India - Orissa Water Resources Consolidation Project (Vol. 2 of 2) : Annexes

Document of The World Bank Report No. 14888-IN STAFF APPRAISAL REPORT INDIA ORISSA WATER RESOURCES CONSOLIDATION PROJECT ANNEXES NOVEMBER 20, 1995 South Asia Department II Agriculture and Water Operations Division  CURRENCY EQUIVALENTS Currency Unit - Rupees (Rs.) US$1 = Rs. 32.3 (January, 1995) FISCAL YEAR Government of India, State - April 1 to March 31 WEIGHTS AND MEASURES (METRIC SYSTEM)'/ I meter (m) = 3.28 feet (ft) I kilometer (km) = 0.62 miles (mi) 1 hectare (ha) = 2.47 acres (ac) I million cubic meters (Mm3) = 810 acre-feet (ac-ft) I million acre-feet (MAF) = 1,235 Mm3 I thousand million cubic feet (TMC) = 28.32 Mm3 I cubic foot per second (cfs or cusec) = 0.028 Mm3 per second (cumec) I cfs = 102.9 m3/hr 1 ton = 1,000 kilograms (kg) I/ The Metric System has been used in most cases. However, non-metric units are used in some instances, and were also used in this report in cases in which a conversion to the metric system may confuse the reader.  INDEX OF ANNEXES Annex 1 Letter of Development Policy . . .......................................1 I Annex 2 Orissa State Water Policy ......................................... 6 Annex 3 Institutional Reorganization and Strengthening ...................... 15 Annex 4 Pricing and Cost Recovery ......................................... 38 Annex 5 Water Planning .......................................... 49 Annex 6 Systems Improvement and Farmer Turnover ......................... 57 Annex 7 Scheme Completions .......................................... 130 Annex 8 Water Resources Research Fund .......................................... 151 Annex 9 Agricultural Intensification ......................................... 155 Annex 10 Resettlement and Rehabilitation ............. .............. 162 Annex 11 Indigenous Peoples Development ......................................... 202 Annex 12 Sectoral Environmental Assessment Summay ...................... 233 Annex 13 Training and Technical Assistance ........................................ 254 Annex 14 Public Awareness and Information ....................................... 286 Annex 15 Criteria for Preparation and Selection of Investments ........... 288 Annex 16 Criteria for NGO Selection .......................................... 291 Annex 17 Baseline Survey Terms of Reference .................................... 292 Annex 18 Detailed Project Cost Tables ......................................... 295 Annex 19 Economic and Financial Analysis ......................................... 335 Annex 20 Schedule of Disbursement ......................................... 370 Annex 21 Expenditure Prioritization ......................................... 371 Annex 22 Implementation and Supervision Plan (with Attachments): ... 377 Attachment 1 Implementation Schedule ................................. 385 Attachment 2 Implementation Responsibilities ................................. 388 Attachment 3 Abstract of Procurement Schedule ................................ 393 Attachment 4 IDA Supervision Inputs ................................. 399 Attachment 5 Monitorable Indicators of Development Impact ............ 401 Annex 23 Documents in Project Files .................. 407   Annex I Page 1 of 5 INDIA ORISSA WATER RESOURCES CONSOLIDATION PROJECT Letter of Development Policy (Letter of July 11, 1995 from Government of Orissa)   Annex 1 GOVERNMENT OF ORISSA Page 2 of 5 DEPARTMENT OF WATER RESOURCES maJor-Irrg(I)'mB09/95-16269 Dated 11th July, 1995 From: R.N.Das, Chief Secretary, Government of Orissa,Bhubaneswar. To: Mr. Heinz Vergin, Director, India Department, The World Bank, Washington, D.C. Dear Mr. Vergin, Orissa Water Resources Proiect - Policy Reform Proaram I am pleased to confirm the commitment of the Government of Orissa to improve management and development of the state's water resources, as per India's National Water Policy, through enhancing institutional capability of Orissa Department of Water Resources (D.O.W.R.). Structural improvement in all the functional areas of D.O.W.R. will be carried out in order to enhance efficiency of public expenditures in the water sector by establishing multi-sector water planning, requisite prioritisation in implementation of water sector projects and providing more productive irrigation services from the existing projects with the objective of improving agriculture productivity in the state. The State Government is also committed to develop an efficient cost recovery mechanism, and to involve the beneficiaries in operation and maintenance, thereby ensuring sustainability of the Irrigation systems through adequate maintenance. The State Government proposes to achieve the above objectives through implementation of the Water Resources Consolidation Project, with the World Bank assistance. In this context, the Government of Orissa has approved a Policy Reform Program as detailed in the attached matrix, which also shows the implementa-ion schedule for completing the proposed policy reforms. The State Government has already taken a few significant steps towards implementing the proposed reforms, during the course of project preparation for W.R.C.P. A State Water Policy has been established in line with the National Water Policy of 1987. State Water Resources Board has been established with representatives of key water using Departments of the state to ensure optimal