ENERGY EFFICIENCY AND

June 2010
This report is made possible by the support of the American People through the United States Agency for International
Development (USAID). The contents of this report are the sole responsibility of International Resources Group (IRG)
and do not necessarily reflect the views of USAID or the United States Government.
ENERGY EFFICIENCY AND
CAPACITY PROJECT
(EEC)
TUBEWELL PUMP PILOT PROJECT
AND RECOMMENDATIONS FOR
EXTENSION
JUNE 2010

ENERGY EFFICIENCY AND
CAPACITY PROJECT
(EEC)
TUBEWELL PUMP PILOT PROJECT
AND RECOMMENDATIONS FOR
EXTENSION
June 2010
DISCLAIMER
The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for
International Development or the United States Government

TUBEWELL PILOT PROJECT AND RECOMMENDATIONS FOR EXTENSION I
TABLE OF CONTENTS
EXECUTIVE SUMMARY··············································································· 1
1. BACKGROUND ················································································· 5
1.1. PURPOSE OF THE PROGRAM........................................................................................................ 5
1.2. TARGET AREA..................................................................................................................................... 5
1.3. PROGRAM DETAILS .......................................................................................................................... 6
2. TUBEWELL PUMP PILOT – STRUCTURE AND ORGANIZATION·········· 7
2.1. PROJECT ORGANIZATION............................................................................................................ 7
2.2. CYCLE..................................................................................................................................................... 8
2.3. PROJECT PARTNERS......................................................................................................................... 9
2.4. LESSONS LEARNED ........................................................................................................................... 9
3. OPERATION AND IMPLEMENTATION···············································10
3.1. WATER.................................................................................................................................................10
3.2. POWER SUPPLY................................................................................................................................10
3.3. ENVIRONMENT ................................................................................................................................10
3.4. PROJECT PARTICIPANTS ..............................................................................................................11
3.5. SELECTION OF PUMPS...................................................................................................................12
3.6. IMPLEMENTATION..........................................................................................................................15
3.7. PROJECT MILESTONES AND TIMELINE...................................................................................15
3.8. LESSONS LEARNED .........................................................................................................................17
4. MARKETING & AWARENESS CAMPAIGN ··········································19
4.1. INTRODUCTION.............................................................................................................................19
4.2. MARKETING.......................................................................................................................................19
4.3. LESSONS LEARNED .........................................................................................................................21
5. FINANCING ·····················································································23
5.1. INTRODUCTION.............................................................................................................................23
5.2. LESSONS..............................................................................................................................................25
5.3. FINANCIAL BENEFITS.....................................................................................................................26
6. RECOMMENDATIONS FOR EXTENSION ···········································28
6.1. BACKGROUND ................................................................................................................................28
6.2. STRUCTURE AND ORGANIZATION........................................................................................29
6.3. OPERATION AND IMPLEMENTATION....................................................................................32
6.4. MARKETING AND AWARENESS................................................................................................35
6.5. FINANCING .......................................................................................................................................39

TUBEWELL PILOT PROJECT AND RECOMMENDATIONS FOR EXTENSION V
ACRONYMS
AEDB Alternate Energy Development Board
BEE Bureau of Energy Efficiency (India)
CRCP Consumer Rights Commission of Pakistan
DDOs Deputy District Officer
DSM Demand Side Mnagament
EEC Energy Efficiency and Capacity Project
EOI Expression of Interest
EXNs Executive Engineers
HVDS High Voltage Distribution System
IRG International Resources Group
KSB quality Pakistani pump manufacturer (Klein Schanzlin and Becke)
LOIs Letters of Intent
MARCOM Integrated Marketing Communications
MEPS minimum energy performance standards
MoU Memorandum of Understanding
PARC Pakistan Agriculture Research Council
PCSIR Pakistan Council for Scientific and Industrial Research
PECO Pakistan Engineering Company
PITCO Pakistan Industrial Trading Corporation
PNAC Pakistan National Accreditation Council
PSQCA Pakistan Standards Quality Control Authority
RPSN Rural Programs Support Network
SDOs Sub Divisional Officers
SEs Superintendent Engineers
USG United States Government

TUBEWELL PILOT PROJECT AND RECOMMENDATIONS FOR EXTENSION 1
EXECUTIVE SUMMARY
LESSONS LEARNED AND PROPOSED PROGRAM FOR 11,000 TUBEWELL PROGRAM
The table below outlines the various challenges faced during the implementation of the Pilot Program, and how corrective measures were
undertaken to address these during the Pilot Program. Additionally, Proposed Recommendations for the 11,000 tubewell program are also
proposed against each challenge.

Lessons Learned / Existing
Challenges Corrective Strategy in Pilot Proposed Recommendations for 11,000 tubewell program
Project
Organization
Stakeholders from the Government,
PEPCO, DISCO need to be formally
engaged in the project
Semi formal relationship was developed
with the DISCO for promotion of the pilot
project.
An elaborate MOU with the DISCOs, PEPCO and Provincial
Governments need to be signed prior to starting the enlarged
Program.
Additionally, separate collaborations with the State Bank of Pakistan
must also be sought to apprise them of the Program, and develop
financial instruments for energy efficient tubewells.
Operations and
Implementation
DISCO Cooperation and Access to
Customer's Billing Data
DISCO Cooperation was sought by
convincing them of the benefits of the
project.
All consumption data for farmers has been
collected from DISCO, and this was used to
design the targeted marketing campaign.
Data is used to carry out financial analysis
for the program
MOUs with all relevant DISCOs and stakeholders will ensure that
relevant cooperation and data is made available upfront to the
Program.
Farmer Selection Criteria
The only selection criteria we have
employed is the farmer's ability to pay 50%
Farmer's seriousness and ability to pay his portion of the program
cost can be established by his land holding size, willingness to pay
for the audit, willingness to make a pre‐payment towards the new
pump at the time ofaAudit, etc. The extended program will
undertake a targeted campaign for farmers with mid‐to‐large land
holdings; larger holding translates to more pumps per farmer, and
speed of convincing one farmer with multiple pumps is more
probable than convincing multiple farmers.
Disposal of Old Pumps
No compensation paid to the farmer; large
factor affecting the success of the Program.
A dedicated collection and disposal contractor will be contracted,
and it will be ensured that market scrap value is paid to the farmer
for his old pump. The contractor will need to be paid by the Program
to carry out the collection and disposal.

2 TUBEWELL PILOT PROJECT AND RECOMMENDATIONS FOR EXTENSION
Selection of Pump Manufacturers
The market leader for pumps in Pakistan,
KSB was chosen; KSB has local
manufacturing, extensive sales and
distribution network in the pilot region,
with after sales and support.
An elaborate EOI will be called inviting pump manufacturers to
participate in the Program. Selection of "multiple" pump
manufacturers will be made based on :
A. Range of Pumps produced.
B. Quality of Material used, pump performance characteristics, etc.
C. Sales and Distribution strength in the target region, along with
sales strategy proposed to carry out the sales.
D. Monthly / Annual production Capacity for range of pumps
produced
E. Implementation Capacity, and implementation workforce
deployment for installations.
F. Financial Strength
G. After sales and support strategy proposed including training of
local vendors for localised repair of pumps and motor
H. Independent testing and verification of pump tests
Scope of Supply of the Program
(Low/Hi Voltage Issues, civil works,
etc.)
Farmer is urged to buy other equipment for
enabling the energy efficient pump to run
on the grid (e.g. voltage regulator,
capacitors, etc.)
Farmer is required to undertake all civil
works at his own cost.
Both factors limit farmer's interest into the
Program
Voltage regulators, capacitors and ancillary civil works need to be
added to Program Costs and fully supported to convince farmers to
enroll into the Program.
After Sales and Repair
KSB has proposed a dedicated after sales
team in the pilot region for providing onsite
support.
Local vendors will be shortlisted, trained and certified by the
Program to provide localized after sales services after the
installation of pumps (3S scheme for the pump manufacturers).
Marketing and
Awareness
Campaign
Meeting with Farmer Associations
Resistence to one aspect of the program
turns into negative image for the entire
program; therefore smaller farmer
meetings and more one on one contact with
the farmers is carried out to convince them
to register into the Program
A complete Marketing and Communication Strategy will be
developed by the PR & Media company, consisting of but not limited
to: (a) Community Meetings at numberdar's premises. (b) Exhibit
energy efficient pumps at local melas, funfairs, etc. (c) Public
Information kiosks, (d) Use of mobile vans, bullock carts for
promotion and awareness‐raising. (e) Use of local radio programs to
share information and raise awareness.(f) Use of cell phone SMS
alerts for sharing information to the farmers. (g) Road shows to
demonstrate savings, benefits, etc. (h) Local media advertisements
and campaigns (local print media, cable operators, etc.).
MEPCO Meetings
Semi formal working relationship
developed with MEPCO.
Brochure Distribution
Access to farmers in rural areas is difficult,
therefore brochures distributed with
DISCOs monthly bill without any formal
engagement with DISCO
Call Centers
Dedicated call center with call back facility
for registering farmers, and collecting basic
information

