Report and Recommendation of the President to the Board of Directors
Bangladesh Project Number: 34418 October 2005
Proposed Loan Bangladesh: Southwest Area Integrated Water Resources Planning and Management Project
CURRENCY EQUIVALENTS (as of 20 October 2005)
Currency Unit – taka (Tk)
Tk1.00 = $0.0153 $1.00 = Tk65.23
ABREVIATIONS
ADB – Asian Development Bank AP – affected person BWDB – Bangladesh Water Development Board CAG – comptroller and auditor general CBO – community-based organizer CDP – capacity development plan CIDA – Canadian International Development Agency CSP – country strategy and program DAE – Department of Agriculture Extension DG – director general DOC – Department of Cooperatives DOF – Department of Fisheries EIA – environmental impact assessment EIRR – economic internal rate of return FAP – Flood Action Plan FCD/I – flood control and drainage/irrigation GAP – gender action plan GDP – gross domestic product GRC – grievance redress committee GPWM – Guidelines for Participatory Water Management ICB – international competitive bidding IEE – initial environmental examination ISPMS – institutional strengthening and project management support IWMP – integrated water management plan IWRM – integrated water resources management JMC – joint management committee LCB – local competitive bidding LCS – labor contracting society LGED – Local Government Engineering Department LGI – local government institution M&E – monitoring and evaluation MIS – management information system MOU – memorandum of understanding MOWR – Ministry of Water Resources MTR – midterm review NGO – nongovernment organization NWMP – National Water Management Plan NWP – National Water Policy O&M – operation and maintenance PBMS – performance-based budget management system PCO – project coordination office PD – project director PMO – project management office PPR – Public Procurement Regulation PPTA – project preparatory technical assistance PRSP – Poverty Reduction Strategy Paper PSC – project steering committee RF – resettlement framework RP – resettlement plan SASC – subproject appraisal subcommittee SIP – subunit implementation plan SMO – subproject management office SOE – statement of expenditure TL – team leader TM – twinning mission WARPO – Water Resources Planning Organization WMA – water management association WMG – water management group WMIP – Water Management Improvement Project
NOTES
(i) The fiscal year (FY) of the Government ends on 30 June. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2005 ends on 30 June 2005.
(ii) In this report, "$" refers to US dollars.
Vice President L. Jin, VPO1 Director General K. Senga, South Asia Department Director F. Roche, Agriculture, Environment and Natural Resources Division, South Asia Department
Team Leader K. Yokoyama, Senior Water Resources Specialist, Agriculture, Enviroment and Natural Resources Division Team Members F. Sultana Begum, Social Development and Gender Officer, Bangladesh Resident Mission J. Francis, NGO/Civil Society Specialist, NGO and Civil Society Center, Regional and Sustainable Development Department S. Kawazu, Counsel, Office of the General Counsel S. Ranawana, Environment Specialist, SAAE A. Saha, Project Implementation Officer (Agriculture), Bangladesh Resident Mission J. Zhang, Project Economist, Agriculture, En vironment, and Natural Resources Division, South Asia Department
CONTENTS
Page LOAN AND PROJECT SUMMARY iii MAPs ix
I. THE PROPOSAL 1 II. RATIONALE: SECTOR PERFORMANCE, PROBLEMS, AND OPPORTUNITIES 1 A. Performance Indicators and Analysis 1 B. Analysis of Key Problems and Opportunities 2 III. THE PROPOSED PROJECT 5 A. Impact and Outcome 5 B. Outputs 6 C. Special Features 9 D. Cost Estimates 10 E. Financing Plan 10 F. Implementation Arrangements 11 IV. PROJECT BENEFITS, IMPACTS, ASSUMPTIONS, AND RISKS 15 A. Economic Impacts 15 B. Household and Poverty Reduction Impacts 16 C. Social and Gender Development Strategy 16 D. Environmental Impacts 17 E. Resettlement 18 F. Risks 18 V. ASSURANCES 19 A. Specific Assurances 19 B. Conditions for Loan Effectiveness 20 C. Conditions for Withdrawal from the Loan Account 20 VI. RECOMMENDATION 20
APPENDIXES 1. Design and Monitoring Framework 21 2. Water Resources Sector Analysis 25 3. External Assistance to Water Resources Management 30 4. Incorporation of Lessons Learned 31 5. Policy and Institutional Actions 33 6. Cost Estimates and Financing Plan 35 7. Organizational Structure 37 8. Selection Criteria for Additional Subprojects, and Preparation and Implementation of Integrated Water Management Plans 38 9. Project Implementation Procedure 40 10. Implementation Schedule 42 11. Indicative Contract Packages 43 12. Outline Terms of Reference for Consultants 44 13. Summary Economic and Financial Analysis 48 14. Summary Poverty Reduction and Social Strategy 53 15. Gender Action Plan 56 16. Summary Resettlement Framework and Resettlement Plans 57
SUPPLEMENTARY APPENDIXES (available on request) A. Chronology of Project Development and Processing B. Detailed Project Cost Estimate and Financing Plan C. List of Candidate Schemes D. Implementation Procedures and Arrangements E. Terms of Reference of Consulting Services F. Terms of Reference of NGO Services G. Economic and Financial Analyses H. Financial Management Questionnaire I. Environmental Impact Assessment J. Summary Environmental Impact Assessment K. Environmental Impact Assessment L. Resettlement Framework M. Resettlement Plans (Two Sample Projects)
{Please read and delete: (i) Provide this template to all involved in preparing the report. (ii) Use this format for all project loans. (iii) Limit the overall length of the RRP to 60 pages or less, single-spaced—20 pages maximum for the main text and 40 pages for appendixes. (iv) Where possible limit each appendix to about 5 pages. Appendix subjects may include (a) Design and Monitoring Framework (mandatory) (b) Chronology (maximum 1 page) (c) Problem and Constraints Analysis (d) Sector/ Analysis (mandatory) (e) External Assistance (mandatory) (f) Cost Estimates and Financing Plan (mandatory) (g) Contract Packages (mandatory) (h) Implementation Schedule (mandatory) (i) Financial Performance and Projections (of public incorporated companies and other entities) (j) Financial Analysis (k) Economic Analysis (l) Environmental Analysis (m) Summary Poverty Reduction and Social Strategy (mandatory, include completed form from Handbook on Poverty and Social Analysis, p. 27.) ADF IX
LOAN AND PROJECT SUMMARY
Borrower The People’s Republic of Bangladesh
Classification Targeting classification: Targeted intervention Sector: Agriculture and natural resources Subsector: Water resources management Themes: Sustainable economic growth, governance, gender and development Subthemes: Developing rural areas, public governance, gender equity in opportunities
Environment Category A: An environmental impact assessment was Assessment undertaken and was submitted by the Government with its summary, which was circulated to the Board on 14 July 2005.
Project Description The Project will enhance the livelihood of the rural population by improving the productivity and sustainability of existing under- performing flood control and drainage/irrigation (FCD/I) schemes through holistic and participatory planning, development, and management of water, and delivery of support services to address locally identified constraints on agriculture, fishery, and livelihood development. During the process, the Project will set up and strengthen, up-front at the preconstruction stage, viable water management associations (WMAs), which will take on key roles in all program delivery decisions and sustainable operation and maintenance (O&M) of local water infrastructure, while installing institutional capacities within the supporting agencies to manage the overall process, including O&M of main water infrastructure. The Project will cover 100,000 hectares (ha) of FCD/I schemes in the southwest areas and benefit about 0.8 million rural population, the majority of whom are poor. The project process and management will demonstrate the way to substantially enhance and sustain the performance of existing FCD/I schemes by developing WMAs with representation from diverse stakeholders, particularly the poor, and providing them with agriculture and fishery support services. The Project will also support ongoing sector-wide institutional reforms toward good governance, in harmony with other sector interventions assisted by external funding agencies.
Rationale Water fundamentally affects rural livelihood activities in Bangladesh, with the country’s major regional river systems bringing about massive annual floods, severe dry-season water scarcity, and periodic natural disasters. Effective management of water is critical to address pervasive rural poverty problems. The task is complicated due to fairly diverse and complex stakeholder interests and vulnerable natural ecosystems. It is thus paramount to plan, develop, and manage water resources in a strategic and integrated manner while mobilizing and empowering diverse stakeholders. While the country has established a large number of iv
FCD/I infrastructures, their performance remains suboptimal due to lack of effective management systems that can meet the needs of diverse stakeholders particularly the vulnerable poor, and most critically, provide sufficient O&M. Within the country, the southwest areas face the most acute problems due to reduced dry-season inflow and associated social and environmental hardships, e.g., salinity intrusion and annual monsoon flooding. In recent years, the Government has progressively improved the policy, institutional, and planning framework for the water sector with the coordinated support of external financiers including the Asian Development Bank (ADB). The National Water Policy (NWP) of 1999 adopted key principles including integrated water resource management (IWRM), and sustainable service delivery and O&M with progressive transfer of facility management to WMAs. Improvement of the framework is followed by ongoing institutional reforms of sector agencies for better governance, and the adoption of the National Water Management Plan (NWMP) in 2004 that provides a sector strategy and priority programs with a long-term perspective. The key challenge now is to transform these initiatives into genuine sector operations. Within this framework, enhancing and sustaining the performance of existing FCD/I systems has been accorded high priority, given the need to strengthen flood resistance and the scope for generating high impacts with short lead time at relatively low costs. On this account, ADB has played a lead role in supporting the initiative for small-scale schemes that are being implemented with increasingly better performance. The Project is needed to develop and institutionalize effective mechanisms to be applied to larger FCD/I schemes, building on the good practice and lessons learned, to support the process of participatory and holistic planning, inclusive WMA development, infrastructure and support services to meet critical local development needs, and sustainable O&M. Successful implementation of the Project will demonstrate the way to fully operating key NWP principles in FCD/I systems, with further improved governance of the sector institutions.
Impact and Outcome The Project’s overall impact will be enhanced economic growth and reduced poverty in the concerned FCD/I areas, while providing a model for rejuvenating poorly performing FCD/I systems that can be replicated throughout the country. The Project outcome will be enhanced and sustained productivity of the selected existing FCD/I systems suffering from low performance and high incidence of poverty. The outcome will be achieved by (i) providing effective program delivery mechanisms for integrated planning, WMA formation and strengthening, water management infrastructure, support services for developing agriculture and fishery and livelihood enhancement of the poor, and sustainable O&M; and (ii) strengthening institutions for effective provision of services to achieve this end.
v
Cost Estimates The estimated project cost is $43.4 million equivalent, comprising foreign exchange of $9.7 million and local currency equivalent of $33.7 million, including taxes and duties of $3.0 million equivalent.
Financing Plan ($ million) Foreign Local Total Source Percent Exchange Currency Cost ADB 6.2 13.8 20.0 46 Government of 3.5 9.0 12.5 29 the Netherlands Government 0.0 10.9 10.9 25 of Bangladesh Total 9.7 33.7 43.4 100 Source: ADB estimates.
Loan Amount and Terms The equivalent in various currencies of SDR 13,863,000 from the Special Funds resources of ADB. The terms are 32 years including a grace period of 8 years, and an interest charge of 1.0% per annum during the grace period and 1.5% per annum thereafter.
Period of Utilization Until December 2013
Estimated Project June 2013 Completion Date
Executing Agency Bangladesh Water Development Board (BWDB) under the Ministry of Water Resources (MOWR)
Implementation Project implementation institutionalizes effective mechanisms to Arrangements plan, develop, and manage water resources and deliver support services with the regular setup of BWDB and line departments, with outsourcing to the private sector including nongovernment organizations (NGOs). A project management office is established in the Faridpur zonal office of BWDB to manage overall project implementation, while day-to-day implementation is done in subproject management offices. A joint management committee (JMC) will be established in each subproject with representation from WMAs, local government institutions, and line departments to decide on subproject implementation matters. A steering committee will be established for central-level coordination of concerned ministries and departments.
Project O&M will essentially operationalize the NWP by transferring the management of subordinate infrastructures (having a command area of 2,500 ha) to WMAs and jointly managing other main facilities under the JMC. To support sustainable O&M, the Project will (i) adopt the procedure that has proved effective in small-scale FCD/I schemes with ADB assistance, as regards the transferred facilities managed by WMAs; and (ii) as to the remaining facilities, strengthen central
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funding and its management systems including expenditure rationalization, improved management information systems for scheme performance monitoring and O&M planning, and performance-based priority allocation of O&M budgets for schemes where NWP arrangements are operating satisfactorily.
Procurement All procurement will be done in accordance with ADB’s Guidelines for Procurement. Major contracts for vehicles, equipment, and materials exceeding $1.0 million will be procured through international competitive bidding, whereas packages valued at $1.0 million equivalent or less will be procured following international shopping procedures. Civil works under the Project will be up to $2.0 million, and will be contracted through local competitive bidding (LCB).
Consulting Services For institutional strengthening and project management, the Project will provide consulting services of 604 person-months: 72 international and 532 domestic. The consultants will be selected following ADB’s Guidelines on the Use of Consultants and other arrangements satisfactory to ADB for engaging domestic consultants to assist BWDB and other agencies in identifying, planning, developing, and managing water from integrated and cross-sectoral perspectives while establishing viable WMAs and JMCs. In consideration of the nonengineering complexity and the need for timely fielding, the Government has requested ADB to select the consultants on its behalf. In addition, the Government will engage technically qualified private providers including NGOs to support planning, beneficiary mobilization, implementation, resettlement, support service delivery, and monitoring and evaluation.
Project Benefits and The Project will improve the livelihood of about 0.8 million people Beneficiaries by rehabilitating and improving 100,000 ha of underperforming FCD/I schemes. The main benefits are increased agriculture production–brought about by improved flood protection, local retention and storage of water for irrigation, and improved drainage to enable expansion of diversified crop cultivation–along with increased fishery production, improved flood security of settlements, increased labor opportunities, better nutrition, and increased incomes and reduced poverty. The economic internal rates of return of two sample subprojects are 16.5% and 21.2%. At the regional level, the Project will improve service delivery mechanisms to attain maximum benefits and sustainability through FCD/I renovation with sound quality control, along with improved sector governance with policy and institutional actions.
Some 55% of the population in the two subproject areas fall below the poverty line, higher than the national average. Its social development strategy will focus on enhancing the participation of the poor in water management activities, delivery of targeted vii
support to the most vulnerable poor, enhancing the role of women in project institutions and WMAs, and institutional reforms for more effective operation of gender development within BWDB.
Risks and Assumptions The Project has certain risks that could adversely affect its effective implementation and sustainability: (i) stakeholder participation, (ii) sustainability including delivery of quality outputs and sustainable O&M, and (iii) BWDB management capacity. The Project has incorporated mitigating measures to address these risks. Beneficiary participation is pursued by ensuring up-front WMA strengthening to achieve measurable targets at the pre- construction stage. Governance-related sustainability risks are mitigated by strengthening management, monitoring, and quality control systems of the concerned institutions. The O&M risk is mitigated through comprehensive agreed-on measures including management transfer of local facilities to WMAs, expenditure rationalization, local resource mobilization, and improved budget allocation and management. BWDB managerial capacity is strengthened through implementation of comprehensive agreed- on institutional reform actions. All project-related institutional reforms will be pursued in harmony with other externally funded programs, with the support of the consultants.
Map 1
89 o 00'E 92 o 00'E 89 o 10’E
o 25 00'N 25 o 00'N
BANGLADESH
SOUTHWEST AREA INTEGRATED WATER RAJSHAHI SYLHET B A N G L A D E S H RESOURCES PLANNING AND DHAKA MANAGEMENT PROJECT DHAKA INDIA
INDIA
KHULNA CHITTAGONG
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05-5647 RM Map 2
89o 25’E 89o 35’E
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s Musuri 3 Ch. 105.00 Km Proposed Debhog ch an s Branch WRS Br Proposed Bahirgram Branch og Bahirgram Branch Khal bh Nirali Khal Khal WRS Proposed Kam Kul WRS Debho Kalura De BahirgramBahr g Khal Kha igra Proposed Bahirgram Shelkheti Debhag l m Regulator CHENCHURI BEEL Proposed Shaikhat Regulator s Gobraghat Kaichdaha Market SUBPROJECT Shaik hati l Gobra Proposed Kolora Proposed Banagram Kh ku al Regulator Kam Kul WRS am Kalare Banagram K Proposed Banagram WRS am gr Gobra Ch. 110.00 Km na Soaler Khal li Proposed Katanari WRS 4 Ba al a n Kh Proposed Singia Singhsolpur ta l Ch. 50.00 Km a a Additional Regulator K h Harispur Tahgrakhali K Khal Singia Branch n Ch. 00.00 Km
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Proposed Water Retention Structure (WRS) SubhararaK B t o a n y KALIA UPAZILA s s s s a Existing Embankment o r K S Arua Khal s s s s r Proposed Hiala Na h 6 Proposed Embankment u a bu p Peruli Regulator Morolbari WRS l
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o o 22 45’N 89o 25’E 89o 35’E 22 45’N
05-5647c RM Map 3
Nawapara 89o 35’E 89o 40’E Chenchuri Beel Kalaohandpur Irrigation Sub-Scheme Ch. 30.00 Km BANGLADESH CHENCHURI BEEL SUBPROJECT N Chanalbarpur ab r a e ga v n i g R a R a i r v Proposed Bhomordia Regulator t e Khali i Chota Beel r
h Kanchanpur C 1 Ch. 35.00 Km Sibnaldapur Bara Beel Proposed Sarulia Khal Regulator Sarutia Proposed Arenda Regulator S Nala Beel Shalgari Beel ar H ul a i l a w K a a h h Palakhari al k K Rampur 217A Lohagora h a a
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I. THE PROPOSAL
1. I submit for your approval the following report and recommendation on (i) a proposed loan to the People’s Republic of Bangladesh for the Southwest Area Integrated Water Resources Planning and Management Project, and (ii) proposed administration by the Asian Development Bank (ADB) of a grant for the Project, provided by the Government of the Netherlands.1 The design and monitoring framework is in Appendix 1.
II. RATIONALE: SECTOR PERFORMANCE, PROBLEMS, AND OPPORTUNITIES
A. Performance Indicators and Analysis
2. Agriculture and Rural Sectors. Despite good progress in recent years, Bangladesh remains one of the poorest countries in the world with an annual per capita gross domestic product (GDP) of $389 (in 2003) and poverty incidence of 50% (in 2000). Over 85% of the poor live in rural areas and most are engaged in agriculture and related nonfarm activities. Accordingly, accelerating agricultural and rural growth is key to reducing poverty in the country.
3. While the share of agriculture in the country’s GDP has declined to 23%, the rural including the nonfarm sector accounts for over 60% of GDP and 76% of employment. Agriculture showed a relatively strong growth with an average growth of 2.9% per annum with structural changes since 1990. The rural nonfarm subsector (such as input marketing, mechanical services, agroprocessing, and trading) grew more rapidly. Agriculture growth was mainly due to the increased production of food crops led by paddy and potato (for which per capita production increased by 10 kilograms [kg] since 1990), culture fishery (4% increase per capita per annum since 1990), and to a lesser extent livestock and vegetables.2 As a result, the country has achieved near self-sufficiency in paddy. However, the growth rate slowed down recently, averaging 2% during 2000-04. Most crops suffer from substantial gaps between farm yields and demonstration plot yields. The present farm yields for paddy stand at 3.4 tons per hectare (t/ha), marginally above subsistence levels. The country also remains a net importer of cereals and most other crops. The Government’s poverty reduction strategy paper (PRSP) has accorded high priority to rural development, with strategic emphasis on (i) intensifying cereal crops and diversifying to high-value crops while promoting fisheries and livestock, (ii) providing rural infrastructure to reduce natural and other shocks, and (iii) promoting nonfarm activities.
4. Water Resources. The country is located at the confluence of three major regional river systems that pose significant physical challenges including massive monsoon floods and drainage congestion (inundating 30% of the country’s land area on average), riverbank erosion, serious dry-season water scarcity, natural disasters such as cyclones, and widespread groundwater arsenic (affecting 30–50% of the population). Access to and effective management of water are critical for the rural poor, as water fundamentally affects their productive and livelihood activities. Water management is further complicated by diverse and complex stakeholder interests, widely varying in different topographic locations among agriculture, capture and culture fisheries, boat transport, rural industries, drinking water, and associated nonfarm activities. Water is also vital for the country’s rich natural ecosystems. Thus, it is paramount to manage this critical resource through an integrated, participatory, and decentralized approach with due attention to the interests of the vulnerable poor.
1 Project preparatory technical assistance was provided under ADB. 2002. Technical Assistance to the People’s Republic of Bangladesh for the Southwest Area Integrated Water Resources Management Project. Manila. 2 Sector composition for crops (including horticulture), fisheries, livestock, and forestry changed from 65%, 15%, 13%, and 7%, respectively, in 1990 to 58%, 22%, 12%, and 8%, respectively, in 2003. 2
5. Substantial efforts have been made since the 1950s to manage water resources with large public investments, culminating in 9,500-kilometer (km) embankments, 11,500 km canals, 60 km revetments, and over 13,300 hydraulic structures. While these structures provide essential flood protection and drainage functions for 5.4 million ha (covering 30% of the net cultivated area), their performance remains suboptimal, with chronic facility deterioration problems and underachieved potentials. On the other hand, the irrigated area expanded rapidly from 1.6 million ha in 1980 to 4.4 million ha in 2001, thanks to expansion of private groundwater irrigation, the main driving force for paddy production growth.3 Yet the cost of groundwater irrigation is rising as more water is extracted, posing a constraint on further expansion.
6. Southwest Area. The southwest area of 4 million ha (27% of the country’s total) covers the south bank of the Ganges and the Lower Meghna rivers, with a population of 28.6 million (23% of the total). The region produces 21% of the national GDP. With its sectoral share of 36%, agriculture plays a dominant role, yet its productivity is lagging behind the national average. Paddy yields remain at 3.1 t/ha due mainly to the dominance of traditional varieties associated with the area’s susceptibility to flooding, and slower expansion of irrigation (38% as opposed to the national average of 55% of net cultivated area). About 51% of the area’s population is poor, second to the highest–the northwest–among the country’s four main regions. As to water resources, the southwest has 78 flood control, drainage/irrigation (FCD/I) systems4 covering 1.1 million ha. It has the most acute water management problems in Bangladesh. Of particular concern is water shortage due to reduced inflow into the Ganges tributaries and associated social and environmental hardships, including salinity intrusion, livelihood loss, and environmental degradation. Other challenges include (i) the flood inflow from the Ganges in the monsoon and deterioration of existing FCD/I systems, (ii) drainage congestion and sedimentation of tidal channels caused by coastal polder construction and reduced tidal swept volume, (iii) arsenic contamination (highest in the country), and (iv) vulnerability to cyclones and tidal surges. Improving water management is critically needed in this region of the country.
B. Analysis of Key Problems and Opportunities
7. Agriculture and Fishery. The Government initiated market-oriented sector reforms in the early 1980s, deregulating input and output marketing and improving the delivery of support services. While the reforms led to dynamic response in some areas such as groundwater irrigation and fertilizer use, performance results in other areas are mixed. The supply of improved seeds remains a major constraint, with meager private sector participation, particularly for food grains that meet only 25% of the annual replacement needs. Fertilizer use increased by 35% from 1993 to 2003, but is poorly balanced and falls significantly below the recommended dosage. As a result, 60% of net cultivated areas now suffer from low soil fertility with depletion of soil organic matter and micronutrients. For culture fisheries, the supply of fingerlings remains a constraint, along with the restricted access of the poor to water bodies. In output marketing, private agribusiness such as contract farming of cereals and cash crops is emerging. Yet the marketing chain is fragmented with information dissymmetry and lack of infrastructure. As to extension, while public agency staffs have technical know-how, field extension is constrained by lack of resources and weak farmer participation, calling for collaboration with private providers. These conditions call for careful planning and strategic provision of critical support services, and concerted efforts to facilitate the delivery of key inputs, considering marketing opportunities.
3 Paddy production in spring (aus), monsoon (aman), and winter (boro) changed from 2.7, 7.8, and 2.4 million tons, respectively, in 1980, to 1.8, 10.7, and 11.8 million tons, respectively, in 2002. 4 An FCD/I scheme is a system of water management infrastructure generally comprising flood embankments and networks of internal drainage/irrigation canals that serve mostly for drainage purposes but also can be used for irrigation, in particular in the tidal impact areas in the southwest and southeast regions.
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8. Water Resources – Past Efforts. Following the devastating floods in 1987 and 1988, major international coordinated efforts were provided in the 1990s under the Flood Action Plan (FAP) to systematically address the water management problems. A total of 26 regional and thematic studies were assisted by 16 external funding agencies including ADB, which supported regional studies for the southwest and for flood protection in Dhaka. While the studies established a substantial knowledge base, they also revealed deficiencies of the past interventions–which had generally mixed performance–including those assisted by ADB. Specifically, previous planning efforts tended to focus on constructing major single-purpose flood protection structures, and overlooked diverse stakeholder needs and multidimensional implications of water management. Top-down implementation led to negative environmental and social impacts (such as reduced capture fishery causing hardship to the poorest), and left many local water management problems unaddressed or opportunities unutilized. Most critically, operations and maintenance (O&M) was inadequate and underresourced, with little beneficiary participation and support, leading to facility deterioration, frequent flood damage, and subsequent rehabilitation needs. Major reforms in the policy and institutional framework and capacities of sector agencies became necessary to effectively meet the sector challenges.
