricity - - - 0.100 0.115 0.132 0.152 0.499
4 Others - - - 0.100 0.115 0.132 0.152 0.499
Utilities - - - 0.308 0.354 0.407 0.468 1.538
1 Rent of Office Building - - - 0.400 0.440 0.484 0.532 1.856
2 Rate & Taxes - - - 0.050 0.058 0.066 0.076 0.250
3 Rent of Machinery/Equipment - - - 0.050 0.058 0.066 0.076 0.250
4 Others - - - 0.100 0.115 0.132 0.152 0.499
Occupancy Charges - - - 0.600 0.670 0.749 0.837 2.855
1 Office Stationary - - - 1.500 1.725 1.984 2.281 7.490
2 Newspapers, Books, Periodicals - - - 0.015 0.017 0.020 0.023 0.075
3 Uniform & Liveries - - - 0.015 0.017 0.020 0.023 0.075
4 Payment of services - - - 0.050 0.058 0.066 0.076 0.250
5 Others - - - 0.800 0.920 1.058 1.217 3.995
General - - - 2.380 2.737 3.148 3.620 11.884
B Recurring Expenses - 15.363 4.725 14.692 15.940 17.373 19.019 87.112
1 Publicity / Farmers' Mobilization - 2.716 - 1.400 0.700 0.350 - 5.166
2 Training / Capacity Building - 0.581 - 0.760 1.520 1.520 0.760 5.141
3 Transport, Machinery & Equipments - 24.461 5.020 - - - - 29.481
4 Irrigation Work (system installations) - 40.524 116.685 472.701 912.000 883.500 655.500 3080.910
C Other Expenses - 68.282 121.705 474.861 914.220 885.370 656.260 3120.698
Sub-Total - 92.746 136.818 512.489 953.251 926.005 698.726 3320.036
Physical & Price Contingencies - - - 25.624 47.663 46.300 34.936 154.524
Total Expenses - 92.746 136.818 538.114 1000.914 972.305 733.662 3474.559
Province's Share - - 23.337 86.247 166.400 161.200 119.600 556.784
68
Annexure-5G
Detailed Budget Break-up of PPIU K-P including 24 District OFWM Offices
(Million Rupees)
S
Particular Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 Total
#
1 Salaries & Allowances - - - 23.197 23.305 23.414 23.522 93.439
2 Honorarium - - - 0.159 0.206 0.268 0.345 0.978
3 Medical Charges - - - 0.300 0.300 0.300 0.300 1.200
A Establishment Expenses 1.877 11.036 20.560 23.656 23.811 23.982 24.167 129.090
1 Transport - - - 1.350 1.553 1.785 2.053 6.741
2 Machinery & Equipment - - - 0.070 0.081 0.093 0.106 0.350
3 Furniture & Fixture - - - 0.040 0.046 0.053 0.061 0.200
4 Others - - - 0.050 0.058 0.066 0.076 0.250
Repair & Maintenance - - - 1.510 1.737 1.997 2.297 7.540
1 Traveling Allowances - - - 4.020 4.020 4.020 4.020 16.080
2 Transportation of Goods - - - 0.025 0.029 0.033 0.038 0.125
3 P.O.L. for Government Vehicles - - - 4.050 4.590 5.211 5.925 19.776
4 Others - - - 0.150 0.150 0.150 0.150 0.600
Transportation - - - 8.245 8.789 9.414 10.133 36.581
1 Postage & Telegraph - - - 0.280 0.316 0.357 0.405 1.358
2 Telephone & T/Calls - - - 1.620 1.620 1.620 1.620 6.480
3 Electronic Communication - - - 0.024 0.024 0.024 0.024 0.096
4 Courier and pilot services - - - 0.050 0.050 0.050 0.050 0.200
5 Others - - - 0.100 0.100 0.100 0.100 0.400
Communication - - - 2.074 2.110 2.151 2.199 8.534
1 Gas - - - 0.072 0.083 0.095 0.110 0.360
2 Water - - - 0.036 0.041 0.048 0.055 0.180
3 Electricity - - - 0.100 0.115 0.132 0.152 0.499
4 Others - - - 0.100 0.115 0.132 0.152 0.499
Utilities - - - 0.308 0.354 0.407 0.468 1.538
1 Rent of Office Building - - - 0.400 0.440 0.484 0.532 1.856
2 Rate & Taxes - - - 0.050 0.058 0.066 0.076 0.250
3 Rent of Machinery/Equipment - - - 0.050 0.058 0.066 0.076 0.250
4 Others - - - 0.100 0.115 0.132 0.152 0.499
Occupancy Charges - - - 0.600 0.670 0.749 0.837 2.855
1 Office Stationary - - - 1.560 1.794 2.063 2.373 7.790
2 Newspapers, Books, Periodicals - - - 0.015 0.017 0.020 0.023 0.075
3 Uniform & Liveries - - - 0.015 0.017 0.020 0.023 0.075
