India: ORISSA Integrated Irrigated Agriculture & Water Management Investment Program - Project 1

Sovereign Project | 38411-023

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 ORISSA Integrated Irrigated Agriculture & Water Management Investment Program - Project 1
Project Number 38411-023
Country India
Project Status Approved
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 2444-IND: ORISSA Integrated Irrigated Agriculture & Water Management Investment Program - Project 1
Ordinary capital resources US$ 16.50 million
Loan 8240-IND: ORISSA Integrated Irrigated Agriculture & Water Management Investment Program - Project 1
OPEC Fund for International Development US$ 30.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector Agriculture, natural resources and rural development - Agricultural drainage - Irrigation - Rural water policy, institutional and capacity development
Gender Equity and Mainstreaming Effective gender 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 high rural poverty. This has emerged as a major concern. Growth in agriculture and related rural non-farm sectors has been stagnant and the setor is making a slow transformation to more intensive and high-value production and processing systems. Orissa is one of the poorest states in India, and despite recent acceleration of its annual economic growth rates at 7%, disparity against national average is still widening. The Orissa State Government (OSG) has taken steps to improve the situation and to support the process, it has progressively developed the policy, planning and institutional basis for the irrigation and wter resources sector since the late 1990s. 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 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 Program is desined to meet this need, with an accountability to WUAs, further refinement of the WUA legal framework, and steps towards sustainable o&M financing and IWRM. 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. The MFF modality is most suitable for the 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 Program.
Impact

1. Enhanced economic growth and reduced poverty in the selected river basins with direct benefit to 450,000 people in the tranche-1 subproject area (70,000ha).

2. Initial institutionalization of effective mechanisms for Participatory Irrigation Management (PIM)

Project Outcome
Description of Outcome

1. Enhanced productivity, water use efficiency, and sustainability of irrigated agriculture in the selected existing schemes in 70,000 ha

2. improved institutional performance of irrigation service delivery with empowered WUAs

Progress Toward Outcome Civil works have recently been completed for the four main subprojects (one major and three medium irrigation systems), except for two sections of the Taladanda subproject that will be completed after loan closure in September 2015. Initial trends for improving agricultural productivity are positive, with a 37.5% noted increase in cropping intensity (compared to the 20% target) and a 172% increase in crop production (compared to a 50% target). 121 WUAs have been strengthened, and operation and maintenance (O&M) and water management planning is ongoing.
Implementation Progress
Description of Project Outputs

Component A: Productive and sustainable irrigated agriculture management systems -

A-1. Participatory Planning and WUA Strengthening

A-2. Irrigation and associated infrastructure

A-3. Agriculture Development and Livelihood Enhancement following micro-plans provided, and targets achieved

A-4. Sustainable O&M Systems Established

Component B. Institutions Strengthened and Project Management Systems

B-1. Policy, Planning and Legal Framework

B-2. DOWR Institutional Setup, Structure, Skill Mix, and Business Processes Strengthened

B-3. Systems to Support Sustainable O&M

B-4. Operationalizing IWRM

B-5. Project Management System

B-6. Training/Capacity Development

Status of Implementation Progress (Outputs, Activities, and Issues)

Component A: All subprojects and minor lift irrigation (MLI) schemes were designed and implemented with participation of pani panchayats (water users associations). For each of the 121 pani panchayats, a micro-plan was prepared and implemented, covering agriculture, command area development, sub-minor canal works, organizational development, and O&M and water management. Elections are complete in 59 of the 121 pani panchayats. Sub-committees in planning, works, water management, and audit are being formed and members are being trained. Scheme-wise O&M rules and water distribution plans are being prepared for all four subprojects; the one for Sunei is now complete.

Component B: The project's road map for reforms calls for strengthening the Department of Water Resources and its Participatory Irrigation-Command Area Development (PIM-CAD) Directorate and Subproject Implementation Offices for improved irrigation system performance. The following activities have been completed: State water policy revision, establishment of PIM-CAD Directorate, refinement of Pani Panchayat Act and Rules, participatory irrigation management activities through Pani Panchayats, and the capacity development plan. The following activities are planned to continue under Project 2 of the investment program (see data sheet for Loan 3265): integrated water resources management, basin planning and operationalizing the Baitarani River Basin Organization, and strengthening Odisha Water Planning Organization in river basin modeling.