9. Recent Sector Reforms and Challenges. Following the FAP findings, the Government initiated comprehensive policy and institutional reforms for the sector. The National Water Policy (NWP), adopted in 1999, set out due policy goals and principles for participatory and integrated water resources management (IWRM), strategic planning, sustainable O&M with progressive management transfer to water management associations (WMAs), and improved governance of sector organizations. Along this line, institutional reforms of a key sector agency, Bangladesh Water Development Board (BWDB), were initiated, including (i) reformulation of its Board to include stakeholder representatives and sector experts, (ii) long-term assignment of leadership, and (iii) significant staff rationalization (by over 50%) with skills mix diversification and a self- developed draft vision now envisaging transformation from a top-down implementer to a service-oriented agency. Guidelines for participatory water management (GPWM) were also finalized by stipulating procedures and arrangements to implement sector interventions with WMA empowerment. The National Water Management Plan (NWMP) was also finalized in 2004, with its short-term programs emphasizing an enabling environment and institutional capacities.
10. However, the reforms are still at the early stage of consolidation, calling for careful support to transform the initiatives into sound sector operations. In this context, a large number of existing FCD/I schemes are yet to be placed under the new and improved management arrangements. In the meantime, the country also experienced huge damage from floods in 1998, 2000, and 2004,5 all of which led to large-scale external emergency assistance including loans from ADB. While these recurrent losses demonstrated the need for establishing more flood-resistant infrastructure with better hazard risk management, equally critical are institutions for sound regular maintenance, since poorly maintained facilities are more vulnerable to floods and cause larger damage once they fail. Moreover, many FCD/I systems have large unachieved benefits, and their improvement would provide larger returns with a short lead time and less significant negative environmental and social impacts. Thus, enhancing and sustaining the performance of existing FCD/I infrastructure with improved O&M remains a critical and urgent need, and is accorded high priority in the NWMP. The sector analysis is in Appendix 2.
11. External Assistance and Coordination. In response to the NWP and the NWMP, external funding agencies are renewing support to the sector with a harmonized approach. Key partners include the World Bank, Government of the Netherlands, Canadian International Development Agency (CIDA), and ADB. For rural areas, the World Bank is appraising the Water
5 The most recent 2004 floods have caused a total damages estimated at $2.2 billion nationwide.
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Management Improvement Project (WMIP) with the Netherlands cofinancing to assist in rehabilitating 380,000 ha of medium-sized and large FCD/I schemes with a sector project modality.6 The Netherlands Government is providing twinning missions (TMs) to support BWDB to prepare and implement comprehensive action plans to embed reforms into day-to-day operations, while supporting investments including integrated planning and rehabilitation of medium-scale FCD/I schemes and estuary development. CIDA is assisting in improving BWDB’s financial management systems. ADB is supporting improvement of small-scale FCD/I systems through the Local Government Engineering Department (LGED) with the Netherlands cofinancing,7 and riverbank protection along two large FCD/I systems,8 where developing the irrigation command area was also assisted through a separate project (Appendix 3).
12. ADB Contributions, Lessons, and Strategy. ADB played an important role in promoting the aforementioned reforms. Its assistance to small FCD/I set up a framework for transfer of management to WMAs that was embodied in NWP, while establishing a WMA legal framework with the amended Cooperatives Act. Its implementation procedures and arrangements, improved over time with an increasing number of well-performing WMAs, were adopted as the Government’s GPWM, now to be applied in all sector interventions. Other loans also contributed to the progress of institutional reforms.9 Although operationalizing NWP with sound O&M still remains a future goal, useful lessons were learned. First is the need for integrated planning, development, and management of water to address diverse needs and concerns; and for providing sufficient services to address other local production constraints. Second, sufficient time, resources, and management are critical for WMA formation, with clear measurable targets that should be achieved prior to physical works. O&M requirements should be agreed upon at this stage, with up-front cash contribution and field training. Third, quality control in infrastructure and other program delivery and system operation requires rigorous attention, with particular care to protecting poor people’s interests. Fourth, well-managed local infrastructure provides a basis for WMAs to start addressing social agendas for the poor, and taking on lead roles for a local development process as a collective enterprise (Appendix 4).
13. ADB’s new country strategy and program (CSP) for Bangladesh was prepared in 2005 following the Government’s PRSP. Given the high incidence of rural poverty, the CSP prioritizes investments in agriculture commercialization, rural infrastructure, and rural water management. The strategy for the water sector is to institutionalize integrated planning, development, and management with sustained O&M, while providing support for critical infrastructure where high growth and poverty impacts are expected. The programs build on good practices and lessons, and promote further improved institutional framework in harmony with development partners. All are consistent with ADB’s water policy.
14. Sector Opportunities and Policy Dialogues. The proposed Project was prepared through a project preparatory technical assistance (PPTA, footnote 1) to institutionalize the said management process for medium-sized and large FCD/I schemes in the selected hydrological sub-regions in the southwest. The Project will operationalize the GPWM. The PPTA prepared participatory integrated water management plans (IWMPs) for two large FCD/I schemes, which identified diverse water-related interests and cross-sectoral development constraints, and laid
6 Small, medium-sized, and large schemes are defined as those having command area of up to 1,000 ha, between 1,000 and 5,000 ha, and over 5,000 ha, respectively. 7 ADB. 2001. Report and Recommendation of the President to the People’s Republic of Bangladesh for the Second Small-scale Water Resources Development Sector Project. Manila (approved in July 2001). 8 ADB. 2003. Report and Recommendation of the President to the People’s Republic of Bangladesh for the Jamuna- Meghna River Erosion Mitigation Project. Manila (approved in November 2003). 9 For example, an irrigation service fee was introduced following BWDB Act 2000 allowing project offices to collect, retain, and use irrigation fees, compared with the earlier system of collecting water tax as government revenue.
5 out holistic measures to enhance and sustain their performance.10 The feasibility project design incorporated the aforementioned lessons, with provisions for setting out clear development targets; sufficient up-front WMA strengthening; WMA-driven program delivery with due support for agriculture, fishery, and livelihood activities; mechanisms to protect and address the interests of the poor; intensive strengthening of WMAs’ O&M capacity; and improved internal and external quality control, with use of outsourcing to private providers including nongovernment organizations (NGOs).
15. In addition, policy dialogues were undertaken to enhance the effectiveness of sector operations in support of the Project, in harmony with other externally funded programs. First, the Government developed comprehensive action plans to operationalize NWP for improved performance of the sector agencies, including BWDB and Water Resources Planning Organization (WARPO), through better governance, in particular with TM support.11 Second, generic measures to enhance O&M were agreed upon and substantially advanced: (i) rationalizing recurrent expenditure, (ii) introducing sound O&M performance monitoring and planning at the scheme level, (iii) improving management with performance-based scheme-wise budget allocation, and (iv) progressively enhancing the O&M budget allocated for BWDB. In addition, O&M responsibilities of medium-sized and large FCD/I systems were clarified, including joint management of main facilities and management transfer to WMAs for subordinate facilities. Third, the Government agreed to lease public water bodies in the project command areas directly to the concerned WMAs to enable WMAs to provide fish culture opportunities to their poorest members while generating WMA incomes. 12 Fourth, the Government agreed to initiate steps to introduce external technical auditing for water management infrastructure works, by piloting it under the Project through the office of the Comptroller and Auditor General (CAG) and holding further dialogues toward their introduction. The policy and institutional actions matrix is in Appendix 5.
16. Against this backdrop, the Project is needed to demonstrate and institutionalize the way to enhance and sustain the performance of medium-sized and large FCD/I schemes, a critical and prioritized NWMP agenda, building on the agreed-upon policy dialogue actions and lessons to be applied. These provide a sound basis for achieving substantially enhanced productivity and sustainability in comparison with prereform interventions. The Project envisages covering 100,000 ha of FCD/I areas, including 57,000 ha where IWMPs were prepared under the PPTA. A process-type approach to the rest of the area is justified on the basis of the improved policy and planning framework as reflected in the NWP and NWMP, and development of sector agency capacities that is ongoing through the progressive reforms being put into operation with the harmonized support of externally assisted programs, including the Project.
III. THE PROPOSED PROJECT
A. Impact and Outcome
17. The impact of the Project will be reduced poverty incidence measured in incomes of the population and food availability, and institutionalization of effective mechanisms for enhancing and sustaining the performance of FCD/I systems, applicable and replicated in other areas. Its
10 Chenchuri Beel and Narail schemes. They were identified and assessed during the ADB-assisted FAP regional study and follow-on TA loan (Appendix 3) along with a number of other schemes, and upgraded under the PPTA with IWMPs and renewed institutional designs. A synthesis of IWMPs is included in Appendix 8. 11 The action plans are set up as a common set of actions pursued in externally funded programs to operationalize NWP. For BWDB, they cover institutional development strategy, improving personnel and financial management, decentralizing functions, and improving internal work procedures including monitoring and quality control. 12 The Government policy is to lease out public water bodies for exploitation through a bidding process.
6 outcome will be enhanced productivity and sustainability of the selected existing FCD/I systems suffering from low performance and high incidence of poverty in the selected subregion of the southwest.13 This will be measured from (i) economic indicators e.g., increased production, incomes, and employment in the subproject areas; and (ii) institutional indicators associated with sustainable O&M (e.g., sound WMA and joint management institution establishment, and adequate O&M programming and implementation), and improved agency performance in service delivery (Appendix 1). The Project will cover a geographic area of about 100,000 ha having some 0.8 million population.
B. Outputs
18. The Project outputs are (i) participatory IWMPs for the selected FCD/I schemes, (ii) productive and sustainable water management systems set up through IWMP implementation in the project area, and (iii) strengthened capacities of institutions delivering programs.
1. Part A: Participatory IWMPs
19. Following the sample IWMPs prepared under the PPTA, the Project will prepare IWMPs for additional FCD/I schemes covering about 43,000 ha, to be selected following the set selection criteria. The IWMPs will lay out holistic programs for enhancing and sustaining the performance of the FCD/I schemes, following intensive participatory analyses of diverse local water management problems and development constraints, and assessments of feasibility and safeguards. The process is managed by BWDB and WARPO (for technical backstopping) in collaboration with LGED and other line departments, under the guidance of the council of the concerned village union chairpersons and the support of the consultants for institutional strengthening and project management support (ISPMS). The IWMPs will be endorsed by the said council before they are finalized, and will be regularly reviewed and updated.
2. Part B: Productive and Sustainable Water Management Systems
20. This component will establish improved water management systems for each FCD/I scheme through IWMP implementation. For effective implementation and management, the scheme area is divided into hydrologic subunits (command areas) controlled by individual local structures. 14 They will be implemented individually through process-based subcomponents comprising (i) preparation of a subunit implementation plan (SIP) and mobilization of WMA beneficiaries; (ii) water management and associated infrastructure; (iii) support services for agriculture, fishery and livelihood enhancement; and (iv) monitoring and support for sustainable O&M. In implementing individual subunits, each subcomponent will have distinct output targets, which are set as benchmarks for starting the activities for the succeeding subcomponent. Subunits with better performance in initial processes will be implemented on a priority basis, along with those that need urgent implementation such as embankments in critical sections.
a. SIP Prepared and WMA Formed with Beneficiary Mobilization
21. SIP Preparation. A WMA for each subunit and subordinate water management groups (WMGs) corresponding to individual facilities within the subunit will be formed following the cooperatives legal framework. At the outset, the Project will support the formation of ad hoc WMA and WMGs within the subunit, and prepare an SIP through private firms by setting out
13 Located in six districts: Faridpur, Gopalganj, Jessore, Magura, Narail, and Rajbari. 14 The two sample schemes comprise five independent subschemes covering 5,000–13,000 ha benefit areas, within which are 14 semi-independent compartments and about 50 subunits.
7 specific impact targets and associated programs including inputs and delivery schedules. The SIP will also reconfirm subunit economic feasibility, include resettlement and environmental management plans following the IWMP safeguards outputs, and be endorsed by the WMA.
22. WMA Formation and Strengthening. The Project will establish empowered WMAs to manage activities at preconstruction, construction, and postconstruction stages. The goal is to have WMAs play effective organizational, operational, resource mobilization, and networking functions for productive water management with sustainable O&M. After the SIP is finalized, the Project will support the WMA to implement the institutional development plan specified in the SIP, including (i) enrolling members and mobilizing functional subgroups; (ii) registering, with the formation of executive committees and operational rules; and (iii) collecting cash contribution equivalent to annual O&M requirement for the concerned facilities transferred to WMAs, and establishing that contribution as an O&M reserve fund. The Project will facilitate the process by recruiting and fielding community-based organizers (CBOs) locally that will be trained by private providers including NGOs with the support of the ISPMS consultants.
23. Implementation Agreement. During the above process, participatory detailed design of water management structures will be undertaken, along with the refinement and implementation of the resettlement plans (RPs) included in the SIP. After the WMA achieves its institutional development targets and endorses the detailed design with RP implementation, an implementation agreement will be signed by representatives of the Government, WMA, and local government institutions (LGIs), as a benchmark to start civil works procurement.
b. Water Management and Associated Infrastructure
24. This subcomponent will deliver water management infrastructure specified in the SIP, including flood embankments (resectioning, improvement, and retirement), regulators, sluice gates and pipes, water retention structures, reexcavated drainage/irrigation canals, and local riverbank protection (using lower cost sand-filled geotextile bags). The WMA will be trained to monitor civil works. Internal technical audit will be strengthened, with a pilot introduction of external technical audit to support construction quality control.
c. Enhanced Production and Livelihood through Support Services
25. Upon completion of infrastructure works, this subcomponent will develop beneficiary skills for enhanced productivity and incomes, and WMA capacities to support this end. Its program inputs are specified in the SIP and monitored by WMA. Outputs are also monitored against the SIP targets for land use, production, and incomes at each subunit level.
26. Agriculture and Fishery Development. The Project will provide extension services through local offices of the Department of Agriculture Extension (DAE), Department of Fisheries (DOF), and private service providers including NGOs, to promote adoption of improved practices made possible by the water infrastructure. Services for agriculture will include (i) a campaign for improved soil nutrient management, (ii) field demonstration and training through a farmer field school approach for crop intensification and diversification, and (iii) workshops and farmer tours. As part of the field demonstration, the Project will also support seed multiplication by delivering foundation seeds and technical support, along with integrated pest management. WMAs will sustain activities through training of in-house extension workers within the WMA. Services for fishery development will focus on beels,15 khals (natural channels), and other open
15 A beel is a water body that accumulates surface runoff water through internal drainage canals. It may dry up during the winter but expands into a large water body during the rainy season.
8 and semi-open water bodies, management of which is improved by water infrastructure. For this purpose, a WMA fishery subgroup will be formed with priority membership to the poor who have lost access to floodplain fisheries, and will be provided with culture fishery opportunities such as those created in khals behind water retention structures. The relevant public water bodies within the subproject boundaries will be leased out to the concerned WMAs.16
27. Livelihood Enhancement. The Project will support income-generating activities undertaken on public lands relevant to the project infrastructure (e.g., canal and embankment slopes) by the poorest subgroups formed in the WMA, along with other priority livelihood initiatives. Specific activities promoted will include social forestry, nurseries, crop cultivation, and livestock. Training will be provided through the concerned line departments and private providers mobilized under the Project. In return for project benefits, the beneficiaries will carry out necessary routine maintenance activities for the concerned facilities.17
d. Sustainable O&M System
28. WMA-Managed Facilities. The project facilities will be classified into those managed by WMAs (having a command area of up to 2,500 ha in principle) and others jointly managed by BWDB, LGIs, and WMAs. For the former, the Project will establish WMA capacities to manage sustainable O&M, and will support formation of WMA O&M committees and preparation of O&M plans during the design stage, and will train them to monitor construction. After civil works are completed, the Project will provide on-the-job training for a full year in undertaking (i) annual inspection through a joint walk-through with BWDB, (ii) preparation of the annual O&M plan, and (iii) implementation of the plan. During implementation, WMAs will also increase the reserve fund established during its formation stage through further beneficiary contribution and fees collected from leaseholders of embankment lands and water bodies. After WMA capacities are confirmed, the WMA will enter into a formal O&M agreement with BWDB, based on which O&M responsibilities are transferred. Annual monitoring of the management and performance of the concerned WMAs will also be supported with technical, social, and financial audits.
29. Main Facilities. Regarding the main facilities (defined as flood embankments, and major regulators and canals for a command area of over 2,500 ha), the Project will establish a joint management system between BWDB, LGIs, and WMAs, following the NWP.18 Specifically, it will institutionalize (i) preparation of annual O&M plans following a standardized guideline through joint inspections with WMAs; and (ii) plan implementation by WMAs for facility operation and routine preventive maintenance, and by BWDB for periodic maintenance. During its implementation period, the Project will also support O&M, with a declining ADB funding share.
3. Part C: Project Management Systems and Institutions Strengthened
30. Project Management Systems. To ensure the quality of its output, the Project will operate participatory management and quality control systems through the project management office (PMO) and scheme-level subproject management offices (SMOs), with the support of the ISPMS consultants. To ensure participatory implementation and O&M sustainability, joint
16 For selected well-performing WMAs, training will also be provided to enhance managerial capacities to facilitate improved farmer access to agriculture inputs and other services collectively to reach better deals with providers. 17 In addition, a proposal is being prepared to support pilot implementation of point source-based alternative water supply options (for proposed funding of $1 million through the Japan Fund for Poverty Reduction) including rainwater harvesting, dug wells, pond sand filters, and deep tube wells, for areas where WMA members have little nearby access to arsenic-free drinking water. The program will focus on the poorest groups of women. 18 Under joint management, WMAs are responsible for facility operation and minor routine preventive maintenance, whereas the project authority is responsible for periodic and emergency maintenance.
9 management committees (JMCs) will be set up following the NWP and BWDB Act 2000. The JMCs will comprise representatives of WMAs, LGIs, BWDB, LGED, and line agencies, along with their subunit-level subcommittees. JMCs and their subcommittees will be trained to make subproject decisions at the scheme and the subunit levels, respectively, including project program delivery and annual O&M, based on which specific works will be undertaken by the responsible organizations, with monitoring by the WMAs. Within this framework, the Project’s quality control system ensures (i) due recording and reporting at SMOs on institutional, physical, financial progress against the specified targets and schedules in IWMPs and SIPs; and (ii) regular SMO-PMO review meetings to be operated as part of the internal audit mechanism.
31. Institutions Strengthened through Training and Advisory Support. The Project will provide training to strengthen project institutions, including operating staff and trainers, with a distinct output target to create a pool of professional staff who institutionalize the participatory and integrated business processes embodied in the NWP, with progressively reducing consultancy support that is provided with a clear exit strategy and performance targets for relevant staff positions. Project training will enhance skills for participatory IWMP preparation; socially inclusive WMA development and management; management of diverse stakeholder interests; resettlement; design and construction management; environmental management; agriculture, fishery, and livelihood enhancement; sustainable O&M; and quality control. In addition, in coordination with other externally assisted programs, advisory support will be provided for progress of the generic policy and institutional actions (Appendix 5).
32. Management Information Systems (MIS) for Hydrology and FCD/I Performance. The Project will strengthen the MIS in (i) hydrological data collection and sharing, and (ii) FCD/I scheme performance in the project subregions. As to the former, the Project will set up water user inventories, strengthen the existing data collection and management system, establish an information networking system of salinity data in the dry season for LGIs and water user representatives in the project and the downstream areas, and support informed and coordinated water withdrawal.19 The Project will also operate an MIS to regularly monitor the existing FCD/I scheme performance including maintenance requirements in its subregions, to be operated nationwide in collaboration with other sector projects including the WMIP.
C. Special Features
33. The Project will enhance the effectiveness of water sector operations by implementing key policy principles, improving sector governance, and furthering reform actions: (i) It will operationalize the key principles of the NWP, particularly participatory and integrated planning, development, and management of water to address diverse stakeholder interests, environmental concerns, and other local constraints on agriculture, fishery, and livelihood in the FCD/I areas. Pro-poor focus will be pursued with representation of the vulnerable poor in WMAs and targeted delivery of support. (ii) It will institutionalize sustainable O&M for medium-sized and large FCD/I schemes, with joint management with and management transfer to WMAs, another key NWP principle. This follows good practices and lessons proven effective in small FCD/I schemes assisted by ADB to support WMA-managed O&M. A range of agreed actions will also be pursued to improve funding of jointly managed facilities (para 42). (iii) It will operate stringent quality control systems by clearly stipulating process and impact targets in SIPs, and progressively implementing subproject works by confirming the achievement of the predefined targets at each step, with improved
19 In this context, regular hydrological monitoring of a completed Khulna Jessore drainage rehabilitation project will also be undertaken, along with WMA institutional monitoring and support.
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monitoring and control systems. It will also support broad institutional actions to enhance sector governance in coordination with other externally assisted programs. (iv) It will strengthen WMAs as responsible agents to provide self-help efforts for facility O&M, and then empower them to take lead roles in subproject decision making and monitor the program delivery, thereby transforming the agency role from implementer to service provider. Progressive WMAs will also be trained as a local enterprise with collective bargaining power, facilitating farmer communication with service providers.
D. Cost Estimates
34. The total project cost is estimated at about $43.4 million equivalent, of which $9.7 million (22%) represents the foreign exchange cost and $33.7 million equivalent (78%) the local currency cost (Table 1), including taxes and duties of $3.0 million (Appendix 6). Table 1. Cost Estimates ($ million) Foreign Local Project Components Total Exchange Currency A. Base Cost 1. Integrated Water Management Plan Preparation 0.5 0.3 0.8 2. Productive Water Management a. SIP Preparation and beneficiary Mobilization 0.1 1.1 1.2 b. Water Management Infrastructure 5.2 16.7 21.9 c. Support Services for Agriculture and Others 0.0 2.8 2.8 d. Support for Sustainable O&M 0.6 2.3 2.9 3. Institutional Strengthening and Project Management 2.1 4.8 6.9 Subtotal (A) 8.5 28.0 36.5 B. Contingencies 1. Physical a 0.4 1.4 1.8 2. Price b 0.0 4.3 4.3 Subtotal (B) 0.4 5.7 6.1 C. Interest Charge 0.8 0.0 0.8 Total c 9.7 33.7 43.4 Percent 22 78 100 SIP = subunit implementation plan, O&M = operation and maintenance. a 10% base cost for civil works, land acquisition and resettlement, and 5% for consultancy. b 0% for foreign exchange; and 4.5-5% for local currency. c Includes taxes and duties for $3.0 million. Source: Asian Development Bank estimates.
E. Financing Plan
35. ADB will provide a loan equivalent to $20.0 million from its Special Funds resources to finance about 46% of the total project cost (Table 2). The ADB loan will finance $6.2 million equivalent of the foreign exchange cost including interest charge and $13.8 million equivalent of the local currency cost.20 The Government of the Netherlands is requested to finance about 29% of the Project cost. The Government of Bangladesh will provide $10.9 million equivalent to cover 25% of the total project cost. Interest during construction is capitalized. Local cost financing is justified, given the poverty-oriented nature of the Project and the tight fiscal situation
20 With a term of 32 years including a grace period of 8 years, and an interest charge of 1.0% per annum during the grace period and 1.5% per annum thereafter.
11 in the country. The Government will make the ADB loan, Government of Netherlands grant, and counterpart funds available to the Executing Agency through budget allocation. Table 2. Financing Plan ($ million) Foreign Local Source of Financing Total Cost Percent Exchange Currency Asian Development Bank 6.2 13.8 20.0 46 Netherlands Government 3.5 9.0 12.5 29 Government of Bangladesha 0.0 10.9 10.9 25 Total 9.7 33.7 43.4 100 a Beneficiary farmers will contribute, in lieu of investment financing, 1.5% of structure and 3% of earthwork costs, to be collected and deposited as reserve fund for regular maintenance for the transferred facilities. Source: Asian Development Bank estimates. F. Implementation Arrangements
1. Project Management
36. Organization and Management. The Executing Agency of the Project will be BWDB. A central project coordination office (PCO) will be established in Planning Directorate II with its director assigned as project coordinator to provide technical backstopping, financial control, facilitation with central agencies, and coordination with other externally financed projects for harmonized support. 21 For central coordination, a project steering committee (PSC) will be formed comprising representatives of the concerned ministries and agencies.22 The secretary of the Ministry of Water Resources (MOWR) will chair the PSC, with the project coordinator as member secretary. PSC will be held semiannually during the first year and annually from the second year or whenever required. The organizational structure of the Project is in Appendix 7.
