India - Third Andhra Pradesh Irrigation Project

Report No. PIC1877 Project Name India-Third Andhra Pradesh Irrigation Project Region South Asia Sector Agriculture Project ID INPA35158 Borrower India, Acting by its President (GOI) Implementing Agency Government of Andhra Pradesh (GOAP), Andhra Pradesh Irrigation and Command Area Development Department (ICAD) A.P. Secretariat Hyderabad 500022, India Contact: Secretary to Govt. (Projects) Date PID Prepared March 1995 Project Board Date January 1996 Objectives 1. The primary objective of the project would be to realize the considerable potential created by past irrigation investments in order to create a drought-free basis for increased agricultural productivity, and improve rural incomes in economically backward regions of Andhra Pradesh. The objective would be achieved by Bank support for the completion of the Second Andhra Pradesh Irrigation (AP II) Project (Credit 1665-IN/Loan 2662-IN) works for the Srisailem Right Bank Canal (SRBC) and Sriramasagar Project (SRSP) canal irrigation schemes being undertaken by ICAD. The project's other objective would be to serve as a focus of GOAP's initial efforts to identify policy, organizational and budgetary reforms, system rehabilitation investments and participatory irrigation management arrangements to overcome the basic deficiencies and problems of its public irrigation sector. Description 2. The project would have the following components: (a) SRBC Sub-Project. Completion works and activities include: (i) sections of the main supply canal abandoned by contrac- tors; (ii) the Gorakulu By-Pass aqueduct; (iii) Owk Tunnel and Owk Reservoir; (iv) lined irrigation network for 65,000 ha (16 irrigation blocks); (v) land drainage and principal on-farm watercourses; (vi) feeder roads; (vi) O&M staff and water-user group training; (vii) agricultural and irrigation extension support; (viii) economic rehabilitation of families affected by land acquisition for canals and roads; and (ix) Srisailem Reservoir sedimentation survey and rehabilitation of dam safety instrumentation. (b) SRSP. Necessary works and activities include: (i) selective rehabilitation of canal lining and structures of Kakatiya Canal up to km 234; (ii) rehabilitation and modernization (lining and additional appurtenant structures) of 163,000 ha  of irrigation network (inclusive of watercourses and drains) above Lower Manir Dam (D); (iii) partial completion of distribution network rehabilitation begun under AP II for 80,000 ha below D; (iv) feeder roads; (v) O&M staff and water- user group training; (vi) agricultural and irrigation exten- sion support; (vii) economic rehabilitation of families affected by land acquisition under AP II for network extension below km 234 of Kakatiya Canal; and (viii) Sriramasagar Reservoir rehabilitation works and sedimentation survey. (c) Technical Assistance (TA). Funding would be provided for project preparation TA by international and local consultants to undertake a series of studies for Bank/GOAP preparation an AP WRCP. Implementation TA would be used to monitor construc- tion quality and participatory irrigation management. Project Financing 3. The costs (inclusive of contingencies) of completing SRBC and SRSP (limited works below D) are about US$200 million and US$100 million respectively. The Bank would finance US$0 million of project invest- ments, and its support would be adequate to complete the proposed project and realize its objectives. GOAP's current commitments arising out of on-going irrigation and roads contracts cleared by the Bank under AP II total about Rs.18441 million (about US$ 59.4 million) and have become a major burden on GOAP's capital budget. Given that the on-going works are based on works contracts previously reviewed and cleared by the Bank, the India Department would support the maximum retroactive funding percentage of 20t (of the Bank's contribution). Project Implementation 4. The irrigation components of the project would be implemented by ICAD while the Roads Division of the Roads & Buildings Department would undertake feeder roads. Management of water distribution O&M of minor canals would increasingly become the responsibility of Water User Associations (WUAs). GOAP would undertake the creation of WUAs for (i) selected rehabilitated SRSP distributaries covering an area of 72,000 ha, and (ii) undertake preparations for establishment of WUAs throughout the SRBC command area. It is proposed that a Project Management and Supervision Unit be established in the office of ICAD's Secretary (Projects). The PMSU would be headed by ICAD's Chief Engineer (Monitor- ing & Evaluation) and fortified by independent consultants. The PMSU would monitor procurement, construction quality, SRSP O&M and participa- tory irrigation management initiatives; it would also prepare semi- annual supervision reports for review by GOAP and Bank missions. Project Sustainibility 5. GOAP has agreed in principle to formulate project design features which, in the light of the lessons of previous projects, could contrib- ute