use of the state's water resources for various uses. A standing committee has been constituted to oversee the basin planning of water resources and environmental impact assessment. A new R&R policy has been introduced in the state. A Water Services Cost and Charges Committee has been set up by the State Government for review of water charges on annual basis to enhance the water rates for all services in different sectors. The State Government has also agreed in principle to reorganise the Orissa Irrigation Department, which has been renamed as Water Resources Department, by creating specialised staff and line units for water planning, designs, operation and maintenance and project construction. The state has decided to adopt a policy of expenditure prioritisation in the water sector, by giving first priority to full funding of O&M of existing facilities, followed by rehabilitation and modernisation of Irrigation systems, and thereafter to viable investments to complete ongoing schemes expeditiously. With regards, Attachment Yours Sincerely IR.> N  Annex 1 Page 3 of 5 Attachment ORISSA WATER RESOURCES CONSOLIDATION PROJECT PROPOSED POLICY REFORMS Policy Issue Proposed Actions Current Status and Time Schedule 1. Institutional - Reformulation of Irrigation Reformulation has been Capability Department as Department done on March 31,1994 Enhancement of Water Resources (DOWR) - Reorganisation of DOWR Reorganisation agreed along functional responsibility by State Government in and decentralised lines by principle. creating specialised staff and line units for water plannning, designs, operation and maintenance and project construction; - issue of government orders orders to be issued by for reorganisation; July 15, 1995. * completing transfers /placement to be completed by of officials in the organised July 30, 1995. set up; f ormulating position and job to be completed by descriptions for each functionary; July 31, 1995. - approval of a policy on delegati- to be approved by on of authority for selection, September 30, 1995. placement and discipline to appropriate Unit heads; providing staff benefits and orders to be issued by incentives for work in specialised September 30, 1995. fields to provide continuity and expertise build up; - improve management procedures to be introduced by in planning,financing &monitoring March 31, 1996. by introducing program & budget development, program tracking, cost accounting; - establishing management to be established by information system (MIS) June 30, 1996. constituting State Project Moni- to be constituted by toring Committee for WRCP July 15, 1995.  Annex 1 Page 4 of 5 Po,icy Issue Proposed Actions Current Status and Time Schedule 2. Water Resources - establishment of State Water established in October Policy & Planning Resources Board; 1993 under the Chairmanship of State Chief Secretary. - declaration of State notified on April 25,94. Water Policy; - establish Water Planning to be established by Organisation; July 31, 1995. Basin Planning - preliminary basin study of all completed for five river eleven river basins of the state;basins covering about 70% of the state, to be completed for two basins by June 1996; for two basins by June 1997 for two basins by June 1998. - secondary study with to complete for one hydrologic, economic and basin by June 1 995; environmental models; one basin by June 1 996; three basins by June 1997; two basins by June 1998; & four basins by June 1999. - basin wise final study of to complete for five all basins: basins by June 1 997; two t5asins by June 1998 & four basins by Dec.1999. - integrated state river basin to complete by plan: January 2002. 3. Water Services - assign full funding for works from financial year component of O&M as first 1995-1996. charge in DOWR annual budget; 2  Annex 1 Page 5 of 5 Policy Issue Proposed Actions Current Status and Time Schedule 4. Cost Recovery - constitute Water Services constituted on Costs & charges committee January 3, 1995. for annual review of water charges for all uses; - enhance water charges from enhancement will be done all sectors for all services to in phases as follows; recover full O&M cost; by March 1 996 - to recover 50% of. full O&M cost; by March,1998 - to recover 80% of full O&M cost and by March,2000 - to recover full O&M cost. 5. Beneficiary - issue of government Policy to be issued by September 30, participation and declaration along with model 1995. turn over to Bye-laws and Memoranda of farmers. Understanding. 6. Resettlement & - declaration of State Policy on Declared and effective from Rehabilitation. R&R of Project Affected September 1, 1994. Persons; - establishing R&R Directorate directorate established in March with full staff; 1 994, has been fully staffed by March 31,1995. 7. Environment - establish Environment units to be established by July 31, Protection in DOWR; 1995. - placement of full staff in units; to be completed by Sept. 30, 1995. 3  - 6 - Annex 2 Page 1 of 9 INDIA ORISSA WATER RESOURCES CONSOLIDATION PROJECT WATER POLICY FOR ORISSA' ' Source: Government of Orissa. Issued in November 1994.   - 7 - Annex 2 Page 2 of 9 GOVERNMENT OF ORISSA STATE WATER POLICY OF ORISSA DEPATMENT OF WATER RESOURCES   -8- Annex 2 Page 3 of 9 STATE WATER POLICY OF ORISSA PREAMBLE - The National Water Policy of 1987 recognizes that water is a prime natural resource and a basic need of human life. The planning and development of water and related land resources of the State shall be directed to improve in the quality of life as well as contAibutions -to environmental quality. In the State of Orissa, the principles enunciated in the National Water Policy shall be followed. In view of the relatively low status of water Lesources development and majority of the population being poverty strickern, it has become necessary to address the issues relevant to the State within the framework of national and global water policy through a State Water Policy. While significant expansion of the area under irrigated agriculture has been achieved during the past four and half decades, further expansion of irrigation and its sustainability would be constrained by several complex and inter-related factors in future. The deterioration of existing irrigation systems and the problems of waterlogging and salinization are areas of deep concern for the water planners. In the United Nations Water Conference hold in 1977 at Mardel Plata, it 'was agreed that accelerated, development and orderly management of water resources are prerequisites in- improving the economic and social conditions of human kind. Specific and concerted action are required to find solutions to various water problems and these need to be applied at national, regional and international levels in order to ensure better quality of life of all people in the Planet. Tfie conference I aid down stress on sustainable development of all sectors, which conseLrves land, water, plant and animal genetic resources, and is 'environmentally non-degrading, technically appropriate, economically viable and socially acceptable". OBJECTIVES Within the broad framework of the National Water Plan objectives, the specific objectives of-Ori-ssa are (i) Development of water resources available within the category of utilisable resource to the maximum possible extent for economic development, especially by efficient use of water for agriculture. (ii) Maxinum econonic benefits through judicioius conjunctive use of both surface and groundwater. (iii) Judicious allocation of water resource to different sectors with d-inking water odcupyi'ng top-priority in order to satisfy the basic need of the. people.  Annex 2 -9- Page 4 of 9 2 (iv) Promotion of equity, social justice and balance regional development. Special efforts should be made to extend the benefits of water use primarily by extending irrigation facilities to econonically backward areas and chronically drought prone areas. (v) Provision of adequate watez for drinking and industrial use. (vi) Provision of flood protection and drainage facilities. (vii) Regulation of land use in flood and drainage prone areas. (viii) Maintenance of water quality to internationally acceptable standards. (ix) Optimization of economic benefits by multipurpose use of water for hydropower generation. (x) PreservAtion and enhancement of fisheries and wild life. (xi) Provision Of social jvustice and adhquate rehabilitation measures for persons displaced or adversely affected by project.construction so that project affected persons are as well or better off than that of previous situation. (-xii) Planning procesRv and mechahisns should alm at resoldtion of - co0n,flcts .bptveen u.sers within and between inter-State river basins. (xiii) Promotion of citizen participation in all aspects of water planning and management. - (xiv) Handing over of operation and maintenance of irrigation systems to the users in due course. (xv) Eoononic, firancial -and p'hysIcal sustainability thorough. effective operation, maintenance and management and also based on the principle that the beneficiaries pay for the services provided. (Xvi) Observance of safety standards in respect of storage dams and other water related structures. IMPLEMENTATICN The implementation of Orissa's Water Resources Policy will be carried out by the Department of Water Resources (DOWR). The Water Resources Board (WRB), formed in October 1993, is the highest co-ordinating body on water planning and allocation between sectors and provides guidance to the DOWR. Representation on the Board covers the key Water using Departments of Government (inter alia secretaries of Water Resources, Urban Development, Industry, Rural Development, Agriculture, Energy, Environment, Fisheries, Panchayati Raj).  Annex 2 -10- Page 5 of 9 .3 WRB will be assisted by DOWR's Water Planning Organisation (WPO) whose Director is the Member-Secretary of the WRB. The DOWR would make proper allocation of water to different users and to protect water from deterioration from established standard and upsetting ecological balance. The Government through appropriate agencies shall provide .aeans and measures to manage beneficially all aspects of water development' including timely control of ground-water levels, restriction or treatment of wastes and altered inflows, maintenance of appropriate water quality, preservation of the environmental and ecological balance, forecasting of supplies and_ directive of individual project operation to meet developmental goals and policies. Actions needed for sustainable development of water. resources of the state are - (a) Assessment of water resources (b) Water use efficiency (c) Environment health and pollution control Cd) Policy, Planning and management (e) Hazard management (f) Public information, education, training and research (g) Regional co-operation The action needed for the