Document of The World Bankdocuments.worldbank.org/curated/en/618131468267357616/...MWRRA Maharashtra...

Document of

The World Bank

Report No: ICR00001350

IMPLEMENTATION COMPLETION AND RESULTS REPORT

(IBRD-47960)

ON A

LOAN

IN THE AMOUNT OF US$325 MILLION

TO THE

REPUBLIC OF INDIA

FOR THE

MAHARASHTRA WATER SECTOR IMPROVEMENT PROJECT

September 26, 2014

Global Practice Water

India Country Management Unit

South Asia Region

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CURRENCY EQUIVALENTS

Currency Unit = Indian Rupee

At Appraisal Rs.1 = US$0.0228, US$1 = Rs.43.80

At Completion Rs.1 = US$0.0200, US$1 = Rs.60.12

.

FISCAL YEAR

April 1 – March 31

ABBREVIATIONS AND ACRONYMS

AD Agriculture Department ATMA Agriculture Technology

Management Agency

BNWPP Bank-Netherlands Water

Partnership Program

CAS Country Assistance Strategy

CCA Culturable Command Area

CBGWMUP Community Based Ground Water

Management Use Plan CLA Canal Level Association

C&AG Comptroller and Auditor General

DLA Distributary Level Association

DSRP Dam Safety Review Panel FMM Financial Management Manual

FPO Farmer Producer Organization

GAP Gender Action Plans

GOM Government of Maharashtra GPLC Gram Panchayat Level

Committees

IBRD International Bank for

Reconstruction and Development ICIS Integrated Computer Information

System

IDC Irrigation Development

Corporation IEC Information, Education and

Communication

INM Integrated Nutrient Management

IPM Integrated Pest Management ISEA Integrated Social and

Environmental Assessment

KPI Key Performance Indicator

KVM Krishi Vigyan Mandal

M&E Monitoring and Evaluation

MKVDC Maharashtra Krishna Valley

Development Corporation

MKVWRC Maharashtra Krishna Valley Water Resources Corporation

MWRRA Maharashtra Water Resources Regulatory Authority

MMISF Maharashtra Management of

Irrigation Systems by Farmers Act

NGO Non-Governmental Organization O&M Operation and Maintenance

PDO Project Development Objective

PER Public Expenditure Review

PIM Participatory Irrigation Management

PLA Project Level Association

PPMU Project Preparation &

Management Unit PSC Project Steering Committee

PSG Policy Support Group

QER Quality Enhancement Review

RAP Rapid Appraisal Process RAEMTI Regional Agricultural Extension

Management Training Institute

R&R Resettlement and Rehabilitation

RBA River Basin Agency SAEMTI State Agricultural Extension

Management Training Institute

SE Superintending Engineer

SEMF Social and Environment Management Framework

SEMP Social and Environmental

Management Plan

ST Scheduled Tribe TA Technical Assistance

TDP Tribal Development Plan

VSG Village Support Group

WALMI Water and Land Management Institute

WDE Water Delivery Efficiency

WRD Water Resources Department

WUA Water User’s Association WUE Water Use Efficiency

Vice President : Philippe H. Le Houerou

Country Director : Onno Ruhl

Practice Manager : William D. Kingdom

Task Team Leader : Jun Matsumoto

ICR Team Leader : Ajay Markanday

REPUBLIC OF INDIA

Maharashtra Water Sector Improvement Project

CONTENTS

Data Sheet

A. Basic Information ............................................................................................................ i

B. Key Dates ........................................................................................................................ i

C. Ratings Summary ............................................................................................................ i

D. Sector and Theme Codes................................................................................................ ii

E. Bank Staff ....................................................................................................................... ii

F. Results Framework Analysis ......................................................................................... iii

G. Ratings of Project Performance in ISRs ...................................................................... vii

H. Restructuring ............................................................................................................... viii

I. Disbursement Profile ...................................................................................................... x

1. Project Context, Development Objectives and Design ............................................... 1

2. Key Factors Affecting Implementation and Outcomes .............................................. 4

3. Assessment of Outcomes .......................................................................................... 11

4. Assessment of Risk to Development Outcome ......................................................... 14

5. Assessment of Bank and Borrower Performance ..................................................... 15

6. Lessons Learned........................................................................................................ 17

7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners........... 18

Annex 1. Project Costs and Financing........................................................................ 19

Annex 2. Outputs by Component ............................................................................... 20

Annex 3. Economic and Financial Analysis ............................................................... 39

Annex 4. Bank Lending and Implementation Support/Supervision Processes .......... 42

Annex 5. Beneficiary Survey Results ........................................................................... 45

Annex 6. Stakeholder Workshop Report and Results ................................................ 46

Annex 7. Summary of Borrower's ICRR .................................................................... 47

Annex 8. Comments of Co-financiers and Other Partners/Stakeholders ................... 49

Annex 9. List of Supporting Documents .................................................................... 50

MAP .................................................................................................................................. 51

i

Data Sheet

A. Basic Information

Country: India Project Name: Maharashtra Water Sector

Improvement Project (MWSIP)

Project ID: P084790 L/C/TF Number(s): IBRD-47960

ICR Date: 09/26/2014 ICR Type: Core ICR

Lending Instrument: SIL Borrower: Government of India (GoI)

Original Total

Commitment: USD325.00M Disbursed Amount: USD290.77M

Revised Amount: USD310.00M

Environmental Category: A

Implementing Agencies: Water Resources Department, Government of Maharashtra (GoM)

Co-financiers and Other External Partners:

B. Key Dates

Process Date Process Original Date Revised / Actual

Date(s)

Concept Review: 08/18/2003 Effectiveness: 09/29/2005 09/29/2005

Appraisal: 12/20/2004 Mid-term

Review: 12/31/2007 03/06/2009

Approval: 06/23/2005 Restructuring 03/21/2012

03/10/2014

Closing: 03/31/2012 03/28/2014

C. Ratings Summary

C.1 Performance Rating by ICR

Outcomes: Moderately Satisfactory

Risk to Development Outcome: Moderate

Bank Performance: Moderately Satisfactory

Borrower Performance: Moderately Satisfactory

C.2 Detailed Ratings of Bank and Borrower Performance (by ICR)

Bank Ratings Borrower Ratings

Quality at Entry: Moderately

Satisfactory Government: Moderately Satisfactory

Quality of

Supervision:

Moderately

Satisfactory

Implementing

Agency/Agencies: Moderately Satisfactory

Overall Bank

Performance:

Moderately

Satisfactory Overall Borrower

Performance: Moderately Satisfactory

ii

C.3 Quality at Entry and Implementation Performance Indicators

Implementation

Performance Indicators

QAG Assessments

(if any) Rating

Potential Problem

Project at any time

(Yes/No):

No Quality at Entry

(QEA): None

Problem Project at any

time (Yes/No): No

Quality of

Supervision (QSA): None

DO rating before

Closing/Inactive status:

Moderately

Satisfactory

D. Sector and Theme Codes

Original Actual

Sector Code (as % of total Bank financing)

Agricultural extension and research 7 5

General agriculture, fishing and forestry sector 1 1

Irrigation and drainage 84 89

Sub-national government administration 8 5

Theme Code (as % of total Bank financing)

Administrative and civil service reform 24 23

Participation and civic engagement 13 12

Rural policies and institutions 13 12

Rural services and infrastructure 25 26

Water resource management 25 27

E. Bank Staff

Positions At ICR At Approval

Vice President: Philippe H. Le Houerou Praful C. Patel

Country Director: Onno Ruhl Michael F. Carter

Practice Manager: William D. Kingdom Gajanand Pathmanathan

Task Team Leader: Jun Matsumoto Radhey S. Pathak

ICR Team Leader: Ajay Markanday

ICR Primary Author: Ajay Markanday

iii

F. Results Framework Analysis

Project Development Objectives (PDOs at appraisal- from Project Appraisal Document)

(i) To strengthen the state's capacity for multi-sectoral planning, development and sustainable

management of the water resources and (ii) to improve irrigation service delivery and

productivity of irrigated agriculture.

Revised Project Development Objectives (as approved by original approving authority)

There was no change to the PDO during project implementation.

(a) PDO Indicator(s)

Indicator Baseline Value

Original Target Values

(from approval

documents)

Formally

Revised

Target Values

Actual Value

Achieved at

Completion or

Target Years

PDO Indicator

1

Appropriate institutions created/restructured and strengthened to improve water

resources management.

Value

quantitative

MWRRA

MKVDC

WRD

Non existent

To be restructured

To be restructured

Not revised

Achieved

Not Achieved

Achieved

Date Achieved

MWRRA

created

MKVDC

Restructure

WRD

Restructure

09/30/2005

09/30/2005

09/30/2005

09/30/2006

09/30/2007

09/30/2007

Not revised

06/30/2007

Not achieved

08/30/2010

Comments

(including %

achievement)

Creation and operationalization of MWRRA was achieved 9 months after original

target. Restructuring of WRD was achieved 3 years after the original target.

Restructuring of the MKVDC was not achieved, however, GOM is implementing the

planning activities within the present institutional setup.

PDO Indicator

2

Improved irrigation service delivery in targeted schemes (measured by improved

water use efficiency at the scheme, distributary and minor levels of irrigation

schemes).

Value

quantitative

Ha/MCM

Scheme level

Distributary

Minor level

96

146

183

125

190

238

Not revised

147 (53% above BL)

260 (78% above BL)

270 (47% above BL)

iv

Date Achieved 09/30/2005 03/28/2014

Comments

including %

achievement)

The target was exceeded in all three cases.

PDO Indicator

3 Incremental value of crop production per unit of irrigation water supplied

Value

quantitative

(Rs/TCM)

3,532 4,590 (30% over BL) Not Revised

9,219

(162% above BL)

Date Achieved 09/30/2005 03/28/2014

Comments

(including %

achievement)

The target for increased crop value was exceeded by a very significant margin as a

result of significant crop diversification into higher value crops and improved

irrigation service delivery.

PDO Indicator

4 Improved incomes of targeted stakeholders in the head, middle and tail reaches.

Value

quantitative

Rs/annum/HH

Head

Middle

Tail

49,244

52,819

46,741

68,941

73,946

65,437

Not Revised

54,642 (+11%)

79,136 (+50%)

97,649 (+109 %)

Date Achieved 09/30/2005 03/28/2014

Comments

(including %

achievement)

End of project targets were exceeded in the middle and at the tail section, reflecting

more reliable and equitable water distribution.

(b) Intermediate Outcome/Results Indicators by Component

Indicator Baseline Value

Original Target

Values (from

approval

documents)

Formally Revised

Target Values

Actual Value

Achieved at

Completion or

Target Years

Component A

Indicator 1 Operationalization of Maharashtra Water Resources Regulatory Authority

(MWRRA) - adequate staffing and budget allocation

Value

quantitative or

Qualitative

Non-existent

All the units of MWRRA

established; at least 90%

designated staff are in

place; and annual budget

allocated.

Nil Achieved

Date Achieved 09/30/2005 09/30/2006 06/30/2007

Comments

(including %

MWRRA was established and operationalized early in the project and is functioning

as envisaged.

v

achievement)

Indicator 2 Restructuring of Maharashtra Krishna Valley Development Authority (MKVDC)

into "Maharashtra Krishna Valley Water Resources Corporation (MKVWRC)"

Value

quantitative or

Qualitative

To be restructured Restructuring to be

completed No revision

Restructuring not

carried out.

Date Achieved 09/30/2005 09/30/2007

Comments

(including %

achieved)

Partially achieved. GoM could not pass the MKDVC Amendment Bill during the

project period. GOM is implementing the planning activities, including preparation

of some of the sub-basin plans, within the present institutional setup.

Indicator 3 Restructuring of WRD

Value

quantitative or

Qualitative)

To be restructured Restructuring to be

completed Not revised

Restructuring

Completed

Date Achieved 09/30/2005 09/30/2007 08/30/2010

Comments

(incl. %

achievement)

The restructuring of WRD was completed in August 2010, later than envisaged.

Component B

Indicator 1 About 1591 Water User Associations (WUAs) at minor level, established in targeted

286 irrigation schemes

Value

quantitative or

Qualitative)

No WUAs in the project

area.

1591 WUAs at the

minor level

established in the

targeted 286

irrigation schemes.

1509 WUAs at

the minor level

established in

the targeted

235 irrigation

schemes

1508 in 235

schemes

Date achieved 09/30/2005 05/30/2009 03/31/2009 03/28/2014

Comments

(incl. %

achievement)

Achieved. WUAs are functioning under the MMISF Act and real empowerment of

famers has resulted.

Indicator 2 Fully functioning WUAs in about 286 target schemes

Value

quantitative

No WUAs in the

project area 1591/286 1509/235 1384/235

Date achieved 09/30/2005 03/31/2009 03/28/2014

Comments

(incl. %

achievement)

Substantially achieved. 1384 WUAs (92%) have had second term elections (6 year

terms), the adopted measure for functionality. The remaining 124 have second term

elections scheduled in 2014.

Indicator 3 Six pilot schemes with volumetric charging and bulk supply of water as per

entitlement in the Krishna Basin.

Value

quantitative or

Qualitative)

Nil

Volumetric

charging and bulk

supply introduced

in six (6) pilot

schemes.

Not revised

Volumetric

charging and bulk

supply introduced in

236 schemes

Date achieved 09/30/2005 12/31/2006 03/28/2014

Comments

(incl. %

Target substantially exceeded. The initial pilot was so successful that there was

considerable up scaling under the project to 236 schemes covering 1341 WUAs.

vi

achievement)

Indicator 4. Increased water delivery efficiency (WDE)

Value

quantitative % 31.2

62.4 (100% increase

over BL) Not revised 61

Date achieved

Comments

(incl. %

achievement)

Almost fully achieved. Minor irritation schemes showed a 211% increase, while

major and medium schemes showed 80% and 89% increases respectively.

Indicator 5 Improved water use efficiency at the Scheme, Distributary and Minor levels.

Value

Quantitative

Ha/MCM

Scheme

Distributary

Minor

96

146

183

125

190

238

Not revised

147 (53% above BL)

260 (78% above BL)

270 (47% above BL)

Date achieved 09/30/2005 03/28/2014

Comments

(incl. %

achievement)

(Identical to PDO Indicator 2). Exceeded in all three levels. The increased WUE was

achieved as the rehabilitation and modernization resulted in more water reaching the

farms and being put to productive use.

Indicator 6 Incremental value of crop production per unit of irrigation water supplied

Value

quantitative

(Rs/TCM)

3,532 4,590 (30% over

BL) Not Revised

9,219

(162% above BL)

Date Achieved 09/30/2005 03/28/2014

Comments

(including %

achievement)

(Identical to PDO Indicator 3). The target for increased crop value was exceeded by

a very significant margin as a result of significant crop diversification into higher

value crops and improved irrigation service delivery.

Indicator 7 Improved collection efficiency of irrigation water charges

Value

quantitative or

Qualitative)

45% 54% (20% increase

over BL ) Not revised

61.7% Collection

efficiency

Date achieved 09/30/2005 09/30/2011 03/28/2014

Comments

(incl. %

achievement)

Target exceeded.