37. Under this central setup, a PMO will be established in BWDB’s southwest zonal office in Faridpur. A senior superintending engineer/additional chief engineer having multidisciplinary experience will head the PMO as full-time project director (PD). The PMO will (i) manage an overall implementation plan, annual work plans and budgets; (ii) liaise with BWDB, WARPO, LGED, and other line agencies for technical backstopping, IWMP clearance (by WARPO), managerial support, and other central-level activities; (iii) prepare IWMPs of additional FCD/I systems with the support of the relevant SMOs; (iv) liaise with, monitor, and supervise SMOs for subproject implementation; (v) manage financial accounts; and (vi) prepare periodic reports on implementation progress, with the support of the ISPMS consultants. Five SMOs under the control of the PMO will be established at the level of individual subprojects,23 building on the existing setup of the concerned BWDB divisional and subdivisional offices supplemented by required staff. Each SMO will be headed by a senior executive engineer with participatory experience to be appointed as subproject manager. The SMO is responsible for day-to-day implementation activities. It will (i) support the PMO planning unit to prepare IWMPs; (ii) manage the overall subproject implementation plans, annual work plans, and budgets; (iii) prepare and implement SIPs with proper recording and reporting to the PMO; and (iv) coordinate with JMC, line departments, LGIs, and NGOs.
21 WARPO and LGED will assign a principal scientific officer and superintending engineer as project coordinators. 22 Including the Economic Relations Division, Implementation Monitoring and Evaluation Division, Local Government Division, Ministry of Agriculture, Ministry of Environment and Forests, Ministry of Fishery and Livestock, Ministry of Land, Ministry of Water Resources, Planning Commission, Rural Development and Cooperatives Division, and their line departments concerned, including the Department of Public Health Engineering. 23 Two SMOs will be established to implement the two sample subprojects in Narail district.
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38. To operationalize participatory planning, implementation, and O&M, a JMC will be established in each subproject. It will have representatives from WMAs, LGIs, and subdistrict level-line department heads, and be initially chaired by the PD during the planning stage and by the superintending engineer of the BWDB subzonal office after IWMP approval.24 A formal institutional setup for a permanent JMC will be defined by the time of the midterm review. The JMC will make subproject decisions, such as endorsing the IWMP, annual and periodic programs, implementation schedules, and O&M, based on which programs are delivered by the designated organizations under SMO management. Its subcommittees will be formed for preparing and implementing SIPs with the concerned line departments, LGIs and WMAs.
39. To support coordinated planning and implementation of IWMPs, LGED will (i) provide technical inputs for preparing IWMPs, (ii) implement small subunits in IWMPs having less than 1,000 ha command area and limited relations with main FCD/I structures (following the NWP),25 and (iii) upgrade rural roads placed on flood embankments identified in IWMPs for joint use. Through their subdistrict offices, DAE and DOF will provide technical inputs for IWMP and SIP preparation and extension for agriculture and fishery development, and supervising private providers and NGOs fielded through SMOs. The Ministry of Land will lease the water bodies managed with subproject structures to the concerned WMAs. The Department of Cooperatives (DOC) will provide regulatory support to WMAs while conducting training for their organizational management. The Department of Environment will clear the subproject environmental documents and monitor environmental impacts. Specific cooperation arrangements will be agreed upon under individual memorandums of understanding (MOUs) between BWDB/MOWR and the concerned agencies within 9 months of loan effectiveness.
40. Subproject Selection Criteria and Implementation Procedures. The Project will prepare and implement IWMPs for additional FCD/I schemes covering 43,000 ha, following the selection criteria in Appendix 8: (i) a benefit area of less than 14,000 ha, (ii) insignificant environmental impacts duly confirmed, (iii) robust economic internal rate of return (EIRR) of over 14%, (iv) poverty incidence higher than the national average, and (v) confirmed beneficiary willingness to take over O&M responsibility. Prospective schemes with pre-feasibility assessments will be proposed by the PMO and approved by a scheme appraisal subcommittee (SASC) placed under the PSC and chaired by WARPO, and then cleared by ADB. The IWMPs will be prepared by the PMO with JMC endorsement, and approved by SASC, WARPO, and ADB. The implementation procedure (Appendix 9) essentially follows the GPWM. IWMPs will be implemented on the basis of individual subunits, and will follow the steps following the project component structure, with engagement of NGOs, CBOs, and private providers.
41. WMA Legal Framework. Under the Project, WMAs will be established following the legal framework of the Cooperatives Societies Act (2001) and Cooperative Societies Rules (2004) as amended, and the GPWM, and federated at each subproject level. Registration of WMAs will authorize them to implement O&M including enforcing resource mobilization from beneficiaries through fees and contributions of labor or in kind. In view of the relatively new experience with legal WMAs, however, the Government plans to study the performance of the existing WMA legal framework, and assess possible measures for improvement including the possibility of alternative frameworks.26 The Project through its consultants will review and advise on the evaluation process and follow-on actions, including the pilot testing of an alternative framework. Improved measures may be considered in accordance with the recommendations.
24 During the planning stage, the JMC is joined by project coordinators from WARPO and LGED. 25 This will be undertaken using the loan funds of the ongoing project for small-scale FCD/I schemes (footnote 7: to be closed in 2009). They cover up to 10% of the two sample scheme areas. 26 The study will be undertaken in FY2006–FY2007 under the ongoing ADB-assisted project (footnote 7).
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42. Sustainable O&M. Sustaining O&M of FCD/I infrastructures has been a critical sector challenge.27 The NWP and ongoing reforms aim to tackle the issue by (i) rationalizing recurrent expenditure with staff reduction (by over 50%) and management transfer to WMAs, (ii) enhancing revenues through recovery of O&M cost of public irrigation schemes and leasing of embankment and canal lands,28 and (iii) enhancing the O&M budget and its management. The Project will harmonize those steps with other programs. Specifically, BWDB is now setting up a sound MIS comprising scheme inventories and a monitoring system of scheme performance and maintenance needs, for national operation under the Project and other programs including WMIP. Based on this MIS, BWDB will introduce a performance-based budget management system (PBMS) for O&M where allocation is prioritized to well-performing schemes, particularly those following the NWP framework. 29 The Government has also recognized the need for sufficient maintenance, and BWDB’s repair budgets were annually increased by 15% since FY2004, following the Prime Minister’s directive. The Government’s medium-term budgetary framework for MOWR, to be finalized in FY2006 following the PRSP, reflects a similar increase, along with the above reform measures. At the scheme level, the Project will set up WMA- managed O&M following good practices of ADB-assisted project for small FCD/I schemes. The Project will also prepare O&M manuals and undertake pilot introduction of contracted maintenance. The innovations will enhance the sustainability of the concerned schemes.
43. Governance and Anticorruption. Good governance is a critical element for ensuring and sustaining the intended benefits from FCD/I renovations. BWDB has established a genuine financial management system with CIDA support by setting up separate regional accounting centers with computerization.30 Building on this system, the Project will institutionalize stringent process and output management, and internal and external quality control mechanisms. Specifically, subprojects will be planned by setting out clear input and output targets in IWMPs and SIPs, and progressively implemented by confirming that predefined targets are achieved at each stage. WMAs are empowered to endorse SIPs, along with periodic program documents with full information disclosure including expenditures, and to monitor and confirm program delivery. For internal quality control, the Project, with the support of the consultants, will institutionalize (i) due recording by SMOs of subproject progress on comprehensive indicators including construction quality verified with trained WMA representatives, and (ii) monitoring and auditing by the PMO. In addition, following the arrangements being introduced under an ADB- assisted TA,31 external performance and pilot technical auditing will also be applied through the CAG office by engaging private auditors.32 External financial, social, and institutional audit of WMAs will also be operated through the DOC in collaboration with the SMO. In these contexts, ADB’s Anticorruption Policy was fully explained and discussed with the Government.33
27 The annual BWDB budget for regular and periodic maintenance is about $35 million (excluding staff costs), and remains about 50% of the requirements estimated for functional schemes, on average. 28 The NWP does not envisage O&M cost recovery of flood control and drainage facilities (except those transferred to WMAs), in view of the public goods nature of the benefits. 29 The MIS design and PBMS framework drafting were completed prior to loan negotiations. 30 BWDB’s financial management was reviewed and found generally satisfactory (Supplementary Appendix H). 31 ADB. 2003. Technical Assistance to the People’s Republic of Bangladesh for Supporting Good Governance Initiatives. Manila. 32 The consultants will further include a provision for random expenditure tracking surveys by external auditors. 33 Consistent with its commitment to good governance, accountability and transparency, ADB reserves the right to investigate, directly or through its agents, any alleged corrupt, fraudulent, collusive, or coercive practices relating to the Project. To support these efforts, relevant provisions of ADB’s Anticorruption Policy are included in the loan regulations and the bidding documents for the Project. In particular, all contracts financed by ADB in connection with the Project shall include provisions specifying the right of ADB to audit and examine the records and accounts of the Executing Agency and all contractors, suppliers, consultants and other service providers as they relate to the Project.
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2. Implementation Period
44. The project implementation period will be 7 years, starting from April 2006. The two sample subprojects will be implemented during the first 6 years through sequential progress in WMA institutional development, infrastructure, and support programs in individual subunits. The remaining subprojects will be assisted with IWMP preparation in the first 1.5 years, followed by implementation for 3–5 years, depending on the scheme size (Appendix 10).
3. Procurement
45. Goods and related services, and civil works to be financed from the ADB loan proceeds will be procured in accordance with ADB’s Guidelines for Procurement. Vehicles, equipment, and materials will be procured by international competitive bidding (ICB) where the estimated cost is valued at more than $1 million equivalent, by international shopping for packages from $300,000 to $1 million equivalent, or by local competitive bidding (LCB), typically those specified in the Government’s Public Procurement Regulations 2003 (PPR), for $300,000 or less. Civil works will be procured in accordance with LCB procedures acceptable to ADB, typically those specified in the PPR. Given the small size of individual contracts (less than $2.0 million), they are unlikely to attract international bidders. LCB civil works procurement will follow the single- stage, one-envelope procedure with postqualification. Small earthwork contracts valued at less than $8,000 may be awarded to labor contracting societies (LCS) to be formed within the WMA with NGO support. Appendix 11 shows indicative contract packages.
4. Consulting Services
46. The Project will include a consultancy package for ISPMS. It aims to fill capacity gaps to deliver the intended project outputs while institutionalizing the set processes. A total of 72 person-months of international and 532 person-months of domestic consulting services will be required for this purpose. (Outline terms of reference are in Appendix 12). The consultants will be engaged following the ADB’s Guidelines on the Use of Consultants and other arrangements satisfactory for ADB for engaging domestic consultants, through quality-and-cost based selection procedures with advance recruitment. The Government has been advised that advance action does not commit ADB or the Netherlands Government to finance the Project. In view of the nonengineering complexity and the need for early mobilization, ADB will select the ISPMS consultants. The Project will also require the services of private service providers including NGOs and firms to (i) carry out participatory rural appraisals for IWMP preparation and socioeconomic surveys; (ii) mobilize subproject stakeholder groups for WMAs; (iii) prepare SIPs; (iv) survey, design, and supervise civil works; (v) refine and implement RPs; (v) deliver various support services; and (vi) carry out monitoring and evaluation (M&E). Technically qualified providers will be engaged, using selection procedures acceptable to ADB.
5. Disbursement Arrangements
47. The Government will make funds available to BWDB/PMO through budgetary allocation. The Government of the Netherlands will disburse funds to ADB for administration as jointly cofinanced funds. The proceeds for ADB loan and jointly cofinanced funds will be advanced to BWDB and deposited in dollar impressed accounts at the Bangladesh Bank or any other commercial bank nominated by the Bangladesh Bank or Ministry of Finance and acceptable to ADB. The imprest account will be managed in accordance with ADB’s Loan Disbursement Handbook (January 2001), and detailed arrangements agreed upon by the Government and ADB. The initial amount released to the imprest account will not exceed 6 months of estimated
15 expenditure and not more than 10% of the total loan amount. To facilitate reimbursement and liquidation of small contracts from the imprest account, ADB’s statement of expenditure procedure (SOE) will be followed for individual payment transactions not exceeding $50,000.
6. Accounting and Auditing
48. BWDB/PCO, PMO, and SMOs will maintain separate records and accounts adequate to identify the goods and services financed from the loan proceeds, the financing resources received, expenditures incurred for the Project, and the use of local funds, in accordance with generally accepted accounting principles. Consolidated project accounts and related financial statements will be compiled by BWDB/PCO and audited annually by independent auditors acceptable to ADB. The annual audit will include the audit of the imprest account and SOE procedures. A separate audit opinion on the use of the imprest account and SOE procedures will be included in the annual audit report. The audited accounts, audit report, and related financial statements will be submitted to ADB not later than 6 months after the close of the fiscal year to which they relate. PMO will resolve all audit opinions within the following 6 months.
7. Project Performance Monitoring and Evaluation, and Reporting
49. M&E of project performance will comprise (i) subproject baseline data and output targets set up during IWMP and SIP preparation kept in SMOs and the PMO; (ii) comprehensive implementation-related indicators duly collected and recorded by SMOs and reported to JMC and PMO, and periodically audited by the PMO; and (iii) postcompletion performance and impact data collected by SMOs and WMAs kept in SMOs and the PMO. The system will establish a set of monitorable targets and indicators for results-based management following the design and monitoring framework (Appendix 1) with dynamic adjustment, and disaggregated data by gender and landholding size. Implementation monitoring will integrate financial and non- financial aspects. The PMO will establish an effective MIS within 1 year of loan effectiveness and will prepare and submit quarterly progress reports and annual benefit monitoring reports to ADB. A detailed study will be conducted to review project progress before the midterm review (MTR). An impact evaluation study will be undertaken in preparing a project completion report, which will be submitted to ADB within 3 months after the physical completion of the Project.
8. Project Review
50. MOWR, ADB, and the Government of the Netherlands will review the project at least twice a year. The regular reviews will cover the performance of BWDB and other institutions, loan covenants including implementation of the policy and institutional action plans and gender action plan, and physical progress of project implementation. A comprehensive MTR in year 3 will evaluate (i) project progress including quality of services delivered, (ii) impacts of economic and other indicators, (iii) effectiveness of project management and implementation, (iv) progress in policy and institutional actions, and (v) future implementation plan and targets.34 The project design and implementation arrangements will be adjusted as necessary.
IV. PROJECT BENEFITS, IMPACTS, ASSUMPTIONS, AND RISKS
A. Economic Impacts
51. At full development, the Project will rehabilitate a gross area of 100,000 ha (of which about 73,000 ha is cultivated land) of FCD/I schemes suffering form low productivity and a high
34 The Implementation, Monitoring and Evaluation Division will also undertake midterm evaluation of the Project.
16 incidence of poverty. About 150,000 households will benefit from improved livelihood activities. Rehabilitation will decrease flooding, improve drainage, and increase irrigation. The improvement will allow farmers to increase cropping intensity and improve crop yields. With better flood protection, an increase in culture fishery production is also expected. These will induce a demand for hired labor and benefit the poor who have little, if any, land. Major quantified benefits are shown in Appendix 13. Nonquantified benefits include operation of sound institutions for IWMP preparation, implementation, and O&M; improved sector governance through institutional strengthening; and increased traffic on improved embankment roads.
52. Financial and economic analyses were carried out for the two sample subprojects. The Chenchuri Beel subproject covers 17,900 ha of net cultivated area and Narail, 23,400 ha. While they are protected by the existing flood embankments built in the early 1980s35 and that have remained functional without further external aid, their productivity is affected by degraded main infrastructure and lack of minor water control facilities to address local problems. The Project will increase cropping intensity by 15% to about 220%, with modest improvements in yield (primarily through shifts to high yielding varieties of paddy and other crops) resulting in annual outputs increasing by 54,800 t. Culture fish production will also increase by 1,200 t. Annual O&M demand is estimated to cost $0.48 million, of which BWDB and WMAs will bear about 70% and 30%, respectively. While BWDB’s present national O&M budget is short of the estimated demand by up to 50%, the gap will be addressed by the actions synthesized in para. 42. WMA contribution amounts to less than 10% of incremental farmer incomes, a comparable level pursued and practiced in the LGED project assisted by ADB. The estimated EIRR is 16.5% for Chenchuri Beel and 21.2% for Narail. Sensitivity analysis to test the impacts of a range of risks including in investment costs, output prices, yields, and project life showed that project returns are generally robust. The greatest risk appears to be reduction in price of food grains in Chenchuri Beel, but even a drop of 20% in its price will still produce an EIRR of 12%.36
B. Household and Poverty Reduction Impacts
53. The Project will have positive poverty reduction impacts on income, employment opportunities including those for tenant farmers and sharecroppers (that are arising from labor constraints experienced by larger farmers), and food security. According to the socioeconomic survey, poverty incidence in the two subproject areas is about 55%, and is concentrated among those in agriculture, fishery, and labor as primary occupation, and among landless and marginal and small farmers with up to 1 ha landholding. Annual incremental crop income will be 16–18% for all sizes of farms. Increase in hired labor income will be 14–16% and will go almost entirely to marginal and landless households. In local financial terms, 43–46% of incremental income due to the Project will go to the poor.
C. Social and Gender Development Strategy
54. The Project is highly participatory in design and will be implemented following a process approach involving all stakeholders in decision making. Appendix 14 gives the summary poverty reduction and social development strategy. The project subregion does not have any indigenous peoples. The specific strategy includes (i) pro-poor procedures and guidelines for beneficiary selection and employment; (ii) membership and credit access to WMAs; (iii) WMA participation in design, planning, implementing, and monitoring with inclusive by-laws; (iv) a comprehensive capacity development plan highlighting project staff, WMAs, and village groups; (v) guidelines
35 Original investment for Chenchuri Beel was funded by the World Bank, whereas a part of that for Narail was funded by the Government of the Netherlands. 36 The minimum project life that generates justifiable EIRR is 11 years for Narail and 12.5 years for Chenchuri Beel.
17 for social activities such as conflict resolution, anti-dowry drives, and women representation; and (vi) procedures for networking and linkages among WMAs and service- providing agencies. The strategy will also establish consultative platforms at the village level for LGIs and NGOs before appropriate interventions are planned for water infrastructure, farming and nonfarming production, and income generation. Training will be provided for leadership and confidence building to enable the poor and women’s groups to form WMAs capable of infrastructure O&M. Village facilitators will also be selected and trained. Procedures for coordination among LGI representatives, NGOs, and WMAs will also be established for effective service delivery.
55. The Project’s gender action plan (Appendix 15), to be further adjusted during its implementation, includes (i) employment of female staff at all levels and training for field staff in gender-sensitive and participatory planning and project implementation; (ii) employment opportunities for women generated by the project and O&M works, and training for all aspects of O&M; (iii) training for women's work in farm and homestead production; (iv) strengthening the extension system to become gender-equitable; (v) response to women's agricultural and household needs for technology in close collaboration with implementing agencies and NGOs; (vi) support for women in their home-based postharvest production, processing, and marketing activities by providing local market information and linkages; and (vii) training for women in crop and horticulture production, postharvest operations, poultry and small livestock rearing, social forestry, fisheries production and processing, credit, seed production, and nutrition education. Gender-specific monitoring indicators will also be set up to support the plan.
D. Environmental Impacts
56. An environmental impact assessment (EIA) was carried out during the PPTA for the two sample FCD/I schemes in view of their large geographic coverage.37 The Project will have positive impacts on the environment, including (i) improved flood management; (ii) improved water use efficiency through water retention and storage, with reduced pressure on groundwater extraction; (iii) reduced salinity intrusion through water regulating structures, thereby preventing land degradation; and (iv) reduced waterlogging through drainage improvement. On the other hand, negative impacts will include (i) possible exacerbation of downstream salinity intrusion due to excessive river water abstraction, (ii) obstruction of fish migration between the rivers and internal water bodies by regulators and other structures, (iii) deterioration of water quality due to agriculture intensification, and (iv) impacts during construction of structures and embankments. The impacts are mitigated by (i) implementing salinity monitoring and an information sharing program in the project and downstream areas with promotion of coordinated water abstraction, (ii) introducing and promoting fish-friendly design and operation of regulators with provision for fish culture opportunities, (iii) introducing integrated pest management and effective soil nutrient management; and (iv) ensuring safe and environmentally sound construction practices. These are incorporated in the EIA and the summary EIA.
57. The overall responsibility for environmental management is with the PMO, with the experienced executive engineer assigned as chief resettlement and environmental manager, assisted by the consultants. In the SMO, a subdivisional engineer will be assigned as environmental officer responsible for field management and reporting, with monitoring and support by PMO and the consultants. For further subprojects, initial environmental examinations (IEEs) and EIAs, if required following the IEEs, will be undertaken by the PMO with consultant support, in accordance with Government and ADB requirements, and following the EIA prepared for sample subprojects. All IEEs/EIAs will be endorsed by the Government and ADB.
37 The summary EIA was circulated to the Board on 14 July 2005.
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E. Resettlement
58. In the two sample subprojects, land acquisition and resettlement needs associated with water infrastructure works were studied during the PPTA. A resettlement framework (RF) and sample RPs were prepared, following ADB’s involuntary resettlement and other social safeguards policies. Subproject implementation will require strip acquisition of land for resectioning and realigning embankments and placement of structures, totaling 56 ha of land in the sample subprojects. Under the Project, the RF will be followed, and all affected persons (APs) will be entitled to compensation for land taken for the purpose of the project interventions, for lost assets, and for incomes at replacement cost to improve or at least restore their preproject living standards, income levels, and productive capacity. The PMO will supervise RP preparation and implementation by the concerned SMO through private firms and NGOs, with the support of the consultants. The RPs as prepared with IWMPs as well as those for finalization with detailed designs will be sent to ADB for approval. In implementing the RPs, a grievance redressing mechanism with representatives from the PMO, APs, LGIs, and the NGO will be established. The PMO will prepare and submit to ADB an annual report on the land acquisition and resettlement issues. An independent M&E agency will also be engaged to assess performance and impacts. The provisional cost estimate for resettlement is about $3.4 million equivalent. Appendix 16 gives the summary RF and RPs.
F. Risks
59. The Project has certain risks that could adversely affect effective implementation and sustainable benefits. It has incorporated mitigating measures to the maximum extent possible.
60. Insufficient Stakeholder Participation. There is a possibility that the concerned WMAs may not sufficiently represent stakeholders with diverse interests in the subunit area, and fail to operate water management facilities equitably with due coordination. To avoid the risk, the Project will ensure at least 70% of the beneficiary households will be enrolled in WMAs prior to physical works of the subunit, an approach followed in ADB-assisted project for small-scale FCD/I schemes implemented by LGED. It will also ensure due representation of different stakeholders, particularly the poor in the WMA committees. Intensive monitoring will be provided through the SMO, the ISPMS consultants, and the DOC for sound operation of WMAs.
61. Sustainability–Output Quality and O&M. Sustaining the project impacts will require delivering quality outputs with effective interagency coordination and governance on the one hand, and sustainable O&M on the other. The former will be pursued by ensuring stringent process and output management with a participatory approach. Interagency coordination will be addressed by stipulating specific agency roles in the MOUs and providing necessary funding to support those roles. Output quality will be further enhanced through strengthened internal and external quality control mechanisms with capacity development, including (i) a sound MIS operated by SMOs with proper programming, recording, and reporting in light of defined IWMP/ SIP targets; (ii) improved internal auditing mechanisms operated by the PMO; (iii) monitoring and confirmation of program delivery and outputs by WMAs; and (iv) external performance and technical auditing applied by the CAG office. On the other hand, O&M sustainability is pursued through comprehensive measures, including enhanced overall O&M budget and its improved scheme-wise management at the policy level, and increased WMA participation in O&M at the field level. All measures will contribute to overall project sustainability.
62. BWDB Management Capacity for Participatory Water Management. Past projects have generally demonstrated the insufficient capacity of BWDB in participatory water
19 management. However, BWDB is adopting decentralization, participation, client orientation, and multisectoral coordination as key elements of its institutional vision, and has launched holistic action plans with the harmonized support of external funding agencies. In line with this, the Project will provide support for their effective implementation, with the objective of having BWDB progressively develop the capacity to operate participatory procedures, arrangements, and management systems. To address the human resources gap, the Project will institutionalize outsourcing arrangements to private service providers to support the social mobilization process and other nonengineering functions, with the assistance of the ISPMS consultants.
