Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 55671 - IN EMERGENCY PROJECT PAPER ON A Public Disclosure Authorized PROPOSED EMERGENCY RECOVERY CREDIT IN THE AMOUNT OF SDR 148.80 MILLION (US$220 MILLION EQUIVALENT) TO THE REPUBLIC OF INDIA FOR A Public Disclosure Authorized BIHAR KOSI FLOOD RECOVERY PROJECT August 12, 2010 Sustainable Development Unit India Country Management Unit South Asia Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective June 30, 2010) Currency Unit = Indian Rupees (INR) INR 46.13 = US$ 1 US$ 1.48 = SDR 1 FISCAL YEAR April 1 – March 31 ABBREVIATIONS AND ACRONYMS ARCS Audit Reports Compliance System AWP Annual Work Plans BDO Block Development Officers BAPEPS Bihar Aapada Punarwas Evam Punarnirman Society BME Benefit Monitoring and Evaluation BPCU Block Project Coordination Unit BPIU Block Project Implementation Unit BPL Below Poverty Line BRRDA Bihar Rural Road Development Agency BRLP Bihar Rural Livelihoods Project BRLS Bihar Rural Livelihood Promotion Society BRPNN Bihar Rajya Pul Nirman Nigam CAA&A Controller of Aid, Accounts and Audit CAS Country Strategy CBO Community Based Organization CCA Cultivable Command Area CGI Corrugated Galvanized Iron CID Community Institution Development CIF Community Institution Fund COM Community Operations Manual CPRs Common Property Resources CTMIS Computerized Treasury Management and Information Systems DA District Administration DEA Department of Economic Affairs DEM Digital Elevation Model DGS&D Director General of Supplies and Disposal DPCU District Project Coordination Unit EA Environmental Assessment EMP Environment Management Plan ESMF Environment and Social Management Framework FM Financial Management FMIS Flood Management Information System FMM Financial Management Manual FMTSC Financial Management and Technical Support Consultants FRBM Fiscal Responsibility and Budget Management i GAAP Governance and Accountability Action Plan GFDRR Global Facility for Disaster Reduction and Recovery GIS Geographic Information System GoB Government of Bihar GoI Government of India IAs Implementing Agencies IAY Indira Awas Yojana IBRD International Bank for Reconstruction and Development ICB International Competitive Bidding IDA International Development Association IUFRs Interim Unaudited Financial Reports LD Liquidated Damages LIDAR Light Detection and Ranging M&E Monitoring and Evaluation MDRs Major District Roads MIS Management Information System NCB National Competitive Bidding NDMA National Disaster Management Authority NDRF National Disaster Response Force NGO Non Governmental Organization NRSA National Remote Sensing Agency ODRC Owner Driven Reconstruction Collaborative PD Project Director PIU Project Implementation Unit PFS Project Financial Statements PFMC Procurement and Financial Management Consultants PM Project Management PMU Project Management Unit RAP Resettlement Action Plans RCD Road Construction Department RWD Rural Works Department SBDs Standard Bidding Documents SHG Self Help Group SRM Supervision Reporting and Monitoring TAF Technical Assistance TOR Terms of Reference TSC Total Sanitation Campaign VO Village Organization WRD Water Resources Department Vice President: Isabel M. Guerrero Country Director: Roberto Zagha Sector Director: John H. Stein Acting Sector Manager: William Kingdom Task Team Leaders: Christoph Pusch/Mandakini Kaul ii INDIA BIHAR KOSI FLOOD RECOVERY PROJECT CONTENTS Page A. Introduction ...................................................................................................................... 1 B. Recovery Strategy and Rationale for the Project ............................................................. 1 C. Bank Response: The Project ............................................................................................ 2 D. Appraisal of Project Activities ......................................................................................... 6 E. Implementation Arrangement and Financing Plan ........................................................... 8 F. Project Risks and Mitigating Measures .......................................................................... 11 G. Terms and Conditions for Project Financing ................................................................. 13 Annex 1: Detailed Description of Project Components ........................................................ 14 Annex 2: Results Framework and Monitoring ...................................................................... 22 Annex 3: Summary of Estimated Project Costs .................................................................... 