Chashma Right Bank Irrigation Project III

BIC is no longer actively monitoring this project.

Project ignores social and environmental concerns

Location: Pakistan

The Asian Development Bank (ADB) is funding the third stage of the Chashma Right Bank Irrigation Project in Pakistan, the first stage of which began in 1978. Under the project, a 274-kilometer (171-mile) canal is being built along the Indus River, beginning at the Chashma Barrage. The project also includes the construction of 72 distribution canals, 68 cross-drainage structures, and 91 bridges.

ADB has been the main financier of the US$450 million project. ADB has funded US$308.1 million or 68 percent of the total project cost. KfW of Germany has provided US$42.9 million in funding. The Stage III project is now 94 percent physically complete, and the loan was due to close in December 2003.

The implementation of this project has caused a host of problems, including displacement and compensation disputes, a severe lack of transparency for the planning and implementation of the project, and various other social and environmental impacts such as flooding, land degradation, and deforestation.

On November 25, 2002, local communities submitted an Inspection Function request. The ADB Board of Directors has authorized an inspection; however, against the wishes of the inspection requesters and NGOs supporting their efforts, the Board voted to delay the commencement of the Inspection until December 2003, to allow the Grievance Redress and Settlement Committee (GRSC), a domestic problem-solving process governed by Pakistani law, time to address some of the project’s problems.

The Inspection Panel issued its report in July 2004 and the Board issued its decision in August 2004. The Panel found in favor of the inspection claimants and recommended a number of measures which the ADB needed to follow to bring the Project into compliance. The Board accepted these recommendations and required the newly formed ADB Compliance Review Panel (under the Accountability Mechanism) to monitor implementation on an annual basis.

Bank Contacts

ADB- Takashi Matsuo, Senior Project Specialist
6 ADB Avenue,
0401 Mandaluyong City, Philippines
Tel: +632 632 6834 tmatsuo@adb.org

ADB- Kunio Senga, Director General, South Asia Department
6 ADB Avenue,
0401 Mandaluyong City, Philippines
Tel: +632-632-6200 ksenga@adb.org

ADB- Marshuk Ali Shah, Pakistan Country Director
Pakistan Resident Mission
Overseas Pakistanis Foundation (OPF) Bldg.
Sharah-e-Jamhuriyat
G-5/2, Islamabad, Pakistan
GPO Box 1863
Islamabad, Pakistan
Tel: 92-051-282-5011, mshah@adb.org
Website: www.adb.org/PRM
Resident Mission email: adbprm@adb.org

NGO Contacts

MAUJ (Pakistan)- Mushtaq Gadi, Land, Water, and Forests Programme
Tel: 92-51-227-6579
mushtaq_gaadi2000@yahoo.com

Damaan Development Organization (Pakistan)– Ahsan Wagha, Executive Director
Tel: 92-51-229-9230
damaan123@hotmail.com

ActionAid Pakistan– Azhar Lashary
azhar.lashary@actionaid.org

Chashma Right Bank Irrigation Project III

Project ignores social and environmental concerns

Location: Pakistan

Official Documents

ADB Inspection Process Materials

Useful Webpages

Bank Contacts

NGO Contacts