Component C

Indicator 1 Change in groundwater management policies and legislation based on

lessons learned from pilots

Value

quantitative

0 Polices and

legislation

strengthened

Not revised Achieved

Date achieved 09/30/2005 12/03/2013

vii

Comments

(incl. %

achievement)

The highly satisfactory outcome of the groundwater pilots resulted in a

complete rewrite of the state Groundwater Act. Based on this new act, the

new community based approach to sustainable groundwater management is

being scaled-up in 571 villages under a new on-going World Bank project.

Indicator 2 Net Increase in agricultural value added in innovative irrigated agricultural

pilot areas

Value

quantitative

0 40% increase

over BL

Dropped 0

Date achieved

Comments

(incl. %

achievement)

This subcomponent (C2) was dropped in April 2011 because of

implementation difficulties. The pilot activities were included in another

World Bank funded project.

Component D

Indicator 1 State level PPMU established and adequately staffed

Value

qualitative

0 1 Not revised 1

Date achieved 09/30/2005 03/28/2014

Comments

(incl. %

achievement)

Partially achieved. PPMU had problems early on in terms of adequate staff

numbers and appropriate skills mix. A dedicated M&E unit not established

in the PPMU.

Indicator 2 Monitoring reports of satisfactory quality submitted every 6 months

Value

qualitative

0 10 14 14

Date achieved 09/30/2005 09/03/2005 03/31/2012 03/28/2014

Comments

(incl. %

achievement)

Achieved, with half yearly reports furnished until the end of the project.

Indicator 3 Submission of 3 evaluation reports of satisfactory quality

Value

quantitative

0 3 2 2

Date achieved 09/30/2005 03/31/2009

Comments

(incl. %

achievement)

Achieved. Project design initially included 2 formal reviews but because of

the slow start, the first review (October 2007) was deferred and the second

review (due in October 2009) was rolled into the MTR in March 2009.

The consultant was required to provide evaluation reports only for the

MTR and at ICR.

G. Ratings of Project Performance in ISRs

No. Date ISR

Archived DO IP

Actual Disbursements

(USD millions)

1 12/06/2005 Satisfactory Satisfactory 31.63



viii





8 05/21/2009 Moderately Satisfactory Moderately Satisfactory 78.36

9 12/01/2009 Moderately Satisfactory Moderately Satisfactory 114.45

10 05/25/2010 Moderately Satisfactory Satisfactory 156.10








H. Restructuring

Restructuring

Date

Board

Approved

PDO Change

ISR Ratings

at

Restructuring

Amount

Disbursed at

Restructuring

in USD

millions

Reason for Restructuring &

Key Changes Made

DO IP

03/21/2012 N/A MS S 215.54

Extension of closing date to

enable the GoM to complete:

(i) on-going dam safety works

in all the 281 dams and canal

rehabilitation/modernization

works in 235 of 236 (99%)

irrigation schemes covered

under the project; (ii) major

irrigation sector reforms,

including irrigation

management transfer and

implementation of water

entitlements to WUAs in 234

schemes, as these reforms are

linked to the rehabilitation/

modernization of irrigation

schemes; (iii) restructuring of

MKVDC into a river basin

agency; and (iv) further

consolidation and deepening

of other completed/on-going

water sector reform initiatives.

ix

03/10/2014 N/A MS S 290.77

Reallocation of categories of

expenditure to match works

plans and progress. The

reallocation included increases

in the civil works category and

simultaneous decreases in the

categories of goods and

training. The restructuring also

included cancellation of

US$15 million of loan

proceeds because of the

appreciation of the

US$ against the Indian Rupee.

Most of the funds cancelled

were from the unallocated

category.

x

I. Disbursement Profile

1

1. Project Context, Development Objectives and Design

1.1 Context at Appraisal

Maharashtra was the third most populous state in India, mostly agriculture dependent

and rural, with an estimated poverty rate exceeding 30 percent of the population. Poverty

rates were very high among cultivators and agricultural laborers (23% and 57%

respectively). The ultimate irrigation potential of the State was estimated at about 12.6

million hectare (m ha), with 8.5 m ha from surface water and 4.1 m ha from ground water

sources. As of June 2003, total irrigation potential created in the State was 5.8 m ha (surface:

3.9 m ha and ground water: 1.9 m ha), i.e., about 46% of the ultimate irrigation potential.

The total gross cropped area was about 22.39 m ha, of which only about 14.5% was

irrigated.

In 2005, the water sector in Maharashtra faced many challenges. Competition for

water among different sectors had increased dramatically, giving rise to disputes and

conflicts. Of the total water used in the State, 80% went to irrigation, 12% for domestic

water supplies, 4% for industrial use, and the remainder for other uses. With a rapidly

growing urban population of about 41 million (42% of total), the long-term multi-sectoral

management of the State’s water resources was becoming critical. The quality of irrigation

service delivery was poor, with only 30% of water released at the head being delivered to

the end user, thus undermining the performance of irrigated agriculture. Planning and

management of water resources in the State was fragmented and un-coordinated. Limited

cost recovery in the irrigation sector contributed to inefficient on-farm use of irrigation

water, which added to the state’s fiscal burden. Large, state-guaranteed market borrowings

by the Irrigation Department Corporations (IDCs) were used to finance the construction of

storage infrastructure. Without completed distribution systems this infrastructure was not

generating any return.

The project was designed to address the above issues, except the issue relating to

fiscal crisis due to large state-guaranteed borrowing by the IDCs. To meet the above-

mentioned water sector challenges a number of water sector policies and institutional and

regulatory reforms were initiated by GoM. As a part of the project preparation dialogue,

GoM adopted the Maharashtra State Water Policy in 2003, which set out a framework for

the development and management of water resources in the State in a multi-sectoral manner.

To address the issue of competing water demand, GoM established water sector regulatory

institutions and adopted enabling legislation, i.e., the Maharashtra Water Resources

Regulatory Act 2005. Maharashtra was the first Indian state to establish a water sector

regulator. MWRRA has, inter alia, been mandated to decide on the bulk water entitlement

for various sectors of water users and also to decide water tariffs in a transparent manner.

To promote efficient, equitable and sustainable irrigation service delivery through effective

involvement of Water User’s Associations (WUAs), and to reduce the canal irrigation

subsidies, GoM enacted the Maharashtra Management of Irrigation Systems by Farmers Act

(MMISF) in 2005. MMISF is the Act that provides bulk water supply as per water

entitlements under MWRRA and the eventual transfer of irrigation system management to

WUAs. GoM also initiated the restructuring of the Water Resources Department and IDCs

to ensure coordinated and holistic multi-sectoral planning, development and management of

state water resources in a basin context.

2

The Bank assisted the government in developing its long-term vision by providing

technical assistance (TA) and support through the Bank-Netherlands Water Partnership

Program (BNWPP). This TA helped GoM to strengthen its key water policy and provided

assistance with legislation for setting up the new MWRRA. Once GoM developed the

vision, and put in place the enabling policy and legislative environment, the rationale for

further direct Bank assistance through a project was sound.

The project design supported the 2004 India Country Assistance Strategy (CAS)

goals of: (i) accelerating rural growth through improving the value and quantum of

agricultural production; (ii) improving governance and service delivery through institutional

strengthening at state and local (farmer) levels; and (iii) providing adequate infrastructure

through investment in rehabilitation and modernization of irrigation infrastructure. The

project was also consistent with the CAS’s strategic principle of applying selectivity and

focusing on activities which supported the Government of India’s development goals to

reduce poverty and ensure environmental sustainability. The project followed the Bank’s

guidelines for lending in the irrigation and drainage sector, and presented the Bank with a

unique opportunity to partner with a progressive and committed State government. If

successful, the project could influence development policy, improve management practices,

and help introduce similar water sector reforms in other Indian states.

1.2 Original Project Development Objectives (PDO) and Key Indicators

The project development objectives were: (i) to strengthen the State's capacity for

multi-sectoral planning, development and sustainable management of the water resources;

and (ii) to improve irrigation service delivery and productivity of irrigated agriculture.

Performance indicators were selected to measure the achievement of both aspects of

the development objective.

PDO Part (i) Strengthen the State’s capacity for multi-sectoral planning,

development, and sustainable management of the water resources

Institutional Indicators

Establishment and operationalization of MWRRA.

Initiation of actions for, and progress made on, restructuring of MKVDC into MKVWRC, and capacity building.

Restructuring and capacity building of the Water Resources Department (WRD).

Formation, operationalization, and fostering of WUAs consisting of Project Level Associations (PLAs), Canal Level Associations (CLAs), and Distributary Level

Associations (DLAs).

PDO Part (ii) Improve irrigation service delivery and productivity of irrigated

agriculture

Improved Service Delivery Indicators

Implementation of improved water management practices and instruments in six selected irrigation schemes in the Krishna Basin in Maharashtra.

Increase in water use efficiency.

Increase in actual irrigated area.

3

Improved Crop Productivity Indicators

Increased crop productivity (increase in crop yields and net agricultural benefits per unit of water delivered).

Increased crop diversification (area cultivated under different crops).

Increased farm incomes.

Poverty Impact Indicators

Increased farm household incomes in the command area.

Sustainability Indicators

Amount spent on O&M.

Increase in collection rate of water charges.

1.3 Revised PDO and Key Indicators, and reasons/justification

There were no formal revisions of the PDOs and Indicators.

1.4 Main Beneficiaries

It was estimated at appraisal that the project would directly benefit approximately

1.28 million people in 233,400 farm households (HHs). These include about 185,000 poor

individuals in 33,610 farm families, who were expected to be brought above the poverty

line.

Other intended beneficiaries of the training and capacity building interventions were

identified as staff of various agencies including: Water Resources Department (WRD);

Irrigation institutions under the administrative umbrella of the WRD; Water and Land Management Institute (WALMI); Maharashtra Water Resources Regulatory Authority

(MWRRA); and Maharashtra Krishna Valley Water Resources Corporation (MKVWRC). In

addition, farmer members of Water Users Association (WUAs) and selected officers within

the Agricultural Department (AD) were also expected to benefit.

1.5 Original Components

The project had four components indicated below.

Component A: Water Sector Institutional Restructuring and Capacity Building

(US$21.1 million)

This component was designed to focus on institutional reforms in the water sector

with the objective of strengthening the State’s capacity for multi-sectoral planning,

development and management of the water resources on a river basin basis. It was to

support: (i) the establishment and operationalization of MWRRA; (ii) restructuring of the

existing MKVDC into MKVWRC as a river basin agency, and its capacity building; (iii)

restructuring and capacity building of WRD; (iv) capacity building of WALMI; and (v)

establishment of an integrated computerized information system (ICIS).

4

Component B: Improving Irrigation Service Delivery and Management (US$321.35

million)

This component focused on improving service delivery and productivity in irrigated

agriculture through improved irrigation system performance, effective participation of water

users in irrigation system management, increased cost recovery, implementation of water

entitlements, and improved agricultural support services delivery. It was designed to

support: (i) participatory rehabilitation and modernization of about 286 selected irrigation

schemes covering about 670,000 ha of cultural command area (CCA); (ii) enhancing the

safety of 291 dams supplying water to the project area; (iii) formation and capacity building

of WUAs in about 286 selected irrigation schemes; (iv) improved water management

practices and instruments, such as bulk supply and volumetric charging of water to WUAs in

6 selected irrigation schemes in the Krishna Basin; (v) strengthening of agriculture support

services in the project area; and (vi) implementation of social and environmental

management plans, consistent with the Social and Environmental Management Framework

(SEMF), that were to address project related social and environmental issues.

Component C: Innovative Pilots (US$4.80 Million).

This component supported: (i) four pilots of user-centered aquifer level groundwater

management to develop and test approaches and practices; and (ii) four pilots supporting

two innovative models for agriculture in irrigated areas. The first entailed a private entity

hired by the WUA for technical support to promote commercial farming in the pilot area.

The second involved the formation of a joint venture company by the WUA and a private

entity under which farmers would be given a minimum return and a share of profits on

agreed terms.

Component D: Project Management (US$4.02 Million)

This component supported: (i) the State level Project Preparation and Management

Unit (PPMU); (ii) monitoring and evaluation (M&E); and (iii) an information, education,

and communication campaign (IEC) to create awareness about project initiatives.

1.6 Revised Components

Not Applicable

1.7 Other significant changes

Not Applicable

2. Key Factors Affecting Implementation and Outcomes

2.1 Project Preparation, Design and Quality at Entry

2.1.1 Assessment of contextual and background analysis

The Bank conducted a background diagnostic, including a supplementary analysis on

public expenditure (PER) and fiscal impact (FI), to support project preparation and design.

This diagnostic was thorough and effective as it clarified the water sector issues faced by the

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State, actively engaged the Borrower at various stages in project identification and

preparation, and contributed to building trust. As a result, the understanding of relevant

national and state policies and higher level country and CAS objectives was broad-based,

sound and measured. This understanding and engagement provided a strong rationale for

continued Bank partnership, which had preceded MWSIP through TA provided by BNWPP.

This analytical foundation was valuable in steering the overall direction of project design

and management of sector reforms. The depth and quality of background analysis was

strong, and the level of preparation by GoM provided a solid foundation upon which the

project was designed.

2.1.2 Assessment of Project Design

In view of the multitude of challenges, constraints and need for new approaches,

project design needed to be selective, measured and well sequenced. In the absence of the

requisite institutional mechanisms, capacity and skills for multi-sectoral coordination and

planning, there was an implicit risk that too much could be pushed too soon. In hindsight,

the overall project design was complex. It also lacked some clarity on the challenge of

restructuring MKVDC and the required political commitment to ensure that this moved

forward. The design of project implementation management arrangements, involving a

number of government agencies and partnerships with new WUOs and NGOs, compounded

by low initial capacity, caused problems in component/sub-component activity sequencing

and coordination. However, given the BNWPP support during project preparation, the

Bank’s experience with other similar projects in India and globally, and the level of

government commitment to bring about fundamental changes in the sector, there was

realism in formulating the project design and in the assessment of outcomes.

2.1.3 Safeguards

The project was categorized as environmental Category A, safeguard screening

category S1, and triggered six Bank safeguard polices: (i) Environmental Assessment

(OP/BP 4.01); (ii) Involuntary Resettlement (OP/BP 4.12 and OD 4.30); (iii) Cultural

Property (OPN 11.03); (iv) Indigenous Peoples (OD 4.20); (v) Safety of Dams (OP/BP

4.37); and (vi) Nutrient and Pest Management (OP 4.09). An Integrated Social and

Environmental Assessment (ISEA) was carried out as part of project appraisal which

identified the key social and environmental issues. From this assessment a Social and

Environmental Management Framework (SEMF) was developed which was applied by

project management staff. This maximized the positive impacts while taking appropriate

mitigating measures against adverse impacts to ensure compliance with Bank Safeguard

policies. The SEMF was comprehensive and included specific frameworks for: (i)

Resettlement and Rehabilitation; (ii) Tribal Development; (iii) Gender; (iv) Dam Safety; (v)

Pest and Nutrient Management; (vi) Cultural Property; and (vii) a Consultation Strategy.

The project EA was sent to the Bank’s InfoShop on December 31, 2004, and the final

Integrated Safeguard Data Sheet (ISDS) was disclosed in the InfoShop on December 19,

2004.

