India: Orissa Integrated Irrigated Agriculture and Water Management Investment Program – Project 1
Following India’s National Water Policy, the Orissa State Government (OSG) adopted the State Water Plan of 2004 to establish a prioritized investment framework, set up a legal framework for water user associations, increase irrigation tariffs and operations and maintenance fund allocations, and strengthen capacities of the Department of Water Resources. In 2007, OSG also revised the State Water Policy of 1994 to intensify participatory irrigation management combined with proposals for full O&M cost recovery from users to initiate steps for the adoption of the integrated water resources management. Technical assistance studies and project and sector loans from two major multilateral agencies followed—the World Bank in 1986 and the Asian Development Bank (ADB) in 2001. These triggered opportunities to develop and sustain water resources infrastructure and its management through critical policy and institutional reforms. The Orissa Integrated Irrigated Agriculture and Water Management Investment Program stemmed from these interventions.
ADB approved a project preparatory technical assistance in September 2004 and was implemented from August 2006 to April 2007. It recommended funding for the program under ADB’s multitranche financing facility modality with four or more tranches or projects. Project 1 is the subject of this validation. Total cost of the investment program was estimated at $268.8 million with ADB financing $188.2 million, OSG some $73.4 million, and beneficiaries $7.2 million.