India - Madhya Pradesh Medium Irrigation Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 9251 PROJECT COMPLETION REPORT INDIA MADHYA PRADESH MEDIUM IRRIGATION PROJECT (CREDIT 1108-IN) DECEMBER 28, 1990 Agriculture Operations Division India Department Asia Region This document has a restricted dis'-ihution and may be used by recipients only in the perfonnance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Currency Equivalent Name of Currency: Rupee, Rupees (Rp., Rps.) Rate of Exchange: Appraisal (September 1980) Rs. 8.40 Intervening Years 1981-87 (average) Rs. 11.07 Completion Year (1988) Rs. 14.70 Fincal Year of Borrower GOO and GOMP: April 1 - March 31 Glossary AD - Agriculture Department BODHI - Central Design, Hydrology, Investigation Wing, Irrigation Department CAD - Command Area Development CCA - Culturab.!_ Command Area CWC - Central Water Commission DF - Demonstration Farms DRP - Dam Review Panel ERR - Economic Rate of Return GOI - Government of India GOMP - Government of Madhya Pradesh IAS - Indian Administrative Services ID - Irrigation Department IDA - International Development Association IFAD - International Fund for Agricultural Development ISI - Indian Standards Institute MIP - Medium Irrigation Projects MP - Madhya Pradesh OFD - On Farm Development PPM - Project Preparation and Monitoring Cell QC - Quality Control R&R - Resettlement and Rehabilitation RWS - Rotational Water Supply System SAR - Staff Appraisal Report SDV - Supplementary Data Volume WMA - Water Management Areas  FOR OMCIAL UM ONLY THE WORLD SANK Washington. D.C 20433 U.S.A. Office of Oureclot-Gemhal Opeatenn Ivakiwtb December 28, 1990 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on India Madhya Pradesh Medium Irritation Prolect (Credit 1108-IN) Attached, for information, is a copy of a report entitled "Project Completion Report on India: Madhya Pradesh Medium Irrigation Project (Credit 1108-IN)" prepared by the Asia Regional Office with Part II contributed by the Borrower. No audit of this project has been made by the Operations Evaluation Department at this time. Attachment This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  FOR OMCIAL USE ONLY PROJECT COMPLETION REPORT INDIA MADHYA PRADESH MEDIUM IRRIGATION PROJECT (CREDIT 1108-IN) Table of Contents PREFACE . . . . . . . . ........... . . . *. .*. . . EVALUATION SUMMARY.. . . . . .i PART I PROJECT REVIEW FROM BANK'S PERSPECTIVE . . . . . . . . . . . .1 Project Identity . . . . . . . . . . . . . . . . . . . . . . . . 1 Background . . . ............. . . . . . . 1 Project Objectives and Description . . . . . . . . . . . . . . . 2 Project Design and Organization . . . . . ........... .2 Project Implementation . . . . . . . . . . . . . . . . . . . . . 4 Project Results . . . . . . . . . . . . . . . . . . . . . . . . 7 Project Sustainability . . . . . . . . . . . . . . . . . . . . . 7 Bank Performance .................. . . . . .. 8 Borrower Performance ........... . . . . . . . . ... 8 Project Relationship ..... .. . .. 8 Consultancy and Contracting Services . . . . . . . . . . . . . . 9 Project Documentation and Data . . . . . . . . . . . 9 PART II PROJECT REVIEW FROM BORROWER'S PERSPECTIVE . . . . . . . . . 10 PART III STATISTICAL INFORMATION . .......... . . . . . . . 12 Related Bank Loans and Credits (Table 1) . . . . . . . . . . . . 12 Project Timetable (Table 2) . . . .......... .. .... . 15 Schedule of Disbursements (Table 3) . . . . . . . . . . . . . . 16 Project Implementation (Table 4) . . . . . . . . . . . . . . . . 17 Project Cost (Table 5A) . . . . . . . . . . . . . . . . . . . . 21 Project Financing (Table 5B) . . . .......... . . .... 23 Direct Benefits (Table 6A) ........ . . ... ...... 24 Economic Impact (Table 6B) ........ . .......... 25 Studies (Table 6C).. . . . .. . .... 26 Status of Covenants (Table 7) .. . . . . . . . . . . . . . . . 28 Staff Inputs (Table 8A) ............ ......... 32 Missions (Table 8B) .......... .... ... .... 33 Estimated Cost of MIPs at Full Development (Table 9) . . . . . . 36 Estimated Completion Dates (Table 10) . . . . . . . . . . . . 37 COMMENTS OF THE BORROWER ON PARTS I AND III . . . . . . . . . . . . . 38 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  i PROJECT COMPLETION REPORT INDIA MADHYA PRADESH MEDIUM IRRIGATION PROJECT (CREDIT 1108-IN) PREFACE This is the Project Completion Report (PCR) for the Madhya Pradesh Medium Irrigation Project in India for which Credit 1108-IN in the amount of SDRs 112.6 million was approved on March 17, 1981. The credit was closed on March 31, 1988, one year behind schedule. The last disbursement was made on November 22, 1988 and the undisbursed balance of SDRs 5.979 million was cancelled. The project was co-financed by an IFAD loan (IFAD Loan No. 81) for SDRs 21.9 million which was fully disbursed on March 31, 1988, one year behind schedule. The Preface, Evaluation Summary, Parts I and III of the PCR were prepared by the Agriculture Operations Division of the Asia Regional Office. The Borrower prepared Part II and contributed comments on Parts I and III. IFAD comments on the PCR were invited on February 12, 1990, but none was received. Preparation of this PCR was started during the Bank's project completion mission in May 1988, and is based, inter alia, on the Staff Appraisal Report, the Development Credit Agreement and Project Agreement, supervision reports, correspondence between the Bank and the Borrower, and internal Bank memoranda.  