2.1.4 Assessment of Government Commitment

The high level of Government commitment to sector reforms was clear: (i) adoption

of the Maharashtra State Water Policy in 2003; (ii) enactment of the 2005 MWRRA Act;

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and (iii) enactment of the 2005 Maharashtra Management of Irrigation Systems of Farmers

(MMISF) Act. These Acts have since been implemented.

2.1.5 Assessment of Risk

Four risks were identified at appraisal: (i) GoM commitment to the institutional

reforms; (ii) viability of participatory irrigation management; (iii) provision of counterpart

funding; and (iv) effective delivery of agricultural support services. Mitigation measures

identified at appraisal proved only partially effective. Counterpart funding was a persistent

problem and slowed implementation, particularly in the first half of the project. There was

also an under-estimation of the risks associated with the restructuring of MKVDC. Other

risks that emerged during project implementation and caused implementation delays were

associated with a design involving complex institutional reforms, the number of components

and sub-components, difficulty in coordinating the large number of implementing agencies,

and capacity constraints of the implementing agencies.

2.1.6 Quality at Entry

The rationale for Bank involvement was strong and the PAD comprehensively

analyzed the background issues to justify the Bank intervention. The project PDO had two

distinctive elements, institutional development and improved irrigation services, and focused

on outcomes for which the project could reasonably be held accountable. The PDOs and

PDO indicators were designed to address issues identified in project preparation, e.g.,

improvement of service delivery and multi sector planning needs. Project activities were well

designed, as confirmed by the implementation of almost all project activities, albeit with an

extension of the loan closing date.

2.2 Implementation

Strong Government commitment for public sector reforms was critical in driving the

project and underscoring longer term sustainability. Since the late 1990s Maharashtra has

been consistently proactive in introducing public sector reforms to improve state finances

and development impact. GoM has also actively engaged with the central government as

part of the wider reform agenda. Maharashtra’s water policy was the first State water sector

policy after the National Water Policy of 2002. This policy sustained project momentum and

helped to internalize policy reforms with decision makers. As a result, there have been

positive spill-overs, not only from the efforts of GoM leading up to the project, but also on

project outcomes that go beyond the project into State-wide and central government

planning and water sector reforms.

Problems such as lack of counterpart funds and inadequate PPMU staff hindered

project activities during the first half of project implementation and progress was slow. At the

MTR (March 2009), the PDOs were still considered relevant, and no changes were required

either to the PDOs or to the overall project design. Within the overall target of 609,000 ha

for irrigation service improvement benefits however, and based on technical and economic

feasibility considerations/assessments, 54 schemes (3 medium & 51 minor) with a CCA of

40,557 ha were dropped and areas under three major schemes totaling 55,000 ha were

reduced; four new schemes totaling 95,557 ha were introduced in their place. At MTR, only

24% of the loan amount was disbursed, but this was expected to accelerate in FY2009/10.

Overall project implementation was assessed to be generally on track and planned activities

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under the project were expected to be completed within the project period, provided GoM

took decisive action on the agreed revised implementation schedule.

The scale of Component C was significantly altered at the MTR by the deletion of one

groundwater pilot (C1) and the cancellation of all activities for the irrigated agriculture pilots

(C2). The original allocation of US$4.80 million was reduced to about US$2.00 million to

fund the remaining three groundwater pilots. These pilots were completed for US$1.05

million, well below the revised estimate of US2.00 million. The contracted cost of the main

civil works investment for the 116 groundwater recharge structures was considerably below

the appraised estimate because of the close involvement of each community. Further, water

meters for two of the three pilots could not be procured in time. (See annex 1 and 2 for more

details).

All changes were endorsed by Bank management and were set out in the management

letter dated May 29, 2009 following the MTR.

Activities on the irrigated agriculture pilots (C2: US$ 2.1 million) were dropped in

agreement with the Bank in April 2011 because of difficulties in finalizing MOUs and getting

all requirements in place. No expenditure was recorded for this activity. Similar initiatives are

now been undertaken under Bank-funded Maharashtra Agriculture Competitiveness Project.

The Bank downgraded the ratings for IP and DO from satisfactory to moderately

satisfactory in May 2009 because key institutional reforms were still to be carried out and

legal covenants relating to the restructuring of MKVDC into a new MKVWRC and

restructuring of WRD were not complied with. In addition there was slow progress on the

award of dam safety works contracts and overall disbursement was low. Both disbursement

and dam safety investment picked up after the MTR and the IP rating was upgraded to

satisfactory in May 2010. However, the DO rating was retained as Moderately Satisfactory

until the end of the project because of non-compliance with the covenant on restructuring

MKVDC.

Level 2 Restructuring. Through a restructuring approved in March 2012, the loan

closing date was extended by two years to March 28, 2104 (Report No. 67032 IN). This was

to enable GoM to achieve the PDOs by completing: (i) further consolidation and deepening

of completed/on-going water sector reform initiatives, including the major irrigation sector

reform involving transfer of irrigation management to WUAs; (ii) restructuring of MKVDC

into a river basin agency; and (iii) on-going dam safety works. Apart from the “formal”

MKVDC restructuring, all other project activities envisaged at the time of this extension

were completed.

A second Level 2 restructuring involving a reallocation of funds amongst categories

and partial loan cancellation was approved in March 2014 (Report No: RES13811) to match

the work plan and progress at the end of the project. These reallocations resulted in an

increase of funds in the civil works category, with a corresponding decrease in the other

categories. Also, because of large variations in the exchange rate which saw the Rupee

depreciate by about 40% over the life of the project and GoM’s inability to utilize these

savings, US$15.0 million of the loan was cancelled.

2.3 Monitoring and Evaluation (M&E) Design, Implementation and Utilization

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M&E Design. Institutional and management arrangements for the M&E system,

which included the establishment of Coordination, Monitoring and Evaluation sub-unit

within the PPMU and an independent M&E agency, were sound. The project would have

benefited from a more thoughtful framing of key indicators and the results framework to

establish a clearer link to the achievement of the PDOs. Some confusion was apparent in the

use of identical indicators for PDO outcome and intermediate outcome/outputs. Progress

against PDO indicators was designed to be monitored as an integral part of project

implementation.

M&E Implementation. Overall, M&E activities were driven entirely by external

consultants, who worked relatively independently towards a common end objective. There

were a number of positive aspects to M&E implementation. The approach taken and quality

of the data provided by the third party consultant was sound. End of project impacts were

compiled from data that tracked the same households (HHs) over the course of the project

(quarterly) from baseline survey to the final HH survey. Net increases/decreases for project

HHs were determined from the parallel tracking of a control group of HHs outside the project.

Shortcomings in M&E implementation include: negligible development of institutional

capacity for M&E within the PPMU and the implementation agencies; and low priority

accorded by the Bank and Borrower to developing sound on-going M&E systems for data

collection and analysis, and for continuous review of M&E quality and internalization.

M&E Utilization. Physical and financial progress was monitored regularly, based

on project progress reports. Information collected and collated by the monitoring

consultants has been used in the Borrower’s and the Bank’s ICRR. However, there is little

evidence that the M&E system was purposefully used in dynamic decision making for

management purposes.

2.4 Safeguard and Fiduciary Compliance

2.4.1 Safeguard compliance. The Social and Environmental Management Framework

(SEMF) provided a sound basis to respond to the environmental and social issues in a

programmatic manner. It included an entitlement framework for resettlement of project

affected people, strategy for consultation, participation, and strategy to address issues related

to women and tribal people, as well as institutional strengthening activities in relation to the

social and environmental management of the project. It also described the process to be

followed to ensure that environmental and social aspects were integrated in planning and

implementation of project activities at the sub-project level. Based on the findings of ISEA

and SEMF, social and environmental management plans (SEMPs) were prepared for each

scheme included in the project, and took into account the respective framework and

strategies for key issues. i.e., Dam Safety, Sustainable Agriculture including Pest Nutrient

Management, Resettlement, Tribal and Gender development and Community participation.

SEMPs included a detailed design for institutional/management arrangements and a detailed

budget for executing these plans. A model tribal development plan for one of the sub-

projects was also prepared.

Environment Aspects. As the scope of physical works was on the rehabilitation and

modernization of existing irrigation systems, there were no significant negative

environmental impacts identified, including on forestry and bio-diversity. There was

satisfactory compliance with the environmental impact safeguard.

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Social Aspects. The project was in compliance with Bank social safeguard polices.

A total of 1,677 WUAs were formed with 30% of women in the Managing Committees

(MC). In all, 41 Tribal Development Plans were implemented to enhance the representation

of tribals in WUAs. This also enabled tribal people to access project benefits equitably.

Application of the SEMF to each of the 235 schemes facilitated the determination of any

adverse impacts on households. Screening reports prepared on the implementation of SEMF

established that no land asset was required for sub-projects. An independent assessment

confirmed that none of the 149 families at Mula (Ahmednagar) were adversely affected by

the rehabilitation of the canal network.

Dam Safety. The project was in compliance with the Dam Safety policy and work

programs for each dam were implemented satisfactorily. Three Expert Dam Safety Review

Panels (DSRPs) were established and provided sound professional oversight during project

implementation. They made a number of recommendations to improve dam safety

including: (i) restoration of dam sections; (ii) raising dam heights in view of recalculated

probable design flood; (iii) leakage treatment; (iv) repairs to overflow weirs and spillways;

(v) downstream apron reinforcement, including grouting; (vi) provision of new

instrumentation; (vii) strengthening of dam sections consistent with revised seismic

assessment; (viii) repairs to drains and relief wells; (ix) repairs and reconstruction of head

regulators; and (x) repairs to electro-mechanical components (gates, hoist, cranes).

Nutrient and Pest Management. Management of this safeguard was in compliance

with Bank policies. Each scheme SEMP included the development of separate pest and

nutrient management strategies that were successfully applied (Details in Annex 2).

Physical Cultural Resources. This safeguard policy was triggered to ensure that

“chance find procedures” were followed by contractors and/or supervising engineers in

charge during construction. No findings were reported during project implementation.

Project Operational Manual on Social and Environmental Management. The

project supported the preparation of an Operational Manual, which includes the Social Audit

tool on Social and Environment Management. The Manual was based on due consultations

with stakeholders and engineers. Two dissemination workshops on ‘Social and

Environment Management Framework’ were conducted under the project to propagate

information summarized in the ‘Operational Manual on Social & Environmental

Management’. The Manual was used by WRD in all State projects, irrespective of financing

source.

2.4.2 Fiduciary Compliance

Procurement. Procurement was carried out in accordance with the agreed Bank

procedures. In spite of the large number of schemes undertaken and the highly decentralized

nature of the procurement, there were very few cases of complaints. Where complaints did

arise, they were promptly attended to by the PPMU. Community participation in

procurement was efficient. Adequate training on procurement and contract management was

provided throughout the implementation period.

The main procurement management issue was the inability to align and co-ordinate

procurement planning with detailed engineering. This led to serious time overruns, cost

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escalations at the bidding stage, and poor procurement management performance, which

further led to the termination of some contracts and the rebidding for fragmented and small

works. The lessons learned included the need to improve contract estimates through better

data gathering, and use and analysis of current market prices from recently completed

contracts. Provision should be made for any additional requirements on account of specific

site conditions, including the costs associated with environmental and social aspects. The

cost of management and supervision, including quality control, need to be included in cost

estimates, and the scope of these aspects should be effectively communicated to bidders so

that they are adequately addressed and included in bids. Contractors’ workshops need to be

conducted frequently to discuss these and other issues and to receive feedback.

Financial Management. FM was in compliance with Bank policies and procedures.

FM arrangements were characterized by the use of GoM systems for accounting and reporting.

A Financial Management Manual (FMM) was used to standardize accounting procedures

across the three implementing entities. In addition, an ‘FM support Consultancy’ was

mobilized.

FM implementation. With three government departments acting as implementing

agencies, combined with the large number of accounting locations at the district level, at

times implementation proved challenging. The following issues were noted: (a) responses to

several high level/value observations made by the project auditors (Comptroller and Auditor

General) were often delayed; and (b) internal audit arrangements did not add value in terms of

constructive inputs and generally were a repetition of the external audit findings.

2.5 Post-completion Operation/Next Phase

The post-project transition and management arrangements for the various project

interventions – both sector reforms and investments - were built into the project design and

were implemented well. The status at project closure is as follows:

(a) MWRRA - MWRRA is now well-established, is performing well, has a clear vision

for the future, and is fully funded by GoM.

(b) WRD - The restructured WRD is now operating with a clear separation of

development and management of water resources. Costs directly associated with the

management/operations arm of WRD are included in water charges’ calculations and

other costs are excluded and funded separately by GoM.

(c) WALMI - WALMI continues to function at a high level and is well supported and

funded by GoM. GoM has committed to further enhancement of WALMI through

the establishment of a permanent training unit with 19 new staff posts specifically for

“Providing training support, monitoring and evaluation of WUAs”.

(d) WUAs - Over 1,500 WUAs have been established and taken over the responsibility

for MOM of irrigation systems below the minor head, in accordance with the

provisions of the MMISF Act 2005. The input of farmers and their direct influence

on decision making in major and medium irrigation schemes has been enhanced with

the formation of project level and distributary level associations that include farmer

representatives from WUAs. Some WUAs are still nascent and will need continued

support and capacity building beyond the project.

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(e) Groundwater pilots - Concerned communities, through their respective local

committees, have taken over O&M responsibilities for sustainable groundwater

management at the aquifer level, including for recharge structures and monitoring

equipment. Groundwater management committees have the legal right to set

groundwater charges to cover O&M costs.

3. Assessment of Outcomes

3.1 Relevance of Objectives, Design and Implementation

Rating: High

The Project design (PDO and components) remains highly relevant for Maharashtra

and for India as a whole. It is consistent with current development priorities of: (i) GoM

(water sector and institutional reforms); (ii) Government of India (at both higher and water

sector level reforms); and (iii) the Bank, under the current Country Partnership Strategy

(CPS 20131). Key priorities of the project ensure a focus on: (i) water and natural resources

management, with an overall emphasis on innovative approaches and systems

strengthening; (ii) more inclusive agricultural and rural growth; (iii) technology

development and low-carbon and climate-resilient agriculture; (iv) agricultural markets; and

(v) strengthening collective action (especially among women) to facilitate access to better

economic opportunities.

Project design is relevant and consistent with the stated PDO, in particular the

integrated approach to irrigation system improvement, including the empowerment and

capacity building of farmers through WUAs and agricultural support activities. The mostly

successful achievement of the PDOs is consistent with the current State and national

development priorities, particularly with respect to the establishment of MWRRA. In fact, in

order to attract national funding in the sector, GoI now requires states to establish a

regulatory authority based on the principles of the MWRRA. Much of the success of the

groundwater pilots has been adopted by GoI’s Central Groundwater Board. In addition,

sustainable management of groundwater is a huge national priority. Legislative changes,

particularly with respect to the need for groundwater mapping, the production of sustainable

groundwater management plans on an aquifer basis, and user/community involvement in

groundwater management, point to the contributions of project implementation.