27 Annex 4: Financial Management and Disbursement Arrangements ..................................... 28 Annex 5: Procurement Arrangements ................................................................................... 37 Annex 6: Implementation and Monitoring Arrangements .................................................... 45 Annex 7: Project Preparation and Appraisal Team Members ............................................... 49 Annex 8: Environmental and Social Safeguards Framework ................................................ 50 Annex 9: Economic and Financial Analysis ......................................................................... 59 Annex 10: Documents in Project Files .................................................................................. 65 Annex 11: Statement of Loans and Credits ........................................................................... 66 Annex 12: Country at a Glance ............................................................................................. 71 Annex 13: Map IBRD 37945................................................................................................. 73 iii INDIA BIHAR KOSI FLOOD RECOVERY PROJECT EMERGENCY PROJECT PAPER SOUTH ASIA SASDU Date: August 12, 2010 Team Leaders: Christoph Pusch/Mandakini Kaul Country Director: Roberto Zagha Sectors: General water, sanitation and flood Acting Sector Manager/Sector Director: protection sector (100%) William Kingdom/John H. Stein Themes: Natural disaster management (100%) Project ID: P122096 Environmental category: Partial Assessment Lending Instrument: Emergency Recovery Credit Project Financing Data [ ] Loan [X] Credit [ ] Grant [ ] Guarantee [ ] Other: For Loans/Credits/Others: Total IDA financing (US$m.): SDR 148.80 Million (US$ 220 million equivalent) Proposed terms: Standard IDA terms, with a maturity of 35 years, including a grace period 10 years. Financing Plan (US$m) Source Local Foreign Total BORROWER/RECIPIENT 39.00 0.00 39.00 International Development Association (IDA) 210.00 10.00 220.00 Total: 249.00 10.00 259.00 Borrower: Government of India Department of Economic Affairs Ministry of Finance, North Block, New Delhi, India – 110001 Tel: 23094913 Fax: 23092345 Responsible Agency: Bihar Aapada Punarwas Evam Punarnirman Society (BAPEPS) Estimated disbursements (Bank FY/US$m) FY 2011 2012 2013 2014 2015 Annual 30 60 60 50 20 Cumulative 30 90 150 200 220 Project implementation period: Start - September 15, 2010; End - February 14, 2014 Expected effectiveness date: September 15, 2010 Expected closing date: September 14, 2014 Does the project require any exceptions from Bank policies? Ref. Section Appraisal of Project Activities [ ]Yes [X] No Have these been approved by Bank management? [ ]Yes [X] No Does the project include any critical risks rated “substantial” or “high”? [X]Yes [ ] No Ref. Section Project Risks and Mitigating Measures iv Project development objective Ref. Section Bank Response The Project Development Objective is to support the flood recovery as well as future oriented risk reduction efforts of GoB through (i) reconstruction of damaged houses and road infrastructure (ii) strengthening the flood management capacity in Kosi Basin, (iii) enhancing livelihood opportunities of the affected people, and (iv) improving the emergency response capacity for future disasters. Project description Ref. Section Bank Response The project has the following components: A. Owner driven housing reconstruction of about 100,000 houses. B. Construction of about 90 bridges and culverts and reconstruction of 290 km of rural roads. C. Strengthening Flood Management Capacity focusing on building capacity on flood forecasting and flood erosion management and limited structural measures. D. Livelihood restoration and enhancement of affected population. E. Improving emergency response capacity for future emergencies by providing a Contingency Fund. E. Project Management and Technical Assistance. Which safeguard policies are triggered, if any? Ref. Section Appraisal of Project Activities OP 4.01 Environmental Assessment OP 4.11 Physical Cultural Resources OP 4.12 Involuntary Resettlement OP 7.50 Projects on International Waterways v A. Introduction 1. The Kosi river rises in China and drains the Everest massif, flowing off the Himalayas, across the Nepal plains into India to flow across Bihar. On August 18, 2008, the Kosi river burst through its eastern embankment 11 km upstream of the Kosi Barrage in Nepal, 8 km north of the Indian border. This created major flooding in Nepal and Bihar with about 3.3 million people affected in Bihar alone. 2. The 2008 Kosi floods are considered the worst flood disaster