Water Sector Capacity Building and Advisory Services Project (WCAP) is of a highly technical nature project aiming to improve management and investment planning of water resources in the Indus River Basin and strengthening & sustainability of Pakistan’s water sector. The current project is designed to help the Government of Pakistan on a) on policy and technical issues necessary for the investment program, b) issues related to water resources management in the Indus River System, allowing a transparent way for water forecasting, availability, distribution and accounting thus building trust.
The World Bank has a long history of partnership and collaboration with Pakistan. In particular, the Bank is seen as a trusted partner in the water sector and a coordinator for international financial institutions and other development partners. As a key partner and principal donor, it has provided support to several main interventions in the development of the Indus Basin Irrigation System (IBIS). The Government of Pakistan has received a total credit of USD 72.95 Million from the World Bank towards funding Indus 21 Water Sector Capacity Building and Advisory Services Project (WCAP) in two phases. Phase-I of the project costing USD 38 Million was approved by World Bank on June 06, 2008 and subsequently the project costing Rs. 3078 Million was approved by Executive Committee of the National Economic Council (ECNEC) on November 06, 2008 with a completion by February 28, 2014. The loan became effective on September 22, 2008. However, the completion of Phase-I delayed by two years and was finally closed on January 31, 2016.
Given the critical implications of water and energy for the country’s economic development and in view of the achievements of WCAP Phase-I, discussions took place with the World Bank’s project implementation support mission that visited the Project in September 2012 and September 2013 for supporting additional activities through the Project to further strengthen the achievement of Project Development Objectives (PDO). For that Project Management and Policy Implementation Unit (PMPIU) prepared PC-II of WCAP Phase-II. Phase-II of the project costing Rs. 4581.060 Million was approved from ECNEC on January 12, 2015 and subsequently the project costing USD 34.95 Million was approved by World Bank on January 27, 2016. The loan became effective on February 05, 2016. However, the completion of Phase-II will be on June 30, 2021. The total approved cost from ECNEC of the revised project was Rs. 7659.060 Million equivalent to USD 83.81 Million inclusive of Phase-I and Phase-II.