V. ASSURANCES
A. Specific Assurances
63. In addition to the standard assurances, the Government and BWDB have given the following assurances, which are incorporated in the legal documents. (i) The Government will undertake all time bound policy and institutional actions as specified in Appendix 5, agreed upon with ADB. (ii) The Government will ensure that all subprojects meet the selection criteria and implementation arrangements and procedures as specified in Appendixes 8–9. (iii) The Government will ensure that WMAs under the Project will be established in accordance with the Cooperatives Societies Act (2001) and Cooperative Societies Rules (2004) as amended from time to time, and the GPWM, or any other legal framework satisfactory to ADB. (iv) Upon completion of a subproject program, the Government will transfer to the concerned WMAs the O&M responsibility for the subproject’s water management structures with command area of less than 2,500 ha, or as otherwise agreed upon by the Government and ADB. To support the process, the Government will ensure that the implementation agreement with the WMA is signed only after achieving (a) membership enrollment of over 70% of direct beneficiary households, (b) full collection of up-front cash contribution equivalent to annual O&M costs of the facilities to be managed by the WMA, and (c) agreement among members on the operational rules of water control structures. (v) The Government will ensure that the share of ADB and the Government of the Netherlands funding for infrastructure O&M will be phased out starting from 60% in year 3 of loan effectiveness and reduced by 20% in year 5 and year 7, respectively. (vi) The Government will ensure that land acquisition and resettlement activities are implemented in accordance with all applicable laws and regulations of the Government, and ADB’s policy on involuntary resettlement, as set out in the agreed- upon RF and RP. The Government will ensure that, in case of any discrepancies between Bangladesh’s laws, regulations, and/or procedures and ADB’s requirements including the Policy on involuntary resettlement, ADB’s policy will apply. BWDB will ensure that (a) the PMO and SMOs have resettlement staff throughout project implementation; (b) Narail and Chenchuri Beel subproject RPs are updated based on detailed technical design, disclosed to APs, and submitted to ADB for approval; (c) other subproject RPs are prepared based on detailed technical design, disclosed to APs and the ADB website, and submitted to ADB for approval in accordance with the RF agreed upon by ADB and the Borrower; (d) the PMO will submit the progress and completion reports on land acquisition and resettlement that will be included in the financial audit statements for each subproject; and (e) the external monitor’s contract states that monitoring reports will be submitted simultaneously to ADB and BWDB. BWDB will not award contracts for any construction work unless the concerned RP
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as required has been submitted to and approved by BWDB and ADB. BWDB will not award any contract unless the RP has been fully implemented. (vii) The Government will ensure that adequate environmental mitigating measures are incorporated into the subproject design, construction, O&M, and monitoring arrangements in the form of environmental management plans in accordance with (a) the Environmental Policy of the Asian Development Bank (2002), and (b) the Government’s environmental laws and regulations, and following the EIA prepared for the sample subprojects, including semiannual progress reporting of environmental issues. The Government will ensure that the IEE/EIAs are included in the subproject feasibility study reports. The IEE/EIA will be endorsed by the Government. The EIA will also be sent to ADB for concurrence. (viii) The Government will ensure (a) achievement of at least 33% representation by women in WMAs on average, (b) implementation of the gender action plan in Appendix 15, and (c) due representation of diverse stakeholders in WMAs in accordance with the household distribution in the subproject areas.
B. Conditions for Loan Effectiveness 64. In addition to the general conditions, the Government will have (i) approved the development project proposal satisfactory to ADB, through the Executive Committee to the National Economic Council; (ii) established the PCO and PMO with the designation of the project coordinator and the project director, along with other key executive staff; and (iii) obtained confirmation from the Government of the Netherlands that the Netherlands grant has been approved.
C. Conditions for Withdrawal from the Loan Account
65. No withdrawals from the loan account will be made until the grant fund provided by the Government of the Netherlands has become effective. The ISPMS consultants will also have been fielded before starting withdrawals from the loan account, except for the expenditures for equipment and supplies; vehicles; survey, investigation, and monitoring; and project management, unless otherwise agreed–upon with ADB.
VI. RECOMMENDATION
66. I am satisfied that the proposed loan would comply with the Articles of Agreement of ADB and recommend that the Board approve (i) the loan in various currencies equivalent to Special Drawing Rights 13,863,000 to the People’s Republic of Bangladesh for the Southwest Area Integrated Water Resources Planning and Management Project, from ADB’s Special Funds resources, with an interest charge at the rate of 1.0% per annum during the grace period and 1.5% per annum thereafter; a term of 32 years, including a grace period of 8 years; and such other terms and conditions as are substantially in accordance with those set forth in the draft Loan and Project Agreements presented to the Board; and (ii) the administration by ADB of a grant not exceeding the equivalent of $12,500,000 to the Government of Bangladesh for the Southwest Area Integrated Water Resources Planning and Manangement Project, to be provided by the Government of the Netherlands on a grant basis. Haruhiko Kuroda President 31 October 2005
Appendix 1 21
DESIGN AND MONITORING FRAMEWORK Performance Data Sources/Reporting Design Summary Assumptions and Risks Indicators/Targets Mechanisms Impact
Enhanced economic growth and • Poverty incidence in rural • National and district reduced poverty in rural areas of households in subproject areas statistics on the selected subregions in the is reduced by 10% due the agriculture, incomes, southwest areas Project. and HDIs • Farmers having 0.20 ha of land • BME reports
achieve 100% food self- • Gender-differentiated sufficiency on average. district baseline • Livelihood of the poor surveys improves, as demonstrated by better HDIs. • Similar interventions are widely replicated, thereby accelerating agriculture growth confirmed in district-level statistics. Outcome Assumptions
Enhanced productivity and Following results achieved in • BME reports • Political conditions sustainability of existing FCD/I subproject areas covering over • National statistics remain conducive. systems (forming hydrological 100,000 ha by 2015, with indi- • Project MIS comprising • Project institutions are boundaries) suffering from low vidual subproject targets fixed in baseline, targets, willing to promote productivity and poverty in the IWMPs and SIPs, and monitored: process/management, participatory integrated selected subregions of the (i) Cropping intensity increases and impacts water management. southwest through by 30%. • Project progress and • WMAs are willing to (ii) Annual cereal and other crop (i) Preparing IWMPs for the areas; completion reports strengthen institutional production increases by 104 • Consultants’ reports basis while managing (ii) Delivering services for WMA thousand tons (Tt) t and the facilities effectively. development, water management 70Tt, and culture fish by 5Tt. • WMAs are willing to facilities, and support for (iii) Gross margin per farm adopt modern cropping agriculture, fishery, and livelihood family increases by 30%. patterns. enhancement including women (iv) Permanent employment in- • Damage from natural and disadvantaged groups; and creases by 4.6 million days. disasters is manage- (v) Annual family income of able or rehabilitated. (iii) Strengthening institutions to landless farm laborers in- operate the above functions while creases by over Tk1,200. delivering intended benefits with self-sustaining O&M Following institutional • Project MIS comprising • Political conditions mechanisms. performance achieved: baseline, targets, remain conducive. (i) Individual outputs for institu- process/management, • Project institutions are tional actions (Component/ and impacts willing to strengthen Output B.1.) are operated. • Project progress and service delivery (ii) Improved support system is completion reports systems. operated as per IWMPs. • Consultants’ reports • WMAs are willing to (iii) BWDB capacity is • BWDB’s MIS of strengthen institutional established to initiate 5 SIPs completed schemes basis adopting new per SMO per annum. • Evaluation reports by cropping practice. (iv) DAE and DOF are capable of independent agents • Necessary system is providing due services as per • WMA/JMC operational to monitor IWMPs and SIPs, with WMA performance audit performance. satisfaction. reports by BWDB and • Leadership and support (v) JMCs established with financial and exist within and outside sustainable O&M achieve institutional audit BWDB. IWMP socioeconomic targets. reports by DOC (vi) WMAs are functioning • Project MIS for O&M to achieving SIP targets (see include annual B.1. and B.4. below) with resource requirement, enhanced representation of mobilization planned, women and disadvantaged mobilization achieved, groups, and sustaining O&M. and follow-up actions
22 Appendix 1
Performance Data Sources/Reporting Design Summary Assumptions and Risks Indicators/Targets Mechanisms Outputs Assumptions A. IWMP Preparation • Participatory process is Participatory identification, • Participatory IWMPs are • Prepared IWMPs duly followed by all. screening, and preparation of formulated in all selected • Project progress • Monitoring and quality IWMPs with feasibility studies schemes, including IEE/EIAs reports support are effective. and RPs, and appraised with • Consultants’ reports • Beneficiaries support concerned stakeholder • ADB review missions collective action. endorsement, and approved by WARPO and ADB. B. Productive and Sustainable Water Management Systems 1. Participatory Planning and Beneficiary Mobilization • Participatory process is (i) Preparation of SIPs with • 100 SIPs are prepared with • Prepared SIPs duly followed by all. feasibility confirmation WMA endorsement. • Project MIS • Monitoring and quality • Project progress and support are effective. (ii) Viable WMAs strengthened to • 100 WMAs are strengthened, completion reports • Beneficiaries support become effective community with achievement of targets: • Consultants’ reports collective action. organization ready to receive - Over 70% farmers enrolled • WMAs comply with the investment support and to - Officially registered • ADB review missions beneficiary contribution enhance agriculture production - Beneficiary contribution • WMA constitution and requirements. targets achieved. its rules
• 33% women’s representation. • RP implementation
• WMAs endorse design. progress reports
• RPs are implemented. • 100 IAs are signed. 2. Water Management and • Water management and (Same as above) • Participatory process is Associated Infrastructure: associated infrastructure are duly followed by all. Good quality infrastructure completed, with WMA. • Monitoring and quality designed and constructed, monitoring and satisfaction. support are effective. following SIP • RPs have been implemented and monitored. 3. Support for Agriculture, Fishery, • 100 WMAs achieve SIP (Same as above) • Project institutions and Livelihood Enhancement: targets in cropping pattern appreciate the value of Agriculture extension, fishery and intensity, inputs, yield participatory approach. development, and livelihood levels, and fishery production. • Monitoring and quality enhancement support services • WMAs continue extension support are effective provided as specified in SIPs with trained members. • WMA members are and targets set up therein • Targets for livelihood willing to adopt achieved enhancement as set out in improved cropping SIPs are achieved, in terms of practices. program delivery and income levels of beneficiaries. • At least 20% of subprojects successfully start their own microcredit activities. 4. Support for Sustainable O&M: • JMCs prepare and implement (Same as above) • Logistical support Systems operational on a effective O&M plans for jointly • Project MIS for O&M provided by the Gov- sustainable basis managed facilities annually. (annual resource need, ernment to operate • WMAs prepare and imple- planned and actual regular audit mech-
ment effective O&M plans for mobilization, WMA anisms is sufficient.
WMA-managed facilities. reserve fund) • Project staffs are willing
• WMAs replenish O&M fund • WMA/JMC perfor- to monitor the annually. mance audit by BWDB completed schemes. • Regular WMA audit system is and financial and insti- made functional. tutional audit by DOC.
Appendix 1 23
Performance Data Sources/Reporting Design Summary Assumptions and Risks Indicators/Targets Mechanisms C. Institutions and Project Management Systems Strengthened and Operational The following will be achieved, 1. National-Level Institutions with WMIP and twinning Strengthened through Advisory missions; • Annual reports by • Political and institution- Support • IWMP guidelines formulated WARPO al support is sufficient. (i) Enhanced WARPO functions and WARPO proactively • Project progress and • Top leadership is support the process. completion reports strong. • WARPO’s clearinghouse • Twinning mission and • Recruitment of function is set up and WMIP reports consultants is timely. operationalized. • Consultants’ reports • Annual review of NWMP and • ADB review missions strategy is operationalized. • GPWM is evaluated and improved. • Sound National Water Act is formulated. (ii) Enhanced multidisciplinary • 5-year strategic plan is • Annual reports by (Same as above) skills, and management system finalized and operated. BWDB of BWDB to operate NWP • HRD strategy is finalized in • Project MIS (institu- principles including sustainable line with NWP and operated. tional subsystem) participatory O&M • Rules for job rotation and • Project progress and promotion are established. completion reports • MIS to monitor completed • Twinning mission and schemes is operational. WMIP reports • Performance-based O&M • Consultants’ reports budget management system • ADB review missions is operational. • Annual budget book • BWDB regular budget for and annual report of O&M is strengthened. BWDB • BWDB-LGED MOU is signed for coordinated FCD/I works. • MOWR-MOL MOU for public water body leasing is signed. • Internal quality control system is reviewed and improved. • External performance audit system is tested. 2. Enhanced Operational Effectiveness of Permanent Project-Level Institutions • GPWM is fully operated in • Improved GPWM • Project institutions are through Training BWDB and improved. • IWMPs, IEE/EIAs, RPs supportive. (i) Effective operation of program • Accountability measures for • Project MIS (sub- • Sufficient counterpart delivery system with improved project institutions (regular system for institutions) fund is provided. procedures and arrangements JMC and SMO-WMA • Project progress and • Stakeholders are willing with sustained impacts, meetings, monitoring by completion reports to participate. including WMAs, etc.) are operating. including safeguards • Recruitment of - PMO/SMO • RPs and EMPs are prepared, • Consultants’ reports consultants and other - Other line departments implemented, and monitored. • ADB review missions organizations is timely. - LGIs (subdistricts and unions • JMC is fully functional by • WMA record books • Regulatory review of villages) achieving annual O&M. • WMA/JMC perfor- system to support - JMCs • WMAs operate facilities with mance audit by BWDB sound WMA - WMAs due coordination with diverse and by DOC management is - Private firms and agents stakeholders. effective. - NGOs and COs (ii) Enhanced capacities of project • BWDB CDP is updated and (Same as above) • Effective training is institutions, stakeholders, and effectively implemented. • CDP provided, and capacity their representatives • Project and its supervisory • CDP implementation developed is retained. strengthened through training staff performance targets are report (by consultants) • Recruitment of
24 Appendix 1
Performance Data Sources/Reporting Design Summary Assumptions and Risks Indicators/Targets Mechanisms established and achieved to consultants is timely. institutionalize participatory and integrated business processes of NWP. • Project institutions are fully operational through effective project management support. 3. MIS for Hydrology and Scheme • Hydrology data including • Project MIS • Staff are willing to Performance in Project Area salinity is regularly monitored. • Project progress and sustain activities. • Information sharing and completion reports • Stakeholders support coordinated water withdrawal • Consultants’ reports coordination. exist among LGIs and WMAs. • ADB review missions • BWDB’s O&M MIS is made operational in the project area. Activities and Milestones Inputs A. By Government (i) Implement actions for policy and institutional strengthening by 2013 • Training (with NGOs and private firms) (ii) Operate project institutions and implement the Project with external • Incremental staff, operating, and other implementation support organizations by 2013 expenses (iii) Strengthen project institutions with consultants by 2013 • Mobilization of counterpart fund B. By Consultants Capacity development and project management, including • 72 person-months of international and 532 person- (i) Support for preparing IWMPs by 2007, months of domestic consulting services (ii) Support for operation of GPWM by 2013, (iii) Support for institutional development and project management, and capacity development and organizing training by 2013. C. By Support Organizations 1. NGO/ CBO/ Private firms (i) Feasibility studies and SIPs, and CBO training by 2009, • WMA Social mobilization and training (ii) Undertaking RPs and IEE/EIAs by 2007, • Training and capability building (iii) Facilitate WMA strengthening by 2013, • Survey and investigation (iv) Detailed design and supervision activities by 2010, • Monitoring and evaluation (v) Monitoring of subproject by 2013, (vi) Training by 2013. 2. Contractors and Suppliers (i) Construction works by 2011, • Civil works (ii) Equipment and supply by 2013. • Equipment and supply D. By WMA (i) Participation in information campaign, survey, feasibility studies, • Earthworks and SIP preparation by 2009, • Regular O&M (ii) Participation in design and construction monitoring by 2011, • Local resource mobilization for O&M reserve fund (iii) Mobilization of resources for up-front cash contribution by 2009, (iv) Implementation of earthworks by 2011, (v) Transferred facility O&M by 2013. Project Cost Total $43.4 million ADB = Asian Development Bank, BME = benefit monitoring and evaluation, BWDB = Bangladesh Water Development Board, CDP = capacity development plan, CO = community organizer, DAE = Department of Agriculture Extension, DOC = Department of Cooperatives, DOF = Department of Fisheries, EIA = environmental impact assessment, EMP = environmental management plan, FCD/I = flood control and drainage/irrigation, GPWM = guidelines for participatory water management, ha = hectares, HDI = human development index, HRD = human resource development, IA = implementation agreement, IEE = initial environmental examination, IWMP = integrated water management plan, JMC = joint management committee, LGED = Local Government Engineering Department, LGI = local government institution, MIS = management information system, MOL = Ministry of Land, MOWR = Ministry of Water Resources, MOU = memorandum of understanding, NGO = nongovernment organization, NWP = National Water Policy, O&M = operation and maintenance, PMO = project management office, RP = resettlement plan, SIP = subunit implementation plan, SMO = subproject management office, WARPO = Water Resources Planning Organization, WMA = water management association, WMIP = Water Management Improvement Project (assisted by the World Bank and the Government of the Netherlands).
Appendix 2 25
WATER RESOURCES SECTOR ANALYSIS
A. Background and Issues
1. Bangladesh is in an alluvial deltaic floodplain in the confluence of three major rivers–the Ganges (Padma), Brahmaputra (Jamuna), and Meghna–which have a catchment area of 1.74 million square kilometers (km2). The rivers cause substantial seasonal variability of flows, posing key physical challenges of (i) severe flooding, which not only inundates up to two thirds of the country but also fills river channels with sediment and erodes riverbanks, causing social hardships to the people along the rivers; (ii) limited water during the dry season and expanding water demand; (iii) saline intrusion and environmental degradation; (iv) cyclones and tidal surges that decimate lives and property in the coastal areas; and (v) widespread arsenic contamination of groundwater. With the dense population and high poverty incidence, water management is further complicated by diverse interests among traditional livelihood activities of the rural poor including agriculture, fisheries, transportation, industries, and water supply, with which poverty is deeply associated. Water is also essential for the country’s vulnerable natural ecosystems. Hence it is paramount for the country to manage this critical resource in an integrated and strategic manner ensuring stakeholder participation.
2. The National Water Resources Council (NWRC), chaired by the Prime Minister, is the highest authority governing water resources management. The key agencies include the Water Resources Planning Organization (WARPO), which is responsible for policy formulation and macrolevel planning and coordination; the Bangladesh Water Development Board (BWDB),1 responsible for water resource projects exceeding 1,000 hectares (ha) of command area and hydrology monitoring; and the Local Government Engineering Department (LGED), responsible for projects below 1,000 ha.2 In general, there is a dire need for sound and integrated water resources management; however, the country’s sector policies and institutional framework and capacities have been unable to meet the diverse challenges effectively. Key institutional issues include (i) weakness in participatory, integrated, and strategic planning; (ii) lack of agency capacity to implement water resource interventions with sufficient support to participatory processes while ensuring the quality of outputs; (iii) lack of coordination in delivering necessary support services to achieve intended economic benefits in agriculture and fisheries; (iv) deficient operation and maintenance (O&M) due to lack of beneficiary participation and chronic shortage of funds for O&M; and (v) insufficient operational transparency and accountability.
B. Government’s Policy, Strategy, and Reform Initiatives
3. In 1995, the Government launched a major initiative toward establishing a sound policy, planning, institutional, and legal framework for the sector. The critical need was recognized after the outcome of the Flood Action Plan (FAP) studies and pilot projects, which involved coordinated assistance from 16 external funding agencies including ADB between 1990 and 1995. Accordingly, the National Water Policy (NWP) was prepared and approved in 1999. It
1 Under the policy guidance of the Governing Council, BWDB is headed by a director general (DG) and comprises five departments (finance, administration, planning, and two operation and maintenance [O&M] divisions). Field- level operations are executed by its 60 hydrological division offices across the country through their subordinate sub-divisional offices, which are under 19 superintending engineers, seven chief engineers, and two additional DGs for O&M. There are 1,016 class I posts (mostly engineers and account staff, and a small number of non- engineers) and 7,844 other posts. 2 LGED is responsible for all types of local government infrastructure, including rural roads. It is headed by a chief engineer (CE) at its headquarters having two additional CEs and six subject matter superintending engineers for technical backstopping and quality control. Projects are executed by its 61 district-level executive offices through 465 subdistrict offices placed under 10 superintending engineers. There are 9,628 posts.
26 Appendix 2 established the sector goals and guidelines to effectively manage these critical resources, and adopted the principles of integrated water resources management (IWRM) with emphasis on stakeholder participation, strategic planning, decentralization, sound management of social and environmental issues, sustainable O&M through management transfer to water management associations (WMAs), and autonomy, transparency, and accountability of sector institutions. BWDB institutional reforms have made certain progress, including (i) restructuring of the board of directors into a governing council that includes stakeholder representatives to decide on policy issues; (ii) long-term assignment of leadership; (iii) staff rationalization (from 18,032 to 8,860 between 1999 and 2006); and (iv) diversification of the skills mix to increase non- engineers such as agronomists, fishery and environment specialists. LGED has also established an Integrated Water Resources Unit while strengthening the skills mix to meet the diverse socio-environmental needs of the stakeholders. On the legal and regulatory side, a national water act under preparation will comprehensively govern the use and management of water. Guidelines for participatory water management (GPWM) have been finalized, stipulating management transfer and for local participation arrangements in water resources schemes.
4. The Government also prepared and approved in 2004 a national water management plan (NWMP), which provides a framework for short-(5 years), medium-(10 years), and long-(25 years) term strategy and priority programs. Building on the NWP, the NWMP established eight focal agendas3 and identified 84 national-level programs proposed for implementation over the next 25 years. In the short term, it heavily focuses on institutional development and an enabling environment, along with critically urgent investment programs. Building on the NWMP, the Government’s National Strategy for Economic Growth, Poverty Reduction and Social Development (March 2003), or interim poverty reduction strategy paper, prioritized (i) promoting rational management and optimal use of water resources; (ii) improving the quality of life by ensuring equitable, safe, and reliable access to water for production, health and hygiene; and (iii) ensuring availability of clean water in sufficient quantities for multiple uses, and preserving the aquatic and water-dependent ecosystems. Investment priorities specified for the rural water resources sector include (i) saving properties and lives by controlling river erosion, monsoon flooding, and saline water intrusion; (ii) improving irrigation and reducing drainage congestion, and mitigating drought by reexcavating canals and watercourses; (iii) rationalizing existing projects while promoting stakeholder participation and multiple uses of flood embankments; and (iv) mitigating the impacts of arsenic contamination of groundwater.
C. ADB’s Experience and Activities of Other Development Partners
5. The Asian Development Bank (ADB) has provided 33 technical assistance and 19 loan projects amounting to $20 million and $675 million, respectively, since 1977. Recent assistance after 1995 has increasing focus on improving the policy and institutional environment in support of the development of critical infrastructure; drainage improvement in coastal areas; improvement of large-scale flood control, drainage/irrigation (FCD/I) schemes; application of lower cost erosion mitigation in major rivers to protect agricultural lands; and stakeholder-driven small-scale water resources infrastructure. Performance has been generally mixed–large-scale projects had faced weak stakeholder participation and O&M, although there are signs of improvement along with the progress of BWDB reforms. On the other hand, small-scale interventions executed by LGED has been more satisfactory, having developed an increasing number of well-performing schemes with sound WMA management.
3 Including (i) institutional development, (ii) enabling framework, (iii) main river development, (iv) towns and rural areas, (v) major cities, (vi) disaster management, (vii) agriculture and water management, and (viii) natural environment and aquatic resources.
Appendix 2 27
6. ADB has played an important role in promoting the recent sector reforms, in cooperation with other development partners. Specifically, ADB’s assistance for small-scale water resources development encouraged the Government to decentralize such schemes to local governments and WMAs, which step was adopted as a key principle of the NWP. The WMA legal framework was established through an amendment of the Cooperatives Act. Its procedures and arrangements were also used as a model followed in the GPWM. The ongoing assistance for mitigating river erosion also aims to establish a leading model to apply key NWP principles, including cost recovery in irrigation O&M, and a transparent and accountable joint management framework among BWDB, local governments, and WMAs. The impacts of ADB investments have also been positive, resulting in increased agricultural production and livelihood security from natural disasters such as floods, although they were less than anticipated at appraisal in general and call for more effective integration with other essential support services such as agriculture and fisheries extension. Environmental impacts were evaluated as either benign or positive, but the early projects that substantially altered floodplain regimes had negative impacts on open water fisheries despite large agricultural benefits and livelihood security.
7. The World Bank has provided 27 loans amounting to about $1.045 billion. Recent assistance focused on the preparation of the draft NWMP, rehabilitation of medium- to large- scale coastal embankments and of inland FCD/I schemes, and riverbank protection along the right bank of the Jamuna River. Significant emphasis has been placed on policy dialogues for preparing the NWP, and reforms in the organizational structure of BWDB. The World Bank is in the final process of approving the Water Management Improvement Project (WMIP), which aims to assist further institutional reforms of WARPO and BWDB with capacity development, and to improve the existing medium- to large-scale FCD/I schemes while establishing WMAs that will take over the O&M of smaller facilities from BWDB, though a sector project modality.
8. The Government of the Netherlands has also been a major development partner in the sector since 1975. Recent efforts have substantially increased emphasis on policy and institutional development while supporting three strategic subsectors: (i) socioeconomic and environmental restoration of the Ganges-dependent area, (ii) integrated coastal zone planning and management, and (iii) small-scale water resources development in partnership with ADB. A major contribution being provided is to jointly develop and implement a 5-year action plan to further BWDB reforms in seven key agendas, through a twinning arrangement with the concerned ministry in The Hague. The action plans have provided a common and practical framework to improve the organizational management of BWDB, and are now pursued in all ongoing and planned assistance by external funding agencies. The Government of the Netherlands is also to provide cofinancing to WMIP and the proposed Project, and is also promoting further expansion of the action plan to install sound planning, prioritization, and management systems beyond which a sectorwide program approach of support is envisaged.
D. ADB’s Strategy
9. Over the last 5 years, Bangladesh has put in place a sound NWP, prepared a draft 25- year NWMP, and initiated organizational reforms of the key sector institutions. The country has thus entered into a phase of consolidating the reform efforts to effectively institutionalize improved policy, planning, and institutional frameworks into sound sector operations.