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 A
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects Initial environmental examinations (IEEs) were prepared for the seven subprojects proposed for the first PRF, which were classified as environmental category B, along with an environmental assessment and review framework (EARF), following the ADB's Environment Policy (2002). Overall, the subprojects will have positive impacts on the environment, including improved water availability and water use efficiency, increased agriculture production, and institutional system of PIM to manage and distribute water efficiently. Potential negative environmental impacts include: (i) increased competition in water use within the subprojects and with other water uses; (ii) deterioration of water quality due to agriculture intensification; and (iii) impacts during construction of irrigation and associated infrastructure. These impacts are mitigated by: (i) sufficient consultation at the scheme level to develop operational plans and instruments agreeable to all the concerned WUAs; (ii) operationalizing effective coordination mechanisms among the concerned water users at times of drought; (iii) introducing integrated pest management and effective soil nutrient management; and (iv) ensuring safe and environmentally sound construction practices. Environmental capacity development for the Investment Program will be supported by having an environmental cell in the PIM/CAD directorate of DOWR, which will be strengthened by the ISPM consultants.
Involuntary Resettlement Resettlement: The Project-1 will only involve the renovation of the existing irrigation infrastructure. For the for major and medium subprojects included in tranche-1, the existing right of way is sufficient to undertake renovation works in all other schemes, with no affected encroachment. For the purpose of the Investment Program, a resettlement framework (RF) has been prepared following the ADB's Policy on Involuntary Resettlement (1995) and agreed by OSG. A resettlement plan for the Mahanadi Chitropala Island Irrigation scheme was prepared and implemented. Infrastructure improvements for Mahanadi Chitropala Island will be financed under Project-2.
Indigenous Peoples Indigenous Peoples: Orissa has relatively high percentage of tribal population compared with other States: 22.2% of its population. Higher concentration is seen in inland districts including those covered under the Investment Program. An approved Indigenous Peoples Development Framework will be the basis for developing indigenous peoples development plans for schemes having project impacts on affected tribal people. Regarding the schemes studied for the first PRF, three medium schemes were found to have high percentage of tribal populations at 23%, 26%, and 63%. Indigenous peoples specific actions were prepared for them to enhance the positive impacts and to avoid adverse impacts, if any. The specific actions include: (i) promoting due representation of indigenous peoples in the concerned WUAs; (ii) undertaking separate information campaigns and need assessment, and pursuing that their interests are met in the WUA development and program delivery process; (iii) forming tribal peoples groups within the WUAs and empowering them with establishing linkage to the existing OSG programs and supporting specific activities under the Investment Program; and (iv) developing WUA capacities to address the needs of tribal farmers.
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).
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.
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 procedures acceptable to ADB. Single-stage, two envelope bidding with post qualification will be adopted. In addition, community works costing less than $10,000 may be directly contracted with the concerned Water Users Association that has participated in the planning and design and will take over O&M. In procuring goods and related services, ICB procedures will be used if the estimated cost is at least $1 million and NCB procedures if the cost is between $0.1 million and $1 million, and shopping if the estimated contract amount is less than $0.1 million.
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 OdishaMr. P. Bhadracepdpmu@gmail.comDepartment of Water Resources, State Government of Orissa
Timetable
Concept Clearance 07 Sep 2007
Fact Finding 10 Sep 2007 to 28 Sep 2007
MRM 21 Nov 2007
Approval 08 Oct 2008
Last Review Mission -
PDS Creation Date 23 Feb 2009
Last PDS Update 05 Aug 2015

Loan 2444-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Sep 2008 25 Feb 2009 04 Jun 2009 30 Sep 2013 30 Sep 2015 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 36.40 Cumulative Contract Awards
ADB 16.50 26 Sep 2008 16.34 0.00 99%
Counterpart 19.90 Cumulative Disbursements
Cofinancing 0.00 26 Sep 2008 15.09 0.00 91%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory - - Satisfactory

Loan 8240-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Oct 2008 12 Mar 2009 29 May 2009 31 Oct 2013 30 Sep 2015 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 30.00 Cumulative Contract Awards
ADB 0.00 08 Oct 2008 0.00 24.92 83%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 30.00 08 Oct 2008 0.00 19.61 65%

TA 7131-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Sep 2008 30 Mar 2009 30 Mar 2009 30 Sep 2009 31 Dec 2010 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 0.00 0.00 0.00 0.00 0.00 0.00 18 Sep 2008 222,449.00
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory - - Satisfactory
Title Document Type Document Date
Orissa Integrated Irrigated Agriculture and Water Management Investment Program: Procurement Plan Procurement Plans May 2015
Orissa Integrated Irrigated Agriculture and Water Management Investment Program (Project 1): Project Information Documents Produced Under Grant/Loans/TA Dec 2011
Orissa Integrated Irrigated Agriculture and Water Management Investment Program: Project News (Vol. 1 Documents Produced Under Grant/Loans/TA Dec 2011
Orissa Integrated Irrigated Agriculture and Water Management Investment Program: Project News (Vol. 1 Documents Produced Under Grant/Loans/TA Jan 2011
ORISSA Integrated Irrigated Agriculture & Water Management Investment Program - Project 1: Consultant's Report Consultants' Reports Jan 2011
Orissa Integrated Irrigated Agriculture and Water Management Investment Program - Facility Concept and Project 1 Facility Administration Manual Nov 2009
MFF - Orissa Integrated Irrigated Agriculture and Water Management Investment Program Loan Change in Scope, Amount, and Implementation Arrangements Feb 2009
Loan Agreement for Orissa Integrated Irrigated Agriculture and Water Management Investment Program - Project 1 between India and Asian Development Bank dated 25 February 2009 Loan Agreement (Ordinary Resources) Feb 2009
Project Agreement for Orissa Integrated Irrigated Agriculture and Water Management Investment Program -- Project 1 between Asian Development Bank and State of Orissa dated 25 February 2009 Project/Program Agreement Feb 2009

Evaluation Documents

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