ii INDIA MADHYA PRADESH MEDIUM IRRIGATION PROJECT (Credit 1108-IN) PROJECT COMPLETION REPORT EVALUATION SUMMARY Objectives 1. The project's objectives were to increase irrigation potential in the cultivable command area, improve water management practices through field trials and demonstrations, improve yield/flood estimates for medium irrigation projects (MIPs), and establish a central sediment studies laboratory (para. 4). Implementation Experience 2. Central Water Commission's (CWC) appraisal of MIPs was methodical but not always up to Bank's standards. CWC's method of determining projects' economic viability were not consistent with that of the Bank's (para. 13). Appraisal by CWC of the project consultants were inadequate; (para. 17). While construction was weak, quality control by the Irrigation Department (ID) for larger MIPs was satisfactory, but deficient for the more remote and smaller ones. The Irrigation Department undcrutilized the services of the Dam Review Panel (DRP) and DRP's compliance reporting was weak. Close Bank supervision brought about significant improvements in these areas (para 19). Resettlement and Rehabilitation (R&R) of oustees was unsatisfactory and land acquisition for canal works was delayed (para. 20). Implementation problems could have been minimized by a strong project management (para. 21). Results 3. The project did not achieve its physical target of creating irrigation potential (para 23). The installation of rainfall and river flow recording gauges had achieved its revised targets (para. 24). The estimated economic rate of return fell from 18Z at appraisal to 5.1Z at completion (para. 25) due to cost escalation, increase in land prices, and delays. Under present criteria, MIPs are not viable development options, even though they may serve social and poverty reduction interests (para. 26). Sustainability 4. Updated designs and improved construction and quality control standards should be able to sustain the MIPs over their accepted life expectancy. However, close attention should be paid to efficient water management, maintenance and improved agricultural practices (para. 27).  iii Findings and Lessons Learned 5. The main lessons learned are: (i) More preparation work in establishing institutional capability, responsibility, coordination and accountability, could have avoided project delays (para 12a and b); (ii) Dam Safety requirements should have been more rigorous and DRP review panel staff more independent (para. 12d); (iii) R&R administration and management should have been staffed by a more senior official (para. 12e). (iv) There should have been a more careful selection process for project consultants (para 12f).  INDIA MADHYA PRADESH MEDIUM IRRIGATION PROJECT (Credit 1108-IN) PROJECT COMPLETION REPORT PART I PROJECT REIVEW FROM BANK'S PERSPECTIVE Project Identity Name: Madhya Pradesh Medium Irrigation Project Credit Number: 1108-IN RVP Unit: Asia Region Country: India Sector: Agriculture Subsector: Irrigation Background 1. Madhya Pradesh is the largest State in India geographically, and in 1981 had a population of 52 M, giving it a much lower population density than most other Indian States. The State is rich in minerals and forests, and agriculture contributed some 552 of State Domestic Product. MP has a high hydro-electric generation capacity, and is one of the few states in India without power constraints. Its population was about 84? rural, with 20? comprising tribals and backward classes. In 1979, some 66Z of the population was below the poverty line. 2. In order to increase agricultural production and to make it less dependent on the variable rainfall, the State has since Independence given the highest priority to irrigation development. In 1980, only 2.2 M ha had been provided with irrigation facilities out of an estimated potential of about 12.9 H ha. Medium irrigation projects play a particularly important role in areas of limited surface water resources, in that they exploit small rivers in backward areas. 3. In the 1970's, GOI developed the concept of Command Area Development (CAD) in response to the slow gestation rate of newly developed irLigation projects, and low production generally. Authorities were created, which were intended to focus on the lower echelons of irrigation systems to carry out on farm development (OFD), to organize and train farmers, and to facilitate supplies of inputs. In MP, a separate CAD (Ayacut) Department exists, whereas certain other States have evolved a structure where the CAD element is the operating wing of the Irrigation Department (ID).  2 Proiect Objectives and Description 4. The principal project objectives were: a) To finance a five year time slice of MIP development over between 25 and 30 MIP's, and create an irrigation potential of about 107,000 ha CCA; b) to establish four water management pilot areas of about 200 ha each in representative agro-climatic zones to demonstrate improved water management practices; c) to establish four demonstration farms of about 40 ha each in representative agro-climatic zones in order to conduct trials and demonstrations of on farm irrigation and husbandry practices; and d) to instal river and rain gauging stations on MIP's in representative hydro- meteorological zones in MP to assist in improved yield/flood estimations for MIP's, and to establish a central sediment studies laboratory. 5. Project physical indicators are given in Table 4, and project cost estimates in Table 5A, Part III. Both pertain to time slice targets only. From these, it is noted that at appraisal, the project cost estimate was Rs. 1950 M (USS 232.1 M). Only three MIP's were formally appraised by the Bank, based on which the procedures and criteria for selection, appraisal by CWC, and approval by the Bank for the remaining MIP's to be included were prescribed. A number of studies was defined under the project, which are listed and described in Table 6D, Part III. The financing plan for the project, indicating both IDA Credit and IFAD Loan, is shown in Table SB, Part III. Project Design and Organization 6. The project was very thoroughly prepared by the Bank, in that many Bank staff and consultants visited MP prior to appraisal to carry out in depth studies and assessments of GOMP's preparation activities. The procedures for MIP selection and CWC appraisal of MIP's were clearly prescribed, which included the requirement that the Bank should take part in appraisal should the MIP exceed 10,000 ha CCA. Design procedures, including investigations (engineering, soil, socio-economic etc.), irrigation systems, and dams and their safety were laid down. Operation and maintenance procedures were indicated. The appraisal was thorough, but the SAR was excessively brief and lacking in technical detail in the absence of a technical Supplementary Data Volume (SDV). Throughout preparation and appraisal, GOMP gave the fullest cooperation and support. 