Advertisements
Two newspaper advertisements were
carried out during the pilot project.
Additionally, strategy for an extensive
media campaign has been prepared.
Marketing and Sales Teams
A team of 23 Marketing & Sales
representatives needed to be trained on the
tubewell program, the benefits to the
farmer, along with pricing details. This
Marketing & Sales Representative remains
in the loop till the farmer pays his 50%
contribution to the Program
a. More extensive training for sales representatives.
b. Involve pump manufacturers in the marketing and sales of the
Program.
c. Offer variety of pumps to the farmers.
d. Involve incentive based system for Marketing & Sales
representative.
Financing
Financing must Compliment Existing
Revenue Structure
Program launched during the harvesting of
the wheat crop; timing is critical so that
farmers have access to cash during the
program period.
a. Offer bi‐annual installment payment options on loans vs. monthly
payments
b. No pre‐payment penalties,
c. Short‐term / seasonal loans, in addition to long‐term options
Cost of Financing, Collateral
Requirements & Documentation
Very high interest rate of > 17 to 18%, and
stringent collateral requirements (land
documents) make financing unattractive to
the small to medium sized farmers.
a. Work with state institutions like the Zarai Taraqiyati Bank and the
State Bank of Pakistan to determine if special financing schemes, at
lower interest rates are possible
b. Work with/configure alternative sources of finance via
Microfinance institutions and specialized leasing companies, with
less stringent collateral and documentation requirements.
Cultural Sensitivity to Financing
Farmers do not prefer financial institutions
because of cultural and religious sensitivity
towards interest. Statistically, less than
20% of all farmers have ever taken out a
bank loan in Pakistan. Approximately 25%
of farmers have access to formal financial
networks.
a. Work to develop Islamic financing programs that would encourage
those sensitive to interest to consider formal financing as an
alternative.
Varied Farmer Base Requires Multi‐
Pronged Approach
A varied client/farmer base with farmers of
multiple sizes with differing requirements
makes it necessary to advocate a multi‐
pronged approach
a. Multiple programs to appeal to key segments of client base; long‐
term more formal arrangements for larger farmers with multiple
tubewells; short‐term options to bridge finance smaller farmers, till
the arrival of the harvest season

STRUCTURE AND ORGANIZATION
FARMERS
• Enrollmentinto the
Program
• PermissionforPre-
Installation Energy
Audit
• Payment of 50%
Contribution
• Giving up Old Pump
set
• PermissionforPost
InstallationAudit
Sales and Marketing
• PR Firm
• Program Aw arenessPricing???
• Farmer Enrollment
• Pump Sales Closure
Project Management and Auditing
• Marketing Firm Coordination
• Pre-installation & Energy Auditing
• Pump Manufacture/Coordination
• ReplacementSizing
• Installationand CommissioningCoordination
• Post InstallationEnergy Auditing
Independent Installation & Commissioning
Contractors
• Design & Installation
• New Pump setInstallation &
Commissioning
• Repair & Maintenance
Pump Manufacturers
• Replacement6 Sizing
• Production of Energy Efficient Pump sets
• Testing of Energy Efficient Pump sets
• Demonstrate the Energy Savings
• Performance & Installation guarantee
Grid Pump Disposal Contractor
• Collection & Disposal ofOld Pump
• Setting Value Paymentto Farmer
• IndependentMonitoring & Evaluation
DISCO
• Customer & Feeder Access
• Marketing & Customer Outreach Support
• Continuing w ith Energy Loss Reduction Funds
USAID / DCA
• USAID Subsidy Funds
Banks
• Soft Loan to Farmers
State Bank of Pakistan
• Policy Framew orkto Facilitate Loans to Farmers
DISCO
• Facilitate Payments to ESCO Banks
through Farmers MonthlyEnergy Savings
ESCO
• Loan to Farmers
• Recovery Via DISCO from Farmer Energy
Sagings

1. BACKGROUND
1.1. PURPOSE OF THE PROGRAM
Agricultural tubewell pump sets are a major component of peak electricity demand in Pakistan. Pakistan
is the world’s fourth largest user of ground water for irrigation, in terms of area underground water
irrigation.
Over the past 30 years, ground water usage in Pakistan has risen exponentially, thereby increasing the
burden on Pakistan’s electrical demand.
Figure – Growth in Ground Water Use in Pakistan1
Ground water irrigation is done through irrigation pumps (tubewells). The irrigation pump sets used are
generally very inefficient, with operating efficiency levels of 30% or less being very common. The pump
sets are more often oversized so as to compensate for the low efficiency of the pumps and also to
withstand large voltage fluctuations. The energy consumption is high, mainly due to: (a) Improper
selection and installation, (b) Low efficiency of the pump sets, (c) Use of high-friction piping, and
(d) Lack of proper maintenance. The replacement will consist of tubewell pumps and corresponding
motors, with motor control unit, coupling, sizing, and installation of the complete pump on a turnkey
contract with a prominent high quality Pakistani pump manufacturer. The manufacturer will provide
warranty and after-sales maintenance and guarantee the energy savings.
1.2. TARGET AREA
MEPCO’s customer base includes approximately 49,000 tubewell pumps contributing as much as 900
MW to peak electricity demand. The irrigation pump sets used are generally very inefficient, with
operating efficiency levels of 30% or less being very common. Replacements are predicted to consume
about between 20% - 40% less energy for the same water output. The project includes appropriate
incentives (cost share and exploration of financing with positive cash flow) for owners to replace the
1 IWMI - Groundwater and Human Development: Challenges and Opportunities in Livelihoods and Environment

inefficient units in the Multan region. If the inefficient tubewell pump sets are replaced with the right-
sized efficient units, the consumption per unit is expected to decrease by 20% - 40% from 50,000 kWh
per year to 35,000 kWh per year.
1.3. PROGRAM DETAILS
The proposal for the Energy Efficiency and Capacity (EEC) Project of USAID/Pakistan task order
included tubewell pump replacement as an activity to demonstrate energy efficiency projects. After
Secretary Clinton’s announcement of tubewell pump replacements as an element of the United States
Government (USG) signature energy project in October 2009, the contractor began to tailor this activity
design as a pilot project, with replicable, scalable, and sustainable features. The pilot is now designed to
serve as a useful model that will provide field-tested results that the Mission can adapt according to
variables of new geographic environments and lessons learned on incentivizing participation. For this
reason, this pilot will serve the Mission in the design of the methods for implementation of subsequent
tubewell pump replacements and may stand as the first phase towards the achievement of the announced
11,000 replacements.
The pilot fundamentals were developed through a series of meetings with PEPCO, MEPCO, Pakistan
Agriculture Research Council (PARC), Farmer Groups, and local trade associations. The major
assumption is that replacement of these inefficient pumps, combined with load control, could drastically
reduce agricultural pumping demand. The purpose of the energy efficient tubewell pump pilot project is
to provide a project concept that is beneficial to both the utility and its agricultural customers while
being sustainable, scalable, and attractive to donors. It is designed to be as close as possible to the
normal value chain of an equipment purchase transaction of a farmer without intervention.
The following Draft Report presents lessons learned during the pilot phase which is still under
implementation. Final report will be completed when all data is gathered (mostly for energy savings).
Most of the lessons and experiences in the areas – organizational, institutional, marketing, financial and
technical – are already learned and many mitigation and correction actions are undertaken to improve the
tubewell pump program. The Report formulates the basis for design of 11,000 tubewell pump project.
A key element of the project which is eminently scalable will be the creation of an energy efficient
tubewell pump brand since MEPCO would endorse the pumps made available through this project. The
documents – such as contracts, guarantees, and energy audit protocols – are all replicable and scalable.
The marketing and sales methodology can also be used for similar projects, not only tubewells. The pilot
will also determine the degree of farmers’ motivation for participation through a 50% subsidy package.
The pilot will help determine payback periods so that follow-on replacements may include financing
terms that ensure a monthly positive cash flow and result in a tubewell pump replacement program that
is sustainable without USG subsidy for commodity purchase.

2. TUBEWELL PUMP PILOT –
STRUCTURE AND
ORGANIZATION
2.1. PROJECT ORGANIZATION
International Resources Group (IRG) is responsible for implementing the project with the help of two
local subcontractors: Pakistan Industrial Trading Corporation (PITCO) and Consumer Rights
Commission of Pakistan (CRCP).
Role of IRG: Overall management and specialized input is being provided by IRG. The Chief of Party
and two full-time project Engineers are coordinating and overseeing the complete project
implementation chain. Support for contracting, financial disbursement, and technical input is being
provided by IRG head office in Washington, D.C. Subcontractors Econoler, Winrock, and Alliance to
Save Energy are part of the resources available to the project.
Role of PITCO: PITCO has fielded a team of engineers, one of whom is housed in MEPCO Head
Office at Multan. The team is comprised of a fleet of energy auditors, a seasoned marketing professional,
and a dedicated call center.
Role of CRCP: The marketing effort is led by the Consumer Rights Commission of Pakistan, another
local subcontractor of IRG. The marketing effort includes sales calls on targeted farmers by the CRCP
sales force to convince farmers to enroll in the program. The marketing effort is boosted through
advertisements. MEPCO is assisting by informing consumers through their offices and distribution of
information, through monthly electricity bills, and by arranging farmer group meetings.

Figure 1 – Project Organization
Energy Efficiency and Capacity Tubewell Pilot Project
GOP
Stakeholders
OtherDonors
– Riffat Mahmood- Senior Project Engineer
– Salman Humayun, Senior Community
Outreach Specialist
– Samia Mehdi-Graphics & Communications
Specialist
– Kashif Syed, Community Outreach
Specialist
– Mohammad Zubair-FinancialAnalyst
– Shahid Hameed, Knowledge Management
– CRCP Marketing Team
Ewa Szajner, Project Manager
Nada Bright, Project Coordinator
Home Office
Husain A. Babur M., COP
Bikash Pandey DCOP Acting
Ahsan Maqbool, Sr. Energy Engineer
Project Management
Energy Audit and DSM Team
– Ghulam Mohammad-Senior Engineer
– AbdulNagi-Senior Engineer
– Wasif Khan-MEPCO DSM Advisor
– Energy Audit Technicians (4 Teams)
Monitoring & Evaluation
–Naila Usman-Monitoring and
Evaluation Coordinator
– Mohammad Aijaz, Head of Sales, Multan
– 8 Dedicated Sales Personneland 10
Distributers in Multan Region
MEPCO
CE Shafqat Tahir
• Alliance to Save Energy
• Econoler International
• PITCO Ltd.
• Consumer Rights Commission of Pakistan
• Winrock International
• MEPCO
• KSB Pump Manufacturer
• Punjab Irrigation Department
• PEPCO
• Orison Media Company
• Habib Bank
• United Bank
• Muslim CommercialBank
• Sam Gouda
• Alexander Filippov
• MichaelPhillips
• Amjad Kamboh
Marketing Team KSB Manufacturer
Short-Term Technical AdvisorsResource OrganizationsSubcontractors
Aijaz Butt-Lead Marketing Manager
Scott Shadian- Communications Lead
Omar Malik- Energy Audit Team Lead
Usman Malik-DSM Team Lead Gary Woller, Senior Monitoring and
Evaluation Expert
Nadeem Butt-TechnicalDirector

2.2. CYCLE
The MEPCO Tubewell Pilot is set up as a cycle of activities, starting from the pre-selection of Eligible
Farmers (which includes various details on pre-selection of eligible farmers, more details in Section 2.4)
followed by the various marketing and outreach activities (more details in Chapter 3), followed by the
Audit Team Pre-installation Visits to the farmer’s site (which includes the energy audit and sizing of the
energy efficient pump; more details in Chapter 4) followed by the Pump Manufacturer’s ordering and
installation of the energy efficient pump, followed by a Post-Installation Audit of the energy efficient
pump.

