FOR OFFICIAL USE ONLY Report No: PAD2565 Public Disclosure Authorized INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN IN THE AMOUNT OF US$88 MILLION Public Disclosure Authorized TO INDIA FOR AN ASSAM INLAND WATER TRANSPORT PROJECT November 19, 2019 Public Disclosure Authorized Transport Global Practice 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 May 30, 2019) Currency Unit = Indian Rupee (INR) INR 70.00 = US$1 FISCAL YEAR April 1 – March 31 Regional Vice President: Hartwig Schafer Country Director: Junaid Kamal Ahmad Global and Regional Director: Guangzhe Chen Practice Manager: Shomik Raj Mehndiratta Task Team Leader(s): Atul Agarwal, Ninan Oommen Biju ABBREVIATIONS AND ACRONYMS AFS Annual Financial Statement AIWTDS Assam Inland Water Transport Development Society AIWTP Assam Inland Water Transport Project AIWTRA Assam Inland Water Transport Regulatory Authority APC Assam Ports Company ASC Assam Shipping Company ASPD Additional State Project Director CAPEX Capital Expenditure CE Citizen Engagement CPF Country Partnership Framework CTC Crew Training Center DIWTA Directorate of Inland Water Transport Assam DLI Disbursement-linked Indicator DLR Disbursement-linked Result EEP Eligible Expenditure Program EIA Environment Impact Assessment EIRR Economic Internal Rate of Return EMF Environmental Management Framework EMP Environmental Management Plan ER&SAR Emergency Response, Search and Rescue System/Unit FGD Focus Group Discussion FM Financial Management GB Governing Body GBV Gender-Based Violence GC General Consultant GDP Gross Domestic Product GHG Greenhouse Gas GoA Government of Assam GoI Government of India GRM Grievance Redress Mechanism GRS Grievance Redress Service ICC Internal Complaints Committee IEC Information, Education, and Communication IFR Interim Financial Report IPDF Indigenous Peoples Development Framework IPDP Indigenous Peoples Development Plan IPF Investment Project Financing ISDP Integrated Strategic Development Plan ISM Implementation Support Mission IVA Independent Verification Agency IWAI Inland Waterways Authority of India IWT Inland Water Transport PDO Project Development Objective PGC Project Guidance Council PIU Project Implementation Unit PMU Project Management Unit PPF Project Preparation Facility PPSD Project Procurement Strategy for Development PRAMS Procurement Risk Assessment and Mitigation RA Regulatory Authority RAP Resettlement Action Plan RPF Resettlement Policy Framework SHG Self-Help Group SIA Social Impact Assessment SMF Social Management Framework SMP Social Management Plan SOP Standard Operating Procedure SPD State Project Director STEP Systematic Tracking of Exchanges in Procurement ToR Terms of Reference TSSC Technical Services and Supervision Consultant VOT Value of Time The World Bank Assam Inland Water Transport Project (P157929) Table of Contents DATASHEET ........................................................................................................................... 1 I. STRATEGIC CONTEXT ...................................................................................................... 9 A. Country Context................................................................................................................................ 9 B. Sectoral and Institutional Context .................................................................................................... 9 C. Relevance to Higher Level Objectives ............................................................................................. 12 II. PROJECT DESCRIPTION .................................................................................................. 13 A. Project Development Objective ..................................................................................................... 13 B. Project Components ....................................................................................................................... 14 C. Project Beneficiaries ....................................................................................................................... 16 D. Project Financing ............................................................................................................................ 16 E. Results Chain ................................................................................................................................... 17 F. Rationale for Bank Involvement and Role of Partners .................................................................... 18 G. Lessons Learned and Reflected in the Project Design .................................................................... 19 III. IMPLEMENTATION ARRANGEMENTS ............................................................................ 20 A. Institutional and Implementation Arrangements .......................................................................... 20 B. Monitoring and Evaluation ............................................................................................................. 20 C. Sustainability ................................................................................................................................... 20 IV. PROJECT APPRAISAL SUMMARY ................................................................................... 21 A. Technical, Economic and Financial Analysis ................................................................................... 21 B. Fiduciary .......................................................................................................................................... 24 C. Safeguards ...................................................................................................................................... 29 D. Gender Development ..................................................................................................................... 34 V. KEY RISKS ..................................................................................................................... 37 VI. RESULTS FRAMEWORK AND MONITORING ................................................................... 38 VII. INDICATIVE TERMS AND CONDITIONS FOR THE GUARANTEE ......................................... 58 ANNEX 1: Implementation Arrangements and Support Plan ................................................. 59 ANNEX 2: Project Components and Cost .............................................................................. 61 ANNEX 3: Technical Analysis ................................................................................................ 66 ANNEX 4: Economic Analysis................................................................................................ 70 The World Bank Assam Inland Water Transport Project (P157929) DATASHEET BASIC INFORMATION BASIC_INFO_TABLE Country(ies) Project Name India Assam Inland Water Transport Project Project ID Financing Instrument Environmental Assessment Category Investment Project P157929 A-Full Assessment Financing Financing & Implementation Modalities [ ] Multiphase Programmatic Approach (MPA) [ ] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [ ] Fragile State(s) [✓] Disbursement-linked Indicators (DLIs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster [ ] Alternate Procurement Arrangements (APA) Expected Approval Date Expected Closing Date 13-Dec-2019 31-Dec-2024 Bank/IFC Collaboration No Proposed Development Objective(s) The objectives of the Project are to: (a) improve passenger ferry infrastructure and service in Assam, and (b) improve the institutional capacity and framework for inland water transport in Assam Page 1 of 75 The World Bank Assam Inland Water Transport Project (P157929) Components Component Name Cost (US$, millions) Institutional, regulatory and safety strengthening 21.00 Fleet safety improvements and modernization 25.00 Project Management Support 9.00 Improvement in terminal infrastructure 55.00 Organizations Borrower: India Implementing Agency: Transport Dept., Govt. of Assam, Dispur, Guwahati (Assam), India PROJECT FINANCING DATA (US$, Millions) SUMMARY-NewFin1 Total Project Cost 110.00 Total Financing 110.00 of which IBRD/IDA 88.00 Financing Gap 0.00 DETAILS-NewFinEnh1 World Bank Group Financing International Bank for Reconstruction and Development (IBRD) 88.00 Non-World Bank Group Financing Counterpart Funding 22.00 Borrower/Recipient 22.00 Expected Disbursements (in US$, Millions) WB Fiscal Year 2020 2021 2022 2023 2024 2025 Page 2 of 75 The World Bank Assam Inland Water Transport Project (P157929) Annual 1.93 7.63 13.36 26.02 36.64 2.42 Cumulative 1.93 9.56 22.92 48.94 85.58 88.00 INSTITUTIONAL DATA Practice Area (Lead) Contributing Practice Areas Environment, Natural Resources & the Blue Economy, Urban, Transport Resilience and Land, Water Climate Change and Disaster Screening This operation has been screened for short and long-term climate change and disaster risks Gender Tag Does the project plan to undertake any of the following? a. Analysis to identify Project-relevant gaps between males and females, especially in light of Yes country gaps identified through