Technical Assistance Report

Project Number: 51079-001 Transaction Technical Assistance (TRTA) October 2019

Islamic Republic of Afghanistan: Preparing the Water Resources Development Sector Project This document is being disclosed to the public in accordance with ADB's Access to Information Policy.

CURRENCY EQUIVALENTS (as of 10 September 2019)

Currency unit – afghani (AF) AF1.00 = $0.012735

$1.00 = AF78.5228

ABBREVIATIONS ADB – Asian Development Bank ADF – Asian Development Fund MRRD – Ministry of Rural Rehabilitation and Development O&M – operation and maintenance OP – operational priorities SPS – Safeguard Policy Statement TA – technical assistance

NOTE In this report, “$” refers to United States dollars.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Vice-President Shixin Chen, Operations 1 Director General Werner Liepach, Central and West Asia Department (CWRD) Director Donneth Walton, Environment, Natural Resources and Agriculture Division,

CWRD Team leader Frank Radstake, Principal Water Resources Specialist, CWRD Team members Mohammad Hanif Ayubi, Senior Project Officer (Natural Resources and

Agriculture), CWRD Andrew Bennett, Counsel, Office of the General Counsel Marie Stephanie Igaya, Project Officer, CWRD Christy Planco, Senior Operations Assistant, CWRD Nathan Rive, Climate Change Specialist, CWRD Thomas Robinson, Procurement Specialist, Procurement, Portfolio and

Financial Management Department Mary Alice Rosero, Social Development Specialist (Gender and Development),

CWRD Syed Asim Ali Sabzwari, Environment Specialist, CWRD Aida Satylganova, Social Development Specialist (Resettlement), CWRD Hans Woldring, Principal Natural Resources and Agriculture Specialist, CWRD Peer reviewer Jelle Beekma, Senior Water Resources Specialist, Sustainable Development

and Climate Change Department

CONTENTS

Page TRANSACTION TECHNICAL ASSISTANCE AT A GLANCE

I.  THE ENSUING PROJECT 1 

II.  THE TECHNICAL ASSISTANCE 3 

A.  Justification 3 B.  Outputs and Activities 4 C.  Cost and Financing 4 D.  Implementation Arrangements 4 

III.  THE PRESIDENT'S DECISION 5

APPENDIXES

1. Cost Estimates and Financing Plan 6 

2. List of Linked Documents 7 

I. THE ENSUING PROJECT 1. Background. The Government of the Islamic Republic of Afghanistan (Afghanistan) has requested the Asian Development Bank (ADB) for support in strengthening water resources management in rural areas. Reduced water security, and subsequent low agricultural productivity, has a direct impact on Afghanistan’s growth prospects. For example, a severe drought in 2018 contributed to the decrease of the gross domestic product from 2.7% in 2017 to 2.2% in 2018.1 Higher water security in rural agricultural areas will increase agricultural productivity, provide better livelihood opportunities, and improve the food security situation in Afghanistan. 2. Agriculture and other rural-based activities remain the predominant engine of economic growth for Afghanistan. The agriculture sector contributed about 20% to the national gross domestic product in 2017 and provides employment and livelihood to at least 40% of the population. Women account for nearly 43% of the sector’s labor force and play a critical role in agriculture and food security. However, Afghan women have little access to decision-making over agricultural inputs, outputs, and product markets, and are still under-represented in local community development councils and water user associations.2 3. Considering that the population in Afghanistan is expected to grow from the current 31.6 million in 2018 to about 50 million in 2040, the Government is concerned about food security in the country.3 The coverage of irrigated agriculture declined from 3.1 million hectare in 1968 to less than 2.8 million hectare in 2016. Wheat production, a key indicator used for food security in Afghanistan, has been directly linked with the reliability of irrigation systems, particularly during the critical months of June and July. The 2018 drought caused the wheat production to fall by 71% in rainfed fields and by 6% in the smaller irrigated areas.4 4. Water resources in Afghanistan are under stress because of poor management and water shortages, particularly for irrigated agriculture.5 The subsequent low water productivity is a result of (i) outdated and inadequate rural irrigation infrastructure, (ii) limited capacity by communities to adapt to changing climatic conditions, and (iii) insufficient usage by farmers of technological innovations. Many local farmer communities need knowledge and resources to make a change and initiate more sustainable water resources management practices and ensure adequate operation and maintenance (O&M) arrangements for their local irrigation systems. 5. Government responses. The Government of Afghanistan initiated a number of national and regional programs to support rural communities with improving their development opportunities. Notably, the Afghanistan National Peace and Development Framework 2017-2021 highlights the need for comprehensive agricultural development in rural areas in Afghanistan.6 It highlights that increasing agricultural productivity requires significant multi-sectoral investments in irrigation resources, water management, improved planting materials, and best practices. 6. The National Comprehensive Agriculture Development Priority Program 2016-2021 and the National Irrigation Program 2016–2025 provide more detailed frameworks for agricultural

1 ADB. 2019. Asian Development Outlook 2019. Strengthening Disaster Resilience. Manila 2 Government of Afghanistan. 2016. National Comprehensive Agriculture Development Priority Program. Kabul. 3 Government of Afghanistan. 2016. Afghanistan National Peace and Development Framework. Kabul. 4 Government of Afghanistan. Personal communications. 5 Although most of the agriculture land is rain fed, around 98% of total water withdrawal is used for irrigation purposes. 6 Government of Afghanistan. 2016. Afghanistan National Peace and Development Framework 2017-2021. Kabul.

