The World Bank PK Sindh Water Sector Improvement Project Phase I (P084302) REPORT NO.: RES39551 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF PK SINDH WATER SECTOR IMPROVEMENT PROJECT PHASE I APPROVED ON SEPTEMBER 18, 2007 TO ISLAMIC REPUBLIC OF PAKISTAN Water Global Practice South Asia Region Regional Vice President: Hartwig Schafer Country Director: Patchamuthu Illangovan Regional Director: John Roome Practice Manager/Manager: Michael Haney Task Team Leader(s): Toru Konishi The World Bank PK Sindh Water Sector Improvement Project Phase I (P084302) ABBREVIATIONS AND ACRONYMS Pakistan Sindh Water Sector Improvement Phase 1 (P084302) AWB Area Water Board EAD Economic Affairs Division FO Farmers’ Organization GoSindh Government of Sindh I&D Irrigation and Drainage ID Irrigation Department IDA International Development Association IP Implementation Progress O&M Operations and Maintenance PDO Project Development Objective SIDA Sindh Irrigation and Drainage Authority SWACR Sindh Water and Agriculture Climate Resilience Project The World Bank PK Sindh Water Sector Improvement Project Phase I (P084302) 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 P084302 Investment Project Financing Original EA Category Current EA Category Full Assessment (A) Full Assessment (A) Approval Date Current Closing Date 18-Sep-2007 31-Dec-2019 Organizations Borrower Responsible Agency Islamic Republic of Pakistan Sindh Irrigation and Drainage Authority Project Development Objective (PDO) Original PDO The overarching project objective is to improve the efficiency and effectiveness of irrigation water distribution in three AWBs (Ghotlu, Nara and Left Bank), particularly with respect to measures of reliability, equity and user satisfaction. This would be achieved by: (a) deepening and broadening the institutional reforms that are already underway in Sindh; (b) improving the irrigation system in a systematic way covering key hydraulic infrastructure, main and branch canals, and distributaries and minors; and (c) enhancing long-term sustainability o f irrigation system through participatory irrigation management and developing institutions for improving operation and maintenance of the system and cost recovery. The improved water management would lead to increased agricultural production, employment and incomes over some about 1.8 million ha or more than 30 percent o f the irrigated area in Sindh, and one of the poorest regions o f the country. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-55560 16-Dec-2014 11-Mar-2015 07-May-2015 31-Dec-2019 138.00 109.40 20.14 The World Bank PK Sindh Water Sector Improvement Project Phase I (P084302) IDA-43580 18-Sep-2007 05-Oct-2007 26-Dec-2007 28-Feb-2015 145.00 147.58 0 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No Note to Task Teams: End of system generated content, document is editable from here. I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. The proposed restructuring seeks an extension of closing date of the Additional Financing to the Pakistan – Sindh Water Sector Improvement Phase 1 (P084302, Credit Number 5556-PK of SDR 93.1 million) from December 31, 2019 to October 31, 2020 (10 months), along with the associated minor adjustment to the project results framework. The extension will apply only to Credit No. 5556-PK the Additional Project (the original Credit Number 43580-PK closed on May 9, 2018). The proposed extension will represent a cumulative 22 months of extension of Credit No. 5556-PK. Background 2. The Project Development Objective (PDO) is to improve the efficiency and effectiveness of irrigation water distribution in Ghotki Area Water Board (AWB), Nara AWB, and Left Bank AWB, all in the Province of Sindh, particularly with respect to measures of reliability, equity and user satisfaction. The Project consists of the following five components: (a) Community Development and Capacity Building, (b) Rehabilitation and Improvement of Irrigation and Drainage Systems, (c) Management Plan for Major Irrigation and Drainage Infrastructure, (d) Monitoring and Evaluation of Project Impact and Environmental Management Plan, and (e) Project Coordination, Monitoring, Technical Assistance and Training. The approved Project amount is US$283.0 million equivalent for which the International Development Association (IDA) is financing 100 percent. The GoSindh assigned the Sindh Irrigation and Drainage Authority (SIDA) as the execution agency for the Project. The current closing date of the Project is December 31, 2019, and as of November 21, 2019, the overall disbursement reached approximately US$256.19 million (about 93 percent of the IDA committed). The Economic Affairs Division (EAD) of the Ministry of Finance, Government of Pakistan, in its letter of November 29, 2019 requested the Bank to extend the project closing date to October 31, 2020. Project Status 3. The current progress towards achievement of PDO and overall implementation progress (IP) ratings are MS (Moderately Satisfactory) and S (Satisfactory) respectively. Civil works undertaken under Component B: Rehabilitation and Improvement of Irrigation and Drainage System in the project areas are virtually completed. The key dimensions of the PDO