Improvement of Water Resources Management in Khatlon Region Project

INFORMATION ON THE PROJECT 

"IMPROVEMENT OF WATER RESOURCES MANAGEMENT IN KHATLON REGION"

Together with representatives of relevant ministries and departments, representatives of the Islamic Development Bank, the Saudi Development Fund and the OPEC Fund for International Development, negotiations on the project "Improving Water Resources Management in Khatlon region" were held on October 19, 2018 and a protocol of negotiations was signed. The aim of the project is to improve the living standards of the rural population by improving the management of water resources resistant to climate change, which will increase agricultural production, improve food security, increase farmers' incomes and improve access to water supply. The total amount of the project is 53.50 million US dollars.

Pilot areas of the project: The districts of Temurmalik, Dangara, N.Khusrav and the city of Kulyab, Khatlon region.

The project consists of the following components:

Component A.

Improvement of Water Resources Management Infrastructure: scope includes (i) Construction and upgrading irrigation and drainage schemes covering 3,000 ha land in Dangara Valley; (ii) Modernization of irrigation pumping stations with efficient pumps in selected project districts to improve water supply to 16,800 ha arable land, including reclamation of 5,300 ha land currently not cropped; and (iii) Construction and rehabilitation of rural water supply system; and rehabilitation of sanitation facilities in social institutions (schools, kindergarten, health centers, etc) in selected districts.

Component B.

Access to Islamic Finance: This component envisions (i) extending shariah compliant line of finance (including micro-finance) to farmers and rural people to support them in agriculture value chain financing (in production, processing and marketing) and in rural development, (ii) consultancy service in capacity building in Islamic finance, and (iii) supporting Advocacy and Monitoring and Evaluation Units to promote Islamic finance.

Component C.

Sustainable Management of Water Infrastructure: the project considers (i) supply of key O&M machinery and equipment for local irrigation water management authorities and water utility operator, and (ii) Capacity development and institutional strengthening in water resources management.

Component D

Consultancy Service (Detailed Design and Supervision): The service includes (i) preparation of detailed engineering design including environmental assessment, expertize review; and (ii) consultancy service for design review, tendering, construction supervision and contracts management.

Component E

Project Management: This component considers financing the project management expenses related to (i) PIU support (staff salary, office equipment, operating and domestic travel costs); (ii) project start-up workshop, PIU staff trainings; and (iii) financial audit service.

The Project development objective is to improve the livelihood of the rural population, through improvement of water resources management with resilience to climate change impacts. This will lead to increase in agriculture production, food security, increase in farm incomes, creation of jobs and alleviating the poverty.

Key development result of the project to improving livelihood of rural communities in project area vulnerable to climate changes Specifically, the project outcomes are as follows:

(i) Modernization and upgrading irrigation schemes covering 19,800 ha arable land benefiting about 1,500 smallholders/farmers;

(ii) Construction/ rehabilitation of rural water supply system to improve access to water supply for 60,000 rural people;

(iii) Providing access to Islamic finance to contribute in development of agriculture value chain (production, processing and marketing) and support in rural development;

(iv) Strengthening the capacity of local water operators and users, as well as public awareness activities in promoting efficient water use.

(v) The project is expected to create at least 2,000 new permanent jobs and seasonal job opportunity for about 15,000 rural people.

We are implementing component B The implementation of component B - access to Islamic finance “within the framework of this project is entrusted to the state institutions” Center for the implementation of the project of access to green Finance and rural Development funds " under the Ministry of Finance.

The total amount of $5.04 million. It will be fully funded by the Islamic Development Bank. Within the framework of this section, 4.5 million US dollars for credit lines, in accordance with the requirements of Islamic banking provided for the population by credit organizations of the republic, the remaining funds will be used for the current costs of the project and other consulting services.