Figure 2 – Project Cycle
2.3. PROJECT PARTNERS
The project has designated MEPCO as a partner and all branding carries MEPCO logo. MEPCO is an
active partner and would endorse the energy efficient tubewell pumps available through this project. The
other project partners – farmers who participate in the project – will also benefit directly and
substantially. The farmer shall not only save on his electricity bill but will also have the benefit of a more-
reliable agricultural pump set as well as the benefit of advisory services regarding pumping and irrigation
practices that the project provides. The high quality Pakistani pump manufacturer (KSB), also a project
partner, will provide warranty and after-sales maintenance and guarantee the energy savings.
2.4. LESSONS LEARNED
The Pilot Program is a quick-start project to demonstrate the technical feasibility of the demand-side
management (DSM) concept of energy efficient tubewell replacement. It is meant to serve as a way to
interact closely with farmers in order to learn how best to satisfy their needs and to develop solutions to
some known problems, with traditional and nontraditional solutions.
1. It appears that tubewell replacement is relatively simple to undertake; however, the reality we realize
after the Pilot Program is that it is deceptively complicated to implement.
2. The importance of the Pilot Program has been to demonstrate the technical viability of the approach
of tubewell replacement, and to establish the level of farmer interest in the model being promoted in
the Pilot Program.
3. It has given us critical insight needed into designing the 11,000 Program in such a way as to cater to
numerous issues with farmer interest, financing, technical issues, production and installation
capacities, etc.

3. OPERATION AND
IMPLEMENTATION
3.1. WATER
To assess water levels in the MEPCO area, data from MEPCO and Punjab Soil Fertility Department was
used, and is produced below for reference. The table below mentions the “Total Number of Tubewells”
that exists in the MEPCO Region, both on MEPCO electrical connections, and diesel/petrol powered
tractors or other engines. This information was important to assess the predominant pumpset type in the
MEPCO region, which happens to be Centrifugal since more than 60% of the tubewells in the MEPCO
region are installed at water tables with-in 50 feet.

3.2. POWER SUPPLY
All tubewell pumpsets installed in MEPCO are 3 phase, supplied at 440 Volts. There are varying degrees
of voltage levels across the MEPCO network, ranging from as low as 230 Volts, to as high as 480 Volts.
High voltage across the network is primarily due to low quality of rewinding done on the tubewell
consumer’s transformer by the farmer himself or herself.
Low voltage across the network is primarily due to the long length of the low transmission lines, low
voltage at the grid stations, and lack of capacitor banks at the grid stations/feeder level.
3.3. ENVIRONMENT
The following environmental impacts/risks have been identified:

 Impact on water table
 Disposal of old pumps
3.3.1. WATER
The project ensures that the water discharge from the energy efficient tubewells replaced in the program
is the same as the farmer’s old inefficient pumpset. This is meant to ensure that ground water level is not
altered in any way because of the Program.
3.3.2. DISPOSAL OF OLD PUMPS
KSB is responsible for the disposal of old pumps and motors. However, there is no compensation to the
farmer for their old pumps and motors. The scrapping of these inefficient motors and pumps will ensure
that they are not brought back into operation in the secondary market.
3.4. PROJECT PARTICIPANTS
MEPCO's supply area covers the following Civil Districts of Multan; Khanewal, Sahiwal, Pakpattan,
Bahawalnager, Lodhran, Bahawalpur, R.Y. Khan, Vehari, Muzaffargarh, D.G. Khan, Layyah, and
Rajanpur.
There are approximately 49,000 private tubewells running on the MEPCO network, with a power
demand of approximately 900MW. A detailed data-gathering exercise was undertaken to collect tubewell
consumer data from all agricultural feeders in MEPCO. This data was shortlisted for medium-level
consumption farmers, with 3,000 units or more of monthly electrical consumption, and a sanctioned
load ranging from 11-20kW. It was conceived that it would be to MEPCO’s benefit if such consumers
replaced their inefficient tubewell pump sets, as it would lead to the highest energy savings. Additionally,
these farmers would be most interested in utilizing the 50% subsidy to replace their inefficient tubewell
pump sets because of the high bills they receive each month; leading to a quicker payback period for
their investment.
The pumps that are to be installed comprise of centrifugal pumps and deep well turbines.
An in-depth data collection activity was undertaken to get consumer data from all Agriculture Feeders
installed at MEPCO. After identification of 694 feeders in eight MEPCO circles, all consumer data for
2009 was extracted from MEPCO’s databases, to assess the consumption pattern of ~49,000 private
tubewell customers.
To gather a better understanding of tubewell consumers in the MEPCO region, a detailed analysis was
conducted to assess the prevalence of consumers in particular Divisions, and the average consumption
per month for each of MEPCO’s Divisions. This indicated the areas where average consumption is
higher, and consequently would consist of farmers more inclined to replace their tubewells with energy
efficient ones because of their higher electricity savings.
Feeder Eligibility Criteria
 There should be a high number of tubewell connections on the feeder
 A high load factor, that will indicate ground water as being the main source of irrigation
 Low percentage of transmission and distribution losses

Customer Eligibility Criteria*
Farmers should have:
 Motor/pumps with sanctioned load between 5-30 kW (which basically encompasses all the
motors used in the MEPCO region, since majority range between 11-20 kW)
 A good payment history of their bills
 A high total consumption of electricity
 A high load factor
*Motors/pumps that are already running efficiently are not considered in the program.
3.5. SELECTION OF PUMPS
3.5.1. QUALITY OF PUMPS
Pumping system efficiency can be reduced by several factors. These factors are to be considered during
the assessment of existing pumps and selection of the replacement pumps:
 Improper pump sizing
 Quality of material used in manufacture
 Worn out impellers and imbalanced rotors
 Prevalent use of rewound or reconstructed pumps
 Inefficient pump and system components
 Inefficient pump controls
 Inefficient drives
 Inappropriate maintenance cycles
The average efficiency of agricultural pump and motor sets in Pakistan ranges from 25% to 35%.
Various studies suggest that the energy saving potential from improving pumping efficiency can be
between 20% and 40%. These savings can be achieved by replacing inefficient pumps with Energy Star
rated pumps, and by retrofitting inefficient parts and/or proper maintenance of the existing pumps. It is
recommended that the efficiency of the new pump set be 20-40% higher than the present efficiency in
order to achieve sizable savings. In addition to the pump efficiency, the following factors need to be
considered for pump selection:
 Proper motor sizing to ensure its operation at optimum load
 Quality of mechanical seal
 Proper lubrication of bearings
 Ability to easily adjust impeller to compensate for normal wear in order to maintain the
original efficiency.

3.5.2. STANDARDS AND TESTING
The most important means to ensure the proper efficiency and quality of the pumps is to ensure the
availability of facilities, procedures, and qualified personnel for water pump testing. The entire necessary
institutional infrastructure exists in Pakistan to carry out proper testing, and many types of products are
tested for quality and safety. However, there are no such procedures in place for water pump sets,
including the pumps for agricultural use.
The Pakistan Council for Scientific and Industrial Research (PCSIR) is the only organization in
Pakistan under the supervision of the Ministry of Science and Technology that is designated for the
testing of electrical and electronic products in accordance with national and international standards. The
laboratories of PCSIR have received accreditation from the Pakistan National Accreditation Council
(PNAC), a government body certified by the international standard organizations to issue certifications
to the national facilities. PCSIR provides advisory services to the manufacturer in establishing technical
compliance with the most stringent international quality and safety standards. The laboratories of PCSIR
can conduct surveys and in-house research and development studies to improve and optimize the quality
of electrical products. At the present time, PCSIR tests electrical appliances and products mainly for their
safety, quality, and durability. PCSIR does not currently test products for energy efficiency performance,
since Pakistan does not have minimum energy performance standards (MEPS) in place. While PCSIR
has capacity for testing various types of equipment, including small motors, it has no testing facilities for
agricultural pumps.
The Pakistan Standards Quality Control Authority (PSQCA) works as a quality assurance and
quality management institute in Pakistan. PSQCA is responsible for the development of the metrology,
standards, testing and quality infrastructure necessary for industrial progress in Pakistan. PSQCA
develops national standards and adopts international standards according to the quality policy of
Pakistan. Currently, the majority of Pakistani standards is based on or is the same as ISO standards.
According to the project findings, PSQCA has not developed any national testing procedures or MEPS
for agricultural pumps, nor has it adopted any international standards for testing agriculture pumps in
Pakistan. PSQCA has its own laboratories for testing electrical appliances in Lahore and Karachi.
However, none of its facilities are equipped for water pump testing. Responding to the periodic requests
of individual consumers and equipment suppliers, PSQCA conducts pump tests on a case-by-case basis
at its pump installation site.
Reference Standards for Tubewell Pump Testing
It is common for countries that are developing test procedures for appliances to adopt either
international test procedures or, if available, the procedures accepted in a neighboring region with similar
economic and climatic conditions. Since no test procedures have been adopted in Pakistan for pumps
(for either quality or energy performance), one possible solution would be to adopt the test procedures
developed by the Indian Bureau of Energy Efficiency (BEE) for agriculture pumps.
India currently has the following national standards that included test procedures for agriculture pumps:
No. Product detail
Electrical pumps
Range
kW
No. of
Poles
Applicable
Indian Standard
1. 3 Phase open well
submersible pump sets
1.1kW, 1.5kW, 2.2kW, 3.0kW, 3.7 kW
&5.5kW, 7.5kW, 9.3kW, 11kW, 15kW
2 Pole   IS 14220:1994
2. 3 Phase submersible
pump set
1.1kW, 1.5kW, 2.2kW, 3.0kW, 3.7 kW & 5.5
kW, 7.5kW, 9.3kW, 11kW, 15kW
2 Pole   IS 8034:2002
3. 3 Phase mono‐set pumps 0.37kW, 0.75kW,1.1kW, 1.5kW, 2.2kW,
3.0kW, 3.7 kW & 5.5 kW, 7.5kW, 9.3kW,
11kW, 15kW
2 Pole   IS 9079:2002