3.2 Achievement of Project Development Objectives

Overall Rating: Moderately Satisfactory, based on the detailed assessment below.

3.2.1 PDO Part (i). To strengthen the state’s capacity for multi-sectoral planning,

development, and sustainable management of the water resources.

Institutional objectives were addressed principally through Component A, with the

objectives of: (i) establishing a new MWRRA; (ii) Restructuring MKVDC; (iii)

1 Country Partnership Strategy – India dated March 21, 2013 Report No. 76176-IN.

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Restructuring WRD; (iv) Strengthening WALMI; and (v) introduction of a sector wide ICIS.

Also, Component C1, Piloting of User Centered Aquifer Level Goundwater Management,

contributed to the achievement of the PDO.

The project’s contribution to strengthening State capacity as measured by the PDO

indicators, as well as other measures, is discussed below. The institutional reform objectives

of the project were ambitious, and have been substantially achieved, except for the

restructuring of MKVDC. GoM, through the Maharashtra Chief Secretary’s letter of

November 20, 2013 to the Bank, has conveyed its commitment to implement the reforms

intended under the restructuring and to ensure that all functions expected from a river basin

authority are accomplished by existing Irrigation Development Corporations (such as

MKDVC) and the State Water Board. In view of the above, achievement of this element of

the overall PDOs is rated moderately satisfactory.

Establishment of MWRRA (PDO Indicator 1). MWRRA was established in

August 2005 and its capacity was developed over the course of the project. The Authority is

discharging its mandated functions of: (a) setting water charges; (b) establishing criteria for

water entitlements; (c) regulating development of water resources in river basins, including

environmental/water quality; and (d) monitoring of the bulk entitlement program and dispute

resolution.

Restructuring of MKVDC (PDO Indicator 2). The objective was to restructure

MKVDC into the MKVWRC, as a fully functioning river basin agency with a newly

assigned primary role of preparing and periodically revising basin plans for the Krishna

Basin. GoM has drafted an amendment to the existing Act. However, the amendment has

not been enacted yet and the restructuring MKVDC remains a work in progress. GoM is

implementing the planning activities, including preparation of some sub-basin plans, within

the present institutional setup. A river basin plan for a sub-basin of Godavari River has been

prepared under the close guidance of MWRRA.

Restructuring of WRD (PDO Indicator 3). The restructuring of WRD was

completed, albeit later than envisaged. There has been a clear separation of water

development functions from water management functions, including irrigation service

delivery. This separation, combined with the establishment of WUAs, has allowed a

“partnership” to develop between WRD and WUAs. However, further reforms are required

to strengthen this partnership, which would improve irrigation system performance through

proper operation and maintenance (O&M). Training courses need to be strengthened to

impart the required new O&M skills to staff.

Piloting user-centered aquifer level groundwater management in three pilot

areas (PDO Indicator 4). One of the pilots was dropped because it required surface water

through a new irrigation development, which is not a part of this project. The core principle

developed from the pilots, of assessing, developing and sustainably managing groundwater

on an aquifer basis (instead of the earlier watershed basis), has been incorporated in the new

Maharashtra Groundwater Development and Management Act. The Act also mandates the

preparation of annual groundwater use plans. Successful outcomes of the Pilots have now

been significantly scaled up under a separate Bank supported intervention being

implemented over the period 2013-2019.

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In addition to the above the project also strengthened WALMI, which conducted

training courses that benefited about 24,000 people, including WRD managers and technical

staff, WUA management committee members, and NGOs. Integrated Computer Information

Systems (ICIS) activities have enhanced the state water resources planning capability through

the provision of real-time information and communication to senior policy makers. These

activities have strong backing from GoM and ownership from WRD management and staff.

GoM has committed to funding the further development of the ICIS.

3.2.2 PDO Part (ii). Improved Irrigation Service Delivery and increased

productivity of irrigated agriculture.

Achievement of PDO Part (ii) was through activities under Component B comprising

six closely inter-related sub-components B1-B6, The performance indicators and output

targets, as summarized in the table below (and in the DATA SHEET), have been achieved,

with minor shortcomings. There are, however, some risks to the sustainability of the WUAs.

In view of this, achievement of PDO Part (ii) is rated moderately satisfactory.

Table 2. Summary of the Achievement of Key Performance Indicators for

Component B Indictor Appraisal Target Achievement at ICR

Improved Irrigation Service Delivery and

Management and increased productivity of

irrigated agriculture

1. WUAs formed 1,708 1,704

2. All WUAs are functional 1,509 1,384 (93%) of WUA second

term elections completed.

3. Schemes with Volumetric charging and bulk

water supply as per entitlement 6 236

4. Increased Water Delivery Efficiency (WDE) 100% increase

over BL 99.4 % increase over BL

5. Improved water use efficiency (WUE) at key

levels of irrigation systems

(i) Scheme Level 125 Ha/MCM 147 Ha/MCM

(ii) Distributary level 190 Ha/MCM 260 Ha/MCM

(iii) Minor level 238 Ha/MCM 270 Ha/MCM

6. Increased incremental income/unit of water

supplied (schemes under ASS) Rs. 3532/TCM Rs. 9219/TCM

7. Improved collection efficiency of irrigation

water charges

20% increase

over BL 61.7 % increase over BL

8. Increased Farm Household Income 30% increase

over BL 110% increase over BL

Notes: BL=Baseline survey; TCM = Thousands of cubic meters; MCM=Millions of cubic meters.

3.3 Efficiency

Rating: Moderately Satisfactory

The estimated overall economic rate of return (ERR) for the project was recomputed

at completion using the same methodology as at appraisal. The ERR at completion is

acceptable at 20.8%, although it is somewhat lower than the 27.8% estimated at appraisal.

Project benefits were delayed because of the need for a two year extension of the loan

closing date to complete project activities. Annex 3 provides more details, including the

14

identification of some computational errors at appraisal that are not systemic and did not

affect the calculation of project ERR and NPV.

3.4 Justification of Overall Outcome Rating

Taking into account the rating of High for Relevance of Objectives, Design and

Implementation, the rating of moderately satisfactory for Achievement of Project

Development Objectives, and moderately satisfactory for Efficiency, Project Outcome is

rated Moderately Satisfactory.

3.5 Overarching Themes, Other Outcomes and Impacts

Poverty Impacts. Poverty reduction was a higher level objective and not a specific

PDO. That said, the project had a significant poverty impact, as the average agricultural

income increased more than 200% from Rs.29,245/year at baseline to Rs.64,220/year at

project close. The majority of the small farmers constitute the rural poor and their incomes

have risen by over 250% as a result of the project.

Gender Aspects. Overall, the project benefited both men and women equally and

was not designed to specifically benefit women. However, each SEMP contained activities

targeting the inclusion of women and other vulnerable groups. Women benefited from the

successful implementation of Gender Action Plans (GAPs) in all of the 235 irrigation

schemes under the project. WALMI conducted 36 training courses specifically tailored to

women. At appraisal it was estimated that there would be about 3,600 female participants

in training courses, but the courses proved so relevant and popular that at project end 4,009

women had participated in the training programs.

Social Development. Tribal Development Plans (TDPs) were implemented

satisfactorily in all of the applicable 41 schemes. They addressed the inclusion of tribal

communities through targeted training and capacity programs (conducted by WALMI) for

WUA members from these communities and through site visits and community level

training programs conducted within the communities.

Other unintended Outcomes and Impacts (Positive and negative)

Not Applicable

3.6 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops

Not Applicable

4. Assessment of Risk to Development Outcome

The overall risk to development outcome is assessed as Moderate, based on the

following considerations:

a. Continued Political Commitment of GoM to pursue Water Sector reforms. Implementation of the MWRRA Act of 2005 and the MMISF Act of 2005 under

the project confirmed GoM’s commitment to transfer irrigation system

management to WUAs. It also confirmed their commitment to bulk supply and

15

volumetric charging of irrigation water to WUAs as per their water entitlements

and through effective involvement of WUAs. GoM’s commitment to implement

reforms is also indicated by the Chief Secretary’s letter to the Bank, referred to

above.

b. Sustainability of WUAs. Both national and international experience shows that

maturing of WUAs as institutions takes considerable time and requires on-going

State support beyond the project. The necessary legal backing and incentives are

in place to sustain WUAs and enable them to perform their mandated functions.

Most WUAs have permanent offices and GoM is committed to providing

permanent offices to the remaining WUAs. Distribution systems for irrigation

management have been handed over to 80% of the WUAs. In March 2014, GoM

issued a Government Order to establish a permanent unit for the continued

training and capacity building of WUAs.

5. Assessment of Bank and Borrower Performance

5.1 Bank Performance

5.1.1 Bank Performance in Ensuring Quality at Entry


Project preparation started in 2003 when GoM, with support from the Bank, began to

identify and address the reforms necessary in the water sector. The Bank provided

additional technical assistance and knowledge support to GoM in strengthening the enabling

policy, regulatory and institutional environment for a possible Bank supported project. The

Bank also subjected the project to a thorough QER to provide detailed guidance to the task

team for ensuring quality at entry. Project design adequately addressed environmental,

poverty, gender, Pest and Nutrient management aspects. (See section 2.4). The Project FM

was designed around domestic procedures. The Bank had a multi-disciplinary team of

specialists that supported project preparation and carried out project appraisal (See annex 4).

The M&E system (Section 2.1.5) was adequately designed, but PPMU responsibilities for

M&E could have been developed further. However, the overall project design was complex

and the risks associated with the restructuring of MKVDC were underestimated.

5.1.2 Quality of Supervision


Seventeen supervision and implementation support missions were conducted over the

life of the project. All but the last supervision mission were led by the same senior TTL

who was involved from the beginning of the reform process in Maharashtra. Supervision

missions focused on the development impacts of institutional and irrigation system

improvements. A persistent problem that was not adequately addressed and resolved was

the setting up of the M&E unit within the PPMU to analyze quarterly reports prepared by the

M&E consultant. The project was originally designed with two formal reviews to be carried

out in December 2007 and December 2009. However, because of the slow start to the

project, the planned December 2007 review was postponed and a traditional MTR was held

in March 2009.

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The MTR identified the need for project restructuring which was completed

thereafter in a timely manner. The Bank followed up on critical loan covenants and

downgraded the DO rating to moderately satisfactory to reflect non-compliance with the

covenant regarding the restructuring of MKVDC. Bank dialogue with GoM resulted in GoM

confirming its determination to implement the key reforms underpinning the restructuring of

MKVDC within the existing structure.

Because the Bank’s core supervision team was based in Delhi it was able to follow-

up on issues through frequent contact with the Borrower, thus providing consistency in

guidance and continuity. The supervision team had an appropriate skills mix to address the

policy, regulatory, institutional, technical and fiduciary requirements of project

implementation. At the end of each formal mission, the team proactively, clearly, and

candidly identified critical issues affecting implementation and project effectiveness, and

provided guidance through detailed aide memoires and guidance notes/annexes and

informal follow up visits.

Fiduciary and Safeguards Supervision. Supervision of fiduciary, environmental

and social safeguards aspects was satisfactory. Specialists with the required skills in FM,

procurement, environmental management and social development were consistently part of

the core Bank supervision missions throughout the project, in day-to-day follow-up, and

interaction with the PPMU. Dam safety aspects were supervised by the Task Team Leader

who had a background in this field. Compliance with the Bank’s dam safety requirements

were further strengthened by the high level of involvement of the expert DSRPs.

5.1.3 Justification of Rating for Overall Bank Performance

The rating for overall Bank performance is Moderately Satisfactory based on the

ratings for performance in ensuring quality at entry and quality of supervision, as detailed

above.

5.2 Borrower Performance

(a) Government Performance


In 2003, GoM developed a vision for the longer term reforms required in the water

sector and took steps to establish the necessary policy and regulatory frameworks upon which

the project was built. This commitment remained strong throughout implementation and

GoM deserves credit for the satisfactory implementation of sectoral reforms discussed in

Section 3.2. However, the legal covenant to restructure MKVDC into a fully functioning river

basin agency was not complied with, although GoM has implemented activities envisaged for

MKVWRC under the existing setup, e.g., developing water resources plans with a river basin

concept. Delays in the allocation of counter-part funding affected project implementation.

(b) Implementing Agency or Agencies Performance


17

The three existing government agencies responsible for project implementation

contributed to a mostly satisfactory or better level of achievement of project outputs and

outcomes (see Annex 2 for details). As discussed in Section 2.4, fiduciary and safeguard

aspects of the project were implemented in compliance with Bank requirements. Loan

covenants were complied with, except for the one relating to the restructuring of MKVDC,

which was primarily a GOM responsibility. Issues identified by Bank missions were

generally addressed in a timely manner, e.g., FM reporting, speedier implementation of the

dam safety component, and quality control of civil works implementation. However, the

PPMU suffered from staff shortages in key areas.

(c) Justification of Rating for Overall Borrower Performance


The overall rating of moderately satisfactory is based on the ratings of Government

performance and implementing agency performance.

6. Lessons Learned

a. Success of institutional reforms depends on level of government

commitment. The success of broad sector-wide institutional reforms, similar to

those undertaken by this project, needs significant upfront political commitment

and effective Bank dialogue with government (as well as technical assistance

support) so as to have the key legal, policy and legislative frameworks (State-

water policy, MWRRA Act and MMISF Act) in place before project

effectiveness.

b. Client capability for effective M&E. The focus should be on building client

capacity for M&E through training and investment in computerized systems

instead of mostly relying on M&E consultants to carry out project M&E.

c. Importance of well-designed agricultural support services. The effectiveness

of large infrastructure investments to rehabilitate/modernize irrigation systems

for improved water use efficiency and productivity are considerably enhanced by

the inclusion of a well-designed and well-implemented agricultural support

services component. This component should support farmers in improving

cropping and cropping systems.

d. Effective Information, Education and Communication (IEC) activities. IEC

activities were an important part of this project because of the significant and

complex policy and institutional changes. IEC activities are more effective and

far better coordinated when they are designed as an integral part of a particular

component or sub-component, e.g., with the groundwater pilots, rather than as a

standalone sub-component.

e. O&M funding for rehabilitated and modernized irrigation schemes. A

fundamental change in government procedures is needed to address the

disconnect between a) increased water charges and collections that reflect full

O&M costs and b) low budget allocations for O&M.

18

f. Continuity in WUA Elected Representatives. There is a 100% turnover of

positions in WUAs every six years which affects their continuity and

sustainability because the “institutional” memory and functionality are lost and

new capacity needs to be built. Consideration should be given to amending the

MMISF Act to allow staggering of the election of representatives such that half

the members are elected for a six year term every three years.

7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners

(a) Borrower/implementing agencies

The Borrower commented that some of the data on outputs contained in the initial

draft ICRR needed updating; this has since been done. The Borrower suggested that ratings

of project performance, as well as Borrower and Bank performance be revisited based on the

updated data for a more balanced assessment of the achievements and shortcomings of this

complex project. The Borrower’s comments and the updated data were taken into account in

finalizing the ICR and the ratings have been revised.

(b) Co-financiers

Not Applicable.

(c) Other partners and stakeholders

None.

