Asian Development Bank (ADB) has approved a US$200 million loan for the development of an irrigation system with the aim to provide a regular water supply to 704,000 hectares of agricultural land in Punjab province, Pakistan.

The project will help increase agricultural productivity and improve food security in such districts as Bhakkar, Jhang, Khushab, Layyah, and Muzaffargarh districts. The provided loan will finance the construction of a second branch (Choubara system) for the Greater Thal Canal irrigation scheme. The loan financing will be denominated in the Japanese Yen.

The scope of works involves the construction of a 72-kilometer branch canal, 11 secondary canals totaling 251 kilometers, and 11 tertiary canals totaling 127 kilometers. In addition, the ADB will help develop on-farm agricultural command areas, pilot water conservation technologies and help to train farmers in water management and climate-resilient agricultural practices.