LOAN APPLICATION FOR
SALINITY CONTROL AND RECLAMATION PROGRAM
PROJECT NO. 4
UPPER RECHNA DOAB
GOVERNMENT OF PAKISTAN
A. 'BORROWER'S NAME AND ADDRESS
Government of Pakistan,
B. THE PROJECT
1) T:ame of the Project ... Salinity Control and
Reclamation Project No.4
Upper Rechna Doab
2) History of the Program : In the irrigated areas of West 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 proportions. Of the 13 million acres in the irrigated areas of the former-Punjab, 1.3 million acres have gone out of cultivation; in addition 1.7 million acres are severly damaged and an additional area of five million acres ia 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 submerged.
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 onPro,1-t 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. 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 ?0%, which obtained before inspection of the project, to about 105%1 for 1964-~65., and further increase is anticipated. Individual cultivators report up to 100%1 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 mark-eted 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, MIS 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 which feasible
reclamation projects can be developed.
3Determin e 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 Ohaj Doab for the second Salinity Control and Reclamation Project.
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 Italian Project embodies 163 tubewells in an area of 137,000 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 143 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 o 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 BRBD 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 P roject 4 as follow:
1. Reclamation works comprising about 2973 tubewellst
together with power supply facilities, to benefit a total area of about 2 million acres in Upper Rechna
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 Appication 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 I 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 groundwateT-." 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.
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 alloted to the area in the Rabi season and part of the Kharif season.
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 electricallypowered 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 distribution 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.
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 agrioultural 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 maintenance 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 formers, 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.
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 Dlirector's Office.
Administrative, financial, and public relations
functions relating to the project are also under the Project Director.
C. FINANCIAL CONDITION OF THE GOVERNMENT COXRPORATION 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 require&. by the
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
(Values in thousands)
Foreign- Local Total
U.S. Rupees Equivalent
I T E M Dollars Dollars
Tubewell Reclamation Scheme 26,168 126,758 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 I 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
Tubewell reclamation scheme including $ 44,082OOO
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 concerned 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 ICO0 wells each should be handled by foreign contractors and two contracts of about 350 wells each should be handled by local contractors.
2) Power Supply Facilities: Construction of power supply facilities, 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
The equipment and materials to be procured from the exterior fall into four major categories as follows:1. Construction equipment, of generally specilized
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.
5. 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
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
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 manufacturing 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", i14i", 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
2. Power T:'cnsmformers 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
10. Cu: and Al: Conductors
11. Distribution transformers 11/0.4 Kv.
12. L.T. Switchgears (400 volts)
14. Service cables
16. Necessary transportation equipment.
H. RELATIONSHIP OF THE PROJECT TO THE DEVELOPMENT OF
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 agricultural development; thus creating an eiviroment 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 ru-n, 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 agriculture will ultimately cease to be a major factor in the economyonly, thaat as the economy expand in the normal course of future events, it must strike a more favorable balance between agriculture and industry.
Under this reclamation philosophy the overriding commitment 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 development 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.
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 proportionate 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 appreciably 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 1,638,000 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)
1. Reclamation Construction/ 49,924
Less Net Cost Recovery
During Construction 14536
Net Construction Cost 48,388
:1/ Excluding Custom duty and sales taxes.
2. Annual 0 & M During
Ist year 4,338
2nd year 4,731
3rd year 5,079
4th year 5,387
5th year 5,428
3. Annual 0 & M 197 -2010
(Schedule 5) 91,758
4. Annual Replacement Reserve
(Schedule 4) .30,161
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 theproject 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) (1,8662o00) (2,5!n o00n)
.Capital Cost (Reclamation)
(Schedule One) 32.07 28.15 22.74
Capital Cost (Total) 52.33 45.93 37.10
Operation and M.1aintenance 4.18 3.67 2.96
Total Annual Cost
(Schedule Six) 7.52 6.60 5.33
Agricultural Benefits to
Upper Rechna j/ 27.73 24.35 19.67
Total project benefits 3/ 56.32 31.88 25.75
Total project costs_2J 6.72 5.90 4.76
Lenefit/cost ratio 5.4/1 5.4/1 5.4/1
1/ Present worth of agricultural benefits in 1970 amortized over
2/ Present worth in 1970 amortized over 40 years,
3) Future Developments
Indirect benefits will accrue from construction of the Project. The construction of electric distribution facilities to supply power to the tubewellt 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 waterlogging 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 construction 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 fuill 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.