19

Annex 1. Project Costs and Financing

(a) Project Cost by Component (in USD Million equivalent)

Components

Appraisal

Estimate (USD

millions)

Actual/Latest

Estimate (USD

millions)

Percentage of

Appraisal

Water Sector Instl. Restructuring

and Capacity Building 21.11 10.97 52%

Improving Irrigation Service

Delivery and Management 321.35 281.08 87%

Innovative Pilots 4.80 1.05 22%

Project Management 4.02 3.14 78%

Total Baseline Cost 351.28 296.24 84%

Physical Contingencies 27.14 21.39

79%

Price Contingencies

13.72 10.79 79%

Total Project Costs 392.13 328.38 84%

Front-end fee PPF 1.63 1.28 79%

Front-end fee IBRD -- -- --

Total Financing Required 393.77 329.65 84%

(b) Financing

Source of Funds

Type of

Co-

financing

Appraisal

Estimate

(USD millions)

Actual/Latest

Estimate

(USD

millions)

Percentage

of Appraisal

Borrower 61.15 0 10%

International Bank for

Reconstruction and Development 325.00 292.05 90%

Local Farmer Organizations 7.62 0 0

20

Annex 2. Outputs by Component

Table 2.1 Component/Sub-component Outputs.

Project Component Output Description

Targets

at

Appraisal

(PAD)

Revised

targets

(March

2012)

Actually

Achieved at

Completion

(ICR)

PAD

(%) Restr. (%)

Component A. Water Sector Institutional

Restructuring and Capacity Building

Subcomponent A1: Establishment

operationalization and fostering of Maharashtra

Water Resources Regulatory Authority (MWRRA).

Estab fully

functional

MWRRA

Not

Revised 100% 100% N/A

Subcomponent A2: Restructuring of existing

Krishna Valley Development Corporation into the

Maharashtra Krishna Valley Water Resources

Corporation

No

MKVWRA

Not

revised 0% 0%

Subcomponent A3 Restructuring and capacity

building of the Water Resources Department

Existing

old

WRD

Not

revised 100% 100%

Subcomponent A4: Strengthening and capacity

building of WALMI

Total number of training courses, seminars and

workshops for: (i) WRD staff, (ii) farmers; WUA

office bearers, and MC members

356 Not

revised

315 88%

Total number of participants: (i) WRD staff; (ii)

farmers; WUA office bearers; and MC members

22,987 Not

revised

23,489 102%

Subcomponent A5: Establish Integrated

computerized information system (ICIS)

No ICIS

existed

Not

revised

100% 100%

Component B. Improving Irrigation service

delivery and management

Subcomponent B1: Participatory rehabilitation and

modernization of selected irrigation schemes.

CCA of Irrigation Schemes covered 670,000 645,604 608,007 91% 94%

Increase in gross area irrigated 100,000 Not

revised

129,305 129%

Subcomponent B2: Dam Safety Works

No. of Dams included 291 281 266 91% 95%

Establish three DSRPs 3 3 3 100% 100%

Subcomponent B3. Formation and capacity

building of water user associations (WUAs) at

minor level.

1591 1509 1508 95% 99.9%

Distributory level associations (DLAs) 113 121 121 107% 100%

Main and Branch Canal level Associations (CLAs) 10 34 33 330% 97%

Scheme Level Associations (PLAs) 51 44 42 82% 95%

21

Project Component Output Description

Targets

at

Appraisal

(PAD)

Revised

targets

(March

2012)

Actually

Achieved at

Completion

(ICR)

PAD

(%) Restr. (%)

Subcomponent B4. Improved water management

practices in six selected irrigation schemes.

6 6 232 3,766% 3,766%

Subcomponent B5. Agricultural support services

No. Irrigation Schemes included 38 66 174%

Organizing agricultural demonstrations 10,000 32,503 325%

Strengthening the SAEMITI 1 - 1 100%

Strengthening selected RAEMTIs 7 - 4 57%

Strengthening Agro Polyclinics 81 - 75 93%

Subcomponent B6. Environmental and Social

Management

Component C. Innovative Pilots

Subcomponent C1. Piloting of user centered

aquifer level groundwater management in pilot

areas.

4 3 3 75% 100%

Subcomponent C2 Piloting innovative irrigated

agriculture in four pilot areas

4 Dropped

at MTR

0 0% 0

Component D: Project Management

Subcomponent D1. Establishment of state level

project preparation and management unit.(PPMU)

1 1 1 100% 100%

Subcomponent D2. Monitoring and evaluation.

Monitoring reports submitted every six months + an

M&E ICR

10+3 14+4 14+4 138% 100%

Engage consultant and complete a Baseline Survey. 1 1 1 100% 100%

Engage third party International M&E consultant

for duration of project. 1 1 1 100% 100%

Subcomponent D3 - Information education and

communication programs.

Not

specified in

PAD

The project components, sub-components and related achievements are outlined

below:

1. Component A: Water Sector Institutional Restructuring and Capacity Building

1.1. Subcomponent A1 - Establishment, operationalization and fostering of MWRRA

The MWRRA was established in August, 2005 and has been operationalized in terms

of budget, HR provisions and mandated functions. In terms of function there have been a

number of notable advances in terms of activities and outputs in relation to rules, regulation

and planning. These are indicated below.

a. A number of institutional rules have been adopted including (a) conditions of

services of Chairpersons (September 2006), (b) recruitment and conditions of

22

services of employees- (Aug 2013) (b) MWRRA (Conduct of Business)

Regulation (Aug 2013).

b. Fixing Bulk water tariff: Finalization and adoption of criteria for and issuance of

Tariff Order for Bulk Water Regulations (Aug 2013). Bulk water charges for

various categories for period 2010-13 were fixed using the new criteria and

processes development by the MWRRA, which included input from a state wide

public consultative process. A more refined process for determination of criteria

for Bulk Water Tariff in Maharashtra led by MWRRA for the period 2013-16 is

underway.

c. Water Entitlements: The MWRRA has published 2 key documents. (i) Technical

Manual for fixing, regulating and enforcing the entitlement on irrigation projects,

(January 2007) and, (ii) Procedures for regulation and enforcement of

Entitlements - Powers and functions of regulators, (October, 2007). In total, 232

projects covering 1341 WUAs under MWSIP are now included in water

entitlement program. In addition, 25 projects covering 27 WUAs outside the

MWSIP have also been included in the program.

d. Annual reports: The MWRRA prepares and publishes annual reports on the

evaluation of the Bulk Entitlement program. Reports have been published for

2008-09 to 2011-12.

e. Water Resource Development: To standardize preparation of river basin plans, the

MWRRA has prepared a Technical Manual for Preparation of River Basin Plans.

f. Other Key Functions: Since establishment, MWRRA has cleared 189 new major

water resources projects and is actively engaged in monitoring bulk water

entitlement awareness campaigns. The Authority also has responsibility for state-

wide water quality issues and is developing an environment management plan for

the Krishna River Basin

g. Dispute Resolution: The Authority is responsible for dispute resolution relating to

bulk water entitlements and tariffs and has resolved 9 cases.

1.2. Subcomponent A2 - Restructuring of Existing MKVDC into MKVWRC

The restructuring of the MKVDC into a river basin agency was not completed under

the project for reasons outlined in the main report – sections 2 and 3. However, in terms of

function GoM and WRD have begun institutionalizing the processes of integrated water

resource management (IWRM) on the basis of river basin plans. There were no specific KPIs

for sub-component A2 at appraisal.

1.3. Subcomponent A3 – Restructuring and capacity building of WRD

In large part, the restructuring was in line with Government orders (GOs) of October

12, 2010. The principal aim of the restructuring was to separate the primary functions of

water resource development and management. This separation has been completed with each

functional area of responsibility assigned at the secretary level. The design and

23

implementation of the ICIS (see sub-component A5 below) was an important and integral

part of the restructuring of WRD.

1.4. Sub-component A4: Strengthening and capacity building of the Water and Land

Management Institute (WALMI).

The WALMI is the nodal training institute of the WRD. Under the MWSIP, funding

was provided for strengthening and capacity building of WALMI, establishment of and

operational support to a dedicated cell for the training of WUAs and staff of the WRD. At

project close the following activities and outputs were achieved;

a. 315 training programs (88% of target)

b. 23,489 trainees against a target of 21,201 (111%). The participants included

technical staff and officers of the WRD, management committee members of

WUAs, WUA members/farmers, WUAs secretaries, NGOs. Training included

participatory irrigation management / irrigation water management, technical

training for mid-level officers, MMISF Act, water entitlement, training courses for

training of trainers, M&E of WUAs, communication, state level seminars on

Participatory Irrigation Management.

At ICR, there was one key limitations identified that may impact sustainability, - the

lack of institutional capacity to provide training to a growing number of WUAs in future. In

order to address this shortcoming in March 2014, GoM, issued a GO for the establishment of

a permanent unit for the continued training and capacity building of WUAs. To this end, 19

new permanent staff posts have been approved for this new unit.

1.5. Subcomponent A5 – Integrated computerized information system (ICIS)

As part of institutional capacity development, the project funded the establishment of

an Integrated Computer Information System under the WRD. The key aims of the ICIS were

to improve availability of real time data for improved water planning and inter and intra

departmental management information system for decision making. At project close, the ICIS

unit had been established, equipped and computer systems commissioned. The application of

the ICIS has spread across the sector.

A special campaign named e-Jalseva Abhiyan (e-Water), aimed at a broad range of

WRD staff was conducted over the period September-October, 2013 to create awareness,

training, data digitization, data validation and the use and application of ICIS. Regular

monthly bulletins regarding e-Jalseva are being published. GoM has now established a

permanent dedicated Project Management Office at Pune to ensure the sustainable

maintenance and continued development and training of e-Governance. GoM has issued

instructions to all departments to spend up to 0.5% of their allocated budget for e-Governance

activities.

Overall the ICIS was an ambitious e-governance initiative under the project. It was

conceptualized as a Management Information System (MIS) at appraisal and later was re-

designed and implemented as a comprehensive integrated e-governance project covering 726

offices of the WRD. Employees, citizens, farmers WUAs, industries, project affected

persons (PAPs), contractors, other government departments, the media etc. are the major

24

stakeholders of the WRD. The short to medium-term objective of e-Jalseva is to fulfill the

major information requirements of these broad stakeholders. However, under the project, the

biggest beneficiaries of the system are the employees of WRD and staff of other institutes

within the water sector. Tangible benefits of the ICIS include:

a. Centralized and Unified Database. ICIS assisted with the creation of one central

database updated only by the owner of the data, and then validated. Decision

makers have instantaneous access to up to date and accurate data.

b. Cost and time saving. Before ICIS, the time taken to collect and receive data,

information and reports from field offices could take anywhere between 15 days

to 2 months. The ICIS now has provided data information platforms for timely

access to information both vertically and horizontally within WRD.

c. Record Management and Documentation. Computerized data bases to store

projects data are being developed. This will significantly improve management

access to information and performance.

d. Capacity development. WRD staff are becoming increasingly aware and

capacitated to use the ICIS. This has created a sense of ownership and familiarity

in the use of computer technologies. At the field level, especially in remote areas,

ICIS has greatly improved connectivity through use of laptops and through

networks. Under the project, a total of 10,000 person hours of training were

provided to WRD staff. This training took the form of formal training sessions,

workshops, discussion forums etc. Nearly 600 Master Trainers along with the

Change Management Division of the ICIS PMO worked very hard to empower

individual employees, from Senior Managers to junior ranks, and to ensure broad-

based ownership within the WRD.

e. For further details of the ICIS application under the project can be accessed at

https://wrd.maharashtra.gov.in.

2. Project Component B: Improving irrigation service delivery and management

2.1. Sub-component B1 - Participatory rehabilitation and modernization of irrigation

schemes

The sub-component was the largest investment component, which aimed to improve

irrigation service delivery through the rehabilitation and modernization of existing irrigation

schemes.

A total of 235 schemes were rehabilitated covering CCA 608,007 Ha (94% of revised

target). Works in 5 minor schemes covering a CCA of 1624 Ha could not be completed

before project end. However, GoM are committed to completing these using domestic funds.

A summary by canal rehabilitation scheme (major, medium and minor) and modernization

works is given in the following table:

25

Table 2.2 Sub-component B1 achievements against target

Target

Schemes

Actual

Schemes

Target

CCA (Ha)

Achieved

CCA (Ha)

Completion Status

Major 12 12 473,772 447,876 95%

Medium 11 11 54,685 47,236 86%

Minor 212 207 117,147 112,895 96%

Total 235 230 645,604 608,007 94%

The rehabilitation works mainly included re-sectioning of canal, lining in selected

locations, repairs to structures, installation of measuring devices. About 43,636 TCM of

earthwork, 6.956 million square meters of concrete lining and repairs to 42,115 canal

structures were completed. Canal rehabilitation and modernization works on minor canals

were carried out with the full participation of WUAs, through membership and representation

on locally established contract management committees.

At ICR, it is assessed that adequate arrangements were made for Quality Control and

Quality Assurance (QC/QA) of all works carried out under this sub-component. The QC/QA

responsibilities were assigned to an independent QC/QA organization in the WRD, which

consists of three independent QC Circles (units), each managed by a Superintending Engineer.

All the works on the canals were to be carried out without interruption to existing

irrigation service. The works were only carried out during scheduled canal closure periods.

However, construction time, particularly in main branch and distributary canals, was

significantly under estimated at appraisal, resulting in more construction time being required.

This is the main factor behind the 2 year extension to the project. After completion of minor

level canal rehabilitation, the management of the systems was transferred to 1,202 WUAs

covering area 507,496 Ha (79 %).

Also included under this subcomponent was the construction and rehabilitation of 236

(37 new and 199 rehabilitated) drainage schemes. At project close, all 236 drainage schemes

have been completed and handed over to WUAs for future operations and maintenance.

b. The main achievements at intermediate outcome level were:

As expected, investment in rehabilitating and modernizing irrigation schemes

improved system delivery performance, positively impacting the following key area:

Water Utilization Efficiency (WUE) at Scheme Level

WUE increased from 96 Ha/MCM to 147 Ha/MCM, representing an increase of 53%

compared to the target of 30% at appraisal. Incremental WUE was higher on minor schemes

compared to major and medium schemes as shown in Figure 1 below

.

