World Bank Considers $72 Million Additional Financing for Sindh Barrages Project

The World Bank is considering to extend additional financing covers of around $72 million to bridge the financing gap in the “Sindh Barrages Improvement Project”.

Official documents revealed that the World Bank’s Board of Executive Directors is scheduled to consider ‘Second Additional Financing (AF) for the Sindh Barrages Improvement Project’ next month with the project development objectives of improving the reliability and safety of the Guddu barrage and strengthen the Sindh Irrigation Department’s capacity to operate and manage the barrage.

The “Sindh Barrages Improvement Project” of worth $326.6 million is facing financing gap of about $72 million and will require either government of Sindh counterpart funding or additional IDA funding to meet contractual obligations in the medium-term. Official documents of the World Bank revealed that due to accumulated delays, completing the works at Guddu and Sukkur will require more time beyond the current project closing date of June 30, 2024.

The project was approved in 2015 with the original closing date of 22 December 2020, which was later revised to June 30, 2024.
The AF will provide a $71.7 million IDA credit to close the financing gap for the completion of activities. There are no new activities introduced under this AF.

Component A – Rehabilitation of Guddu and Sukkur Barrages

(Revised total cost: US$ 286 million equivalent, of which IDA $267 million equivalent). This component will finance the rehabilitation and modernization of Guddu and Sukkur barrages and associated structures.

These investments will not only improve the reliability of the water supply to the 14 main canals fed by the barrages but also restore the flood passage capacity of the barrages. The project area is highly vulnerable to climate change-induced drought and flooding, with high-risk levels for several flood events. Thus, the investments will help build climate resilience for infrastructure and project beneficiaries.

Rehabilitation and modernization of the Guddu Barrage and its associated structures, comprising, inter alia:

1. gate replacement works including all mechanical and electrical equipment;
2. concrete repairs along the upstream gate grooves and rehabilitation of both fish ladders;
3. removal of the left pocket dividing wall and construction of a new left pocket dividing wall from steel sheet piles and concrete caissons;
4. river training works through construction of a left bank spur and strengthening of the upstream existing river training works;
5. construction of offices for the operation and maintenance staff at the Guddu barrage, including laboratory, residential buildings, dispensary, mosque, recreational facilities, access roads and all supporting service infrastructure;
6. implementation of the Environmental and Social Management Plan for Guddu Barrage (but expressly excluding land expenditures and compensation for land acquisition related to the implementation of a resettlement instrument or cash compensation and other assistance paid in cash for involuntary resettlement); and
7. consulting services for construction, supervision, quality control and construction management support.

Rehabilitation and modernization of Sukkur Barrage and its associated structures, comprising, inter alia:

1. gates and mechanical works;
2. electrical work;
3. repairs to the main barrage and canal head regulator;
4. foundations inspection and repairs;
5. dredging works;
6. provision of a dredger;
7. provision of surveillance equipment and instrumentations;
8. construction and renovation of offices for the operation and maintenance staff at the Sukkur Barrage;
9. implementation of the Environmental and Social Management Plan for Sukkur Barrage (but expressly excluding land expenditures and compensation for land acquisition related to the implementation of a resettlement instrument or cash compensation and other assistance paid in cash for involuntary resettlement); and
10. cconsulting services for construction, supervision, quality control and construction management support.

Component B – Improved Barrage Operations

(total cost: US$ 9.00 million equivalent, of which IDA US$ 9.00 million equivalent).

This component will finance an institutional capacity-strengthening program to improve the operation and maintenance of the three barrages. Activities will include technical assistance, training, incremental operating costs, and procurement of works, equipment, and logistics facilities to strengthen BMU’s capacity to

1. measure and control water flow into the main canals using improved barrage operating rules,
2. reduce sediment entries into the canals and thereby increase water conveyance capacities,
3. strengthen emergency preparedness towards extreme events, including promoting women’s access to early warning information, and
4. improve structural monitoring and maintenance of the three barrages.

All these activities will directly contribute to improving the resilience of the Sindh province to extreme flood and drought events.

Component C – Technical Studies

(Revised total cost: US$ 7.50 million equivalent, of which IDA $ 6.50 million equivalent).

This component will finance studies that will inform the subsequent investment phases for the improvement of Barrage safety and performance, including

1. a flood routing study for the entire length of the Indus River in Sindh to inform the Emergency Preparedness Plans of the three Barrages in case of climate change-exacerbated large flood events,
2. a detailed hydraulics model study at Sukkur to determine the optimal design for the river training works and a detailed design study of these works including the environmental and social impacts assessment,
3. a detailed operational improvement and safety assessment study for Kotri Barrage, including the identification of critical needs for repairs and upgrading, preparation of maintenance contracts, and the development of an O&M plan, and
4. a study to select the future site for a new Barrage at Sukkur (for when the current Barrage will need to be replaced). All these studies will include relevant climate change impact assessment to inform the designs.

Component D – Riverine Management

(Revised total cost: $1.70 million equivalent, of which IDA $1.50 million equivalent).

This component will finance activities aiming at

1. improved dolphin management and conservation,
2. restoration of fish migration, and
3. control of the flow downstream of Kotri Barrage. It will help mitigate the impact of drought events on indigenous species.

Component E: Project Management

(Revised total cost: $10.50 million equivalent, of which IDA $7.00 million equivalent).

This component will support the incremental operating costs for maintaining the Project Management Office (PMO) under the Sindh Irrigation Department and the Project Coordination and Monitoring Unit (PCMU) throughout the extended project implementation period, including technical assistance to guide the procurement activities and monitor the civil works progress; training; monitoring and evaluation of the project’s results framework and overall project impacts, fiduciary and safeguard compliances; and annual external audit.