4 Payment of services - - - 0.050 0.058 0.066 0.076 0.250
5 Others - - - 0.800 0.920 1.058 1.217 3.995
General - - - 2.440 2.806 3.227 3.711 12.184
B Recurring Expenses 0.378 4.857 6.036 15.177 16.465 17.945 19.645 80.503
1 Publicity / Farmers' Mobilization - - - 1.400 0.700 0.350 - 2.450
2 Training / Capacity Building - 0.060 - 0.760 1.520 1.520 0.570 4.430
3 Transport, Machinery & Equipments 4.771 20.198 0.329 - - - - 25.298
4 Irrigation Work (system installations) - 34.122 342.405 391.818 627.000 684.000 342.000 2421.345
6 Rewards and Incentives - 1.217 - - - - - 1.217
C Other Expenses 4.771 55.597 342.734 393.978 629.220 685.870 342.570 2454.740
Sub-Total 7.026 71.490 369.330 432.811 669.497 727.797 386.382 2664.333
Physical & Price Contingencies - - - 21.641 33.475 36.390 19.319 110.824
Total Expenses 7.026 71.490 369.330 454.452 702.972 764.187 405.701 2775.157
Province's Share - - 68.481 71.490 114.400 124.800 62.400 441.571
69
Annexure-5H
Detailed Budget Break-up of PPIU Balochistan including 30 District OFWM Offices
(Million Rupees)
S
Particular Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 Total
#
1 Salaries & Allowances - - - 26.557 26.665 26.774 26.882 106.879
2 Honorarium - 0.159 0.206 0.268 0.345 0.978
3 Medical Charges - 0.300 0.300 0.300 0.300 1.200
A Establishment Expenses - 6.067 10.275 27.016 27.171 27.342 27.527 125.399
1 Transport - - - 1.650 1.898 2.182 2.509 8.239
2 Machinery & Equipment - - - 0.070 0.081 0.093 0.106 0.350
3 Furniture & Fixture - - - 0.040 0.046 0.053 0.061 0.200
4 Others - - - 0.050 0.058 0.066 0.076 0.250
Repair & Maintenance - - - 1.810 2.082 2.394 2.753 9.038
1 Traveling Allowances - - - 5.150 5.150 5.150 5.150 20.600
2 Transportation of Goods - - - 0.025 0.029 0.033 0.038 0.125
3 P.O.L. for Government Vehicles - - - 5.050 5.725 6.501 7.394 24.670
4 Others - - - 0.150 0.150 0.150 0.150 0.600
Transportation - - - 10.375 11.054 11.834 12.732 45.995
1 Postage & Telegraph - - - 0.340 0.385 0.437 0.496 1.658
2 Telephone & T/Calls - - - 1.980 1.980 1.980 1.980 7.920
3 Electronic Communication - - - 0.024 0.024 0.024 0.024 0.096
4 Courier and pilot services - - - 0.050 0.050 0.050 0.050 0.200
5 Others - - - 0.100 0.100 0.100 0.100 0.400
Communication - - - 2.494 2.539 2.591 2.650 10.274
1 Gas - - - 0.072 0.083 0.095 0.110 0.360
2 Water - - - 0.036 0.041 0.048 0.055 0.180
3 Electricity - - - 0.100 0.115 0.132 0.152 0.499
4 Others - - - 0.100 0.115 0.132 0.152 0.499
Utilities - - - 0.308 0.354 0.407 0.468 1.538
1 Rent of Office Building - - - 0.400 0.440 0.484 0.532 1.856
2 Rate & Taxes - - - 0.050 0.058 0.066 0.076 0.250
3 Rent of Machinery/Equipment - - - 0.050 0.058 0.066 0.076 0.250
4 Others - - - 0.100 0.115 0.132 0.152 0.499
Occupancy Charges - - - 0.600 0.670 0.749 0.837 2.855
1 Office Stationary - - - 1.920 2.208 2.539 2.920 9.587
2 Newspapers, Books, Periodicals - - - 0.015 0.017 0.020 0.023 0.075
3 Uniform & Liveries - - - 0.015 0.017 0.020 0.023 0.075
4 Payment of services - - - 0.050 0.058 0.066 0.076 0.250
5 Others - - - 0.800 0.920 1.058 1.217 3.995
General - - - 2.800 3.220 3.703 4.258 13.981
B Recurring Expenses - 10.591 4.457 18.387 19.918 21.678 23.698 98.730
1 Publicity / Farmers' Mobilization - 1.379 - 1.400 0.700 0.350 - 3.829
2 Training / Capacity Building - - - 1.140 2.280 1.140 0.760 5.320
3 Transport, Machinery & Equipments 5.776 52.551 0.256 - - - - 58.583
4 Irrigation Work (system installations) - 3.036 - 453.378 684.000 798.000 570.000 2508.414
