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Document of the World Bank Document of The World Bank REPORT No. 16336-IN Public Disclosure Authorized STAFF APPRAISAL REPORT INDIA Public Disclosure Authorized THIRD ANDHRA PRADESH IRRIGATION PROJECT April 25, 1997 Public Disclosure Authorized Agriculture and Water Operations Division South Asia Country Department II (Bhutan, India, Nepal) Public Disclosure Authorized CURRENCY EQUIVALENTS Currency Unit = Rupee (Rs.) US$1.00 = Rs.35.84 FISCAL YEAR GOI; GOAP - April I - March 31 WEIGHTS AND MEASURES (METRIC SYSTEM) I meter (m) = 3.28 feet (ft) i kilometer (km) = 0.62 miles (mi) I hectare (ha) = 2.47 acres (ac) I million cubic meters (Mm3) = 804 acre-feet (ac-ft) I cubic foot per second (cfs or cusec) = 0.0283 cubic meters per second (m As) I kilogram (kg) = 2.2 pounds (lb) I metric ton (mt) = 2,205 pounds (lb) 1 Thousand Million Cubic Feet (TMC) = 28.3 million cubic meters (Mm) Vice President Mieko Nishimizu Director Robert Drysdale Division Chief Shawki Barghouti Task Manager Theodore Herman The metricsystem has been used in most cases. However,India is still in the process of transitionto the metricsystem; non-metric units are still widely usedand have been used in this Report where a conversionto the metricsystem may confusethe reader. PRINCIPAL ABBREVIATIONS AND ACRONYMS AP - Andhra Pradesh AP 11 - Second Andhra Pradesh Irrigation Project APAU - Andhra Pradesh Agricultural University APM - Adjustable Proportionate Module ARO - Assistant Rehabilitation Officer BPL - Below Poverty Line CAD - Command Area Development CADA - Command Area Development Authority CAS - Country Assistance Strategy CCA - Cultivable Command Area CNS - Cohesive Non-Swelling COT - Commissionrate of Tenders DC - Distributary Committee DOA - Department of Agriculture EMP - Environmental Management Plan ERAP - Economic Rehabilitation Action Plan GOAP - Government of Andhra Pradesh GOI - Government of India GSDP - Gross State Domestic Product GWD - Groundwater Department ICADD - Irrigation and Command Area Development ICB - International Competitive Bidding KKC - Kakatiya Canal M&E - Monitoring and Evaluation MEH - Minimum Economic Holding MSL - Mean Sea Level NCB - National Competitive Bidding NGO - Non-Governmental Organization O&M - Operation and Maintenance OC - Outlet Committee PAP - Project Affected Persons PDP - Project Displaced person PIM - Participatory Irrigation Management PPM - Project Preparation and Monitoring Unit QCU - Quality Control Unit RAP - Remedial Action Plan R&B - Roads and Bridges R&R - Resettlement and Rehabilitation RD - Revenue Department RO - Rehabilitation Officer RWS - Rotational Water Supply SIN - Structured Irrigation Network SOE - Statement of Expenses SRBC - Srisailam Right Branch Canal Project SRSP - Sriramasagar Project TMC - Thousand Million Cubic Feet VAP - Village Action Plan VRC - Village Rehabilitation Committee WALAMTARI - Water and Land Management Training and Research Institute WUA - Water Users Association FREQUENTLY USED ABBREVIATIONS FOR OFFICERS AEE - Assistant Executive Engineer AE - Assistant Engineer CE - Chief Engineer CI - Canal Inspector DDA - Deputy Director of Agriculture DEE - Deputy Executive Engineer EE - Executive Engineer JDA - Joint Director of Agriculture LDC - Lower Division Clerk SE - Superintending Engineer VEO - Village Extension Officer GLOSSARY Hot Season - March to May Irrigation Dry (ID) - Irrigated land designated for crops other than rice and sugarcane Irrigated Wet (IW) - Irrigated land designated for rice and sugarcane Kharif - Wet Season (June to September) Chak - Area served by watercourse, between 15 ha to 40 ha Rabi - Dry season (October to February) District - The lowest administrative unit where the State Government is directly involved. INDIA THIRD ANDEHRAPRADESH IRRIGATION PROJECT STAFF APPRAISAL REPORT Table of Contents Page No. CREDIT/LOAN AND PROJECT SUMMARY..................................................... i I. PROJECT BACKGROUND A. The National Context ........................................ I Agricultural Development and Poverty ....................................... 1I Irrigation Development and Management ....................................... 1I Development and Irrigation Lending Strategy ........................................ I B. The Andhra Pradesh Context ...... 2.................................2 Economic Growth and State Finances ....................................... 2 Rural Demography and Poverty ....................................... 2 Agricultural Performance ...... 3.................................3 Public Irrigation Scheme Management ....................................... 3 Previous Bank Involvement and Lessons Learned........................................ 5 C. The Second Andhra Pradesh Irrigation Project ............. .......................... 