India - Gujarat Irrigation Project

Document of The World Bank FOR OFFICIAI, USE ONLY Report No. 6841 PROJECT COMPLETION REPORT INDIA GUJARAT MEDIUM IRRIGATION PROJECT (CREDIT NO. 808-IN) June 24, 1987 Irrigation II Division South Asia Projects Department This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its eon!ents may not otherwise be disclosed without World Bank authorization.  PRINCIPAL ABBREVIATIONS AND ACRONYMS USED AC - Appraisal Committee (within CWC) AD - Agriculture Departmeut CAD - Command Area Development Wing (within ID) CCA - Cultivable Command Area CDO - Central Design Office cWC - Central Water Commission DA - Department of Agriculture (within GOG) ERR - Economic Rate of Return GOG - Government of Gujarat GOI - Government of India ICB - International Competitive Bidding ID - Irrigation Department of GOG IP - Irrigation Projects Branch within the ID LCB - Iocal Competitive Bidding MIP - Medium Irrigation Project (CCA between 2,000 and 10,000 ha) MSDC - Minor System Design Cell O&M - Operation and Maintenance PCR - Project Completion Report PERT - Program Evaluation and Review Technique PPM - Project Planning & Monitoring Cell within ID PWD - Public Works Department QCU - Quality Control Unit RWS - Rotational Water Supply UNDP -- United Nations Development Programme USAID - U.S. Agency for International Development WMA - Water Management Area (located in Panam medium irrigation project, one of the MiPs financed under tnt: project) wMU - Water Management Unit (within the CAD wing) GLOSSARY major project - irrigation project with CCA exceeding 10,000 ha medium project - irrigation project with CCA in the range of 2,000 to 10,000 ha minor project - irrigation project of below 2,000 ha CCA main, branch, - main conveyance channels distributary canals minor - channel serving one or more village service areas watercourse - small channel (lined) below the outlet serving a or subminor chak of 30-60 ha divided into 5-8 ha blocks (subehaks), with capacity to take full outlet discharge from head to tail (Continued on back cover)  FOR OM= U ONLY THE WORLD BANK Washington, D.C. 20433 U.S.A. oiked DhOtctvwGn~a Opsatm Ewvalutaw June 24, 1987 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECTs Project Completion Report on India Gujarat Medium IrriZation Project (Credit 808-IN) Attached, for infoimation, is a copy of a report entitled 'Project Completion Report on India Gujarat Medium Irrigation Project (Crodit 808-IN)" prepared by the South Asia legional Office. Further tvaluation of this projeet by the Operations Evaluation Department has not been made. Attachment This docunment has a muitiad &-tribution and may bs used by mipients only In tM peffomnuem of their offkicil dut tbaIts con tent many not otbefwiso be dhebzsd without Wodid Ibu audtininton .  F-O R- OFFICIL USE ONLY GUJMAT M$DIUN IRRIGAtIONI PROJWCT T.able of Contents PREFACE i BASIC DATA SHEET ii EVALUATION SUMMARY iv I. INTRODUCTION Background .....e.....eO....... O.O **e .. 1 Identification, Preparations and Appraisal .... ........ 2 1I. THE PROJECT AT APPRaI8AL The Project Area *...............3........ee**ee 3 Project Scope ........... ...*** 3 Cost and Finance J 3 Procurement 4......ee.... .eeo..,. O e**e* 4 Implementation Organization ....................e.... 5 Benefits ...... ....... *6e ..o.. 040. 0 oo 5 III. PROJECT IMPLEMENTATION Effectiveness and Start-up ....... ................ 5 Pbysical Works . ............ ....0...... *e.e *. 6 Procurement ........ ............... ................ 11 Compliance with Covenants ...............e........ 1 IV. COSTS, DISBURSEMENTS. AND FInANCIAL SQURCES c st Estimates *. 12 Disbursement and Financial Sources ooo.o**.*eoo.. **.eoo 13 V. AGRICULTURAL IMP-ACT General *..eoo ..o.o*...o.*.e o*o.. oooe*.oe*o-ooo****oo*e 14 Irrigated Area, Yields, and Production .o.*........... 15 VI. ECONOMIC EVALUATION Economic Rate of Return ...000006***.**e*****oo*e*e*ee, 18 This document has a festricted distbution and may be used by recipnts onl in th pofonnrman of their officl duties. Its contents may not otherwis be discled without World ank authorzain.  -2- VII. INSTITUTIONAL PERFORMANCE Appraisal Committee of the Central Water Commission ... 19 Irrigation Department ..... * ........................* 20 Agriculture Department ....... .. .......... ........... 21 Accounting, Auditing, and Reporting ................... 22 VIII. BANK PERFORMANCE Preparation and Appraisal ............................. 