Contacts: In Islamabad: Shahzad Sharjeel (92-51) 2279641 ssharjeel@worldbank.org In Washington: Erik Nora (202) 458 4735 enora@worldbank.org WASHINGTON, June 26, 2008 ─ The World Bank today approved a US$38 million IDA credit to the Government of Pakistan, to support management and development of water resources in the Indus River Basin. This, along with urgent reforms, is critical to meet the longer-term impact of rising food and energy needs. The Indus Basin Irrigation System is the largest contiguous irrigation system in the world and Pakistan relies on it to provide both basic food security and to supply water for all sectors of the economy. However, this massive infrastructure network is deteriorating and needs to be rehabilitated. Equally important will be reforms to improve the allocation of water and its efficient use. The Water Sector Capacity Building and Advisory Services Project aims to improve the management of Pakistan’s water resources and strengthen those federal institutions involved in water resource planning, management, and development. The project will address both institutional and human resource capacity building, as well as fundamental, technical and investment issues associated with large water infrastructure. “Water sector issues are enormous and complex and addressing them will require a series of investments and long-term commitment”, said Yusupha Crookes, World Bank Country Director for Pakistan. “We hope this project will build the foundation for the renewal and sustainability of the water sector, which in turn will lead to better water services and improved irrigation and hydropower development.” The project aims to: - strengthen the Indus system’s institutional and regulatory framework
- bolster the technical capacity of the Ministry of Water and Power, the Indus River System Authority, the Water and Power Development Authority and the Planning Commission
- support the development of public-private partnerships in order to mobilize hydropower investments
“The development and management of the Indus Basin is a huge challenge, requiring very high levels of administrative, engineering and scientific capability,” said Masood Ahmad, World Bank Lead Water Resources Specialist and project team leader. “This project will support water management and distribution, benefit sharing mechanisms, and financing strategies to help mobilize crucially needed investments in the water and hydropower sectors.” The Bank has a long history of partnership and collaboration with Pakistan in the water sector. The Bank has supported more than 48 operations in irrigation, drainage, water resources development, and the power sector. The credit, from the International Development Association (IDA), the World Bank’s concessionary lending arm, carries a 0.75% service fee, a 10-year grace period, and a maturity of 35 years. For more information on the Bank’s work in Pakistan, please visit http://www.worldbank.org.pk
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