India - Haryana Water Resources Consolidation Project

Document of The World Bank FOR OFFICIAL lSE ONLY (7 xVt/2& 9 . -' / Report No. 12813-IN STAFF APPRAISAL REPC72T INDIA HARYANA RATER RESOURCES CONSOLIDATION PROJECT MARCH 3, 1994 MICROGRAPHICO Report No: 12813 IN Type: SAR Agriculture Operations Division Country Department II South Asia Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not othewise be disclosed without World Bank authorization.  Currenz Unit - Rupees (Rs.) US$l = Rs. 31.51/ FrI.gAL YxmA Government of India, State - April 1 to March 31 WRIrMSWr pNp URE IMETRIC SyS) 2/ 1 Meter (m) = '.28 feet (ft) 1 kilometer (km) = 0.62 miles (mi) 1 hectare (ha) = 2.47 acres (ac) 1 million cubic meters (Mm3) = 810 acre-feet (ac-ft) I million acre-feet (MAP) = 1,235 Nm3 1 thousand million cubic feet (TMC) = 28.32 Mm3 1 cubic foot per second (cfs or cusec) = 0.028 Mm3 per second (cumec) I cfs = 102.9 m3lhr 1 ton = 1,000 kilograms (kg) SEAAON$ kharif Monsoon season rabi Dry/Winter season The US Dollar/Rupee exchange rate is subject to change. Conversions in this report have been made at US$1.00 to Rs. 31.5, which represents the projected exchange rate over the disbursement p'riod. 2/ The Metric System has been used in most cases However, India is still in the process of transition to the metric system; non-metric units are still widely used, and were also used in this report in cases in which a conversion to the metric system may confuse the reader.  FOR 0MCUL US ONLY ABBREVIATIONS AND ACRONYMS ATW Augmentation -.jewell AU Administration Unit BC Bhakra Canal CADA Command Area Development Authority CE Chief Engineer CEC Chief Engineer Coordination CU Construction Unit CWC Central Water Commission DIT Direct Irrigation Tubewell DPU Data Collection and Water Resources Planning Unit DRU Design and Research Unit EIC Engineer-in-Chief ERR Economic Rate of Return GDP Gross Domestic Product GOH Government of Haryana GOI Government of India HA Hectare HDOA Haryana Department of Agriculture HDOE Haryana Department of Environment HDOFi Haryana Department of Fisheries HDPH Public Works Department (Public Health; also known as the Haryana Department of Public Health) HID Haryana Irrigation Department HSEB Haryana State Electricity Board HSMITC Haryana State Minor Irrigation Tubewells Corporation HSPCB Haryana State Pollution Control Board ICB International Competitive Bidding LCB Local Competitive Bidding M Million MC Municipal Councils MIS Management Information System NGO Non-Government Organization NPV Net Present Value NTPC National Thermal Power Corporation NWMP National Water Management Project O&M Operation and Maintenance PBC Planning and Budgeting Committee QA Quality Assurance Office SAU State Agricultural University SOE Statement of Expenditure SWP State Water Plan SWRC State Water Resources Committee WRU Water Regulation Unit WSPS Water Services Policy Support WSU Water Services Unit WUA Water User Association WYC Western Yamuna Canal 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 authoriation.  HAA WATER RESOURCE CNS LIDATION PROJECT Draft Staff Aprpaisl Report Table of Contents CREDIT AND PROJECT SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . I. WATER RESOURCES SECTOR Water Resources in India . . . . . . . . . . . . . . . . . .1 Development Priorities .... . . . . . . . . . . . . .. 1 The State of Haryana . . . . . . . . . . . . . . . . . . . . 2 Experience with Past Bank Lending . . . . . . . . . . . . . . 4 II. THE PROJEi' Rational,; for IDA Involvement and Origin . . . . . . . . . . 5 Project Objectives and Design . . . . . . . . . . . . . . . . 7 Project Description . . . . . . . . . . . . . . . . . . . . . 7 Project Investments . . . . . . . . . . . . . . . . . . . . . 