Projet Bassins Versants

AGREEMENTS REACHED

Component A: Construction and Rehabilitation of Main Drainage System

11. 
    Progress in the implementation of construction is summarized in Annexes C, G, H and I. The mission recommends that the PIU ensures timely completion of all as-built drawings and O&M manuals immediately following the works’ completion date.
    

Component B: Irrigation and Drainage System Improvement in Command Area

B.l. Water User Association development and TA training,

12. 
    Twenty one WUAs (nine in Beruni and twelve in Turtkul) have been established, and have been operating for nearly six years. In addition, Water User Groups (WUG) have been established in WUAs with larger areas and more than 100 members, as well as Associations of WUAs. WUAs in Beruni have generally been established on the basis of hydraulic boundaries, and those in Turtkul are scheduled to be reorganized similarly. WUAs and trainers of WUA have been trained and have benefited from refresher courses on a large number of issues, including O&M, on-farm water management, accounting, administration and legal issues. Farmer Field Schools have been organized, as well as Demonstration Plots, and training material was distributed to WUAs and local authorities. The training program was completed in 2009.
    
13. 
    Despite intensive training and continuous support from the project, and although there is now a general recognition in the project area of their importance, WUAs continue to face considerable challenges. Some of these are not unique to Uzbekistan and are consistent with global WUA performance. Additional challenges that are related to the specific legal and financial framework in Uzbekistan include the limited autonomy of WUAs in managing their affairs, financial constraints that result from the recovery of O&M charges through seasonal credit and from the difficulty of collecting fees from dekhan farmers, the sometimes limited support from local authorities in face of the need to achieve cotton and wheat quota, and frequent staff changes in many WUAs.
    
14. 
    Training of 26 O&M staff from government water management organizations in South Karakalpakstan was conducted in September 2008 and February 2009 on planning, O&M of irrigation and drainage infrastructure, and a training manual was prepared. In addition, guidelines for O&M of irrigation and drainage infrastructure were prepared.
    
15. 
    However, the mission noted with concern that public agencies responsible for water management (including Basin Administration of Irrigation Systems (BAIS), Hydro Melioration Expedition (HME) and Raiselvodkhoz) showed limited interest in training staff or WUAs to improve water resources management. The same applies to training of staff in the use of water scheduling software, and the preparation of databases associated with proper I&D. The mission recognizes that many of these challenges are related to the low salaries and few incentives that staff are provided, as a result of which there is a high staff turn-over, but neglect of capacity strengthening will inevitably compromise the sustainability of project investments.
    
16. 
    All funds allocated to these sub-components have been disbursed, and no additional funds are likely to become available during the remainder of the project. Capitalizing on this important experience for the design of SKWRMIP, the mission strongly recommends that firm expressions of commitment by local authorities and water resources specialists to adhere to rational water management rules is a key prerequisite. More attention will also need to be devoted to strengthening capacities of WUAs to ensure full ownership and ability to take command of on-farm water management. This, in turn, requires direct involvement of local authorities, water resources specialists and WUAs in the design of such project.
    

B.2. Irrigation and Drainage Improvement

17. 
    An assessment of activities and results under this sub-component is presented in Annex D. Encouraging preliminary results have been obtained by the Farmers Information Support Desk (FISD), responsible for providing advice to farmers, which has so far received 10 requests for support from farmers during 2010.
    

B.4. Environmental and Social Safeguards

18. 
    The mission noted that the contract of the environmental specialist that had been employed by the project has not been extended to cover the additional works. It was agreed that the PIU will recruit, at least on a part-time basis, an environmental specialist. The M&E consultant will monitor progress in the implementation of the EMP. The Involuntary Resettlement policy was not triggered under the project. A social safeguards specialist will visit the project in the course of this fiscal year to confirm the validity of this.
    
19. 
    A full assessment of project compliance with safeguards policies is presented in Annex E. The following agreements were reached:
    

• 
  Environmental Assessment (OP4.01): for contract D1/2, it was agreed that the PIU will, by June 30, 2011, train the contractor in EMP to ensure compliance. An environmental specialist will be recruited to oversee implementation of the EMP during the remainder of the project.
  
• 
  Natural Habitats (OP4.04): within the coming 1-2 years measures for stabilizing salts in Lake Ayazkala should start. The aim is to prevent the salt from being blown away by wind to avoid negative impact on human health in adjacent towns. SKWRMIP should provide an adequate amount of water to the Bustan canal for supplying water to the Baday Tugai forest, without any competition from irrigators.
  
• 
  Physical Cultural Property (OP4.11): to further reduce the impact of high groundwater tables in the project area on key monuments, SKWRMIP needs to (i) empower WUAs through training and technical backstopping by MoAWR staff, (ii) provide irrigation advisory services through FISDs, and (iii) remodel inter-farm canals. SKWRMIP also needs to make sure that a minimum distance of 150 meters between the introduced I&D works and key monuments is maintained.
  
• 
  Dam Safety (OP4.37): The mission has not been able to ascertain the nature and scope of works that have been undertaken by the Government to improve the safety of Tuyamuyun dam. The mission would like to receive clarification on follow-up activities that have been taken in response to relevant clauses of the Environmental Assessment (EA) and the Environmental Management Plan (EMP). To that effect, the Bank will send an official request to MoAWR.
  

Component C: M&E of project impact and EMP

20. 
    The consultancy services for M&E and Supervision of EMP were initially provided by Royal Haskoning from December 2005 until December 2009. After the project’s Closing Date was extended to June 30, 2013, the PIU signed a contract for the “Follow-up M&E Consultancy Services” with the consortium of AHT Group AG and Donaev Management Consulting (“Consortium”) on October 25, 2010. The total contract amount is US$599,948.10, and its Closing Date is June 30, 2013. The M&E Consultant has started its services on January 10, 2011. As a result of the transition between the two consultants, the M&E Annual Report for 2010 has not been completed. The detailed status of the project’s indicators is provided in Annex B. The status of indicators is largely based on the M&E annual report for 2009, with the exception of a few construction-related indicators that have been updated as of March 2011.
    
21. 
    Representatives of Royal Haskoning visited Karakalpakstan on March 2, 2011 to carry out the final workshop to formally hand over the M&E data and reports collected by them over the period of 2006-2009. By the time of the mission, the Consortium had submitted the Inception Report for review of the PIU and mission team. For the upcoming quarterly report, the mission recommends that the Consortium and PIU focus more on the impact that the project makes in respect to (i) contribution to agricultural GDP from irrigated land; (ii) rural poverty indicators and farmers’ income in Karakalpakstan, and (iii) technical assistance provided under the project. To ensure the sustainability of activities under the M&E Component, it is expected that the Consortium will be closely working with Raiselvodkhoz, HME, PAM and the Archeological Institute to gradually hand over responsibility to these organizations for the maintenance of the project’s M&E database.
    

Component D: Project Management, Technical Assistance and Training

D.l. Project Implementation Unit

Procurement

22. 
    At the current stage of the project implementation little procurement work is envisaged. The PIU is mostly managing amendments to the existing contracts and extensions of contract duration to cover additional works. Contract implementation progress is reflected in Annex G. There are no post review contracts since the last mission. Procurement performance of the project is rated satisfactory.
    

Financial Management

23. 
    The contribution from the Financial Management Specialist is presented in Annex K.
    

D.2. TA for Detailed Design and Construction Supervision

24. 
    Technical assistance services for detailed design and construction supervision is provided under Con/1. These services include design of sample structures (approximately 25%), review of contractor’s working- and “as built”-drawings, construction supervision inspections and certifications, and technical support to the PIU.
    

D.3. Studies and Training

25. 
    As part of contract Con/1, studies were conducted on Amu Darya basin hydrology and management, and on modern irrigation tools. Training in O&M techniques was also conducted. Reports were prepared. This activity has been completed and funds have been fully spent.
    

D.4. Preparation of Future Projects in Water and Irrigation and Drainage.

26. 
    An FS for a future investment operation is underway and is expected to be completed soon. The mission visited areas in Karakalpakstan that are identified in the FS to be part of this future operation. Four options have been identified to improve water management that aim to replace pump irrigation by gravity irrigation. In addition, in response to a bilateral agreement between Turkmenistan and Uzbekistan, the project would re-route saline drainage flows away from the Amu Darya to improve water quality. Expected benefits include increased production from rehabilitated, previously abandoned land in downstream areas and from vertical intensification on rehabilitated and existing land, as well as reduced costs of pumping. Production of a second non-cotton/non-wheat crop after the wheat harvest will become possible in parts of the command area.
    
27. 
    The mission prepared a preliminary water balance of the before- and after-project situation (see Annex K). A more detailed monthly balance will need to be prepared to fully assess impacts of the project on water resources. While adequate water resources appear to be available in Tuyamuyun reservoir, satisfying the increased demand from the anticipated horizontal and vertical intensification as a result of the project (minus the reduced leaching requirement because of improved water quality) will require that due attention is being paid to continue satisfying downstream demands and environmental maintenance flows.
    
28. 
    The mission noted that the estimated costs of each of the proposed options are between US$120m and US$194m. The project is included in the Government’s priority investment plan, albeit for a smaller IDA amount, as well as in the current Bank’s Country Assistance Strategy. Costs are in particular associated with an extension of 70kms of the Bustan canal that are estimated at US$100m. Since currently abandoned irrigated areas are located at the end of this canal, its development represents a significant up-front requirement before benefits can be captured. A preliminary assessment of safeguard policies that will be triggered by the new project is presented in Annex J. It was agreed that, following completion of the FS, preparation of SKWRMIP can start provided that (i) the Bank receives a request for support for the preparation and implementation of the project from the Ministry of Economy; and (ii) the IDA/IBRD envelope for the operation is clarified.
    
29. 
    While the mission recognizes the important benefits that the proposed project would bring, it also recommends adopting a more strategic perspective on water resources development and management in the lower parts of the Amu Darya river. It was therefore agreed that preparation of a comprehensive lower Amu Darya Water Master Plan would be included in the design of SKWRMIP.
    

4. 
   Next steps
   

Table 2: Summary of Agreed Actions

Action		Responsible	Deadline
Component A: Construction and Rehabilitation of Main Drainage System
1	Contract MS/1 completion of all outstanding works, approval of as-built drawings and O&M Manual	PIU	May 31, 2011
Component B: Irrigation and Drainage System Improvement in Command Area
2	Inclusion of recommendations of B.4 in EMP	PIU	May 31, 2011
3	Recruitment of an environmental specialist	PIU	April 30, 2011
4	Water supply to Baday Tugai forest guaranteed	PIU	continuous
5	Contractor of contract D1/2 trained on EMP	PIU	June 30, 2011
6	Assess net effect on fisheries, livestock, flora and fauna	M&E Consultant	As soon as D1/2 is completed
7	Design and implement measures for stabilizing salts in Lake Ayazkala	PIU	As soon as possible
8	Clarifications regarding Tuyamuyun dam safety	PIU	May 31, 2011
9	Contract CAR/1/1^1: rectification of non-compliance and under excavation works; approval of as-built drawings	Consultant	May 31, 2011
10	Contract CAR/1/2^2: submission of revised works program for concrete works	Consultant	April 30, 2011
	Component C: M&E of project impact and EMP
11	PIU to focus more on M&E of project impacts	PIU	Q2, 2011 Report
Component D: Project Management, Technical Assistance and Training
12	Reflect lessons from DIWIP in the design of SKWRMIP, including recommendations from section B.1, B.4, and D.4	MoAWR	During project preparation
13	Clarify IDA/IBRD envelope of SKWRMIP	WB/MoE	May 31, 2011
14	Request for Bank support for SKWRMIP	MoE	2011
15	Revise Financial Management Manual to incorporate sections related to: Financial reporting and auditing arrangements; and Update sections related to accounting and internal control policies and procedures (including setting limits for volume of monthly cash operations)	CA and F/DS	June 30, 2011
16	Finalize modification of the current accounting software	PIU, C A and F/DS	June 30, 2011
17	Timely submission of audit report for FY 2010	PIU, CA and F/DS	Immediately and continuously
18	implement last mission recommendations in regard to KSDP	PIU Director, CA	June 30, 2011