India: MFF - ORISSA Integrated Irrigated Agriculture & Water Management Investment Program (Facility Concept)

Sovereign Project | 38411-013

Summary

The Project aims to (i) enhance productivity and sustainability of existing underutilized and underperforming major, medium, and minor irrigation systems with participatory irrigation management, and (ii) strengthen institutions for sustainable irrigation service delivery and associated support services, and for initiating operations for integrated water resources management on the basis of river basins. Its tentative scope includes (i) participatory scheme design and WUA strengthening; (ii) irrigation and associated infrastructure; (iii) agriculture and fishery development support; (iv) establishing sustainable O&M mechanisms; and (iv) institutional strengthening and project management.

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Project Name MFF - ORISSA Integrated Irrigated Agriculture & Water Management Investment Program (Facility Concept)
Project Number 38411-013
Country India
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
MFF Facility Concept 0022-IND: MFF - ORISSA Integrated Irrigated Agriculture & Water Management Investment Program (Facility Concept)
Ordinary capital resources US$ 188.20 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Agriculture and Natural Resources - Irrigation
Gender Equity and Mainstreaming
Description The Project aims to (i) enhance productivity and sustainability of existing underutilized and underperforming major, medium, and minor irrigation systems with participatory irrigation management, and (ii) strengthen institutions for sustainable irrigation service delivery and associated support services, and for initiating operations for integrated water resources management on the basis of river basins. Its tentative scope includes (i) participatory scheme design and WUA strengthening; (ii) irrigation and associated infrastructure; (iii) agriculture and fishery development support; (iv) establishing sustainable O&M mechanisms; and (iv) institutional strengthening and project management.
Project Rationale and Linkage to Country/Regional Strategy

India's rapid overall economic growth is contributing to growing urban-rural disparity amidst chronic and high rural poverty. This has emerged as a major development policy concern. Growth in agriculture and related rural non-farm sectors has been stagnant, and the sector is making a slow transformation to more intensive and high-value production and processing systems. Bottlenecks in both rural and urban water resources are also increasingly seen as a major constraint to economic growth. In this context, irrigation is drawing major attention because of its high share (84%) of total water use, as well as its crucial importance for agriculture and rural growth. A significant part of the existing irrigation infrastructure remains underutilized with low water use efficiency and insufficient O&M. The Government of India is promoting state-level sector reforms through its National Water Policy (NWP) 1987 and 2002, which advocates PIM and IWRM to promote and sustain more efficient water use.

Orissa is one of the poorest states in India. Despite recent acceleration of its annual economic growth rates, disparity against national average is still widening. Agriculture is the backbone of the economy and the central focus of the strategy of the Orissa state government (OSG) to reduce rural poverty. In this context, the low performance of existing irrigation infrastructure seriously constrains agricultural productivity and diversification. While 45% of agriculture land is equipped with irrigation facilities, over 30% within this area hardly receives irrigation and the rest suffering from irregular water supply, due to poor system design, inefficient operation, lack of field channels, limited accountability in system management to farmers, and insufficient maintenance. Following the NWP, the OSG is prioritizing the improved performance of existing infrastructure in partnership with WUAs, as the fastest and most cost-effective way to expand reliable irrigation and serve as a pathway to intensified, high value agriculture.

To support the process, the OSG has progressively developed the policy, planning and institutional basis for the irrigation and water resources sector since the late 1990s. Specific steps taken include (i) promulgation of the State Water Policy and State Water Plan adopting PIM and IWRM principles, (ii) establishment of a legal framework for WUAs, (iii) substantial increase in the water tariff and O&M financing, and (iv) capacity strengthening of the Department of Water Resources (DOWR). In line with this, OSG initiated formation of WUAs, renovation of irrigation infrastructure, and progressive transfer the O&M responsibility to WUAs. So far, this has reached 40% of the total command areas under public irrigation systems. The overall impacts of the process are positive, particularly where WUAs are sufficiently strengthened and provided with well functioning infrastructure, although capacity development of WUAs and DOWR requires long-term support and partnership.

The OSG also initiated comprehensive economic reforms in the early 2000s, aiming at inclusive growth with stronger public sector accountability and community and private sector participation. Within this context, the OSG is keen to further advance PIM in the remaining schemes, and to incorporate the lessons learned so far, as well as the best practices from other Asian countries and Indian states to attain higher impacts in terms of productivity and sustainability. The Investment Program is designed to meet this need, with an improved institutional basis including enhanced DOWR accountability to WUAs, further refinement of the WUA legal framework, and steps towards sustainable O&M financing and IWRM. Investment Program delivery and governance will also be upgraded to ensure sufficient WUA empowerment upfront, infrastructure quality, integration with the agriculture value chain and support systems, and sound provider-recipient relations for O&M. Prepared as a part of the investment plan to operationalize PIM state-wide, the Investment Program will support the realization of sound sector operations from the OSG initiative.

The MFF modality is most suitable for the Investment Program. Building on the progressively developed policy and institutional basis, MFF provides an opportunity for (i) flexibility in investment decision making based on subproject readiness, in particular ensuring sound progress in planning and WUA institutional building; (ii) higher implementation quality, reflecting lessons learned and progressive and incremental improvement of the institutional basis during the program period; (iii) longer term program engagement allowing sufficient monitoring of critical institutional development process, and (iv) wider program coverage that allows more significant sector impacts under the proposed Investment Program.

