Former Deputy Chairman Planning Commission Sartaj Aziz told Business Recorder that the reduction was made in all likelihood after a careful review of the outlay in the five year plan; and the expected limitation on expenditure by the International Monetary Fund (IMF) as and when the government procures the bail-out package.
However allocation for water projects for other provinces was unchanged: Punjab Rs 268 billion, Sindh Rs 225 billion and Khyber Pakhtunkhwa Rs 150 billion.
The PTI government reduced the proposed amount from Rs 1,304.617 billion to 1,256.617 billion (federal govt Rs 561.617 billion and provincial govts Rs 695 billion) in the five year plan.
Documents of the five year development plan (original and revised), available with Business Recorder, reveal an allocation of Rs 1,256.617 for the construction of large and small dams and other water development projects with the help of private investment during the next five years - Rs 561.617 billion from the federal government and Rs 695 billion from provincial governments.
Projects would be prepared and offered for private investment through mechanisms such as Build Operate and Transfer (BOT), Build Own Operate (BOO) and Build Own Operate and Transfer (BOOT). Direct investment in the form of loans as well as equity will be supported and establishment of Special Purpose Vehicles would be encouraged to attract financing through bonds/debentures.
Water shortage has emerged as an extremely serious issue for the country, and as per the five year plan the government will make available additional funds with support from multilateral banks and other international development agencies, as well as bilateral donors. Levying additional charges on consumers to fund capital investment on the pattern of the Neelum-Jehlum Hydropower project will be replicated for other projects. Innovative financing options will be explored for the Diamer-Bhasha Dam and other similar projects. Public-private sector partnership will be pursued as the preferred mode of financing.
According to the National Finance Commission (NFC) award, provinces are receiving a higher share from the divisible pool therefore provincial governments would be required to provide financing for irrigation projects through Annual Development Programme (ADP). The private sector may take technology based commercial projects such as high efficiency irrigation. The farmers would take over rehabilitation of water courses.
The Plan envisages Rs 561.62 billion for major on-going and future interventions in water resources development of federal program for the next five years including Rs 223.68 billion for Bhasha Dam, Rs 108.798 billion for medium/small dams, Rs 64.75 billion for canals, Rs 49.656 billion for drainage system, Rs 48.962 billion for irrigation system improvement, Rs 14.2 billion for flood protection program, Rs 40.080 billion for new initiative (canals and research) and Rs 13 billion for miscellaneous scheme.
The documents further revealed that Punjab province would be required to finance Rs 268 billion to meet major water sector's challenges including: (i) integrated water resources management through IWRM framework and operation and up-keep of the irrigation system of the province; (ii) sustainable management of water resources and optimal use of water resources through equitable distribution of irrigation water supplies; (iii) flood management and promoting the participation beneficiaries in the management of irrigation and drainage system; and (iv) climate change and transboundary water issues.
Khyber Pakhtunkhwa would contribute Rs 150 billion for water strategies of water management and major water sector's challenges including: (i) irrigation system sustainability, (ii) management of flood water and harnessing of hill torrents, (iii) ground water regulation and water pricing, (iv)flood drought management, (v) public private partnership and (vi) institutional strengthening and capacity building.
Sindh would provide Rs 225 billion to overcome the water sector's challenges including: (i) tackling water scarcity issue through both augmentation and conservation i.e. by construction medium and large dams, making more efficient and sustainable use of water and existing irrigated areas, (ii) climate change and inter-provincial issues, (iii) control the impact of water logging, salinity and floods hazards, and (iv) managing (in terms of quantity) drainage, municipal and industrial effluent in an environmentally safe manner.
According to the documents, Balochistan would finance Rs 52 billion for (i) tackling water scarcity issues through both augmentation and conservation i.e. by constructing medium/large dams and improving water use efficiency through agricultural engineering measures, (ii) regulating ground water pumpage and its management, (iii) ensuring sustainable water supply, particularly to urban hub of Quetta and costal area e.g. Gwadar and (iv) enhancing public sector investment including public-private partnership (PPP) for construction of small and medium size dams and coping water scarcity through all possible means.
The total current water use for domestic and municipal purpose in both urban and rural areas is estimated at 4.5 Million Acre Feet (MAF). By 2025 requirements for water supply, potable water and sanitation requirements are estimated to be 10.5 MAF resulting in shortfall of 6 MAF.
