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The World Bank Document of The World Bank FOR OFFICIAL lSE ONLY (7 9 . -' / xVt/2& Report No. 12813-IN Public Disclosure Authorized STAFF APPRAISALREPC72T INDIA Public Disclosure Authorized HARYANA RATER RESOURCESCONSOLIDATION PROJECT MARCH 3, 1994 Public Disclosure Authorized MICROGRAPHICO Report No: 12813 IN Type: SAR AgricultureOperations Division Country Department II South Asia Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not othewise be disclosed without World Bank authorization. Currenz Unit - Rupees (Rs.) US$l = Rs. 31.51/ FrI.gALYxmA Governmentof India, State - April 1 to March 31 WRIrMSWrpNp URE IMETRIC SyS) 2/ 1 Meter (m) = '.28 feet (ft) 1 kilometer (km) = 0.62 miles (mi) 1 hectare (ha) = 2.47 acres (ac) 1 million cubic meters (Mm3) = 810 acre-feet (ac-ft) I million acre-feet (MAP) = 1,235 Nm3 1 thousandmillion cubic feet (TMC) = 28.32 Mm3 1 cubic foot per second (cfs or cusec) = 0.028 Mm3 per second (cumec) I cfs = 102.9 m3lhr 1 ton = 1,000 kilograms (kg) SEAAON$ kharif Monsoon season rabi Dry/Winterseason The US Dollar/Rupeeexchange rate is subject to change. Conversionsin this report have been made at US$1.00 to Rs. 31.5, which representsthe projected exchange rate over the disbursementp'riod. 2/ The Metric System has been used in most cases However, India is still in the process of transitionto the metric system; non-metricunits are still widely used, and were also used in this report in cases in which a conversionto the metric system may confuse the reader. FOR0MCUL US ONLY ABBREVIATIONS AND ACRONYMS ATW Augmentation -.jewell AU Administration Unit BC Bhakra Canal CADA Command Area Development Authority CE Chief Engineer CEC Chief Engineer Coordination CU Construction Unit CWC Central Water Commission DIT Direct Irrigation Tubewell DPU Data Collection and Water Resources Planning Unit DRU Design and Research Unit EIC Engineer-in-Chief ERR Economic Rate of Return GDP Gross Domestic Product GOH Government of Haryana GOI Government of India HA Hectare HDOA Haryana Department of Agriculture HDOE Haryana Department of Environment HDOFi Haryana Department of Fisheries HDPH Public Works Department (Public Health; also known as the Haryana Department of Public Health) HID Haryana Irrigation Department HSEB Haryana State Electricity Board HSMITC Haryana State Minor Irrigation Tubewells Corporation HSPCB Haryana State Pollution Control Board ICB International Competitive Bidding LCB Local Competitive Bidding M Million MC Municipal Councils MIS Management Information System NGO Non-Government Organization NPV Net Present Value NTPC National Thermal Power Corporation NWMP National Water Management Project O&M Operation and Maintenance PBC Planning and Budgeting Committee QA Quality Assurance Office SAU State Agricultural University SOE Statement of Expenditure SWP State Water Plan SWRC State Water Resources Committee WRU Water Regulation Unit WSPS Water Services Policy Support WSU Water Services Unit WUA Water User Association WYC Western Yamuna Canal This documenthas a restricteddistribution and maybe used by recipientsonly in the performance of their officialduties. Its contents may not otherwisebe disclosedwithout World Bank authoriation. HAA WATER RESOURCE CNS LIDATION PROJECT Draft Staff Aprpaisl Report Table of Contents CREDIT AND PROJECT SUMMARY . I. WATER RESOURCES SECTOR Water Resources in India . .1 Development Priorities .... .. 1 The State of Haryana . 2 Experience with Past Bank Lending . 4 II. THE PROJEi' Rational,; for IDA Involvement and Origin . 5 Project Objectives and Design . 7 Project Description . 7 Project Investments . 8 Rehabilitation . 8 Modernization . 8 Improved Operation and Maintenance . 9 Institutional Support .......... 10 Policy Reforms . 11 Institutional Reform . 11 Operation and Maintenance . 12 Cost Recovery . 13 Beneficiary Participation . 13 Groundwater Regulation . 14 State Water Plan . I . 15 Expenditure Priorities . 15 Power Sector .................... 16 III. COST ESTIMATES, FINANCING AND DISB-URSEMENTS Project Costs and Financing ................ 16 Procurement . 17 Disbursement . 19 Retroactive Financing and Special Account . 20 Accounts and Audits .... ... 20 IV. PROJECT IMPLEMENTATIONt AND MONITORING Organization and Management ... ..... 20 Training and Technical Assistance . 21 Monitoring and Evaluation ... 21 Project Reviews and Reporting . 22 V. BENEFITS, JUSTIFICATION AND RISKS Project Benefits and Justification . 23 Economic and Financial Analysis . 24 Project Risks . 25 Environmental Impact and Land Acquisition . 25 VI. AGREEMENTS AND RECOMMENDATION................... 