| March 2007--The Third Pumping Stations Rehabilitation Project (1998 - 2007) for a total cost estimated at USD 252.43 million (a World Bank loan of $120 million, a KFW loan of $28.57 million and GOE contribution of $103.86 million)- represents one of the ways to counteract the challenges facing agriculture in Egypt through implementing measures to ensure the environmental sustainability and efficiency of water resources management. It also represents the third phase of the long-term program for the rehabilitation and modernization of the irrigation and drainage pumping stations of the Nile Water Resource Management System which the Government of Egypt has set up with the assistance of the World Bank. The Project’s Development Objectives are to: - Improve the efficiency of operation and maintenance of the pumping stations and thereby save public expenditures on O&M;
- Improve the efficiency and reliability of delivery of irrigation water and evacuation of drainage water to prevent the losses in crop yields resulting from aging stations; and
- Strengthen further the planning and O&M capability of the Mechanical and Electrical Department to enhance the sustainability of the irrigation and drainage system.
Environmentally, the project is expected to have positive outcomes through maintaining the water table at low levels, preventing water logging and soil salinity build up via the rehabilitation of the drainage pumping stations. Progress to-Date: At appraisal, the main components of the project were: i) constructing 32 new Pumping Stations (PSs) to replace old malfunctioning ones; ii) rehabilitating old electro-mechanical equipment in 36 PSs; iii) providing various spare parts for 9 PSs; iv) strengthening 5 PSs’ emergency centers; v) upgrading the PSs’ workshops and electrical laboratories; vi) supporting monitoring and evaluation (M&E) including a management information systems (MIS); vii) strengthening the institutional capability through logistical support, training and provision of technical support; and viii) assessing the environmental situation at selected sites and preparing mitigation plans. During the Mid-Term Review carried out in March 2004, Project’s components were not modified, but the numbers were changed as follows: - constructing 21 new PSs to replace old malfunctioning ones;
- rehabilitating old electromechanical equipment in 84 PSs including 50 PSs by the provision of 120 electrical motors; and
- providing various spare parts for 76 PSs. Those figures were slightly changed during the past 2 years as a result of emerging priorities. Bank financing of the project was therefore reduced to US$100 million.
Progress to-date shows that there has been an efficient delivery of 6.3 billion cubic meters of water per year; a reduction of the annual O&M by about US $1.2 million, and a reduction of the annual energy consumption by about US$1 million. Additionally, the project managed to benefit about 0.85 million families and to increase the annual agricultural production by about US$35 million. Furthermore, the delivery of technical assistance has been in progress together with cost recovery and privatization studies which will focus on the sustainability issue as well as improved efficiency. This project has also contributed to strengthening the management institution through IMS. Challenges Encountered during Implementation pertain to delays in the civil works contracts related to the construction of new pumping stations despite procurement of the electro-mechanical equipment being in good progress. The implementing agency has changed the contracting modality to be ‘turn key’ rather than having separate contracts for civil works and supply of electro-mechanical equipment. |