C Other Expenses 5.776 56.966 0.256 455.918 686.980 799.490 570.760 2576.146
Sub-Total 5.776 73.624 14.988 501.321 734.070 848.509 621.986 2800.274
Physical & Price Contingencies - - - 25.066 36.703 42.425 31.099 135.294
Total Expenses 5.776 73.624 14.988 526.387 770.773 890.935 653.085 2935.568
Province's Share - - - 82.722 124.800 145.600 104.000 457.122
70
Annexure-5 I
Detailed Budget Break-up of PIU AJK including 10 District Offices
(Million Rupees)
S
Particular Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 Total
#
1 Salaries & Allowances - - - 9.289 9.464 9.628 9.797 38.178
2 Honorarium - - - 0.159 0.206 0.268 0.345 0.978
3 Medical Charges - - - 0.300 0.300 0.300 0.300 1.200
A Establishment Expenses 0.365 1.215 2.620 9.748 9.970 10.196 10.442 44.556
1 Transport - - - 0.650 0.748 0.860 0.989 3.246
2 Machinery & Equipment - - - 0.070 0.081 0.093 0.106 0.350
3 Furniture & Fixture - - - 0.040 0.046 0.053 0.061 0.200
4 Others - - - 0.050 0.058 0.066 0.076 0.250
Repair & Maintenance - - - 0.810 0.932 1.071 1.232 4.045
1 Traveling Allowances - - - 1.800 1.800 1.800 1.800 7.200
2 Transportation of Goods - - - 0.025 0.029 0.033 0.038 0.125
3 P.O.L. for Government Vehicles - - - 1.900 2.125 2.384 2.681 9.090
4 Others - - - 0.150 0.150 0.150 0.150 0.600
Transportation - - - 3.875 4.104 4.367 4.669 17.015
1 Postage & Telegraph - - - 0.140 0.155 0.172 0.192 0.659
2 Telephone & T/Calls - - - 0.780 0.780 0.780 0.780 3.120
3 Electronic Communication - - - 0.024 0.024 0.024 0.024 0.096
4 Courier and pilot services - - - 0.050 0.050 0.050 0.050 0.200
5 Others - - - 0.100 0.100 0.100 0.100 0.400
Communication - - - 1.094 1.109 1.126 1.146 4.475
1 Gas - - - 0.072 0.083 0.095 0.110 0.360
2 Water - - - 0.036 0.041 0.048 0.055 0.180
3 Electricity - - - 0.100 0.115 0.132 0.152 0.499
4 Others - - - 0.100 0.115 0.132 0.152 0.499
Utilities - - - 0.308 0.354 0.407 0.468 1.538
1 Rent of Office Building - - - 0.400 0.440 0.484 0.532 1.856
2 Rate & Taxes - - - 0.050 0.058 0.066 0.076 0.250
3 Rent of Machinery/Equipment - - - 0.050 0.058 0.066 0.076 0.250
4 Others - - - 0.100 0.115 0.132 0.152 0.499
Occupancy Charges - - - 0.600 0.670 0.749 0.837 2.855
1 Office Stationary - - - 0.720 0.828 0.952 1.095 3.595
2 Newspapers, Books, Periodicals - - - 0.015 0.017 0.020 0.023 0.075
3 Uniform & Liveries - - - 0.015 0.017 0.020 0.023 0.075
4 Payment of services - - - 0.050 0.058 0.066 0.076 0.250
5 Others - - - 0.800 0.920 1.058 1.217 3.995
General - - - 1.600 1.840 2.116 2.433 7.989
B Recurring Expenses - 1.003 - 8.287 9.008 9.836 10.786 38.920
1 Publicity / Farmers' Mobilization - - - 1.050 0.525 0.263 - 1.838
2 Training / Capacity Building - - - 0.380 0.760 0.380 - 1.520
3 Transport, Machinery & Equipments 1.104 2.005 0.006 - - - - 3.115
4 Irrigation Work (system installations) - 1.848 - 129.504 171.000 267.900 114.000 684.252
C Other Expenses 1.104 3.853 0.006 130.934 172.285 268.543 114.000 690.725
Sub-Total 1.469 6.071 2.626 148.969 191.264 288.574 135.228 774.201
Physical & Price Contingencies - - - 7.448 9.563 14.429 6.761 38.202
Total Expenses 1.469 6.071 2.626 156.417 200.827 303.003 141.989 812.402
AJK Share - - - 23.629 31.200 48.880 20.800 124.509
71
Annexure-5 J
Detailed Budget Break-up of PIU FATA including 10 District Offices
(Million Rupees)
S
Particular Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 Total
#
1 Salaries & Allowances - - - 9.201 9.370 9.540 9.709 37.820