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sector development and reform.7 The Government promotes increasing investments in water management and water harvesting, with rehabilitation of large numbers of irrigation schemes, developing new irrigation networks, and building small water reservoirs. 8 More recently, a Presidential Decree (April 2019) confirmed the Government’s priorities to (i) improve water retention in the watershed (for irrigation and recharge), (ii) reduce and control runoff in the upper parts of the watershed, (iii) improve access to water and livelihoods of smallholder farm households, and (iv) increase reforestation to stabilize sloping lands and control erosion.9 7. To ensure the necessary long-term sustainability of rural investments, the government actively promoted community participation in the design, implementation and operation of rural irrigation and water management infrastructure. In particular, the Ministry of Rural Rehabilitation and Development (MRRD) successfully implemented multiple rural development programs.10 The key to success has been the application of community contracting and procurement, which require in-kind or material community contributions for small-scale infrastructure projects. 8. Remaining challenges. Notable progress has been made to support sustainable rural infrastructure, but a much larger effort is needed. Firstly, the number of small communities that need support largely outnumbers the coverage of existing programs. MRRD reported that over the last 3 years about 12,000 communities already benefitted from the Citizens’ Charter National Priority Program, but that an estimated 18,400 communities are still waiting for support. Technological innovations are not sufficiently reaching farmer communities. Improvements in water and energy efficiency could be introduced through the application of precision (laser) land leveling, sustainable usage of solar energy, and water balance studies using remote sensing.11 9. Adaption to a changing climate will remain a key requirement for rural communities.12 Current climate change models indicate significant warming across the country, and the increasing occurrence of extreme flood or drought events. Future higher temperatures in Afghanistan are expected to increase crop water demand by an estimated 5% (by 2030). Local irrigation systems are more often damaged by local floods, while increasing numbers of the traditional karizes systems are drying up due to the lack of upstream infiltration. 10. The proposed project. The proposed project (the Project) will support Afghanistan to strengthen water resources management in rural areas.13 The Project is expected to comprise 3 outputs (i) modernization of community based irrigation schemes, (ii) construction of small-scale rainwater harvesting structures for sustainable land management, and (iii) application of water and energy efficiency technologies for local water management. Support will include policy support and technical assistance to strengthen O&M and rural asset management, and (iii) to promote innovation.

7 Government of Afghanistan. 2016. National Comprehensive Agriculture Development Priority Program 2016–2021.

A strategic framework for agriculture sector development and reform. Kabul. Government of Afghanistan. 2016. National Irrigation Program 2016–2025. Kabul.

8 The Government’s Sector Framework is based on its Water Sector Strategic Framework (2006), the Revised Water Law (enacted in 2009), and the National Water and Natural Resources Development Program (2010).

9 Presidential Decree no. 237 dated 25 May 2019, supported through letter no. 962/835. 10 For example, ADB. 2012. Report and Recommendation of the President to the Board of Directors: Community Based

Irrigation Rehabilitation and Development. Manila; ADB. 2014. Report and Recommendation of the President to the Board of Directors: Northern Flood-Damaged Infrastructure Emergency Rehabilitation Project. Manila.

11 Precision (laser) land leveling can reportedly reduce water usage by 22%. 12 ADB. 2016. Economics of Climate Change in Central and West Asia – Adaptation component. Consultant’s Report.

Manila (TA 8119-REG). 13 The proposed project is in the country operations business plan 2020–2022 for Afghanistan. The project is proposed

for ADB’s grant program as standby for 2021 (firm for 2022).

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11. Output 1: Modernization of community-based irrigation schemes will support the repair and improvement, through community contracting, of existing community owned low-performing community schemes from canal intake up to the farmer inlet. Key activities will include (i) modernization and construction of small-scale civil works such as water control structures, desilting, and lining of canals; (ii) flood protection of irrigation systems; and (iii) strengthening of community development councils or water users’ associations. The process for the selection and implementation of the community contracting will be based on well-established MRRD procedures and practices. The procedures will be further refined, as needed, during the project preparation. 12. Output 2: Demonstration of climate resilient farming approaches will support communities to adapt to climate change impacts, and improve local watersheds. Key activities include (i) the development of water harvesting and storage structures; and (ii) rehabilitation and recharge of dried karizes; and (iii) soil conservation and other water related sustainable land management measures.14 The proposed structures will facilitate the improved management of scarce water resources and improved resilience to the impacts of extreme weather events, i.e. drought and floods. If feasible, the application of nature-based solutions will be promoted.15 13. Output 3: Application of water and energy efficiency technologies in local water management will support participating farmer communities in increasing the resource efficiency of their irrigation systems by introduction of appropriate new irrigation technologies. Key activities may for example include support for (i) increasing water productivity, including for example precision (laser) land leveling, drip and micro irrigation, and fertigation; (ii) the introduction of solar energy systems for agricultural production; and (iii) the establishment of advanced water monitoring systems, including the application of remote sensing. 14. These solutions or outputs will result in the following outcome: water productivity in rural areas improved.16 The project will be aligned with the following impacts: improved livelihood opportunities for rural communities and increased agricultural production. 15. The total preliminary project cost is $140 million, of which $100 million is currently expected to be financed by a $100 million Asian Development Fund (ADF) grant. Cofinancing is sought for an estimated $30 million.17 In-kind and material contributions from beneficiaries of the community contracting schemes are estimated at $10 million. The government’s contribution is initially estimated at $5 million, expected to comprise of government staff time, office space, meeting rooms, and utilities.