22 Supervision ............................. . 24 IX. LESSONS LEARNED Implementation Management ............................. 25 The Need for Long-Term Planning ....................... 26 Operational Plans ............................. 27 Resettlement ......... 27 LIST OF TABLES Tables 1 Progress of Subproject Approval by CWC and IDA 2 Progress of Construction by June 30, 1984 3 Expenditures on MIPs and Modernization Projects 4a Actual and Estimated Schedule of Disbursements 4b Annual Disbursements by Category 5 Present and Projected Cropping Patterns 6a-d Project Cost and Benefit Streams for Economic Analysis 7 Development of Staffing over the Project Period 8 Rehabilitation of Displaced Families Annex 1 Summary of Appraisal Criteria for MIPs Agreed with IDA 2 Compliance with Credit Conditions and Reporting Requirements 3 Details of GOG's Resettlement Policy for Displacet Persons of Irrigation Projects under Phase I of the Medium Irrigation Project 4 Comments Received from the Borrower on the Draft Project Completion Report  PROJECT COMPLETION REPORT INDIA C-UJARAT MEDIUM IRRIGATION PROJECT (CREDIT 808-IN) PREFACE Introduction This is a Project Completion Report (PCR) of the India Gujarat Medium Irrigation Project (Credit 808-IN). The credit amount of US$85.0 million was approved by the Board on May 23, 1978, and the Credit signed on July 17, 1978. The credit was closed on June 30, 1984, after the final disbursements were made on May 18, 1984. The PCR was prepared by the South Asia Region, Irrigation II Division, after the final supervision mission in June 1984. Legal documents, the President*s Report, supervision reports and correspondence were also reviewed. The Operations Evaluation Department has decided not to audit the project. The draft report was sent to the Borrower on February 20, 1987 for their comments. Comments received from the Borrower are attached to the PCR 88 Annex 4 and their content has been taken into consideration in the final preparation of the report.  - ii - GUJARAT MEDIUK IGUIATION PROJECT (Credit 808-IN) Project Colmnietn-9enort Balsic DRta shag KEY PROJECT DAT Apprsisal Actual or Actual as Z of Bstimte Estimated Actua AgrAisal Estimate Project Costs (US$ million) 170.5 344.1 I/ 202 1/ Credit Amount (USS million) 85.0 85.0 100 Date Board ARorovtal 05125/78- Date Iffectiveness 10/31/78 - Date Pbyeical QWi~onents Cgmplated 2/ Progortion CoMleted (Z) 31 DM 94 78 8/ 9/ Main Canal 79 46 8/ 9/ Distribution SysteM 71 14 8/ 9/ Closinj Date 06L30184 06/30184 9l Economic Rate of Return (1) 201 30X 150 1/ Institutional Performance Satisfactor? Agronomic PerformAnce 2/ MA Number of Direct Beneficiaries 13.000 94.200 4)p0 It CUMULATIVE DISBURSEMENTS im F8 i Im FM PY84 ARgraisal estiMte (US$ million) 3.0 16.0 33.0 52.5 72.5 85.0 _Atual (US$ million) 2.2 9.3 21.4 34.2 61.3 85.0 Actual as I of estimate 73 58 65 65 85 100 Ate of final disbursement. 6/18A4 MISSION DATA No. of Specializations Performance Types of Mi8sio Da Persons Represented 14 Rating .L Zkn4 /I r.okblU tI (mo.tyr.) Identification 1977 - - _ Frenaratio_ 611977- 3 - AoAraisal 8-9/1977 4 - - - SuDervision 1 5/1980 3 EC,IM.E 2 2 _1_ T Sunervision 2 12/1980 3 EC.-M 2 2 MF SuDervision 3 10/1981 3 EC.E.F _ 2 -1 Sunervision 4 5/1982 2 EC.E 2 I MI Supervigion 5 11/19 2- 2 - C.1 2 1 .MT Supervision 6 5/1983 2. EC.E 2 1 MT Sunervision 7 11/1983 3 E 2 1 x Sugervigion-8 6/1984 4 E 2 2 MT  - iii - OTHER PROJECT DATA Borrower Goerumengt of Indi Executing Aiency Government of Gujarat Fiscal Year AprI - March 31- Name of Currencv (abbreviation) Ruees8 (Rs) Currency Exchange Rate: ARRraisal Year -Average US$ 1.00 = 8.6 Intervening Years Average --US$ 1.00 - 8.8 Comnletion Year Average_ US$ 1.00 - 11.89 Follow-on Project: Name: G~~~~uiarat-Medium IrrigationIPrec Credit Numbe;r: Cr,. 1496-IN- Credit Aount- -million): 't...O _ Date Board ARnroval: 06/1L2/84 l. Project was designed to support part of GOG's investment program for medium irrigation projects. The project left considerable freedom to the borrower in deciding on the subprojects to be financed under the project once these projects fulfilled specified engineering and economic criteria. The exact number of projects as well as detailed project costs or number of beneficiaries were not exactly known at the time of appraisal. Comparisons of "actuals" with appraisal estimates are therefore not very meaningful. 