2 Honorarium - - - 0.159 0.206 0.268 0.345 0.978
3 Medical Charges - - - 0.300 0.300 0.300 0.300 1.200
A Establishment Expenses - - - 9.660 9.876 10.108 10.354 39.998
1 Transport - - - 0.500 0.575 0.661 0.760 2.497
2 Machinery & Equipment - - - 0.070 0.081 0.093 0.106 0.350
3 Furniture & Fixture - - - 0.040 0.046 0.053 0.061 0.200
4 Others - - - 0.050 0.058 0.066 0.076 0.250
Repair & Maintenance - - - 0.660 0.759 0.873 1.004 3.296
1 Traveling Allowances - - - 1.335 1.335 1.335 1.335 5.340
2 Transportation of Goods - - - 0.025 0.029 0.033 0.038 0.125
3 P.O.L. for Government Vehicles - - - 1.450 1.608 1.789 1.997 6.843
4 Others - - - 0.150 0.150 0.150 0.150 0.600
Transportation - - - 2.960 3.121 3.307 3.520 12.908
1 Postage & Telegraph - - - 0.110 0.121 0.133 0.146 0.510
2 Telephone & T/Calls - - - 0.600 0.600 0.600 0.600 2.400
3 Electronic Communication - - - 0.024 0.024 0.024 0.024 0.096
4 Courier and pilot services - - - 0.050 0.050 0.050 0.050 0.200
5 Others - - - 0.100 0.100 0.100 0.100 0.400
Communication - - - 0.884 0.895 0.907 0.920 3.606
1 Gas - - - 0.072 0.083 0.095 0.110 0.360
2 Water - - - 0.036 0.041 0.048 0.055 0.180
3 Electricity - - - 0.100 0.115 0.132 0.152 0.499
4 Others - - - 0.100 0.115 0.132 0.152 0.499
Utilities - - - 0.308 0.354 0.407 0.468 1.538
1 Rent of Office Building - - - 0.400 0.440 0.484 0.532 1.856
2 Rate & Taxes - - - 0.050 0.058 0.066 0.076 0.250
3 Rent of Machinery/Equipment - - - 0.050 0.058 0.066 0.076 0.250
4 Others - - - 0.100 0.115 0.132 0.152 0.499
Occupancy Charges - - - 0.600 0.670 0.749 0.837 2.855
1 Office Stationary - - - 0.540 0.621 0.714 0.821 2.696
2 Newspapers, Books, Periodicals - - - 0.015 0.017 0.020 0.023 0.075
3 Uniform & Liveries - - - 0.015 0.017 0.020 0.023 0.075
4 Payment of services - - - 0.050 0.058 0.066 0.076 0.250
5 Others - - - 0.800 0.920 1.058 1.217 3.995
General - - - 1.420 1.633 1.878 2.160 7.091
B Recurring Expenses - - - 6.832 7.432 8.120 8.909 31.293
1 Publicity / Farmers' Mobilization - - - 1.050 0.525 0.263 - 1.838
2 Training / Capacity Building - - - 0.380 0.760 0.380 - 1.520
3 Transport, Machinery & Equipments 1.104 - - - - - - 1.104
4 Irrigation Work (system installations) - 0.462 - 68.001 114.000 136.800 59.850 379.113
C Other Expenses 1.104 0.462 - 69.431 115.285 137.443 59.850 383.575
Sub-Total 1.104 0.462 - 85.923 132.593 155.670 79.113 454.865
Physical & Price Contingencies - - - 4.296 6.630 7.784 3.956 22.665
Total Expenses 1.104 0.462 - 90.219 139.223 163.454 83.069 477.530
72
Annexure-5K
Detailed Budget Break-up of PIU G-B including 7 District Offices
(Million Rupees)
S
Particular Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 Total
#
1 Salaries & Allowances - - - 8.797 8.905 9.014 9.122 35.839
2 Honorarium - - - 0.159 0.206 0.268 0.345 0.978
3 Medical Charges - - - 0.300 0.300 0.300 0.300 1.200
A Establishment Expenses 0.987 2.429 4.047 9.256 9.411 9.582 9.767 45.480
1 Transport - - - 0.500 0.575 0.661 0.760 2.497
2 Machinery & Equipment - - - 0.070 0.081 0.093 0.106 0.350
3 Furniture & Fixture - - - 0.040 0.046 0.053 0.061 0.200
4 Others - - - 0.050 0.058 0.066 0.076 0.250
Repair & Maintenance - - - 0.660 0.759 0.873 1.004 3.296
1 Traveling Allowances - - - 1.335 1.335 1.335 1.335 5.340
2 Transportation of Goods - - - 0.025 0.029 0.033 0.038 0.125
3 P.O.L. for Government Vehicles - - - 1.450 1.608 1.789 1.997 6.843
4 Others - - - 0.150 0.150 0.150 0.150 0.600
Transportation - - - 2.960 3.121 3.307 3.520 12.908
