ADB, Pakistan sign $513m loans for irrigation

The Asian Development Bank (ADB) and the Government of Pakistan Wednesday signed an agreement to invest $270 million in the building of a new barrage and $243 million to improve the country’s power transmission systems, the ADB said.“The new barrage will reduce water leakages and lessen flood risks in an irrigated agricultural area of about 1.2 million hectares, which will in turn help ensure prosperity for a large number of farming families,” said Werner Liepach, ADB’s Country Director for Pakistan.“Similarly, the power projects to be completed by June 2016 will augment the network and improve performance of the transmission system, which is critical to increase the overall energy efficiency and to bridge the widening energy gap in Pakistan,” he added.The new Khanki Barrage on River Chenab in central Punjab will replace the existing headwork built in 1892. The condition of this vital headwork has deteriorated over the years, threatening the water supply to a large area of irrigated plains in the Punjab province considered to be the country’s bread basket. Current estimates suggest about 447 million cubic metres of water are lost each year due to the existing barrage’s shutter gates.The new barrage will connect the Lower Chenab Canal with a new head regulator through a lead channel, ensuring a reliable flow of water to the Canal and increasing the flood-bearing capacity of the structure.The new barrage is expected to benefit two million people directly or indirectly, boosting economic activities of more than 568,000 farming families depending on the Lower Chenab Canal, where the average farm size is 2.65 ha (6.5 acres). The Khanki Barrage Project is the second tranche of a $900 million multi-tranche finance facility for the Punjab Irrigated Agriculture Improvement Program and is funded through the Asian Development Fund.The third tranche of the Power Transmission Enhancement Investment Program includes expanding of grid stations and laying new inter-provincial transmission lines to upgrade the national grid system. The MFF was approved in 2006 to invest $800 million in priority areas to improve transmission systems and help Pakistan meet its pressing energy needs.Funds for the power sector project come from ADB’s Ordinary Capital Resource loans.