6 The AP II Sub-Projects ....................................... 6 Causes of AP II Implementation Failure ........................................ 7 Resolution of AP II Project Design Issues ....................................... 8 Investigation of Scheme Design Alternatives ........................................ 8 II. THE PROJECT A. Project Rationale, Objectives and Components............................................... 9 Rationale for Bank Involvement ............................................... 9 Project Objectives.............................................. 10 Project Components .............................................. 10 B. Detailed Features of Irrigation Investments.............................................. 11 SRBC Civil Works ............................................... 11 SRSP Civil Works.............................................. 13 Rural Feeder Roads.............................................. 14 Dam Safety Works and Assurance .............................................. 14 Construction Quality Assurance Plan .............................................. 15 C. Detailed Features of Agricultural Support Service Programs ............................ ........ 16 Irrigation Agronomy Program .............................................. 16 Water User Association Promotion Program .......................... .................... 17 Farmer Training Program .............................................. 19 D. Detailed Features of Social and Environmental Programs......................................... 19 Resettlement and Rehabilitation Program .............................................. 19 Environmental Management Plan .............................................. 23 ii Page No. III. COST ESTIMATES, FINANCING AND DISBURSEMENTS Cost Estimates ........................................ 25 Financing ........................................ 25 Procurement........................................ 26 Retroactive Financing ........................................ 29 Disbursement........................................ 30 Accounts and Audit ........................................ 31 IV. ORGANIZATION, MANAGEMENT AND IMPLEMENTATION A. Organizational Reforms........................................ 32 Participatory Irrigation Management......................................... 32 Reorganization of Command Area Development........................................ 33 Cost Recovery Arrangements........................................ 34 B. Project Management ........................................ 35 Management Organization........................................ 35 Works Quality Assurance and Supervision........................................ 36 Dam Safety Assurance ........................................ 36 Krishna River Basin Reservoir Management ........................................ 37 Resettlement and Rehabilitation........................................ 37 Irrigation Agronomy and Farmer Training Program ........................................ 39 Environmental Management Plan Responsibilities........................................ 40 C. Implementation Monitoring ........................................ 40 Implementation Schedule ........................................ 40 Project Performance Monitoring Framework ........................................ 41 Reporting and Project Review ........................................ 42 Supervision Plan ........................................ 43 V. BENEFITS, JUSTIFICATION AND RISKS A. Project Benefits........................................ 43 Productivity, Employment and Income ........................................ 43 Irrigation Management Reform Benefits ........................................ 44 B. Economic Justification ........................................ 45 Economic Analysis Assumptions ........................................ 45 Economic and Risk Analysis Findings ........................................ 46 C. Financial and Fiscal Analysis ........................................ 49 Analysis Background and Scope ........................................ 49 Financial Analysis........................................ 50 Fiscal Analysis ........................................ 52 D. Project Risks ........................................ 54 VI. AGREEMENTS AND RECOMMENDATIONS ........................................ 56 iii ANNEXES I. Water Supply Reliability Analysis 2. Environmental Impact Analysis and Management Plan 3. Water User Associations 4. Training Programs 5. Resettlement and Rehabilitation 6. Project Cost Tables 7. Finanlcinlg,Disbursement and Accounts 8. ICADD Staffing Schedules 9. Constructioni Quality Control Organization 10. Project Benefits and Economic Analysis II. Financial and Fiscal Analysis 12. Implementation Monitoring
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