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Project Appraisal Document on a Proposed Loan Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD2483 Public Disclosure Authorized INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN IN THE AMOUNT OF US$420 MILLION Public Disclosure Authorized TO THE REPUBLIC OF INDIA FOR A MAHARASHTRA PROJECT ON CLIMATE RESILIENT AGRICULTURE FEBRUARY 3, 2018 Public Disclosure Authorized Agriculture Global Practice South Asia Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective December 31, 2017) Currency Unit = INR 63.87 INR = US$1 FISCAL YEAR April 1 ‐ March 31 Regional Vice President: Annette Dixon Country Director: Junaid Kamal Ahmad Senior Global Practice Director: Juergen Voegele Practice Manager: Kathryn Hollifield Task Team Leader(s): Patrick Verissimo, Ranjan Samantaray ABBREVIATIONS AND ACRONYMS AAP Annual Action Plans EX‐ACT Ex‐Ante Carbon Balance Tool ATMA Agriculture Technology FAO Food & Agriculture Organisation Management Agency BEAMS Budget Estimation Allocation & FFS Farmer Field School Monitoring System CDC Capacity Development & Coaching FIG Farmer Interest Group CDD Community Driven Development FPC Farmer Producer Company CDP Cluster Development and FPO Farmer Producer Organization Investment Plans CENA Capacity Enhancement Needs GAP Good Agricultural Practices Assessment CGWB Central Ground Water Board GCF Green Climate Fund CHC Community Health Center GDP Gross Domestic Product CIC Climate Innovation Center GHG Green House Gas CPF Country Partnership Framework GIPE Gokhale Institute of Politics & Economics CRI Corporate Results Indicator GIS Geographic Information System CRIDA Central Research Institute for GoI Government of India Development & Agriculture CTP Climate Technology Program GoM Government of Maharashtra C&AG Comptroller & Auditor General of GRM Grievance Redressal Mechanism India CCAP Climate Change Action Plan GRS Grievance Redressal Service DBT Direct Beneficiary Transfer GSDA Geo Survey & Development Agency DoA Department of Agriculture ICAR Indian Council of Agricultural Research DPC District Project Committee ICRISAT Internal Crops Research Institute for Semi‐Arid Tropics DPMU Divisional Project Management Unit ICT Information & Communications Technology DSAO District Superintendent Agriculture IEC Information, Education & Officer Communication EC Executive Committee IITB Indian Institute of Technology Bombay EMF Environment Management IISC Indian Institute of Science Framework ERR Economic Rate of Return INDC Integrated Nationally Determined Contributions IPCC Integrated Panel on Climate Change PDO Project Development Objective IPM Integrated Pest Management PIP Project Implementation Plan IRR Internal Rate of Return PMKSY Pradhan Mantri Krishi Sinchayee Yojana IWMP Integrated Watershed Management PMU Project Management Unit Program JSA Jalyukt Shivir Abhiyan PPSD Project Procurement Strategy for Development KPI Key Performance Indicators PSC Project Steering Committee KVK Krishi Vigyan Kendra RFQs Request for Quotations MACP Maharashtra Agricultural RKVY Rashtriya Krishi Vikas Yojana Competitiveness Project MAR Managed Aquifer Recharge SA Social Assessment MGNREGS Mahatma Gandhi National Rural SAU State Agriculture Universities Employment Guarantee Scheme MIS Management Information System SCD Systematic Country Diagnostic MOEF Ministry of Environment & Forest SDAO Subdivisional Agriculture Officer MPKV Mahatma Phule Krishi Vidyapeeth SMEs Small & Medium Agro‐Entrepreneurs MSAAPCC Maharashtra State Adaptation SMF Social Management Framework Action Plan on Climate Change M&E Monitoring & Evaluation SREP Strategic Research and Extension Plans NAPCC National Action Plan to Climate STEP Systematic Tracking of Exchanges in Change Procurement NGMIP National Groundwater Management TPPF Tribal People Planning Framework Improvement Program NGO Non‐Government Organization VCRMC Village Climate Resilient Management Committee NICRA National Institute for Climate WB World Bank Resilient Agriculture NPV Net Present Value YASHADA Yashwant Rao Chavan Academy of Development Administration PAC Project Advisory Committee The World Bank Maharashtra Project on Climate Resilient Agriculture (P160408) BASIC INFORMATION Is this a regionally tagged project? Country(ies) Financing Instrument No Investment Project Financing [ ] Situations of Urgent Need of Assistance or Capacity Constraints [ ] Financial Intermediaries [ ] Series of Projects Approval Date Closing Date Environmental Assessment Category 27‐Feb‐2018 30‐Jun‐2024 B ‐ Partial Assessment Bank/IFC Collaboration Joint Level Yes Complementary or Interdependent project requiring active