1 Postage & Telegraph - - - 0.110 0.121 0.133 0.146 0.510
2 Telephone & T/Calls - - - 0.600 0.600 0.600 0.600 2.400
3 Electronic Communication - - - 0.024 0.024 0.024 0.024 0.096
4 Courier and pilot services - - - 0.050 0.050 0.050 0.050 0.200
5 Others - - - 0.100 0.100 0.100 0.100 0.400
Communication - - - 0.884 0.895 0.907 0.920 3.606
1 Gas - - - 0.072 0.083 0.095 0.110 0.360
2 Water - - - 0.036 0.041 0.048 0.055 0.180
3 Electricity - - - 0.100 0.115 0.132 0.152 0.499
4 Others - - - 0.100 0.115 0.132 0.152 0.499
Utilities - - - 0.308 0.354 0.407 0.468 1.538
1 Rent of Office Building - - - 0.400 0.440 0.484 0.532 1.856
2 Rate & Taxes - - - 0.050 0.058 0.066 0.076 0.250
3 Rent of Machinery/Equipment - - - 0.050 0.058 0.066 0.076 0.250
4 Others - - - 0.100 0.115 0.132 0.152 0.499
Occupancy Charges - - - 0.600 0.670 0.749 0.837 2.855
1 Office Stationary - - - 0.540 0.621 0.714 0.821 2.696
2 Newspapers, Books, Periodicals - - - 0.015 0.017 0.020 0.023 0.075
3 Uniform & Liveries - - - 0.015 0.017 0.020 0.023 0.075
4 Payment of services - - - 0.050 0.058 0.066 0.076 0.250
5 Others - - - 0.800 0.920 1.058 1.217 3.995
General - - - 1.420 1.633 1.878 2.160 7.091
B Recurring Expenses 1.041 1.663 0.850 6.832 7.432 8.120 8.909 34.847
1 Publicity / Farmers' Mobilization - 0.177 - 1.050 0.525 0.263 - 2.015
2 Training / Capacity Building - 0.050 - 0.380 0.760 0.190 - 1.380
3 Transport, Machinery & Equipments 9.477 0.016 0.031 - - - - 9.524
4 Irrigation Work (system installations) - 4.950 - 126.825 171.000 267.900 114.000 684.675
5 Rewards and Incentives - 0.096 - - - - - 0.096
C Other Expenses 9.477 5.289 0.031 128.255 172.285 268.353 114.000 697.690
Sub-Total 11.505 9.381 4.928 144.343 189.128 286.054 132.676 778.016
Physical & Price Contingencies - - - 7.217 9.456 14.303 6.634 37.610
Total Expenses 11.505 9.381 4.928 151.560 198.585 300.357 139.310 815.626
73
Annexure-5L
Detailed Budget Break-up of ICT, Islamabad
(Million Rupees)
S# Particular Y-1 Y-2 Y-3 Y-5 Y-5 Y-6 Y-7 Total
1 Salaries & Allowances - - - 0.720 0.720 0.720 0.720 2.880
A Establishment Expenses - - - 0.720 0.720 0.720 0.720 2.880
1 Transport - - - 0.050 0.058 0.066 0.076 0.250
Repair & Maintenance - - - 0.050 0.058 0.066 0.076 0.250
1 Traveling Allowances - - - 0.150 0.150 0.150 0.150 0.600
2 P.O.L. for Government Vehicles - - - 0.150 0.173 0.198 0.228 0.749
Transportation - - - 0.300 0.323 0.348 0.378 1.349
1 Postage & Telegraph - - - 0.010 0.012 0.013 0.015 0.050
2 Telephone & T/Calls - - - 0.060 0.060 0.060 0.060 0.240
Communication - - - 0.070 0.072 0.073 0.075 0.290
1 Office Stationary - - - 0.060 0.069 0.079 0.091 0.300
General - - - 0.060 0.069 0.079 0.091 0.300
B Recurring Expenses - - - 0.480 0.521 0.567 0.621 2.188
2 Farmers' Training - - - 0.000 0.190 0.000 0.000 0.190
4 Irrigation Work (System Installations) - - - 5.700 22.800 17.100 0.000 45.600
C Other Expenses - - - 5.700 22.990 17.100 0.000 45.790
Sub-Total - - - 6.900 24.231 18.387 1.341 50.858
Physical & Price Contingencies - - - 0.345 1.212 0.919 0.067 2.543
Total Expenses - - - 7.245 25.442 19.306 1.408 53.401
74
Annexure-5M
Budget Break-up of each of the 138 District Offices
(Million Rupees)
S# Particular Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 Total
1 Salaries & Allowances - - - - - - - -
A Establishment Expenses - - - - - - - -
1 Transport - - - 0.050 0.058 0.066 0.076 0.250
Repair & Maintenance - - - 0.050 0.058 0.066 0.076 0.250
1 Traveling Allowances - - - 0.155 0.155 0.155 0.155 0.620