These Standards are available from BEE at www.bee-india.nic.in.
Benefits of Pump Testing
One of the obvious direct benefits that would accrue from establishing an agricultural pump testing
facility in Pakistan is the ability to label electric pumps with respect to their energy use or energy
efficiency. Energy labels inform consumers about the relative efficiencies of alternative models of a
product they may wish to purchase. Labeling is a proven market transformation instrument that can
improve the average efficiency of products in a country. However, labeling programs are difficult to
enforce in the absence of the ability to test the efficiency level of different products.
The availability of test procedures and testing facilities stimulates manufacturers to produce higher
quality products, and allows them to promote their products based on the actual testing results.
Establishing a robust system of testing and labeling (and eventually MEPS) for agricultural pumps would
facilitate a shift in farmers’ demand for high quality and energy efficient pump sets.
3.5.3. PUMPS ON THE MARKET
KSB Pakistan (KSB is the registered name for Klein Schanzlin and Becker): KSB Pakistan is a reputable pump
manufacturer, having a wide range of product offerings (centrifugal, submersible, deep water turbine
pumps). KSB has a foundry and factory in Hassan Abdal, and has been in operation in Pakistan for the
past 50 years. They are a public limited company, and listed on the Lahore and Karachi stock exchanges.
KSB Pakistan is trained by their German principles, and has an in-house design team. They have in the
past undertaken training and provided sales support to pump projects for water and agriculture projects.
KSB has a sales office and 10 distributors in the Multan regions. Lead time was given as 3-4 weeks with
some e.g. 15 HP motor pumps being available in a shorter lead time.
HMA Pumps (HMA is the registered name and is not an acronym): HMA is a manufacturer of pumps under
license from Grundfos, a large Danish concern. They have been in operation for the past 25 years, and in
1988 they started a manufacturing/assembling facility. They mostly specialize in submersible and deep
water turbine pumps, and are well reputed in these sectors. However, under license from Grunfos, HMA
has limited experience in selling their centrifugal pumps for the agricultural sector; most of their
centrifugal pumps have been selling in the water supply sector, and they import these from Holland.
Their deep well turbine and submersible pumps are more useful in areas where the water depth is lower.
Their deep well turbines could be utilized where the water table is deeper (some regions of MEPCO; e.g.
DG Khan, Bahawalpur, etc.), and other Discos (QESCO, HESCO, PESCO, etc). For the centrifugal
pumps range, HMA has partnered up with SBCO, a Swiss Pump Manufacturer. In this range, HMA
imports the components and assemblies them in Pakistan. HMA has a sales office but no distributor
network in Multan. Lead time for products was given as 4 – 5 weeks.
Pakistan Engineering Company (PECO) Limited: PECO is partially owned by the Government of
Pakistan, and has been in operation since 1951. The company is listed on the stock exchange. The
company was nationalized and production suffered. Later it was privatized in 2003. The Company is
manufacturing pumps for use in agriculture, water supply, drainage, de-watering, sugar industry, etc.
Initially, the company collaborated with KSB Germany for the pumps. Later KSB set up its own
production facility and PECO acquired technology from M/s Jaccuzi, U.S.A for pump products. Their
products are sold through a distributor. In Multan the distributor has sub distributors. Lead time has
been mentioned as 4 – 5 weeks for most of the products.
Other Manufacturers and Vendors: The other pump manufacturers in Pakistan are only component
assemblers; they import the components (castings, impellers, etc.) from China, and assemble the pumps
in Pakistan. Origination of pump components and the reliability of supply are inconsistent and pose a
risk for this implementation pilot. The major ones are Climax, Golden, MAK, and FPI in addition to

several other assemblers. The Project did a preliminary survey for some of these, but based on
manufacturing facilities and market reputation, considered only KSB, HMA, and PECO as the main
contenders.
3.6. IMPLEMENTATION
3.6.1. AUDITS
A detailed energy audit is undertaken to collect detailed information (about agricultural consumers
considered in the pilot project) such as details about pumps and motors (type, make, age, and rating)
water requirements, status of meter installation, electrical consumption (voltage, current, power factor,
and power consumption), underground water level in different seasons, power supply pattern, and the
farmer’s willingness to participate in the USAID Subsidy Program. All energy efficiency auditors were
familiarized with the procedures to be followed at site during the measurements and provided with a
detailed data collection form attached as an Appendix I. A senior energy efficiency engineer is
monitoring all the teams, and scheduling auditing activities in close coordination with MEPCO
personnel, who help with scheduling of load shedding on relevant feeders.
3.6.2. DETAILED PUMP SET PERFORMANCE EVALUATION
For all pump sets being audited, a detailed analysis is carried out by measuring the suction and discharge
head, power input, and water flow to evaluate the operating efficiency of all the pump sets. Based on the
audit study, an efficiency index for the existing pumping system is prepared. During the audit, other
parameters and site conditions like delivery valve position, working of foot valve and type of piping etc.,
are also studied. The format of the detailed Energy Audit Form is attached in Appendix I.
3.6.3. REPLACEMENT PUMP SET SIZING
The capacity and type of new energy efficient pump sets that can replace the existing pumps for the
same discharge is suggested, based on analysis after evaluating the existing pump set performance and
operating efficiency. Optimum sizing of pump sets for the same water discharge rates leads to a more
optimal energy use.
3.6.4. ENERGY SAVINGS CALCULATIONS
The energy saving potential that can be achieved by replacing existing pumps with that of the best
efficiency KSB pump set is quantified based on the analysis of the measurements. A detailed cost benefit
analysis associated with the implementation of each of the proposed energy conservation measure in
undertaken.
3.6.5. INSTALLATION
The pump manufacturer visits the farmer’s site, with a chain pulley mechanism to disassemble and take
out the old pump. In some instances, a chain pulley mechanism is not sufficient, and a crane needs to be
brought onsite to remove the pump so that the casing and bore are not damaged. The farmer is then
informed by the pump manufacturer of any civil works that need to be carried out at site, before the
installation can take place. These civil works are undertaken by the farmer at his own cost. Once the site
is ready, the pump manufacturer carries out the installation and commissioning of the new pump set,
which includes a three-hour trial run to ascertain the water flow, energy consumption, and efficiency.
3.7. PROJECT MILESTONES AND TIMELINE
The Project was initiated with an inception report. In October 2009, the Project organized a workshop in
collaboration with the World Bank and Alternate Energy Development Board (AEDB). The resource
persons included IRG experts, industry executives, an ESCO executive, and a senior official of MEPCO.

Later IRG fielded a team of DSM Specialists in November 2009 and March 2010. The team interacted
with farmers, financial institutions, ESCOs, and pump manufacturers and vendors. The Project began in
March. However, USAID requirement to submit an environment risk mitigation plan and the detailed
contract negotiation with KSB, the identified pump manufacturer, concluded in late April 2009. With a
three- week lead time in the contract, KSB delivered and installed the first pump in the third week of
May 2009. Investment in tubewell pumps is a lumpy investment and the shortened horizon has limited
the uptake by farmers. Even though marketing activities began earlier, the actual sales began from the
third week of May 2009.
In view of the lumpy nature of investment, the decision time required by the farmer to enter into a
purchase is longer what was originally anticipated. The decision making is heavily peer-oriented and a
sizable purchase by the more prominent or more established farmers is recognized now as the main
factor in the decision making process of the farmers.
Extraneous factors such as load shedding and slower purchase of the wheat also shape the farmer’s
decision. The recommendation is that penetration in the market is much slower. The decision is
dependent on availability of funds which in turn are heavily dependent on the sale of the standing crops.
To smoothen out the sales, it is suggested that the selling period cover several harvesting periods,
allowing farmers to benefit from the tubewell replacement program.
The pilot clearly demonstrated the dynamics of what was originally presumed to be a simple pump
replacement program. The configuration of the pump and motor is driven by water table projections in
coming years. Slower recharge and increase in pumping load though electric and diesel pumps are
depleting the groundwater resources. This decline is highlighted by the fact that the farmers enrolling in
the program fear a 50 to 80 feet drop in the next five years. Therefore, the installation of a pump and
motor is also driven by future expectation. This compounds the problem of delivering the adequate
pump and motor. It requires discussion and information on farmers and careful assessment by the pump
manufacturer. The pump manufacturer in the pilot program KSB has been selling pumps in the Multan
region for the last 50 years and has a standing relationship of trust and reliability, which has helped in the
installation of the pumps.