Impact

Enhanced economic growth and reduced poverty in the selected river basins in Orissa with direct benefit to 1.7 million people in the subproject area

Institutionalization of effective mechanisms to put into operation PIM-based agriculture growth

Project Outcome
Description of Outcome

Enhanced productivity, water-use efficiency, and sustainability of irrigated agriculture in the selected

existing schemes in the river basins having 215,000 hectares (ha) designed command area

Improved institutional performance of irrigation service delivery (with PIM) and water resources management (with IWRM)

Progress Toward Outcome First tranche (Loan 2444-IND) was approved on 26 Sep 2008 and activities are ongoing. Please see Loan 2444 website for details.
Implementation Progress
Description of Project Outputs

A. Productive and Sustainable Irrigated Agriculture Management Systems

1. Participatory planning and WUA strengthening

(a) Participatory scheme planning with feasibility studies and SIP

(b) WUA micro plans

(c) Strengthened WUAs: viable WUAs set up to become effective community organization, ready to receive

investment support and to enhance agriculture production and women's participation

2. Irrigation and associated infrastructure including CAD: good quality infrastructure designed and constructed, following appraised plan and WUA micro plans

3. Agriculture development and livelihood enhancement: stipulated services in SIPs and micro plans provided, and set targets are achieved

4. Sustainable O&M systems established: irrigation schemes operated and maintained on a sustainable basis

B. Institutions Strengthened and Project Management Systems Operational

1. Policy, planning, and legal framework

(a) State Water Policy revised and implemented, with regular review by WRB

(b) State Water Plan updated with basin plans for the four northern river basins

(c) WUA Act and Rule refined for more sustainable and inclusive PIM

2. DOWR institutional setup, structure, skill mix, and business processes strengthened

(a) Institutional development vision and strategy refined

(b) Permanent PIM directorate established

(c) Quality control cell established

(d) DOWR CDP refined

(e) WALMI reforms with autonomy

3. Systems to support sustainable O&M

(a) Fund allocation following FC recommendations

(b) Water rates revised to meet the allocation needs

(c) Collection improved with WUA involvement

(d) Land records improved providing WUA-specific data for collection and

demand

(e) Scheme MIS for O&M performance monitoring and planning

(f) DOWR establishes links between water rate collection and allocation

(g) Pilot delegation of water tariff collection and retention by WUAs

4. Progress towards IWRM becoming operational

(a) Appropriate IWRM functions and institutional arrangements defined

(b) Institutions established to make IWRM operational

(c) Participatory RBO established with DSS

5. Project management system established and made fully operational

- DOWR offices

- Line agencies

- Local governments

- WUAs

- NGOs

- Private providers

6. Training and Capacity Development: capacities of project institutions are strengthened through training (for project management, PIM, IWRM, and agriculture development)

Status of Implementation Progress (Outputs, Activities, and Issues) Activities under the first tranche are ongoing. Please see Loan 2444 website for details.
Geographical Location The subprojects will be located within Brahmani, Baitarani, Burhabalanga, and Subernarekha River basins, and a part of the Mahanadi River delta areas.
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects Please see the Loan 2444 website for the details on tranche-1 subprojects.
Involuntary Resettlement Please see the Loan 2444 website for the details on tranche-1 subprojects.
Indigenous Peoples Please see the Loan 2444 website for the details on tranche-1 subprojects.
Stakeholder Communication, Participation, and Consultation
During Project Design The Program places strategic emphasis on the beneficiary participation with due attention to the diversity of their interests and possible vulnerability (e.g., tail end farmers) under the framework of the water user associations (WUAs). Please see the Loan 2444 website for the details on tranche-1 subprojects.
During Project Implementation Under the program there will be policy measures to equalize opportunities and access, to support equal representation of head, middle, and tail reach farmers and increased participation of vulnerable groups including women. Please see the Loan 2444 website for the details on tranche-1 subprojects.
Business Opportunities
Consulting Services Consultants will be hired for institutional development and capacity building, project management, design and construction monitoring, and benefit monitoring. Agencies or institutions including established registered NGOs will also be engaged for participatory planning, WUA strengthening, minor work execution by WUAs, agriculture and livelihood programs, and facilitation and monitoring of resettlement plans. All consultants and NGOs will be engaged according to ADB's Guidelines on the Use of Consultants.
Procurement Procurement financed from the ADB loans under the MFF will conform to ADB's Procurement guidelines. Civil works contracts of at least $10 million will be through International Competitive Bidding, and those costing less than $10 million will be under National Competitive Bidding procedure acceptable to ADB. Single-stage, two envelope bidding with post qualification will be adopted for all community works costing less than $100,0000 may be directly contracted with the concerned Water Users Association.
Responsible ADB Officer Cynthia (Cindy) Malvicini
Responsible ADB Department South Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SARD
Executing Agencies
Department of Water Resources, Gov't of OdishaRajiv Bhavan, Bhubaneshwar, Orissa
Timetable
Concept Clearance 07 Sep 2007
Fact Finding 10 Sep 2007 to 28 Sep 2007
MRM 21 Nov 2007
Approval 18 Sep 2008
Last Review Mission -
PDS Creation Date 27 Feb 2006
Last PDS Update 27 Feb 2015

MFF Facility Concept

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 80.60 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 80.60 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

MFF Facility Concept 0022-IND

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 268.80 Cumulative Contract Awards
ADB 188.20 - 0.00 0.00 %
Counterpart 80.60 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
MFF - Orissa Integrated Irrigated Agriculture and Water Management Investment Program (Facility Concept) Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks Nov 2007

Evaluation Documents

See also: Independent Evaluation

No documents found.


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