8 Rehabilitation . . . . . . . . . . . . . . . . . . . . 8 Modernization . . . . . . . . . . . . . . . . . . . . . 8 Improved Operation and Maintenance . . . . . . . . . . 9 Institutional Support .......... . 10 Policy Reforms . . . . . . . . . . . . . . . . . . . . . . . 11 Institutional Reform . . . . . . . . . . . . . . . . . 11 Operation and Maintenance . . . . . . . . . . . . . . . 12 Cost Recovery . . . . . . . . . . . . . . . . . . . . . 13 Beneficiary Participation . . . . . . . . . . . . . . . 13 Groundwater Regulation . . . . . . . . . . . . . . . . 14 State Water Plan . . . . . . . . . . . I . . . . . . . 15 Expenditure Priorities . . . . . . . . . . . . . . . . 15 Power Sector .................... . 16 III. COST ESTIMATES, FINANCING AND DISB-URSEMENTS Project Costs and Financing ................ . 16 Procurement . . . . . . . . . . . . . . . . . . . . . . . . . 17 Disbursement . . . . . . . . . . . . . . . . . . . . . . . . 19 Retroactive Financing and Special Account . . . . . . . . . . 20 Accounts and Audits .... . . . . . . . . . . . . . ... . 20 IV. PROJECT IMPLEMENTATIONt AND MONITORING Organization and Management ... . . . . . ..... . . . . 20 Training and Technical Assistance . . . . . . . . . . . . . . 21 Monitoring and Evaluation ... . . . . . . . . . . . . . . . . 21 Project Reviews and Reporting . . . . . . . . . . . . . . . . 22 V. BENEFITS, JUSTIFICATION AND RISKS Project Benefits and Justification . . . . . . . . . . . . . 23 Economic and Financial Analysis . . . . . . . . . . . . . . . 24 Project Risks . . . . . . . . . . . . . . . . . . . . . . . . 25 Environmental Impact and Land Acquisition . . . . . . . . . . 25 VI. AGREEMENTS AND RECOMMENDATION ................... . 27  Annex 1 Project Costs Annex 2 Policy Reform Program Annex 3 Haryana Irrigation Department: Institutional Modifications Annex 4 Institutional Support Annex 5 Rehabilitation Component Annex 6 Modernization Component Annex 7 Technical Specifications Annex 8 Improved Operation and Maintenance Annex 9 Communications and Computer System Annex 10 Cost Allocation Recovery and Program Funding Annex 11 Farmer Participation in Irrigation Management Annex 12 State Water Plan Annex 13 Environment and Land Acquisition Annex 14 Economic and Financial Analysis Annex 15 Procurement Annex 16 Supervision and Implementation Plan Annex 17 Schedule of Disbursements Annex 18 Documents Available in Project File  WATER RESOtIRCES C NR0LIDATION PROECT I. CREDIT AND PROJECT SUMMARY Borrower: India, Acting by its President. szecuting Agency: The State of Haryana. Amount: IDA Credit SDR 187.3 million (USS 258.0 million equivalent). Terus: IDA: Standard with 35 years maturity. Co-Lending feozs: Government of India would make the proceeds of the Credit available to the State of Haryana (GOH) under standard arrangemer.ts for developmental assistance to the States of India. GOI would assume the foreign exchange risk. Project Description: The project would be a sector investment loan, financing an agreed state-wide program to improve the water distribution and drainage systems, and upgrade institutional capacity for water management and planning. The project would emphasize the re-ordering of the state's public expenditure priorities, supported by institutional and administrat mre reforms and policy adjustments. The project would finance the following investments under the areas of the Bhakra Canal system and Western Yamuna Canal system (including Gurgaon Canal) of the state: (a) rehabilitation of the existing canal and drainage systems, and selective lining of canals and watercourses; (b) w inn of canal and drainage systems and watercourses, replacement of the Hathnikund Barrage, and construction/extension of minors; (c) upgraded 2peration and maintAnannA (