II. THE TECHNICAL ASSISTANCE A. Justification 16. The transaction TA will help the government prepare the project and develop the capacity to implement the ensuing project.18

14 A karize is a traditional underground water system to transport water from an aquifer or water well to the surface. 15 E.g. FAO. 2018. Nature-Based Solutions for agricultural water management and food security. Rome. 16 The design and monitoring framework is in Appendix 1. 17 Initial discussions were conducted with representatives of UK’s Department for International Development (DFID),

the Embassy of Japan, the Embassy of the Netherlands, the European Union, and USAID. 18 The TA first appeared in the business opportunities section of ADB’s website on 23 August 2019.

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B. Outputs and Activities 17. The major output of the assignment will be a project design which responds to government's needs and fulfill ADB requirements. The specific outputs and activities are summarized in Table 1.

Table 1: Summary of Major Outputs and Activities Major Outputs Delivery Dates Key Activities with Milestones

1. Preparation of the project design

Draft Final Report (September 2020) Final Report (February 2021)

1.1 Initial assessment and scheduling (Month 2) 1.2 Sector assessment and stakeholder analysis (Month 2) 1.3 Project technical design and appraisal (Month 9) 1.4 Economic and financial assessment (Month 9) 1.5 Detailed implementation plan (Month 9) 1.6 Climate Vulnerability Risk Assessment (Month 9) 1.7 Security assessment for fragile and conflict-affected

situations (Month 9) 2. Compliance

with safeguard and social policies

Draft Final Report (September 2020) Final Report (February 2021)

2.1 Social economic survey, consultations, and poverty assessment (Month 6) 2.2 Gender Action Plan (Month 9)

2.3 Social safeguards (including LARF) (Month 9) 2.4 Environmental assessment (IEEs, EMP, EARF) (Month 9)

3. Assessment of implementation capacity

Draft in the Interim Report (June 2020) Final in the Draft Final Report (September 2020)

3.1 Procurement risk assessment (Month 6) 3.2 Institutional capacity and training needs (Month 6) 3.3 Procurement capacity assessment (Month 6) 3.4 Financial management assessment (Month 6) 3.5 Risk assessment on fraud and corruption (Month 6)

EARF = environmental assessment and review framework, EMP = environmental management plan, IEE = initial environmental examination, LARF = land acquisition and resettlement framework. Source: ADB Estimate.

C. Cost and Financing 18. The TA is estimated to cost $1.5 million, which will be financed on a grant basis by ADB’s Technical Assistance Special Fund (TASF6). The key expenditure items are in Appendix 1. The government will provide counterpart support in the form of counterpart staff, office space for government staff, meeting rooms, and other in-kind contributions. The government was informed that approval of the TA does not commit ADB to finance any ensuing project. D. Implementation Arrangements 19. The Environment, Natural Resources and Agriculture Division of the Central and West Asia Department will administer the TA. The Ministry of Finance will be the executing agency. MRRD will be the implementing agency. TA implementation will be led by a project implementation unit under a central program management office, established in MRRD, with staff financed by the project and supported by project implementation consultants.19 A central program management office has been established already in MRRD for ongoing international funded projects, including ADB.20 The implementation arrangements are summarized in Table 2.

19 The specific consultant requirements will be assessed and decided during project preparation phase. 20 For example, ADB. 2018. Report and Recommendation of the President to the Board of Directors: Northern Flood-

Damaged Infrastructure Emergency Rehabilitation Project. Manila.

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Table 2: Implementation Arrangements Aspects Arrangements Indicative implementation period

November 2019–April 2021

Executing agency Ministry of Finance Implementing agency Ministry of Rural Rehabilitation and Development Consultants To be selected and engaged by ADB

Firm: FBS method, FTP with max 20 pages proposal, performance- based TOR

Project design consultants

$1,270,000

Individual (international): Individual selection method

Rural development specialist (4 person-months)

$90,000

Individual (national): Individual selection

Project implementation specialist (9person months)

$55,000

Procurement To be procured by consultants Request for quotations Computers, selected office and

security equipment (1 contract) $20,000

Request for quotations Field surveys (multiple contracts)

$200,000

Advance contracting Advertisement for the firm and individual consultants is anticipated prior to TA approval.

Disbursement The TA resources will be disbursed following ADB's Technical Assistance Disbursement Handbook (2010, as amended from time to time).

Asset turnover or disposal upon TA completion

Goods and equipment purchased will be turned over to the MRRD at the end of the TA.

ADB = Asian Development Bank, FBS = fixed budget selection, FTP = full technical proposal, MRRD = Ministry of Rural Rehabilitation and Development, TA = technical assistance, TOR = terms of reference Source: ADB Estimate

20. Close coordination and cooperation will be maintained with other stakeholders such as the Ministry of Agriculture, Irrigation, and Livestock, the Ministry of Energy and Water, and the National Environmental Protection Agency. Implementation arrangements for the ensuing project will be discussed and integrated into the final project design, depending on the final project scope and activities, and in consideration of efficiency of implementation. 21. Consulting services. ADB will engage the consultants following the ADB Procurement Policy (2017, as amended from time to time) and its associated project administration instructions and/or staff instructions.21 CWRD will select, supervise and evaluate the consultants. 22. ADB’s procurement. Procurement will follow the ADB Procurement Policy (2017, as amended from time to time) and the Procurement Regulations for ADB Borrowers (2017, as amended from time to time). The project design consultants will procure computers, selected office equipment, and security equipment, which will be handed over to the MRRD upon completion of the TA.

III. THE PRESIDENT'S DECISION

23. The President, acting under the authority delegated by the Board, has approved the provision of technical assistance not exceeding the equivalent of $1,500,000 on a grant basis to the Islamic Republic of Afghanistan for preparing the Water Resources Development Sector Project, and hereby reports this action to the Board.