intensification and improvement of water development in agriculture are s-- (.a) IIrproving existing irrigation with the objectives of raising productivity with minimum cost and delay, improving the efficiency Sof water use and preventing waste and degradation of water resources, (b) Developing efficient new irrigation for further expansion of production. (c) Improving and extending rainfed agriculture and improvinglive-stock production, through both better soil moisture management and opening up of new land through the provision of water supplies to human settlements and live-stock. (d) Protective agricultural land against the harmful effects of flooding and waterlogging, and where necessary.its reclamation; (e) Introducing,or Expanding fish rearing in conjunction with overall rural development activities. (f) Scheduling irrigation supply compatible with the varying cropping pattern as per policy decision of State Government.  Annex 2 - 11 - Page 6 of 9 4 FRAMEVWORK WATER RESOURCES PLAN The Water Planning Organisation (WPO) will prepare a framework of water resources plan for the approval of the WRB. The purpose of the plan is to assess the full water resources development option fdr the whole State. The plan will be based on the basin studies carried out by Water Planning Organisation in keeping with the water policy of the State. This plan will set the framework for future planning activities of the DOWR. The plan will identify the needs for inter-basin transfer of water from water surplus to water-deficit areas of the ttate. Transfer of water from one basin to another basin is- to be considered only after fixing the planning time horizone as the time wherein the ultimate demand of donor basin is fully met and zero incremental demand is attained. MULTIPURPOSE RIVER BASIN PLAN The DOWR apart from being the sole owner of the water resources is also a principal user in the agriculture sector. multipurpose river basin plans are to be prepared to guide decisions about future water development and basin management. The specific objective of the plan for multisectoral river basin water development are- (i) to assess the water resources within the basin in light of its present and future uses; (ii) to manage all basin water resources in a manner to secure maximum socio-economic benefits and least environmental degradation within the resource constraints. It should satisfy first of all the minimum nutritional per capita requirement (NPR) in the basin and poverty. The plan should also increase agricultural productivity as well as generate employment opportunity; and. (iii) to plan project implementation programmes in accord- ance with legislation and regulations and on a schedule which can meet the changing future water needs. The river basin plans will also include the examination of water quality and environmental consequences of water use. Particular attention may be given to control the groundwater quality. The treatment of hazardous components of industrial wastes, sewage treatment, use of fertilizers and pesticides in agriculture and optimization of the use of water by recycling and effluent treatment of industrial water are to be taken care of through necessary legislation and public awareness. Water quality due to saline water intrusion into the coastal aquifers, soil conservation, afforestation measures to reduce soil loss on the upper reaches of the river and reducing the silting of the surface water impoundments will be considered in the basin plan.  Annex 2 - 12- Page 7 of 9 5 The flood control and drainage components shall also be included in the basin plans in order to identify the extent and intensity of these problems along with the necessary measures to mitigate their effects. On completion, each river basin plan will be submitted to WRB for approval. These plans will serve as the basis for the State Water Plan. STATE WATER PLAN The ultimate goal of the State's Water Policy is&to develop a State Water Plan which will be a blueprint for all water development in the State. The plan should provide appropriate use of water resources of the State for drinking water, municipal and industrial use, power, irrigation, flood mitigation, pisciculture and also recreation wherever possible. The preservation and enhancement of the quality of environment as well as maintenance of ecological, balance should be a prime consideration in its formulation. This would be a dynamic plan which would evolve overtime, incorporating new information, new technologies, new perceptions and changing objectives and priorities. The initial plan will be based upon the Framework Plan updated with the Integrated River Basin Plans. The Plan should be updated and submitted to the Water Resources Board from -time to time. The State Plan would then serve as the official document upon which investment portfolios and management decisions should be based. DROUGHT MANAGEMENT PLAN Due to the vagaries of rainfall drought are a permanent climatic feature in Orissa. Hence, it has become necessary to formulate Drought Management Plan for each of the river basin as a part of the river basin plan. The plan should include- (a).,..an integrated and comprehensive strategy for the -management of land and water for sustainable agricultural development under water scarcity -conditions; (b) appropriate land and water use policies and plans for economic development of drought prone areas ensuring that they remained compatible with prevailing socio-economic conditions and the environment; (c) effective drought preparedness measures with special emphasis on environmental protection and improving community resilience; (d) plans to release/regulate regenerated water flow in rivers and drainages flowing through the irrigation command areas for facilitating its use in the tail end areas by recycling.  - 13 - Annex 2 Page 8 of 9 6 COMPUTERISED DATABASE AND INF-ORMATION SYSTEM The Water Planning Organisation shall maintain a centrally located computerised data bank to store all data relating to meteorology, hydrology, surface and groundwater availability, quality, actual water use and estimated future demands for water. T'he data will be updated from time to time and made available to other agencies. This organisation should also have access to the relevant data collected and stored by other state and central agencies. This computerised databAse will play a key role in effective water resource planning and management. ENVIRONMENTAL MANAGEMENT PLAN The lack of environmental consideration in -the planning of water resources projects may lead to severe adverse impacts resulting in ecological damage and degradation. Environmental management plans in respect of all likely adverse impacto re necessary to be prepared in advance at the planning_stage cn-dalit should become an integral part of the master plan of the river basin planning of the State. The environmental management'plans. should include rehabilitation measures, afforestation, relocation of historical/cultural monuments, relocation of sanctuaries and wild life habitats getting affected during the project, remedial measures to mitigate the effects of waterlogging and salinity. Due import>ce should also be given to watershed management as an integral part of environpmental management in order to control sediment inflows to the reservoir. Also the DOWR will create an Environmental Cell in Water Planning Organisation with a view to integrating various environmental aspects with River Basin Planning. This Cell would also play a co-ordinating role between various Government bodies connected. with environmental issues and it would also identify/pursue sectoral and regional environmental issues concerning Basin Planning. Regionil assessment is necessary when a number of developmental activities are considered in localised geographical' area whereas sectoral assessment is necessary when multiple projects are planned in the same sector. The Environmental Cell will also undertake studies of various water related works for Environmental Assessment (EA) and submit report through Water Planning Organisation on Environmental Impact (EI) to WIRB for review and approval. Another unit of Environmental Cell may be created under DOWR's Ptoject Forrnulation Directorate which will tackle project/Sub-projectgpif~cific Environmental Assessment '(EA) for water resources projects. It will formulate specific Environmental Assessment (EA) assistance for all new projects and give guidelines for inter-agency co-ordination for environmental clearance of projects. FLOOD AND DRAItNAGE MANAGEMENT - FLOOD MANAGEMENT The scientific control and utilisation of flood water is an essential part of water resources. development planning. Flood management is divided in two parts  14- Annex 2 Page 9 of 9 7 (i) mitigation of flood damages; (ii) utilisation of flood water for beneficial uses. Flood control measures are mainly of two types, namely, structural and non-structural. Structural measures include reservoirs, embankments, levees, channel improvement, etc. Non- structural measures include flood plain zoning, watershed management, flood forecasting and flood warning. DRAINAGE MANAGEMENT Drainage of surplus water from-waterlogged areas and other stagnant, water bodies is a major problem in river basin planning. Waterlogging is detrimental to crop production and leads to salinization of soiis, which renders them unfit for cultivation. Sustained waterlogging *salsoanenvironmental and health hazard. Hence, proper preventive and remedial measures are necessary and they should be incorporated in the River Basin Master Plan. It should indicate appropriate preventive measures in areas where such conditions have not yet developed. Lining of water distribution system, efficient on-farm water management, proper maintenance of surface drainage system and conjunctive use of surface and groundwater can also reduce the drainage problem to a great extent. Proper irrigation scheouling should be resorted to as far as possible for controlling waterloqging in the command areas. The DOWR should formulate suitable Flood and Drainage plan for each basin. OG,P- MP- E.T.S.(W.R.) 1 -1000.--15-9-1994   - 15 - Annex 3 Page I of 6 INDIA ORISSA WATER RESOURCES CONSOLIDATION PROJECT Institutional Reorganization And Strengthening Introduction 1. Based on an Institutional Study undertaken by DOWR (formerly known as the Orissa Irrigation Department1) as part of its preparation for the WRCP, the decision has been taken by GOO to fundamentally restructure the department into a specialized state water agency. The new organizational structure of DOWR is contained in the organization charts attached to this annex. Figure 1 contains the overall structure, with detailing by sub-unit in the subsequent Figures. 