FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: RES42081

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT RESTRUCTURING PAPER ON A

PROPOSED PROGRAM RESTRUCTURING OF

Public Disclosure Authorized ATAL BHUJAL YOJANA (ABHY)-NATIONAL GROUNDWATER MANAGEMENT IMPROVEMENT PROGRAM APPROVED ON JUNE 5, 2018

TO THE REPUBLIC OF

Water Global Practice South Asia Region Public Disclosure Authorized

Regional Vice President: Hartwig Schafer Country Director: Junaid Kamal Ahmad Regional Director: John A. Roome Practice Manager: Michael Haney Task Team Leader(s): Abedalrazq F. Khalil, Satya Priya LNU Public Disclosure Authorized The World Bank Atal Bhujal Yojana (Abhy)-National Groundwater Management Improvement (P158119)

ABBREVIATIONS AND ACRONYMS

ABhY Atal Bhujal Yojana AWP Annual Work Plan DLI Disbursement Link Indicators DEA Department of Economic Affairs GOI Government of India GP Gram Panchayat MoA Memorandum of Agreement MoJS Ministry of Jal Shakti NPMU National Program Management Unit PDO Project Development Objectives PG Program Guidelines PIP Program Implementation Plan PP Procurement Plan

DATA SHEET (Atal Bhujal Yojana (Abhy)-National Groundwater Management Improvement - P158119) BASIC DATA Project ID Financing Instrument IPF Component P158119 Program-for-Results Financing No

Approval Date Current Closing Date 05-Jun-2018 29-Sep-2023

Organizations

Borrower Responsible Agency The Department of Water Resources, Ganga Rejuvenation DEA and River Development, Ministry of Jal Shakti

Program Development Objective(s) Objective to be Determined. The proposed PDO is to improve the management of groundwater resources in the selected States.

OPS_TABLE_PDO_CURRENTPDO The World Bank Atal Bhujal Yojana (Abhy)-National Groundwater Management Improvement (P158119)

Summary Status of Financing

Net Approval Effectiveness Closing Ln/Cr/TF Signing Date Commitment Disbursed Undisbursed Date Date Date

IBRD-88740 05-Jun-2018 17-Feb-2020 24-Mar-2020 29-Sep-2023 450.00 1.13 448.88

Policy Waiver(s) Does the Program require any waivers of Bank policies applicable to Program-for-Results operations? No

The World Bank Atal Bhujal Yojana (Abhy)-National Groundwater Management Improvement (P158119)

I. PROGRAM STATUS AND RATIONALE FOR RESTRUCTURING

1. The Atal Bhujal Yojana (ABhY) – National Groundwater Management Improvement Program was approved by the World Bank Board of Executive Directors on June 5, 2018. Signing of the Loan Agreement was delayed pending approval of the Program by the Cabinet of the Government of India (GOI) which happened on December 24, 2019, for an implementation start of April 1, 2020. The Loan Agreement was signed on February 17, 2020 and was declared effective on March 24, 2020. In its letter of May 29, 2020, the Department of Economic Affairs requested the Bank to extend the Loan Agreement closing date to September 28, 2025, to render the Bank-financed Program coterminous with the GOI Program. 2. Despite the challenges posed by the national lockdown and the focus on addressing the COVID-19 crisis, preparation for the launch of the Program in the seven participating States (, , , , , and Madya Pradesh) is proceeding well. Important start-up activities have been initiated in the first two months of the implementation of the GOI Program. The National Program Management Unit (NPMU) at Ministry of Jal Shakti (MoJS) has been constituted and is being staffed. The Ministry has issued Program Guidelines (PG) and the Memorandum of Agreement (MoA) to be signed between MoJS and the participating States. In addition, the NPMU has developed standard documents and templates for the Program Implementation Plan (PIP), Procurement Plan (PP), Annual Work Plan (AWP) and baseline data format at the Gram Panchayat (GP) level, and sample tender documents for sharing with states along with the PG to facilitate standardized implementation of the Program. The development of Management Information System and the baseline for the DLIs are being finalized with the participating States. 3. Both PDO and IP ratings for ABhY are Moderately Satisfactory. There are no pending audit reports as well as environmental and social safeguards.