21 Terms of Reference for Consultants (accessible from the list of linked documents in Appendix 2).

6 Appendix 1

COST ESTIMATES AND FINANCING PLAN ($’000)

Item Amount A. Asian Development Banka

1. Consultants a. Remuneration and per diem

i. International consultants 660.000 ii. National consultants 331.725

b. Out-of-pocket expenditures i. International and local travel 45.300 ii. Office space rental and related facilities 25.000 iii. Goods (rental and/or purchase)b 15.000 iv. Surveys 200.000 v. Training, seminars, and conferencesc 20.000 vi. Reports and communications 2.000 vii. Miscellaneous administration and support costsd 5.000 viii. Others (security) 5.000

2. Training, seminars, and conferences a. Facilitators 10.000 b. Travel cost of ADB staff acting as a resource person 15.000 c. Participants and Representation 10.000

3. Contingencies 155.975 Total 1,500.000

Note: The technical assistance (TA) is estimated to cost $1.5 million, of which contributions from the Asian Development Bank are presented in the table. The government will provide counterpart support in the form of counterpart staff, office space for government staff, meeting rooms, and other in-kind contributions. The value of the government contribution is estimated to account for 10% of the total TA cost. a Financed by the Asian Development Bank’s Technical Assistance Special Fund (TASF-6). b These include computers, printers, photocopiers, and security equipment. At the end of the TA, all goods and

equipment procured will be turned over to the MRRD. c These workshops, training, seminars, and conferences will be administered by the consultants. Costs may include

representation costs, such as food and beverages. d Includes interpretation and translation costs. Source: Asian Development Bank estimates.

Appendix 2 7

LIST OF LINKED DOCUMENTS http://www.adb.org/Documents/LinkedDocs/?id=51079-001-TAReport

1. Terms of Reference for Consultants

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TERMS OF REFERENCE FOR CONSULTANTS

I. INTRODUCTION 1. Background. The Government of the Islamic Republic of Afghanistan (Afghanistan) has requested the Asian Development Bank (ADB) for support in strengthening water resources management in rural areas. Reduced water security, and subsequent low agricultural productivity, has a direct impact on Afghanistan’s growth prospects. For example, a severe drought in 2018 contributed to the decrease of the gross domestic product from 2.7% in 2017 to 2.2% in 2018.1 Higher water security in rural agricultural areas will increase agricultural productivity, provide better livelihood opportunities, and improve the food security situation in Afghanistan. 2. Agriculture and other rural-based activities remain the predominant engine of economic growth for Afghanistan. The agriculture sector contributed about 20% to the national gross domestic product in 2017 and provides employment and livelihood to at least 40% of the population. Women account for nearly 43% of the sector’s labor force and play a critical role in agriculture and food security. However, Afghan women have little access to decision-making over agricultural inputs, outputs, and product markets, and are still under-represented in local community development councils and water user associations.2 3. Considering that the population in Afghanistan is expected to grow from the current 31.6 million in 2018 to about 50 million in 2040, the Government is concerned about food security in the country.3 The coverage of irrigated agriculture declined from 3.1 million ha in 1968 to less than 2.8 million ha in 2016. Wheat production, a key indicator used for food security in Afghanistan, has been directly linked with the reliability of irrigation systems, particularly during the critical months of June and July. The 2018 drought caused the wheat production to fall by 71% in rainfed fields and by 6% in the smaller irrigated areas.4 4. Water resources in Afghanistan are under stress because of poor management and water shortages, particularly for irrigated agriculture.5 The subsequent low water productivity is a result of (i) outdated and inadequate rural irrigation infrastructure, (ii) limited capacity by communities to adapt to changing climatic conditions, and (iii) insufficient usage by farmers of technological innovations. Many local farmer communities need knowledge and resources to make a change and initiate more sustainable water resources management practices and ensure adequate operation and maintenance (O&M) arrangements for their local irrigation systems. 5. Government responses. The Government of Afghanistan initiated a number of national and regional programs to support rural communities with improving their development opportunities. Notably, the Afghanistan National Peace and Development Framework 2017-2021 highlights the need for comprehensive agricultural development in rural areas in Afghanistan.6 It highlights that increasing agricultural productivity requires significant multi-sectoral investments in irrigation resources, water management, improved planting materials, and best practices.

1 ADB. 2019. Asian Development Outlook 2019. Strengthening Disaster Resilience. Manila 2 Government of Afghanistan. 2016. National Comprehensive Agriculture Development Priority Program. Kabul. 3 Government of Afghanistan. 2016. Afghanistan National Peace and Development Framework. Kabul. 4 Government of Afghanistan. Personal communications. 5 Although most of the agriculture land is rain fed, around 98% of total water withdrawal is used for irrigation purposes. 6 Government of Afghanistan. 2016. Afghanistan National Peace and Development Framework 2017-2021. Kabul.