7. The project was to be executed entirely by the Irrigation Department of MP. No specific manager was appointed to control and direct it, and all selection, preparation, construction and operation/maintenance was under the chief engineer of the zone in which the HIP was located. All designs except those for dams and major structures were the responsibility of the respective chief engineers. The only central unit was the creation of a Project Preparation and Monitoring (PPM) cell which was to scrutinise all preparation documents before being passed for MIP appraisal by CWC. The dams and major structures were to be designed by BODHI (the central design, hydrology, and investigations wing of the ID). The Agriculture  3 Department (AD) was allotted only a minor role in project preparation, the establishment of demonstration farms, and in provision of extensv'n services under the normal state system. 8. Dam safety requirements and specifications were particularly inadequately defined. Specifications for spillway design in Annex 1 are contrary to those laid down by the Indian Standards I.-titute (ISI), in that the SAR suggests that empirical methods may be used instead of accepted analytical methods based on storm estimates. The terms of reference for the Dam Review ?anel (DRP) given in Annex 7 were however adequate. 9. A further serious weakness in the SAR was the requirements for planning and executing R & R activities. Only one paragraph was included in the SAR on the subject. However, at Credit negotiations, GOMP assured the Bank that legislation was to be introduced for application to project related oustees (displaced persons), which the Bank accepted in good faith. 10. As the project micronet systems (below 40 ha) were to be designed and installed by ID instead of Ayacut Department, the Bank considered that ID did not have adequate trained and experienced staff to design such a large command area (107,000 ha) during the project period. It therefore specified that GOMP should retain private consulting firms to assist ID. It was not appreciated that irrigation consultancy was (and still is) very weak in India, and the serious delays experienced by the project in micronet development are largely due to the failure of the majority of these consultants. 11. The project was not innovative in design with resp ; to dam and canal system, and was based on standard engineering practices. However, below the 40 ha level, the structured layout, area proportional supply controlled irrigation system was specified to improve equity and reliability. The descriptions and specifications of each project component given in the SAR are inadequate in general to be used by project engineers as detailed design criteria, but they are nevertheless useful guidelines and should have been adequate guidance with supplemental information. The scope of the project is however well defined, as are the various procedures. 12. In retrospect, perceived weaknesses in project formulation and organisation are: a) The project should have been placed under the direct responsibility of a Special Chief Engineer, answerable only to the Engineer in Chief, ID, rather than being placed under zonal chief engineers. This would have ensured consistency of designs and procedures. b) Under such Special Chief Engineer should have been placed the following units: - PPM cell - R & R Planning and Monitoring cell - Quality Control division - Hydrology and Dam Safety division - Canal System Design division - Microsystem and OFD Design division  4 These specialist units would have scrutinised and moderated plans and designs carried out by the field circlea to ensure correctness and consistency. c) The project should have been located in specified districts instead of being scattered over the whole State. This would have significantly improved ID management and st .ervision, and would have reduced Bank supervision inputs. d) Dam Safety requirements should have been considerably more rigorous, with specified minimum periods between site inspections, critical stage inspections, design scrutiny, and ID compliance. The zonal chief engineers should have had no position of influence on the DRP recommendations. e) R & R should have been placed under State administration and management, with a senior IAS officer of Secretary status with overall responsibility channelling implementation of relocation, compensation etc. through the District Collectors. The R & R cell proposed in (b) above would have acted as a design and monitoring unit only. f) More enquiry should have been made into the competence and capacity of the irrigation consulting industry in India before making the development of irrigation potential dependent upon it.. Project Impleme-.--ation 13. The appraisal process by CWC was methodical, but not always to the standards required by the Bank. In many cases, the Bank required additional surveys, data and analysis. A major point of dispute was the practice of CWC to use benefit:cost ratio format of economic viability, whereas the Bank required economic rate of return format. In certain cases, the Bank could not approve the MIP's following reworking of the economic analysis. In R & R aspects, the appraisals were particularly weak. 14. It is recalled that projects in excess of 10,000 ha were to be also appraised by the Bank. This by GOI norms makes them major projects. Several of these we-e submitted to the Bank, but only Kolar MIP (45,07 ha) was accepted into the pro -amme. The remainder were all 10,000 ha or less. Reference to Table 4, Part III gives the command area for each MIP. 15. Only three MIP's were appraised by the Bank at project appraisal, namely Dejla Dewada, Chhirpani and Gomukh. Following effectiveness, a further nine MIP's were submitted by CWC, and were eventually approved, namely Kolar, Hatiyari, Chandora, Bundala, Kaliasote, Choral, Tillar, Matiamoti and Gunghutta. These were reviewed by an early Bank supervision mission in March 1982. After much correspondence and Bank consideration, a further four, namely Budhna, Kanhargaon, Dudhi and Barnai were accepted into the pro6ramme up to August 1984. Thereafter no additional MIP's above the sixteen were accepted.  