Project Kick Off
Phase 1: Pre-selection of Eligible Farmers
Data Collection for MEPCO tube well consumers for 2009 (Complete)
Selection of Target Farmers meeting shortlisting criteria
Identification of Target Areas
Preparation of List for Short Listed Farmers
Phase 2: KSB Contract
Phase 3: Marketing of USAID Tubewell Subsidy Program
Marketing and Awareness Raising Seminars
Local Dissemination Activities
Advertising
Marketing Campaign
- Initial Contact with Target Farmers
- Seminars at District Level
- Collection Of Farmer Tubewell Information and Program Enrolment
Preparation of List for Interested Farmers
Phase 4: Energy Audits
Setting Up Audit Time with Farmers
Energy Audits
Preparation of Detailed Audit Report
Phase 5: Collection of Farmer Contribution
Independent Site Visit and Deal Closure with Audited Farmers
Independent Assessment of Each Tubewell
Phase 6: Tubewell Pumpset Installations
Replacement of existing Pumpsets with new Pumpsets
Phase 7: Post Implementation Audits) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Post-Implementation Energy Efficiency Audits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Preparation of Post Audit Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IRG / PITCO
KSB
July 2010
21 22 23 24
March 2010 April 2010 May 2010
5 6 7 15 25 ……………….. 453
TIME SCHEDULE 1 2
February 2010
4 8 9 10 11 12 13 14 16 17 18 19
June 2010
20
August - December 2010
DISCO Cooperation: In MEPCO, this cooperation was lagging due to very low buy-in from the top
management of MEPCO. This was primarily due to the fact that MEPCO felt they were not involved in
the conceptualization of the Pilot Program. Their preference was a 100% subsidy, and a focus on specific
feeders with high agricultural consumer loads. Additionally, no senior management official “owned” the
Pilot Project idea or backed it “fully”.
Access to Consumer Billing Data: DISCO cooperation is needed for access to consumer data, most
notably past billing history data.
a. Without this it is impossible to classify users by high, medium, and low consumption.
During the Pilot, only medium and high consumption users were interested in the
Replacement Program. Consequently, this is important.
b. Consumption data is used to classify regions (Divisions, Sub Divisions, and Micro Level
Feeder villages) which have a concentration of high consumption users, signifying regions
which have a high reliance on ground water for irrigation purposes, as opposed to canal
water.
c. These regions are primary targets in a Targeted Marketing Campaigns.
d. This data is used to explain the approximate saving in monthly billing that a farmer would
get by replacing his pump set.
Disposal of Old Pump Sets: One of the biggest obstacles to the adoption of the scheme is farmers’
reluctance to give up their existing pump sets without any compensation for them. Farmers’ perceptions
are that that their existing pumps and motors are worth far more than they actually are.

Feeder Level Focus: MEPCO was originally of the opinion that the program should be 100%
subsidized, and focused on specific feeders, and ought to replace all tubewells on those feeders. Making
the program feeder focused would help them reduce load on high agriculture consumption feeders. This
was not a viable approach for the pilot program because:
a. Being feeder specific on a 50% subsidy is risky as only a few of each feeder’s consumers may
sign up for replacement, thus jeopardizing the overall success of the program.
b. This is not a sustainable model, and doesn’t give other consumers incentives to change to
energy efficiency.
Pump Manufacturer Short Listing and Selection: There are currently only three reputable pump set
manufacturers operating in Pakistan with a good quality standing.
Training of Local Specialists: None of the three reputable pump set manufacturers have trained local
technicians representing them for repair and support in the most rural regions of Pakistan. One of the
most commonly asked questions by farmers in the Pilot Program was who would repair the KSB pump
and motor after the warranty expires.

4. MARKETING &
AWARENESS CAMPAIGN
4.1. INTRODUCTION
A CRCP marketing team is undertaking social marketing and promotional activities for raising awareness
and convincing the farmers to replace their worn-out pumps with new energy efficient ones.
In order to familiarize the marketing team with the program objectives, implementation strategies,
stakeholders, and marketing plan, a one-day training workshop was organized before initiating marketing
and promotional activities.
4.2. MARKETING
4.2.1. MEETINGS WITH FARMERS/FARMERS’ ASSOCIATIONS
To raise awareness about the USAID Program, Farmer meetings were organized at several villages, and
rural locations, where about 700 + farmers participated and discussed the issues associated with the pilot
project. Farmers meetings in MEPCO region were arranged in coordination with MEPCO officials, in
Layyah, Khanewal, Lodhran, and Multan.
After identification of the farmers in the light of customer eligibility criteria, the marketing team
contacted the farmers and convinced them to sign up for the program. Around 1,700 farmers were
individually contacted by the marketing officers to promote the replacement program and persuade
them. As a result of the marketing and outreach activities, so far, 992 signed Letters of Intent (LOIs) for
tubewell replacement have been submitted for further action by the technical team. The tubewell
replacement applications and complete contact details of the farmers willing to participate in the
program have also submitted along with the LOIs. The following table gives information about the
number of LoIs achieved in the MEPCO region:
An encouraging success story from the marketing activities is the signing LoI and replacement
application by a woman farmer. The female owner of tubewell pumps, Mrs. Azra Mehmood Sheikh,
owns 100 acres of cultivated land near Sutluj River Bahawalpur.
She was so inspired by the concept of energy conservation, through energy efficient pump replacement,
that she not only expressed her willingness for tubewell replacement but also signed LoIs for the
replacement of all three tubewells installed in her land. This progressive step by this woman farmer will
encourage and inspire more farmers – especially female land owners – to get enrolled in the program.
Besides one-to-one meetings with farmers, the marketing officers also conducted farmer
gatherings/group meetings at village level, and farmer meeting places. Around 24 farmer
gatherings/group meetings have been conducted so far to raise awareness and to pass on information
about the program to prospective farmers at village level. These group meetings also helped register the
interested farmers into the program. One group meeting has also been conducted with the women
owners of lands and women from the families of prospective farmers.
Considering that the Punjab Agriculture Department has an extensive network of offices throughout
Punjab and they can also help in program promotion, the marketing team held meetings with their

representatives. During these meetings the department officials were convinced to promote the Program
through their respective Deputy District Officer (DDOs) in each Sub-division and Tehsil of the MEPCO
region.
The marketing team also coordinated and arranged meetings with the owners of sugar mills, wheat mills,
and cotton mills to convince them about replacement of tubewell pumps owned by these mills.
Moreover, the farmers who are supplying sugar cane, wheat, etc., to these mills were also informed and
convinced to get enrolled in the program.
4.2.2. MEPCO AWARENESS WORKSHOPS
As a part of Pilot Project, 2 workshops for MEPCO employees were conducted on April 9, 2010 and
May 14, 2010. The objective of the workshop was to make MEPCO Superintendent Engineers (SEs)
from all Divisions, along with their Executive Engineers (EXNs) and Sub Divisional Officers (SDOs)
aware of the USAID Tubewell Replacement project and benefits of the scheme to MEPCO.
Additionally, on June 3, 2010, a joint marketing meeting with MEPCO was held in Multan Circle SE to
apprise the farmers about the benefits of the program, and to talk about the results achieved with the
pumps that have been installed.
4.2.3. BROCHURES
 28,000 brochures/registration forms are to be distributed among potential clients.
 25,500 brochures/registration forms were provided to MEPCO, for the purposes of distribution
along with their monthly electricity bill in May 2010. These were for 25,500 consumers with a
monthly electrical consumption of 3,000 units or more.
 1,500 brochures were provided to CRCP, for distribution to farmers through their 13-person
marketing team. The marketing team circulated around 1,500 copies of the brochures, produced
under the program, among the farmers during individual meetings and farmer gatherings. The
brochure provided information to farmers about the program and its significance.
 There are 20 banners that have been printed out; the size has been set to 15ft x 3ft. These
banners are used at farmer meetings and other events to promote the program.
4.2.4. CALL CENTER
A dedicated Call Center has been set up comprised of three individuals, with call-back facility. The call
center is the primary contact for farmers who received brochures through their electricity bills or
through direct mailing. More than 1,200 farmers have been registered with the Call Center (either they
have called in, or outward calls from the Call Center). Those interested are passed on to the Consumer
Rights Commission of Pakistan team for personal contact through site visits.
A software application has been designed to cater to the needs of the call center, with effective storage of
data in a database, and instant archival of information.
While attending an incoming call, each Call Center Representative is required to complete this form. The
information entered in the form help the team in initial screening and evaluation of the case. The
MEPCO Reference Number and Billing Data collected by the farmer are verified against the Billing Data
collected from MEPCO as part of the project activities. Data collected from MEPCO was uploaded in
the Tubewell Call Center Application right at the start.
Once data of a particular call is entered into the application, it gets listed in the Call Received List. This
provides the PITCO team with instant access to information of each farmer. The application provides