26

93 95

156

96

138 145

208

147

0

50

100

150

200

250

Major Medium Minor OverallWU

E H

a/M

CM

Figure 1: WUE for All MWSIP schemes

Baseline Value Achieved Value

31 33 30 31.19

55.7

62.37 93.3

60.96

0

20

40

60

80

100

Major Medium Minor Overall

WD

E

%

Figure 2: WDE for Overall MWSIP schemes

Baseline Value Achieved Value

Source Consultants: M&E final impact report

b1. Water Delivery Efficiency (WDE)

For all schemes under the project, the WDE increased from 31.19% to 60.96%

representing an increase of 95% over BL against a target of 100%. A breakdown of schemes

shows increases of major 80%, medium 89% and minor 211% schemes as presented in

Figure 2 below.


b2. Revenue Collection Performance (RCP) - Irrigation Water

For all schemes under the project, the RCP increased from 45% to 61.7%, compared

to a target of 54%. This is 114% of the target at appraisal. The largest increase was on minor

schemes 36% to 60.9% followed by major schemes, while medium schemes actually

experienced a reduction from 49% to 36%. Figure 3

27

Figure 3 Revenue Collection Performances (RCP) for Irrigation Water


b3. Reveune Collection Performance – All Water Users

For all schemes under the project, the RCP for all commercially provided water

services (irrigation, drinking and Industrial water) improved from a baseline value of 52.3%

to 79.5%. The target was set at a 20% increase over the baseline (ie 62.8%). The actual

achieved RCP was 79.5%, which is 127% of the target. Major schemes had the biggest

increase in RCP, followed by minor schemes. Both surpassed the target of 62.8%. However,

medium schemes, which recorded the highest baseline figure (61%), actually had a reduction

to 51%. Figure 4

Figure 4: RCP for a ll users (Irrigation, drinking, and industrial water)


b4. Increased Value of Crop Production/Unit of Irrigation Water

For all schemes under the Agriculture Support Services (ASS) sub-component of the

project, agriculture income increased from Rs. 3,532 /TCM to Rs. 9,219 /TCM (201% over

target of Rs. 4592/TCM). For the baseline schemes tracked separately under the project’s

M&E arrangements, the income increase was somewhat less at Rs 7,889/TCM. Figure 5

46 49

36 45

65.2

36.0

60.9 61.7

0

10

20

30

40

50

60

70


RC

P a

s %

RCP (Irrigation Water) for All MWSIP schemes

Baseline Value (Irrigation water) Achieved Value

51.0 61.0 59.0

52.3

80.6

51.3

72.0 79.5

0.0

50.0

100.0


RC

P a

s %

RCP (Total Water) for All MWSIP schemes

Baseline Value (Total water) Achieved Value

28

Figure 5 Increased value of crop production per unit of irrigation water supply

2.2. Sub-component B2 – Dam Safety Works

The original objective of this subcomponent was to carry out dam safety works on a

total of 291 dams serving 286 schemes (9 major, 13 medium and 264 minor schemes).

However, due to changes to the number of schemes included at MTR, the dam safety

activities were altered to include dam safety works on 281 dams supplying 278 schemes (8

Major, 12 medium and 258 minor schemes). Of the 281 dams, works on 266 dams were

completed under the project (95% of revised target). Dam safety works on the remaining 15

dams serving 15 minor schemes could not be completed within the project period, due to

difficulties associated with contract administration and local site problems. The GoM,

however, has given assurances that all of these remaining dams will be completed through

domestic funds.

The dam safety works, as recommended by three Dam Safety Review Panels (DSRPs),

mainly included restoration of the dam section, raising the dam top in view of design flood

review, leakage treatment, repairs to waste weir / spillway, works in downstream apron, tail

channel, grouting, instrumentation, strengthening of dam section in view of revised seismic

zone, repairs to drains, relief wells, repairs / reconstruction of head regulators, repairs to

electro mechanical components (gates, hoist, cranes). DSRPs visited the site during the

implementation of works.

Arrangements for the QC/QA of these works were the same as for the rehabilitation

and modernization works.

The outcome of this investment was such that the safety of the dams was brought up

to contemporary national and State-wide engineering standards.

2.3. Sub-component B3 – Formation and capacity building of WUAs

At output level the achievements of the project were:

a. At MTR, targets were revised to register about 1,708 WUAs (1,509 minor level

WUAs, 121 DLAs, 34 CLAs and 44 PLAs). At project close, 1,704 WUAs had

formed (1,508 minor level WUAs, 121 DLAs, 33 CLAs and 42 PLAs). During

project implementation, the initial six-year tenure of 1,493 WUAs was completed

3,532

7,889

9,219

0

2,000

4,000

6,000

8,000

10,000

Baseline Value Actual for BL schemes Actual for All MWSIP

(66 schemes under Agri

comp)

Ag

ri.

In

co

me

(

Rs./

TC

M)

Agricultural Income (Rs./TCM)

29

and second term elections were completed for 1,384 WUAs. The re-elections

process for all WUAs is on-going and will continue to be supported beyond the

project by the reorganized WRD.

b. Capacity building of 1,508 WUAs was completed under the project and initial

training was provided to 1,367 WUAs (91%). First refresher training was

completed for 1,040 WUAs (69%), second refresher training for 491 WUAs

(33%), and the third refresher training was completed for 98 WUAs (7%).

c. A total of seven NGOs were appointed for a period of 3 years for capacity

building of WUAs. However, it was necessary, especially at the critical stage of

completion of rehabilitation works and system handing-over phase, to extend the

use of NGOs for period of 1 year in 2 regions (Jalgaon and Pune) for capacity

building of WUAs.

d. The original objective was to construct 1,704 WUA office buildings. At project

close, a total of 1,120 buildings were completed. For the remaining 584, some

could not be included in the project due to various reasons, but mostly because

WUAs where unwilling to contribute their 15% share of building cost. In a few

cases, there was a problem with the availability of suitable land. The requirement

was that land for WUA offices must have a separate title and be permanently

transferred to ownership of the WUA. The WRD is committed to solving these

outstanding problems.

e. There were a total of 28 study tours / exposure visits organized for WUAs

covering 1,603 participants.

f. After rehabilitation of minor level canals the works were progressively handover

to WUAs for MOM. At project completion, works handed over to 1,202 WUAs

(80% of WUAs), covering area 507,496 Ha (83% of the completed CCA) had

been completed. The remaining 306 minor level systems are in the process of

being handed over and could not be completed during the project period because

of the completion of civil works. However, the management mechanisms are

permanently in place and the GoM is committed to completing the handover as

soon as possible.

g. Other Impacts: The election cycle means that there is a 100% turnover of

positions on WUA MCs every six years. When there is a significant change of

office bearer at WUAs, WALMI must provide training all over again for the new

appointees. To improve the efficient use of WALMI resources dedicated to WUA

training, one option is to amend the MMISF Act to allow “half elections” i.e. half

the elected members of WUAs retire every three years after their six year term.

This has the potential to halve the number of trainees at any one time from mature

WUAs. The added advantage would be for the WUAs themselves. Even with the

election of all new members at a “half elections”, at least half the members will

retain the “institutional memory” and the WUA can remain functional and stable.

Members not facing election can also help the newly elected members assimilate

and get them up to speed sooner.

30

2.4. Subcomponent B4 – Improved water management practices in selected schemes

Improved water management practices, including volumetric charging and bulk

delivery of water to users as per the WUA water entitlements have been implemented in 6

schemes (Ghod and Kukadi, Mangi, Diwale, Hiware and Benikre) in the Krishna Basin.

These activities were scaled up considerably. For the year 2013-14, a total of 232 projects

and 1,341 WUAs, covering area 603,121 Ha are included in the water entitlement program.

Volumetric measuring devices are installed for 1390 WUAs (93% of WUAs).

2.5. Subcomponent B5 – Agricultural support services

This subcomponent aimed at increasing productivity of water through irrigated

agriculture intensification and diversification. Originally, the main focus was on 38 schemes

in 19 districts, covering an area of about 450,000 ha of CCA. Agricultural intensification and

diversification are planned to be achieved through: (i) improved agricultural support services;

(ii) strengthening of extension-farmer-market linkages; (iii) effective collaboration of GoM

line Departments (Departments of Water Resources, Agriculture, Fisheries, Agricultural

Marketing, etc.); and (iv) greater involvement of the private sector.

For achieving the desired outcomes, various extension activities were to be temporally

and spatially integrated with asset rehabilitation and on-farm development programs in the

project’s minor, medium and major irrigation schemes. The areas of activity were to be

planned in terms of head, middle and tail regions of a minor/distributary or an irrigation

scheme which reflect different levels of water availability. The implementation arrangements

included the setting up of a Policy Support Group at State level, a Project Coordination Unit

in the Commissionerate of Agriculture, 33 Agricultural Technology Management Agencies

(ATMA) at district level and Village Support Groups at village/WUA level. The Department

of Agriculture was responsible for the overall coordination and implementation of this sub-

component.

The design included implementation through a community-based approach with the

active participation of the beneficiaries and other stakeholders (including line departments,

NGOs and private sector) in the design, implementation and monitoring of the interventions.

For enhancing interdepartmental coordination and effectively involving farmers in the

planning and implementation of various activities, multidisciplinary and interdepartmental

support groups at scheme (village, taluk and district) level were created. The approach was

planned as fully participatory, based on farmer’s perceived needs, and used farmer groups

linked to WUAs. The project design envisaged the following support: preparation of

agriculture development plans in the selected irrigation schemes, training of farmers and line

department staff, exposure visits, organizing about 10,000 demonstrations, strengthening of

State Agricultural Extension Management Training Institute (SAEMTI), 7 Regional

Agricultural Extension Management Training Institute (RAEMTIs) and 81 Agro Polyclinics,

feasibility studies, setting up ago-enterprises and other innovative activities, monitoring and

evaluation, and impact assessment.

At output level the achievements of the project were:

a. The ASS component ultimately included a total of 66 schemes (target of 38), 9

major, 13 medium and 44 minor, covering approximately 481,000 ha (target of

31

450,000 ha), about 79% of the total area rehabilitated (608,007 ha) under

Component 1. The coverage of an additional 31,000 ha without a significant

increase in the original budget allocation was a significant achievement. The

project conducted about 32,500 demonstrations, trained 763,650 farmers and

undertook various other extension activities. As a result, the cropping intensity is

reported to have increased from a baseline figure of 120% to 130% in 2012-13.

b. Monitoring of adoption rates by the project indicate that large areas (more than

287,000 ha) are now producing crops using better farming practices. A good

example is mulching in sugar cane, where as a direct result of the project, about

85,000 ha are now covered by this technology. Generally there were significant

increases in yields over the baseline (8% for cereals to over 100% for fruits and

vegetables). However, productivity gains in the control groups were higher for

cereals at 28% - recognizing that control baseline yields (1.2 t/ha) were much

lower than project baseline yields (1.6 t/ha). The project achieved significant

diversification in terms of a shift in cropping patterns, primarily away from paddy

and into cash crops (cotton and sugar cane). The percentage of area under cereals

declined from about 50% of the command pre-project to 37% post-project, while

the area under cash crops increased from 11 to 29%. On-farm water use

efficiency (defined in this project as the area irrigated per unit of water) has

increased by about 34% to 129 ha/MCM. However, this value gives little

indication of the ‘water productivity’.

c. Integrated Pest and Nutrient Management. Under the Environment and Social

Management Plans (SEMPs) the promotion of Integrated Pest Management (IPM)

and Integrated Nutrient Management (INM) were introduced in 168 schemes with

the following encouraging results; reduction in average use of inorganic fertilizer

from about 200 kg/ha to less than 150 kg/ha and increase in organic fertilizer from

10.5 t/ha to 13.7 t/ha. Average use of chemical pesticides dropped from 1.8 lit/Ha

to 1.5 lit/Ha. On the other hand use of bio-pesticides has increased from 1.1 lit/ha

to 2.6 lit/ha.

d. The ASS component set out to deliver improved agriculture technology to

leverage the improved water availability and reliability as a result of the project.

Generally this was achieved with overall increases in productivity and production,

diversification, cropping intensities and a greater awareness - or culture change -

to understand the value of water (see the results framework). Additional benefits

were observed from the successful implementation of an agriculture enterprise

development program.

Institutional Development

a. This component was implemented through the Agriculture Technology

Management Agency - ATMA (GOI flagship program for the evolution of

agriculture extension, developed under WB funded projects National Agricultural

Technology Project and Diversified Agricultural Support Project). As the ATMA

was still in the initial phases of establishment, the project planned to expand and

strengthen ATMA activities in project districts (with some funding to support

infrastructure related to training facilities), and then to use this platform to plan

and fund project activities in detail. However, some key elements in ATMA were

32

thought to be lacking, mainly relating to interdepartmental coordination and the

effective involvement of farmers in planning and implementation. The following

were added (to ATMA) in the project design, Policy Support Group (state level),

POs and FOs, village support groups, and community resource persons.

b. Institutions – A number of institutions were planned under the ASS, these

included lower level institutions such as the Krishi Vigyan Mandal (KVM) and

the Village Support Group (VSG). These were seen as playing an important role

in delivery of agriculture services to farmers under the project. However, at the

MTR, the state level policy support group (PSG) though constituted and

functional, was not very effective, and was ultimately assumed by the State Level

Project Steering Committee.

c. The main purpose of the 300 KVM formed under the project was to provide

technical support to farmers under its jurisdiction. It consisted of representatives

from the VSGs, Krishi Sainiks, Krishi Mitras and representatives of the line

departments. It was structured in a way so they would have the potential to

become farmer producer organizations (FPO). It was reported that at least one

FPO is already registered. All KVMs have been registered under ATMA, which

allows them to provide certain services to farmers, such as seed production and

potentially extension services and gives them opportunity to continue operating

post project. While these groups are not necessarily formed in relation to the

command area of the irrigation project, nor the water supply, it is linked to the

number of farmers that will be under its jurisdiction. The KVM are (by design)

under the direct supervision of the WUA, however it is not clear how this works in

practice. The KVM might be better integrated if they were aligned with an

agriculture sub-committee under the WUA, and if farmer representatives (on the

KVM) were selected from/by the WUA.

d. The 1,369 VSGs consist of close to 6,845 krishi sainiks (lead farmers), NGOs,

input providers and field level line department staff and are under the supervision

of the ATMA. The role of these groups is to provide technical support directly to

farmer members of the WUA, as such there is almost one VSG per WUA.

However, these groups have a sustainability risk, as there is little connection to the

WUA. Likewise there is no formal arrangement for their continued connection to

ATMA. There are signs that the DOA is committed to having these groups and the

associated cascade extension structure integrate into ATMA, as the design was

largely driven by the Department. However, at present there is no formal plan in

place for the continuation of these groups beyond the project, and without them

there is a serious bottleneck for the agrarian line department’s outreach to farmers.

e. The viability of the VSGs would be greatly enhanced if there was a better linkage

with the WUAs on one hand and with the line departments on the other, combined

with a greater focus on development of commercial opportunities. These groups

could play a much greater role in the strategic planning and implementation of the

large number of on-going government programs if there were a more

comprehensive and inclusive planning mechanism from the departments.

f. In order to mainstream ATMA the strengthening of the State Agricultural

Extension Management Training Institute (SAEMTI), 7 Regional Agricultural

33

Extension Management Training Institute (RAEMTIs) and 81 Agro Polyclinics

and DTCs was seen as a key intervention at preparation for the improved delivery

of services (trainings) to both farmers and extension staff. This consisted primarily

of civil works for renovation of existing structures and supply of equipment,

engaging manpower (temporary contracts), travel and operational costs. Against

the targets, 55 (from 60) Agro Polyclinics, 20 (from 21) DTCs, 4 (from 7)

RAMETIs and the VANAMATI were strengthened under the project.

g. At design, Participatory Agriculture Development Planning was seen as key for

setting out the overall pathway to improved productivity and production in the

project area; as such these were included for all selected irrigation schemes.