27 Annex 1 Project Costs Annex 2 Policy Reform Program Annex 3 Haryana Irrigation Department: Institutional Modifications Annex 4 Institutional Support Annex 5 Rehabilitation Component Annex 6 Modernization Component Annex 7 Technical Specifications Annex 8 Improved Operation and Maintenance Annex 9 Communications and Computer System Annex 10 Cost Allocation Recovery and Program Funding Annex 11 Farmer Participation in Irrigation Management Annex 12 State Water Plan Annex 13 Environment and Land Acquisition Annex 14 Economic and Financial Analysis Annex 15 Procurement Annex 16 Supervision and Implementation Plan Annex 17 Schedule of Disbursements Annex 18 Documents Available in Project File WATER RESOtIRCES C NR0LIDATION PROECT I. CREDIT AND PROJECT SUMMARY Borrower: India, Acting by its President. szecuting Agency: The State of Haryana. Amount: IDA Credit SDR 187.3 million (USS 258.0 million equivalent). Terus: IDA: Standard with 35 years maturity. Co-Lending feozs: Government of India would make the proceeds of the Credit available to the State of Haryana (GOH) under standard arrangemer.ts for developmental assistance to the States of India. GOI would assume the foreign exchange risk. Project Description: The project would be a sector investment loan, financing an agreed state-wide program to improve the water distribution and drainage systems, and upgrade institutional capacity for water management and planning. The project would emphasize the re-ordering of the state's public expenditure priorities, supported by institutional and administrat mrereforms and policy adjustments. The project would finance the following investments under the areas of the Bhakra Canal system and Western Yamuna Canal system (includingGurgaon Canal) of the state: (a) rehabilitation of the existing canal and drainage systems, and selectivelining of canals and watercourses;(b) w inn of canal and drainage systems and watercourses,replacement of the HathnikundBarrage, and construction/extensionof minors; (c) upgraded 2peration and maintAnannA (°&MN of the water distribution and drainage system; and (d) inntituttonal trengtheningto support administration, data collection,planning, design, beneficiary participation and formation of Water User Associations, research and training. Investments would be supported by reforms to reorganize the Haryana IrrigationDepartment (HID). O&M standards and procedures would be adjusted to improve irrigation efficiency and services to all consumers, enhance productivity levels, and implement full O&Mcost recovery. A water policy framework would be developed through multi-use water resourceplanning and formulation of a State Water Plan. Project 5enef its: The main expenditures under the project -- rehabilita- tion, modernization, and improving O0M -- would enhance operationalefficiency, and result in improved water use, improved irrigationand higher valued agriculturalproduction. Economic benefits would also result from reouced losses due to recurrent flooding. As importantly,the project would assist the state to transformHID from a constructionand irrigation oriented agency into a specializedwater resource management institution,and improve the ins3itution's financialviability. The policy reforms would help GOH and the private sector to allocate resourcesto higher priority investmentsin water resources development. Project Risks: There are three main risks to the project. The first risk relates to implementation of the large investment program within an agreed period of time. In the past, HID has demonstrated the ability to implement large, complex projects to high standards. To help maintain the past high standards, &A internal project Quality Assurance Unit would be established in HID during project implementation. The second risk is associated with HID's capabilitiesto sustain the proposed higher standardsof O&M of the canal and drainage system. HID will reorganizethe presently fragmented0&S functionsand the existing 0&M units will be strer.gthenedana better funded at all levels. Annual disbursementof project funds will be linked to expenditures and performance of O&M in the previous year. The third risk is related to GOH's capabilities to implementand sustain the proposed changes in O&M funding, and cost recovery of agriculturalpower and water services under the project. The cost recovery program is l .akedto an administrativereform through which a new unit in charge of programmingand budgeting,program tracking,cost accounting and service cost allocation would be created. Annual disbursements of project funds would also be linked to cost recovery. A specific action plan, agreed at appraisal, will be monitored closely during supervisionto help minimize project risks. atorat. PROnOat t¶!aatil: C=ntune t Qleal Foraign Total Lna Foreigm ?ntal ---- Rs M ------ ------- US$ m ------
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