coordination Proposed Development Objective(s) To enhance climate‐resilience and profitability of smallholder farming systems in selected districts of Maharashtra. Components Component Name Cost (US$, millions) Comp. A: Promoting Climate‐resilient Agricultural Systems 452.10 Comp. B: Post‐harvest Management and Value Chain Promotion 56.60 Comp. C: Institutional Development, Knowledge and Policies for a Climate‐resilient 33.70 Agriculture Comp. D: Project Management 56.10 Organizations Borrower : Republic of India Page 1 of 121 The World Bank Maharashtra Project on Climate Resilient Agriculture (P160408) Implementing Agency : Department of Agriculture, Government of Maharashtra PROJECT FINANCING DATA (US$, Millions) [ ✔ ] [ ✔ ] IBRD [ ] IDA Credit [ ] IDA Grant [ ] Trust [ ] Counterpart Funds Parallel Funding Financing FIN COST OLD Total Project Cost: Total Financing: Financing Gap: 599.55 599.55 0.00 Of Which Bank Financing (IBRD/IDA): 420.00 Financing (in US$, millions) FIN SUMM OLD Financing Source Amount Borrower 179.55 IBRD‐88290 420.00 Total 599.55 Expected Disbursements (in US$, millions) Fiscal Year 2018 2019 2020 2021 2022 2023 2024 Annual 25.90 54.30 105.20 102.30 81.70 50.60 0.00 Cumulative 25.90 80.20 185.40 287.70 369.40 420.00 420.00 INSTITUTIONAL DATA Practice Area (Lead) Agriculture Page 2 of 121 The World Bank Maharashtra Project on Climate Resilient Agriculture (P160408) Contributing Practice Areas Climate Change Water Climate Change and Disaster Screening This operation has been screened for short and long‐term climate change and disaster risks Gender Tag Does the project plan to undertake any of the following? a. Analysis to identify Project‐relevant gaps between males and females, especially in light of country gaps identified through SCD and CPF Yes b. Specific action(s) to address the gender gaps identified in (a) and/or to improve women or men's empowerment Yes c. Include Indicators in results framework to monitor outcomes from actions identified in (b) Yes SYSTEMATIC OPERATIONS RISK‐RATING TOOL (SORT) Risk Category Rating Low 1. Political and Governance Low 2. Macroeconomic Moderate 3. Sector Strategies and Policies Moderate 4. Technical Design of Project or Program Substantial 5. Institutional Capacity for Implementation and Sustainability Substantial 6. Fiduciary Moderate 7. Environment and Social Moderate 8. Stakeholders Low 9. Other 10. Overall Moderate Page 3 of 121 The World Bank Maharashtra Project on Climate Resilient Agriculture (P160408) COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [✔] No Does the project require any waivers of Bank policies? [ ] Yes [✔] No Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 ✔ Natural Habitats OP/BP 4.04 ✔ Forests OP/BP 4.36 ✔ Pest Management OP 4.09 ✔ Physical Cultural Resources OP/BP 4.11 ✔ Indigenous Peoples OP/BP 4.10 ✔ Involuntary Resettlement OP/BP 4.12 ✔ Safety of Dams OP/BP 4.37 ✔ Projects on International Waterways OP/BP 7.50 ✔ Projects in Disputed Areas OP/BP 7.60 ✔ Legal Covenants Sections and Description Name: Project Steering Committee Description: Maharashtra shall maintain a high‐level Project Steering Committee, with functions, composition and responsibilities acceptable to the Bank, including the provision of conceptual, strategic and policy guidance on overall project implementation, endorsement of the annual work plan and budget. Recurrent. Frequency: throughout implementation Sections and Description Name: Project Advisory Committee Description: Maharashtra shall maintain a Project Advisory Committee, with functions, composition and Page 4 of 121 The World Bank Maharashtra Project on Climate Resilient Agriculture (P160408) responsibilities acceptable to the Bank, including technical advice on the implementation of components and project activities. Recurrent. Frequency: throughout implementation Sections and Description Name: Project Management Unit Description: Maharashtra shall maintain a Project Management Unit under its Department of Agriculture (DOA), assisted by adequate professional and administrative staff, with powers, budget and functions as required to, inter‐alia: oversee day‐to‐day implementation of Project activities, ensure smooth coordination with other departments and agencies and ensure proper fiduciary management and compliance with safeguards requirements. Recurrent. Frequency: throughout implementation Sections and Description Name: District Project Committee Description: Maharashtra shall maintain, at the district level, a District Project Committee, with functions, composition and responsibilities acceptable to the Bank; including
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