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6. The National Comprehensive Agriculture Development Priority Program 2016-2021 and the National Irrigation Program 2016–2025 provide more detailed frameworks for agricultural sector development and reform.7 The Government promotes increasing investments in water management and water harvesting, with rehabilitation of large numbers of irrigation schemes, developing new irrigation networks, and building small water reservoirs. 8 More recently, a Presidential Decree (April 2019) confirmed the Government’s priorities to (i) improve water retention in the watershed (for irrigation and recharge), (ii) reduce and control runoff in the upper parts of the watershed, (iii) improve access to water and livelihoods of smallholder farm households, and (iv) increase reforestation to stabilize sloping lands and erosion.9 7. To ensure the necessary long-term sustainability of rural investments, the government actively promoted community participation in the design, implementation and operation of rural irrigation and water management infrastructure. In particular, the Ministry of Rural Rehabilitation and Development (MRRD) successfully implemented multiple rural development programs.10 The key to success has been the application of community contracting and procurement, which require in-kind or material community contributions for small-scale infrastructure projects. 8. Remaining challenges. Notable progress has been made to support sustainable rural infrastructure, but a much larger effort is needed. Firstly, the number of small communities that need support largely outnumbers the coverage of existing programs. MRRD reported that over the last 3 years about 12,000 communities already benefitted from the Citizens’ Charter National Priority Program, but that an estimated 18,400 communities are still waiting for support. Technological innovations are not sufficiently reaching farmer communities. Improvements in water and energy efficiency could be introduced through the application of precision (laser) land leveling, sustainable usage of solar energy, and water balance studies using remote sensing.11 9. Adaption to a changing climate will remain a key requirement for rural communities.12 Current climate change models indicate significant warming across the country, and the increasing occurrence of extreme flood or drought events. Future higher temperatures in Afghanistan are expected to increase crop water demand by an estimated 5% (by 2030). Local irrigation systems are more often damaged by local floods, while increasing numbers of the traditional karizes systems are drying up due to the lack of upstream infiltration. 10. Lessons learned. Ensuring effectiveness and sustainability of irrigation infrastructure has been acknowledged as a key challenge in ADB supported investments.13 Experiences in multiple MRRD community contracting projects, including those funded by ADB, and as compared with projects implemented by contractors, demonstrated that (i) overall costs are significantly

7 Government of Afghanistan. 2016. National Comprehensive Agriculture Development Priority Program 2016–2021.

A strategic framework for agriculture sector development and reform. Kabul. 8 The Government’s Sector Framework is based on its Water Sector Strategic Framework (2006), the Revised Water

Law (enacted in 2009), and the National Water and Natural Resources Development Program (2010). 9 Presidential Decree no. 237 dated 25 May 2019, supported through letter no. 962/835. 10 For example, ADB. 2012. Report and Recommendation of the President to the Board of Directors: Community Based

Irrigation Rehabilitation and Development. Manila; ADB. 2014. Report and Recommendation of the President to the Board of Directors: Northern Flood-Damaged Infrastructure Emergency Rehabilitation Project. Manila.

11 Precision (laser) land leveling can reportedly reduce water usage by 22%. 12 ADB. 2016. Economics of Climate Change in Central and West Asia – Adaptation component. Consultant’s Report.

Manila (TA 8119-REG). 13 ADB. 2018. ADB Support for Agriculture, Natural Resources, and Rural Development. Sector-wide Evaluation.

Reference Number: SAP:REG 2018-16. Independent Evaluation: SW-01. Manila.

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reduced,14 (ii) implementation time is generally reduced by several months, (iii) more local jobs are created and the involvement of women in the project activities is higher, and (iv) institutional arrangements are timely established to ensure sustainable O&M of the structures.15 11. Strategic Alignment. The Project will be aligned with ADB’s Strategy 2030, particularly for the operational priorities (OP) and operational plans that involve (i) addressing remaining poverty and reducing inequalities (OP1); (ii) accelerating progress in gender equality (OP2); (iii) tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability (OP3); and (iv) promoting rural development and food security (OP5). 16 The technical assistance (TA) will contribute to multiple Sustainable Development Goals (SDGs), including (i) promoting integrated water resources management and restoration of ecosystems (SDG 6), (ii) strengthening resilience and adaptive capacity to climate-related hazards and natural disasters (SDG 13), and (iv) halting and reversing land degradation (SDG 15).17

II. THE PROPOSED PROJECT 12. The project will support Afghanistan to strengthen water resources management in rural areas. The proposed project is expected to comprise 3 outputs (i) modernization of community based irrigation schemes, (ii) demonstration of climate resilient farming approaches, and (iii) application of water and energy efficiency in local water management. Support will include policy support and technical assistance to strengthen O&M and rural asset management and to promote innovation. 13. Output 1: Modernization of community-based irrigation schemes will support the repair and improvement, through community contracting, of existing community owned nonfunctional community schemes from canal intake up to the farmer inlet. Key activities will include (i) modernization and construction of small-scale civil works such as water control structures, desilting, and lining of canals; (ii) flood protection of irrigation systems; and (iii) strengthening of water user associations. The process for the selection and implementation of the community contracting will be based on well-established MRRD procedures and practices. The procedures will be further refined, as needed, during the project preparation. 14. Output 2: Demonstration of climate resilient farming approaches will support communities to adapt to climate change impacts and improve local watersheds. Key activities include (i) the development of water harvesting and storage structures; and (ii) rehabilitation and recharge of dried karizes, including erosion control and other water related sustainable land management measures. The proposed structured will facilitate the improved management of scarce water resources and improved resilience to the impacts of extreme weather events, i.e. drought and floods. If feasible, the application of nature-based solutions will be promoted.35 15. Output 3: Application of water and energy efficiency in local water management will support participating farmer communities in further increasing the resource efficiency of their irrigation systems by introduction of appropriate new irrigation technologies. Key activities may for example include support for (i) increasing water efficiency, including for example precision

14 MRRD reported that the average cost for some community-based projects such as kariz and canal rehabilitation is

about $200 per hectare, which is significantly lower than subprojects implemented by contractors. 15 MRRD states that community-based projects on average are operated for at least 20 years. 16 ADB. 2018. Strategy 2030: Achieving a Prosperous, Inclusive, and Sustainable Asia and the Pacific. Manila. 17 United Nations. 2015. Transforming Our World: The 2030 Agenda for Sustainable Development. New York. 35 E.g. FAO. 2018. Nature-Based Solutions for agricultural water management and food security. Rome.

