Pakistan Punjab Irrigated-Agriculture Productivity Improvement Project (pipip) Environmental and Social Assessment Directorate General Agriculture (Water Management), Agriculture Department Government of Punjab, Lahore November 2011



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PUNJAB IRRIGATED AGRICULTURE PRODUCTIVITY IMPROVEMENT PROJECT (PIPIP)



AGREEMENT FOR INSTALLATION OF HEIS
This agreement is made at _______ this _______day of ____(month)_______(year)
BETWEEN
Project Director/Regional Project Director “Punjab Irrigated – Agriculture Productivity Improvement Project – PIPIP”/ District Officer (OFWM) _____its office at_____ (hereinafter referred as the “First Party” which expression shall include the successors, legal representatives & permitted assigns)
AND
M/s __________________________, “Supply & Services Company (SSC) with its registered office at ________________________________which has been awarded a contract for the installation of high efficiency irrigation systems on turnkey basis type/crop__________________on ________________ Acres (hereinafter called the “SSC” which expression shall include the successors, legal representatives & permitted assigns and referred as “Second Party”),
AND

Mr.______________________S/o__________________ who has requested the government in writing to install HEIS on _______acres at his farm/land (lot/murraba Number ____________) situated at Village_________Tehsil_______District________(hereinafter called the “Beneficiary Farmer” which expression shall include the successors, legal representatives & permitted assigns and referred as “Third Party”).


WITNESSETH THAT


  1. AGREEMENT EFFECTIVENESS AND DURATION

Both the second and third parties have decided to enter into this agreement with the first party for installation of HEIS, under the provisions of the project titled “Punjab Irrigated – Agriculture Productivity Improvement Project – PIPIP”. This agreement shall come into force immediately after signing of all parties and shall remain enforced up to two (02) calendar years after handing over the system to the third party (farmer).



  1. ESTIMATED COST OF WORKS

The agreed/approved total estimated cost of HEIS to be installed on turnkey basis along with excavation/ civil works and material (hereinafter referred to as the “Total approved estimated cost”) is Rs.___________ as reflected in Annexure-I. out of Total estimated Cost, 40% would be shared by the applicant/beneficiary (Third Party), while the remaining 60% of total scheme cost will be provided by the First Party to be paid in installments (Clause- 3) to the Second Party against the HEIS works installed/completed and verified by the Consultants.




  1. MODE OF PAYMENT

3.1 Payment to the Second Party (SSC) for the installation of HEIS shall be released by the First Party in three installments in the following manner:

First Installment

Release of 50 percent of the estimated cost or total farmers’ share whichever is higher on receipt of satisfactory report from the PIS Consultants confirming that the HEIS material (as per approved BOQs and agreed standards and specifications has been shifted to the site.


Second Installment

Release of 40 percent of the total estimated cost on receipt of satisfactory report from the PIS Consultants confirming the followings:



  • HEIS has successfully been installed as per approved design and layout and commissioned satisfactorily.

  • the farmer has been trained about the system operation and maintenance.

  • Irrigation and fertigation schedules and log book have been provided to the farmer.

Third Installment

Release of remaining 10 percent of the estimated material cost retained as performance guarantee after assuring that free service during warranty period of two years has satisfactorily been provided to the farmer.




  1. Completion Time

The Second Party shall shift material to the site of the Third Party within 35 days of issuance of the work order. While, installation of the scheme shall be completed within 60 days thereafter. The system will be completed in all respect by Third Party and got verified by the consultants within maximum period of 90 days.


  1. Duties and Responsibilities of First Party

  • Mediate between Second and Third Party in case of any dispute, the decision of First Party would be the final and will not be challengeable in any court of law/forum.



  • Issue technical sanction / work order for the assignment or to change/substitute/ cancel the same, if required due to any cogent reason.




  • Arrange and deploy project staff/concerned District Officer/WM staff for checking and verification of works at different stages under contract.




  • The First Party reserves the right to increase or decrease the quantum of work/material even after award of the contract and before the completion of work, if found necessary.




  • The First Party reserves the right to stop the work at any time at any stage if it is found necessary to do so.




  • In case, second party failed to complete any HEIS scheme, the first party will have the right to get the work completed on the risk and cost of the second party.

  1. Duties and Responsibities of the Second Party

  • Motivation of the Third Party through mass awareness.




  • After feasibility to conduct Survey of Third Party land, soil, topography, assessment of water source and water quality, source of power, farm operations, predominant cropping pattern and other relevant data, provide soil and water analysis.