2. The overall objectives of the reorganization are to: e broaden DOWR's responsibilities to include technical responsibility for basin planning, and create a state Water Resources Board for multi-sectoral decisions regarding water planning and allocation; - create functionally specialized line units for each key functional responsibility of the new DOWR (water planning, project planning and formulation, design and research, water services (i.e. O&M), hydrometry, etc.); * create specialized corporate management and personnel management/training capabilities (management information systems, programming and budgeting, monitoring and evaluation, procurement, public information, personnel management, and training); * decentralize management along river basin lines including substantial transfer of decision making to field managers (field activities would now be implemented under four basin region managers at Chief Engineer level); and * create institutional capability for implementing water sector related R&R and environmental management. 'IThe Orissa Irrigation Department (OID), renamed as Departmnent of Water Resources (DOWR) in March 1994, has been the lead agency for water resources development in the state, responsible for planning, developing and managing the states water resources for irrigation, bulk water supply, drinage and flood control, with direct responsibility for implementation of Major and Medium Irigation projects, and their operation and maintenance. Implementation of Minor irrigation schemes and their operation and maintenance as well as Ground Water exploitation has been the responsibility of the Rural Development Department, though the staff belongs to the cadre of Irrigation Department. Command Area Development (CAD) Department of the State has been responsible for multi-disciplinary activities of irrigated agriculture in the selected command areas, below the outlet. Water resource development for Hydro-power is the responsibility of the State Energy Department The government owned Orissa Construction Corporation (OCC) carries out major works like tunneling, barrages and manufacture of gates as a public sector agency. Water and Land Management Ilstitute (WALMI) provides irrigation sector tsining to officers and staff of irrigation department and also to some extent of agriculture department.  - 16 - Annex 3 Page 2 of 6 This reorganization, currently underway2, will be accompanied by strengthening of capabilities in all management units of the new DOWR through provision of staff training, consultancy assistance, and appropriate equipment, vehicles and facilities. Requirements by management unit are contained in the cost tables at Annex 18. Need for Institutional Reform 3. The present organizational structure of OID/DOWR has numerous lines of authority and it's functional capabilities are diffused throughout the organization with overlapping technical and geographical jurisdictions: e.g. eight Chief Engineers have both construction and maintenance responsibilities with no specific unit for setting standards and monitoring program performance. Because of the frequent transfers of technical personnel without regard to functional expertise there is marked lack of specialization to meet the challenges of a technological world. A comprehensive institutional study was conducted by OID with assistance from consultants from the Snowy Mountain Engineering Corporation (SMEC) of Australia, and local advisors in administration with Indian experience. The study, which was completed in October 1993, concluded that "the department's present institutional arrangements can not adequately embrace modem management requirements which include devolution of decision making authority to the lowest possible level, personnel development, specialization and career structure for all staff'. Elements of Reorganized Institutional Structure of DOWR 4. DOWR will continue to be responsible for planning, developing and managing the state's water resources for irrigation, bulk water supply, drainage and flood control, with direct responsibility for construction, operation and management of major and medium irrigation projects. The DOWR will have an expanded role of: (i) advising the newly formed Water Resources Board; (ii) developing and maintaining a state water plan; (iii) involving farmers in irrigation system operation and maintenance decisions; (iv) turning over certain responsibilities of O&M of irrigation systems to farmers; (v) strengthening environmental management; (vi) managing a new resettlement and economic rehabilitation structure for project affected persons; and (vii) maintaining a State Water Resources Data Center. 5. The reorganization will be implemented through redeployment of the existing staff to new defined positions, with minimal fresh recruitment. New recruitment will be limited to a few specialist disciplines where staff expertise is currently not available or in insufficient numbers. Principally, this is in the areas of R&R, environment, and basin planning. Discrete needs for individuals in such areas as economics, programming and budgeting, computer related skills and other areas as needed would also be filled. Staff relocation, and the subsequent drive to create the necessary specialized skills, will require a major training program, fully costed under the project. 