the facility to filter the list on multiple criteria e.g. Call Center Representative Name, Creation and
Modification Dates, Division, Sub Division, Customer Reference Number, Tubewell Type, Year of
Installation, etc.
4.2.5. ADVERTISEMENTS/NEWSPAPERS
Advertisements for the pilot project will be printed out in two main news papers, the “Nawa-e-Waqt”
and “Jang.” These are the leading newspapers in Urdu that are distributed around the country. The
adverts have been featured in papers on March 21 and 23, 2010.
4.2.6. CRCP MARKETING TEAMS
CRCP has a 13-person marketing and outreach team personally visiting farmers to convince them of the
benefits of the program, along with the subsidized price of a possible energy efficient replacement pump
set. If a farmer shows willingness to participate, the agent collects the farmers’ ID card, MEPCO bill,
and proof of land holding; this is to ensure the true land owner’s consent, and minimize abuse of the
program.
Meeting with Farmer Association and Groups: The meeting organized mainly by KSB resulted in
sizable attendance. The participants have good knowledge of the irrigation techniques and Q&A sessions
were informative. There is a tendency to quickly adopt the more vocal participant’s viewpoint, which can
at times be negative in content. The nearly universal objection was the repossessing of the old
pump/motor and its perceived value. The farmers felt that in most cases the co-financing was not
attractive as their old pump could be resold and provide funds equal to or more than the 50% subsidy.
In smaller centrifugal pumps this objection was more visible. Meetings played a prominent role in
attracting farmers to the program.
Meeting with MEPCO officials: MEPCO official are an integral part of the program as the Program is
designated as the collaboration between USAID and MEPCO. The buy-in was limited as the official
Memorandum of Understanding (MoU) was not signed on advice of USAID. This resulted in a semi-
formal relationship and the Project’s affiliation with MEPCO was not effective in marketing the project.
Brochures: Brochures are an effective marketing tool. More professional information packaging and
presentation is recommended. Utilization of the DISCO billing cycles is required to be formalized as part
of the MoU. It is recommended that brochures be distributed in tranches. The early ones should be
announcements and the later one sshould have a success story with energy saving calculations. Farmers
were most interested in knowing the names and addresses of the early adopters.
Call Centers: Call centers serve as not only registration portal for farmers willing to join the USAID
program but also serve as information dissemination and data collection centers. It is recommended that
the call centers be equipped to collate, analyze, and follow up leads. The Call Center should be toll free
numbers and should have adequate lines and a knowledgeable representative, preferably able to respond
in local languages.
Advertisements: The medium of advertisement should be enlarged to include television and radio spots.
It is recommended that in the initial stages an info commercial on the benefits of adopting energy
efficient tubewells, mechanized farming, and the potential to significantly boost production while
reducing energy and water is transmitted on local TV channels. SMS marketing is another aspect which is
recommended as it allows the farmers to retain messages for future retrieval.
Marketing Teams: Sales team of representative well acquainted with products, financing, and
registration guidelines can be useful. The Pilot used existing subcontractors, and their knowledge was

enhanced while implementing the Pilot program. In future it is recommended that the sales team be
provided comprehensive training and made familiar with the products enabling them to go out and close
sales rather just registering potential farmers. The team should be mobile and provided identification tags
and written quotations for farmers. In the Pilot, a gap developed between the sales team visit and the
pump manufacturer’s sizing. The information on sizing and prices was conveyed to the team. Lack of a
formal quotation addressed to farmers and conveying technical specification and prices was required by
farmers rather than verbal information. In some cases the verbal communication created
misunderstanding and the farmer deposited checks in amounts which were different than those charged
by the pump manufacturer.

5. FINANCING
5.1. INTRODUCTION
Given the goal of the pilot to install just 1,000 pumps, interest in participation from banks and other
conventional sources financing was limited, given the limited scale of the program. Commercial banks
indicated that they would be interested in participating in the full-scale implementation, whereby 11,000
tubewell pumps would be installed.
5.1.1. MEETINGS WITH COMMERCIAL BANKS
We met with the following commercial banks:
 Bank Al Habib Ltd.
 National Bank of Pakistan
 Bank Alfalah Ltd.
 Allied Bank Ltd.
 Habib Bank Ltd.
 Faysal Bank Ltd.
The above-noted banks are active in lending to farmers. The typical farm loan is for a period of 3-5
years at interest rates exceeding 14-16% and a collateral requirement of 100% in the form of pledged
land. In most cases lending was either for heavy equipment like tractors or for raw material like fertilizer
and seeds. Given high interest rates and the custom of borrowing from friends, family, and other
affiliates, only a limited amount of farmers utilize formal, bank-financing options. The noted observation
was only validated by a recent State Bank commissioned survey on farmers in Sukkur, Sindh.
Discussions with banks centered on the potential repayment mechanisms, including options to pay
monthly or bi-annually. The banks noted that it would be challenging to tailor a program for a relatively
small pilot program and indicated that they would be willing to consider participation in the full-scale
program.
5.1.2. MEETINGS WITH CENTRAL BANK & DONOR AGENCIES
Meetings were held with representatives from the State Bank of Pakistan and the Zarai Taraqiati Bank
Ltd (ZTBL), the agricultural finance arm of the Government of Pakistan. ZTBL is already lending to
farmers for tubewells. It lends mainly to small farmers, with only 14% of its loans going to medium- and
large-scale farmers. Its loans require collateral commitments in excess of the loan value, so additional
credit can be extended to farmers without additional collateral requirements, if ZTBL was to participate
in the program. With 350 branches and a staff of 5,000, ZTBL has a wide network. In addition, ZBTL
offer a unique mobile banking feature to its non-urban client base. However, it was noted that the bank
“lacks the capital resources to serve as the credit provider under a USAID tubewell program.” Meetings
were also held with representatives of the Asian Development Bank and the World Bank.

5.1.3. MEETINGS WITH MICRO FINANCE INSTITUTIONS, SME BANK AND THE
RURAL PROGRAMS SUPPORT NETWORK (RPSN)
We meet with Khushali Bank, a micro-lending institution that lends to very small businesses. While
Khushali Bank’s scope and lending limits do not make them an ideal participant in the program, they
recommended meetings with Tameer Microfinance Bank and First Micro Finance Bank in Karachi and
the commercial banks, which we met in Multan.
A meeting was held with the SME Bank that lends to small- and medium-sized businesses and the SME
Leasing Company. A meeting was also held with the RPSN, a collection of village and community
organizations and local support organizations that work with and help organize farmers to engage in
collective sales and collective purchasing. RPSN has a credit line from United Bank Ltd. and makes loans
that are typically Rs10,000 to 40,000. The RPSN does not have formal collateral requirements. Instead,
they ask for social collateral wherein a group of farmers vouch for each other and guarantee the loan
repayments for each other.
5.1.4. DEVELOPMENT OF ESCO
An energy service company (ESCO) is a professional business providing a broad range of
comprehensive energy solutions including designs and implementation of energy savings projects, energy
conservation, energy infrastructure outsourcing, power generation and energy supply, and risk
management. The ESCO performs an in-depth analysis of the property, designs an energy efficient
solution, installs the required elements, and maintains the system to ensure energy savings during the
payback period. The savings in energy costs is used to pay back the capital investment of the project
over time.
In an Energy Performance Contract (EPC), an ESCO develops, implements and finances (or arranges
financing for) energy efficiency or renewable energy projects, and utilizes the stream of income from the
cost savings, or the renewable energy produced, to repay the costs of the project, including the costs of
the investment. In EPC, ESCO fee is based on performance that is level of savings.
5.1.4.1. REVIEW OF ESCO DEVELOPMENT IN PAKISTAN
An Invitation for Expression of Interest (EOI) was published on October 14, 2009 in Pakistan.
Companies interested in participating were asked to submit their proposal in the two following weeks.
The deadline for submitting EOIs was October 26, 2009. The Program received 55 EOIs from
interested companies before the deadline. While the ESCO offering in Pakistan is yet to be developed,
we saw from the number and quality of the EOIs received that there is a significant interest within the
energy business community to adopt the ESCO concept. Further, during the interview process we saw
serious attempts from some companies to utilize the ESCO model to promote the development of
energy savings projects.
5.1.4.2. BARRIERS IN DEVLOPMENT
The most significant barriers in the development of an ESCO concept in Pakistan are:
 Lack of capacity and know-how and experience with the development of energy savings based
contracts.
 Lack of availability of structured Energy Efficiency investment delivery mechanism, i.e. pertinent
financial lending/leasing model within local financial institutions is another significant barrier.
From our experience we believe that the lack of availability of financing mechanisms is partially related
to the capacity of financial institutions as it relates to the ESCO concept. Since this concept is quite new
as far as this industry is concerned, the local financial institutions are not very willing to
developencourage this model due to the current recession and risk involved.

5.1.5. PRELIMINARY FINANCIAL ANALYSIS
In addition to surveying the Pakistani market to evaluate potential options to finance the Pilot Program,
we completed a preliminary financial analysis to determine payments on loans for each type of tubewell
pump and the fluctuation of those payments with various exchange rates.
5.2. LESSONS
Given the unwillingness of financial institutions to commit to a small-scale pilot program, during the
pilot phase, the post-subsidy cost of the pumps was covered by the farmers themselves. Lessons learned
on the financing end are a direct result of input from farmers and meetings with commercial banks and
other financial institutions in Pakistan.
A survey of potential sources of financing the post-subsidy cost of the pumps and the experience of the
technical team, interacting with the farmers, has resulted in the following conclusions:
5.2.1. FINANCING MUST COMPLEMENT EXISTING REVENUE STRUCTURE
The financing options must work with the structure and timing of the farmers’ revenue stream. Farmers
get revenue in bulk, bi-annually, during the two harvest seasons. In most cases, financial planning on the
part of the farmers is limited and there is a tendency to incur major expenses in the immediate aftermath
of receiving the bulk payments. A monthly installment-based, conventional system of debt repayment is
unlikely to succeed. The payment structure must be such that the farmers are able to make payment
around the time they receive revenues.
5.2.2. COST OF FINANCING
Reputable commercial banks like Habib Bank, United Bank, and MCB cater to agricultural consumers
and financing for tubewells is available. However, interest rates that exceed 17-18% per annum serve to
discourage farmers from availing themselves of bank credit facilities. Add to that the cultural/religious
resistance towards interest and a tendency to borrow, often interest-free, from acquaintances and the
importance of lower interest options becomes only more pronounced lower interest rate options will not
be available without support from the State Bank of Pakistan, the Zarai Taraqiyati Bank, and/or a
mechanism of external guarantees.
5.2.3. CULTURAL SENSITIVITY TO FINANCING
In addition to considering financing options that are relatively low cost, we should be sensitive to socio-
cultural beliefs, whereby there is a resistance towards interest bearing financing. Islamic financing should
be considered as an option. While this culturally sensitive form of financing may not mitigate the cost of
borrowing, it would help a less financially sophisticated audience consider financing options.
5.2.4. COLLATERAL REQUIREMENTS & DOCUMENTATION
Collateral and documentation requirements of commercial banks are stringent and it is possible that
willing participants, who “need” financing opportunities to benefit from the program, are unable to
satisfy the requirements of commercial banks. Therefore, we must consider alternative sources of
finance, like microfinance institutions, as an option. Microfinance institutions have programs in place to
work with the above-noted collateral challenges. However, the cost of financing is expected to remain a
challenge with this option as well, though we continue to investigate.
5.2.5. PRE-PAYMENT PENALTIES
Where long-term financing options (say, five years) are concerned, the farmer must be able to prepay
without penalties. Given cultural norms and the bulk revenue flow to the farmers, farmers are expected

