The World Bank Rural Water Supply and Sanitation Project for Low Income States (P132173) REPORT NO.: RES38410 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF RURAL WATER SUPPLY AND SANITATION PROJECT FOR LOW INCOME STATES APPROVED ON DECEMBER 30, 2013 TO 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: Xavier Chauvot De Beauchene, Mariappa Kullappa The World Bank Rural Water Supply and Sanitation Project for Low Income States (P132173) ABBREVIATIONS AND ACRONYMS EMP Environmental Management Plan MDWS Ministry of Drinking Water and Sanitation MVS Multi Village Scheme O&M Operation and Management OP Operational Policy PDO Project Development Objective PMU Project Management Unit RF Result Framework US$ United Sates Dollars XDR Standard Drawing Rights The World Bank Rural Water Supply and Sanitation Project for Low Income States (P132173) BASIC DATA Product Information Project ID Financing Instrument P132173 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 30-Dec-2013 31-Mar-2020 Organizations Borrower Responsible Agency Ministry of Jal Shakti, Department of Drinking Water and India Sanitation Project Development Objective (PDO) Original PDO The project development objective is to improve piped water supply and sanitation services for selected rural communities in the target states through decentralized delivery systems and to increase the capacity of the Participating States to respond promptly and effectively to an Eligible Crisis or Emergency. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-53450 30-Dec-2013 07-Feb-2014 08-Apr-2014 31-Mar-2020 250.91 143.70 56.70 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status The World Bank IN Rural Water Supply and Sanitation Project for Low Income States (P132173) 1. The Rural Water Supply and Sanitation Project for Low-Income States (the Project) has completed five years of implementation and has entered its final year in a protracted state of unsatisfactory progress. The Project was recently restructured to: (i) cancel a total of US$250 million of the IDA credit to reduce the total envelope to US$250 million; (ii) revise the Results Framework; and (iii) revise the disbursement projections accordingly. 2. With more than 80 percent of the implementation period elapsed, disbursements amount to US$ 143.7 million, or 72 percent1. The Project is currently implementing 1,077 drinking water schemes, of which about 700 are expected to be commissioned by the Project closing date of March 2020. The project has achieved 62 percent of its restructured PDO level target of 356,000 new piped household water connections. However, other PDO indicators including on O&M cost recovery, grey water management and 24/7 supply are lagging further behind. B. Rationale for restructuring. 3. This purpose of this project restructuring is to trigger the Bank’s Operational Policy on Physical Cultural Resources (OP 4.11). 4. The World Bank Inspection Panel registered two requests for inspection related to this project, one pertaining to the Bagbera Multi-Village Scheme (MVS) (registered on November 5, 2018) and the second pertaining to the Chhotagovindpur MVS (registered on December 18, 2018), in the same district in Jharkhand. On March 1, 2019, the Bank’s Board approved the Panel’s recommendation to investigate. The investigation is currently ongoing. In its Management Responses to the Requests for Inspection, Bank Management committed to trigger the Bank’s Operational Policy on Physical Cultural Resources (OP 4.11). 5. The line departments in the four Project States have finalized annexes to the state-level Environmental Assessments and Environmental Management Frameworks (EA-EMF) dedicated to Physical and Cultural Resources (PCR), which they have publicly disclosed on the websites of the line departments in English and in local languages. The PCR annex was approved by the Bank and disclosed on the Bank’s website. II. DESCRIPTION OF PROPOSED CHANGES A. Safeguards Policies. 1. This restructuring triggers OP 4.11 for the Project. 1 The original IDA Credit amount was XDR 325.1 million. XDR180.7m were cancelled. The remaining Credit amounts to XDR144.3m (about US$200m), of which XDR103.1m have been disbursed, i.e. 72%. The World Bank IN Rural Water Supply and Sanitation Project for Low Income States (P132173) III. SUMMARY OF CHANGES Changed Not Changed Safeguard Policies Triggered ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ EA category ✔ 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_COMPLIANCE_TABLE The World Bank IN Rural Water Supply and Sanitation Project for Low Income States (P132173) COMPLIANCE Safeguard Policies Safeguard Policies Triggered Current Proposed Environmental Assessment (OP) (BP 4.01) Yes Yes Performance Standards for Private Sector No No Activities OP/BP 4.03 Natural Habitats (OP) (BP 4.04) Yes Yes Forests (OP) (BP 4.36) Yes Yes Pest Management (OP 4.09) No No Physical Cultural Resources (OP) (BP 4.11) Yes Yes Indigenous Peoples (OP) (BP 4.10) Yes Yes Involuntary Resettlement (OP) (BP 4.12) No No Safety of Dams (OP) (BP 4.37) No No Projects on International Waterways (OP) (BP No No 7.50) Projects in Disputed Areas (OP) (BP 7.60) No No . Click here to enter text.