P.O.L. for Government
2 Vehicles - - - 0.150 0.173 0.198 0.228 0.749
Transportation - - - 0.305 0.328 0.353 0.383 1.369
1 Postage & Telegraph - - - 0.010 0.012 0.013 0.015 0.050
2 Telephone & T/Calls - - - 0.060 0.060 0.060 0.060 0.240
Communication - - - 0.070 0.072 0.073 0.075 0.290
1 Office Stationary - - - 0.060 0.069 0.079 0.091 0.300
General - - - 0.060 0.069 0.079 0.091 0.300
B Recurring Expenses - - - 0.485 0.526 0.572 0.626 2.208
Note: Establishement expenses are variable for each province/area due variation in number of professional
to be engaged
75
Annexure-6
Project Financial Flow Mechanism
PARC-NPD
NPD-FPMU
A/C No. 1 AGPR/Agri. NPD-
PSC Department. NPD-
AJK, FATA, PDMTU, RPMUs
G.B PARC
Provinces
Banks
Banks
SSCs
SSCs
Farmers/
Beneficiaries
Farmers/
Beneficiaries
76
Organizational Setup of the HEIS Project Annexure-7A
Federal Steering Committee
Pakistan Agricultural Research Council
National Project Directorate (NPD)
Federal Project Project Design, Monitoring
Management Unit Testing and Training Unit,
(FPMU) (PDMTU)
PPIU- Punjab *
DWMO
(Lahore)
36 Districts Design Training and Monitoring and Testing and
Verification and Capacity Evaluation Quality Control
PPIU-Sindh DWMO
(Hyderabad) Approval Section Building Section Section Section
23 Districts
PPIU-K-P DWMO RPMU (Karachi)
(Peshawar) 24 Districts
RPMU (Sukkur)
PPIU-Balochistan DWMO
(Quetta) 30 Districts
RPMU (DG Khan)
PIU-G-B DWMO
(Gilgit) 07 Districts RPMU (Faisalabad)
PIU-AJK DWMO RPMU (Islamabad)
(Muzafarabad) 10 Districts
RPMU (Mardan)
PIU – FATA DWMO
07 Districts RPMU (DI Khan)
*
DWMO District Water Management Office (DWMO) RPMU (Quetta)
ICT
77
NPD = National Project Directorate
FPMU = Federal Project Management Unit
PDMTU = Project Design, Monitoring, Testing and Training Unit
PPIU = Provincial Project Implementation Unit
PIU = Project Implementation Unit
RPMU = Regional Project Monitoring Unit under the PDMTU
Districts Covered by Each RPMU under the PDMTU:
1. RPMU Islamabad: Islamabad, Rawalpindi, Jhelum, Chakwal, Attock, Sargodha, Khushab, M.B.Din, Gujrat, Haripur, Abbottabad, Mansehra
Batgram, Gilgit, Skardu, Diamir, Ghizar, Asore, Ghanchi, Hunza, Muzaffarabad, Mirpur, Neelum, Bagh, Punch, Sudhnuti, Kotli, Bhimber,
Halliian, Havaile (Kahuta)
2. RPMU Faisalabad: Lahore, Okara, Kasur, Pakpattan, Sahiwal, Sheikhupura, Hafizabad, Gujranwala, Sialkot, Narowal, Faisalabad, T.T.Sing,
Jhang, Khanewal, Vehari
3. RPMU D.G. Khan: D.G. Khan, Rahim Yar Khan, Bahawalpur, Bahawalnagar, Multan, Lodhran, Layyah, Rajanpur, Muzaffargrah, Dera
Bugti Kohlu, Barkhan, Musakhail
4. RPMU Sukkur: Kashmor, Jaccobabad, Shikharpur, Larkana, Kumbar-Shahdadkot, Ghotki, Sukkur, Khairpur, Nowshero Feroze, Nawabshah,
Sanghar, Matiari, T. Allah Yar, T. M. Khan, Umerkot, Mirpur Khas, Tharparkar, Jaffarabad, Nasirabad, Jhal Magsi,
5. RPMU Karachi: Karachi, Thatta, Badin Hyderabad, Dadu, Jamshoro, Lasbella, Khuzdar, Awaran, Gwadar, Kech, Panjgoor, Turbat
6. RPMU Mardan: Mardan, Peshawar, Kohat, , Malakand, Buner, Nowshera, Sawat, Shangla, Chitral, Charsada, Sawabi, Upper Dir, Lower Dir,
Kohistan, Bajour, Mohmand Agency, Khyber, Aurakzai,
7. RPMU D.I.Khan: D.I.Khan, Bannu, Lakki Marwat, Tank, Hangu, Karak, S. Waziristan, N. Waziristan, Kurrum, Zhob, Shirani, Mianwali,
Bhakkar,
8. RPMU Quetta: Quetta, Ziarat, Pishin, Killa Abdullah, Killa Saifullah, Loralai, Harnai, Sibi, Bolan, Mastung, Naushki, Kalat, Kharan,
Washuk, Chaghai,
78
Annexure-7B