to be receptive to options that allow them to finance the purchase until the next harvesting season, when
it is customary for farmers to repay all debts
5.2.6. SHORT-TERM FINANCING OPTIONS
In addition, we must consider formal short-term financing options. Such options will serve as a bridge
between the period of payment to the pump manufacturer and when the farmer receives cash, in the
immediate aftermath of the harvest season.
5.2.7. MULTI-PRONGED APPROACH
We must be open to idea of forming multiple programs, with multiple financial institutions; programs
with commercial banks for larger farmers who may own from four to six tubewells and have the ability
to meet collateral requirements and are comfortable with terms and conditions put forward by
commercial banks; programs for relatively small farmers in association with microfinance institutions
and/or tailored programs with a leasing company.
5.2.8. FLEXIBLE SUBSIDY REGIME
As we evaluate possible financial mechanisms, flexibility on the proposed subsidy amount of 50% is
advisable. In the past, the Government of Pakistan and provincial governments have launched 80/20
subsidy programs (e.g., SCARP Privatization Program). In addition, the subsidy amount should aim to
mitigate the financial attraction of relatively cheap, but energy inefficient alternatives are easily available
in the Pakistani market.
5.2.9. ESCO
The lack of capacity is being addressed through the ESCO development program. Significant steps are
already taken through the ESCO training provided so far. As it relates to the tubewell pilot project the
ESCO concept has not been used. It was pre-mature to adopt the ESCO mechanism because the
companies involved were not ready with the required capacity.
5.3. FINANCIAL BENEFITS
5.3.1. COST SAVINGS FOR FARMERS
Installation of an efficient, energy saving pump results in savings to the farmer by reducing electricity
use. Even though electricity is made available for agricultural pumping at a subsidized tariff of Rs 4.42
per kWh, compared to average tariff of Rs 8.80 per kWh, savings from pump replacements are still
substantial to the farmer. The table below shows the annual savings to the farmer from the use of
different size pumps. The pumps are expected to save the farmer approximately 30% electricity, and the
simple payback period is calculated based on the noted savings. It is assumed that 50% subsidy has been
provided as an incentive to farmers to purchase the efficient pumps.

Benefits to Farmers
10 HP/ Centrifugal                          7,663 $713 $361                        1.98
20 HP/ Centrifugal                        15,659 $823 $737                        1.12
20 HP/ Turbine                        20,860 $1,661 $982                        1.69
25 HP/ Centrifugal                        20,082 $849 $945                        0.90
30 HP/ Turbine                        20,969 $1,776 $1,209                        1.47
30 HP/ Centrifugal                        21,908 $884 $1,031                        0.86
Pump Size/Type Energy Savings/yr
(kWh)
Cost to farmer
(Pak Rs.)
Yearly Savings
(Pak Rs.)
Simple payback
(Years)
For most pumps the simple payback time is between 1 to 2 years. The table shows that the smallest
pump (10 HP) has a longer payback period. It also shows that turbine pumps tend to be more expensive
and have a longer payback period.
5.3.2. BENEFITS TO MEPCO
In addition to the benefits to the farmer, installation of efficient tubewells shall serve to benefit MEPCO.
This is because the Distribution Company is able to sell the electricity saved by the farmer at a higher
price to other consumers on the grid. The table below shows the annual savings for MEPCO for the
same three pump sizes listed above.
Agricultural consumers are supplied electricity at a subsidized metered tariff of Rs 4.38 per kWh whereas
average power tariff is approximately Rs 9.0 / kWh. Hence, MEPCO benefits from a reduction in
agricultural energy consumption. The saved energy can be sold to other consumers at an average
addition of Rs. 5 per kWh to the rate. An analysis of the benefits to MEPCO, from selling electricity
saved from tubewell consumers, to other grid consumers, is depicted in the table below.
Benefits to MEPCO
Pump Size/Type Energy Savings/yr
(kWh)
Savings/yr to MEPCO per
replaced tubewell
10 HP/ Centrifugal 7,663 $451
20 HP/ Centrifugal 15,659 $921
20 HP/ Turbine 20,860 $1,227
25 HP/ Centrifugal 20,082 $1,181
30 HP/ Turbine 20,969 $1,233
30 HP/ Centrifugal 21,908 $1,289

6. RECOMMENDATIONS FOR
EXTENSION
6.1. BACKGROUND
Implementation of a large-scale tubewell pump replacement project – 11,000 pumps and beyond –
requires coordinated work in several directions. Technical, market, and financing issues must be
addressed.
From the technical side, it is necessary to identify and supply energy efficient and durable pump sets.
Carrying out an international competitive procurement process would ensure that the best available
products on the international market were used for the project, and procured for the most cost-effective
price.
From the market side, consumer demand for efficient pumps must be in place prior to engaging in large-
scale procurement. The public awareness campaign organized by the EEC Project has already started to
build such demand among Pakistani farmers. The outreach efforts should be continued and expanded,
and should involve different types of mass media, consumer group consultations, and technical
demonstrations. An energy efficiency labeling program will complement the awareness campaign and
significantly enhance efforts to shift the market toward efficient tubewell pumps.
Financing the procurement and installation of new, efficient agricultural pumps requires creative
approaches and continuous monitoring and adjustment. In the early phases, the combination of donor
funds, low interest bank loans and consumer cash contributions would be a good solution. Market
mechanisms such as ESCO financing may be considered as well.
The large-scale tubewell pump replacement shall be located in Punjab and Sindh.

6.2. STRUCTURE AND ORGANIZATION
FARMERS
• Enrollmentinto the
Program
• PermissionforPre-
Installation Energy
Audit
• Payment of 50%
Contribution
• Giving up Old Pump
set
• PermissionforPost
InstallationAudit
Sales and Marketing
• PR Firm
• Program Aw arenessPricing???
• Farmer Enrollment
• Pump Sales Closure
Project Management and Auditing
• Marketing Firm Coordination
• Pre-installation & Energy Auditing
• Pump Manufacture/Coordination
• ReplacementSizing
• Installationand CommissioningCoordination
• Post InstallationEnergy Auditing
Independent Installation & Commissioning
Contractors
• Design & Installation
• New Pump setInstallation &
Commissioning
• Repair & Maintenance
Pump Manufacturers
• Replacement6 Sizing
• Production of Energy Efficient Pump sets
• Testing of Energy Efficient Pump sets
• Demonstrate the Energy Savings
• Performance & Installation guarantee
Grid Pump Disposal Contractor
• Collection & Disposal ofOld Pump
• Setting Value Paymentto Farmer
• IndependentMonitoring & Evaluation
DISCO
• Customer & Feeder Access
• Marketing & Customer Outreach Support
• Continuing w ith Energy Loss Reduction Funds
USAID / DCA
• USAID Subsidy Funds
Banks
• Soft Loan to Farmers
State Bank of Pakistan
• Policy Framew orkto Facilitate Loans to Farmers
DISCO
• Facilitate Payments to ESCO Banks
through Farmers MonthlyEnergy Savings
ESCO
• Loan to Farmers
• Recovery Via DISCO from Farmer Energy
Sagings

Water and agriculture: The high rate of growth in agricultural electricity consumption results from
aggressive rural electrification coupled with a policy of below-cost pricing to farmers. The result – a high
share of total electricity used for irrigation pumping and very low revenue generation on agricultural
sales ― has created an increasingly unsustainable situation. Therefore, water, agriculture, and energy are
very closely inter-related, and this nexus needs to be thoroughly considered while designing the 11,000
tubewell program.
Stakeholder Responsibilities: Several stakeholders that have been absent in the pilot program need to
be involved:
 Ministry of Water and Power: This is primarily a power reduction and Demand Side
Management project, and the involvement of the Ministry of Water and Power is essential to
achieve successful implementation of the larger 11,000 pumps program. The Ministry
could even be involved in financing the remaining 50% of the payment.
 Provincial Government: Enlisting the support of the Provincial Government is also
essential for the success of the Project. The Government of Punjab controls the Bank of
Punjab, which has a very large agriculture division, and could be instrumental in providing
financing to the farmers at concessionary rates. Strong backing by the Government is
essential. The degree of enthusiasm shown by the Provincial Government will send a signal
to farmers and also to other key stakeholders about the relative importance of this program
and how responsive they should be in doing what is necessary to make it a success.
 State Bank of Pakistan: Soft loan financing for farmers is critical for the success of the
11,000 Program.
Signed Memorandum of Understanding: The preliminaries should include MOUs between USAID
and the Federal and Provincial Governments, and between the USAID and each DISCO, enlisting their
active support for the Project. The MOU should specify the assumptions and the interests of the parties,
including the benefits each will receive, and the commitments each must make to the Program.
DISCO Commitment: In the 11,000 Program, it would be critical to get more comprehensive buy-in
from the DISCO before starting the program in the region. There are several potential DISCOs to work
with, and a final selection of the DISCOs should be made partially based on which ones are willing to
back the project most.
Political Endorsement: Political endorsements should be used by involving influential politicians in the
inauguration of the project, and similar functions. This builds pressure on the DISCO to perform its role,
as political oversight over the program increases their motivation to make it a success.
DISCO Enforcement of Efficient Pumps on the Grid: Another area where the DISCO and the
Government can support the 11,000 Program is in the development and enforcement of a policy
requiring a testing and branding of efficient pumps. Cracking down on the installation of cheap and
inefficient pumps, in parallel with promoting replacement to energy efficient pump sets will provide
critical practical support to the implementation of the program.
Project Organization: The Pilot Program has shown that this is really an agriculture product marketing,
sales, and implementation program. With farmers still paying a high percentage of the pump cost, which
is approximately the same price as a new inefficient pump set, the Project’s Organizational Structure
must be geared up like a commercial organization launching a product in the market.