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(laser) land leveling, drip and micro irrigation, and fertigation; (ii) the introduction of solar energy systems for agricultural production; and (iii) the establishment of advanced water and energy balance monitoring systems, including the application of remote sensing.36 16. These outputs will result in the following outcome: water productivity in rural areas improved.37 The project will be aligned with the following impact: improved livelihood opportunities for rural communities. 17. MRRD tentatively proposes for the project to cover about 25 provinces in the South Eastern and Central parts of Afghanistan. These provinces are selected based on (i) the potential to increase coverage of irrigated wheat production, and (ii) considerations to avoid overlap with other ongoing programs and projects. 18. Indicative project cost and modality. The total preliminary project cost is $145 million, of which $100 million is currently expected to be financed by a $100 million Asian Development Fund (ADF) grant. Cofinancing is sought for an estimated $30 million. In-kind and material contributions from beneficiaries of the community contracting schemes are estimated at $10 million. The government’s contribution is initially estimated at $5 million, expected to comprise of government staff time, office space for government staff, meeting rooms, and utilities. 19. The expected project modality is a sector project, reflecting the project’s provision of strategic and policy implementation support for the introduction of innovative technological solutions that are suitable for the local conditions in rural Afghanistan. 20. The proposed project is categorized as “Effective Gender Mainstreaming” (EGM) (Appendix 4). Safeguard categorizations are proposed as “B,” “B,” and “C” for environment, involuntary resettlement, and indigenous peoples, respectively, in line with ADB’s Safeguard Policy Statement (SPS, 2009). All structures to be developed are relatively small and possible minor environmental impacts can be mitigated.38 MRRD assured that no physical resettlement of people will be necessary for the project. Possible compensation may be needed for minor physical impact of land or crops, in line with a to be developed resettlement framework. MRRD explained that none of the ethnic groups in Afghanistan are considered indigenous peoples as defined in the SPS for operational purposes. 21. Consulting services. ADB will engage both a firm (project design consultants) and individual consulting services following the ADB Procurement Policy (2017, as amended from time to time) and its associated project administration instructions and/or staff instructions.

III. CONSULTING SERVICES (FIRM)

1. Scope of the Assignment 22. The major output of the assignment will be a project design which responds to government's needs and fulfill ADB requirements. Specifically, the outputs include (i) sector assessment; (ii) financial management assessment and procurement capacity assessment; (iii)

36 Precision (laser) land leveling can reportedly reduce water usage by 22%. 37 The design and monitoring framework is in Appendix 1. 38 It is noted that projects categorized as B can have site specific impacts (like dust emissions, noise generation, HSE

issues etc.) during construction phase. Due diligence (IEE) will need to be carried out for subprojects categorized as B. An environmental assessment Review Framework (EARF) will also have to prepared to properly screen, and analyze the identified subprojects.

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stakeholder analysis, and problems and constraints identified; (iv) a project technical, environmental, economic, financial and social appraisal; (v) a participatory gender action plan and a social development action plan; (vi) a resettlement framework, and an ethnic minority development plan, if needed; (vii) an environmental assessment, including an environmental management plan and an environmental assessment review framework; and (viii) an institutional and capacity-building plan. 23. The major outputs and activities are summarized in Table 1.

Table 1: Summary of Major Outputs and Activities Major Outputs Delivery Dates Key Activities with Milestones 1. Preparation of

the project design

Draft Final Report (September 2020) Final Report (February 2021)

1.1 Initial assessment and scheduling 1.2 Sector assessment and stakeholder analysis 1.3 Project technical design and appraisal procedures 1.4 Economic and financial assessment 1.5 Detailed implementation plan 1.6 Climate Vulnerability Risk Assessment 1.7 Security assessment for fragile and conflict-affected

situations 2. Compliance with

safeguard and social policies

Draft Final Report (September 2020) Final Report (February 2021)

2.1 Social economic survey, consultations, and poverty assessment

2.2 Gender 2.3 Social safeguards (including LARF) 2.4 Environmental assessment (IEE, EMP, EARF)

3. Assessment of implementation capacity

Draft in the Interim Report (June 2020) Final in the Draft Final Report (September 2020)

3.1 Procurement risk assessment 3.2 Institutional capacity and training needs 3.3 Strategic procurement plan, including a procurement

capacity 3.4 Financial management assessment 3.5 Risk assessment on fraud and corruption

EARF = environmental assessment and review framework, EMP = environmental management plan, IEE = initial environmental examination, LARF = land acquisition and resettlement framework Source: ADB Estimate.

2. Key Expertise Required 24. Proposing entities will determine the number and the specific expertise along with their inputs of the specialists they will require to achieve the objectives of the contract, in accordance with their proposed approach and methodology. However, ADB requires a minimum of four international key experts and one national key expert (Table 2).

Table 2: Summary of Key Expert Positions International Positions National Positions Water resources development specialist Rural development engineer/Deputy Team Leader Climate change adaptation specialist (water) Social development specialist Economist (rural development) Source: Asian Development Bank estimates.