10. Under the circumstance, ADB’s sector strategy is to support the Government’s efforts in that direction. Specifically, ADB will support further development of sound policies and institutional framework, and the capacities and management systems the sector institutions to implement the framework. The aim will be to implement integrated water resources planning
28 Appendix 2 and management, and sustainable service delivery, with decentralization and stakeholder participation and empowerment including O&M contribution. Emphasis will also be on strategic planning and coordinated delivery of essential services (such as agriculture and fishery extension) to ensure the intended benefits, and addressing the concerns of the poor in water sector interventions. Support for critical investments is provided following the NWMP priorities, and demonstrated progress of essential reform actions and their operations. During this process, particular attention will be paid to strengthen partnership among the Government, external funding agencies, and the private sector including nongovernment organizations (NGOs) and stakeholders. More specific agendas and the strategy of ADB’s water sector assistance are as follows.
1. Policy and Institutional Reform
11. Policy and institutional reform, and its full implementation are the major focus of ADB’s support for the water resources sector. ADB’s assistance in the reform process is given in a progressive manner based on agreed-on goals, and with emphasis on national ownership of the reform process. Issues to be pursued include the following: (i) Improving the policy, planning, and legal framework. While the NWP and NWMP provide an effective framework for IWRM and sustainable service delivery, progressive improvements are needed, with regular sector operational review. Likewise, a comprehensive national water act is awaited, in which appropriate regulatory institutions for managing water quantity and quality should be defined. (ii) Fostering IWRM and water conservation. Issues include (a) establishing an institutional framework for IWRM including integrated planning, water quantity and quality management including affluent disposal standards, and floodplain zoning; and (b) improving guidelines such as GPWM and those for environmental examination. (iii) Improving service delivery and sustaining O&M. Issues include (a) operating institutional mechanisms for management transfer and local O&M financing; (b) defining effective roles of local governments in this context; (c) further developing an appropriate WMA institutional modality, including a legal framework; and (d) improving budgetary management mechanisms for sound O&M performance. (iv) Improving governance. Issues include (a) enhancing transparency and accountability in agency operations; (b) strengthening anticorruption efforts with enhanced internal and external quality control for infrastructure and other services; and (c) improving the regulatory framework of WMA management to provide annual social, technical, and financial audit.
2. Investments
12. Investments in software and hardware will be guided by the following considerations. (i) Integrated water resources planning and management. Following the NWP and the NWMP, support will be provided for integrated water resources planning at local levels and priority investments identified, with necessary measures to ensure their sustainable O&M, and focus to meet the needs of the poor and the vulnerable.4 (ii) Small-scale water resources development. Support for further consolidation of small-scale interventions will be prioritized, with added attention to their strategic implementation following subregional plans, and delegation of increasing power of project operations to local governments, with further reorganization of LGED.
4 In this context, assistance for rural mitigation of arsenic in groundwater is also considered, to promote the identification and adoption of water supply options.
Appendix 2 29
(iii) Improvement and management transfer of BWDB’s FCD/I schemes. This thrust is supported building on the lessons in small-scale schemes, and strengthening WMA for sustainable O&M. Support for irrigation schemes is contingent on the sound progress of O&M cost recovery in ongoing projects.
E. Implications for the Present Project Design – Implementing Policy Framework with Capacity Strengthening
13. Following the sector strategy, the proposed Project is designed to meet the critical investment thrusts in selected subregions in the southwest area by building on and furthering the policy and institutional reforms (specific actions are in Appendix 5). Despite the progressive development of the policy and institutional framework in recent years, however, there is still a wide gap between the framework and individual sector agency operations, calling for careful capacity strengthening support to address the critical weaknesses as pointed out in paragraph 2, viz., agency capacities to implement the improved framework are still at the early stages of development. Accordingly, the following specific measures are pursued under the Project–with intensive support by the consultants–to institutionalize them within BWDB: (i) Participatory and coordinated planning and implementation. In each scheme, a joint management committee (JMC) will be formed with the assigned staff of BWDB, line departments, LGIs, and WMAs. At the outset, an integrated water management plan (IWMP) and individual subunit implementation plans (SIPs), prepared with consultant support, will set out clear program schedules, institutional responsibilities, and output targets.5 Those plans and their periodic work plans will be endorsed by JMC and its SIP subcommittees, particularly the concerned WMAs, based on which specific programs will be delivered through the designated agencies following the IWMP and SIPs. (ii) WMA strengthening and sustainable O&M. To address critical managerial and resource constraints in BWDB, WMAs will be formed and strengthened by engaging local community organizers and NGOs trained through the consultants. To ensure sufficient WMA development and attention by agency staff, WMAs will have to achieve specific institutional development targets as set out in the SIPs at preconstruction stage, including enrollment by over 70% of beneficiary farmers, full achievement of financial contribution to establish an O&M reserve fund, and genuine organizational management. WMAs will be trained in system operation, and monitoring, planning, and implementing maintenance works with O&M fund replenishment. Sustainability of scheme-level O&M will be attained through generic policy and operational measures which are being pursued with other externally assisted programs and to be operated nationwide. (iii) Monitoring and quality control. The subproject management office (SMO) will regularly hold progress review meetings with the JMC and its subcommittees with the participation of the concerned WMAs, which are designated to monitor and confirm the quality of the delivered services. For quality control purposes, the SMO will duely record and report on subproject progress that is monitored and audited by the project management office, in the light of the IWMPs and SIPs that specify clear input, process, and output indicators and targets. Along with these, an external performance and technical audit will be undertaken through the Office of the Comptroller and Auditor General.
5 A generic memorandum of understanding will also be established between BWDB and line departments to specify the collaboration sought from the latter and specific resources provided through BWDB.
30 Appendix 3
EXTERNAL ASSISTANCE TO RURAL WATER RESOURCES MANAGEMENT (after 1995)a Funding Amount ($million) Project Title Year Source Grant Loan ADB Southwest Area Water Resources Management Study b 3.8 – 1991 Southwest Area Water Resources Development c 0.3 3.2 1993 Small-scale Water Resources Development Sector – 32.0 1995 Command Area Development – 30.0 1995 Flood Damage Rehabilitation d – 20.0 1998 Southwest Flood Damage Rehabilitation d – 13.2 2000 Second Small-scale Water Resources Development Sector – 34.0 2001 Jamuna-Meghna River Erosion Mitigation – 42.2 2002 Emergency Flood Damage Rehabilitation d – 31.8 2005 Canada Kalni-Kushiyara Community Development 1.8 – 1997 Modernization of BWDB's Accounting Phase II 1.7 – 1997 Dampara Water Management 2.9 – 1998 Modernization of MOWR Financial Management 2.2 – 1999 Environmental Monitoring Information Network 3.7 – 2003 Denmark Flood Forecasting and Warning 3.2 – 2000 Germany Riverbank Protection and Training Phase II 2003 Japan Narayanganj Narsingdi FCDI Phase III Study 0.3 – 1998 Netherlands Small-scale Water Resources Development Sector 6.8 – 1996 Meghna Estuary Study 7.5 – 1996 Environmental GIS Support Phase II 7.6 – 1997 Gorai River Restoration 45.0 – 1998 Char Development and Settlement Support Phase II 9.0 – 1998 Second Small-scale Water Resources Development Sector 24.3 – 2001 Integrated Coastal Zone Management Program 1.9 – 2001 Integrated Planning for Sustainable Water Management 34.6 – 2003 Water Management Improvement e 20.0 – 2005 United Kingdom Integrated Coastal Zone Management Program 1.9 – 2001 World Bank Riverbank Protection – 121.9 1996 Coastal Embankment Rehabilitation – 53.0 1996 Gorai River Restoration – 3.0 1998 Coastal Embankments (supplementary) – 16.5 1999 Riverbank Protection (supplementary) – 45.0 1999 Water Management Improvement e – 81.5 2005 – = not available, ADB = Asian Development Bank, BWDB = Bangladesh Water Development Board; FCDI = flood control, drainage and irrigation; GIS = geographic information system; MOWR = Ministry of Water Resources. a Except for those relevant to the present Project. b Regional study under the flood action plan. c A technical assistance loan that undertook feasibility studies of seven flood control and drainage/irrigation schemes including Chenchuri Beel and Narail subprojects. The loan was closed in March 1998 with the utilized amount of $0.95 million. d Emergency rehabilitation assistance (rural water management component).
Appendix 4 31
INCORPORATION OF LESSONS LEARNED Lessons Learned from ADB-Assisted Projects Incorporation of Lessons Learned A. Policy-Related Issues -- Fundamental reform of water sector institutional frame- -- The Project builds on recent reforms including 1999 NWP work is essential for enhancing the sector operational and BWDB reorganization, and further agreed-upon actions impacts (CAPE), to which project implementation should (Appendix 5) to operationalize these reforms, with advisory be conducive. (BWSR, SSWR) support provided by the consultants. B. Project Institutions (i) BWDB -- BWDB’s resources, capacity, and staff commitment for -- BWDB is finalizing an institutional strategy to envision them beneficiary participation need strengthening, along with as service providers. The Project will engage CBOs and their capacity to address poverty and the social agenda. NGOs to facilitate WMA strengthening, with consultancy (BWSR, SWAI) support to address poverty and social agendas. -- Monitoring and quality control systems need rigorous -- Pursued through (i) stringent subproject procedures with attention to ensure quality outputs. (CAPE, BWSR, process-wise targets; (ii) due process management SSWR, SWAI) (recording, reporting, and auditing); (iii) WMA endorsement and monitoring of outputs; and (iv) external auditing. -- BWDB’s O&M management remains weak (all reports), -- The Project pursues, with other externally assisted projects, calling for sufficient monitoring of existing scheme (i) setting up MIS for scheme O&M monitoring and performance, sufficient budget for BWDB, and stringent planning; (ii) performance-based budget management; and fund management among schemes. (SWAI) (iii) commensurate increase in budget allocation. -- Coordination with providers of agricultural and other -- MOU between agencies will be signed upon Project start. It services remains an issue (SWAI). This should be will also ensure joint preparation of IWMPs and SIPs confirmed at the planning stage with concrete scope of stipulating specific activities, schedule, and institutional support activities and required resources. (SSWR) responsibilities, to culminate into the IA. (ii) DAE and DOF -- Despite technical capacity, DAE and DOF staff skills in -- The Project will form extension groups within WMAs. It will dissemination remain insufficient, and staff may not be also use qualified local NGOs and private providers as readily available. (SSWR, SWAI) necessary, with capacity development support. (iii) LGIs -- The involvement of LGI representatives remains minimal -- LGI representatives will support IWMP and SIP despite their capacity and role to mobilize beneficiaries, preparation, and WMA formation and follow-on and needs to be enhanced. (SWAI) implementation through facilitation and guidance. (iv) WMAs -- It is possible to form viable WMAs, but this requires -- WMAs are required to achieve institutional development engaging key beneficiaries (e.g., large farmers), local targets meeting the specified conditions before signing an leaders, as well as those representing diverse interests, IA and receiving hardware and software. with due external monitoring. (SSWR, SWAI, SES) C. Managing Subproject Development Cycle (i) General -- Stakeholder involvement should be an integrated part of -- Reflected in all the subproject implementation stages, water resource development in all stages of subproject entrusting due decision making authority to them, and with cycle, and their participation be ensured. (All reports) monitoring and quality control. (ii) Planning (for IWMPs and SIPs) -- Planning should reflect diverse stakeholder interests, and -- IWMPs and SIPs will be prepared with due consideration of other development and environmental concerns (SSWR, the lessons, with sufficient time and resources, and BWSR). Realistic targets should be set for cropping capacity-strengthening support. intensities and yields. (SSWR, BWSR) (iii) WMA Strengthening -- Sufficient time and resources should be provided in -- Supported with the engagement of CBOs and NGOs organizing WMAs. Sound institutional basis should be trained by consultants. WMAs will achieve set institutional established before initiating physical works. (All reports) targets before signing IAs or start of physical works. -- The approach of seeking up-front cash contribution from -- Operated in all subprojects, requiring WMAs to contribute beneficiaries is sound, which should be kept as O&M an amount equivalent to annual O&M requirements. reserve fund in lieu of capital cost contribution. (SSWR) (iv) Water Management and Associated Infrastructure -- Although BWDB has satisfactory engineering capacity, -- Quality assurance will be enhanced by (a) information quality control remains an issue, particularly in disclosure (including expenditures); (b) stringent recording underwater works. Sufficient monitoring and auditing are and reporting by SMO staff; (c) construction monitoring by essential for construction quality assurance. (BWSR) WMAs; and (d) internal and external technical auditing.
32 Appendix 4
Lessons Learned from ADB-Assisted Projects Incorporation of Lessons Learned (v) Agriculture, Fishery, and Livelihood Development -- A concerted effort is needed to improve productivity -- Required support services and arrangements for their through a comprehensive package of agriculture support provision will be elaborated in the SIP, agreed to by including extension, inputs, and marketing based on concerned parties, and duly provided. WMAs will be trained careful analysis of local conditions. (SWAI) to undertake in-house extension activities. -- The Project should fully utilize opportunities for poverty -- This has been incorporated as key activities of the reduction (SSWR, NEMP) including leasing of public livelihood enhancement subcomponent. water body and embankment lands. (BWSR, SWAI) (vi) Sustainable O&M -- WMA commitment, ability, and leadership are essential -- WMA responsibilities for jointly managed as well as for effective O&M. Its requirements and responsibilities transferred facilities are reflected in the project design, and should be clearly agreed upon during appraisal (CAPE), agreed on with individual WMAs at preconstruction stage with up-front cash contribution (SSWR). with cash contribution. -- WMAs should be sufficiently trained for annual O&M with -- A specific subcomponent has been included to ensure this preparation and implementation of O&M plans (SSWR, in individual WMAs before subunit implementation is SWAI), with comprehensive on-the-job training, and completed, by setting out specific indicators in the project- sufficient commissioning period (IISP). specific MIS for O&M and confirming target achievements. -- Supervision of WMAs with annual technical, social, and -- This will be operated through DOC’s annual audit financial audit with necessary support should be provided complemented by performance monitoring by SMOs, for with sufficient resources (SSWR). which the consultants will provide training. D. Overall Project Management -- GPWM provides effective arrangements for participatory -- IWMP/SIP will set out specific targets for each stage of scheme development and management. Effective implementation cycle, which are monitored through regular compliance at the field level should be ensured (SSWR). SMO-WMA meetings and confirmed by PMO. -- The number of subprojects under implementation should -- The number of subunits in each SMO will be limited be carefully managed in light of available human considering capacities, performance, and resources. resources and capacities of the project agency. (SSWR) Outsourcing will also be arranged. E. Other Supporting Organizations (i) NGOs and CBOs -- NGOs need to be duly trained to effectively support WMA -- NGOs and CBOs engaged will be duly trained by the development (SSWR). They may hire CBOs instead of consultants for WMA formation. Experienced NGO staff will mobilizing their staff, and develop CBO capacity to also be fielded in SMOs to support agriculture, fishery, and provide permanent WMA support. (SSWR, IISP) livelihood support activities. (ii) Private Sector Firms and Contractors -- Private sector firms have capacity to undertake feasibility -- Preparation of SIPs will in principle be outsourced to private studies, with due support for socioeconomic analysis and sector firms, with technical inputs provided by SMO and line agriculture and fishery programming (SSWR). department staff and guidance by the consultants. -- Duly selected contractors have sufficient capacities, but -- (Please see C (iv) for arrangements to ensure quality of effective monitoring is needed to ensure quality. (SSWR) construction.) (iii) Consultants for Capacity Development -- Careful design is needed to institutionalize the -- The consultants will focus on on-the-job training of EA staff participatory project processes within the EA in lieu of to manage the process of achieving the predefined targets managing the project on behalf of the EA, with careful at each step of the subproject/subunit cycle through their monitoring. (SSWR, IISP) own staff and outsourcing arrangements. ADB = Asian Development Bank, BWDB = Bangladesh Water Development Board, CBO = community-based organizer, DAE = Department of Agriculture Extension, DOC = Department of Cooperatives, DOF = Department of Fisheries, EA = executing agency, IA = implementation agreement, IWMP = integrated water management plan, LGI = local government institution, MIS = management information system, MOU = memorandum of understanding, NGO = nongovernment organization, NWP = National Water Policy, O&M = operation and maintenance, PMO = project management office, SMO = subproject management office; SIP= subunit implementation plan, WMA = water management association. Sources: BWSR = ADB. 2004. Bangladesh Water Sector Review. Manila; CAPE = ADB. 2003. Country Assistance Program Evaluation for Bangladesh. Manila; IISP = ADB. 2001. Project Performance Audit Report on the Integrated Irrigation Sector Project in Indonesia. Manila, NEMP = ADB. Project Performance Audit Report on the Northeast Minor Irrigation Project in Bangladesh. Manila; SES = ADB. 2004. Special Evaluation Study on Effectiveness of Local and Private Sector Participatory Approaches in Rural Development Projects. Manila; SSWR = ADB. 2003. Project Completion Report for Small-Scale Water Resources Development Sector Project (July 2004). Manila; SWAI = Evaluation of ADB Sector Projects under ADB. 2003. Technical Assistance to the People’s Republic of Bangladesh for Preparing the Southwest Area Integrated Water Resources Management Project. Manila.
POLICY AND INSTITUTIONAL ACTIONS Key Issues and Actions Actions by Action Target 1. Policy and Plan Framework MOWR to form an advisory group and initiate the following, with ADB’s regional TA facilities from WCF MOWR Within 1 year of loan and other available programs.a effectiveness (LE) a. National Water Policy: Finalized in 1999. To review the progress and gaps of implementation, in MOWR, WARPO Review done within 2 years terms of legal and institutional framework and operations, and define further actions. of LE b. NWMP: Finalized in 2004. To operate the process of annual review and advice on implementation WARPO Operate review within 2 progress as inputs to annual and medium-term budgetary process. years of LE 2. WARPO: Organizational Development Organizational Development Strategy: Finalized by setting out appropriate mandates in light of the WARPO, MOWR Within 2 years of LE National Water Policy and consistent with the present Project. To prepare an organizational development plan and start implementing the strategy, including the clearinghouse role (a review and confirmation process with respect to water resources projects as envisaged under the National Water Policy), with the support of the TM. 3. BWDB: Organizational Development 3.1. BWDB Reorganization Plan 1999 and BWDB Act 2000 Steps have been taken to (i) establish a governing council including stakeholder representatives as a BWDB, MOWR Review done within 1 year policy-making body, (ii) rationalize staff from 18,032 to 8,860 by 2006, and (iii) diversify skills-mix, of LE among others. To undertake comprehensive performance review with TM and ADB (through the WCF) support to assess progress, lessons, and gaps needing for further actions. 3.2. Actions for Operationalizing NWP within BWDB a. Five-Year Strategic Plan and TM Task Force Action Plans (TFAPs) Draft FYSP prepared (envisaging transformation into service agency as opposed to implementer) BWDB FYSP finalized within 1 year encompassing seven TFAPs. To finalize the FYSP and maintain dialogues to follow up on of LE. FYSP and TFAPs implementing TFAPs, in particular those specified below. regularly reviewed b. Human Resources Management (i) HR Development Strategy: To prepare effective strategy for manpower planning and management, BWDB By MTR career development, and improved knowledge and skills, setting out effective principles for recruitment, skills development, job rotation, and promotion, with TM and ADB’s WCF support. (ii) Capacity Development Plan: To review and update the existing capacity development plan BWDB By MTR comprehensively, including technical and nontechnical aspects. c. Organizational Management (i) Internal Quality Control: To operate and regularly refine the QC system defined under the Project, including improved construction QC, and integrated financial, physical, and institutional progress BWDB Immediately after LE. QC management. To issue guidelines to operate improved construction QC system across BWDB. guidelines issued and
(ii) Establishment of Planning Functions at Zonal Level: To deploy necessary planning staff as a zonal operated by MTR 5 Appendix focal planning unit. BWDB By Project completion (iii) Delegation of Financial and Administrative Power: To improve existing regulations to allow sufficiently decentralized financial and administrative management following the PPR 2003. BWDB Within 1 year of LE
33
a The advisory group will support and advise on activities in 1, 2, and 3.1, and 3.2.a in the table.
Key Issues and Actions Actions by Action Target 34
3.3 Operating Decentralized Water Management 5 Appendix a. GPPM and WMA Legal Framework: GPWM finalized in 2000 adopting cooperative legal framework BWDB, LGED, WARPO, Review within 1 year of LE amended for this purpose, to be fully operated under the Project. To review performance and assess MOWR, MLGRDC further options and actions, with the support provided under SSWRDSP2. b. Joint Management Committees and Management Transfer in medium/large FCD/I. Specific Same as above Review by MTR arrangements clarified in the context of the Project, for full operation. To review performance intensively at MTR for further refinement. c. Responsibilities of supporting small subsystems within medium/large FCD/Is: Draft MOU between BWDB, LGED Finalized prior to loan BWDB and LGED to support effective coordination in identifying, planning, and implementing smaller negotiations subsystems has been prepared. d. Leasing of public water bodies behind WMA-controlled structures to WMAs: Draft MOU between MOWR, MOL Finalized prior to loan MOWR and MOL to operate this arrangement has been prepared. negotiations 3.4. Improving O&M Sustainability a. Improving O&M Budget Management (i) Introducing MIS for O&M Performance Monitoring and Planning: MIS design finalized, comprising BWDB Implementation started scheme inventories, monitoring system of O&M performance and of maintenance needs. Draft within 2 years of LE implementation plan prepared. To fully operate the MIS. (ii) Introduction of Performance-based O&M Budget Management within BWDB: Draft framework for BWDB, MOWR Draft framework prepared. performance-based budget allocation prepared, with indicators including institutional performance of Guideline finalized and WMAs and their O&M participation as a key criteria for prioritized allocation. To finalize and operate operated by MTR the guideline. b. Enhancing O&M Budget Allocated for BWDB Following the Prime Minister’s directive on full maintenance funding in 2003, the maintenance budget FD, MOWR, BWDB Satisfactory MTEF finalized increased from Tk1.5 billion to Tk2.2 billion in FY2004–06. MOWR’s MTEF to at least maintain this by June 2006 trend, with inclusion of above measures in 3.4.a. c. Actions for Saving Recurrent Expenditure or Enhancing BWDB Revenue (i) Saving Expenditure: Staff reduction by 50% ongoing. The Project to include use and maintenance of BWDB, LGED MOU finalized prior to loan embankments as LGI roads. Nationwide collaboration between LGED and BWDB being stipulated in negotiations MOU in 3.3.c above, and achievements reported in BWDB annual report. (ii) Revenue Enhancement: Irrigation service fee introduced following BWDB Act of 2000 to allow BWDB, DOF Ongoing. Regularly schemes to retain collected fees for O&M. To enhance efforts to increase collection, to be reported in reviewed BWDB annual report. To continue other measures including (i) leasing BWDB water bodies to DOF and WMAs; and (ii) leasing BWDB lands to WMAs. 4. External Performance and Technical Auditing a. Performance Auditing: OCAG is establishing performance auditing division with a prepared OCAG Operate performance performance audit manual. To operate performance audit under the proposed Project. auditing by MTR b. Technical Auditing: To undertake pilot demonstration of technical auditing in the Project with support OCAG By MTR of consultants. Disseminate its effectiveness and prepare action plans for its introduction. ADB = Asian Development Bank, BWDB = Bangladesh Water Development Board, DOF = Department of Fisheries, FCD/I = flood control and drainage/irrigation, FD = Finance Division, FYSP = 5-year strategic plan, GPWM = guidelines for participatory water management, HR = human resources, LE = loan effectiveness, LGED = Local Government Engineering Department, LGI = local government institution, MIS = management information system, MLGRDC = Ministry of Local Government, Rural Development and Cooperatives, MOL = Ministry of Land, MOU = memorandum of understanding, MOWR = Ministry of Water Resources, MTEF = medium-term expenditure framework, MTR = midterm review, NWMP = National Water Management Plan, NWP = National Water Policy, O&M = operation and maintenance, OCAG = Office of Comptroller and Auditor General, PPR = Public Procurement Regulation, QC = quality control, SSWRDSP2 =Second Small-scale Water Resources Development Sector Project, TA = technical assistance, TFAP = task force action plan, TM = twinning mission, WARPO = Water Resources Planning Organization, WCF = Water Cooperation Fund, WMA = water management associations.