a. Number of tubewells 2,975
b. Diameter of tubewells inches 22-24
c. Average Depth feet 280
d. Average Capacity cusecs 4.0
e. Total capacity cusecs 13,103
2. Power Supply
a. Transmission lines (66 Kv) miles 60
b. Distribution lines (11 Kv) miles 2650
c. Distribution transformers Kva 155,000
a. Gross area of project acres 1,665,000
b. Culturable area acres 1,638,000
c. Projected cropping intensity percent 150
d. Area irrigated acres
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
ESTIMATE OF CLPIT;L CCOST LCTRIFICATION (Foreign Cost expressed in U.S. Dollars) SCHZDULE ONE
$(000) Rs(1000) Zq. t(1000)
1. Construction of Power Facilities
a) Transmission line 396 812 567
b) Substations (less transformers) 3,772 8,716 5t603
c) Power transformers 1,188 990 1,396
d) Distribution lines 5,102 13,996 8,042
e) Transformers and services 3,308 5,311 4,424
f) Land 88 18
Total 13,766 29,913 20,050
2. Constructionplant, equipment and
facilities furnished by XAPDA:
a) Camps and facilities 5 400 89
b) Transportation equipment 220 46
c) Spare parts 6 10 8
d) Engineering equipment 3 3 4
Total 14 633 147
3. Administration, engineering and 2*967 4,582 3,030
4. Contingencies 2,067 4,582 3,030
5. Customs duties and sales taxes 17,693 3,717
6. Interest during construction 14,308 3,006
TOTIAL CLPITLL COOT 17,914 71t711 32,979
3SHDUTL T O (LT CN)
ANNUAL =P PNDITU2 OFCi C.PITL COST
(Values in Thousands)
First Year Second Year I Third Year I Fourth Year I Total
I, Construction of Power Z R Rs
Facilities 1,377 2,991 2,754 5,982 6,881 14,958 2,754 5,982 13,766 29,913
2. Construction Plant, equipment 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 t1,130 520 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 3t800 14,065 7,921 23,511 3,768 8,366 17,914 57,403
---------------------------------------------------------------------------------aInterest 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 135 501 180 668 180 668 495 1,837
282 838 376 1,117 658 1,955
134 298 134 298
Annual Total 86 408 250 1,045 577 2,050 805 2,627 1,718 6,130
Total Interest (3,006)
(2q. $) ...
SCH DUL THRE (BL&CTRIFICATION) Amortization of Capital Cost (Values in Dollars)
Dollar component 17,914,000
Rupee Component (less interest) 12,059,000
Interest during construction 3,006,000
Total Construction Cost 32,979,000
Dollar Component 17,914,000
Rupee Component 15,065,000
Loan Amortization 40 years 44 interest
Annual payment dollar component 1,008,000 Annual payment rupee component 848,000
Total annual payment 1,856,000
Notet Amortization of the power facilities will be paid out of
1PDA Power Account. Rs .025 per KWH is more than sufficient
to meet above cost of amortization.
ESTIMATi OF CAPITAL COST RECLAMATION IT2MS
(Foreign Cost Expressed in U.S. Dollars)
$(1000) RS(1000) Eq. $(1000)
1. Tubewell and appurtenant Works
a) Tubewell Construction 13,917 24,945 19,158
b) Pumps, Motors, Controls 4,925 13,958 7,857
c) Spare parts 492 1,396 785
d) Pumphouse and quarters 371 16,351 35,806
e) 77ater distribution works 5,946 1,249
f) Land 1,115 234
Sub-total 19,705 63,711 33t089
2, Construction plant equipkent and
facilities furnished by 7APDA:
a) Camps and facilities 45 3,440 768
b) Transportation equipment 1,980 416
c) Spare parts 54 90 73
d) Engineering equipment 27 27 32
Sub-total 126 5,537 1,289
3. Administration, engineering and
supervision (15%) 2,975 10,387 5,157
4. Contingencies (15%) 2,975 10,387 5,157
5. Customs duties and sales taxes 12,400 2,605
6. Interest during construction 24,906 5,232
TOTAL CkPITAL COST 25,781 127,328 52,529
7. Investigations, planning and
project preparation (1i%) 387 1,910 788
8. Less salvage of construction
vehicles and equipment 2,500 525.