5 16. Both GOI and GOMP pressed the Bank to accept a further six HIP's. This the Bank declined to do, for the following reasons: a) The area commanded by the approved 16 HIP's amounted to 127.597 ha, compared w.lth a target of 107,000 ha under the project. b) The R & R plans for the further six were found to be inadequate in spite of numerous attempts by GOMP to improve them. It should be noted that the Bank itself, following increasing awareness of the inadequacies of R & R in India generally, was applying progressively more stringent criteria. c) An analysis of costs in 1985 by the Bank is not shown in this report produced specific costs far in excess of those derived at appraisal. The latter was estimated to be about Rs. 16,600/ha on average. but revised analysis indicated more than double this amount. Thus the adoption of the further six HIP's would have resulted, had the original prograrme of development been followed, in a large number of partly developed HIP's with inadequate funds to provide sufficient disnet, micronet and OFD works completion to create the required productive potential. 17. Project designs were variable. In general, as is customary in India, dam designs were appropriate and competent, with two exceptions: - yield hydrology was very tenuous, affecting the dam sizing (really an economic indicator); and - flood hydrology, in that spillway design and capacity were based largely on the empirical Dicken's Formula with a coefficient considered adequate to represent a 1000 year flood. Main canal and disnet designs were also adequate, but in cases their structures were incorrectly sited and dev'gned hydraulically. The micronet/OFD designs carried out by consultants were with Xwo exceptions of very poor standard, demonstrating a lack of understanding of the principles of warabundi/RWS and structured, ungated, proportional layouts. Subsequently, ID took over the survey and design and to assist it, the Bank provided, under technical assistance, its consultants to train and advise ID staff. As all designs except dams were by zonal chief engineers' staff, these lacked consistency, and this has been referred to in para 10 above. 18. Construction standards were also variable. Again, the dams and large structures were in general acceptable, with certain notable exceptions positively reported in Bank supervision reports. These instances were due mainly to weak site supervision. Main canal and disnet construction quality was moderate, again with exceptions. What little micronet/OFD construction in progress during the project period was in general of poor quality and durability. Quality control by ID was again variable between HIP's. On the larger HIP's, QC staff and laboratories were satisfactory. On the more remote, smaller HIP's, they were seriotsly deficient. The Bank throughout the project period kept quality under close review, and through its reports and ID cooperation standards improved significantly.  6 19. Dam safety was a major concern throughout the project period. Although the DRP was constituted by competent experts in their disciplines, ID seriously under-utilized their services. Designs were not generally submitted for review prior to finalisation, and site visits were at unacceptably long intervals, and did not always coincide with critical construction stages such as foundation exposure. A major weakness in DRP reporting was the inclusion of the zonal chief engineers as conveners, which it is suspected reduced the incisiveness of panel observations and criticism. Compliance reports by ID field circles were invariably very delayed and not always appropriate. Following consistent Bank representations, a marked improvement was brought about. In particular, ID carried out a complete review of flood hydrology using modern analytical techniques at the insistence of the Bank as a condition for Credit extension. Emanating from this, the DRP made recommendations for improved safety measures where these were indicated to the satisfaction of the Bank. 20. By far the most unsatisfactory aspect of the project implementation was R & R of dam oustees. This may be considered to be due to the following: - very limited reference in the SAR; - the absence of a senior IAS official at state level to be responsible; - the lack of involvement by district administrations; - the lack of a project R & R cell; - the remote nature of MIP sites; - the lack of clear State policy on R&R; - the inability to proceed according to the MP Resettlement Act 1985 as rules to apply the Act had never been promulgated. The last point is of particular importance, as GOMP had assured the Bank at Credit negotiations that the Act was being introduced and would be the vehicle for R & R activities under the project. In the event, it was never applied. Bank supervision of R & R were nany and intense, as Table 8B indicates in Part III. In spite of repeated representations to GOMP, especially with respect to the physical relocation of oustees, little perceptible improvement resulted. As a consequence, the Bank declined to grant a second Credit extension beyond March 31, 1988. 21. Mention should be made of the very tardy processing of land acquisition for canal works by Revenue Department staff. In many cases, payments were made several years after the lands had been released, causing hardship to the farmers. In addition, on many HIP's forest land (whether it carried trees or not) was not released by Ministry of Forests and Environment, in spite of frequent GOMP requests. These significantly affected the progress of main canal, disnet, and microsystem installation. In retrospect, most of the shortcomings in project implementation could have been minimized by a strong project specific management, working within the additiornal organisational/technical parameters referred to in para 15 above. 22. The schedule of disbursements under the Credit is shown in Table 3, Part III. This demonstrates the slow project mobilization. Status of covenants is shown in Table 7, Part III. In general, with the exceptions of R & R, dam safety, and quality of construction. the covenants were in full or satisfactory partial compliance. A very positive aspect of the project was the staffing and operation of the PPM cell. Its production of complete and high quality periodic progress reports was exemplary.  7 Project Results 23. The project did not achieve its targets with respect to creation of irrigation potential, in that only about 3200 ha had been installed at the revised closure date, compared with a target of 107,000 ha at appraisal. Reference to Table 10, Part III indicates that only one MIP will be fully operational by mid 1990, and that most will not achieve this until mid 1993. Reference to Table 4, Part III shows the stage of completion of MIP components vis-a-vis appraisal targets. From this, it is noted that out of 16 MIP's, 11 dams are more than 80Z completed, which is most satisfactory. The achievements in canal and OFD construction by contrast are seriously in arrears. 