2/ Only one of the projects financed under this time slice was partially operation.l at the closing date of the credit. 3/ The physical quantities of works (such as earthworks in m3) estimated to be required to completion, form the basis for these calculations. The projected (or actual) quantities completed up to a specific time are expressed in percentage of the overall quantities required. 4/ E - Engineer WM = Water Management Specialists F - Financial EC Economist .)/ 1 - problem-free or minor problems, 2 = moderate problems, 3 - major problems 6/ 1- improving, 2 = stationary, 3 = deteriorating ./ F - Financial, M Managerial, T - Technical, P - Political, 0 - Other 8/ The achievements are given as a percentage of the revised targets. 9/ Comparison to appraisal estimates not relevant in that actual sub-project composition of project not known at time of appraisal.  - iv - PROJECT COMPLET'LON REPORT INDIA GUJARAT MEDIUM IRRIGATION PROJECT (CREDIT 808-IN) EVALUATION SUMMARY Iatroduction 1. The Gujarat Medium Irrigation Project was the second IDA-supported line-of-credit project designed to promote investments in medium-sized irriga- tion projects in India. The first project of this kind was the Orissa Irrigation Project (Credit 740-IN) for which OED issued an audit report on May 17, 19a5 (Report No. 5661). Both projects involved the Bank in devolving some of its normal appraisal and supervision responsibilities to an Indian institution, the Central Water Commission (CWC). Oblectives 2. The credit financed the construction of new medium irrigation projects, the modernization of projects already in operation, the establishment of a network of automatic discharge measuring stations, and the technical services needed to execute monitoring and evaluation studies. The cost of constructing new medium projects, which was estimated at Rs 1178.8 M (US$137.07), was expected to be about 80% of the total project cost. Modernization costs were estimated at Rs 276.9 M (US$32.2). Equipment, including the river gauging network, was expected to cost Rs 7.91 M, US$0.92 1), and technical services Rs 2.69 M (US$0.31 M). Total project cost was estimated at Rs 1,466.3 M (US$170.5 M). IDA approved a credit of US$85.0 M, which was to fully finar.ce the foreign exchange component and 40% of local costs. Implementation Experience 3. The credit became effective on October 31, 1978. In December 1978, the U.S. Agency for International Development decided to provide a loan of US$30 M for Gujarat's medium irrigation development, which enabled the Government of Gujarat to step up its investment p;rogram. In accordance with the criteria and procedures agreed upon with IDA, the Government of India made its CWC responsible for appraising the sub-projects and monitoring their progress. In keeping with the line-of-credit approach, the number of sub-projects to be included under the time slice had not been predetermined at appraisal. A total of 23 new medium and 6 modernization projects were appraised by CWC. IDA approved 22 medium and all modernization p ojects under the project, which was fully disbursed by June 1984. 4. Owivg to the generally slow and uneven progress of construction, only one new MIP was partly completed and operational at the closing date, while the  v remaining new sub-projects were at various stages of construction. Moderniza- tion projects were even more behind schedule, so that the wc:ks on the main distribution system of only one project were substantially completed. Thus, the eonstruction of new and modernization projects will take longer to implement than the five years estimated at appraisal. Progress to date suggests that, on the average sub-project, the works should be completed within a total period of 10 years. The costs per irrigable hectare of constructing new irrigation works are now estimated to be 22% greater than appraised, and the costs of modernizing old works 35% greater. Because of greater-than-expected areas irrigated, however, total project costs will be 102% greater than estimated at appraisal. Although delayed by one year, the stream-flow monitoring program was implemented smoothly. The technical services concentrated on socio-economic investigations - the results of which were used in preparing phase II of the project - and on network design and water management studies. Results 5. The MIP component would create at full development a total of 192,436 ha of new cultivable command areas in contrast to the 63,000 ha anticipated at appraisal; the modernization component covered a total command area of 151,674 ha, whereas the appraisal estimate was 55,000 ha. The economic rates of return (ERR) of new MIPs estimated at completion were in the range 12-14%, substan- tially lower than the average 19% estimated at appraisal. However, the addition of modernization works, begun substantially in the follow-up Gujarat Medium Irrigation II Project (Credit 1496-IN), bring the overall project ERR to 30%, compared with 20% at appraisal. 