  • Before submission of proposal of design, assess the availability of water and availability of energy for pumping. Design the water supply system from source of water (canal, well or other) to high efficiency irrigation system which should not be more than 100 meters from the system. Exceeding this limit, Third Party would be responsible to bear expenditure for the extra supply to be arranged.Detremine the need for storage, assist the Third Party in constructing the tube well, storage, pump set, power source for High Efficiency Irrigation System.




  • Designing of high efficiency irrigation system in accordance with accepted standards keeping in mind the necessity to keep the cost down while insuring the trouble free operation.




  • Submit hard and soft copies of design and cost estimates to the First Party (PD/ RPD/ DO (OFWM) and consultants for approval of design and issuance of Technical Sanction /Work Order.




  • On receipt of work order supply the material and get it verified from Consultants within fixed period of 35 days. Afterwards, install the system within 60 days as per approved standards and specification of the project and get its commissioning certified from the PISCs.




  • Hand over the system to the Third Party in presence of First Party and submit farmer’s satisfaction certificate (Annex-A).




  • Provide warranty of parts/ after- sale –service for a period of two years by paying regular visits and providing follow up services on the complaints of farmer.




  • Warranty to undertake repair/ replace any portion or the entire system components for a period of two years, if found defective in material or workmanship. Such repairs/ replacements will be done at the cost of Second Party. However, in case of any fault/damage caused to the material/system due to negligence/overlooking of Third Party, the farmer will make upfront payment to the Second Party for the material.

  • Training to the Third Party on:

  • Operations of the system.

  • Maintenance of the system including filtration & flushing system, flow monitoring etc.

  • Acid treatment and chlorination.

  • Irrigation and fertigation charts.

  • Other agronomic practices for the crop(s) grown.

  • Handling of the system after harvest, storage.




  • Provision of an operation and maintenances manual to the farmer in local language at the time of installation along with warranty.




  • Assist the Project Staff for validation at different stages and Project Staff in performing their duties.




  • The Second Party will abide by the procedure for imposing the penalties approved under the project (Annexure-B).




  • After handling over the scheme to Third Party under certification of consultants, the Second Party, however, will not be responsible for any theft, fire, natural disaster, misuse animal damage, and failure of pumps & engine motor not supplied by it, modification in the installed system by the Third Party without consultation, mishandling or any other unauthorized practice/action by the Second Party.




  • The Second Party will establish service centre to provide after sale service in areas of operations where-ever an area of about 500 ha, is covered by its equipment/system.




  • After final verification of unit, the Second Party will be responsible to provide two years free of charge after sale-service warranty to Third Party. During the initial period the Second Party will visit the farm at regular intervals (minimum every second months) to check the installation, advice the farmer on operation and maintenances issues.




  • The material equipment and workmanship under the projects will be according to the acceptable industrials standards and appropriate to the sites’ conditions; environment and operating practices prevailing on each site of work. All material; equipments method of the installation; flushing testing; commissioning and training procedure shall be in accordance with the current issues of the appropriate/ prescribed standards published by the American; British, National; European or Japanese institutes

  1. Duties and Responsibities of the Third Party (the Farmer)

  • Third Party will submit a bank draft in the name of the Second Party equal to 40% of the total estimated scheme cost.

  • Third Party will be responsible to provide / arrange the reliable and dependable water source

  • Maintain and operate the system for a period of five years and acquire necessary training, instructions, literature etc, from the First and Second Parties




  • Provide assistance and unrestricted accessibility to the representative of first and second parties and PISCs consultants at any stage during project period




  • Settle all disputes with the other farmers/land users regarding any nature. The First and Second Parties would not be a party in such disputes.




  • Inform the First Party in writing immediately about issues and disputes, if arise between Third Party and Second Party.




  • Provide in writing his satisfaction on the performance of installed HEIS (Annexure-A).




  • The Third Party will ensure to secure supplied material in his safe custody and in case of theft or damage, the Third Party will be held responsible for payment up to the extent of loss if occurred due to his negligence. The Third party will also be held responsible for any delay/undue resistance during installation of scheme.




  • In case of non functioning of unit after handling over the same under certification of consultants and satisfactory certificate dully issued (by Third Party), the entire amount incurred on system will be recovered from Third Party as Arrears of Land Revenue (if farmer declines to refund the same).


8. Settlement of Dispute

    • During execution of the scheme, if any dispute arises, relating to any aspect of this assignment, the parties shall first attempt to settle the issue through mutual and amicable consultation. However on request by Second and Third parties the RPD/ DO (OFWM) will help out both the parties. If the same is not resolved through such consultations, the matter will be referred for arbitration to the Provincial Project Director whose decision will be final and binding for the parties to such dispute, and will not be challengeable in any court of law.




    • The First Party will not be responsible for any damage, if so occurred during or after completion of the work, due to natural clematis and mismanagement or negligence/any other reason on the part of Second and Third Parties.