Process Component Activities
Executive Management Project Management
Partner Relationship Management
Vendors
Government
DISCOs
Banks
Sales Forecasting and Production Scheduling
Pump Ordering
Marketing & Sales Advertising
Target selection
Marketing field sales visits
Sales Closure
Energy Auditing & Sizing Energy Auditing
Sizing
Marketing and Sales Support
Measurement of Energy Saved
Pump Manufacturing,  Installation & Commissioning Marketing and Sales Support
Order Forecasting
Pump manufacturing
Installation & Commissioning
Performance Monitoring and Evaluation Monitoring and Evaluation
Program Design Phase: There should be a three-month program design period, which should include:
a. EOI and short listing of Pumpset Manufacturer
b. Creation of financial instruments
c. Creating the marketing and outreach strategy
d. EOI and selection of Media & PR company
e. Auditing Schedule
f. Pump set sales schedule
g. Pump set batch-ordering and manufacturing schedule
h. Setting the pump set installation schedule
i. Selection of local companies for installation, after-sales repair, maintenance, and support
j. Selection of Contractor for collecting and disposal of old pumps
Farmer Selection: Following are the lessons learned with reference to selection of farmers and
recommendations for improving the process to ensure that farmers with highest possibility of enrolment
are quickly selected and convinced for the program.
 The marketing activities inform that for selection of farmers priority should be given to the
farmers with larger landholdings. Such farmers have been found to be more interested in the
program and can be easily convinced. Moreover, these farmers usually have more than one
pump and they feel comfortable experimenting with one of their pumps. Besides, in order to get
quick results it is easier to convince one farmer for replacement of three or four pumps than
convincing four different farmers.

 There is need to target only the farmers with old pumps, because the farmers that have recently
installed or replaced their pumps never agree to make another investment in a short period.
 Affluent landowners in any area should be selected as priority because they not only are easily
convinced about the investment but can also influence opinion of other farmers.
 The Project cannot be designed to be feeder specific for several reasons:
o Being feeder specific on a 50% subsidy is risky as only a few of each feeder’s consumers
may sign up for replacement, thus jeopardizing the overall success of the program.
o This is not a sustainable model, and doesn’t give other consumers incentives to change
to energy efficiency.
New Consumers: Consumers with a new electricity connection wishing to install a new tubewell pump
set are as much an energy saving initiative as existing consumers. If they get an efficient pump set, they
reduce inefficiency from being added into the system, and should be made a part of the future program.
6.3. OPERATION AND IMPLEMENTATION
6.3.1. POWER SUPPLY
Efficient pump sets require high quality power, and this is an essential precondition for achieving success
of any Tubewell Energy Efficiency Program. According to a similar AgDSM Project carried out by
USAID in India, if a High Voltage Distribution System (HVDS) isn’t installed prior to the start of the
AgDSM initiative, the probability of success for the project will be very low. However, setting up a
HVDS is a very costly initiative, and is not even on the radar of the DISCOs in Pakistan. Therefore, we
cannot expect that we will be able to convince the DISCOs to setup a HVDS especially for the 11,000
tubewell project. In the absence of a HVDS, our recommendations are:
a. Wide Voltage Pumpsets: Motors in the new energy efficient pump sets should be capable
of working on a range of voltages (300 V to 440 V); In India, similar programs have been
implemented using “Wide Voltage” pump set motors which are specially designed motors
capable of working on a high range of voltages.
b. Voltage levels too low: Energy efficient motors won’t work on low voltages, and farmers
need to purchase capacitors to improve their voltages. Cost of these capacitors needs to be
incorporated in the 11,000 program
c. Voltage levels too high: Energy efficient motors won’t work on high voltage levels, and
farmers need to purchase regulators. Cost of these regulators needs to be incorporated in the
11,000 program
6.3.2. INVENTORY EXISTING PUMPS
Based on the results of energy audits conducted at farms during the pilot phase of the USAID
tubewell pump project, the Project can develop a compendium of specifications and performance of
typical pump types used in Pakistan, and the existing water table levels. Additional audits may be
required in areas other than the pilot project area in order to ensure statistically reliable information
about existing pumps and the water table.
Based on the results of sales actually materializing, due to the higher price of turbine pumps in
general, farmers are more interested in replacing their turbine pumps (as compared to centrifugal pumps)
with energy efficient pumps and therefore the 11,000 program should cater to a higher percentage of

turbine pumps. Additionally, since Centrifugal pumps cost less overall than turbines, but have very cheap
competitive options for the farmer, the 11,000 program should promote higher subsidy on centrifugal
pumps – e.g., 70%.
6.3.3. COMPETITIVE PROCUREMENT FOR EFFICIENT PUMPS
The number of pumps to be replaced during a relatively short period of time is very high. At the same
time, the replacement project requires new pump and motor sets with high quality and efficiency. A
competitive procurement involving international suppliers could drive the equipment price down and
ensure the sufficient availability of high quality products. The Project will take the lead on organizing an
international competitive procurement.
The suppliers of the new pumps and motors must be required to disclose information about the
materials used for manufacturing their products. Conditions have to be created that would not allow the
suppliers of inefficient, and thus often inexpensive, equipment to participate in the procurement for the
program.
An Expression of Interest (EOI) on the Program needs to be advertised in local and international
publications to enlist more players into the Program. Based on the EOI submission, short listing will
need to be carried out for the pump manufacturers, along with clearly defined roles and responsibilities,
including performance guarantees on delivery time, energy savings, etc.
 At least 3-4 manufacturers should be included into the Program, based on their manufacturing,
sales, and installation capabilities and capacities. It is essential to estimate the timeline required to
manufacture, sell, and install 11,000 pump sets based on these local realities, so the timeline is
realistic.
 Specifications of the pump sets need to be thoroughly evaluated during the evaluation stage to
quantify the range of flows and corresponding head that each category of pump can deliver on,
e.g. Pilot does not include DWT able to operate beyond 200 m3/hour.
 The program should be open to all types of pumps (centrifugal, DWT and submersible pumps)
without any limitation on the number.
 The pumps should be able to run on Tractor Belt Coupling during load shedding hours. In the
Pilot Program, it was observed that KSB was reluctant to change its pump design to be coupled
with tractor belts. In the 11,000 program, it needs to be ensured that pumps should be designed
for coupling with tractor belts.
 There are several ancillary civil and erection works that need to be carried out at site to enable
the energy efficient pumps to be installed. These need to be included in the scope of the
manufacturers, and included into the cost of the program.
Energy Efficiency Testing: Since the program is an 11,000 pump project, it can establish an Energy
Labeling protocol for the pump manufacturers to qualify under, and label each of their product models
under. Products with higher efficiencies could be eligible for higher volumes or higher subsidies.
Additionally, collaboration with Pakistan Standards and Quality Control Authority should be undertaken
so that a pump certification program can be launched out of the 11,000 tubewell program.
Independent Testing of Tubewell Pump Sets: Independent pre-purchase testing of tubewell pump
sets should be undertaken to establish if the efficiency and power consumption figures being quoted by
tubewell manufacturers are accurate.

Barriers for the international procurement include the following:
 Customs duties can be an obstacle for imported pumps, as they may become less price-
competitive in comparison with the pumps manufactured in-country. Because this project is of
high importance in terms of its energy savings potential, the Pakistani government may consider
a customs duty break for pumps imported under this project.
 One of the procurement requirements should be the availability of local maintenance services for
the replacement pumps. In this case, importers that do not have local representatives would be
at a disadvantage. However, this obstacle can be overcome and even transformed into a benefit
for Pakistan if the equipment importers are required to secure arrangements with local
engineering or service firms for providing guarantee and post-guarantee maintenance of their
products.
6.3.4. CAPACITY BUILDING
It is necessary that the 11,000 program hundreds of technicians from across the country should be
trained by the pump set manufacturers (both pump and motor manufacturers), so that they are able to
repair and maintain the energy efficient tubewell pumps and motors.
It is proposed that a separate Pump Certification and Training Program is launched under this project to
certify and accredit these local technicians so that;
 The new energy efficient pump sets are not repaired by untrained technicians, thereby making
them inefficient again.
 The local pump specialists who currently handle the maintenance and repair of the installed base
of low efficiency pumps are not put out of work, and therefore start resisting the program.
6.3.5. AUDITING
Varying Energy Savings: Potential energy savings appear to be highly location specific, depending on
the water level and availability of local technical assistance. As a result, in-depth upfront energy auditing
is needed to ensure that a tubewell under consideration for replacement will improve energy
consumption. Extensive inspection, measurement and analysis of the installed pump sets in every
DISCO region must be done to decide which cross section of low energy efficiency pump sets warrant
replacement.
Token Money for Participating in the Program: A token payment should be received from farmers
to enrol them into the program, and enlist them for auditing. This will ensure that farmers are serious
about the program, and have evaluated their financial ability to pay for the replacement. To alleviate any
concerns about the payment, the check should be made out to the pump manufacturer, or billed as a line
item on the farmer’s monthly bill by the DISCO.
Cropping Cycle Considerations: While scheduling audits in a particular region, the region’s cropping
cycle needs to be considered. For example, in the paddy season, it will be impossible for the audit teams
to reach the sites due to the inundation of fields.
6.3.6. INSTALLATION
Installation takes too long:
Removing the old pump: Removing the old pump set is difficult. Non technical people have made the
old bores, with non-standardized methods. If a bore becomes defective, farmers often insert smaller
bore pipes into their larger bores pipes. This causes an existing turbine to get stuck in the bore, and

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