COST ESTIMATES AND FINANCING PLAN Table A6.1: Project Cost Summary (Taka '000) ($ '000) FX BC Item Local Foreign Total Local Foreign Total (%) (%)
A. IWMP Preparation 19,827 26,100 45,927 330 435 765 57.0 2.0 B. Productive Water Management through IWMP Implementation 1. SIP Preparation and Beneficiary Mobilization 69,140 5,920 75,060 1,152 99 1,251 8.0 3.0 2. Water Management Infrastructure a. Land Acquisition and Resettlement 173,890 0 173,890 2,898 0 2,898 0.0 8.0 b. Design and Construction Supervision 18,000 0 18,000 300 0 300 0.0 1.0 c. Water Infrastructure Civil Works 758,609 283,311 1,041,920 12,643 4,722 17,365 27.0 48.0 d. Upgrading Rural Roads 52,193 28,104 80,297 870 468 1,338 35.0 4.0 Subtotal 1,002,692 311,415 1,314,108 16,712 5,190 21,902 24.0 60.0 3. Agriculture, Fishery, and Livelihood Support a. Agriculture Extension 59,855 690 60,545 998 12 1,009 1.0 3.0 b. Fishery Extension 56,255 690 56,945 938 12 949 1.0 3.0 c. Livelihood Enhancement 49,555 1,380 50,935 826 23 849 3.0 2.0 Subtotal 165,665 2,760 168,425 2,761 46 2,807 2.0 8.0 4. Sustainable O&M Support a. O&M Training 25,040 1,260 26,300 417 21 438 5.0 1.0 b. O&M During Construction 109,344 36,448 145,792 1,822 607 2,430 25.0 7.0 Subtotal 134,384 37,708 172,092 2,240 628 2,868 22.0 8.0 Subtotal (B) 1,371,881 357,803 1,729,685 22,865 5,963 28,828 21.0 79.0 C. Institutional Strengthening and Project Management 1. Institutional Development 114,643 85,360 200,003 1,911 1,423 3,333 43.0 9.0 2. Monitoring 42,000 4,960 46,960 700 83 783 11.0 2.0 3. Project Management 130,260 33,230 163,490 2,171 554 2,725 20.0 7.0 Subtotal (C) 286,903 123,550 410,453 4,782 2,059 6,841 30.0 19.0 Total Base Cost 1,678,610 507,454 2,186,065 27,977 8,458 36,434 23.0 100.0 Physical Contingencies 86,342 25,572 111,914 1,439 426 1,865 23.0 5.0 Price Contingencies 257,123 0 257,123 4,285 0 4,285 0.0 12.0 Total Baseline Cost 2,022,076 533,026 2,555,102 33,701 8,884 42,585 21.0 117.0 a Interest Charge 0 47,400 47,400 0 790 790 100.0 2.2 6 Appendix Total Project Costs 2,022,076 580,426 2,602,502 33,701 9,674 43,375 22.3 119.0 BC = base cost, FX = foreign exchange, IWMP = integrated water management plan, O&M = operation and maintenance, SIP = subunit implementation plan. a 1% during project implementation period. Source: Asian Development Bank estimates. 35
Table A6.2: Expenditure Accounts by Financiers 36 Appendix 6 Appendix Government of the Government ADB Total FX LC Item Netherlands $'000 % $'000 % $'000 % $'000 % $'000 $'000
A. Civil Works 1. BWDB 2,975 15.7 9,678 51.1 6,294 33.2 18,946 43.7 3,835 15,111 2. Embankment Pavement 242 15.7 786 51.1 511 33.2 1,539 3.5 488 1,050 3. BWDB O&M During Construction 1,508 53.7 787 28.0 512 18.2 2,806 6.5 607 2,199 Subtotal (A) 4,724 20.3 11,250 48.3 7,317 31.4 23,291 53.7 4,931 18,361 B. Construction Materials 611 33.0 752 40.6 489 26.4 1,852 4.3 1,221 631 C. Land Acquisition/Resettlement 3,020 88.8 230 6.8 149 4.4 3,399 7.8 0 3,399 D. Vehicles 303 55.5 147 27.0 96 17.5 546 1.3 232 314 E. Equipment 33 20.0 81 48.5 53 31.5 167 0.4 119 48 F. Consulting Services 1. Integrated Water Management Plan 0 0.0 427 60.6 278 39.4 704 1.6 404 300 2. Implementation Support 71 2.2 1,959 59.3 1,274 38.5 3,305 7.6 1,488 1,817 Subtotal (F) 71 1.8 2,386 59.5 1,552 38.7 4,009 9.2 1,892 2,117 G. Social Mobilization & Facilitation 0 0.0 588 60.6 383 39.4 971 2.2 0 971 H. Training 1. Staff Training 0 0.0 421 60.6 274 39.4 695 1.6 0 695 2. WMA Training a. Management 20 5.0 231 57.6 150 37.4 402 0.9 0 402 b. Agriculture, Fishery, and Livelihood 157 5.0 1,810 57.6 1,177 37.4 3,145 7.2 0 3,145 Subtotal 177 5.0 2,041 57.6 1,328 37.4 3,546 8.2 0 3,546 Subtotal (H) 177 4.2 2,463 58.1 1,602 37.8 4,242 9.8 0 4,242 I. Survey and Investigation 65 4.0 953 58.2 620 37.8 1,638 3.8 215 1,423 J. Project Management 1,859 75.3 369 15.0 240 9.7 2,469 5.7 273 2,195 Total Baseline Cost a 10,864 25.5 19,221 45.1 12,500 29.4 42,585 98.2 8,884 33,701 Interest Charge 0 0.0 790 100.0 0 0.0 790 1.8 790 0 Total Project Cost 10,864 25.0 20,011 46.1 12,500 28.8 43,375 100.0 9,674 33,701 (Duties and Taxes) 2,973 100.0 0 0.0 0 0.0 2,973 100.0 0 2,973 ADB = Asian Development Bank, BWDB = Bangladesh Water Development Board, FX = foreign exchange, LC = local currency, O&M = operation and maintenance, WMA = water management association. a Includes environmental management costs for civil works ($1.59 million), WMA social mobilization and training ($1.40 million), monitoring and evaluation ($0.32 million), project management ($0.41 million), and consulting services ($1.22 million). Source: Asian Development Bank estimates.
ORGANIZATIONAL STRUCTURE
Project Steering Committee Ministry of Water Resources Local Government Division
Subproject Appraisal Sub- BWDB WARPO LGED DPHE Committee Project Coordination Office Coord. Unit IWRM Unit Arsenic Project Coordinator Headed by PSO Headed by SE Coordination [National Level] EE, AO, and other support staff Unit
Project Management Office IWMP Working Line Departments Dist – in BWDB SW Zonal Office Group Office Institutional Strengthening and Project Director DAE, DOC, DOF, DPHE, Project Management Consultants Deputy Chief Extension Officer LGED 4 EEs (Planning, Design, Imple- mentation, and O&M/ M&E) [Zonal/ District Level] DC Agriculture; AC (Fishery); AC (Economics) 6 SDEs (1 planning, 2 design, 2 implementation, and 1 O&M) Community Development Officer Private Design/ Survey 3 AEs (planning, design, and Firms, NGOs implementation) AO and other administrative staff
[BWDB Divisional/Subdistrict Level] Subproject Management Office JMC (Each Subproject) Line Departments (BWDB Sub/Divisional Office) Chair: Subproject Advisor Subdistrict Office [Subproject Advisor (SE)] Members: Federation, DAE, DOC, DOF, DPHE, Subproject Manager (Senior EE) Subproject Manager, Line LGED 2 SDE and 1 AE Department heads, LGI RO (Agriculture/Fishery) Accountant JMC Subcommitees (Each 3-4 SAE/SO subproject subunit) Community Organizer Other Support Staff [Village Union Level] WMA
NGO Facilitator (Agriculture) Federation NGO Facilitator (Fishery) Associations and Groups 4 NGO Facilitators (Social )
7 Appendix AC = assistant chief, AE = assistant engineer, AO = accounts officer, BWDB = Bangladesh Water Development Board, DAE = Department of Agriculture Extension, DC = deputy chief, DOC = Department of Cooperatives, DOF = Department of Fisheries, DPHE = Department of Public Health Engineering, EE = executive engineer, IWMP = integrated water management plan, IWRM = integrated water resources management, JMC = joint management committee, LGED = Local Government Engineering Department, LGI = local government institution, M&E = monitoring and evaluation, NGO = nongovernment organization, O&M = operation and
maintenance, PSO = principal scientific officer, RO = research officer, SAE = sub-assistant engineer, SDE = subdivisional engineer, SE = superintending engineer, SO 37 = section officer, SW = Southwest, WARPO = Water Resources Planning Organization, WMA = water management association.
38 Appendix 8
SELECTION CRITERIA FOR ADDITIONAL SUBPROJECTS, AND PREPARATION AND IMPLEMENTATION OF INTEGRATED WATER MANAGEMENT PLANS
1. The Project includes the preparation (Figure A8) and subsequent implementation of integrated water management plans (IWMPs) in other flood control and drainage/irrigation (FCD/I) schemes, based on a process approach and following the methodology adopted in the Chenchuri Beel and Narail subprojects. Possible schemes are listed in Supplementary Appendix C, and will be reviewed more rigorously before selecting suitable areas for further study. The following criteria will be used in the screening and selection process. (i) The selected schemes should not contain a significant proportion of new works and should fundamentally consist of rehabilitation/upgrading of existing infrastructure and additional works to address a number of internal water management problems. (ii) A scheme that requires minimal and straightforward rehabilitation and improvement works, higher prospects of expanding irrigated areas, and higher economic return will be given preference. In this context, schemes having problems associated with major riverbank erosion and/or with drainage congestion of outer channels will be avoided. (iii) The scheme’s net benefited areas should not be greater than 14,000 hectares (ha). (iv) As an initial economic assessment (in the absence of detailed information), the scheme’s estimated cost should not be in excess of $400/ha of the benefited area. (v) Based on available statistics, the existing poverty level within the scheme should be above the present national average figure. (vi) Beneficiaries’ willingness to form water management associations (WMAs) and assume designated operation and maintenance (O&M) responsibilities is confirmed, and is demonstrated by enrollment of over 70% of the beneficiaries and up-front cash contribution to the civil works cost equivalent to annual O&M cost (1.5% of structures and 3% of earthworks for the facilities to be fully managed by the WMA). (vii) Elaborate IWMP is prepared through a consultative approach stipulating specific program and output targets encompassing WMA institutional development, infrastructure, agriculture and fishery development, livelihood enhancement, and scheme O&M, and arrangements for their implementation including coordination and demarcation of works between the Bangladesh Water Development Board and Local Government Engineering Department. (viii) The subproject must be technically feasible, financially and economically viable with an economic internal rate of return of over 14%, based on the detailed economic and financial analyses undertaken following the sample subproject analysis. The subproject must also be robust under sensitivity and risk analysis. (ix) Works required will not cause any significant adverse environmental or social impact. Adequate environmental mitigating measures must be incorporated into the subproject design. Following the relevant policy of the Government and the Asian Development Bank (ADB), initial environmental examination and environmental impact assessment as applicable will be prepared and cleared by the Government and ADB. (x) The subproject will have no or minimal land acquisition and/or involuntary resettlement impact. In the event that land acquisition is required, resettlement plans will be prepared and implemented following the resettlement framework and sample resettlement plans (Appendix 16).
Appendix 8 39
Figure A8: Synthesis of Sample Integrated Water Management Plans Chenchuri Beel and Narail Subprojects Sectoral Status (2003/04) Key Sectoral Development Constraints
(i) Poverty head count ratio: 56–57% (i) Institutional: accountability problem of public agencies (ii) Per capita agriculture income: Tk2,240–2,580 (ii) Lack of strategic planning, coordination, and (iii) Occupation: 80% engaged in agriculture (as participatory development mechanism primary or secondary occupation) (iii) Lack of coordinated operation and sustainable (iv) Food self sufficiency of average marginal farmers maintenance of water management infrastructure and farming landless: 60–75% (iv) Physical: water related – unreliable flood protection (v) Water resources: 40–50% of land inundated in facilities (degraded embankments, river erosion), canal 1/5 year monsoon (due to internal rainfall, gate siltation, lack of water control structures for timely leakage, and deteriorated embankments); 35– irrigation/ drainage, arsenic contamination, etc. 40% irrigated in winter (STW and LLP); (v) Poor rural roads and marketing facilities occasional salinity intrusion (April–May) (vi) Technical: soil nutrient depletion, lack of quality seeds, (vi) Cropping intensity: 190% lack of effective extension services (vii) Average yield of paddy: 3.1–3.2 tons/hectare (ha) (vii) Social: diversity of stakeholder interests (viii) Literacy: 60% (viii) Environmental: environmental degradation (salinity intrusion, surface water shortage)
Strategy Framework Goals and Principles Key Strategic Thrusts and Approach Goals (i) Institutional: establish local institutions for integrated and participatory - Productive rural economy program delivery and sustainable O&M, operating the set principles. - Enhanced livelihood of the poor (ii) Physical/Technical: productive and sustainable water management: - Sustainability in systems and environment - Intensify monsoon agriculture with (a) improved reliability of flood protection, and (b) water retention in high lands Guiding Principles - Intensify/diversify dry season agriculture with (a) removal of post- (i) Integration – coordination (in planning, monsoon drainage congestion; (b) enhanced water retention for implementation, and system operation) expansion of irrigation and fish culture (using tidal balance) (ii) Accountability and transparency - Promote alternative water supply for arsenic-contaminated areas (iii) Participation – informed decision making, (iii) Coordinated planning/implementation of embankments and rural roads and responsibility sharing in O&M (iv) Deliver agriculture/fishery services to meet critical local constraints (iv) Effectiveness – with defined targets (v) Social/Environmental: ensure poor people’s interests are duly reflected (v) Efficiency – with process management in program delivery and water infrastructure operation (vi) Knowledge-driven – with flexibility (vi) Redress past negative environmental impacts on fishery through fish- friendly gate operation and floodplain stocking (Set out in line with the National Water Policy) (vii) Management: plan and implement program with due input, process and output management under defined targets, and geographical slicing
Plan Framework Targets/Outcome Programs/Process Implementation/Management (i) Poverty reduced by over 10% (i) Participatory planning of SIPs and (i) Programs implementation based (ii) Per capita agriculture income: WMA establishment/strengthening on smaller hydrological subunits increase by over 40% (ii) Water management infrastructure (about 1,000 ha each) (iii) Food self-sufficiency of marginal (iii) Agriculture, fishery, and livelihood (ii) Set up specific program targets in farmers and farming landless: enhancement support SIPs (inputs, schedules, outputs) increase by 20% (iv) Support for sustainable infra- (iii) Informed decision making in JMCs (iv) Cropping intensity: 220% structure O&M: with management and JMC subcommittees (v) Average paddy yield: 3.6 tons/ha transfer/joint management (iv) Progressive implementation by (vi) About 50 WMAs operational, (v) Operational support for integrated confirming process targets are met effectively sustaining O&M and coordinated program delivery (v) Monitoring and quality control with (vii) Subproject JMCs operational and O&M through JMC internal and external auditing effectively sustaining O&M of (vi) Advisory support to institutionalize jointly managed facilities program management (To be set in individual SIPs in detail) (See maps for infrastructure plans)
JMC = joint management committee,PROJECT LLP IMPLEMENTATION = low lift pump, O&M PROCEDURE = operation and maintenance, SIP = subunit implementation plan, STW = shallow tubewell, WMA = water management association.
40 Appendix 9
PROJECT IMPLEMENTATION PROCEDURE IWMP Preparation Process Selection of Candidate Subprojects IWMP Preparation (i) Main works required comprise rehabilitation and (i) Field confirmation of the issues on the left improvement – no significant new works (ii) Initial formulation of ad hoc JMC with participation of line (ii) Simple works not requiring technically complex agencies and LGI representatives analysis such as drainage improvement of outer (iii) Data collection on physical, socioeconomic, and channels and erosion control of dynamic rivers institutional setting (iii) Net benefit area not exceeding 14,000 hectares (iv) Problem assessment on agriculture, fisheries, infra- (ha). structure, and water management (iv) Cost not exceeding $400/ha with EIRR greater (v) Inventory of existing and planned programs than 14% (vi) Participatory rapid rural appraisal at village union and (v) Opportunities for poverty reduction – head count subdistrict levels ratio greater than national average (vii) Identification of priority investment requirements focusing (vi) No major social and environmental issues – no on water and associated interventions potential water disputes (viii) Formulation of IWMP specifying input and output targets (vii) Beneficiaries agree on up-front cash contribution of (ix) Feasibility study of identified interventions stipulated percentage of capital cost as O&M (x) Associated safeguard and other assessments including reserve fund IEE/EIA, resettlement plan, social development plan (viii) No major social and land-related issues (xi) Presentation of IWMP and endorsement by LGI council
Subunit Implementation Plana WMA Beneficiary Mobilization SIP Preparation During SIP Preparation (i) WMA working group established to work with SIP (i) Subunit feasibility confirmation team for SIP preparation (ii) WMA institutional development plan prepared, with (ii) Information campaign on Project and its requirements full land records (iii) Endorsement of draft SIP by general assembly (iii) Infrastructure development plan, including beneficiary contribution targets of WMAs (iv) Agriculture, fishery, and livelihood enhancement After SIP Approval plan, prepared with synergy for other ongoing (i) Start implementing WMA institutional development programs plan with CBOs and NGOs (v) Environmental management plan (ii) Membership enrollment over 70% (vi) Draft resettlement plan (iii) Formal registration under the Cooperatives Act (vii) Endorsement of draft SIP by WMA general (iv) Executive and subcommittee formation assembly (v) Participate in and endorse detailed design and Field confirmation and approval by PMO with beneficiary contribution targets support of the consultants (vi) Concurrence on resettlement plan (vii) Full achievement of beneficiary contribution targets Full achievements of the targets in (ii) – (vii) confirmed by qualified staff
Implementation Agreement Signing Implementation agreement to stipulate schedules, programs, and responsibilities of the concerned organizations to implement SIP – to be signed by heads of SMO and WMA (and possibly other agencies) Concerned WMA officially join WMA federation that participates in JMC
a Implementation of water management infrastructure will be undertaken on the basis of delineated hydrological subunits in principle. As to facilities encompassing more than one subunit (e.g., embankments), they will be implemented on the basis of the progress of the concerned subunit works, except where advance work completion is required, e.g., embankment sections critically degraded or those threatened by river erosion.
Appendix 9 41
Construction of Water Management Infrastructure Preconstruction Construction (i) Implementation of RP with support of NGOs (i) Improved construction supervision including internal (ii) Formation of LCS by WMA with support of NGOs technical audit with strong enforcement rules applied (iii) Tender process of construction work started (ii) WMA monitors construction works (iv) WMA training on construction monitoring and O&M (iii) WMA LCS undertake earthworks (iv) Consultant QC specialist sign off prior to final payment
Agriculture, Fishery and Livelihood Support Infrastructure Completion and O&M Agriculture and Fishery Development Support (i) Agriculture and fishery plans refined with identified (i) Preparation of O&M plan by WMA with trained groups project staff with the consultant O&M specialist (ii) Agriculture extension focus on groups with better (ii) Test run and joint confirmation of the quality of group performance, e.g., beneficiary contribution, infrastructure constructed and small and marginal farmers (iii) On-the-job training for O&M up to full year, in (iii) Fishery extension focus on the poor and women preparing and implementing (a) seasonal operation (iv) Public water body leased to WMA on behalf of fish plans with efficient water management, (b) annual groups who pay fees and contributions maintenance plans with joint walk-through, and (c) (v) Demonstration beneficiaries to repay the cost of resource mobilization plans inputs to WMA as seed money to continue program (iv) WMA establishes O&M reserve fund using up-front (vi) Group leaders trained as WMA extensionist to cash contribution and maintain the fund with disseminate improved technology within WMA appropriate replenishment mechanism (vii) New cropping management with intensification, (v) Close monitoring of status of O&M diversification, seed multiplication, and facilitation of access to market information (viii) May engage NGOs and private providers may be Facility management transfer agreement signed engaged for extension activities between SMO and WMA (for WMA-managed facilities only) Livelihood Enhancement Programs
(i) Programs for the poor, e.g., vegetable gardening for poor women organized (ii) Promote linkage with MFI having access to microcredit facilities (iii) Delivery of subdistrict services for practical knowledge of income generation, e.g., livestock Program completion report stipulating amount of services and impacts submitted to PMO after WMA endorsement
Regular Monitoring for Sustainable O&M Project to maintain annual technical, social, and financial audit of WMA through field project staff, DOC, and engagement of NGOs as necessary SMO maintains the number of subunits under implementation within the stipulated limit, and starts new subproject after completion of all the processes in principle.
CBO = community-based organizer, DOC = Department of Cooperatives, EIA = environmental impact assessment, EIRR = economic internal rate of return, IEE = initial environmental examination, IWMP = integrated water management plan, JMC = joint management committee, LCS = labor contracting society, LGI = local government institution, MFI = microfinance institution, NGO = nongovernment organization, O&M = operation and maintenance, PMO = project management office, RP = resettlement plan, QC = quality control, SIP = subunit implementation plan, SMO = subproject management office, WMA = water management association.
IMPLEMENTATION SCHEDULE 42 10 Appendix Component Year 1Year 2Year 3Year 4Year 5Year 6Year 7
A. Integrated Water Management Plan for Additional Schemes B. Sustainable Water Management Systems 1. Participatory Planning and Beneficiary Mobilization Chenchuri Beel and Narail Subprojects Batch A1 Batch A2 Batch A3 Batch A4 Other Subprojects Batch B1 Batch B2 Batch B3 2. Water Management and Associated Infrastructure Chenchuri Beel and Narail Subprojects Batch A1 Batch A2 Batch A3 Batch A4 Other Subprojects Batch B1 Batch B2 Batch B3 3. Enhanced Production and Livelihood Systems Chenchuri Beel and Narail Subprojects Batch A1 Batch A2 Batch A3 Batch A4 Other Subprojects Batch B1 Batch B2 Batch B3 4. Sustainable Operation and Maintenance Systems Chenchuri Beel and Narail Subprojects Batch A1 Batch A2 Batch A3 Batch A4 Follow-up Other Subprojects Batch B1 Batch B2 Batch B3
C. Project Management Systems and Institutions 1. Project Management Systems 2. Institutional Strengthening with Training and Support 3. Management Information Systems
Source: Asian Development Bank.
Appendix 11 43
INDICATIVE CONTRACT PACKAGES Estimated Number of Mode of Item Total Cost Packages Procurement ($ million) (No.)
1. Civil Works a. Water Infrastructure 15.9 120 LCB b. Riverbank Protection 1.6 3 LCB c. Embankment cum Roads 1.5 7 LCB d. Earthworks (LCS) 4.2 Multiple FA(LCS) Subtotal 23.2
2. Vehicles and Equipment a. Vehicles and Motorcycles 0.5 2 IS and LCS b. Equipment and Furniture 0.2 Multiple LCB c. Construction Materials 1.9 2 ICB and IS d. Supplies 0.6 Multiple LCB Subtotal 3.2
3. Training 3.7 Multiple DC
4. Services a. Consulting Services 4.1 1 (QCBS) b. Surveys and Studies 1.7 5 (QCBS) c. NGO Services 1.4 12 (QCBS) Subtotal 7.2 Total Contracts 37.3 DC = direct contracting, FA = force account, ICB = international competitive bidding, IS = international shopping, LCB = local competitive bidding, LCS = labor contracting society, NGO = nongevernment organization, QCBS = quality and cost based selection. Source: Asian Development Bank.
44 Appendix 12
OUTLINE TERMS OF REFERENCE FOR CONSULTANTS
A. Objective
1. Consulting services for institutional strengthening and project management support (ISPMS) will support the Bangladesh Water Development Board (BWDB), Water Resources Planning Organization (WARPO), and other implementing agencies to fill the critical institutional gaps in delivering the intended project outputs while institutionalizing the process of identifying, planning, implementing, and managing water with the establishment of water management associations (WMAs) from an integrated and cross-sectoral perspective. From the lessons of small-scale water resources development sector projects assisted by the Asian Development Bank (ADB), the ISPMS consultants will have a clear exit strategy and emphasize creating, as their distinct output target, a pool of highly qualified engineering and nonengineering staff who can manage the process with progressively reduced external consultancy inputs. Specific performance targets for individual staff positions will be established and closely monitored during the implementation process. At the same time the consultants will support relevant policy and institutional actions to provide an enabling sector environment. While the project agencies generally have technical capacities to design and construct water management structures, the new mandates of the national water policy (NWP) generally call for changes in the management system and behavior of the agencies, from traditional implementer to genuine service-oriented facilitators. Such changes call for long-term support.
B. Scope
2. The task of the ISPMS consultants include support for (i) preparing a participatory integrated water management plan (IWMP) of further selected flood control, drainage and irrigation (FCD/I) schemes; (ii) strengthening WMAs and joint management committees (JMCs) as viable institutions to sustain and enhance project benefits; (iii) operating an integrated approach of water management to meet diverse stakeholder concerns; (iv) coordinating the delivery of structures and services responding to specific local needs; (v) developing and regularly improving procedures and arrangements for a scheme management cycle from IWMP formulation to sustainable operation and maintenance (O&M); (vi) devising and operating effective management systems for monitoring and quality control of the process and outputs; (vii) identifying and advising on specific policy, institutional, legal and regulatory actions required by the concerned agencies to operate the above functions (Appendix 5); (viii) strengthening the capacity of BWDB, WARPO, and other implementing agencies to meet their new roles with on- the-job support; and (ix) providing project management support with monitoring and quality control. Activities will be closely coordinated with the policy and institutional support provided through the Water Management Improvement Project (WMIP) assisted by the World Bank and the Government of the Netherlands and the twinning missions supported by the latter Government, among other programs.
3. Over the 7-year project implementation period, the ISPMS consulting services are estimated to total 72 person-months of international and 532 person-months of domestic consulting services, costing about of $4.0 million comprising $0.7 million for preparing the IWMPs and $3.3 million for capacity strengthening and management of their implementation.
