ISLAMABAD, July 27: Pakistan and the World Bank on Tuesday signed a credit agreement amounting to SDR 41 million ($61.14 million equivalent)on water management project in Sindh.

The legal documents were signed here by Dr Waqar Masood Khan, Secretary Economic Affairs Division, and Abid Hasan, World Bank acting country director. The agreement was signed by Sindh agriculture secretary Sabhago Khan Jatoi.

The objective of the project is to enable the farmers to better manage irrigation water and increase agricultural productivity by improving the efficiency, reliability and equity of irrigation water distribution, supporting agricultural productivity enhancement measures to complement and enhance the benefits of improved water management; and enhancing the long- term financial sustainability of the irrigation system by fostering the growth of self-sustained water course associations (WCAs) and farmer organizations (FOs).

The credit amount has to be repaid over a period of 35 years including a grace period of 10 years. Besides the principal amount, only a service charge of 0.75 percent per annum and a commitment charge of 0.5 percent will have to be paid. The project will be completed by June 30, 2008. - APP