NET BOOK CAiPITAL COOT 26,168 126,738 52,792
ANNUAL 2UXPNDITURES FOR CAPITAL TOPK 2CLA1ATIN IT.S (Values in Thousands)
-------------------------------------------------------------------------------------------------First Year I Second Year I Third Year I Fourth Year I Total
Rs R9_ Rs Rs Rs
Tubewell Construction 5,280 11,000 52800 18t500 51800 18,500 21825 152711 19,705 631711
Construction plant, equipment 72 4,450 54 1,087 126 5,537
and supervision 750 29600 750 2,600 750 2,600 725 2,587 2,975 10,387
Contingencies 750 2,600 750 2,600 750 2,600 725 2,587 2,975 10,387
Custom Duties & Sales tax 2,740 3,220 3,220 3,220 12,400
Total 6,852 23t390 7,354 28,007 71300 26,920 41275 24,105 25,781 102,422
Interest during Construction 244 833 325 1,111 325 1,111 325 1,111 1,219 4,166
44%o on 3/4 amount first 262 998 349 1,330 349 1,330 960 3,658
year, on full amount
other years 260 959 347 11279 607 2,238
152 859 152 859
Total Interest 244 833 587 2,109 934 3,400 1,173 4,579 2,938 10,921
(quivalent Dollars) (5232)
AMORTIZATION OF PROJCt COSTS (Values in Dollars)
Dollar component 25,781,000
Rupee Component less interest 21t517,000
Interest during Construction 5,232,000
Total Construction Cost 52,5309000
(Total Capital Cost Zchedule 1)
Interest during development 11,230,000
Total loan value 63,760,000
Loan amortization in 35 years
after development @4( % interest 3,772,000
ANUAL CAP IT.L CHARG3S
(Value in Dollars)
Year Dollar Component Rupee Component Total
1 244,000 175,000 419,000
2 587,000 443,000 1,030,000
3 934,000 714t000 1,648,000
4 1,173,000 962,000 2,135,000
End of Construction
5-9 1,224,000 p.a. 19022,000 p.a.
End of Development
Principal & Interest Principal & Interest
10-44 1,525,000 p.a. 2,247t000 p.a. 3,772,000 p.a.
D -J1", "40 P
OP].;'ATION AND KAINT2NANCE 2QUIPNT AND FACILITIES
Component Rs component Eq.
I. Initial Cost-a) Offices and housing 2,000,000 420,000
b) Maintenance equipment 375,000 480,000 476,000
c) Transportation equipment 800,t000 168,000
d) Communication equipment 45,000 60,000 58,000
e) Engineering equipment 30,000 18,000 34,000
Life Annual Cost
2/ (Years) E. .
II. Replacement of equipment
a) Offices and housing 20 33,000
b) Maintenance equipment 8 73t000
c) Transportation 5 39,000
d) Communication 10 79000
e) Engineering equipment 5 8,000
f) Irrigation tubewell
(la and d, Schedule 1) 15 1,146,000
g) Pumps, Motors & Controls
(lb, Schedule 1) 15 392,000
/ 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.
ANNUAL COST OF OP ~ATICN AND MINTNANC.