4. ISPMS consultants will be engaged through a firm in accordance with ADB’s Guidelines on the Use of Consultants and other arrangements satisfactory to ADB for engaging domestic consultants through quality- and cost-based selection procedures. In consideration of the nonengineering complexity and the need for early mobilization, the Government requested ADB
Appendix 12 45 to select the consultants. Table A12 presents the summary of consulting services. Outline terms of reference for the individual specialists are in paras. 5–21. Table A12: Summary of Consulting Services Person-Months Expertise International Domestic
Water resources development specialist–Team leader 32 Water resources specialist – Deputy team leader 70 Participatory water management specialists 18 68 Participatory water management specialist (IWMP) 13 Integrated water resources planner 7 17 Institutional advisor 3 30 Hydrologist 5 River engineer (Morphology) 2 Design engineer 5 Agriculture and extension specialist 40 Fishery development specialist 40 Agriculture economist 3 14 Gender and poverty specialist 35 Environmental specialist 2 34 Resettlement specialist 2 34 Quality control specialist (WMA) 18 Quality control specialist (Infrastructure) 3 35 O&M specialist 56 Financial management advisor 18 Total 72 532 IWMP = integrated water management plan, WMA = water management associations, O&M = operation and maintenance. Source: Asian Development Bank.
5. Water Resources Development Specialist–Team Leader (international). The team leader (TL) will provide overall guidance for all activities of the consultants' team, and will (i) assist in setting up and operating a project information management system that will ensure delivery of quality service and backup to regional and field units while preparing work plans and progress reports; (ii) review and advise on the progress of policy and institutional actions; (iii) assist in outsourcing services to nongovernment organizations (NGOs) and private agents; (iv) review and advise on key outputs such as IWMPs and subunit implementation plans (SIPs); (v) develop and manage the capacity development plan (CDP) for the project staff including local government institutions (LGIs) while establishing and monitoring clear performance targets for individual staff positions; (vi) prepare training programs for project institutions, NGOs, and the private sector; and (vii) coordinate project activities with the concerned agencies and other development projects in the sector.
6. Water Resources Specialist–Deputy Team Leader (domestic). The deputy TL will (i) assist the TL in all aspects of project planning and implementation, (ii) act on behalf of the TL in the TL's absence, (iii) liaise with line agencies involved, (iv) assist in improving the planning and design standards for subprojects, (v) assist BWDB in establishing and operating monitoring and support programs for O&M activities, and (vi) arrange training for the project staff in accordance with CDP.
46 Appendix 12
7. Participatory Water Management Specialists (one international and two domestic). The specialists will (i) support operation of effective participatory procedures and arrangements in the project management system; (ii) assist in selecting appropriate NGOs to support IWMP/SIP preparation and implementation; and (iii) develop training programs, provide training for trainers, and supervise training activities. One domestic specialist will support the participatory process of preparing IWMPs and the other will support their implementation.
8. Integrated Water Resources Planners (international and domestic). Under the guidance of the TL, the specialists will (i) assist the project management office (PMO) planning unit to select appropriate hydrological areas and prepare IWMPs through intensive consultation, (ii) support relevant institutions for IWMP preparation including agency coordination; and (iii) train the staff of the PMO planning unit and other concerned agencies.
9. Institutional Advisor (international and domestic). The consultants will (i) help establish institutional arrangements and procedures for project implementation and effective operation of relevant organizations such as WMAs, JMCs, LGIs, and the collaborative framework of line agencies; and (ii) review and advise on progress and issues relevant to institutional actions to be pursued under the Project (Appendix 5).
10. River Engineer (international) and Hydrologist (domestic). The river engineer will support the preparation of and advise on the monitoring programs for river conditions in the Khulna Jessore Drainage Rehabilitation Project areas. The domestic hydrologist will assist the PMO planning unit to identify and collect hydrological data, undertake hydrological analyses using available models as appropriate, and assess implications of proposed structure works for areas where IWMPs are to be prepared.
11 Design Engineer (domestic). The design engineer will (i) assist in preparing the basic designs for the IWMPs of the schemes to be selected during Project implementation, and (ii) advise on the design process during IWMP implementation.
12. Agriculture and Extension Specialist (domestic). The consultant will (i) liaise with district and subdistrict staff of the Department of Agriculture Extension (DAE); (ii) assist the PMO and subproject management offices (SMOs) to prepare and implement agriculture development programs for IWMPs and SIPs including on-farm water management, integrated pest management, seed multiplication, etc.; (iii) develop and operate agricultural input and benefit monitoring and reporting mechanisms; and (iv) help implement training programs for project agriculture staff, NGOs, and WMA farmer representatives.
13. Fishery Development Specialist (domestic). The consultant will (i) liaise with district and subdistrict staff of Department of Fisheries (DOF); (ii) help assist PMO and SMOs in designing and implementing fishery development programs in IWMPs and SIPs including rice- cum-fish culture, culture fisheries, etc.; (iii) develop and institutionalize fishery input and benefit monitoring and reporting mechanisms; and (iv) help implement training programs for project fishery staff, NGOs, and WMA representatives.
14. Agriculture Economists (international and domestic). The consultants will (i) assist in preparing realistic financial and economic analyses in the IWMP (and SIP) feasibility studies; (ii) develop agriculture and fishery input and benefit monitoring and reporting mechanisms together with the agriculture and extension, and fishery development specialists; and (iii) assist in implementing training programs for project staff and the private firms to be engaged for the feasibility studies.
Appendix 12 47
15. Gender and Poverty Specialist (domestic). The specialist will help PMO/SMO implement the social development strategy and gender action plan. The specialist will (i) identify and analyze poverty and gender-related issues including the special needs of landless and marginal farmers, (ii) develop a process for resolving conflicts during IWMP/SIP preparation and implementation, (iii) implement a strategy and action plan for participation of women, (iv) assist in designing and implementing gender-sensitive livelihood enhancement programs under SIP, (v) design and implement training programs for WMA members to improve their gender equity and participation, and (vi) design and implement the training for the relevant project institutions.
16. Environmental Specialists (international and domestic). The specialists will (i) support the PMO in preparing initial environment examination/environmental impact assessment (IEE/EIA) to be included as a part of additional IWMPs prepared under the Project including consultative process meeting the requirements of the Government and ADB, (ii) help the PMO liaise with the Department of Environment (DOE) regarding environmental clearance and review, (iii) help PMO/SMO establish and operate quality control in implementing environmental monitoring and management plans, (iv) oversee environmental data collection for subprojects, and (iii) prepare and help implement appropriate training programs.
17. Resettlement Specialists (international and domestic). The specialists will (i) assist the PMO in preparing resettlement plans (RPs) for proposed IWMP subprojects; (ii) assist SMO/PMO to refine and finalize individual RPs corresponding to annual construction programs; (iii) prepare and implement training programs for the project staff, private firms (engaged for RP preparation), and NGOs (engaged for RP implementation); and (iv) assist in the initial operation of the procedures and arrangements through field-level monitoring and supervision.
18. Quality Control Specialist (WMA) (domestic). The specialist will (i) help the PMO set up quality control systems to support the institutional development process of WMAs in line with diverse stakeholder interests, (ii) supervising the functioning of these systems, (iii) confirm that sufficient institutional development has been achieved prior to signing of the implementation agreement, and (iv) train PMO/SMO social mobilization staff.
19. Quality Control Specialists (Civil Works) (international and domestic). The consultants will help operate quality control systems of construction activities. The international consultant will (i) review and advise on the construction quality control systems to be operated under the Project, and (ii) support the pilot demonstration of external technical auditing with the Comptroller and Auditor General’s Office. The domestic consultant will (i) monitor tendering and construction activities to ensure effective contractor operation and supervision by the field engineers and WMAs, (ii) sign off on the final contractors bills after inspecting completed structures, and (iii) train project personnel and WMA representatives for sound construction quality control, with the support of the international consultant.
20. O&M Specialist (domestic). The consultant will (i) prepare generic O&M manuals for the Project’s FCD/I systems, using available documents prepared under ongoing programs; (ii) prepare training materials for O&M training of WMAs; (iii) assist SMO subdivisional engineers in developing O&M plans with WMAs; (iv) assist SMO to support WMAs to implement O&M plans including cost recovery mechanisms.
21. Financial Management Advisor (domestic). The consultant will (i) review and refine operational guidelines on financial matters, including project financial bookkeeping and accounting system at all levels; (ii) monitor project financial management; and (iii) assist in preparing and implementing training programs related to financial management for project staff and WMAs (for their management of contributions).
48 Appendix 13
SUMMARY ECONOMIC AND FINANCIAL ANALYSIS
A. Objective
1. The objective of the analysis is to assess the two representative subprojects (Chenchuri Beel and Narail subprojects,1 covering about 57,000 hectares [ha]), in terms of (i) economic viability, and (ii) financial impacts on farmer incomes and affordability/sustainability of operation and maintenance (O&M). While both schemes have a marketable surplus of most crops, productivity is low compared with their potentials due to the degraded main infrastructures and lack of minor control facilities to address localized water management problems. In the analysis, beneficial impacts of improved flood control and drainage/irrigation (FCD/I) works and nonengineering support (including that for agriculture and fishery extension and capacity strengthening) are weighed against the capital and O&M costs. Infrastructure improvements include work on embankments, regulators and other water control structures, reexcavation of silted canals, and upgrading of embankment roads. This analysis can be seen as representative for the remaining subprojects, or 43,000 ha of FCD/I areas to be selected during the project implementation period.
B. Approach and Major Assumptions
2. To determine the expected direct benefits of the subprojects in question, quantifiable effects are valued by comparing “present”, “future without project” and “future with project” scenarios.2 The input-output coefficient of farm production, including cropping patterns, crop yields, fertilizer usage, and labor costs, was estimated based on data from the Department of Agriculture Extension and farm-level surveys during the project preparatory stage, and cross- checked with data reported in similar projects in Bangladesh. The subprojects analyzed were assumed to have an economic life of 30 years, and to achieve the full benefits in the third year after completion. The analysis uses a world price numeraire, and economic prices for traded inputs and commodities (rice, wheat, sugarcane, jute, and fertilizer) were based on the World Bank Commodity Price Projections. The prices of other crops and farm inputs were based on market prices in the subproject areas in August 2004. A standard conversion factor of 0.90, and a shadow wage rate of 0.85 for agriculture labor and 0.84 for construction labor were used.
C. Estimated Costs and Benefits
3. Costs. The investment costs were estimated based on the basic design data, whereas O&M costs were based on field data and the concerned department guidelines. Total financial costs of the Chenchuri Beel and Narail subprojects amount to Tk618 million ($10.0 million) and Tk617 million ($10.0 million), respectively, whereas annual O&M costs amount to Tk16.5 million in Chenchuri Beel and Tk12.4 million in Narail.
4. Benefits – Increased Crop Production. Crop production is expected to increase as a result of improved water management within the FCD/I systems, because of (i) change in cropping intensity and pattern in response to improved flood protection, drainage, and irrigation; and (ii) increased yields. At present, about 60%, 75%, and 55% of net cultivated area (NCA) in
1 The two subprojects were built in the early 1980s with the support of the World Bank and the Government of the Netherlands, and have been functional without major damage or further external assistance. Chenchuri Beel and Narail subprojects cover about 25,000 hectares (ha) and 32,000 ha of gross area, respectively, and 17,900 ha and 23,400 ha of net cultivated area, respectively. 2 The “future without Project” case was differentiated from “present” case in production pattern, to take into account the ongoing expansion in private tubewell irrigation and related cropping pattern changes.
Appendix 13 49 the two subproject areas is cropped in the monsoon, winter, and spring seasons, respectively. Paddy is most dominant across the year, yet some 30% of cultivated land is cropped with noncereals during the dry season. The Project will reduce the monsoon flood risk, inducing farmers to intensify paddy production from broadcast to transplanted high yielding variety anticipated in about 10% of NCA where the broadcast variety is currently planted). Improved drainage conditions will allow timely cultivation of winter crops, thereby increasing cropping intensity and diversity. Increased access to irrigation water retention with control structures and canal reexcavation will also expand cropping intensity/diversity, particularly that of high-yield varieties of winter paddy (by about 10% of NCA) and some other high-value crops (by some 1.5% from 9–10% of NCA without the Project). Overall, cropping intensity is anticipated to increase by 15% and reach 220% compared with the without-Project condition. Crop yields are also expected to increase because of more reliable flood protection and irrigation that will induce farmers to increase the use of modern inputs, with extension support provided under the Project.3 As a result, production of food grains and that of other edible crops (except for jute and sugarcane) are expected to grow from 178,000 tons (t) and 112,000 t without the Project to 218,000 t and 132,000 t, an increase of 22% and 18%, respectively.
5. Reduction in Losses due to Floods. Flood control structures (strengthening of embankments and riverbank protection) will also reduce crop losses from flooding. To estimate value of the crop losses, data on the average crop damage over a 20-year period were used for the without-Project situation.4 The net value of estimated annual crop loss is Tk6.1 million in Chenchuri Beel and Tk8.0 million in Narail, whereas no loss is expected under the level of floods observed during the same period under conditions with the Project. The Project will also reduce flood damage to public and private assets.5 The estimated annual reduction in such damage is Tk1.5 million in Chenchuri Beel and Tk2.0 million in Narail subproject, respectively.
6. Incremental Culture Fisheries Production. The Project will provide fishery extension services to the concerned water management organizations in the subproject areas with a focus on the poor, covering ponds (about 200 ha), canals (50–100 ha), and paddy-cum-fish culture (200–300 ha) for each subproject. Incremental benefits were estimated from local data on production and input-output coefficients, and crosschecked with those brought about in similar projects. 6 The estimated culture fishery annual incremental production in the with-Project scenario amounts to 560 t (valued at Tk10.2 million) in Chenchuri Beel subproject and 660 t (valued at Tk11.6 million) in Narail subproject.
7. Nonquantified Benefits. Apart from quantified benefits, the Project has a number of nonquantified benefits, including (i) improved planning capacities for preparing integrated water management plans; (ii) improved water management infrastructure and related service delivery mechanisms with transparent and accountable governance; (iii) establishment and empowerment of water management associations (WMAs); and (iv) improved management information system for hydrological data, water user coordination, and FCD/I scheme
3 While the Project aims to achieve the high potential yield levels for the concerned crops reported in local agriculture research stations, a yield increase of modest level was assumed for aman (9%) and boro (6%) only, with other crops assumed to have the same yields except for locally minor potato and winter vegetables. 4 It was estimated that about 50% of the crop would be lost in the affected area, with the same amount of inputs except for 25% of the labor costs (corresponding to harvesting and threshing). 5 Given the unavailability of data, valuation of these losses was based on an average of 25% of annual crop losses, which corresponds to the estimates made in the flood action plan studies. 6 No impact was assumed for capture fisheries, given the offsetting impacts of obstruction by additional structures (such as water retention) and increased water body associated with water retention and canal reexcavation.
50 Appendix 13 performance monitoring and planning. Benefits derived from strengthening the policy, planning, and institutional framework will have wider impacts at national and field levels.7
D. Assessment of Economic Returns
8. Results of the economic analysis (Table A13) show that the economic internal rate of return (EIRR) is 16.5% for Chenchuri Beel and 21.2% for Narail, and the net present value at a discount rate of 12% is Tk151 million and Tk295 million, respectively. Switching values were estimated for certain risks including benefit decrease, cost increase, decreases in crop prices, life of the project, and delayed benefits. Overall, neither subproject is strongly susceptible to most of the risks examined. Reduction of the project life to 12.5 years in Chenchuri Beel and 11 years in Narail would still yield an EIRR of above 12%. For Chenchuri Beel, however, a fall in food grain prices could threaten economic viability. The economic returns are expected to be robust.
E. Assessment of Financial Returns
9. Household Returns. Farm budget analysis was conducted for typical farm households in the two subproject areas. Table A13 summarizes the gains in farm net income as a result of the Project, including the farmer’s share of the financial contribution to the Project, i.e., annual O&M costs. In Chenchuri Beel and Narail subprojects, there are about 39,800 and 45,600 households, among which 62% and 56% are functionally landless (owning less than 0.3 ha),8 13% and 12% marginal (0.3–0.8 ha), 13% and 18% small (0.8–1.5 ha), 10% and 11% are medium (1.5–3.5 ha), and 2% and 3% are large farmers (3.5 ha or more). All households engaged in farming and/or agriculture labor will benefit from the Project, with an average annual income increase of Tk4,245 for Chenchuri Beel and Tk4,400 for Narail, representing an increase of 18% and 16%, respectively, compared with the without-Project conditions. The increase for functionally landless and marginal farmers engaged in agriculture amounts to Tk2,745 in Chenchuri Beel and Tk2,795 in Narail.
10. Poverty Impacts. The socioeconomic survey done in 2004 found the poor 57% at Chenchuri Beel and 56% at Narail, higher than the national average of 50% recorded in 2000. Incremental financial benefits expected to accrue to the poor were calculated to be 46% in Chenchuri Beel and 43% in Narail, based on the estimated present value of incremental household income items (crops, prevented flood loss, fishery, and labor including agriculture and construction labor) for individual household categories and their poverty head count ratio. Poor people will particularly benefit from increased opportunities for family and hired on-farm labor, as well as construction labor. Annual on-farm labor opportunities are anticipated to increase by 1.45 million days for the two sample subprojects, of which at least 0.44 million days will be hired almost totally from landless and marginal farmers, with an estimated incremental income of about Tk600 per concerned household.
11. The Project will also improve food security, particularly for functionally landless and marginal farmers. Among functionally landless and marginal farmers, an average household having an operational size of 0.23 ha with 40% of sharecropped land will increase food crop production from the present 120–150 kilograms (kg) per capita to 160–190kg after the Project, thereby substantially meeting the annual food requirements. Once food security is addressed, farmers will be ready to grow more profitable crops such as vegetables and spices.
7 Besides, benefits generated from embankment road improvement were not quantified due to data unavailability. 8 About 20% of the total population are not engaged in farming or agriculture labor.
Appendix 13 51
F. Sustainability
12. The O&M responsibility of subproject infrastructure rests with WMAs for local facilities having an impact area of less than 2,500 ha, whereas other facilities are jointly managed by the Government (Bangladesh Water Development Board [BWDB]) and the WMAs (with the latter responsible only for minor repair works), following the national water policy. As part of project preparation, the financial sustainability of subproject O&M was analyzed. The O&M costs to be borne by the WMAs and BWDB amount to Tk3.7 million and Tk12.9 million, respectively, in Chenchuri Beel, and Tk5.3 million and Tk7.1 million, respectively, in Narail.
13. WMA-Managed Facilities. About 50 WMAs are expected to be formed in the two subproject areas, following the cooperatives legal framework. These WMAs need to generate necessary funds to cover the O&M costs of the delegated facilities along with administrative costs to play its water management functions. The annual O&M financial requirement corresponds to Tk205/ha in Chenchuri Beel and Tk224 in Narail, or 4–8% and 3–7% of the incremental income brought about by the Project among different farmer categories, with the larger farmers bearing more (due to smaller per ha incremental income). While the WMAs may require a nominal administrative cost that could increase the farmer contribution (by 10–15%), the required amount is deemed affordable to the concerned farmers, and is well within the range practiced in an Asian Development Bank-assisted project to support small-scale FCD/I schemes.9 The same project experience indicates that due motivational efforts and time are needed to encourage WMAs to undertake sufficient O&M. To support a smooth transition, the Project will establish O&M reserve fund through up-front beneficiary contribution of fees equivalent to the annual O&M requirement. This will be enhanced through further collection during implementation, and WMAs will be trained to establish a practice of sufficient O&M with due fund replenishment.10
14. Government-Managed Facilities. BWDB does not have any revenue generated in the two subproject areas;11 thus, the total required amount of Tk20.0 million has to be borne mostly through the Government budget. While the nationwide allocation of BWDB’s repair budget remains about half of the total requirement, the Government has been significantly increasing the maintenance budget allocation to BWDB by some 15% each year since FY2004, in recognition of the need for full maintenance funding and of recent BWDB reforms such as staff rationalization (by over 50%), initiatives of infrastructure management transfer to WMAs, and for increasing irrigation O&M cost recovery. 12 To further support sustainable O&M of BWDB infrastructure, the Project will support, in conjunction with other externally assisted projects, the establishment and nationwide operation of a management information system for O&M performance monitoring and planning, covering all BWDB-managed FCD/I schemes. On the basis of this, BWDB will introduce performance-based O&M budget management, under which the maintenance fund allocation is prioritized to schemes having better performance, in particular the performance of local WMAs in terms of sustaining the O&M of WMA-managed facilities and cost recovery of irrigation operations. These measures are expected to lead to duly improved O&M performance of BWDB-managed facilities, particularly those where effective WMAs are established and operated under the Project and similar externally assisted projects.
9 Footnote 7 in the main text. ADB. 2001. Report and Recommendation of the President to the People’s Republic of Bangladesh for the Second Small-scale Water Resources Development Sector Project. Manila. 10 Training for enhancing their collected cooperative shares and savings through investments will also be provided to enhance their revenue as appropriate. 11 The national water policy (NWP) envisages no O&M cost recovery for major flood control and drainage facilities, given the public good nature of the benefits, whereas full O&M cost recovery is envisaged for irrigation facilities. While the Project will generate certain irrigation benefits, all are within the range of WMA management. 12 Internal budgetary rule was also established to disallow transfer of the maintenance budget to staff compensation.
52 Appendix 13
Table A13: Summary of Financial and Economic Analyses Item Chenchuri Narail Beel Command Area (ha) Geographic Area 25,560 31,660 Net Cropped Area 17,900 23,407 Households 39,800 45,600 Functionally Landless (Up to 0.3 ha) 62.0% 56.3% Marginal (Up to 0.8 ha) 12.8% 12.4% Small (Up to 1.5 ha) 12.8% 17.5% Medium (Up to 3.5 ha) 10.2% 10.9% Large (Above 3.5 ha) 2.2% 2.9% Population 203,000 232,600 Incremental Revenue (Tk million) 119.42 138.05 Crops 101.53 116.29 Fishery 10.24 11.80 Flood Loss (crops and assets) 7.65 9.96 Investment Cost (Tk million) 617.7 616.8 Annual O&M Cost (Tk million) (BWDB share/ WMA share) 12.9/3.7 7.1/5.3 Economic Internal Rate of Return (%) 16.5 21.2 Economic Net Present Value (Tk million) 150.98 294.99 Switching Values Cost Overrun (%) 41 89 Delay in Full Benefit Achievement (years) 7 n.r. Incremental Crop Benefit Shortfall (%) 32 53 Food Grain Price Reduction (%) 19 38 Minimum Project Life (years) 12.5 11.0 Incremental Income per Household (Tk) Landless and Marginal 2,745 2,795 Small 5,994 5,153 Medium 8,057 8,019 Large 13,799 13,186 Average 4,245 4,400 Average Incremental Income (Tk/ha) 5,672 4,968 Annual O&M Cost for WMA-Managed Facilities (Tk/ha) 205 224 O&M as Percent of Incremental Income (average) 3.6 4.5 Total Incremental Annual Labor Inputs ('000 days) 694 752 Total Incremental Hired Labor ('000 days) 215 226 Crop Production ('000 tons) (without Project/with Project) 145.6/173.7 215.9/242.6 Food Grains (without Project/with project) 75.2/95.5 102.4/122.3 Other Edible Crops (without Project/with Project) 44.7/53.5 66.8/78.2 Jute and Sugarcane (without Project/with Project) 25.7/24.7 46.7/42.1 Poverty Incidence (%) 57 56 Net Incremental Income Accruing to Poor (%) 46 43 Share of Net Benefits (%) Landless and Marginal Farmers 44 39 Small 23 25 Medium 24 25 Large 911 BWDB = Bangladesh Water Development Board, ha = hectare, n.r. = not relevant, O&M = operation and maintenance, WMA = water management association. Source: Asian Development Bank estimates.
Appendix 14 53
SUMMARY POVERTY REDUCTION AND SOCIAL STRATEGY
A. Linkages to the Country Poverty Analysis Sector identified as a National Priority in Yes Sector identified as a National Priority Yes Country Poverty Analysis? in Country Poverty Partnership Agreement? Bangladesh remains one of the poorest countries in the world with an annual per capita income of $389 (in 2003), poverty incidence of 50% (in 2000), and child malnutrition rate of 48% (in 2001). Poverty is predominantly a rural phenomenon, as more than 85% of the poor live in rural areas. Given that over 85% of the poor live in rural areas and engage in agriculture and related nonfarm activities, enhancing agricultural and rural development is a key to reduce poverty in the country. For the rural poor, access to and control of water are fundamental importance as water is the foundation for many livelihood activities, including agriculture, fisheries, forestry, and water supply.
