The World Bank IN Uttar Pradesh Water Sector Restructuring Project Phase 2 (P122770) REPORT NO.: RES40856 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF IN UTTAR PRADESH WATER SECTOR RESTRUCTURING PROJECT PHASE 2 APPROVED ON AUGUST 28, 2013 TO REPUBLIC OF INDIA WATER SOUTH ASIA Regional Vice President: Hartwig Schafer Country Director: Junaid Kamal Ahmad Regional Director: John A. Roome Practice Manager/Manager: Michael Haney Task Team Leader(s): IJsbrand Harko de Jong, Satya Priya LNU The World Bank IN Uttar Pradesh Water Sector Restructuring Project Phase 2 (P122770) ABBREVIATIONS AND ACRONYMS DEA Department of Economic Affairs GoUP Government of Uttar Pradesh PDO Project Development Objective UPID Uttar Pradesh Irrigation Department The World Bank IN Uttar Pradesh Water Sector Restructuring Project Phase 2 (P122770) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. BASIC DATA Product Information Project ID Financing Instrument P122770 Investment Project Financing Original EA Category Current EA Category Full Assessment (A) Full Assessment (A) Approval Date Current Closing Date 28-Aug-2013 31-Oct-2020 Organizations Borrower Responsible Agency Department of Economic Affairs, Ministry of Finance, Uttar Pradesh Irrigation Department, GoUP, Lucknow Government of India Project Development Objective (PDO) Original PDO The Project Development objectives are to strengthen the institutional and policy framework for integrated water resources management for the entire State and increase agricultural productivity and water productivity by supporting farmers in targeted irrigation areas. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-52980 28-Aug-2013 24-Oct-2013 10-Dec-2013 31-Oct-2020 325.00 174.42 124.47 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank IN Uttar Pradesh Water Sector Restructuring Project Phase 2 (P122770) Note to Task Teams: End of system generated content, document is editable from here. I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING At less than eight months before project closing, the physical progress in the civil works stands at 74% and disbursements at 58% (US$174 million). Close to 70% of the PDO Results Indicators have been achieved. With the construction season currently in full swing and with key consultancy assignments close to completion, the mission believes that the project can complete all project activities and disburse all remaining funds by the Project Closing Date of October 31, 2020. However, this requires that (i) UPID exercises leadership to ensure that decisive progress continues to be made in the implementation of civil works and of key consultancy contracts, and (ii) UPID urgently resolves the availability of adequate funds and timely payment of all contractors and consultants The project was restructured in March 2019. The restructuring helped reallocate funds away from subcomponents that had encountered accumulated delays or procedural obstacles, towards subcomponents that have a comparatively higher impact on achieving the PDO. As a result of the restructuring in March 2019, the World Bank received a request of USD 35 million partial cancellation by the DEA on 19 August 2019 due to exchange rate savings which was duly processed. In January 2020 mission, the Bank and UPID team again reassessed the overall financial requirements to complete all activities under the project. It was agreed that an additional partial cancellation of USD 20 million to be submitted to the Bank due to savings. As a result, the additional cancellation of USD 20 Million was approved by the GoUP on March 4, 2020 and a letter was sent by the GoUP to DEA. The World Bank received a formal request for USD 20 million partial cancellation by the DEA on March 12, 2020. A copy of request from the DEA is attached to process the partial cancellation of the loan. II. DESCRIPTION OF PROPOSED CHANGES No changes The World Bank IN Uttar Pradesh Water Sector Restructuring Project Phase 2 (P122770) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. III. SUMMARY OF CHANGES Changed Not Changed Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ The World Bank IN Uttar Pradesh Water Sector Restructuring Project Phase 2 (P122770) IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation LOAN Disburs IDA-52980- 213,892,584.6 199,520,741.9 RESTRUCTUR ing&Re XDR 14,371,842.69 12-Mar-2020 001 3 4 ING, COST paying SAVINGS OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-52980-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: Gd,Wk,Con,Non Con,Tr and OC 213,892,584.63 124,086,295.49 199,520,741.94 70.00 70.00 Total 213,892,584.63 124,086,295.49 199,520,741.94 .