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This Project Administration Memorandum (PAM) was prepared by the Asian Development Bank (ADB) to assist the Government in implementing the Western Basins Water Resources Management Project (the Project), for which the ADB's Board of Directors approved a Loan and Grant of SDR42,446,000 and US$14,500,000, respectively, on 21 December 2005. This PAM is based on: (i) the Report and Recommendation of the President to the Board of Directors on the Proposed Loan and Asian Development Bank Fund Grant to the Islamic Republic of Afghanistan for the Project dated November 2005; (ii) the Financing Agreement between the Government and ADB dated 9 March 2006; and (iii) the ADB's relevant guidelines. In case the provisions in this PAM differ from those of the above mentioned documents, the provisions of the Financing Agreement, relevant ADB guidelines, and the RRP will prevail over the PAM in the respective order.

The PAM is an active document, and should be progressively revised and/or updated as and when necessary (eg. following any changes in project scope, costs, or implementation arrangement). It is, however, suggested that changes be added/introduced to the PAM as an addendum, rather than replacing original provisions. This will help reconcile historical records and in preparing future project completion reports.

I. PROJECT DESCRIPTION

A. Project Area and Location

1. The Western Basins Water Resources Management Project (the Project) will support infrastructure development, strengthening of institutional frameworks, and capacity development for water resources management and irrigated agriculture in the western basins of Afghanistan (Badghis, Ghowr, and Herat provinces), mainly comprising the Hari Rud River Basin, which includes Herat, and the Murghab River Basin.

B. Objectives and Scope

2. The overall goal of the Project is to improve rural livelihoods in the Project area through strengthened integrated water resource management (IWRM), improved irrigation service delivery, enhanced agricultural practices and increased productivity of irrigated agriculture. The primary objectives of the Project are to (i) improve IWRM and water management at all levels; (ii) rehabilitate, upgrade and develop irrigation and water resources infrastructure; (iii) support improved agriculture productivity and rural livelihoods; and (iv) develop capacity and strengthen institutional frameworks for IWRM and irrigated agriculture.