The World Bank IN Uttar Pradesh Water Sector Restructuring Project Phase 2 (P122770) REPORT NO.: RES38349 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: IJsbrand Harko de Jong, Satya Priya LNU The World Bank IN Uttar Pradesh Water Sector Restructuring Project Phase 2 (P122770) ABBREVIATIONS AND ACRONYMS 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 360.00 158.91 176.60 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. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING The implementation of a number of important project activities are behind schedule. After 5.8 years of project implementation and with less than 1.3 years remaining by the project closing date, disbursement stands at 47%. The average attainment of the performance indicators is about 50%. Delayed activities include in particular those related to strengthening of water institutions under Component A and civil works under Component B is currently being fast tracked. The project was restructured in March 2019 after the cabinet of GoUP approved the revised EFC. The restructuring therefore revised the Results Framework and the PDO indicators to the amended financial allocation per component and to the reduced implementation period. The restructuring also 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 UPID decided to initiate a partial cancellation of USD 35 million due to exchange rate savings. This was approved by the GoUP on August 14, 2019 and a letter was sent by the GoUP to DEA. The World Bank received a formal request from USD 35 million partial cancellation by the DEA on 19 August 2019. A copy of request from the DEA is attached to process the partial cancellation of the loan. The World Bank IN Uttar Pradesh Water Sector Restructuring Project Phase 2 (P122770) I. DESCRIPTION OF PROPOSED CHANGES (i) No changes. II. 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 ✔ The World Bank IN Uttar Pradesh Water Sector Restructuring Project Phase 2 (P122770) Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ 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- 239,400,000.0 213,892,584.6 RESTRUCTUR ing&Re XDR 25,507,415.37 19-Aug-2019 001 0 3 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 239,400,000.00 112,859,916.65 213,892,584.63 70.00 70.00 Total 239,400,000.00 112,859,916.65 213,892,584.63 The World Bank IN Uttar Pradesh Water Sector Restructuring Project Phase 2 (P122770) .