24. The four Water Management Areas (WMA) and the four Demonstration Farmis (DF) are completed or nearing completion, but no results have been published to date on trials carried out on them. The installation of rainfall and river flow recording gauges has substantially achieved the revised targets. Other aspects of hydro- meteorology have been absorbed under MP Major Irrigation Project Credit 1177-IN. These and other studies are described in Table 6D, Part III. 25. Project direct benefits are indicated in Table 6A, Part III. Due to serious delays in project implementation and modification to components since appraised, the analysis has been based on full development potential of 172,617 ha instead of the time-slice project target of 107,000 ha. Thus the two situations are not fully comparable. However, if proportional correction is applied, it is see n that for every parameter the revised "with project" benefits much exceed appraised estimates. Economic rates of return estimated at appraised. at mid-term review in 1987, and in September 1989 are given in Table 6B, Part III. From this, it is noted that a marked deterioration has occurred with a reduction in overall ERR from 182 at appraisal to 5.1Z in 1989. This is due mainly to increased in costs overall, to the emphasis placed on heavy expenditure items such as dams, and to the very delayed buildings in production. 26. Estimated HIP overall costs at full development are listed in Table 9, Part III. Of great concern is the large rise in cost per hectare estimate from Rs. 16,600/ha in 1982 to Rs. 37,900/ha in 1989. Even with coat escalation of 7Z per annum, this should not have exceeded Rs. 27,000/ha based on appraisal estimates. It is now known that at appraisal, unit construction rates some three years out of date were used by ID in price estimates, partially explaining the exceptional increase. A further factor is the large isicrease in land compensation prices. Thus, it would appear that MIP's are not with present criteria viable development options, even though they undoubtedly serve social and poverty reduction interests. Project Sustainability 27. Following completion of the MIP's, incorporating updated design and construction practices, they should be sustainable over the normally accepted project life expectancy for projects of this type. It will be important to ensure efficient water management both from dam/system and on farm aspects, and it is essential that the agricultural extension services focus on improved husbandry/water application techniques.  8 Bank Performance 28. Throughout the project cycle, the Bank has supplied an exceptionally large technical assistance/supervision input to the project, as demonstrated by Table 8B, Part III. At preparation, Bank technical staff and consultants assisted ID significantly in design, hydrology and agricultural aspects, and CWC with appraisal criteria. During supervision, Bank technical assistance in the fields of system design, dam safety, OFD/RWS, and quality control has helped to raise the standard of these components. Only in R & R has the Bank failed, in spite of substantial staff inputs, to improve the poor performance of ..OMP. It has already been noted above that due to the very wide dispersion of HIP's within the state, it was very difficult within staffing constraints to give adequate Bank supervision to each HIP. Borrower Performance 29. In the aspects of dam design and construction, studies, and monitoring, ID demonstrated acceptable standards and diligence. The standards of design and construction j$ main canals and distribution systems were variable depending on the skills and managements of the local circles. Quality control and dam safety aspects, so inadequate initially, showed improvement following Bank representation. ID also demonstrated its commitment to hydro-meteorology improvements. Due to GOMP restrictions throughout, ID was severely constrained in its supervision activities, especially on canal works, by very inadequate transport facilities for its staff. In spite of repeated Bank representations, this did not improve. 30. The ID demonstrated strong management at State level, which invariably ronsidered Bank supervision recommendations and observations. As the chain of command reached to divisional level in the zonal administration, so quality and dedication declined. GOMP has overall a sound cadre of irrigation engineers, but their effectiveness was suppressed in many instances by lack of consistent standards, wide dispersion, lack of facilities, and political interference at site level. 31. CWC carried out appralsal of MIP's in an overly proforma manner, without applying subjective judgement in many instances. Bank reviewers were generally obliged to request additional data and analysis before being in a position to consider MIP's for inclusion. Invariably, R & R aspects were treated superficially. CWC also had a supervision and monitoring role, defined in Schedule 3 of the DCA. Although its engineers carried out site visits, reporting was tardy and very proforma, with little incisiveness or critical comment, and overly positive. Many technical and institutional issues, such as dam safety weaknesses or R & R inadequacies, were not addressed. As a result, the bank was obliged to increase its supervision inputs to the high levels indicated in Table 8B of Part III in order to adequately monitor progress and to identify salient issues and problems. Project Relationships 32. Throughout, GOMP agencies and the Bank maintained the most cordial relationships, which enabled frank presentation by each side of matters of concern. In technical aspects, ID and CWC invariably considered Bank observations fully, and ensured that their concerned engineers took the appropriate actions. This created an atmosphere of professional association which was one of the strengths of the project.  