Village support groups were formed to implement and monitor these plans. These

would then be consolidated into block and district level plans (under the guidance

of ATMA) and subsequently funded.

h. However, the Agriculture Development Planning by scheme was a concept that

was not well understood. At the MTR stage, the preparation of these remained an

outstanding issue. In the end only 3 were completed (Ahmadnagar, Nanded and

Sangli) and these plans were deficient because they “did not reflect the irrigation

scheme needs”. Subsequently, little attention was paid to this process. Future

projects should learn lessons from this experience, some suggestions include:

Planning for agrarian line departments is set on different boundaries

(administrative) to the irrigation departments (hydraulic) and irrigation schemes,

this needs to be better understood;

Poor capacity for (participatory) planning in line departments at field level should be addressed;

Poor understanding of the developmental needs of farmers, and variations between subsistence and commercial farmers, thus planning that caters to both is

recommended (may mean separate planning processes);

Project focus for planning excludes understanding of the wider need of farmers

(and the broader range of services available in other projects/schemes and line

departments), hence more holistic and inclusive planning is recommended;

Lack of farmer participation, while plans are conceived with the participation of farmers, the overall essence and approach of the line departments remains

somewhat paternalistic hence little farmer buy-in;

It may have been useful to produce pilot plans during the project preparation to guide the process;

Should have a goal for dynamic plans that are regularly assessed, reviewed and updated by stakeholders (rather than the shopping list approach);

These should be targeted at groups/WUAs that are developmentally ready.

Training and Capacity Building

a. Training of farmers and line department staff was conducted on a large scale,

approximately 1.2 million training days were provided for farmers.

Approximately 20% of the attendees at these trainings were female. The gross

number of farmers trained is over 763,650, however many of these received more

than one training so the net number trained is unknown. In addition, 594 farmer

34

exposure visits were conducted, both within and outside the State, with about

29,700 farmers participating.

b. The farmer training was implemented through a cascade approach. To facilitate

this approximately 320 training sessions were provided to both Master Trainers

(field level department staff) and to extension service providers (NGOs, lead

farmers, input sellers etc.) This covered about 8,350 persons (about 46% were

department staff). ATMA developed a system to both review and update training

materials on an annual basis (workshops and feedback), ensuring that trainings

remained relevant and interesting. In addition, trainings were provided to higher

level Department of Agriculture staff. This training then cascaded to the Krishi

Mitras (about 36,250 KM were trained, 1 for each five VSGs) and to 188,650

Krishi Sainiks. Extensive training was provided to these field functionaries to

build their technical capacity.

c. Demonstrations were reported as being one of the most successful tools for

dissemination of messages to farmers. Against a target of about 10,000, nearly

32,500 demonstrations were conducted on the fields of more than 145,000 farmers

covering close to 92,604 ha (or close to 24% of the Gross Irrigated Area of the

project). These were spatially distributed across the head mid and tail of the

irrigated area. Impressively, the Department also tracked the adoption of the

demonstrated technology through regular monitoring of farmers in the command

areas (through the network of Krishi Sainiks and Krishi Mitras). This helped to

sharpen the focus of the demonstrations to address farmer’s needs. By the close of

the project, the various technologies promoted under the ASS were assessed as

covering close to 287,000ha2 (note, this is about 77% of the gross irrigated area, a

number of demonstrations were repeated on the same fields). These covered

various thematic areas, including crop technology demonstrations, Integrated

Plant Nutrient Management, Integrated Pest Management, and Water Use

Efficiency. The crops in which technologies were adopted on the broadest scale

include sugarcane, cotton, soyabean, and gram.

d. An Agro Entrepreneurship Development Program was also included under the

component so that prospective entrepreneurs could be given support for

infrastructure development to enhance existing agriculture enterprises. Support

was envisaged for post-harvest management, agro processing and marketing.

Under this activity a total of 362 projects were approved, mainly on post-harvest

management (139), farm service provision (66), innovations (63) and agro processing (50).

The remainder covered horticulture, input supply, marketing and medicinal plant production.

However, only 336 were actually started, for which the average investment was close to INR

1.4 million. Entrepreneurs contributed close to 60% of this amount. Of the 336 projects, 58

were ‘bankable’, which meant that these enterprises were also able to obtain financing from

Banks. It was estimated that this program benefited about 13,000 farmers and created close to

3,000 jobs. The project provided support for these emerging enterprises to develop business

plans, then subsequently to monitor them (to see whether the expected returns were being

2 ASS Project Completion Report page 23

35

realized). Over 25% of these enterprises proved commercial enough that Banks were willing

to finance them, indicates the quality of the intervention, which is now being scaled up under

the World Bank funded Agriculture Competitiveness Project. 16 of these enterprises were

documented in case studies that reported on profits and losses, repayment (of bank loan)

capabilities and details that would be useful for other interested entrepreneurs.

Achievement of intermediate outcomes

Increases in Crop Yields – 5 to 20% o Increased production at full development

Cereals 303,000 tonnes

Oilseeds 37,000 tonnes

Pulses 10,700 tonnes

Fruits and Vegetables 99,650 tonnes

Sugarcane 200,600 tonnes

Cotton 850 tonnes

Cropping pattern shifts to fruit and vegetable – 2 to 10 percent of the area (after

completion)

Adoption rates for the improved production management techniques were spread over 4 years starting with 25% one year after the scheme completion and increasing at the

same rate thereafter.

Irrigated Area Expansion 65% increase, gross fully irrigated area expands by 105,082 ha and gross partially irrigated area 41,534 ha.

2.6. Subcomponent B6 – Environment and social management plans

Based on issues in each river basin, Social and Environmental Management Plans

(SEMPs) were to be prepared to mainstream environmental concerns under this

component. GoM had completed an Integrated Socio Environmental Assessment (ISEA)

Study. It identified water sector related social and environmental issues and

recommended suitable Socio-environmental Management Framework (SEMF) along with

sample mitigation plans. Necessary provision was made under this component to prepare and

implement the mitigation plans in the project wherever required. Assessment of Social and

Environmental issues for all 235 schemes was completed. The social assessment, determined

that there was no resettlement and relocation (R&R) in any of the schemes. Tribal

Development Plans (TDPs) for 41 schemes and gender action plans for all 235 schemes were

also developed.

The environmental assessment identified the requirement for compensatory tree

plantation in 29 schemes, and reclamation of waterlogged and salinity affected areas to about

10,505 ha in 6 irrigation schemes (Ghod, Kukadi, Mula, NLBC, NRBC and Khadakwasala).

In total, 236 drainage schemes (199 Renovation of existing schemes and 37 new schemes)

were completed to successfully address the issues. The drainage and salinity reclamation

works identified were implemented under the sub-component B-2, canal rehabilitation works.

A total 168 schemes were identified for application of IPM and INM. Details of the

successful outcomes are given in the ASS sub-component B5 (see above).

36

Training and capacity building for field engineers for the preparation and application

of SEMF and EMP was done through a series of workshops arranged at 5 key locations

(Nagpur, Pune and Nashik, Baramati and Nanded) in 2012 and 2013.

An important key outcome from the project was that the guideline document for field

engineers for Social and Environmental Management developed, prepared specifically for the

project has now been adapted and circulated to all the offices within WRD. In addition, the

guideline document has been published on the WRD/GoM website and the GoM has issued

directives to adopt and apply these guidelines for all projects managed by WRD.

3. Project Component C: Innovative Pilots

Because of the deletion of one groundwater pilot and the cancellation of all activities

for the irrigated agricultural pilot proposed under the sub-component C2, the PAD original

estimated cost of US$4.80 million was reduced to about US$2.00 million to fund the

remaining three groundwater pilots. All physical activities were completed for these pilots as

detailed below. The final recorded expenditure was US$1.05 million, which was well below

the revised estimate of US2.00 million. The actual contracted cost of the main civil works

investment for the 116 groundwater recharge structures was considerably under estimate

because of the close involvement of each community. Also water meters for two of the three

pilots could not be procured in time.

3.1. Sub-component C1 – Piloting of user centered aquifer level groundwater

management

On the advice of the Groundwater Surveys and Development Agency (GSDA), the

Bank agreed at the MTR to delete the pilot area in Amaravati district because it was coming

under command area of one of the irrigation projects and would be supplied with surface

irrigation water. This subcomponent fully achieved its stated key result indicator, which was

to change groundwater policies and legislation based on the pilot outcomes.

Prior to the project, the Maharashtra Groundwater Act, 1993 provided the legislative

framework for groundwater development and management in the state on watershed basis.

This Act lacked any provision for community participation in sustainable development and

use of groundwater. After the successful implementation and application of the lessons

learned from the innovative pilots, a new legislation, the “Maharashtra Groundwater

(Development and Management) Act 2009” was passed and published on December 3, 2013.

As a direct result of the pilots, this new Act incorporated the key core principles of assessing,

developing and sustainably managing groundwater on an aquifer and not on the old

watershed basis. Based on the successful trials under each pilot, the new Act mandated the

preparation of annual groundwater use plans, coupled with crop plan for the notified areas.

Also, the community participation activities, involving village and aquifer level institutional

arrangements have been incorporated in the new Act.

The Pilots were implemented in 3 districts, Jalna (covering 8 villages, Area 57 km ²),

Beed (covering 10 villages, Area 98 km²) and Satara (covering 24 villages, Area 214 km²).

At output level, the achievements of the project were:

Baseline Hydrological survey completed (2007).

37

All 42 Gram Panchayat Level Committees (GPLCs) and 3 Ground Water Management

Association (GWMAs) had been formed and registered under Society Registration

Act.

Community Based Ground Water Use Plan (CBGWMUP) has been prepared by respective GWMAs / GPLCs.

Based on CBGWMUP, supply and demand side ground water management activities were being implemented in all three pilots.

All 26 piezometers had been completed.

All 116 groundwater recharge structures had been completed.

Elections of GPLCs and GWMAs: completed

GWMA Building: Construction of GWMA buildings for Jalna Satara and Beed has been completed.

Supply of computers to GWMA: Desk Top computers had been made available to

Beed and Satara GWMAs.

Procurement of Water meters for Jalna Pilot

Water meters for the other pilots could not be procured as 2 bidding rounds of procurement remained unsuccessful and it was not possible to invite bids in 3rd

round and complete the procurement within project period.

Community Groundwater Management Action Plans. These plans are prepared

annually and are based on the principle of managing available groundwater in a

sustainable way through demand side interventions such as control of cropping

patterns and use of advanced on-farm irrigation application technology, such as drip

and sprinkler irrigation methods. Water allocations for drinking water and agriculture

are calculated based on seasonably available groundwater resources.

3.2. Subcomponent C2 – Piloting innovative irrigated agriculture.

This activity was designed to improved resource base for problem solving and

technology transfer in the water sector, and was to be measured by Net increase in

agricultural value in the agriculture pilot areas (%). The original design included two pilots: the first entailed the WUA hiring a private entity hired for technical support to promote

commercial farming, and the second model was involved the formation of a joint venture

company between the WUA and a private entity under which farmers will be given a

minimum return and will also share the profits as per pre-agreed terms.

The project had difficulties finalizing MOUs and getting agreements in place. The

Aide Memoire of April 2011 recommended that “in view of little progress being made in the

implementation of this sub-component, and the fact that similar initiatives are now been

undertaken under Maharashtra Agriculture Competitiveness Project, it was agreed to drop

this activity”. There was no expenditure recorded for this actively against an original PAD

estimate of US2.7 million.

4. Project Component D: Project Management

4.1. Subcomponent D1 – Establish PPMU.

To manage project implementation, a Project Preparation and Management Unit,

based within WRD was formed from the existing Project Preparation Unit that prepared the

38

project to appraisal stage. This unit’s primary responsibilities were to: (i) monitor physical

and financial progress and co-ordinate with different departments; (ii) take up evaluation

studies periodically; (iii) prepare the necessary progress reports for the Bank; ensure the

compliance with the Bank’s safe guard policies and covenants; and maintain liaison with

World Bank. Generally, throughout the implementation period, the PPMU carried out the

responsibilities entrusted to it very efficiently.

4.2. Subcomponent D2 – Monitoring and Evaluation

This subcomponent was designed to have a third party Project M&E and supported

appointment and financing of an independent consulting firm. An independent consultant

for M&E was appointed on June 18, 2007. The duration of the consultancy was originally 55

months, ending on January 17, 2012. The original deliverables were an inception report, 10

six monthly Monitoring Reports (MRs) and 3 Evaluation Reports (ERs). The consultancy

period was extended up to March 31, 2014, consistent with the project extension. Scope of

work during extended period included 4 Monitoring Reports, one additional Evaluation

Report, changes in the structure of Monitoring and Evaluation Reports, inclusion of

diagnostic study on Rapid Appraisal Process (RAP) of WUAs, case studies (crop

diversification) as per recommendations of the supervision mission of the World Bank in

June 2012. All required reports and activities were of high quality and delivered by the

consultant in a timely manner.

4.3. Subcomponent D3 - Information, education and communication (IEC) programs

This component supported the communication and dissemination of the GoM’s water

sector reform initiatives and other project-related activities to the broad range of stakeholders

in the water sector as well as creating famer awareness and support for formation and

functioning of WUAs and educating service providers. The project supported technical

assistance, consultancies, publications, media coverage, workshops, seminars, village

animators and exchange visits etc.

A consultant was appointed in January, 2007 to prepare an action plan for all IEC

activities and the plan was subsequently approved. The activities undertaken, included: (i)

printed material, posters information booklets, other IEC materials covering sector reforms;

(ii) distribution of these materials; (iii) training of selected staff in PR and communication

skills; (ii) workshops on writing skills; (iv) the appointment of 2 NGOs in 2 regions

(Jalgaon and Pune) specifically for capacity building of WUAs; (v) Two TV and three radio

advertising campaigns were created and run, the TV campaign broadcast on 8 popular TV

channels in the state. The Principal Secretary (WRM and CAD) was interviewed in a popular

radio program ‘Dilkhulas’ in the state; (vii) 28 study tours for 1,603 WUA members from

Nagpur and Sangli were completed. The WUAs visited and interacted with the progressive

WUAs like those on the Waghad medium irrigation scheme. In addition, information

regarding WUAs as well as the MWSIP was presented at a large Agro exhibition organized at

Nagpur. A small booklet, useful for office bearers of WUA, had been prepared by WALMI.

This was for distribution to all WUAs. IEC activities were included as an integral part of the

groundwater pilots, that component, which proved very effective.

39

Annex 3. Economic and Financial Analysis

This Annex is presented in three parts as follows: (i) The analytical soundness of the

F & E analysis at appraisal; (ii) The value for money (of project investment) by comparing ex

ante economic cost/benefit and fiscal benefits with ex post; and (iii) The fiscal impacts of the

project related to cost recovery.

1. Assessment of Analytical Soundness Appraisal

At appraisal, there were notable computational errors in the financial and economic

models and analysis (at scheme level) which contributed to an over-estimate of rates of return

(F/E IRRs). Table 1, indicates the error-difference in the appraisal and corrected estimates for

ERRs for representative scheme level, whilst Table 2 shows the corrected estimates at

individual scheme level. Whilst the economic rates of return still remain reasonable after

correction at representative scheme level, the overall economic merits are less pronounced

and some individual major and medium schemes would have been uneconomic (Kai and

Natuwadi) and Koradi and Krishna Canal may have been at best marginal and sensitive to

changes in switching values. The computational errors were not systemic and therefore did

not affect the calculation of the overall ERR and NPV for the project (including all project

cost).