Organizational Setup of National Project Directorate and Federal Project Management Unit
National Project Director
BS-20
Director
Federal Project Management Unit
BS-20
Dy. Director Irrigation Irrigation Dy. Director
Technical Engineer Engineer Finance
(B-18) (GB, FATA, (Provinces) (B-18)
AJK, ICT) (B-18
(B-18
Support
Staff
*
Existing Monitoring Engineers working at FPMU would be
adjusted against the posts of Irrigation Engineers
79
Annexure-7C
Organizational Setup of Project Design Verification, Monitoring, Testing and Training Unit
Director
NPD-PDMTU
BS-20
Account Officer &
Support Staff
Head Head Head Head
Design Verification Testing & Training & Monitoring &
& Approval Section Quality Control Capacity Building Evaluation
(BS-19) (BS-19) (BS-19) (BS-19)
Design Engineer Irrigation System Training Monitoring
Punjab Testing Engineer Officer Engineer
(BS-18) (BS-18) (BS-18) (BS-18)
Design Engineer
Sindh
(BS-18)
Support Hydraulic Testing Support Support Support
Engineer
Staff Staff Staff Staff
Design Engineer (BS-18)
Balochistan
(BS-18)
Design Engineer Material Testing
K.P. & Special Engineer
Areas (BS-18)
(BS-18)
80
Annexure-7D
Organizational Setup of Each Regional Project Monitoring Unit
Regional Director
RPMU
(B-19)
Monitoring
Engineer
(B-18)
2 Nos.
Support
Staff
81
Annexure-7E
Organizational Setup of Provincial Project Implementation Unit
Director General
OFWM/AEWM*
Provincial Project Director
Punjab/Sindh/K-P/Balochistan
(BS-19)
Irrigation Engineer
(BS-18)
Executive District
Officer (Agri)
Training Engineer
District Officer (Irrigation)
(WM) (BS-18)
Dy. District Officer
(WM)
Account Officer
(BS-17)
WMO
Asstt. Agri. Engr.
Support Staff
Farmers /
Beneficiaries
* AEWM stands for Agriculture Engineering & Water Management for Sindh Province
82
Annexure-7F
Organizational Setup of Project Implementation Unit for AJK, G-B, FATA
DG Agriculture (AJK)/
Director Agriculture (FATA)/
Director Agri. /WM (G-B)
Project Director
(AJK/FATA/G-B)
(BS-19)
Assistant Engineer Irrigation Engineer
(Irrigation) (BS-18)
Agriculture Officer Training Engineer
(Horticulture) (Irrigation)
(BS-18)
Farmers /
Beneficiaries Account Officer
(BS-17)
Support Staff
Note: [For all these entities i.e. AJK, FATA and GB, instead of employing regular staff for HEISs Project full time Project staff will be recruited as the OFWM or
Irrigation Directorates are either not there or in infancy. 2 Assistant Engineer (Irrigation) and 2 Agriculture Officer (Horticulture)]
83
Annexure-8
84
Annexure-9A
Manpower Distribution and Requirements as per Revised Project
S# Name of Position PARC FPMU PDMTU RPMUs Punjab Sindh KPK Bal AJK FATA G-B Total
1 National Project Director (B-21) 1 - - - - - - - - - - 1
2 Project Director (B-20 / Package) - 1 1 - - - - - - - - 2
3 Chief Engineer (B-20 / Package) - - 1 - - - - - - - - 1
4 Deputy Project Director (B-19 / Package) - 1 - - - - - - - - - 1
5 Head Section (B-19 / Package) - - 4 - - - - - - - - 4
6 Director (B-19 / Package) - - - 8 - - - - - - - 8
7 Provincial Project Director (B-19 / Package) - - - - 1 1 1 1 1 1 1 7
8 Training Engineer (Irrigation) ( B-18 / Package) - - 1 - 1 1 1 1 1 1 1 8
9 Irrigation Engineer (B-18 / Package) - 2 - - 1 1 1 1 1 1 1 9
10 Design Engineer (B-18/Package) - - 4 - - - - - - - - 4
11 Monitoring Engineer (B-18/Package) - - 1 16 - - - - - - - 17
12 Testing Engineer (B-18/Package) - - 3 - - - - - - - - 3
13 Deputy Director, Admn (B-18 / Package) - 1 - - - - - - - - - 1
14 Deputy Director, Finance (B-18/Package) - 1 - - - - - - - - - 1