2 The reorganization is ongoing, and in terms of departmental restructuring was largely completed by August/September 1995. Actions already completed include: (i) broadening the mandate and responsibilities of DOWR to include planning for all uses of water; (ii) creation of the Water Resources Board (Nov. 1993); (iii) creation of the R&R Directorate (Mar. 1994), and (iv) designation, in advance of the formal restructuring, of task heads for the major functional activities of DOWR. Issuance of Govenment Orders putting into effect the remaining organizational details of DOWR following the organlization charts attached, was completed, as well as posting of key staff, prior to negotiations.  Annex 3 Page 3 of 6 Management and Organizational Principles 6. The Engineer in Chief (EIC) DOWR will be the singular head of the department and will be in overall charge of all activities in the Department. He will be responsible for mission, goals and objectives for the department and establishing and issuing policies, procedures and standards for efficient organizational performance, delegating authority and assigning responsibility to Chief Engineers and other staff and periodical review of organizational performance. He will he the principal technical advisor to the state government in all matters related to water resources development in the state. He will be assisted by the Additional EIC, Planning and Design, and other functional Chief Engineers in the office, and in the field. The EIC will delegate authority and assign responsibilities to these officials consistent with the DOWR Code. 7. In accordance with the principle of separating the DOWR operating units from regulatory functions, under the reorganized structure, DOWR functions would be carried out by "Staff Offices" and "Line Units". The Staff Offices would have regulatory and advisory functions and the Line Units would be responsible for operational activities in various institutional areas in the field. STAFF OFFICES 8. The following specialist Staff Offices will be established under DOWR: (i) Chief Engineer. Project Planning and Formulation Responsible for preparing feasibility reports, investigations and final project reports of all major projects including project planning in all it's aspects, economic analysis, socio economic analysis, environmental assessment and clearance, and coordinating planning activities with Basin and other Chief Engineers. (ii) Chief Engineer. Designs and Research Responsible for designs of Civil, Mechanical and Electrical components of approved projects, preparation of detailed construction specifications and design reports, preparation of designer's operating criteria, detailed rules and regulations for dam safety, conducting hydraulic and other applied research, developing reviewing and updating construction specifications, policies and procedures as well standards for tenders, claims, and other contracting aspects and quality control procedures and standards. (iii) Chief Engineer and Director. WALMI Responsible for training staff of DOWR, Agriculture Department, and farmers, developing training strategies, carrying out studies on pilot projects of irrigated agriculture, conducting applied research on completed schemes. (iv) Chief Engineer. Water Planning Organization  - 18 - Annex 3 Page 4 of 6 Preparation of basin plans of water resources development for all uses for individual basins and the State Water Resources master plan, environmental impact assessment of water development in the river basins, providing technical advice/assistance to the State Water Resources Board, providing technical support to EIC and the state government in interstate water discussions and drafting proposed agreements. (v) Chief Engineer. Water Services Responsible for determining standards for operation and maintenance, establishing policies and procedures for effective operation and maintenance of irrigation and flood protection works, and for flood forecasting and flood mitigation activities. Approving operation plans of irrigation systems. Responsible for assisting the Water Rates Cost Recovery Committee to establish and update the water rates, setting standards for irrigation extension services, supporting OFD works, farmers participation, and providing guidance and technical assistance to the Basin Managers. (vi) Chief Engineer. Mechanical Responsible for procurement of construction and O&M machinery, equipment and spares, and it's maintenance, establishing and ensuring standards and procedures for quality control in upkeep and operation of machinery including preventive maintenance, preparation and review of designs, specifications, tender documents of mechanical and electrical components of the irrigation and flood control projects, including O&M activities, providing technical assistance to the Basin Managers and construction Chief Engineers in respect of Mechanical and Electrical functions of, their projects. (vii) Director, Personnel Responsible for human resource development activities including recruitment, posting, transfers, promotion, retirement, training, inquiries, removal and temporary employment. Responsible for assistance in developing, reviewing and updating establishment policies and rules, developing and maintaining service records of all personnel. Responsible for providing authorized information to public and maintaining public relations. (viii) Director. Monitoring. Evaluation. Programme. Budget and Accounts Responsible for monitoring and evaluation works of all projects and sending periodical reports to the state government, developing and maintaining Management Information System. Consolidation of all budget requests from various units, preparing annual Program and Budgets, cost accounting, allocation of funds to organizational units. Maintaining system of tracking expenditure to measure program progress, and corrective action when cost exceeds the estimates, and recommend fund transfer between projects. Preparing management reports.  - 19 - Annex 3 Page 5 of 6 (ix) Director. Procurement Unit Developing, reviewing and updating procurement policies, standardizing procurement documents, and procedures for all organizational units. Providing liaison and training in World Bank related procurement activities. Procurement of equipment and material for headquarters offices and it's storage. Disposal of surplus equipment and material. LINE UNITS 9. The following Line Units will be established in the field, reporting directly to the EIC, DOWR. These units will maintain close liaison with the functional units (or "staff offices") described above: (i) Basin Region Manager (Four Basins, each headed by a Chief Engineer) Responsible for developing goals and objectives for irrigation development and water use in the basin. Responsible for operation and maintenance, water user associations and Farmer Organization and Turnover program in the command areas of the basin. Responsible for construction of medium projects in the basin, including surveys and investigations of projects (except those entrusted to the C.E. Project Planning and Formulation) as well as designs (except those entrusted to C.E. Designs and Research). Procurement for works and machinery, equipment and materials required for construction and O&M in the basin. Responsible for ensuring sound resettlement and rehabilitation of project affected persons and environmental impact assessment and impact mitigation. Also responsible for establishing basin advisory comrnmittees and coordination with other DOWR units and government agencies with regard to all matters connected with water resources development and use. (ii) Chief Engineer Projects (four Chief Engineers) Chief Engineer Units for specified major projects will be maintained for (a) Putteru Project, (b) Indravati Project, (c) Bengali Project and (d) Naraj Project. These units would be subject to change depending on the stage of construction of the project. The Chief Engineer Project will be responsible for construction planning, procurement of machinery, equipment and materials, sanctioning of estimates, finalizing of contracts, land acquisition, rehabilitation and resettlement, environment impact and it's mitigation, construction supervision, quality control, progress monitoring and reporting. Policy and Procedural Reforms in Organization Management 10. To achieve institutional upgrading of DOWR, the following policy reforms have been agreed and would be implemented under the project in the areas of personnel and management procedures: (a) developing functional descriptions for each unit of the organization and each sub- unit, including the support officials in the unit offices;  - 20 - Annex 3 Page 6 of 6 (b) prescribing for all positions, the qualifications for filling that position, in particular the specialized units (Job Descriptions) with regard to qualifications, technical skills and required number of years of experience in the field related to the particular position (specially), and the training needs; (c) developing a policy of promotion to achieve some form of continuity in top management positions, i.e. EIC and Chief Engineers; (d) approval of a policy on staff benefits and incentives, including training, for work in specialized fields to provide continuity and expertise build up; (e) approval of a policy on delegation of authority for selection, placement and discipline to appropriate unit heads; (f) improving management procedures in planning, financing and monitoring through program and budget development, program tracking and cost accounting; and (g) developing a Management Information System.  OMUA WATER NIJtS COISOUJATON CECT ORISSA W.R.C.P PROPOSED NEW ORGANISATIONAL STRUCTURE OR DOWR PMrINVAL SECREIAR AOI~ELSECETD ENCIfM-cMII-C | | RECTOR *R P ENWER-IN-CHIEr ~ ~ ~ [OW C-W-CIE WATR SOUREMS | ENGINEER-01-CHIEF RR PLANNING & DESIGN OKC-10*--l IREIORI BUECTOR CRC ENCNE CIFECRE C1 NO cmIEr ENwANER C.E.. A OKCIro CHEF ENGRER CHIiEF ENGMIEE P NIOF"WNG PERSONINEL PREECT PIAWUC DESIO & W A L H R EVALUATION, K fRIUAADON RESARCH OAIA CNIRE ORGAHSAI1ON PROCRAMME. EtJDGEI T _ NRECRU ACCO UNTS | PROGRAMM E, BASIN MANACER(CE) BASIN MANACEEC(CE) BASIl MAJIAGER(CE) BASINI MANAGER(CE) CHUE ENGINER ClgEr ENGINEER ChEr EIWCNEER CHIEF ENGINEER lb rt OQ rt : KOLAB,VANSACHARA & LOWER MHMIADI & UPERRAHANADI BRAHAM, BAIhARAM I POTTERU PROJECI UPPER RIAVAII RENCALI PROJECT NARAJ& & l P NAGAVALI BASINS RUSKULYA BASINS BASIN SUBERNAREKHA & PROJCI I OIrOTPA.A PROJECI X BURNABALANGA BASINS I_ IIII)I_ __I_I_O___ _ -h I-.  ORISSA 'W.R.C.P DIRECTOR | DEPUTY DIRECTO DEPUTY DIRECTOR I PROCUREMENT PROCUREMENT CIM2L WORKS MACHINERIES & EOUJIPMEN ts ABSTRACT 1. SE- I no. 2. EE- 2 nos. o rt~ oq x P 0 S rt _J~-  ORISSA W-.RC.P DIRECTOR MONITORING & EVALUATION. PROGRAMME. BUDGET & ACCOUNTS M. .S.ORGANISAnON aPERFORMANCE & ACCOUJNTS N ABSTRAC 1. SE- I no. 2. EE- 3 nos. 11 rtrt 0 M ~ rt 00 rt -4  -24- Annex 3 Attachment 1 Page 4 of 17 0 c u ec c U U U a~~~~~~~~~~~~~~~4 a - (o Ia~~~~~~~L 0.~ ~ i z I 0 _