Table 1: Original and Corrected Estimate of ERRs at Representative Scheme Level

Scheme ERR

Original in PAD Corrected at ICR % Difference

Major 32.4% 27.3% -5.1%

Medium 36.0% 25.0% -11.0%

Minor 30.2% 29.8% -0.4%

All Schemes 32.6% 27.1% -5.5%

Note: Based on original models used at PAD corrected for computational errors.

Table 2: Project Economic Analysis: Summary of Main Results

Scheme ERR

(%)

Corrected

at (ICR)

Variation Scheme ERR

(%)

Corrected at

(ICRR)

Variation

All Schemes 32.6% 27.1% -5.5%

Major 32.4% 27.3% -5.1% Minor 30.2% 29.8% -0.4%

Hatnur 37.1% 32.2% -4.9% Dawargaon 30.7% 30.7% -

Kai 27.5% 11.1% -16.4 Galan 17.1% 17.1% -

Kukadi 43.9% 43.2% 0.7% Maniira 32.8% 31.1% -1.7%

Pench 26.9% 21.4% -5.5% Nimgul 40.7% 40.7% -

Medium 36.2% 25.0% -11.2 Pangadi 21.9% 21.8% -0.1%

Koradi 27.7% 19.1% -8.6% Pimoarala 38.6% 38.4% -0.2%

Krishna Canal 31.6% 19.2% -12.4% Raitale 41.8% 40.2% -1.6%

Natuwadi 22.1% 6.4% -15.7% Shekdari 31.9% 29.4% -2.5%

Panzara 55.5% 43.8% -11.7% Shirwal 18.1% 18.0% -0.1% Note: Based on original models used at appraisal (PAD), corrected for computational errors.

40

2. Re-estimated Cost Benefits

The ex post estimates are based on:

Corrected and updated financial and economic models used at appraisal;

Assumptions used at appraisal for cost allocation of institutional and management

costs;

Actual project investment for a representative sample of 17 major, medium and minor schemes for which actual project costs were available;

With and without project data and farm-models collected by the M&E consultants for the impact analysis.

The ex-ante/ex-post analysis is presented in Table 3.

Table 3: Ex Ante/Post Economic Analysis

Appraisal ICR % of

Appraisal

Assessment

Project cost Rs Million

Nominal

18306.29 18585.24 102% Nominal prices

Constant 2004 prices

The total project cost per ha of

CCA at Appraisal was projected

at Rs 28,381/ha, compared to

Rs 30,567/ha at project close.3

However, in real terms 2004

prices the investment cost was Rs

27,180/Ha.

Gross irrigated area increased

from 100,000 ha to 129,305 at

ICR

Yields of paddy declined during

the project period by some 8%

compared to BL. The largest

increases came from horticulture

production especially grapes

Project Cost Rs Million

Constant 2004

18306.29

16525.99

90%

CCA Ha 645,000 608,000 94%

Irrigated area 22% > BL 46%>BL 146%

Yield 5-20% > BL - 8 to >300%

- Cereals Tons 330,000 222,000 67%

- Oilseeds 37,000 101,000 273%

- Fruits/vegetables 99,650 613,000 619%

- Sugarcane 200,600 3.7 million 1850%

- Cotton 850 58,500 6882%

Aggregate Income

Billion Rs (2004)

3.1 10.4

335%

Farm income 49% > BL 96%>BL 96%

Beneficiaries HH 243,610

Reduced pumping cost

Billion Rs/year

0.08

Reduced staff cost Not defined

ERR

Major 27.3% 26.2% 96%

Medium 25.0% 18.0% 72%

Minor 29.8% 19.0% 63.8%

Project 27.4% 20.8% 76%

Public Exp/Revenue

Market fees (over

project) Million

113

Water revenue 1 million

Water charges increase 15% year

O & M expenditure 10% year Collection fees Billion Rs 2.5

1Corrected ERRs from 17 representative schemes for which detailed investment figures were available.

3 Nominal prices total project cost (estimated at appraisal and actual at project close)/projected and actual CCA.

41

3. Cost Benefit and Rates of Return Analysis

Whilst rate of return analysis with respect to capital (ERR or NPV analysis) is

conventionally used in Bank projects as a measure of efficiency, an opportunity was missed

at appraisal to assess fuller returns (including economic) to water which, ex ante was clearly

identified as the key constraint in agricultural and industrial production and urgently needed

regulatory (including price) instruments for improved allocative efficiency. Further analysis

from an economic efficiency standpoint could, therefore, have added significantly in

underpinning the principles of allocative efficiency outlined in the PDO and provided a

more thorough basis for cost and price determination. Although the PAD signaled an

intention to examine at least rates of return to water, and cites improved water productivity

as an important driver in F & E analysis, no meaningful indicators or analysis were included

under the project and undertaken ex post by the project M&E consultants.

4. Fiscal Impacts

The cost of water for irrigation, drinking, and industry is now set by MWRRA after

due consultation and reflects the full cost. Collection rates are improving as the level of

service to farmers has improved and WUOs have much more input into decision making

under this project. The six pilot schemes with volumetric charging and bulk supply of water

were very successful and volumetric pricing and bulk supply of water was included in 236

schemes covering 1,341 WUAs. These are very encouraging trends, especially as

Maharashtra is already a leader in water sector reforms in India and GoM is committed to

implementing these reforms as on-going policy beyond the project.

42

Annex 4. Bank Lending and Implementation Support/Supervision Processes

(a) Task Team members

Names Title Unit Responsibility/

Specialty

Lending

Radhey Shyam Pathak Task Team Leader SASDA Senior Water Resources

Specialist

Priya Goel Senior Financial Specialist SARFM Financial Management

Manmohan Singh Bajaj Senior Procurement Specialist SASPR Procurement

Dhimant Jayendraray Baxi Sr. Procurement Specialist SASPR Procurement

Mohammed Hasan Senior Social Development

Specialist SASDS

Social

Manivannan Pathy Sr. Agricultural Specialist GAGDR Agriculture

Sanjay Pahuja Sr. Agricultural Specialist GAGDR Agriculture

Paul Singh Sidhu Senior Agriculture Specialist SASDA Agriculture

Tanuj Mathur Senior Financial Management

Specialist

GGODR

Financial Management

Joop Stoutjesdijk Lead Irrigation Engineer GWADR Irrigation Engineer

Shashank Ojha Senior Management Information

Specialist CTIDR

Genevive Connors Water Resource Specialist GWADR Water Resources Specialist

John Briscoe Water Resource Specialist Water Resources Specialist

Malhotra, R. K. Consultant SASDA Construction Engineer

Naresh Ramachandra

Tankhiwale Consultant SASDA Ground Water Specialist

Nibir Kumar

Bandyopadhyay Consultant SASDC

Farmer Organizations and

Turnover Specialist

Nirmal Raj Bhandari Consultant SASDA Construction/Irrigation

Management Specialist

M. Balasubramanian Consultant SASDA Agriculture Specialist

Manuel Contijoch Escontria

Jacqueline Julian Operations Analyst GAGDR

Bilal H. Rahill Environmental and Natural

Resource

Mona Sur Agricultural Economist

Dina Umali-Deininger Lead Economist

Irajen Appasamy Education Specialist

John Ivor Beazley Sr. Public Sector Specialist

Dhirendra Kumar Procurement Specialist

Mohan Nagarajan Sr. Economist

Deborah Lee Ricks Program Assistant SASRD

Sarita Rana Program Assistant SASRD

Prachi Seth Team Assistant SASDA

Jiro Tominaga Sr. Evaluation Officer

43

Maneesha Gupta

Asha Bhagat Consultant SARFM Financial Management

Piya Baptista Consultant

Severin L. Kodderitzsch Sr. Agricultural Specialist

Leena Malhotra Program Assistant SACIN Program Assistant

Singh, Mridula Senior Social Development

Specialist GURDR

Social

Supervision/ICR

Jun Matsumoto Task Team Leader GWADR

Senior Water Resources


R.S. Pathak Task Team Leader SASDA

Senior Water Resources

Specialist

Manmohan Singh Bajaj Senior Procurement Specialist SARPS Procurement

Atin Kumar Rastogi Procurement Specialist GGODR Procurement

Tanuj Mathur Senior Financial Management

Specialist

GGODR


Ramola Bhuyan Senior Financial Management

Specialist

SARFM


Pyush Dogra Senior Environmental Specialist GENDR

Environment

Priya Goel Senior Financial Management

Specialist

SARFM


Abhishek Pruti Consultant

SARFM


Mohammed Hasan Senior Social Development

Specialist SASDS

Social

Mridula Singh Senior Social Development

Specialist GURDR

Social

Sanjay Pahuja Lead Water Resources Specialist

GWADR

Shashank Ojha Senior e-Government Specialist CTIDR

Paul Singh Sidhu FAO-Consultant SASDA Senior Agricultural

Specialist

Giovanni Munoz FAO-Consultant SASDA WUA Specialist

Maria Donat FAO-Consultant SASDA M&E Consultant

Malhotra, R. K. Consultant SASDA Construction Engineer

Naresh Ramachandra

Tankhiwale Consultant SASDA Ground Water Specialist

Nibir Kumar

Bandyopadhyay Consultant SASDC

Farmer Organizations and

Turnover Specialist

Nirmal Raj Bhandari Consultant SASDA Construction/Irrigation


M. Balasubramanian Consultant SASDA Agriculture Specialist

S.K. Gupta Consultant SASDA MIS Consultant

Jai Mansukhani Program Assistant SACIN Program Assistant

Leena Malhotra Program Assistant SACIN Program Assistant

44

(b) Staff Time and Cost

Stage of Project Cycle

Staff Time and Cost (Bank Budget Only)

No. of staff weeks USD Thousands (including

travel and consultant costs)

Lending

FY04 44.05 164.75

FY05 60.25 187.06

Total: 104.30 351.81

Supervision/ICR

FY06 38.96 110.66

FY07 24.16 103.26

FY08 21.45 123.50

FY09 29.43 127.42

FY10 22.60 122.93

FY11 20.80 105.16

FY12 18.43 83.10

FY13 23.71 117.72

FY14 20.42 130.10

Total: 219.96 1023.85

45

Annex 5. Beneficiary Survey Results

Not Applicable

46

Annex 6. Stakeholder Workshop Report and Results

Not Applicable

47

Annex 7. Summary of Borrower's ICRR

The Borrower prepared a comprehensive and useful ICR report that generally

followed the Bank’s recommended format. The full report is in the project files. The report

was prepared in nine sections, with many subsections providing a lot of detail on project

component outputs. In addition, there were nine annexures that provided information on

performance indicators, costs and expenditure and many other details. A lot of the data was

provided from the final consultant’s comprehensive and detailed M&E report, which is also

in the project files.

The table of contents and annexures of the borrower’s report was as follows:

Section 1: Introduction

Section 2: Project Development Objectives

Section 3: Project Components and Sub-components

Section 4: Project Implementation Status

Section 5: Assessment of Project objectives, Design, Implementation and Operational

Experience

Section 6: Assessment of Outcomes of the Project

Section 7: Assessment of Borrower’s own Performance and Lessons Learned

Section 8: Assessment of Performance of the Bank

Section 9: Sustainability of Results

Annexure 1: Status of completion of canal rehabilitation/modernization works in all

235 irrigation schemes

Annexure 2: Status of completion of dam safety works

Annexure 3: Details of WUA formation, elections for second term, Handing over of

distribution system to WUAs and Water Entitlements issued to WUAs

Annexure 4: Details of training programs completed by WALMI

Annexure 5: Performance Indicators

Annexure 6: Increases in Areas Irrigated

Annexure 7: Component-wise expenditure and reasons for variation

Annexure 8: Status of roll out of ICIS

Annexure 9: Map showing locations of irrigation schemes

48

The key experiences noted by the borrower were: (i) The achievement of the creation

and well-functioning nature of the MWRRA was pivotal in reforming the water sector, not

only from the State perspective, but also because of the precedent it set and the influence it is

having on shaping national water policy and actions in other Indian states; (ii) the enthusiasm

and acceptance by the WRD staff of the ICIS (e-Javseva); (iii) The restructuring of the WRD

that has resulted in the separation of development from management, which in turn has led to

a culture change within the WRD, facilitated by the project PIM activities; (iv) the

combined impact of improved irrigation services, the PIM and agricultural support services

activities on farmers and the increase in water use efficiency and agricultural production; (v)

the huge impact on changing the way the State approached sustainable groundwater

management, because of the highly satisfactory outcome of piloting the community/user

centered groundwater management.

Some of the key lessons learned from the borrower’s perspective are: (i) Participation

by beneficiaries from the earliest stage possible is essential for success and creates a sense of

ownership right from the beginning of a project; (ii) to build the capacity of newly

established institutions like WUAS, it is essential to properly assess training needs,

sequencing and the resources necessary, including costs; (iii) early capacity building of

implementing agencies, especially with respect to procedures for procurement, project

management, contract management, communication skills, and FM is very necessary to

ensure smooth implementation of the Project right from the start; (iv) better co-ordination,

cooperation and scheduling/sequencing of interrelated project activities where multiple

implementing agencies are involved is important.

49

Annex 8. Comments of Co-financiers and Other Partners/Stakeholders

Not Applicable

50

Annex 9. List of Supporting Documents

1. Project Appraisal Document.

2. Loan Agreement.

3. Project Agreement.

4. Project Restructuring Papers.

5. Mission Aide Memoires and Management Letters.

6. Project Status Reports and Implementation Status Reports.

7. Borrower’s Final ICRR Report dated June 2014.

8. Final Consultant’s Evaluation Report date March 2014.

9. Maharashtra State Water Policy.

10. Maharashtra Water Resources Regulatory Authority established via Maharashtra Act No.

XVIII of 2005.

11. Management of Irrigation Systems by Famers’ – Maharashtra Act No. XXIII of 2005.

12. Maharashtra Groundwater (Development and Management) Act - Maharashtra Act No.

XXVI of 2013.

13. Approach Paper on Criteria for Determination of Bulk Water Tariff 2013-16 by MWRRA

March 2012.

14. Study on Alternative Cost Allocation Matrix for Bulk Water Tariff – prepared for

MWRRA by Consultants, December 2013.

15. Criteria for Determination of Bulk Water Tariff in Maharashtra 2013 -16 MWRRA

March 2014.

16. Evaluation of Determination, Enforcement Regulation and Monitoring of Entitlement in

Pilot Projects for Kharif, Rabi and Hot Weather Seasons 2008/09 – 2011/12 - MWRRA

publication April 2014.

17. Restructuring of Water Resources Department (WRD) and it organizations. Government

of Maharashtra Government Resolution No. WRD Restructuring /2009/(16/09) WR (Est.)

18. Operational Manual of Social and Environmental Management – A Guideline Document

for Field Engineers for Social and Environmental Mainstreaming – prepared by the

MWSIP PPMU.

19. Water and Land Management Institute (WALMI) Aurangabad, Objectives, Activities and

Achievements.

51

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