through the key performance indicators (efficiency, reliability, equity, and user satisfaction) have been substantially met, and the project has played a catalytic role in promoting user participation in irrigation management. The World Bank PK Sindh Water Sector Improvement Project Phase I (P084302) 4. Component C has contributed significantly to the successful formulation and preparation of the Sindh Barrages Improvement Project (P131324, approved on June 19, 2015) and an additional financing to Sindh Barrages Improvement Project (P162117, approved on May 25, 2018) by financing the feasibility studies of the barrages (Guddu, Sukkur and Kotri) as well as preparation of the provincial master plan for drainage in the left bank of the Indus river and designing measure for improvement of the Indus delta and coastal zone. Recently, the GoSindh has started preparation for a follow-on project, Sindh Water and Agriculture Climate Resilience Project - SWACR (P167596). 5. Current ratings for procurement, financial management, the overall safeguards are MS (moderately satisfactory). Compensation for the resettled households resulting from difficulties has now been completed and there are no pending issues. Rationale for Restructuring 6. The rationale for the proposed extension is to provide the GoSindh adequate time to complete preparation for the follow-on project (SWACR) and to develop a revised institutional reform plan for the irrigation and water resources sector to be supported under SWACR. 7. Over the last 12 months, the GoSindh has undertaken a series of initiatives to reengage the institutional and policy reform in the irrigation sector to address water challenges. The GoSindh has initiated the process of redefining the role of the SIDA and the Irrigation Department, modernizing the underlying legal framework, and scaling up the institutional reform initiated under WSIP to the new areas which would be supported by the proposed SWACR. Extension of the closing date of WSIP would provide the GoSindh with adequate time to undertake consultations, prepare and adopt the updated institutional reform plan. 8. In parallel, the Government has started the preparation studies for the SWACR which would support: (a) consolidation of the WSIP’s impacts through additional investments and institutional strengthening, and (b) replication of successful initiatives on infrastructure modernization and institutional reform in other areas in the province. Extension of 10 months will enable the GoSindh to complete the preparation of the SWACR and maintain the momentum for the continued institutional improvement in the irrigation and water resources sector in Sindh Province. 9. Following the adoption of the National Water Policy in May 2018, the GoSindh has started preparing the Sindh Water Policy (SWP) which is an important, time-sensitive task that would be supported by WSIP during the extended period of implementation until October 2020. 10. For these various reasons, the GoSindh views that WSIP is an important source of support to the above-mentioned initiatives and has requested a 10-month extension of the closing date of the WSIP. II. DESCRIPTION OF PROPOSED CHANGES Extension of closing date 11. The Restructuring proposes an extension of the current closing date of the Credit No, 5556-PK by 10 months from December 31, 2019 to October 31, 2020. Changes to Project activities The World Bank PK Sindh Water Sector Improvement Project Phase I (P084302) 12. All activities are within the original description specified in the financing agreement. No new activities would be carried out and there is no need to amend the financing agreement. Changes to the Result Framework 13. The Key Performance Indicators will remain unchanged as they remain relevant to the achievement of the PDO. However, refinements were proposed based on the detailed review of the description for PDO indicators: (i) adjust the target values of key indicators to the scope of the project activities and the PDO, and (ii) elimination of duplicate indicators. For intermediary indicators, refinement is proposed to (i) ensure full alignment of indicators to component outputs; and (ii) simplify indicators to enable close and accurate monitoring. The new proposed results framework is attached in Annex 1. 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 Results Framework ✔ Loan Closing Date(s) ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ The World Bank PK Sindh Water Sector Improvement Project Phase I (P084302) Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications 28-Feb-2015, 09- IDA-43580 Closed 30-Apr-2013 May-2018 IDA-55560 Effective 31-Dec-2018 31-Dec-2019 31-Oct-2020 28-Feb-2021 . The World Bank PK Sindh Water Sector Improvement Project Phase I (P084302) . Results framework COUNTRY: Pakistan PK Sindh Water Sector Improvement Project Phase I Project Development Objectives(s) The overarching project objective is to improve the efficiency and effectiveness of irrigation water distribution in three AWBs (Ghotlu, Nara and Left Bank), particularly with respect to measures of reliability, equity and user satisfaction. This would be achieved by: (a) deepening and broadening the institutional reforms that are already underway in Sindh; (b) improving the irrigation system in a systematic way covering key hydraulic infrastructure, main and branch canals, and distributaries and minors; and (c) enhancing long-term sustainability o f irrigation system through participatory irrigation management and developing institutions for improving operation and maintenance of the system and cost recovery. The improved water management would lead to increased agricultural production, employment and incomes over some about 1.8 million ha or more than 30 percent o f the irrigated area in Sindh, and one of the poorest regions o f the country. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target improve the efficiency and effectiveness of irrigation water distribution The baseline M&E initial report based on farmers# perception survey indicates overall 52 % system#s conveyance efficiency: Detail is as below: Efficiency: Evidence of increased channel conveyance efficiency - Distributaries and minors at 83% of the distributary / minor canals, watercourses, farms, and 77% reduced discharges of drainage water. (Text) - Watercourses at 80% - Farms at 78% The World Bank PK Sindh Water Sector Improvement Project Phase I (P084302) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target - overall at 52% Action: This indicator has been Revised Farmers' perception survey indicates equity of distribution as: Equity: Percentage of farmers receiving same level of water 77% services (Text) - Head watercourses at 52% - Middle watercourse at 40% - Tail watercourses at 27% Action: This indicator has been Revised Farmers# perception survey indicates overall 39.40 % Reliability: Percentage of farmers received water at promised reliability: 42.23 % during rabi and 39.24 % during kharif 60.00 time and in promised quantity (Text) seasons. Overall user staisfaction is reported at 48%. The detail by AWB includes: User Satisfaction: Improved user satisfaction with respect to water distribution practices, as shown in sample surveys 78 percent - Ghotki AWB 60% conducted before and after project activities in each AWB. (Text) - Nara AWB 45% - Left Bank 48% Action: This indicator has been Revised Area provided with new/improved irrigation or drainage services 1,170,000.00 1,837,000.00 (CRI, Hectare(Ha)) Area provided with improved irrigation or drainage services 1,170,000.00 1,837,000.00 (CRI, Hectare(Ha)) Project beneficiaries (Number) 390,000.00 612,000.00 The World Bank PK Sindh Water Sector Improvement Project Phase I (P084302) PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Community Development & Capacity Building Distributaries and minors improved by FOs in the project area 0.00 128.00 (Number) Action: This indicator has been Marked for Deletion 369 FOs existed of which this project was to strengthen Number of FOs carrying out distributary canal level 269 FOs while remaining 100 are covered under Sindh 345.00 improvements and O&M (Text) OFWM Action: This indicator has been Marked for Deletion Evidence of Improved O&M and collection of abiana and increased budget for O&M of the I&D system in participating FOs 0.00 80.00 and AWBs (Percentage) Action: This indicator has been Marked for Deletion Number of Farmer Organizations strenghtened (Number) 0.00 345.00 Action: This indicator is New Number of staff trained (SIDA, AWB) (Number) 0.00 300.00 Action: This indicator is New Improved collection of abiana in participating FOs and AWBs 46.00 80.00 (Percentage) Action: This indicator is New Rehabilitation and Improvement of Irrigation and Drainage System The World Bank PK Sindh Water Sector Improvement Project Phase I (P084302) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Number of main and branch canals, distributaries and minors 2 main and branch canals, and 37 distributary 5 main & branch canals and 46 distributaries improved. (Text) Rationale: Action: This indicator has been Revised This indicator is splitted into two separate indicators. Percentage of planned rehabilitation works satisfactorily 0.00 100.00 completed (Percentage) Action: This indicator has been Marked for Deletion Number of main and branch canalss improved (Number) 0.00 8.00 Action: This indicator is New Number of distributaries and minors improved (Number) 0.00 100.00 Action: This indicator is New Management Plan for Major Irrigation and Drainage Infrastructure Feasibility study for rehabilitation of the Gudu and Sukkur NA 100 percent completed barrages is completed. (Text) Preparation for the feasibility studies for the new project There is no Feasibility Study for Right Bank canals Completed completed (Text) Feasibility Study for Modernization of I&D infrastructure There is no Feasibility Study for Modernization of I&D Completed completed (Text) infrastructure Master Plan for addressing the storm drainage and floods on the left bank of Indus and for Indus delta and coastal zone prepared Not started Prepared (Text) Project Coordination, Monitoring and Technical Assistance and Training The World Bank PK Sindh Water Sector Improvement Project Phase I (P084302) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Project Coordination, Monitoring, Technical Assistance NA 100 percent completed implemented (Text) