• TABLE OF CONTENTS
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 Title Page
 Borrower's name and address
 The project
 Financial condition of the government...
 Total estimated cost of the...
 The loan request
 Project implementation
 Capital items for the payment of...
 Relationship of the project to...
 Project data
 Map of Indus Plains, Pakistan
 Map of upper Rechna Doab,...






Title: Loan application for salinity control and reclamation program. Project No. 4. Upper Rechna Doab. West Pakistan.
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Permanent Link: http://ufdc.ufl.edu/UF00054301/00001
 Material Information
Title: Loan application for salinity control and reclamation program. Project No. 4. Upper Rechna Doab. West Pakistan.
Physical Description: Book
Language: English
Creator: Government of Pakistan
Publisher: Government of Pakistan
 Subjects
Subject: Farming   ( lcsh )
Agriculture   ( lcsh )
Farm life   ( lcsh )
University of Florida.   ( lcsh )
Spatial Coverage: Asia -- Pakistan -- West Pakistan -- Rawalpindi
North America -- United States of America -- Florida
 Notes
Funding: Electronic resources created as part of a prototype UF Institutional Repository and Faculty Papers project by the University of Florida.
 Record Information
Bibliographic ID: UF00054301
Volume ID: VID00001
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved, Board of Trustees of the University of Florida

Table of Contents
    Title Page
        Title Page
    Borrower's name and address
        Page 1
    The project
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
    Financial condition of the government corporation or entity when the application is on behalf of an entity other than the national government
        Page 7
    Total estimated cost of the project
        Page 7
    The loan request
        Page 8
    Project implementation
        Page 8
        Page 9
    Capital items for the payment of which the AID-DL loan would be used
        Page 10
    Relationship of the project to the development of the country
        Page 11
        Page 12
        Page 13
        Page 14
    Project data
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
        Page 21
        Page 22
        Page 23
        Page 24
    Map of Indus Plains, Pakistan
        Page 25
    Map of upper Rechna Doab, Pakistan
        Page 26
Full Text


ji27 9od3


LOAN APPLICATION
FOR

SALINITY CONTROL AND RECLAMATION PROGRAM

PROJECT NO. 4

UPPER RECHNA DOAB

WEST PAKISTAN


GOVERNMENT OF PAKISTAN
JUNE 1965






LOAN APPLICATION


A. 'BORROWER'S NAME AND ADDRESS

Government of Pakistan,
Rawalpindi,
West Pakistan

B. THE PROJECT

1) :-me of the Project ... Salinity Control and
Reclamation Project No.4
Upper Rechna Doab
West Pakistan

2) History of the Program : In the irrigated areas of
SWest Pakistan agricultural productivity has been declining over
the years owing to the spread of waterlogging and salinity. At
present the extent of these problems has assumed grave propor-
tions. Of the 13 million acres in the irrigated areas of the
former Punjab, 1.5 million acres have gone out of cultivation;
in addition 1.7 million acres are severely damaged and an
additional area of five million acres is affected to a varying
degree of deterioration. Moreover, 70,000 acres are being
severely affected every year. Waterlogging is equally extensive.
In an area of 1.9 million acres the water table is at a depth
of less than five feet, and over 35,000 acres are actually sub-
merged.

Realizing the gravity of the situation and the need
for effective remedial measures, the West Pakistan Government
established a separate organization in cooperation with the
former I.C.A. (Project 035), whose object was to determine and
evaluate the many factors relating to the geologic, hydrologic,
soils, and other conditions which contributed to waterlogging
and salinity problems. Based on the data collected by the former
Ground Water Development Organization (now the Water and Soil
Investigation Division) the WAPDA formulated its first
reclamation project which was taken up for execution 1959.
This project, Salinity Control and Reclamation Project No.1,
embodies 1800 tubewells, in an area of 1.2 million acres in
Rechna Doah, which are being used to lower the ground water
table and to control the salinity by utilizing the additional
water for leaching and for increasing supplies to the crops. This
project, which is financed in part by the DLF Loan No.25, is
completed and many of the tubewells have been in operation for
a period of three years.

Early data onProjc~~1 operation are indicative of
achievement of the aims of the project:

1. Ground water levels have generally been lowered,
and subsurface drainage problems have been eliminated.






LOAN APPLICATION


A. 'BORROWER'S NAME AND ADDRESS

Government of Pakistan,
Rawalpindi,
West Pakistan

B. THE PROJECT

1) :-me of the Project ... Salinity Control and
Reclamation Project No.4
Upper Rechna Doab
West Pakistan

2) History of the Program : In the irrigated areas of
SWest Pakistan agricultural productivity has been declining over
the years owing to the spread of waterlogging and salinity. At
present the extent of these problems has assumed grave propor-
tions. Of the 13 million acres in the irrigated areas of the
former Punjab, 1.5 million acres have gone out of cultivation;
in addition 1.7 million acres are severely damaged and an
additional area of five million acres is affected to a varying
degree of deterioration. Moreover, 70,000 acres are being
severely affected every year. Waterlogging is equally extensive.
In an area of 1.9 million acres the water table is at a depth
of less than five feet, and over 35,000 acres are actually sub-
merged.

Realizing the gravity of the situation and the need
for effective remedial measures, the West Pakistan Government
established a separate organization in cooperation with the
former I.C.A. (Project 035), whose object was to determine and
evaluate the many factors relating to the geologic, hydrologic,
soils, and other conditions which contributed to waterlogging
and salinity problems. Based on the data collected by the former
Ground Water Development Organization (now the Water and Soil
Investigation Division) the WAPDA formulated its first
reclamation project which was taken up for execution 1959.
This project, Salinity Control and Reclamation Project No.1,
embodies 1800 tubewells, in an area of 1.2 million acres in
Rechna Doah, which are being used to lower the ground water
table and to control the salinity by utilizing the additional
water for leaching and for increasing supplies to the crops. This
project, which is financed in part by the DLF Loan No.25, is
completed and many of the tubewells have been in operation for
a period of three years.

Early data onProjc~~1 operation are indicative of
achievement of the aims of the project:

1. Ground water levels have generally been lowered,
and subsurface drainage problems have been eliminated.






- 2-


2. Soil salinity has been markedly reduced.

3. There are no data which show directly the effects of
the project on crop per acre yields. However, cropping intensity
has increased from a level of 70%, which obtained before inspec-
tion of the project, to about 105% for 1964-65., and further
increase is anticipated. Individual cultivators report up to
100% increase in per-acre yields, and agricultural experts who
are familiar with the area before and after inception of the
project are greatly impressed by the physical results. Indirect
data on crop yields may be obtained from the marketed commodities
in the market towns within the Project 1 area. These data,
though representing a very short reporting period, are indicative
of greater marketable surpluses available in the area, ranging
up to several hundred per cent for some commodities.

4. Although operation and maintenance of a pilot project
always is troublesome in the first years, few unanticipated
problems have been encountered. Water quality has remained
constant on the average. Corrosion of mild steel screens, however,
was found to be a definite problem. Since recognition of that
problem, non-corrosive material has been adopted. Recently a
program of rehabilitation of encrusted and corroded screens has
been carried out. The project has every promise of being a
continuing success.

In order to extend the salinity control and reclamation
operations over other affected areas in West Pakistan, the
Authority retained the firm of Consulting Engineers, M/S Tipton
and Kalmbach Inc., of Denver Colorado,.U.S.A., to assist it in
carrying out studies with the following objectives:

1. Review the extent of waterlogging and salinity in
the former Punjab area of West Pakistan.

2. Select the areas in which drainage and reclamation
are most urgently required and in whidh feasible
reclamation projects can be developed.

3. Determine the most feasible method of achieving
drainage and reclamation.

4. Develop estimates of costs of the projects.

5. Evaluate the anticipated tangible and intangible
results that would follow the completion and
operation of drainage and reclamation projects.

Studies carried out in pursuance of the above objectives
led to the selection of the irrigated areas in Chaj Doab for the
second Salinity Control and Reclamation Project.






-3-


In January, 1962, the Authority undertook construction
of a small reclamation scheme, the Lalian Project, situated in
the east central part of Chaj Doab. Tubewell construction was
completed in the summer of 1963, and the first block of tubewells
handed over to the operating agency in November, 1963. Completion
of all works was realized in December, 1963. This scheme was
constructed under a barter arrangement between the Government of
Pakistan and Yugoslavia. The Lalian Project embodies 163
tubewells in an area of 157,000 acres.

In 1963 the Authority began construction of a small
unit known as the Mona Scheme, north of the city of Sargodha. The
scheme has 112,000 acres and embodies 145 tubewells. Mona
originally was planned as an experimental scheme in conjunction
with ICA. Many of the pumps and motors and a large part of
the tubewell casing were furnished by the U.S. Government.
Construction in the Mona Scheme area is in its final stage and
pumping should begin during the Kharif season of 1965.

In June 1962, the Authority submitted a Sub-Loan
Application to the U.S. Agency for International Development
for funds to finance the works required for the reclamation of
an-.additional portion of Chaj Doab lands. That application
pertained to a sub-project designated as Salinity Control and
Reclamation Project No.2A, Upper Jhelum Project, consisting of
about 880 tubewells with power supply facilities and surface
drainage works in an area of about 623,000 acres. The area
encompasses all of the lands under the Upper Jhelum Canal and
a small area under the Lower Jhelum Canal. The contract was let
in January, 1964, and construction is scheduled to be completed
in November, 1966.

A further small unit known as the Khadir Unit, in the
Lower Jhelum Canal Command, is being constructed at present under
a barter agreement with Yugoslavia. The contract was signed
in early 1964, and construction began in late 1964. The project
is scheduled for completion after the monsoon season f 1965.

A loan Application was submitted to the U.S. Agency
for International Development in January 1964 for the remainder
of Project 2.

Construction of Salinity Control and Reclamation
Project 3 in Lower Thal Doab is scheduled to begin after the
monsoon season of 1965. The project has been divided into three
contract areas, the first of which is being financed under a
Federal Republic of Germany loan and the second under a barter
credit arrangement with Yugoslavia. The third contract will not
be implemental until 1967.








3) General Description:


A project report has been prepared for Salinity Control
and Reclamation Project 4 in Upper Rechna Doab. A smaller portion
of that project, the area between the Marala-Ravi Canal and BRED
Link Canal, is to be constructed in 1965 with internal financing
arranged through a barter agreement with the Government of
Yugoslavia. This loan application pertains to the balance of
the reclamation works required for Project 4 as follow:

1. Reclamation works comprising about 2973 tubewells,
together with power supply facilities, to benefit a
total area of about 2 million acres in Upper Rechna
Doab.

2. Basic operation and maintenance facilities 'including
a minimum supply of spare parts, transportation,
shop and servicing equipment etc.

The area embodied in this Loan Application is shown in
Figure 1.

The "Salinity Control and Reclamation Program, Project
4 Report is considered an integral part of this loan application.

Objectives of the Project:

1. The project is designed to furnish the irrigation
water required to raise the intensity of cultivation in the area
from its present level of 92 percent to 150 percent.

2. As an integral part of the overall water development
plan of the Basin, it is designed to make available for use in the
lower part of the doab up to nearly 1 million acre feet of water
annually in those months of the year when system shortages of
irrigation water occur.

The project is designed to reclaim 150,000 acres of
salinized and waterlogged lands which have gone out of or are
about to go out of production. Approximately 2/3 of the project
area is supplied with irrigation water only in one season of the
year. Throughout the entire project, present irrigation supplies
are inadequate to supply crop water requirements of lands
presently under irrigation. The factor of limiting water supply
is the basic restraint to the agricultural potential of the area.
Furthermore, the Project 4 area is the last large contiguous area
in the former Punjab which is completely underlain by fresh ground-
wateTr- The recharge in the area is such that groundwater can be
used to supply much of the irrigation requirements of the area thus
freeing surface water for use downstream in areas in which fresh
groundwater is not available.






-5-


To achieve the desired objectives, the project has been
conceived as a tubewell drainage plus irrigation project. Pumping
from the groundwater reservoir will lower the water table,
providing adequate drainage. The tubewell water supply will be
utilized to leach the soil salts and augment supplies now available
to the crops as well as to supplant surface supplies now allowed
to the area in the Rabi season and part of the Kharif season.

Project Features: ,

The proposed project will comprise about 2973 tubewells.
The tubewells will range in capacity from 2.0 up to 5.0 cusecs
and average about 4.0 cusecs; they will range in depth from
200 to 400 feet and average 280 feet.

The design of the tubewells will be essentially that
which is now being used in the Upper Jhelum and Khadir Projects.
A non-corrosive material such as fiberglass will be used for
screen and casing. The pumping will be done by electrically-
powered vertical turbine pumps. The annual power consumption
will increase from about 260 million kilowatt hours to 380 million
kilowatt hours with increasing pumping lift during the life of
the project.

No new surface drainage other than that already
sanctioned and planned by the Irrigation Department is planned
for the project area. As the Link Canals have been designed as
drainage features, further surface drainage is not considered
to be an essential item. All ground water in the area is fresh
so no drainage wells will be required,

The successful operation of the project is obviously
dependent upon availability of electric power in the area.
Necessary electric facilities including transmission and
distribution lines and sub-stations have been incorporated in
the project. The electricity supply will be available from the
West Pakistan grid system which is gradually being extended and
enlarged taking into account requirements of the'reclamation
tubewells. For the electrification of the tubewells it will be
necessary to provide new transmission lines for a distance of
approximately 60 miles. Four new substations will be required,
and several existing substations will be modified to accommodate
new circuits and additional transformer capacity. Power distri-
bution for the tubewells will be an 11 kv system with distribution
transformers at appropriate points for reduction of voltage to
the 400 volt service lines of the tubewells. It will be necessary
to construct about 2650 miles of new 11 kv distribution lines,
and install some 2973 distribution transformers having a total
installed capacity of about 155,000 kva.





-6-


No canal remodelling is required in the project area.

Annexure A to this application contains a summary of
the principle physical works embodied in the reclamation project,
an estimate of the capital cost of this project, data with
respect to its annual cost, project income and project repayment
schedules.

Project Operation and Management:

For the operation and management of reclamation
projects, the West Pakistan Government has established a.Land and
Water Development Board under the chairmanship of the Chief Secretary,
Government of West Pakistan. The members of this Board are the
Chairman, Agricultural Development Corporation and WAPDA, and
Secretaries to the Government for the Departments of Finance,
Agriculture, Irrigation and Power, Cooperatives, and Basic'Democracies.
The Board is a semi-autonomous body charged with the responsibility
of directing all functions in project areas so as to increase
agrioulturIl productivity by an integrated application of all factors
of production.
To carry out its functions, the Board has established
separate Project Organizations for different project areas about
I million acre in extent. These Project Organizations are to be
under the control of a Project Director for each project area and
have four essential divisions:

1. Engineering Division: This division is responsible
for the proper operation and maintenance of tubewells and necessary
mechanical plant and equipment. The basic operation and mainten-
ance plant is provided in project construction.

2. Distribution Division: This division coordinates the
tubewell and canal supplies, and is also responsible for the
assessment and recovery of canal and tubewell water rates and the
reclamation fee.

3. Agricultural Division: This division is responsible
for extension activities and plant protection measures. The
division will have the benefit of expert technical advice for
the formulation of specific recommendations in all fields of
reclamation and agricultural development. The operations of the
division.are quite independent, and functions presently performed
by the Agriculture Department and other government agencies will
be taken over by the Land and Water Development Board.

4. Cooperatives Division: This division will establish
multipurpose cooperative socities'within the project area for
furnishing credit facilities to the former, and to supply farm
implements, fertilizers,improved seeds, and pesticides. These
societies should also take up the marketing of farm produce to
safeguard the interests of the farmers.






-7-


The various divisions, apart from their main functions,
will also collect all relevant data necessary to carry out an
effective analysis and appraisal of the project performance.
These data will be processed in the Project Director's Office,

Administrative, financial, and public relations
functions relating to the project are also under the Project
Director.

C. FINANCIAL CONDITION OF THE GOVERNMENT CORPORATION OR
ENTITY WHEN THE APPLICATION IS ON BEHALF OF AN ENTITY
OTHER THAN THE NATIONAL GOVERNMENT

The project will be constructed by the West Pakistan
Water and Power Development Authority (WAPDA). The Central and
Provincial Governments advance funds to the Authority to enable
it to execute works on behalf of the Government.

The Authority fund consists of:-

1. Grants made by the Government.
2. Loans obtained from the Government.
3. Grants made by local bodies as required by the
Government.
4. Sale proceeds of bonds issued under the authority
of the Government.
5. Loans obtained by the Authority with the special
or general sanction of the Government.
6. Foreign aid and loans obtained from the International
Bank of Reconstruction and Development or otherwise
with the sanction of and on such terms and conditions
as may be approved by the Government and;
7. All other sums received by the Authority.
The Authority is operating on a budget of about 786
million rupees during the year July 1964 June 1965 not including
the value of works being financed by the Indus Basin Fund which
the Authority is also carrying out.

D. TOTAL ESTIMATED COST OF THE PROJECT

Estimated Cost
(Values in thousands)
Foreign- Local Total
U.S. Rupees Equivalent
I T E M Dollars Dollars

Tubewell Reclamation Scheme 26,168 126,738 52,792
Electrical power features 17,914 71,711 32,979

Total: 44,082 198,449 85,771






-7-


The various divisions, apart from their main functions,
will also collect all relevant data necessary to carry out an
effective analysis and appraisal of the project performance.
These data will be processed in the Project Director's Office,

Administrative, financial, and public relations
functions relating to the project are also under the Project
Director.

C. FINANCIAL CONDITION OF THE GOVERNMENT CORPORATION OR
ENTITY WHEN THE APPLICATION IS ON BEHALF OF AN ENTITY
OTHER THAN THE NATIONAL GOVERNMENT

The project will be constructed by the West Pakistan
Water and Power Development Authority (WAPDA). The Central and
Provincial Governments advance funds to the Authority to enable
it to execute works on behalf of the Government.

The Authority fund consists of:-

1. Grants made by the Government.
2. Loans obtained from the Government.
3. Grants made by local bodies as required by the
Government.
4. Sale proceeds of bonds issued under the authority
of the Government.
5. Loans obtained by the Authority with the special
or general sanction of the Government.
6. Foreign aid and loans obtained from the International
Bank of Reconstruction and Development or otherwise
with the sanction of and on such terms and conditions
as may be approved by the Government and;
7. All other sums received by the Authority.
The Authority is operating on a budget of about 786
million rupees during the year July 1964 June 1965 not including
the value of works being financed by the Indus Basin Fund which
the Authority is also carrying out.

D. TOTAL ESTIMATED COST OF THE PROJECT

Estimated Cost
(Values in thousands)
Foreign- Local Total
U.S. Rupees Equivalent
I T E M Dollars Dollars

Tubewell Reclamation Scheme 26,168 126,738 52,792
Electrical power features 17,914 71,711 32,979

Total: 44,082 198,449 85,771








Values in Col. (3) represent foreign exchange cost
covered by this loan application.

Values in Col. (4) represent local currency cost to be
borne by the Government of Pakistan.

Notes: See Schedule 1 of Annexure A for details.

The estimated costs of tubewells shown above are based
upon the latest tenders received for similar work. It is assumed
that locally manufactured pumps, motors and notor controls will
be used to the extent possible.

E. THE LOAN REQUEST

Description Amount

Tubewell reclamation scheme including $ 44,082,000
power facilities

The loan request is sufficient to cover the foreign
exchange portion of the estimated project installation cost.
F. PROJECT IMPLEMENTATION

Construction of the project works will be done under
several individual construction contracts with prequalified
contractors being selected by competitive bidding. Construction
of each major feature of the project will be undertaken along
the lines outlined below.

1) Tubewells: To date it has been necessary to rely solely upon
foreign contractors for the construction of the reclamation
tubewells, in part because of the specialized equipment required,
and in part because there are no local contractors with
sufficiently extensive experience in the construction of tubewells
of the sizes and depths required. It is the desire of all concern-
ed to foment the development of a local tubewell construction
industry. To this end in the loan application for Chaj Project
2B it was proposed that a certain number of wells within that
project be reserved for private contractors. Although that
project is not yet under construction, it is assumed that the
local contractors established in Chaj Doab will be available for
at least part of the work in Upper Rechna. The tubewell
construction program which has been framed by WAPDA indicates
that two contracts of approximately 1COO wells each should be
handled by foreign contractors and two contracts of about 350
wells each should be handled by local contractors.








Values in Col. (3) represent foreign exchange cost
covered by this loan application.

Values in Col. (4) represent local currency cost to be
borne by the Government of Pakistan.

Notes: See Schedule 1 of Annexure A for details.

The estimated costs of tubewells shown above are based
upon the latest tenders received for similar work. It is assumed
that locally manufactured pumps, motors and notor controls will
be used to the extent possible.

E. THE LOAN REQUEST

Description Amount

Tubewell reclamation scheme including $ 44,082,000
power facilities

The loan request is sufficient to cover the foreign
exchange portion of the estimated project installation cost.
F. PROJECT IMPLEMENTATION

Construction of the project works will be done under
several individual construction contracts with prequalified
contractors being selected by competitive bidding. Construction
of each major feature of the project will be undertaken along
the lines outlined below.

1) Tubewells: To date it has been necessary to rely solely upon
foreign contractors for the construction of the reclamation
tubewells, in part because of the specialized equipment required,
and in part because there are no local contractors with
sufficiently extensive experience in the construction of tubewells
of the sizes and depths required. It is the desire of all concern-
ed to foment the development of a local tubewell construction
industry. To this end in the loan application for Chaj Project
2B it was proposed that a certain number of wells within that
project be reserved for private contractors. Although that
project is not yet under construction, it is assumed that the
local contractors established in Chaj Doab will be available for
at least part of the work in Upper Rechna. The tubewell
construction program which has been framed by WAPDA indicates
that two contracts of approximately 1COO wells each should be
handled by foreign contractors and two contracts of about 350
wells each should be handled by local contractors.






-9-


2) Power Supply Facilities: Construction of power supply facili-
ties, consisting of remodelling of existing substations,
construction of new substation, distribution lines, and service
lines to the tubewells, will be done under turn-key type
construction contracts to be awarded on the basis of competitive
tendering. Under such contracts the contractor will procure and
supply all equipment and materials required for the power supply
facilities. To the extent necessary WAPDA may undertake to
procure equipment and materials that are not available in Pakistan
and make it available for installation by qualified local
contractors. In some instances it may be feasible, particularly
in connection with the renovation and expansion of existing
substations, to call upon the construction division of the Power
Wing of WAPDA to carry out such work. The engineering and design
work will be done by Power Wing, WAPDA, with the support of
consultants.

3. Sources of Procurement of Equipment and Materials Required for
Project:

The equipment and materials.to be procured from the
exterior fall into four major categories as follows:-

1. Construction equipment, of generally specialized
types, required for the construction of tubewells,
including hauling and transportation equipment
and spare parts.

2. Permanent equipment and materials required for
the tubewells consisting principally of some
turbine pumps, large electric motors and motor
controls, electric meters, and tubewell casing.

3. Permanent equipment required for the electric
distribution system consisting of substation
equipment, certain transformers, conductors,
cables, insulators and miscellaneous hardware
for the distribution system and service
connections.

4. Structural steel and reinforcing steel required
for the construction of structures for all
features of the project.

Equipment and materials including spare parts required
under Category I are not produced in Pakistan in any significant
quantity. Therefore they will be procured from the exterior in
accord with the requirements regarding procurement set forth in
the Loan Agreement. To the extent equipment and materials
required under Categories 3 and 4 can be procured in Pakistan
at reasonable prices, they will be procured from local
manufacturing and supply firms. To the extent that such materials





- 10 -


and equipment cannot be procured locally at reasonable prices they
will be procured from the exterior in accord with the requirements
and regulations of the Loan Agreement regarding procurement.
Taking into account the present capabilities of local manufactur-
ing concerns it is anticipated that a major portion of the turbine
pumps will be procured from local sources as well as electric
motors and motor controls in all except the higher horsepower
ratings not now manufactured in Pakistan. Similarly, much of
the reinforcing steel and steel shapes in smaller sizes will be
procured from local concerns. It is likely that all steel casing
pipe as well as column pipe, shafting, and certain components
for the pumps, motors and motor controls will have to be
imported.

Engineering will be done by personnel of WAPDA Ground
Water and Reclamation Division, supported by Tipton and Kalmbach,
Inc., Denver Colorado.

G. CAPITAL ITEMS FOR THE PAYMENT OF WHICH THE AID-DL
LOAN WOULD BE USED

1) For Tubewell Installation:

1. Field transport vehicles
2. Drilling rigs
3. Developing and testing rigs
4. Tractors and trailers
5. Casing pipe 16", 14", and 10
6. Turbine pumps and motors
7. Miscellaneous items
8. Spare parts
9. Office and residential machinery and equipment

2) For Electrification

1. 66,000 volts: Switch gear and Substation
Equipment
2. Power Trsc.-aformers 66/11Kv.
3. 11 Kv. bwitchgear
4. Power and control cables
5. Steel Towers
6. A.C.S.R.,Conductors
7. Ground Wire
8. Insulators 66 Kv., 11 Kv. and 400 volts
9. Poles
10. Cu: and Al: Conductors
11. Distribution transformers 11/0.4 Kv.
12. L.T. Switchgears (400 volts)
13. Fuses
14. Service cables
15. Hardware
16. Necessary transportation equipment.





- 11 -


H. RELATIONSHIP OF THE PROJECT TO THE DEVELOPMENT OF
THE COUNTRY

1) Explanation of how proposed project contributes to
economic development plans for country

The basic objective of the Salinity Control and
Reclamation Program is to promote maximum possible development
of the soil and water resources of West Pakistan in the shortest
practicable period of time. More explicitly, the limited
objectives are to eliminate water supply problems, inadequate
drainage, and salinity and alkali hazards as restraints on agri-
cultural development; thus creating an environment in which the
full benefits of modern irrigation practices and agricultural
technology can be realized.

The most obvious and immediate purpose of the program
is to stimulate agriculture to a level of development sufficient
to satisfy the internal requirements of the country for essential
foods and fibers. But an equally vital purpose, in the long run,
is the generation of capital which, in turn, is required to
finance development of commercial and industrial activities.
Because of the growing pressure of population on the land,
agriculture cannot continue to hold such a dominant position in
the economy of Pakistan. On the other hand, agriculture is the
only economic activity in Pakistan which can be mobilized for
appreciable short-term returns. Thus, if the reclamation program
achieves its objectives it will tend to become self-liquidating
in time, as the transition to industry gains momentum, and first
water, and then land, become too valuable to be employed solely
for agricultural purposes. This is not to suggest that agri-
culture will ultimately cease to be a major factor in the economy-
only, that as the economy expands in the normal course of future
events, it must strike a more favorable balance between agriculture
and industry.

Under this reclamation philosophy the overriding commit-
ment is to agricultural development -- even at the risk of
apparent local or temporary overdevelopment of the ground water
resources -- until the agricultural economy gains sufficient
momentum to maintain sustained growth. The feasibility, indeed
the necessity of this policy, has been demonstrated by quantitative
economic studies made by the White House Panel appointed by the
late President Kennedy to study the problems of agricultural develop-
ment in Pakistan (Revelle and others, 1963). In qualitative terms
this policy simply recognizes the axiom that in a dynamic economy
employing the full benefits of modern technology, the value of
water always increases at a faster rate than the costs of water
production.





12 -
According to the commitments to the Third and Fourth
Five Year Plans about 1.5 million acres per year are to be
brought under the reclamation program in the Northern Zone.
This rate of development is commensurate with both the needs and
the resources of Pakistan. That is, the program will not absorb
an inordinate proportion of the development budget, and with
concomittant development in the Southern Zone, West Pakistan
will be self-sufficient with regard to essential agricultural
products by about 1975, and will have surplus cash crops for
export in subsequent years. The program could be accelerated,
but only at the risk of straining the financial resources of
West Pakistan, and with scant prospects of achieving propor-
tionate short-term benefits because the implementation of many
corollary activities cannot be rescheduled. On the other
hand, if the pace of the reclamation program is slowed appreci-
ably below the rate of 1.0 to 1.5 million acres per year, the
agricultural economy will not grow fast enough to close the
gap on the expanding needs of the country for food and fiber,
and the program will fall short of its primary objective.

2) Discussion of Economic Feasibility of Project

The area included in this loan application contains
nearly 1.9 million gross acres and 1,658,000 culturable acres.
The present worth (1965) of net agricultural revenue resulting
from-the proposed project is $ 975 million. In the absence of
a project, net agricultural revenue would be $ 335 million.
Agricultural benefits accruing from the project, then, are
$ 640 million.

In addition to the benefits accruing to agriculture,
there will be 525,000 acre feet of river water diverted
to downstream uses as a direct result of the project. The
present worth of this water is $ 198 million. Furthermore,
there is adequate tubewell capacity included in the project to
allow additional downstream diversions of 331,000 acre feet
during May and October if this is considered expedient in the
future. This added diversion has an annual value of $ 8.4
million but it is not included in project benefits. Total
project benefits are $ 838 million.

Present worth of project costs is $ 155 million, as
derived in the following table.
PRESENT VALUE OF PROJECT COSTS
Item Value at End of Construction (1970)
Thousand dollars
1. Reclamation Construction/ 49,924
(Schedule 1)
Less Net Cost Recovery
During Construction 1,536
(Schedule 6)
Net Construction Cost 48,388


I/ Excluding Custom duty and sales taxes.





- 13 -


2. Annual 0 & M During
development discounted
(Schedule 5)
1st year 4,338
2nd year 4,731
3rd year 5,079
4th year 5,387
5th year 5,428
Total 24,963
3. Annual 0 & M 1975 2010
(Schedule 5) 91,758
4. Annual Replacement Reserve
(Schedule 4) 50,161
5. Total Present Value of Costs (1970) 195,270
Present Value of Costs (1965) 154,849
The total benefit/cost ratio for the project is 5.4
to 1, derived from both agricultural and diverted water values.
That it is unnecessary to allocate costs between the two purposes
of the'project can be amply exhibited. If all the costs both
capital and annual are associated with each benefit separately,
the benefit/cost ratios are still greater than one 4.1 for
Upper Rechna agriculture and 1.3 for diverted water.
SUMMARY OF FINANCIAL ASPECTS
Per Per Per
Culturable Gross Harvested
Acre Acre Acre
(1,638,000) (1,866,00M) (2,51.000)
Capital Cost (Reclamation)
(Schedule One) 32.07 28.15 22.74
Capital Cost (Total) 52.33 45.93 37.10
Operation and Maintenance 4.18 3.67 2.96
Cost (Annual)
(Schedule Five)
Total Annual Cost
(Schedule Six) 7.52 6.60 5.33
Agricultural Benefits to
Upper Rechna 2/ 27.73 24.35 19.67
Total project benefits 2/ 56.32 31.88 25.75
Total project costs_2/ 6.72 5.90 4.76
Lenefit/cost ratio 5.4/1 5.4/1 5.4/1
j/ Present worth of agricultural benefits in 1970 amortized over
40 years.
2/ Present worth in 1970 amortized over 40 years,









- 14 -


3) Future Developments

Indirect benefits will accrue from construction of
the Project. The construction of electric distribution
facilities to supply power to the tubewells and villages within
the area will lead to a higher standard of living and greatly
enhance opportunities for the development of agricultural
industries in this area. Improvements in diet and health that
will result from increasing food production and eliminating water-
logging cannot be evaluated precisely in monetary terms.
Nevertheless, the improvement in diet will be substantial.
Elimination of swampy areas will considerably reduce the
opportunity for flies and mosquitoes to breed, and can be
expected to lower the incidence of typhoid, malaria, and cholera.

In summary, this Project, aside from being justified
as a means of providing drainage and permitting the reclamation
of waterlogged and salinized lands,has a high order of economic
feasibility in that there will remain a substantial net return
to the land owner after payment of the entire cost of construc-
tion and operation of the Project. Aside from being justified
as a means of averting the incurrence of a much greater
expenditure to replace the loss in agricultural production that
will take place if the lands are not reclaimed, the Project will
add an increment of new wealth to the economy of Pakistan for
in excess of its cost.

The control of salinity and supply of more and better
timed irrigation water is just the necessary start to full
agricultural development. It is planned that an energetic
program of agricultural extension will be set up in the project
areas, that far more fertilizer be made available, that seed
farms be expanded, and that the farmers be educated in more
efficient methods of agriculture. When these programs are
promulgated, the benefits of the project should rise by a factor
of several hundred per cent.






- 15 -


PROJECT DATA


1. Tubewells
a. Number of tubewells
b. Diameter of tubewells inches
c. Average Depth feet
d. Average Capacity cusecs
e. Total capacity cusecs

2. Power Supply
a. Transmission lines (66 Kv) miles
b. Distribution lines (11 Kv) miles
c. Distribution transformers Kva


2,975
22-24
280
4.0
13,103


60
2650
155,000


3. Miscellaneous
a. Gross area of project acres .1,I865,000
b. Culturable area acres 1,638,000
c. Projected cropping intensity percent 150
d. Area irrigated acres
Kharif 1,141,000
Rabi 1,308,000
Annual 2,449,000
e. Canal supplies m.a.f./yr.at H.W.C. 1.4
f. Tubewell supplies m.a.f./yr.at H.W.C. 3.8
g. Total water supplies m.a.f./yr.at H.W.C. 5.2
h. Average annual energy consumption 320
million Kwh











ESTIMATE OF CAPIiAL COST 21CTRIFICOTION
(Foreign Cost Ixpressed in U.S. Dollars)
SCHEDULE ON2


((1000)


1. Construction of Power Facilities
a) Transmission line
b) Substations (less transformers)
c) Power transformers
d) Distribution lines
e) Transformers and services
f) Land


Total
2, Construction,plant, equipment and
facilities furnished by JAPDA:


396
3,772
1,188
5,102
3,308


13,766


R(1000) q. $(1000)


812
8,716
990
13,996
5,311
88


567
5,603
1,396
8,042
4,424
18


29,913 20,050


a) Camps and facilities
b) Transportation equipment
c) Spare parts
d) Engineering equipment


Total


14 633


3. Administration, engineering and
supervision


4. Contingencies


Customs duties and sales taxes
Interest during construction


17,914 71,711


400
220
10
3


2*987


2,067


4,582


4,582

17,693
14,308


147

3,030


3,030

3,717
3,006


32,979


TOTIL CAPITLL COST




CHi~7JUL- TO7 (:2L3CTRIFICi.TIN)
ANNUAL r,.ZIJDITU' OF CAPITAL COST
(Values in Thousands)

First Year Second Year I Third Year I Fourth Year I Total
S $ ,Rs $ t t Rs
1, Construction of Power RS
Facilities 1,377 2,991 2,754 5,982 6,881 14,988 2,754 5,982 13,766 29,913
2. Construction Plant, equip-
ment and facilities 8 510 6 123 14 633
3. Administration, engineering
and supervision 520 1,130 520 11130 020 1,130 507 1,192 2,067 4,582
4. Contingencies 520 1,130 520 1,130 520 1,130 507 1,192 2,067 4,582
5. Customs duties and sales tax 5,700 5,700 6,293 17,693

Total: 2,425 11,461 3,800 14,065 7,921 23,511 3,768 8,366 17,914 57,403
Interest during construction 86 408 115 544 115 544 15 544 431 2-----------------------
Interest during construction 86 408 115 544 115 544 115 544 431 2,040


4,75 % on 3/4 amount first
year, on full amount other
years.


135


501


282


668

838


668


376 1,117


495 1,837

658 1,955


298


298


Annual Total

Total Interest
(2q. $)


86 408 250 1,045 577 2,050 805 2,627 1,718 6,130

(3,006)







18 -
SCHD3UL3 THRZ~ ('"ZLCTRIFICATION)
Amortization of Capital Cost
(Values in Dollars)


Dollar component

Rupee Component (less interest)

Interest during construction

Total Construction Cost

Dollar Component 17,914,000

Rupee Component 15,065,000

Loan Amortization 40 years 4% interest

Annual payment dollar component

Annual payment rupee component

Total annual payment


17,914,000

12,059,000

3,006,000

32,979,000







1,008,000

848,000

1,856,000


Notet Amortization of the power facilities will be paid out of
:7LPL. Power Account, Rs .025 per iMHM is more than sufficient
to meet above cost of amortization.






19 -
SCH3DULZ ONE
ESTIMAT.3 OF CAiITAL COST RECLAMATION IT2MS
(Foreign Cost Expressed in U.S. Dollars)


1. Tubewell and appurtenant Works
a) Tubewell Construction
b) Pumps, Motors, Ccntrols
c) Spare parts
d) Pumphouse and quarters
e) '7ater distribution works
f) Land


Sub-total


2, Construction plant equipment and
facilities furnished by 'APDA:

a) Camps and facilities
b) Transportation equipment
c) Spare parts
d) Engineering equipment


Sub-total


3. Administration, engineering and
supervision (15%)

4. Contingencies (15%)

5, Customs duties and sales taxes

6. Interest during construction


TOTAL CAPITAL COST


7. Investigations, planning and
project preparation (1i%)

8. Less salvage of construction
vehicles and equipment


$(1000)


13,917
4,925
492
371


19,705


126


2,975

2,975


25,781


387


Rs1000) Eq. $(1000)


24,945
13,958
1,396
16,351
5,946
1,115


63,711


3,440
1,980
90
27


5,537


10,387

10,387

12,400


24,906

127,328


19,158
7,857
785
3,806
1,249
234


33t089


768
416
73
32


1,289


5,157

5,157

2,605


5,232

52,529


1,910


2,500


788


525.


NET BOOK CAPITAL COOT


26,168


126,738 52,792




SCH3DUIL T'70
ANNUAL 2UXPNDITURES FOR CAPITAL T7JOP 2~CLAATICN IT.1MS
(Values in Thousands)


First Year


$

Tubewell Construction 5,280

Construction plant, equipment 72
and facilities
Administration, engineering
and supervision 750


Contingencies

Custom Duties & Sales tax


750


Total 6,852

Interest during Construction 244
4%o on 3/4 amount first
year, on full amount
other years





Total Interest 244
equivalentt Dollars)


Rs

11,000

4,450


2,600

2,600

2,740


23,390

833


i Second Year I Third


$

5,800

54


750

750




7,354

325

262


Rs $_

18,500 5,800

1,087


2,600

2,600

3,220


28,007

1,111

998


750

750




7,300

325

349

260


833 587 2,109 934


Year


RS

18,500




2,600

2,600

3,220


26,920

1,111

1,330

959




3,400


I Fourth Year I


$

2,825




725

725




4,275

325

349

347

152


1,173


Total


Ks aS

15,711 19,705

126


2,587

2,587

3,220


24,105

1,111

1,330

1,279

859


4,579


Rs

63,711

5,537


2,975 10,387

2,975 10,387

12,400


25,781 102,422

1,219 4,166

960 3,658

607 2,238

152 859


2,938 10,921
(15232)


First YY





21 -
scaODUL TLH_"
AMORTISATICN 0F PROCJiC' COSTS
(Values in Dollars)


Dollar component

Rupee Component less interest

Interest during Construction

Total Construction Cost
(Total Capital Cost Schedule 1)

Interest during development

Total loan value

Loan amortization in 35 years
after development @ 4L( interest


25,781,000

21,517,000

5,232,000

52,530,000


11,230,000

63,760,000


3,772,000


ANrNUAL CAPITAL CHARGES
(Value in Dollars)

Year Dollar Component Rupee Component
interest interest

1 244,000 175,000

2 587,000 443,000

3 934,000 714,000

4 1,173,000 962,000

End of Construction
Sub-total


5-9






10-44


1,224,000 p.a. 1,022,000 p.a.

End of Development
Sub-total

Principal & Interest Principal & Inte

1,525,000 p,a. 2,247,000 p.a,


Total


419,000

1,030,000

1,648,000

2,135,000


5,232,000


rest


11,230,000



3,772,000 p.a.





22 -
SCH2DUL2 FOUR
OP.I1ATION AND MAINTENANCE 2~UIIPMNT AND FACILITIES


1/
I. Initial Cost--
a) Offices and housing
b) Maintenance equipment
c) Transportation equipment
d) Communication equipment
e) Engineering equipment


2/
II. Replacement of equipment
a) Offices and housing
b) Maintenance equipment
c) Transportation
d) Communication
e) Engineering equipment
f) Irrigation tubewell
(la and d, Schedule 1)
g) Pumps, Motors & Controls
(lb, Schedule 1)


Component




375,000


45,000
30,000


Rs component Eq. $
Rs


2,000,000
480,000
800,000
609000
18,000


Life
(Years)


20
8
5
10
5

15

15


420,000
476,000
168,000
58,000
34,000


Annual Cost
Eq. $

33,000
73,000
39,000
7,000
8,000

1,146,000

392,000

1,698,000


j/ Items not included as project cost. Salvage value of the construction
vehicles and equipment to be transferred to maintenance had been
deducted but is not replaced*
2/ Items a) to e) are amortized at 44 % over their useful life. Items
f) and g) are represented by an annual depreciation deposit at 4%
rate of interest for 15 years,







AIIJNUAL COST OF OPI'J.TIN AND ,,.IIJ7i.:rJOJ,,
-- -- -- -- -- -- ---- ------ ~ -------------- -- ~ ~-- -- --~- -- -- -- -- -
Year I No. of I estimated Annual Cost i
I Tube- 1 0 & M Tubewells i(Cost of Power 1 Maintenance of Total Acres Served
i wells I J/ i / I equipment and I I
I | j I Vehicles I I
---No.a Rs Rs RSa RS Acres-- --
No. Rs Rs Rs Rs Acres


120
960
2160


2973
2973
2973
2973
2973


10-44 2973


216,000
1,728,000
3,888,000


5,351,000
5,351,000
5,351,000
5,351,000
5,351,000


5,351,000


396,000
411,000 595,000
3,810,000 790,000
7,315,000 790,000
End of Construction Period
15,404,000 875,000
18,484,000 875,000
21,565,000 875,000
24,646,000 875,000
26,357,000 875,000
End of Development Period
28,970,000 875,000


396,000
1,222,000
6,328,000
11,993,000


21,630,000
24,710,000
27,791,000
30,872,000
32,583,000


32,583,000


54,000
500,000
960,000


1,350,000
1,620,000
1,890,000
2,160,000
2,310,000


2,310,000


aaaaaaaaaaa-----aa---------------------------- ----------
NOTE: i / Based on annual 0 & M Cost of Rs 1800/tubewell.
2/ Cost of power based on Rs 007 per i7H, and a pumping head of 40 feet during construction and
60 feet thereafter.




-24 -
SCH3DULI ~IX
PROJECT COST LCOV.JRY AND C:AH -FLO:
(Value in Rupees)
------------------------------------------------------------------------------------------------------------
Year i Project I Estimated Project Cost I Annual I Accumulated
I Cost | Operation I Loan Repayment I Total Annual I Surplus or I Balance
I Recovery 1/ I Costs 2/ I 3/ I Cost I (Deficit) I Surplus or
I I I I I I (Deficit)
w ------------------------------------- ----------------------------------------------------------------


972,000
9,e900ooo
17,280,000


396,000
1,222,000
6,328,000
11,993,000


396,000
1,222,000
6,328,000
11,993,000


(396,000)
(250,000)
2,672,000
5,287,000


(396,000)
(646,000)
2,026,000
7,313,000


End of Construction Period


24,300,000
29,160,000
34,020,000
38,880,000
41,580,000


29,710,000
32,790,000
35,871,000
38,952,000
40,663,000


29,710,000
32,790,000
35,871,000
38,952,000
40,663,000


(5,410,000)
(3,630,000)
(1,851,000)
(72,000)
917,000


1,903,000)
(1,727,000)
(3,578,000)
(3,650,000)
(2,733,000)


End of Development Period


10-44 60,060,000 p,a.


40,663,000 pa. 17,955,000 pa. 56,618,000 p.a. 1,442,000 p.a.


------L~-- ---- ---I~-----~--- -- - - - - - -- - - - - -
1/ Based on Rs 18 per harvested acre through development period and Ps 26 per harvested acre thereafter,
(A charge per harvested acre of Rs 25.38 is sufficient to pay the total annual cost of Rs 58,618,000 after
development. An additional Rs 0.07 would be required to amortize the Rs 2,733,000 deficit accumulated through
through the period of development).

2/ 0 & M Costs from Schedule 5 plus replacement reserve costs from Schedule 4,

3/ Beginning at end of development period for 35 years at 4% rate of interest per annum.






I \


*, ** .. + *- /, *I-






--Al 1
I I 4 I`


M A L 4



4n .


Sr.illgr *


J A M M U

AND

K A S H M


e0u0.rl .


olrl tholl

S Khl


S ,


SCALE O ILES ,
SCALE OF MILES


10.
4


---- International and Provincial Boundaries -"


mau- s Basin so



O Indus Plains w



I Project Area


Irll
..A..


g


-
.9
4, -i
I I
00. 00'
I I


N


:*EST PAKISTAN
WAIl R AND POWER DEVELOPMENT AUTHORITY
Tir.,ON AND KALMBACH, INC.- ENGINEERS

SALINITY CONTROL AND RECLAMATION
PROJECT NO. 4


MAP OF INDUS PLAINS


,C. t2. 14',i


I 43, 0 1,7
I I TM .3, 0-wOb, o-" I


PLATE I

2-


-2w-


. -


4, 9


- I.-


-1t'-


-eb*



-as*-
: ",- *

..
v.


undary


within West Pakistan


.p

-14L
,10


-.I-


-a*--














































LOWER


====== Roads, Metlled
-=== oads, IUmetalled
SRailways
'CO 4 Towns end Villages
International end Provincial Boundarie
Links end Main Canals
SBriachie, OistributariS ond Minors
- i Rivers
-. --- Noies
---- andoned ChelMnes
l4 s Baerraof or Headworks
S- Project Boundaries


J. .gO /,~\




C i J
/2i
-t-A" o, ', a, ,



,4o KHN- R( no MARALA
cr


DKS4HEADWORKS









~ ~~~ "" '.' rSX
o' JRNWAZIRABAD











i .. oo.
A
.44
*NzISombrial



II un,,, 0G 04




-,
It At Vo
w-" n MFlZABAD~ SIALKOT







.. ** hy s










RECHNACENTRAL RECHNA UPPER RECHNA
PROJECTC ONE) (PROJECT MR) Eminabod

RECHNA DOA 8 CHUHAKANA S J khon
1.. 1. .. Kamoke It
.A. L91 I

sei or as
G11






Salinity Control and Reclamation Project No.I (Central Rechno, o 1V
was undertaken by W.A.P.o.A. in is$o and completed in 1ost.
It comprises ite tuhewells which together with ise tubewells 5 z
constructed under an earlier program by the Irrigation Department I
benefit a gross area of I, 24,ooacres. AKHUPitA
*IIt










S uridke F





D~ sLKLMb I tTPO N


Buchekv SHADA
/S HANDARA Al









NNE WATER AND PER E
6 IPTON AN
a s to is SALINITY CONRL
IT a














4 to too"' 0 SCALE OF MILES PROJ
UPPER E


AKISTAN
'ELOPMENT AUTHORITY
CHINC.-ENGINEERS
AND RECLAMATION
NO. 4
HNA DOAB




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