Year No. of I estimated Annual Cost I
I Tube- I0 & M Tubewells (Cost of Power Maintenance of Total Acres Served
wells / / equipment and I I
S. I Vehicles I I
No. Rs Rs RS RS Acres
1 396,000 396,000
2 120 216,000 411,000 595000 t1,222,000 54,000
3 960 1,728,000 3,810,000 790,000 61328,000 500,000
4 2160 3,888,000 7,315t000 790,000 11,993,000 960,000
-End of Construction Period
5 2973 5,351,000 15,404,000 875,000 21,630,000 1,350,000
6 2973 5,351,000 18,484,000 875,000 24,710,000 1,620,000
7 2973 5,351,000 21,565*000 875,000 27,791,000 1,890,000
8 2973 5,9351,000 24,646,000 875,000 30,872,000 2,160,000
9 2973 5,351,000 26,357,000 875,000 32,583,000 2,310,000
End of Development Period
10-44 2973 5,351,000 28,970,000 875,000 32,583,000 21310,000
-------------------------------------aaa---------- ------ ~------- -------- ----------NOTE: 1/ Based on annual 0 & M Cost of Rs 1800/tubewtell.
2/ Cost of power based on Rs 0.07 per KUH, and a pumping head of 40 feet during construction and
60 feet thereafter.
PROJECT COST ZCOV RY AND C 4H FLOW
(Value in Rupees)
-------------------------------- ----- -------------------------------------------------------Year I Project I Estimated Project Cost I Annual I Accumulated
I Cost I 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)
1 396s000 396,000 (396,000) (3961000)
2 972,000 1,222,000 1,222,000 (250,000) (646,000)
3 9,G90000 6,328,000 6,328,000 2,672t000 2,026,000
4 17,280,000 11,993,000 11,993,000 51287,000 72313t000
End of Construction Period
5 24,300,000 29,710,000 29t710,000 (5,410,000) 12903,000)
6 29t160,000 32,790,000 32,790,000 (3,630,000) (1,727,000)
7 34,020,000 353871,000 35,871,000 (1t851,000) (3,578,000)
8 38,880,000 38,952,000 38t952,000 (72,000) (32650,000)
9 41,5801000 40,663,000 40,663,000 917,000 (2,733,000)
End of Development Period
10-44 60,060,000 pa. 40,663,000 p,a. 17,955,000 p.a. 56,618,000 p.a. 1,442,000 p.a.
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.
N K I A' N G
-I.-H I Mi A A 0',
APqI414 J A /
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IIIA -I.1-. U.-A 0
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A, 4 0 00 4 0
q. International and Provincial Boujndaries
Is Indus Basin Boundary
I W Indus Plains within West Pakistan
-212 t.. EsT PAKISTAN
1WA) 'R AND POWER DEvELopUENT ATHORIT y
7 TI, ON 4540 KALAABACH, INC. ENGINEERS
o SALINITY CONTROL AND RECLAMATION
*~..*............'PROJECT NO. 4
MAP OF INDUS PLAINS
SI .1,71 171 7I W 111
00, 1 VE P +
10 '.A B Q4D'RABAD
RA ft A 6E C, It A
KNANKi c if if
o1olp r N.Y
to Colo,,* WAZIRABAO
'r E It ..... 40
111,411 0'US 46 Ci
A A V a 4
LOWER RECHNA CENTRAL RECHNA UPPER RECHNA
(PROJECr ONEI (P*OJECT FWN)
Jondi.W SAO$ of Dy.
RECHNA DOA B C"UHARKANA Shekhan
Salinity Control and Reclamation Project No. I (Central Rechnal 11 9 1. -V
was undertaken by W A. A 0. A. in 1.95 9 and completed in 196Z. It comprises i7te tubowells which together with Is# tubewalls constru fed under an earlier program by the Irrigation Department -----
bonsfitc; gross area of 1, ff4,000 acres. 1K URA
Reads, Metalled 11
tA WA LA Moqb.1P.
Roads, UnmotalkIf R I V R
Railways SHANDARA Dy. A
Towns and Villaw
International end Provincial 8oundaries -A
Links and Main Canals
SIKHAN asho, PV"
armefts, Distrib.tatie; and Iwinors
"16649baAft Rivers At 4
Abandoned Chanotts it
Barrage or Headworks 10
so,*-- Project 8oundaries to L SCALE OF MILES