    • The First Party will be not responsible for non functioning of HEIS unit, due to insufficient water reservoir/power resources (electricity connection + diesel engine etc.) as the Second and Third Parties are fully responsible to ensure feasibility of the scheme before entering into this contract agreement.

First Party (PD/ RPD/ DO (OFWM):__________________________________

Second Party (SSC): _____________________________________________

Third Party (Farmer): _____________________________________________

WITNESSES

    1. Signature: _________________




    1. Signature: _________________

Name: ____________________




Name: ____________________

Place:_____________________





Place:_____________________


Date: _____________________





Date: _____________________


Village: ___________________





Village: ___________________


Tehsil: ____________________





Tehsil: ____________________


(Annexure-A)


SATISFACTION CERTIFICATE
I the undersigned Mr.____________________________________________with permanent address___________________________________________________ Declare and verify, then the High Efficiency Irrigation(Drip) system awarded by Government of Punjab under Project “Punjab Irrigated – Agriculture Productivity Improvement Project – PIPIP (Pilot Phase) installed by M/S_____________________________ on an area of ___________________ acres at my land is complete in all respects and I am satisfied with the current performance of the system as per design approved by the Project Staff. I will strictly abide all terms and conditions imposed by the Government time to time.

(Annexure-B)



PROCEDURE REGARDING IMPOSING PENALTIES



Sr. No



Violation Committed



Penalty


1

Irrigation System Design, installation & bill of quantities of each installation project.

Fresh installation of micro irrigation system properly as per correct design at SSC cost and a penalty of Rs. 5000/- per installation.




Improper installation

2

Improper design leading to over estimation or under estimation of bill of quantities.

Correction of design and installation of HEIS at SSC cost and penalty of Rs. 5000/- per installation.

3

Quality control & quality assurance




  1. Use of spurious/recycled raw material (deviation from specified technical specifications)

  1. Once-Replacement of all non-standard material of the batch and fine of Rs. 10000/- for each unit




  1. Deviations from prescribed standards in the agreement.

  1. Twice-Replacement of all non-standard material of the batch no. and fine of Rs. 15000/- for each unit + cancellation of work order for the district.




  1. Use of low grade/class products in comparison to specified standards.

  1. Three times- black listing from the Project and State, forfeiture of security deposit and recollection of the area to other bet performing companies.

4

Failure to attend farmer’s complaints within stipulated time.







1 Source: Wikipedia (http://en.wikipedia.org/wiki/Punjab,_Pakistan), accessed on 27 April 2011.

2 Punjab Sustainable Development Strategy, Environment Protection Department, GoPb, Final Report, 2008

3 Ibid

4 Doab in local language is an area between two rivers

5 Integrated Social and Environmental Assessment of Punjab On-farm Water Management Project, Punjab Economic Research Institute, Lahore, February 2004.

6 Source: Official website of the Agriculture Department, Government of the Punjab (http://www.agripunjab.gov.pk/index.php) (accessed on 17 April 2011).

7 Ibid.

8 Excerpts from OP4.01 – Environmental Assessment. January, 1999.

9 Superseded by the Pakistan environmental Protection Act, 1997.

10 The terms ESA and EIA have been used interchangeably in this document. The document has been named as the ESA, however, it meets all the requirements of an EIA as well.

11 Excerpts from WB OP 4.12. WB Operational Manual. January 1999.

12 Excerpts from WB OP 4.12. WB Operational Manual. December 2001.

13 Excerpts from WB OP 4.04. WB Operational Manual. June 2001.

14 Excerpts from the OPN 11.03. WB Operational Manual. September 1986.

15 Excerpts from the OP 4.10. WB Operational Manual. July 2005.

16 Excerpts from the OP 7.60. WB Operational Manual. November 1994.

17 Source: Project Appraisal Document, World Bank 2011.

18 Irrigation Water Management: Irrigation Methods – Training Manual No. 5. FAO 1988.

19 Ibid.

20 Source: Wikipedia (http://en.wikipedia.org/wiki/Punjab,_Pakistan), accessed on 27 April 2011.

21 Punjab Sustainable Development Strategy, Environment Protection Department, GoPb, Final Report, 2008

22 Ibid

23 Doab in local language is an area between two rivers

24 Informatory Brochure on Tourism Development Corporation of Punjab on Murree Hills

25 Geography of Punjab, Sang-e-Meel Publication, Lahore, 2007

26 Geological Survey of Pakistan , accessed on 07.01.2009

27 Ibid

28 Punjab Sustainable Development Strategy, Environment Department, Punjab, 2008

29 Ibid

30 Source: Wikipedia (http://en.wikipedia.org/wiki/Punjab,_Pakistan), accessed on 27 April 2011.

31 Punjab Development Statistics, Bureau of Statistics, GoPb, 2007

32 Meteorological Profile of Punjab, Pakistan Meteorology Department, Lahore, 2008 (soft copy)

33 Ibid

34 Ibid

35 Ibid

36 3-Cities Investigation of Air and Water Quality (Lahore, Rawalpindi, Islamabad), JICA/Pak-EPA, 2001