to SRSP's sustainibility. Such features include: (a) reorganization of field O&M units based on a defined work program, adequate works budgets, communications, logistics, and individual responsibilities and accountability; (b) strict enforcement of rotational water supply (RWS) - 2 -  discipline and a requirement that farmers supplement rice consumptive use by conjunctive use of groundwater (shallow dug-wells are ubiquitous in the SRSP command area); (c) viable WUA arrangements based on involvement of all irrigators served by a minor canal; (d) creation of an apex organization of WUA representatives to elicit equitable and timely services from the O&M organization; (e) dry season ("rabi") supply to only two-thirds of SRSP on an annual rotation basis to enable concentrated O&M and ensure adequate and equitable rabi season supplies to all farmers; (f) provision for an increased O&M works budget specific to SRSP from FY 96; and (g) lining of all canals down to 1 cusec capacity to ensure their physical life and seepage loss reduction. 6. River basin simulation studies of the Krishna and Godavari Rivers within Andhra Pradesh have been conducted to ensure that SRBC and SRSP would have adequate water supplies under conditions of full development of all irrigation and water supply projects sanctioned by the Krishna and Godavari Water Disputes Award Tribunals. Based on the simulation studies, GOAP will have to submit reservoir water allocation and release rules agreed between the Andhra Pradesh State Electricity Board and ICAD prior to appraisal. The institutional arrangements to be tested under the project would serve as a pilot for identifying organizational reforms and viable procedures for improved beneficiary participation, O&M funding and organization, and reliable irrigation service. Improved construction supervision arrangements to improve construction quality - such as appointment of general supervision consultants - will also being sought during project appraisal. Environmental and Social Aspects 7. The proposed project would have no adverse irreversible impact on the physical environment, and improve social conditions in general: hence an Environmental Assessment Category 'B' was approved. Analysis has confirmed that the potential for development of widespread waterlog- ging is small under a RWS regime as: (a) extensive groundwater utiliza- tion by shallow dug-wells already exists in SRSP and effectively controls groundwater levels; and (b) given rationed RWS, the heavy soils of SRBC are likely to be carefully irrigated. The project will not have any adverse impact on National Parks and Protected Areas. Environmental impact assessment reports for each sub-project are under preparation and will be submitted prior to project appraisal. However, since Government of India environmental clearance has not yet been obtained by GOAP, the project will be upgraded to environmental category 'A'. 8. GOAP has submitted an Economic Rehabilitation Policy (ERP) for Project Affected Persons (PAPs) to the Bank for review. The Policy, inter alia, provides entitlements to all PAPs including landless persons and persons belonging to Scheduled Castes and Tribes (SCs and STs), and caters for any instances of involuntary displacement that may result from land acquisition. Socio-economic surveys are underway to determine the demographic composition and number of people that would be adversely affected by land or property loss as a result of: (a) past and future land acquisition for SRBC; and (b) land acquisition carried out under the AP II project in the SRSP command area below km 234 of Kakatiya Canal. Economic Rehabilitation Action Plans (ERAPs) based on the ERP and socio-economic surveys will be prepared for SRBC and SRSP to ensure that PAPs are not adversely affected by either the AP II or AP III - 3 -  projects. ERAPs for SRBC and SRBC will be submitted to the Bank for review prior to appraisal. A 10. sample survey of the "Below Poverty Line" PAPs included under the AP II Resettlement Action Plan will be carried out prior to completion of the draft (SAR) to determine if the AP II Resettlement Action Plan resulted in an increase of their living standards. Program Objective Categories 9. Completion of the SRBC sub-project is relevant to the Bank's poverty alleviation strategy as it would increase rural income in Andhra Pradesh's economically-backward and drought-prone Rayalaseema Region. The project focus on improved irrigation efficiency in SRSP is consis- tent with the Bank's natural resource conservation objectives. Status of Project Preparation 10. Preappraisal was completed during December 1994. Pending submis- sion of the ERAPs, the retrofit survey and environmental impact assessment reports, the project would be appraised in early September 1995. Contact Point: Public Information Center The World Bank 1818 H Street N.W. Washington D.C. 20433 Telephone No.: (202)458-5454 Fax No.: (202)522-1500 Note: This is information on an evolving project. Certain components may not necessarily be included in the final project. - 4 -