To efficiently manage scarce water resources in Balochistan, the government here on Wednesday inked an agreement with the World Bank for provision of International Development Association (IDA) credit of SDR 15.8 million ($25 million). The Balochistan small scale irrigation project will mainly focus on Pishin Lora Basin in the northern parts of the province. It will encompass three components to irrigate the water-starved land, which includes: (1) partial restoration of water storage capacity in the Bund Khushdil Khan (BKK); (2) development of small scale irrigation schemes in the Pishin Lora Basin; and (3) institutional strengthening and capacity building of the Irrigation and Power Department (IPD), water management institutions, and farmers and community organisations and further studies and preparation activities for the next phase. Improved watershed and rangeland management and on-farm water management, including introduction of high efficiency irrigation systems, will be integral components of the project. Balochistan Small Scale Irrigation Project (BSSIP) will support efforts to improve management of the scarce water resources in the Pishin Lora Basin. Project activities are designed to recognise the importance of direct participation of water users and other stakeholders. Key indicators include: (i) increased surface water availability and reduced groundwater depletion; (ii) increased water productivity through a combination of engineering, management, and agricultural measures; and (iii) expanded local capacity and participation of farmers to implement similar schemes and formulate plans for sustainable water resources development and watershed management. The agreement was signed by Junaid Iqbal, Acting Secretary, Economic Affairs Division, on behalf of the Government of Pakistan, Ahmed Bakhsh Lehri, Additional Chief Secretary, Government of Balochistan, on behalf of Government of Balochistan, and Yousapha B Crookes on behalf of the World Bank. The Government of Pakistan will repay the credit in 35 years including 10 years of grace period. The credit is interest-free. However, service charges @ 0.75 percent per annum, and commitment charges of 0.5 percent per annum on undisbursed balance will apply. Copyright Business Recorder, 2008