37 2-Cities Investigation of Air and Water Quality (Gujranwala and Faisalabad), JICA/Pak-EPA, 2003

38 Air Quality Monitoring in Six Districts of Punjab using Physico-Chemical Techniques, Environment Protection Department, Government of the Punjab, 2005

39 Source: Pakistan’s Groundwater Reservoir and its Sustainability. Muhammad Amin, Member Water, WAPDA.

40 Punjab Sustainable Development Strategy, Environment Department, Punjab, 2008

41 Water Quality Status in Pakistan, Pakistan Council of Research in Water Resources, Islamabad, 2003

42 Ibid

43 Punjab Sustainable Development Strategy, Environment Department, Punjab, 2008

44 Subsoil Water Quality Monitoring in 14 Districts of the Punjab, Environment Protection Department, Government of the Punjab, 2003

45 Brief on Punjab Forest Department, Punjab Forestry Research Institute, Faisalabad, 2006

46 Source: Wikipedia (http://en.wikipedia.org/wiki/Punjab,_Pakistan), accessed on 27 April 2011.

47 Source: Wikipedia (http://en.wikipedia.org/wiki/Punjab,_Pakistan), accessed on 27 April 2011.

48 Punjab Sustainable Development Strategy, Environment Protection Department, GoPb, 2008

49 Punjab Development Statistics, Bureau of Statistics, Government of the Punjab, 2007

50 Ibid

51 ‘Chance find’ procedure: In case any artifact or site of archeological, cultural, historical, or religious significance are discovered during activities such as excavation of water ponds, the works will be stopped, and the Archeological Department will be informed.

52 ‘Chance find’ procedure: In case any artifact or site of archeological, cultural, historical, or religious significance are discovered during activities such as excavation of water ponds, the works will be stopped, and the Archeological Department will be informed.

53 ‘Chance find’ procedure: In case any artifact or site of archeological, cultural, historical, or religious significance are discovered during activities such as excavation of water ponds, the works will be stopped, and the Archeological Department will be informed.

54 ‘Chance find’ procedure: In case any artifact or site of archeological, cultural, historical, or religious significance are discovered during activities such as excavation of water ponds, the works will be stopped, and the Archeological Department will be informed.

55 ‘Chance find’ procedure: In case any artifact or site of archeological, cultural, historical, or religious significance are discovered during activities such as excavation of water ponds, the works will be stopped, and the Archeological Department will be informed.

56 Full text of the Standards is available at the Pak-EPA website: (http://www.environment.gov.pk/info.htm).

57 Full text of the NEQS is available at the Pak-EPA website: (http://www.environment.gov.pk/info.htm).

58 Full text of the Standards is available at the Pak-EPA website: (http://www.environment.gov.pk/info.htm).

59 Full text of the Standards is available at the Pak-EPA website: (http://www.environment.gov.pk/info.htm).

60 Brief on Punjab Forest Department, Punjab Forestry Research Institute, Faisalabad, 2006

61 Punjab Sustainable Development Strategy, Environment protection Department, Government of the Punjab, Final Report, 2008

62 Ibid

63 A Brief Introduction to Punjab Health Sector Reforms Program, PMIU, 2008

64 Multiple Indicator Cluster Survey (MICS), Planning and Development Board, GoPb, 2003

65 Mosque is called “Masjid” in Urdu Language. Maktab is Urdu equivalent of school

66 Punjab Development Statistics, Bureau of Statistics, Government of the Punjab, 2007

67 Ibid

68 Ibid

69 Ibid

70 Medium Term Budgetary Framework, Planning and Development Board, GoPb, 2008-09

71 Pakistan Economic Survey, Government of Pakistan, Islamabad, 2007

72 Medium Term Budgetary Framework (2005-10), Planning Commission, Government of Pakistan, Islamabad, 2005

73 Ibid

74 Punjab Industrial Directory, Directorate of Industries, GoPb, 2006

75 Punjab Sustainable Development Strategy, Environment protection Department, GoPb, Final Report, 2008

76 Ibid

77 Ibid

78 Ibid

79 Punjab Poverty Reduction Strategy Paper, Planning and Development Board, GoPb, 2003

80 An unplanned housing squatter
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