Located at the confluence of three major river systems that bring about massive monsoon floods (that inundate some 30% of the land on average), drainage congestion, riverbank erosion, dry season water scarcity, natural disasters such as cyclones, and widespread groundwater arsenic contamination (that is affecting some 30-50% of the population), access to water and their effective management are fundamental for the livelihood of the rural population. In Bangladesh this challenge is further complicated by diverse and complex stakeholder interests, including agriculture (interests varying in different elevations), fisheries, boat transport, industries, and drinking water. Water is also vital for the country’s rich natural biodiversity and ecosystems. Thus, it is paramount for the country to manage water resources through an integrated, participatory, and decentralized approach with due attention to water security for the poor. Improving water resource management has been given high priority in the poverty partnership agreement between the Government and the Asian Development Bank (ADB). The national water policy and the draft national strategy for accelerated poverty reduction, or poverty reduction strategy paper (PRSP) emphasize programs related to water sector development. Flood management, irrigation, drainage control, erosion protection, land reclamation, integrated management of coastal polders, river flow augmentation, sharing of water from transboundary rivers, and wet land conservation through the participation of stakeholders are considered important not only for human beings but also for agriculture, fisheries, and biodiversity. The PRSP has flagged the interface between water and poverty so that required intervention is designed properly.
The Project will contribute to increased agricultural production, improve food security, and address the viability of poor rural people through effective water management. The rehabilitation of the flood control and drainage/irrigation (FCD/I) infrastructure, including embankments, regulators and retention structure, sluices, canal reexcavation and riverbank protection, will expand the irrigated area, and improve crop yields and fisheries production. The Project will contribute to improving the rural economy by enhancing agricultural production, fisheries development, social forestry and income-generating activities. The Project will help increase the household income of the landless and poor women. Furthermore, providing safe water supply to safeguard the people in the project area from arsenic poisoning will improve living conditions of the population with respect to health.
B. Poverty Analysis Targeting Classification: Targeted intervention Overall Status and Causes To assess the expected socioeconomic impact of the Project socioeconomic analysis was carried out in two sample subproject areas, where over 85,400 households (0.4 million people) live. The majority of the farmers in the subproject areas are landless people and marginal farmers (68-75%), followed by small farmers (13-18%), and medium-sized (10-11%) and large (2-3%) holdings. Poverty incidence is 56-57%. Landless and marginal farmers live below the extreme poverty line and the majority of smallholders fall below the moderate poverty line. Poverty in the subproject areas is reflected in low standards of living, poor health, lack of education, abandonment of women and children, and vulnerability of most households to floods. The basic causes of poverty are lack of access to productive resources (mainly water and land), to public resources such as health provisions, education, and transport and employment. The lack of social protection measures, participatory governance, entrepreneurship, and alternative livelihood opportunities makes marginal farmers, the landless, and women particularly vulnerable.
The main problems in the two subproject areas, as represented by the landless and marginal farmers, are shortage of land and income opportunities. The community expectations of the benefits and impacts of the Project are (i) increased agriculture and fish production, (ii) more opportunities for disadvantaged groups to become involved in farming and nonfarming activities, and (iii) increased income opportunities. All women interviewed expected to benefit from the Project mainly by employment and income generation through improved postharvest work, livestock and fish production, farm and homestead production, cottage industries, improved water supply and sanitation services, and access to credit.
Additional data is required during implementation to identify specific needs and interests of the poor so that appropriate support could be designed in terms of access to resources including skills, finance, and organizations.
54 Appendix 14
C. Participation Process Stakeholder Analysis Prepared: Yes A participatory process was used during the project preparatory stage and discussions were carried out with women, fishermen, the landless, and other vulnerable groups in the two subproject areas using participatory rapid rural appraisal (PRRA) techniques. An inventory of local needs was prepared, encompassing problems/constraints related to (i) water resources in relation to domestic agriculture, fisheries, transport, environment, and other uses; (ii) possible solutions to resolve the constraints identified including their positive and negative impact on various local interest groups; (iii) implications of solutions for poverty reduction; and (iv) prioritizing water resources needs compared with other development needs. The role of service providers, people’s willingness to contribute to operations and maintenance (O&M), and the scope of enhancing impacts of water interventions with others such as microcredit, and extension services were also discussed. Nongovernment organizations (NGOs) were engaged to facilitate this process. The project preparatory technical assistance (PPTA) identified the future course of action and mechanisms to institutionalize community participation in the expected implementation areas.
Agricultural benefits constitute the largest part of the total project benefits and are likely to accrue mainly to landowners. However, the project design ensures that the poor, including the landless, marginal farmers, and women, at least share equally in the distribution of the income growth benefit from the Project through increased agricultural production and employment opportunities.
The poor will benefit from shared cropping and labor income as the land area will increase and the poor will be hired on a wage basis to cover the increased labor needs of medium-sized and large landholders. In addition, labor for earthworks and other project-related construction and maintenance work will be drawn from poor households, with preference for destitute women.
Participatory Social Development Strategy Prepared: Yes The Project will continue to be driven by the needs and demands of the communities that recognize the importance of water resource management to protect and improve their livelihood activities. The Project will ensure a social development strategy that (i) allocates sufficient time and resources to establish viable local organizations particularly water management associations (WMAs); (ii) provides a legal status for these organizations; (iii) promotes partnership among Government agencies, local government, and civil society groups; and (iv) defines and puts into place a process and procedures to ensure meaningful beneficiary participation in all stages of the Project.
The social development strategy will include the following: procedures and guidelines for selecting beneficiaries for WMA membership, employment, credit access; participation of WMAs in designing, planning, implementing and monitoring the sub- project activities and drafting the WMA by-laws; a comprehensive capacity-building plan highlighting training for project staff, WMAs, and village groups; guidelines and procedures for social activities such as poverty reduction, conflict resolution, anti- dowry drives, women repression and voting rights; procedures for networking and linkages among WMAs and service-providing agencies; and regular project-level coordination meetings with representatives of project staff, NGOs, and WMA members.
The strategy will also establish consultative platforms at the village level in conjunction with the district administration, local government institution, and NGOs before appropriate interventions are designed for water infrastructure improvement, farming and nonfarming production, and income generation. NGOs will provide leadership and confidence-building training for organizational and capacity building among the poor and women’s groups in preparation for developing independent WMAs capable of managing and operating their FCD schemes. Furthermore, village facilitators will be selected and trained to provide a sustainable mechanism for continued community-based management and development. The Project will establish procedures for close coordination among district administration and NGOs for effective service delivery.
D. Gender Development Women in Bangladesh remain particularly vulnerable to living in poverty. Socially prescribed roles have limited women’s access to economic resources such as capital, skill and marketing know-how. These same social norms limit women’s participation in political and other forms of decision making that affect their lives. The restrictions are particularly hard to overcome for women who head households, whether as widows or through divorce or abandonment. Women workers earn considerably less than male workers and there is persistent lower average calorie consumption for females, indicated by higher severe malnutrition, mortality, and morbidity rates for girls and women than for males. There is, however, no analysis of household economy that provides the link between the gender gaps identified and their causes. Differences in poverty levels between households headed by males and females highlight the difficulties women face in benefiting from economic growth. The average monthly income of female headed households in rural areas is approximately 35% lower than that of male headed households and is 33% less than in urban areas.1 This corroborates assumptions that female headed families have difficulties accessing both the assets required for adequate income and benefiting from services, or other programs that generally target male household heads.
1 ADB. 2004. Bangladesh – Gender, Poverty, and the Millennium Development Goals – Country Gender Strategy. Manila.
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Women are important producers of homestead crops and livestock, and their postharvest activities contribute over 50% of the value of crop produce (footnote 1). The division of labor is prescribed by social norms that by tradition limit women to remaining in seclusion in the immediate household area. Women therefore do not take produce to market or interact in public with men. These restrictions on women’s mobility also limit their capacity to control the proceeds from their labor or to access extension services, especially when male officers deliver services. Women also have little or no access to land other than through their relationship with male family members.
A gender action plan (GAP) has been developed to ensure that gender concerns are addressed and dealt with in the most effective and efficient manner. The Project will give specific attention to employment of female staff at all levels and train field staff in gender-sensitive and participatory planning and project implementation. Furthermore the GAP will ensure employment opportunities generated by the Project and O&M works; train women to be involved in WMAs and all aspects of O&M; support women's work in farm and homestead production; strengthen the extension system to be gender-equitable to ensure its effectiveness; identify and respond to women's agricultural and household needs for technology in close collaboration with implementing agencies and NGOs; support women in their home-based postharvest production and marketing activities by providing local market information and linkages, improving transportation and storage facilities, improving processing and packaging techniques, enhancing credit facilities; provide women with training in crop and horticulture production, postharvest operations, poultry and small livestock rearing, social forestry; and fisheries production and processing, credit, seed production, nutrition education; and identify gender-specific monitoring indicators. One gender specialist will be posted in the project management office to further develop and implement the GAP for the Project, and to supervise four social development and gender specialists engaged through NGOs who will be posted at each subproject management office to implement and monitor the GAP.
Gender Action Prepared: Yes Refer to the GAP in Appendix 15.
E. Social Safeguards and other Social Risks2 Significant/ Item Non Strategy to Address Issues Plan Significant/ Required4 None3 Resettlement5 Significant A resettlement framework and sample resettlement plans have been Full prepared, following ADB’s involuntary resettlement and other social safeguards policies. Subproject implementation will generally require the use of land for resectioning the embankments and placement of structures although the scope is limited due to strip acquisition and existence of dwarf embankments in most of the sections. Under the Project, the RF will be followed, and all affected persons will be entitled to compensation for land taken for the purpose of the project interventions, for their lost assets, and incomes at replacement cost to improve or at least restore their preproject living standards, income levels, and productive capacity. Affordability None See section C. No
Labor None See Section C. No
Indigenous Non significant The project area, as well as candidate scheme areas, does not have any No Peoples indigenous peoples. If any small indigenous people are identified, ADB’s Policy on Indigenous Peoples will be applied, and specific actions will be prepared in accordance with the said policy. Other Risks/ Natural calamity during implementation of the subprojects may increase No Vulnerabilities the vulnerability of people and hinder in project implementation. Conflict over the authority on small-scale subprojects between Local Government Engineering Department and Bangladesh Water Development Board may hamper implementation. A drafting process of a memorandum of understanding to stipulate the specific coordination arrangements has been completed.
2 IPSA/SPRSS criteria for assessing the significance of social issues are available at the ADB Handbook for Poverty and Social Analysis. 3 If not known, a contingency should be included in the TA budget to anticipate the need of a plan. 4 A plan will be required at design stage if any of the potential issues are found significant. 5 Significant involuntary resettlement requires a full resettlement plan.
56 Appendix 15
GENDER ACTION PLAN1 Component Activities and Target A. Participatory - Recruit 50% female staff in project teams (NGOs and EAs) for in-depth needs assessments and IWMP consultation through participatory rapid assessments methodologies Preparation - Train the participatory rapid rural appraisal teams on gender issues - Hold separate meetings with women groups to identify specific programs for women within agriculture, fisheries, income generation - Collect gender-specific data and report (as per guidelines) - Select female and male village facilitators (2 per subunit) - Build capacity of NGOs and village facilitators on water and gender - Draft by-laws by initial committee of WMA with 33% women participation as per guidelines - Integrate activities to address women’s needs in the integrated water management plan B. Sustainable - Organize of women groups according to selected on-farm or off farm activities and identify specific Water roles and responsibilities of members management - Elect one third women representatives to the WMA with roles and responsibilities identified through IWMP - Build capacity of women’s groups on leadership, confidence building, accounting and business Implementation management - Form and train labor contracting societies based on equal wage for equal work - Have one third women members in WMA and their committees and train them - Give skills training to women’s groups on agriculture, fisheries, and income-generation activities - Exchange visits with other women’s groups (per districts) and WMAs - Provide of market sheds (where possible) for women to sell their products - Have village facilitators and NGOs conduct gender-sensitive monitoring of village activities Agriculture: - Provide time-saving technology for women - Give women access to quality seeds - Train women on crop diversification, seed production, processing, compost making, and marketing - Raise awareness raising and build capacity of women in integrated pest management - Establish linkage with agriculture extension activities Fisheries: - Conduct training and demonstration on fingerlings, fish production, and preparation of fish feed - Produce and market fish nets - Train women in fish processing, drying, and marketing - Establish linkage with fisheries extension services Forestry: - Train women in running nurseries, tree planting, and maintenance(100%) - Have a social forestry program (fruit trees, timber) - Involve women in maintaining embankments and other infrastructure Poultry: - Conduct training on poultry rearing, feed preparation and vaccination - Establish linkage with fisheries extension services C. Institutional - Include one third women in the NGO support team for subproject management offices Strengthening - Recruit gender specialist and Project - Train EA staff on gender issues, and collecting, monitoring and reporting gender-disaggregated Management data and participatory development - Include gender-disaggregated data in management information system - Include gender-based information in regular reports.
EA = executing agency, NGO = nongovernment organization, IWMP = integrated water management plan, WMA = water management association. Source: Asian Development Bank.
1 To be further developed during the project implementation period. To support its implementation and monitoring, one gender and development specialist will be posted in the project management office. Four social development and gender specialists will be engaged through nongovernment organizations at the subproject management offices.
Appendix 16 57
SUMMARY RESETTLEMENT FRAMEWORK AND RESETTLEMENT PLANS
A. Summary Resettlement Framework
1. Scope and Impacts. The resettlement framework (RF) outlines the policy, procedures, and institutional requirements for preparing and implementing resettlement plans (RPs) for the two sample subprojects as well as for future subprojects selected under the Southwest Area Integrated Water Resources Planning and Management Project. The Project includes rehabilitation and improvement of existing flood control and drainage/irrigation (FCD/I) infrastructure, and involves resectioning, widening, and new construction of flood embankments; placement of revetment along eroding riverbanks; reexcavation of canals; and installment of water control structures including regulators, inlet/outlet pipes or sluices under embankments, and check structures within canals, for which the concerned land strips would need to be acquired by the Bangladesh Water Development Board (BWDB).
2. Resettlement Policy. Resettlement will be implemented in accordance with the policy on involuntary resettlement of the Asian Development Bank (ADB) and following the Government’s Acquisition and Requisition of Immovable Property (ARIP) Ordinance 1982 and East Bengal State Acquisition and Tenancy Act (1951, revised 1998).
3. Resettlement Principles, Entitlements, and Procedures. The RF applies to all involuntary resettlement effects–including displacement of nontitled people–arising from land acquisition or conversion, or any other effects that arise from the project works, including the effects on people with no title to the land. Those affected will be entitled to maintain at least their standard of living at preproject level, and to receive compensation for all types of losses, including land, crops, trees, structures, and any other assets at full replacement value. Affected households will receive (i) an additional cash grant to match replacement value to supplement the grant provided by the deputy commissioner, and (ii) other resettlement assistance such as shifting allowances and compensation for loss of workdays and income due to dislocation. Households with female heads and other vulnerable households will be eligible for further cash assistance for relocation and house reconstruction. People involuntary displaced will receive priority assistance under the Project’s livelihood enhancement subcomponent. Table A16.1 summarizes the types of loss and entitlements of the affected persons (APs). Table A16.1. Compensation Entitlement Matrix Type of Loss Application Definition of APs Entitlement 1. Loss of Land on the Legal owner(s) of - CCL determined by DC agriculture or project ROW land - Positive differential in respect of replacement market price to any other type to be acquired be determined by PVAT of land by DC - Refund of registration cost incurred for purchasing replacement land purchase at the replacement value 2. Loss of Land on the Legal owner(s) of - In case of khas land, CCL to DC without 50% premium underwater project ROW land (DC), and the - Replacement value of land assessed by PVAT, to the land within the river previous private previous owner(s) whose land was eroded after AD line if owners of land below - Refund of registration cost incurred for replacement land acquired the AD line purchasing at the replacement value 3. Loss of Structure on Legal owner(s) of - CCL determined by DC with joint verification to legal owners residential the ROW structures and non- - Positive differential in respect of replacement market price to /commercial identified by titled owners including be determined by PVAT to titled and nontitled owners structure DC and the occupiers/ - Transfer grant of 12.5% of the value of nonconcrete structure SES encroachers/ assessed by PVAT to titled and nontitled owners sheltered/squatters - Transfer grant of 5% of the value of concrete structure identified by the SES assessed by PVAT to titled and nontitled owners for each household/ - Reconstruction grant of 12.5% of the value of nonconcrete
58 Appendix 16
Type of Loss Application Definition of APs Entitlement shop structure assessed by PVAT for titled owners - Homestead development/reconstruction grant of Tk15,000 to nontitled owners - Salvaged materials free of cost 4. Loss of Concerned Legal owner(s) of - Cash grant equivalent to 1 year's net income from the non-structure structures on structures and non- structure to be determined by PVAT to the cultivator(s) assets (betel the ROW titled owner(s) - Cash grant equivalent to 1 year's rental income to the owners leaf farms and identified by including of associated land assessed by PVAT ponds.) DC and /or the leaseholders SES identified by the SES 5. Loss of Standing Legal owner(s) of - Compensation at the rate estimated by the FD for trees and trees, crops, crops, trees on land the DAE for crops fixed by DCs perennials the ROW - Salvaged materials free of cost 6. Loss of Agricultural Legal tenants of land - Crop compensation to titled sharecroppers or lessees by DC access to and identified by DCs and - Cash grant of Tk300 per decimal of land sharecropped by agricultural, commercial nontitled tenants nontitled sharecroppers commercial plots on the (renters, lease- - Cash grant for alternative housing to renters of residential and project ROW holders, share- and commercial land (lump sum) Tk6,000 homestead croppers) identified - Cash grant of Tk500 per decimal to renters of land for betel land by SES leaf farms and ponds 7. Loss of Households Head of poor - Cash grant of Tk5,000 per household as subsistence for lost income and (both titled and households / owners income/workdays workdays due nontitled) and of shops and - Cash grant of Tk6,000 for loss of business income by to dislocation employees in employees identified affected traders/shops SBEs identified by the SES - Cash grant equivalent to Tk3,000 to owners of rented on the ROW land/premises - Cash grant of Tk3,000 to the affected employees equivalent to 2 months' wages 8. Affected Vulnerable Vulnerable - Additional cash grant of Tk5,000 to head of affected vulnerable households on households identified households households the ROW (both by SES (women - Training and credit facilities under income generation titled and non- headed, hard core program titled) poor, and poor - Employment in the project construction work, if available households losing more than 10% of their income) 9. Displace- Community Community - CCL to be determined by DC based on joint verification ment of structure on representative as - Positive differential in respect of replacement market price to community the project identified by the SES be determined by PVAT structure ROW, if - Transfer grant equivalent to 5% of the assessed value of removed for structure by PVAT project interest - Dismantling and reconstruction cash assistance including land as assessed by PVAT considering the CCL for concerned land and structure 10. Access to All households Households identified - Community infrastructure facilities, access roads, plantation, community/ on the ROW if by SES/joint tubewells, sanitary latrines, and drainage civic facilities they relocate in verification at relocated group sites 11. Project- Char land if Owners/occupiers of - Market value of concerned land assessed by PVAT to the induced erodes due to eroded char land owner-occupied land by 100% or shared 50%-50% among erosion of the project owners and occupiers for nonowner-occupied land accreted land within 2 years of completion 12. Unfore- Any impact Concerned affected - Determined as per policy on unique findings at detailed seen impact recognized at households design stage final design AD = alluvial and delluvial, AP = affected person, CCL = cash compensation under law, DAE = Department of Agriculture Extension, DC = deputy commissioner (of district administration), FD = Forest Department, PVAT = property valuation assessment team, ROW = right-of-way, SBE = small business enterprise, SES = socioeconomic survey.
Appendix 16 59
4. Institutional Responsibilities and Procedures. The project management office (PMO)–under the responsibility of the chief resettlement and environmental manager with the rank of senior executive engineer, and guidance of the project director–has overall planning, financing, and supervisory responsibility for preparing and implementing the RPs, with the support of the consultants, including capacity strengthening and monitoring. The specific works will be carried out by the subproject management offices (SMOs) through a resettlement coordinator with the rank of executive engineer or senior subdivisional engineer. The PMO will engage experienced non-government organizations (NGOs) to assist the process with the support of the consultants. For future subprojects, the concerned SMO will undertake social impact assessment with the consultants based on preliminary technical designs, and prepare full or short RPs in compliance with ADB’s policy on involuntary resettlement and other social safeguard guidelines. The full and short RPs will be reviewed by BWDB and submitted to ADB for approval. For all subprojects, RPs will be further developed upon completion of the detailed design, and must also be submitted to ADB for approval. APs should be fully compensated before award of the relevant civil works contracts. BWDB will ensure that resettlement budgets are delivered on time to the deputy commissioner’s office and the implementing NGOs.
5. Disclosure, Consultation, and Grievances. Each RP will be prepared and implemented in close consultation with the stakeholders and will involve focus group discussions and meetings with the APs, with disclosure of resettlement information in the form of brochures written in the local language. Copies of the RF and draft RPs will be distributed among NGOs and community groups prior to finalizing the engineering design. The two sample subproject RPs, updated based on detailed technical design and future subproject RPs, will be distributed to APs, disclosed on the ADB website, and submitted to ADB for approval. A grievance redress committee (GRC) will be established with representatives from the SMO, APs, and local government institutions (LGIs) through official gazette. The GRC will resolve AP grievances with non-legal complications. People’s participation will also be ensured through a resettlement advisory committee established at the local level involving local leaders including men and women.
6. Monitoring and Evaluation. BWDB, with assistance from the resettlement specialist, will establish a monthly monitoring system involving PMO, SMOs, and implementing NGOs, and prepare progress reports on all aspects of land acquisition and resettlement (covering staff appointment and capacities, planning, scheduling and budgeting; delivery of entitlements including income restoration activities; consultation, grievance, and other issues; and resettlement impacts) in the quarterly reports, including identification of significant issues. An annual report stipulating all efforts and outcome will be submitted to ADB. External monitoring will also be assigned to an independent domestic expert, who will review the progress and performance of RP preparation and implementation and report the findings and recommendations simultaneously to BWDB and ADB.
7. Resettlement Cost. The cost of land acquisition and resettlement is estimated at Tk204 million ($3.4 million) including NGO services. The Government will provide the entire fund for land acquisition and resettlement, and will guarantee meeting unforeseen obligations in excess of the budget estimate to meet the resettlement objectives.
B. Summary Resettlement Plans
8. Scope and Impact. Table 16.2 shows the scope and resettlement impacts of the rehabilitation and improvement of two sample FCD/I schemes.
60 Appendix 16
Table A16.2. Subproject Scope and Resettlement Impacts Item Chenchuri Beel Subproject Narail Subproject Geographical Area 25,560 ha 31,660 ha Subproject Scope Embankments (25km resectioning, 3.5km Embankments (10km resectioning, 17km new), retired, 6km new), 2.8km revetment, canal canal excavation (0.5km new, 227km existing), excavation (5km new, 193km existing), control control structures (7 regulators rehabilitation, 12 structures (5 regulators rehabilitation, 7 new regulators, 20 check structures/retention regulators, 9 check structures, 12 inlet/outlets, facilities, and 4 inlet/outlets) and 1 navigation lock) Land Acquisition 13.38 ha 42.95 ha Resettlement Scope 49 HH displaced (237 persons), 30 structures 100 HH displaced (500 persons), 76 structures and works displaced (149 persons), and 77 HH and works displaced (398 persons), and 166 losing agriculture land (500 persons) HH losing agriculture lands (1,282 persons) Persons Experiencing HH displaced: 49 HH, 237 persons HH displaced: 100 HH, 500 persons Major Impacts HH losing nonagriculture productive resources: HH losing nonagriculture productive resources: 20 HH, 149 persons 54 HH, 425 persons HH losing more than 10% agriculture land: HH losing more than 10% agriculture land: 52 HH, 341 persons 27 HH, 210 persons Total: 121 HH, 727 persons Total: 181 HH, 1,135 persons ha = hectare, HH = households, km = kilometer. Source: Asian Development Bank.
9. Socioeconomic Status of Affected Persons. According to the stated income, 17% and 45% of the households affected in their homestead, shops, ponds, and shrimp ghers have income below the poverty line in Chenchuri Beel and Narail subproject, respectively, with nine and seven households headed by women, respectively. Among the persons losing agriculture land, 19% fall below the poverty line in both subprojects, with 9 and 11 tenant farmers in Chenchuri Beel and Narail subproject, respectively.
10. Stakeholder Consultation and Entitlements. During the project preparatory stage, the Government, with the assistance of the consultants undertook consultation using participatory rural appraisal and focus group discussions, distributed copies of a local language brochure and followed the entitlement matrix shown in Table A16.1. After the consultation, appropriate mitigating measures and compensation packages were devised, following the RF. The RP as prepared will be refined further at the time of detailed design, submitted to ADB for approval, with full disclosure to APs and on the ADB website. The Project will encourage “self-relocation” by affected households, selecting replacement homestead land in the vicinity of their own. Additional measures will be taken to provide appropriate support to the livelihood restoration aspects of the project-affected people, with a focus on poor and vulnerable households, particularly those with female heads, with priority participation in the livelihood enhancement component of the Project, and targeted provision of employment for civil works and other opportunities created under the Project.
11. Implementation Responsibilities and Cost Estimates. The arrangement described in the RF is followed, including the implementation arrangements (engagement of local NGOs with supervision and support with the assistance of the consultants); disclosure, consultation, and grievance mechanisms, and monitoring and evaluation. The estimated cost for acquisition of land and assets, and the cost associated with involuntary resettlement are Tk25.2 million ($0.43 million) for Chenchuri Beel and Tk86.0 million ($1.47 million) for Narail. The Government will provide the entire fund for land acquisition and resettlement. The APs will receive compensation prior to award of civil works contracts.