9 Consultancy and ContractinR Services 33. Consultants were only utilized, at Bank insistence, on microsystem/OFD layout and design. Only two of the numerous firms retained were able to demonstrate competence and diligence, and the remainder were terminated by GOMP. 34. Contractors were utilized for all project works, except where ID took departmental action on abandoned contracts. In general, the contractors for dams and larger canal components were competent and diligent, with one major exception on Kanhargaon spillway contract. Contractors utilized on microsystem works were invariably of inadequate capability, producing low quality works. Project Documentation and Data 35. In general the legal covenants were appropriate and adequate. The SAR provided a good framework for project execution, but it lacked technical detail. 36. ID was requested to prepare a PCR to the previous format at Credit closure in April 1988, and the Bank provided guidelines and examples. To date, no action appears to have been taken on this. The PPM cell provided assistance to the Bank team preparing the PCR to the revised format, but this was somewhat tardy.  10 UXDRYA PRADE M UM IRITIiATION PROJET (Credit 1108-IN) pROJlECT COMPLETION PORT BARLTIS PROECT RRVIEW FROM BORROWER'S PERSPECTI (a) Confirm the adequacy and accuracy of the factual information contained in Part III of the PCR. Please refer observations under Part III. (b) Comments on the analysis contained in Part I of the PCR. Please refer observations under Part III. (c) Evaluate the Bank's performance during the evaluation and implementation of the Project, with special emphasis on lessons learned that may be relevant for the future. Bank personnel were recognized as professional experts. The Mission Members were highly qualified in respective fields and visited site often during implementation. The Dam Review Panel visited project sites and held field discussions practically every year. The works were executed according to suggestions/recommendations of the Mission experts and Dam Review Panel. It is further suggested that communications between the Bank and the borrower including the accounting and reimbursement of loan procedure should be sufficiently well documented so that the changes in the project officer or Mission personnel will not effect the continuity of work. (d) Evaluate the Borrower's ,wn performance during the evolution and implementation of the pro ', with special emphasis on lessons learned that may be relevant for t... future. The performance of participating institutions in overall project planning was quite good. The implementation of specialist assistance/management for improvement in planning were carried out with little or no problem. However, it was observed that in some sub- projects the head work was completed wi rn the time schedule but there was delay in execution of canal system. Dela- was mainly due to delay in acquisition of land required for canal L stem and time taken in clearance of forest land cases by Government of India.  11 In some cases, contract agencies also failed to complete tha work as per schedule which delayed the completion of canal works. To avoid recurrence, future works should be awarded to consultants with proven competence and dependability. Progress on some of these sub-projects suffered due to frequent transfer of staff and shortage of inspection vehicle. (e) Assess the effectiveness of the relationship between the Bank and the Borrower during the evaluation and implementation of the project. Relationship between the Bank and Borrower during evaluation and implementation was very effective. Whenever, clarification, guidance from the Mission was sought it was promptly received. The Appraisal Team laid down design criteria and broad specifications to be adopted in the sub-projects included in the M.P. Med'um Project loan scheme after detailed discussion in the meetings with officers of M.P. Irrigation Department. The criteria thus evolved was adopted in the preparation of Appraisal report and in the implementation of the project. The Bank Mission visited several sub-projects to assess the performance during construction. This was very effective in achieving high standards of construction. (f) Evaluation the performance of co-financiers and assess the effectiveness of their relationship with the borrower during the evaluation and implementation of the project. In M.P. Medium Project, the co-financing was available from IFAD to the extent of 21.9 M.SDR vide their loan Credit No. 81-IN. The IFAD loan credit has been fully utilized. The relationship with the IFAD and State Government during evaluation and implementation was very cordial and effective.  Table 1 Page 1 of 3 INDIA MP MEDIUM IRRIGATION PROJECT (Credit 1108-IN) TABLE 1 Related Bank Loans and Credits Loan/Credit Purpose Date of Status Coments Title Approval 1. Credit 391-IN: To expand and improve the June Information not M.P Agricultural credit facilities available 1973 readily available. Credit Project for farmers throughout M.P. (US$ 33.0 M) 2. Credit 562-IN: To increaso agricultural June Project closed Most prescribed project M.P Chambal Command production and farm incomes 1975 06/30/81 after a two works exceeded targets, Area Development through the upgrading of year extension. but OFD works 522 below - Project (US$ 24.0) irrigation facilities, and target. Project failed to provision of drainage, OFD water management. works and rural roads in the Chambal Project in M.P. 3. Credit 712-IN: To strengthen agricultural June Project closed Some 42 of Credit was not M.P Agricultural supporting services in MP, 1977 9/30/83 on schedule. disbursed. Project largely Extension and particularly ex:ension and achieved its objectives. Research Project research. (US$ 10.0 M) 4. Credit 715-IN: To assist provision of May Project closed on The project substantially Nationa'. agricultural credit 1977 12/31/79 on achieved its objectives, Agricultural nationally. MP was an included schedule. and was fully disbursed. Refinance and State. Development Corpn. Project II (USS 200.0 M)  Table 1 Page 2 of 3 Loan/Credit Purpose Date of Status Comments Title Approval 5. Credit 947-IN: To assist provision of July Project closed on The project substantially National agricultural credit 1979 06130/82 on achieved its objectives. Agricultural nationally. HP was an included schedule. Certain problems were Refinance and State. experienced with Development Corpn. agricultural credit Project III. administration and high (US$ 250.0 M) levels of repayment defaulters. The Credit was fully disbursed. 