6. The water management studies covered two distributaries in the Panam sub-project and focused on design and realignment of the network, appropriate structures, integration of existing tanks for additional in-system storage, and field channel construction that could handle a rotational water supply on an "on-off" schedtle with fixed constant flows at predetermined times. These pilot efforts led to the development of the structured network design approach, a concept that is being considered for all new future Bank-supported schemes in India. Sustainability 7. Institution building was a major objective of the project, continuing the arrangements pioneered under the preceding, Orissa Irrigation Project. The involvement of GOI's Central Water Commission under this credit in appraisal and review of sub-projects helped ensure continuity and hence sustained institution- building efforts. Findings and Lessons 8. The project experienced several major problems during implementation: (a) technical and engineering staff were in short supply for sub- project planning, design and extension. The human resource  - vi - component was weakly appraised; the appraisal report implied that available staff would ensure smooth project implementation. While this risk was not foreseen at appraisal, it turned out to be a major factor in the implementation delays; (b) the dam and spillway designs had to be reviewed in 1979 and 1983 following unprecedented floods; (c) the project was initiated without statewide standards and criteria for minor system design, and staff were inexperienced in minor network planning and design. Both factors contributed to slow progress in this part of the project. The appraisal dealt extensively with design criteria, but owing perhaps to inexperi- ence it did not recognize the importance of minor systems design, particularly in regard to the introduction of rotational water supply. (d) the acquisition of land for the construction of the main canals and distributary sletem on some 10 sub-projects was delayed because of inadequate planning, lengthy administrative procedures, and insufficient compensation packages for the displaced people; (e) the quality of construction, particularly of the lining component, was difficult to assure owing to insufficient embankment compaction and inappropriate methods of lining; and (f) not enough attention was given to sociological issues, particu- larly resettlement. Specifically, there were no understandings pertaining to the planning of resettlement, to compensation, to the creation of new facilities for displaced persons, or to any other measures that would enable them to regain a standard of living comparable to or better than their pre-relocation situation.  INDIA GUJARAT MEDIUM IRRIGATION PROJECT PROJECT COMPLETION REPORT I. INTRODUCTION Backaround 1.01 The State of Gujarat covers an area of 18.8 N ha and its population, according to 1983 estimates, is about 36 M. Although Gujarat i8 relatively urbanized and has a fast-growing manufacturing sector, the agricultural sector accounts for more than one-third of the State's income and for riore than 60% of the working population (1981). Agricultural productiou fluc- tuates greatly since the rainfall in much of Gujarat is low and highly vari- able and irrigatiou facilities are limited. The state is therefore suscep- tible to drought and famine. Serious food shortages due to drought have occurred at least 25 times since 1900. 1.02 Gujarat"s water resources are heavily concentrated in the southern and central parts of the State. Three large rivers flow through this area and the rainfall there is relatively high. In contrast, North Gujarat, Saurashtra, aud Kutch have limited surface aud groundwater resources, but have high to exceptionally high needs for irrigation. The following table gives an idea of the State's irrigation potential. Water Resources in Guiarat Ultimate Irrigation Potential Potential Created Potential Utilized