15 Accounts Officer (B-17 / Package) - 1 1 - 1 1 1 1 1 1 1 9
16 Assistant Engineer (Water) (B-17/Package) - - - - - - - - 3 3 3 9
17 Agriculture Officer (Horticulture) (B-17/Package) - - - - - - - - 1 1 1 3
18 Accountant (B-16 / Package) - 1 - - - - - - - - - 1
19 PA to PD (B-16 / Package) - 1 1 - - - - - - - - 2
20 Account Assistant (B-15 / Package - 1 - 8 1 1 1 1 1 1 1 16
19 Draftsman/AutoCAD Operator (B-15 / Package) - - 1 - - - - - - - - 1
20 Computer Assistant (B-15 / Package) - 1 6 - - - - - - - - 7
21 Office Assistant (B-15/Package) - 3 5 8 - - - - - - - 16
22 Technician (Mechanical) (B-14/ Package) - - 2 - - - - - - - - 2
23 Technician (Electrical) (B-14/ Package) - - 1 - - - - - - - - 1
24 Technician (Chemical) (B-14/ Package) - - 1 - - - - - - - - 1
25 Computer Operator (B-12 / Package) - 3 - - 3 3 3 3 3 3 3 24
26 Plumber/Fitter (B-8 / Package) - - 2 - - - - - - - - 2
27 Dispatch Rider (B-5 / Package) - 1 1 - - - - - - - - 2
28 Vehicle Driver (B-5 / Package) - 6 6 24 3 3 3 3 3 3 3 57
29 Naib Qasid (B-1 / Package) - 6 8 16 3 3 3 3 3 3 4 52
30 Chowkidar (B-1 / Package) - 3 3 16 - - - - 3 3 3 31
31 Sweeper (B-1 / Package) - 2 2 8 - - - - 1 1 1 15
Total Project Staff 1 35 55 104 14 14 14 14 22 22 23 318
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Annexure-9B
Existing Staff of the Agriculture Department and District OFWM Offices to be Engaged in Project Activities
S# Name of Position Punjab Sindh KPK Balochistan AJK FATA G-B ICT Total
1 Provincial Project Director (DG OFWM/) 1 1 1 1 - - - - 4
Project Director (Director Irrigation/Water
2 Management) - - - - 1 1 1 1 4
3 Director Training (Training Institute) 1 1 1 1 - - - - 4
4 EDO 36 23 24 30 - - - - 113
5 DO (WM) 36 23 24 30 - - - - 113
6 DDO / WMO / AAE 180 92 96 120 - - - - 488
Total 254 140 146 182 1 1 1 1 726
Note: Above Officers/officials will get their regular salaries and allowances from their parent departments/source. However, for looking
after the additional duty of the project, they will be paid Additional Charge Allowance at the rate of 20% of the basis pay scale
subject to a maximum of Rs. 6,000 per month or as revised from time to time.
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Annexure-9C
Manpower Requirements as per Original Project
Proposed Project Staff Requirements (Nos.)
Provinces/ No. of Officers Other Staff Total
Sr.
Other Regional
No. PCIU PCIU Total
Areas PCIU
PMU PMU PCIU PMU
H. Off. Reg.Off H. Off. Reg.Off
1. Punjab 3 10 12 10 21 30 29 73 39 112
2. Sindh 2 9 8 9 20 20 25 57 34 91
3. K-P 2 9 8 9 20 20 25 57 34 91
4. Balochistan 3 11 12 10 21 30 30 74 40 114
5. AJK 1 7 15 22 0 22
6. FATA 1 7 16 23 0 23
7. G-B 1 7 16 23 0 23
8. MINFAL 12 8 25 15 37 23 60
Grand Total 72 40 46 154 100 124 366 170 536
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Annexure-9D
Manpower Engaged by the PIA Consultants in the Original Project
S. No. Category Number Man Months
1. Team Leader 1 60
2. Deputy Team Leader (Senior Irrigation Engineers) 4 240
3. Certified Irrigation Designers 9 540
4. Field Supervisors 20 1200
5. Horticulturists 1 60
6. Entomologist 1 60
7. Soil Scientists 1 60
8. Irrigation Agronomists 2 120
9. Training Specialist 1 12
10. Supporting staff 20 1200
The Cost of consultancy has been met out of Government of Pakistan’s share. The Consultant worked under the
supervision of MINFAL/National Project Director/NPD of PCIU.
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