6. Credit 1138-IN: To reorganize the extension April The project was The project, although M.P Agricultural services in 30 districts of 1981 originally due to delayed, has substantially Extension II MP, and to complete activities close on 06/30/87 achieved its objectives. Project. commenced under Credit 391-IN. but it has been It will be fully (US$ 37.0 H) extended to close on disbursed. 06/30/89. 7. Credit 1177-IN: To assist with the September The project was due The project has suffered M.P Major Irrigation construction of the Mahanadi 1981 to close on many delays, mainly due to Project Reservoirs Project and the 06/30/87, but it is late delivery of designs, (SDR 195.2 M) Hasdeo Bango Project. now expected to and procurement problems. extend to 06130/91. It nevertheless promises to be an increasingly productive project. 8. Credit 1288-IN: To continue with upgrading of August The project was The project did not M.P Chambal II the irrigation system 1982 originally due to achieve its targets in Irrigation Project commenced under Credit 562-IN, close on 3/31/87. most components, with OFD (SDR 27.6 M) and to establish an intensive but was extended to works much delayed. The block development in which to 3131/89. intensive development demonstrate conjunctive use of block has successfully canal and groundwater from demonstrated the augmentation tubewells. contribution of augmentation tubewells.  Table 1 Page 3 of 3 Loan/Credit Purpose Date of Status Comments Title Approval 9. Credit 1523-IN: To consolidate and improve February Project still All components National agricultural extension 1984 ongoing, current significantly delayed. Agricultural services in Rajasthan, Orissa closing date Classified as problem Extension Project I and Hadhya Pradesh, and 03/31/90, expected project. (SDR 38.6 H) Directorate of Extension, HOA, closing date GOI. 03/31/92. 10. Credit 1631-IN: To strengthen location October Project still Components in Madhya National specific research at the level 1985 ongoing, current Pradesh very delayed, but Agricultural of the agro-climatic zones of closing date showing improvement. Research Project II India, including Madhya 12/31/92, expected (SDR 69.6 M) Pradesh. closing date 12131194.  15 INDIA MP MEDIUM IRRIGATION PROJECT (Credit 1108-IN) TABLE 2 Proiect Timetable Item Date Date 1/ Date Planned Revised Actual - Identification (EPS) 9/25/79 - Preparation 9/79-8/80 - Appraisal mission 8/12-9/6/80 - Credit negotiations 2/15/81 2/9/81 - Board approval 3/31/81 3/17/81 - Credit signing 3/26/81 - Credit effectiveness 5/13/81 - Credit completion 3/31/86 3/31/88 3/31/88 - Credit closing 3/31/87 3/31/88 3/31/88 Note: 1/ at extension March 1987.  16 INDIA M.P. MEDIUM IRRIGATION PROJECT (Credit 1108-IN) TABLE 3 Schedule of Disbursements Date Appraisal Revised 1/ Actual Actual to Projection Projection SAR/Revised Projection -------------------SDR M-------------------- (Z) June 1982 6.4 1.4 23 June 1983 27.4 9.6 35 June 1984 50.7 20.7 41 June 1985 78.8 34.4 44 June 1986 102.2 64.4 59.1 92 June 1987 112.6 88.5 79.3 90 June 1988 2/ 112.6 93.1 83 November 1988 3/ 112.6 106.6 95 Notes: 1/ Made in anticipation of revised closing date of 3/31/88. 2/ Closing date 3/31/88. 3/ Date of final disbursement 11/22/88: balance of SDR 5.979 M cancelled.  17 Table 4 Page 1 of 4 INDIA M.P. NIDI0HI IRTGATION PlOJICT (Credit 1108-IN) TANL! 4 Proiect Iale.mtation 6/ Indicator Unit Appraisal Initial Revised Actual Full estimate detailed estimate achieve- irrigation estimate ment potential 2/ 8/ 3/ 8 41/ 8/ 91 Io/ (3/82) (8/84) (9/88) (9/88) (ha) 1. Medium Irrigation Proiect Construction 1/ (i) Kolar MIP. - dam S 90 90 80 - barrage Z 100 100 80 - main/branch canals km 154 154 54 (39) - distribution network km 3984 3984 nil - irrigation potential ha 6100 6100 nil 45,087 (ii) Dejla Dewada MIP - dam 2 70 (100) 88 (100) 88 (100) 98 - main/branch canals km 28.5 30 26 26 (9) - distribution network km ns 621 621 45 (5) - irrigation potential ha 9000 6000 6000 nil 9000 (iii) Matiyari MIP - dam Z 75 (100) 70 (100) 100 - weir 2 100 100 100 - main/branch canals km 104 104 79 (14) - distribution network km 1163 1163 19 (18) - irrigation potential ha 10,100 10,100 nil 10,100 (iv) Chandora MIP - dam 2 93 (100) 93 (100) 100 - main/branch canals km 17 16 15 (4) - distribution network km 322 322 8 (0) - irrigation potential ha 2800 2800 nil 2800 (v) Bundala MIP - dam z 99 (100) 99 (100) 100 - main/branch canals km 32 32 25 (9) - distribution network km 414 414 29 (0) - irrigation potential ha 3600 3600 nil 3600 .4'  18 Tabie 4 Page 2 of 4 Indicator Unit Appraisal Initial Revised Actual Full estimate detailed estimate achieve- irrigation estimate ment potential 21 8/ 3/ 8/ 41 8/ 9/ LO/ (3/82) (8/84) (9/88) (9/88) (ha) (vi) Kaliasote MIP - dam X 92 (100) 92 (100) 98 - main/branch canals km 80 80 17 (6) - distribution network km 363 363 11 (0) - irrigation potential ha 8100 8100 nil 7500 (vii) Choral MIP - dam X 69 (100) 69 (100) 92 - main/branch canals km 46 48 22 (0) - distribution network km 449 449 22 (2) - irrigation potential ha 3900 3900 nil 3900 (viii) Tillar MIP - dam X 100 100 96 - main/branch canals km 25 113 37 (0) - distribution network km 623 623 144 (1) - irrigation potential ha 7200 7200 nil 7230 (ix) Chhirpani MIP - dam 2 100 100 100 49 - main/branch canals km 12 18 52 44 (44) - distribution network km 14 805 805 nil - irrigation potential ha 7000 7000 7000 nil 7000 (x) Matiamati MIP - dam 2 90 (100) 90 (100) 91 - main/branch canals km 37 34 34 (30) - distribution network km 575 575 92 (10) - irrigation potential ha 5000 5000 1500 5000 (xi) Ghunghutta MIP - dam X 90 90 75 - main/branch canals km 52 52 52 (0) - distribution network km 1035 1035 78 (52) - irrigation potential ha 10,000 10,000 nil 9000 (xii) Gomukh HIP - dam z 75 95 95 100 - main/branch canals km 17.5 56 56 38 (37) - distribution network km no 701 701 205 (88) - irrigation potential ha 6100 6100 6100 nil 6100  19 Table 4 Page 3 of 4 Indicator Unit Appraisal Initial Revised Actual Full estimate detailed estimate achieve- irrigation estimate ment potential 2J 8/ 31 8/ 4/ 8/ 9/ Lo / (3/82) (8/84) (9/88) (9/88) (ha) (xiii) Budhna HIP - dam I nu 100 72 - main/branch canals km no 17 14 (12) - distribution network km no 228 nil - irrigation potential ha 3500 3500 nil 2600 (xiv) Kanhargaon HIP - dam Z nf 100 100 - main/branch canals km ns 27 16 (6) - distribution network km no 1725 6C (31) - irrigation potential ha 2000 2000 nil 2900 (xv) Dudhi HIP - dam I no 70 70 - main/branch canals km ns 11 11 (11) - distribution network km no 321 nil - irrigation potential ha 3700 3700 nil 3700 (xvi) Barnai MIP - dam I ns 80 5 - main/branch canals km ns 14 nil - distribution nezwork km ns 120 nil - irrigation potential ha nil nil nil 2080 2. Water Management Areas (i) Ajnal WMM - improved command area ha 200 5/ no 410 403 (ii) Satak WMA - improved command area ha 200 5/ ns 446 439 (iii) Chillar WHA - improved command area ha 200 5/ no 432 432 (iv) Saroda WMA - improved command area ha 200 5/ no 646 417  20 Table 4 Page 4 of 4 Indicator Unit Appraisal Initial Revised Actual Final estimate detailed estimte achieve- estimate estimate ment 21 3/ 4/ 6 (3/82) (8184) (9/88) (9/88) (ha) 3. Hydro-meteorological Component ni 7/ ni 7/ - river gauging No 25 21 22 station (automatic recorders) - cableway install- No 25 5 5 ations (with measuring equipt.) - rain gauge stations No 25 23 11/ 23 11/ with self-recording gauges - motor boats No 4 1 4 - echo sounders No 4 0 4 - sediment analysis No 4 0 4 laboratories 4. Demonstration Farms - demonstration farms No 4 ns ns 4 12/ 4 12/ - area to be covered ha 40 40 0 Notes: 1/ "Main/branch canals" includes distributaries; distributik. network comprises canals down to 8 ha; creation of irrigation potential implies diseribution network completed: fully lined. 2/ Sample projects appraised by the B&nk, distributaries only quoted. 3/ Following first major Bank supervision in March 1982, distribution network includes distributaries and minors. 4/ At March and August 1984, when sub-projects finalised. 5/ Location not specified. 6I Time slice project only. 7/ Hydromet component partially absorbed under MP Major Irrigation Project Credit 1177-IN. 8/ Figures for dams: 1st indicates work under project; 2nd in () indicates total completion at end project i.e. some construction existed before project. 91 Figures for dams indicate total achievement in time slice; figures for canals: 1st indicates earth works completed, 2nd in () indicates lining completed. lo/ Final estimate September 1988. ill Considering 22 MIP's in some of which more than 1 gauge planned. 12/ At Shivpuri (Chambal basin); Panna (Ganga basin); Khargone (Narmada/Tapti basins) and Rajnandgaon (Mahanadi/Godavari basins). Abbreviations: ns - not specified, ni - not included  21 Table SA Page 1 of 2 INDIA MP HEDInK IUIGATION PROJECT (Credit 1108) TABI Sk Prolect Costs 1/ Final Item Appraisal Initial detailed Revised Estimate estimate 2/ estimate (3/82) estimate (1/87) 9/88 Local nE Total Total 3/ Total 4/ Total 5/ (USS M) (US$ M) (US$ M) tUSS M) 1. Medium Irrigation Proiect Construction. (i) Kolar MIP 65.7 43.0 52.0 (ii) Dejla Devada HIP 14.1 10.8 10.6 16.3 (iii) Matiyari MIP 16.1 10.5 15.2 (iv) Chandora MIP 6.4 4.1 4.4 (v) Bundala MIP 6.7 4.3 4.9 (vi) Kaliasote HIP 14.3 9.8 20.4 (vii) Choral MIP 9.0 10.2 10.0 (viii) Tillar MIP 10.1 10.7 14.0 (ix) Chhirpani MIP 12.9 11.9 9.1 9.2 (x) Hatiamoti MIP 8.1 4.5 7.7 (xi) Ghunghutta MIP 19.2 13.0 11.3 (xii) Gomukh HIP 9.2 9.1 6.0 12.4 (xiii) Budhna MIP 4.1 2.9 5.1 (xiv) Kanhargaon HIP 4.2 7.1 5.5 (xv) Dudhi MIP _ 5.4 3.0 (xvi) Barnai MIP 7.2 3.2 1.3 Total (USS M) 153.3 31.4 184.7 6/ 202.9 154.4 192.70 Total (Re. M) (1724.7) (2007.2) (2774.9)  22 Table 5A Page 2 of 2 Final Item Appraisal Initial detailed Revised Estimate estimate 21 estimate (3/82) estimate (1/87) 9/88 Local FE Total Total 3/ Total 4I Total 5/ (US$ M) (USS M) (US$ M) (US$ M) 2. Water Management Areas 0.4 0.1 0.5 ns 1.0 1.20 3. Hydrometeorological Component 7/ - installations equipt. 0.5 0.55 - recurring costs 0.1 0.63 - miscellaneous 0.1 0.06 Total 0.5 0.2 0.7 na ni 1.24 4. Demonstration Farms 0.1 0.1 0.2 ns ns 0.03 5. Technical Services 0.6 0.4 1.0 ns ns 0.04 6. Equipment and ni ni ni ns ns 1.86 Vehicles Total Base Cost 154.9 32.2 187.1 - 153.4 197.07 Price escalation 37.4 7.6 45.0 - - - Total Project Cost - (USS M) 192.5 39.8 232.1 - 153.4 197.07 - (Rs. M) 1616.0 334.0 1950.0 - 2019.9 2837.8 Notes: 1! Bank financed time slice project only. (see Table 4). Prices for dates shown. 2/ At appraisal, US $ 1.00 - Rs. 8.4. 3/ At March 1982, US $ 1.00 - Rs. 8.5. 4/ At January 1987, US $ 1.00 - Rs. 13.0. 5/ At September 1988, US $ 1.00 - Rs. 14.4. 6/ SAR para 5.23 overall cost estimate. 7/ Hydromet component partly absorbed under MP Major Irrigation Project Credit 1177-IN. Abbreviations: ns - not specified ni - not included  23 INDIA MP MEDIUM IRRIGATION PROJECT (Credit 1108-IN) TABLE 5B Proiect Financing Source Planned in 1/ Final Actual 2/ Credit Agreement (11/88) (US$ '000) (US$ '000) A. IDA Expenditure Categories 1) Civil Works 125,537 141,903 2) Equipment and 7225 2313 vehicles 3) Technical assistance 1219 51 4) Unallocated 6019 1378 3/ Total 140,000 145,645 B. Cofinancing Institutions IFAD Loan 81-IN - Civil works 27,228 29,915 C. Other External Sources nil nil 4/ D. Domestic (GOMP) 64,915 17,488 Total (US$ '000) 232,143 193,048 Total (Rs. M) 1950.0 2837.8 Notes: 1/ Conversions prevailing: SDR 1.00 = US$ 1.243 US$ 1.00 = Rs. 8.4 2/ conversions prevailing: SDR 1.00 = US$ 1.366 US$ 1.00 = Rs. 14.7 3/ Exchange rate adjustment on special account. 4/ As exchange rates were changing throughout project period, this is not true cost to GOMP.  24 INDIA MP MEDIUM IRRIGATION PROJECT (Credit 1108-IN) TABLE 6A Direct Benefits Estimate 2/ 2/ Indicator Appraisal Closing date Full development estimate achievement estimate (3/88) 1. Increase in 107,000 3200 127,617 irrigated area (ha) 2. Increase in 238,800 15,000 373,000 foodgrain production (tons/year) 3. Increase in 1/ 336 500 885 foodgrain prduction value (Rs H/year) 4. Increase in cash 120 14 541 crop production value (Rs M/year) 5. Value added to local 290 64 1426 (state) economy (Rs M/year) 6. Directly benefitting 29,700 4000 59,900 farm families (No) 7. Increase in on farm 22,800 3940 49,940 employment (Man years) 8. Increase in non-farm 8900 1040 11,710 employment (Man years) 9. Increase in average 1/ 320 710 780 net farm incomes (Rs /year) Notes: 1/ Values expressed in current rupees at time of estimate. 2/ Made in July, 1989.  INDIA MP HEDIUK IRRIGATION PROJECT (Credit 1108-IN) TABLE 6B ELonoiic IDact Economic Rate of Return Configuration Appraisal 1/ Revised 21 Current 6/ estimate estimate estimate