Agriculture is central to the economic growth of Punjab and the incomes of the poor rural households in the province. But underperforming irrigation infrastructure and institutions constrained the productivity of irrigated agriculture that, at program appraisal, covered 8.4 million hectares, accounted for more than 26% of the provincial gross domestic product (GDP) and 66% of the national agriculture GDP, employed more than 40% of Punjab’s labor force, and used more than 90% of its water resources. To address the situation, the Punjab Irrigation Department (PID) initiated vital hydraulic structures studies in 1998, and prioritized the rehabilitation of six barrages.
Against this backdrop, the Asian Development Bank (ADB) approved a $900 million multitranche financing facility (MFF) for the Punjab Irrigated Agriculture Investment Program in December 2006. Two loans, totaling $227.8 million, were approved at the same time to finance project 1, which included the Lower Bari Doab Canal Improvement Project (LBDCIP) and the Punjab Irrigated Agriculture Project Preparation Facility (PIAPPF). Comprising tranche 4 of the MFF, an additional financing of $26.57 million was approved in December 2015 to meet the cost overruns of project 1.
The LBDCIP consisted of five components: (i) rehabilitation and upgrading (R&U) of the Balloki Barrage Complex, (ii) R&U of the Lower Bari Doab Canal (LBDC) canal network, (iii) groundwater management, (iv) on-farm water management and agriculture, and (v) institutional strengthening and operation modernization. The PIAPPF aimed to support the expeditious preparation of subsequent projects under the MFF/investment program. Along with the LBDCIP, it sought to contribute to the attainment of the MFF’s intended outcome of sustainably improving the delivery and management of water services in the LBDC command area and its of envisaged impact of promoting the province’s economic growth through increased agricultural production and farm incomes in the project area.
By loan closing in September 2017, project 1 had achieved most of its targets, although the completion and turnover of minor works continued in 2018–2019. The water delivery capacity of the upgraded LBDC was improved to the sanctioned discharge. The Balloki Barrage was upgraded to enhance flood passage. Diversion from the barrage was enhanced to sanctioned flows, and major R&U of the distribution system was completed. The groundwater management component was delivered. The on-farm water management component was likewise completed, except for a few pilot technology-demonstration activities, which were later scaled up by the government in the project command areas.
The PIAPPF design change enabled the preparation of more than $1.7 billion worth of projects, reinforcing the commitment of ADB and the government to better planning and project readiness. The LBDC operated at the maximum available diversions. Its command area received 100% of water supplies against entitlements for 2017 kharif (April to September cropping season) and 89% for 2017–2018 rabi (October to March cropping season), and 15% higher flows compared to the previous 5-year average for June–October. The LBDC delivery performance in tail reaches also improved.
Institutional changes encountered challenges. A total of 53 farmer organizations were operationalized in 2012, followed by the signing of irrigation management transfer agreements during 2012–2015. However, farmer organizations completed only one management tenure over the course of the project. This was a limited period for management change in a new and low-capacity environment.
Notwithstanding the difficulties, the irrigation management institutional structure was successfully transitioned to the Punjab Irrigation and Drainage Authority (PIDA), the Punjab Irrigation Department (PID), and the project management unit (PMU). Three key reasons underpinned the shift in the management institutional arrangement. Firstly, under the PIDA’s revised rules in 2010, services provided by the PID staff were made available to the chief executive of the area water board to support the farmer organizations. Secondly, the change was in line with devolved systems in canal command areas elsewhere in Punjab. Lastly, until farmer organizations become self-sustaining, government support was considered essential.
As with the MFF/investment program, project 1 had the PID as executing agency. Implementation of the different project components was assigned to various agencies, which changed a few times for some components in the course of the project.