II. DESCRIPTION OF PROPOSED CHANGES

1. This Restructuring Paper proposes: (a) an extension of the closing date of Loan No. 8874-IN to September 28, 2025; (b) an updated implementation schedule of the Program; and (c) revised disbursement projections over the implementation of the Program. The Restructuring Paper also updates the name of the responsible national ministry, reflecting the creation of the Ministry of Jal Shakti (MoJS) in May 2019 on the basis of the merger of the erstwhile Ministry of Water Resources, River Development & Ganga Rejuvenation and Ministry of Drinking Water and Sanitation. Following the creation of the MoJS, the Ministry of Water Resources, Ganga Rejuvenation and River Development was renamed as Department of Water Resources, Ganga Rejuvenation & River Development.

III. SUMMARY OF CHANGES

Changed Not Changed

Change in Implementing Agency ✔

Change in Loan Closing Date(s) ✔

Change in Implementation Schedule ✔

Change in Program's Development Objectives ✔ The World Bank Atal Bhujal Yojana (Abhy)-National Groundwater Management Improvement (P158119)

Change in Program Scope ✔

Change in Results Framework ✔

Change in Cancellations Proposed ✔

Reallocation between and/or Change in DLI ✔

Change in Disbursements Arrangements ✔

Change in Disbursement Estimates ✔ Change in Systematic Operations Risk-Rating Tool ✔ (SORT) Change in Safeguard Policies Triggered ✔

Change in Legal Covenants ✔

Change in Institutional Arrangements ✔

Change in Technical Method ✔

Change in Fiduciary ✔

Change in Environmental and Social Aspects ✔

Other Change(s) ✔

IV. DETAILED CHANGE(S)

OPS_DETAILEDCHANGES_IA_TABLE IMPLEMENTING AGENCY

Implementing Agency Name Type Action The Ministry of Water Resources, River Implementing Marked for Deletion Development and Ganga Rejuvenatio Agency The Department of Water Resources, Ganga Implementing Rejuvenation and River Development, New Agency Ministry of Jal Shakti

OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S)

Original Revised Proposed Proposed Deadline Ln/Cr/TF Status Closing Date Closing(s) Date Closing Date for Withdrawal Applications IBRD-88740 Effective 29-Sep-2023 28-Sep-2025 28-Jan-2026 The World Bank Atal Bhujal Yojana (Abhy)-National Groundwater Management Improvement (P158119)

OPS_DETAILEDCHANGES_EA_TABLE

. The World Bank Atal Bhujal Yojana (Abhy)-National Groundwater Management Improvement (P158119)

ANNEX 1: RESULTS FRAMEWORK .

. Results framework

Program Development Objectives(s) Objective to be Determined. The proposed PDO is to improve the management of groundwater resources in the selected States.

Program Development Objective Indicators by Objectives/ Outcomes

RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target

Improved planning and implemenation of groundwater management interventions Blocks with arrest in the rate of decline of groundwater levels 0.00 80.00 (Number)

GPs with Community-led WSPs prepared and approved (Number) 0.00 3,750.00

Direct Program beneficiaries (Number (Thousand)) 0.00 15,000,000.00 Direct Program Beneficiaries(of which women) (Number 0.00 7,210,000.00 (Thousand)) GPs which have adopted participatory groundwater 0.00 2,000.00 management (Number)

Area with reduction in water consumption (Hectare(Ha)) 0.00 200,000.00 Strengthened institutional framework and effective groundwater data monitoring and disclosure

Page 7 of !Syntax Error The World Bank Atal Bhujal Yojana (Abhy)-National Groundwater Management Improvement (P158119)

RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target

States with improved groundwater monitoring and disclosure of 0.00 7.00 groundwater data (Number) PDO Table SPACE

Intermediate Results Indicators by Result Areas

RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target

Improved Planning and Implementation of groundwater management interventions Blocks that show reduction in stage of groundwater 0.00 75.00 development (Number)

GP-level water budgets completed (Number) 0.00 2,500.00 People benefitting from demand-side measures (Number 0.00 10,000,000.00 (Thousand)) People benefitting from demand-side measures(of which 0.00 7,210,000.00 women) (Number (Thousand)) WUAs or other village-level committees established and 35.00 2,000.00 functioning (Number) Women's representation in WUAs or other village-level water 0.00 20.00 committees (Percentage) Women in decision-making roles within WUAs (President, Vice 0.00 15.00 President, Secretary, and Treasurer) (Percentage) Wells with functioning meters for monitoring groundwater level (observation wells), volumetric water use, or energy use 0.00 50,000.00 (Number)

Page 8 of !Syntax Error The World Bank Atal Bhujal Yojana (Abhy)-National Groundwater Management Improvement (P158119)

RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target

Area provided with new/improved irrigation or drainage services 0.00 160,000.00 (Hectare(Ha)) Strengthened institutional framework and effective groundwater data monitoring and disclosure Blocks with online groundwater quality and water-level 0.00 150.00 monitoring reports made publicly available (Number)

State-level accredited groundwater quality lab (Number) 2.00 7.00 IO Table SPACE

Disbursement Linked Indicators Matrix

DLI IN00851719 ACTION DLI 1 Arrest in the decline of groundwater levels (# Blocks)

Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount

Output Yes Number 50,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00

2018-19 0.00

2019-20 0.00

2020-21 70.00 14,000,000.00

2021-22 80.00 16,000,000.00

Page 9 of !Syntax Error The World Bank Atal Bhujal Yojana (Abhy)-National Groundwater Management Improvement (P158119)

2022-23 100.00 20,000,000.00

DLI IN00851720 ACTION DLI 2 Community-led Water Security Plans prepared (# GPs)

Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount

Output Yes Number 75,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00

2018-19 1,125.00 22,500,000.00

2019-20 1,500.00 30,000,000.00

2020-21 825.00 16,500,000.00

2021-22 300.00 6,000,000.00

2022-23 0.00 0.00

DLI IN00851721 ACTION DLI 3 Public financing allocated to approved Water Security Plans (US$)

Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount

Output Yes Amount(USD) 100,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00

2018-19 50,000,000.00 5,000,000.00

Page 10 of !Syntax Error The World Bank Atal Bhujal Yojana (Abhy)-National Groundwater Management Improvement (P158119)

2019-20 100,000,000.00 10,000,000.00

2020-21 250,000,000.00 25,000,000.00

2021-22 300,000,000.00 30,000,000.00

2022-23 300,000,000.00 30,000,000.00

DLI IN00851722 ACTION DLI 4 Area with reduction in water consumption (# Hectares)

Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount

Output Yes Hectare(Ha) 173,875,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00

2018-19 30,000.00 15,000,000.00

2019-20 60,000.00 30,000,000.00

2020-21 70,000.00 35,000,000.00

2021-22 80,000.00 40,000,000.00

2022-23 107,750.00 53,875,000.00

Page 11 of !Syntax Error The World Bank Atal Bhujal Yojana (Abhy)-National Groundwater Management Improvement (P158119)

DLI IN00851723 ACTION DLI 5 Improved groundwater monitoring and disclosure of groundwater data (index)

Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount

Output Yes Number 50,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00

2018-19 1,600.00 5,000,000.00

2019-20 1,600.00 5,000,000.00

2020-21 3,200.00 10,000,000.00

2021-22 3,200.00 10,000,000.00

2022-23 6,400.00 20,000,000.00

Page 12 of !Syntax Error The World Bank Atal Bhujal Yojana (Abhy)-National Groundwater Management Improvement (P158119)

ANNEX 2: PROGRAM ACTION PLAN

. PAP_NOT_CHANGE_TBL Action Description Source DLI# Responsibility Timing Completion Measurement

The Program Guidelines finalized including mandating the use of PFMS/EAT, the Program internal and external audit arrangements with ToRs and annual procurement performance review for agreed sample of contracts to ensure compliance. MoWR, RD & GR Recurrent Semi-Annually Program Fiduciary Manual for all Participating States prepared covering regulatory and procedural processes,controls , delegation of powers and reporting requirements, internal and external audit, including procurement review and fiduciary framework Fiduciary Systems MoWR, RD & GR Due Date 23-Jun-2020 Fiduciary manual Annual progress report prepared, including Program environmental management at the state level (procedures for environmental screening for Participating siting and States Recurrent Yearly

Page 13 of !Syntax Error The World Bank Atal Bhujal Yojana (Abhy)-National Groundwater Management Improvement (P158119)

selection of proposed investments and monitoring of environmental impacts, results of environmental) Existing complaint and grievance redress and vigilance mechanisms at the state level strengthened to handle complaints related to procurement, FM, fraud and corruption issues, and social management under the Program; MoWR, RD & GR information on and participating complaints receive States Recurrent Yearly Mobilize an MIS for procurement MoWR, RD & GR and contract and participating management States Recurrent Continuous Citizen feedback systems and disclosure protocols developed and institutionalized for communities, particularly female/vulnerable MoWR, RD & GR /marginalized Environmental and Social and participating In the first year of Program populations Systems States Due Date 16-Mar-2021 effectiveness .

Page 14 of !Syntax Error