World Bank to provide $100m for Punjab

Published December 28, 2006

ISLAMABAD, Dec 27: The World Bank would provide $100 million to the Punjab Irrigation System Reform Programme (ISRP) to make intra-province water distribution more transparent.

The funding would also ensure sustainability of the existing hydraulic infrastructure in the province, official documents say.

Through the loan, the bank wants to improve service delivery by scaling up irrigation management transfers to farmer organisations, benchmark performance, communications with stakeholders and mainstream environmental and social safeguards in organisation and management activities.

The financial assistance would also enhance productivity through policy reform and provide incentives for adopting new technology, improving markets and restructuring research.

The Punjab Irrigation System Reform Programme has four pillars: to improve the management and maintenance of the irrigation system to ensure its long-term physical and financial sustainability; to make intra-province water allocation and distribution more transparent; to improve the quality, efficiency and accountability with which irrigation services are delivered; and to improve water use efficiency and on-farm productivity.

The financing will support a wide range of improvements in agriculture in Punjab through strengthening of institutions, and the introduction of systems and practices to provide adequate, equitable and reliable irrigation supplies.

The expected results are improvements in the management of asset stock, the management of water resources, irrigation service delivery, land productivity and water use efficiency. These improvements are expected to lead to environmentally positive outcomes, including some reduction in water-logging and salinity.

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