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Document of The World Bank Public Disclosure Authorized Report No. 14888-IN STAFF APPRAISAL REPORT Public Disclosure Authorized INDIA ORISSA WATER RESOURCES CONSOLIDATION PROJECT Public Disclosure Authorized ANNEXES NOVEMBER20, 1995 Public Disclosure Authorized South Asia Department II Agriculture and Water Operations Division CURRENCY EQUIVALENTS Currency Unit - Rupees (Rs.) US$1 = Rs. 32.3 (January, 1995) FISCAL YEAR Government of India, State - April 1 to March 31 WEIGHTS AND MEASURES (METRIC SYSTEM)'/ I meter (m) = 3.28 feet (ft) I kilometer (km) = 0.62 miles (mi) 1 hectare (ha) = 2.47 acres (ac) I million cubic meters (Mm3 ) = 810 acre-feet (ac-ft) I million acre-feet (MAF) = 1,235 Mm3 I thousand million cubic feet (TMC) = 28.32 Mm3 I cubic foot per second (cfs or cusec) = 0.028 Mm3 per second (cumec) I cfs = 102.9 m3/hr 1 ton = 1,000 kilograms (kg) I/ The Metric System has been used in most cases. However, non-metric units are used in some instances, and were also used in this report in cases in which a conversion to the metric system may confuse the reader. INDEX OF ANNEXES Annex 1 Letter of Development Policy. .......................................1 I Annex 2 Orissa State Water Policy ......................................... 6 Annex 3 Institutional Reorganization and Strengthening...................... 15 Annex 4 Pricing and Cost Recovery ......................................... 38 Annex 5 Water Planning .......................................... 49 Annex 6 Systems Improvement and Farmer Turnover ......................... 57 Annex 7 Scheme Completions.......................................... 130 Annex 8 Water Resources Research Fund .......................................... 151 Annex 9 Agricultural Intensification......................................... 155 Annex 10 Resettlement and Rehabilitation ............. .............. 162 Annex 11 Indigenous Peoples Development ......................................... 202 Annex 12 Sectoral Environmental Assessment Summay ...................... 233 Annex 13 Training and Technical Assistance........................................ 254 Annex 14 Public Awareness and Information ....................................... 286 Annex 15 Criteria for Preparation and Selection of Investments ........... 288 Annex 16 Criteria for NGO Selection.......................................... 291 Annex 17 Baseline Survey Terms of Reference .................................... 292 Annex 18 Detailed Project Cost Tables ......................................... 295 Annex 19 Economic and Financial Analysis......................................... 335 Annex 20 Schedule of Disbursement ......................................... 370 Annex 21 Expenditure Prioritization......................................... 371 Annex 22 Implementation and Supervision Plan (with Attachments): ...377 Attachment 1 Implementation Schedule................................. 385 Attachment 2 Implementation Responsibilities ................................. 388 Attachment 3 Abstract of Procurement Schedule ................................ 393 Attachment 4 IDA Supervision Inputs ................................. 399 Attachment 5 Monitorable Indicators of Development Impact ............ 401 Annex 23 Documents in Project Files.................. 407 Annex I Page 1 of 5 INDIA ORISSA WATER RESOURCES CONSOLIDATION PROJECT Letter of Development Policy (Letter of July 11, 1995 from Government of Orissa) Annex 1 GOVERNMENT OF ORISSA Page 2 of 5 DEPARTMENT OF WATER RESOURCES maJor-Irrg(I)'mB 0 9/95-16269 Dated 11th July, 1995 From: R.N.Das, Chief Secretary, Government of Orissa,Bhubaneswar. To: Mr. Heinz Vergin, Director, India Department, The World Bank, Washington, D.C. Dear Mr. Vergin, Orissa Water Resources Proiect - Policy Reform Proaram I am pleasedto confirm the commitmentof the Governmentof Orissato improve managementand development of the state's water resources, as per India's National Water Policy, through enhancing institutional capability of Orissa Departmentof Water Resources(D.O.W.R.). Structural improvementin all the functional areasof D.O.W.R. will be carriedout in orderto enhance efficiency of public expendituresin the water sector by establishingmulti-sector water planning, requisite prioritisation in implementationof water sector projects and providing more productive irrigation services from the existing projects with the objective of improving agriculture productivity in the state. The State Government is also committed to develop an efficient cost recovery mechanism, and to involve the beneficiariesin operationand maintenance,thereby ensuringsustainability of the Irrigationsystems through adequatemaintenance. The State Governmentproposes to achieve the above objectives