25. The specific tasks of the key experts are elaborated below. One of the international key experts is expected to act as team leader and be also responsible to at least (i) manage the assignment including the international and national inputs, (ii) coordinate and support all team activities, (iii) guide the team in achieving high quality technical deliverables, and (iv) review and authorize all reports (milestones, progress, final, etc.). The international team leader will have an

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input of at least eight person months. The national key expert will act as the deputy team leader and will have a minimum input of at least 12person months. 26. Water resources development specialist (international). The specialist will have a master’s degree, or equivalent qualification in water resources management, irrigation, water engineering, or other related fields, and at least 10 years of international professional experience in rural water development projects. Experience in Afghanistan and other countries in South and Central Asia is preferred. The specialist will have demonstrated ability to work in a multidisciplinary team and will possess excellent communication (written and oral) skills in English. The specialist will have overall responsibility for ensuring the sustainable development and usage of water resources for the project. Specific tasks include at least:

describe and assess existing water resources, supply and demand, and management, for the project area;

conduct simple water balance analysis to assess the sustainability of existing and future project demand, including cumulative and downstream impacts with adjacent planned development and potential impacts of climate change on water quality and availability;

review the water allocation arrangements for the community projects; identify existing water-intensive and water-efficient farming and forestry practices in the

project area (including any traditional methods); develop cost-effective measures to conserve water, reduce soil salinity, and protect topsoil,

including measures for farming, forestry, and operation of on-site infrastructure (e.g., water meters);

lead the feasibility design of example projects and develop a manual for developing of subsequent feasibility and detailed design, including clues for contract management for further feasibility studies and detailed designs;

assess local capacity for water management for agricultural use and conduct training workshops in best-practice measures of water conservation in dryland regions, tailored to the project areas;

develop simple long-term water monitoring programs for the project areas; and prepare a technical report of the findings and necessary inputs to the draft RRP.

27. Climate change adaptation specialist (water) (international). The climate change adaptation specialist will preferably have a university degree in civil engineering, meteorology, hydrology or a field relevant to climate change and at least eight years of professional experience in climate change studies. Experience in Afghanistan and other countries in Central Asia is preferred. The specialist will have demonstrated ability to work in a multidisciplinary team and will possess excellent communication (written and oral) skills in English. The specialist will be responsible for aspects related to climate change, primarily related to water related adaption approaches and drought management. Specific tasks include at least:

collate and synthesize relevant climate datasets required for assessing drought and flood risks for the project areas, and identify major data gaps;

Analyze historical and current trends in climate change risks for study areas, based on observed datasets;

analyze potential future adaptation strategies and approaches for study areas, drawing on a wide range of data sources characterizing future climate conditions and taking into account relevant information on topography and land use and land cover;

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provide a synthesis on potential opportunities for developing and implementing risk management strategies and program(s) through review of key climate resilience strategies, policies and program(s) at national and sector levels;

in close consultation and coordination with the team leader and other members of the TA team, prepare the climate change risk assessment for the project;

contribute to the preparation of all project documents, as necessary; and participate in and present findings at consultations and workshops.

28. Social development specialist (international). The specialist will have a master’s degree or relevant qualification in social safeguards, social development for rural development, gender, and demonstrated experience in working with communities and developers to promote strong partnerships between community stakeholders, analyze gender issues and integrate gender approaches in project initiatives, strengthen community livelihood programs, technical skills and integrate community values, skills, and culture with project development. Experience in Afghanistan and other countries in South or Central Asia is preferred. The specialist will have at least eight years of professional experience. The specialist will have demonstrated ability to work in a multidisciplinary team and will possess excellent communication (written and oral) skills in English. Specific tasks include at least:

lead design of social aspects for the project, in conjunction with other relevant specialists, including social aspects related to examining opportunities to access the broader regional markets for agricultural products;

document the existing farmer populations within and adjacent to the project sites, including unpaid family laborers, ethnic minorities, permanent and seasonal workers, types of positions held, labor regimes in place, and work conditions;

document data on land use and whether the project will cause any resettlement and/or economic displacement, including any impacts to ethnic minorities gendered impacts, possible conflict issues that may arise;

assist the executing agency in preparing a resettlement plan, if required; conduct a poverty, social, and gender analysis, including a time use survey (qualitative,

limited sample size) to capture time savings from the improved access to water; prepare a consultation and participation plan and a gender action plan (GAP); identify project opportunities to strengthen project benefits for men and women local

stakeholders, including ethnic minorities and/or vulnerable and marginalized communities; (ix) prepare an ethnic minority development plan (EMDP) or a social action development action plan, as per ADB’s requirement;

provide necessary inputs to the draft RRP, including gender, participation, social safeguards, and other social risks; and

participate in and present findings at consultations and workshops. 29. Economist (rural development) (international). The economist will have a degree in economics or a related field, and at least eight years of work experience in economic analyses of ADB- or other multilateral development bank financed projects related to promoting rural development. Experience in Afghanistan and other countries in South or Central Asia is preferred. The specialist will (i) conduct the economic analysis for proposed project interventions in line with ADB guidelines, and (ii) provide support for the other team member integrating economic considerations into the project designs. The specialist will have demonstrated ability to work in a multidisciplinary team and will possess excellent communication (written and oral) skills in English. Specific tasks include at least:

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assess the macroeconomic and the sector contexts for promoting rural development in Afghanistan;

identify and establish economic rationale of the public sector involvement; analyze least-cost investment options and undertake economic cost-benefit analysis

including the promotion of innovative approaches in proposed investment project; analyze the economic benefits and costs of adaptation measures and calculate economic

metrics (NPV, B/C, EIRR), perform sensitivity and risk analyses in accordance with ADB’s Guidelines for Economic Analysis of Projects and Economics of Climate Change studies;

conduct distribution analysis for selected proposed projects and interventions to quantify which beneficiary and stakeholder groups will gain benefits and bear costs and to what extent;

assist other team members in carrying out all the tasks required to ensure high quality of the project documents; and

participate in and present findings at consultations and workshops. 30. Rural development engineer/Deputy team leader (national). The rural development engineer will preferably have a university degree related to rural development, engineering, or relevant fields. The specialist will have at least 8 years of professional experience in assessing rural development including rural land use and infrastructure planning. Experience as national deputy team leader in foreign funded project is preferred. The rural development engineer will be responsible that the design criteria for all small-scale rural infrastructure meets national standards, and current best practices in Afghanistan. Specific tasks include at least:

support the team leader in all tasks for the implementation of the transaction technical assistance (TRTA);

maintain close cooperation with the Government counterpart and ensure smooth communications;

review reports and drawings from previous projects, including concept design and optimization, feasibility, hydrology, hydraulics, and other related studies, and identify the applicability for the project;

review and, with support from other team members, develop appropriate project procedures for community contracting procedures and procurement;

discuss and the review and update project design, procurement and construction schedule in consultation with MRRD;

assist other team members in carrying out all the tasks required to ensure high quality of the project documents; and

participate in and present findings at consultations and workshops. 31. In addition to the above required key experts, the proposing entities should also include in their technical proposal, in the personnel work plan and in their financial proposal all other “non-key experts” required in accordance with their proposed approach and methodology. The expertise of the additional staff should, for example, demonstrate that requirements for design of irrigation systems, environmental and social safeguards, including all gender aspects, can be met adequately. The proposing entity must also determine and indicate the number of person-months for which each key or non-key expert will be required. The proposal will specify where the experts will be based together with the expected durations. 32. All experts engaged under the contract, whether key or non-key experts, must be a citizen of an ADB eligible country.

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3. Duration and location of the assignment 33. The assignment will be implemented over 16 months tentatively from 1 January 2020 to 30 April 2021. The ADB Central and West Asia Department will administer the assignment. The Ministry of Finance will be the executing agency for the TRTA. MRRD will be the implementing agency.

4. Key Deliverables 34. The consultant will provide at least the following key deliverables:

Draft Inception report (by month 1) Final Inception report, addressing ADB’s and Governments comments (by month 2) Draft Interim report (month 5) Final Interim report, addressing ADB’s and Governments comments (by month 6) Draft final report (by month 9) Final report addressing ADB’s and Governments comments (by month 14)

5. Preparation of Proposal

35. The consulting firm will be recruited using the fixed budget selection method, using a full technical proposal according to ADB Procurement Policy (2017, as amended from time to time). The main text of the proposal will have a limit of maximum 20 pages. 36. Proposing entities are requested to prepare a detailed description of how they propose to deliver on the outputs of the contract in the section of their proposal called “Approach and Methodology.” In this narrative, entities should be explicit in explaining how they will achieve the outputs and include any information on their existing activities upon which they may eventually build as well as the details of what staff will comprise the project team. 37. Entities must also describe their experience in Afghanistan and their ability to operate in the respective language. 38. Only one curriculum vitae (CV) must be submitted for each key and non-key expert included in the proposal. Only the CVs of key experts will be scored as part of the technical evaluation of proposals. The CVs of non-key experts will not be scored, however ADB will review and individually approve or reject the CV for each non-key expert position in the proposal. The final team composition and inputs of each of the specialists will be finalized with the winning firm during contract negotiations. 39. All positions under the contract, both key and non-key experts, must be included and budgeted for in the financial proposal in accordance with the person-month allocation required for each as defined by the proposing organization.

IV. CONSULTING SERVICES (INDIVIDUALS)

1. Objectives of the Assignments 40. The proposed individual assignments will provide support for the MRRD and ADB with the supervision of the consultants and the coordination among all parties.

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2. Expertise Required

41. Rural development specialist (international, 4 pm). The specialist will have a master’s degree or equivalent qualification in rural development, water resources engineering, or other related fields, and at least 15 years of professional experience in formulating, managing, and evaluating foreign funded rural development projects. The specialist will have demonstrated ability to work in a multidisciplinary team and will possess excellent communication (written and oral) skills in English. Experience with the preparation of ADB projects is required. Experience in Afghanistan and other countries in Central Asia is preferred. The specialist will report to the ADB project officer. Specific tasks include:

familiarize with the TRTA scope and objectives; review project outputs and reports; identify requirements for, and arranging, any additional surveys (if required); provide innovative ideas/input on rural development, including for climate change adaption

and gender equity promotion; participate in training workshops and technical discussions with the MRRD and other

stakeholders; contribute to the preparation of final RRP and other project documents; and provide other support as reasonably requested by the ADB project officer.

42. Project Implementation specialist (national, 9 pm). The specialist will have a master’s degree or equivalent qualification in rural development, economic and/or financial management, or other related fields, and at least 8 years of professional experience, preferably with the preparation or implementation of foreign funded projects. The specialist will have demonstrated ability to work in a multidisciplinary team and will possess communication (written and oral) skills in English. He/she will report to the ADB project officer. Specific tasks include:

familiarize with the TRTA scope and objectives; review project outputs and reports; identify requirements for, and arranging, any additional surveys (if required); provide innovative ideas/inputs and best practices for rural development in Afghanistan; participate in training workshops and technical discussions; contribute to the data collection for the preparation of the final RRP and other project

documents; and provide other support as reasonably requested by the ADB project officer.

3. Implementation Arrangements

43. ADB will engage and administer the individual consultant contracts. The individual consultants will be engaged using the individual consultant selection method. 44. The assignments will be implemented over a period of 16 months tentatively from 1 January 2020 to 30 April 2021. The assignments of the individual experts are intermittent in nature. The terms may be revised based on consultations between the parties involved in the assignment according to changes and or additional requirements identified during implementation.