through implementationof the Water ResourcesConsolidation Project, with the World Bank assistance.In this context, the Government of Orissa has approveda Policy Reform Programas detailed in the attached matrix, which also shows the implementa-ionschedule for completingthe proposed policy reforms. TheState Governmenthas alreadytaken a few significant steps towards implementingthe proposed reforms, during the courseof project preparationfor W.R.C.P. A State Water Policy has beenestablished in line with the National Water Policy of 1987. State Water ResourcesBoard has been establishedwith representativesof key water using Departmentsof the state to ensure optimal use of the state's water resourcesfor various uses. A standing committee has been constituted to overseethe basin planning of water resourcesand environmentalimpact assessment.A new R&Rpolicy has beenintroduced in the state. A Water ServicesCost and ChargesCommittee has been set up by the State Governmentfor review of water charges on annualbasis to enhancethe water rates for all services in different sectors. The State Governmenthas also agreedin principleto reorganisethe Orissa Irrigation Department, which has been renamedas Water ResourcesDepartment, by creating specialisedstaff and line units for water planning, designs, operation and maintenanceand project construction. The state has decided to adopt a policy of expenditureprioritisation in the water sector, by giving first priority to full funding of O&M of existing facilities, followed by rehabilitation and modernisationof Irrigation systems, and thereafter to viable investmentsto complete ongoing schemesexpeditiously. With regards, Attachment Yours Sincerely IR.>N Annex 1 Page 3 of 5 Attachment ORISSA WATER RESOURCESCONSOLIDATION PROJECT PROPOSEDPOLICY REFORMS Policy Issue Proposed Actions Current Status and Time Schedule 1. Institutional - Reformulation of Irrigation Reformulation has been Capability Department as Department done on March 31,1994 Enhancement of Water Resources (DOWR) - Reorganisation of DOWR Reorganisation agreed along functional responsibility by State Government in and decentralised lines by principle. creating specialised staff and line units for water plannning, designs, operation and maintenance and project construction; - issue of government orders orders to be issued by for reorganisation; July 15, 1995. * completing transfers /placement to be completed by of officials in the organised July 30, 1995. set up; f ormulating position and job to be completed by descriptions for each functionary; July 31, 1995. - approval of a policy on delegati- to be approved by on of authority for selection, September 30, 1995. placement and discipline to appropriate Unit heads; providing staff benefits and orders to be issued by incentives for work in specialised September 30, 1995. fields to provide continuity and expertise build up; - improve management procedures to be introduced by in planning,financing &monitoring March 31, 1996. by introducing program & budget development, program tracking, cost accounting; - establishing management to be established by information system (MIS) June 30, 1996. constituting State Project Moni- to be constituted by toring Committee for WRCP July 15, 1995. Annex 1 Page 4 of 5 Po,icy Issue ProposedActions Current Status and Time Schedule 2. Water Resources- establishment of State Water established in October Policy & Planning ResourcesBoard; 1993 under the Chairmanshipof State Chief Secretary. - declaration of State notified on April 25,94. Water Policy; - establish Water Planning to be established by Organisation; July 31, 1995. Basin Planning - preliminary basin study of all completed for five river eleven river basins of the state;basins covering about 70% of the state, to be completed for two basins by June 1996; for two basins by June 1997 for two basins by June 1998. - secondary study with to complete for one hydrologic, economic and basin by June 1995; environmental models; one basin by June 1996; three basins by June 1997; two basins by June 1998; & four basins by June 1999. - basin wise final study of to complete for five all basins: basins by June 1997; two t5asinsby June 1998 & four basins by Dec.1999. - integrated state river basin to complete by plan: January 2002. 3. Water Services - assign full funding for works from financial year component of O&M as first 1995-1996. charge in DOWR annual budget; 2 Annex 1 Page 5 of 5 Policy Issue ProposedActions Current Status and Time Schedule 4. Cost Recovery - constitute Water Services constituted on Costs & charges committee January 3, 1995. for annual review of water charges for all uses; - enhance water charges from enhancement will be done all sectors for all services to in phases as follows; recover full O&M cost; by March 1996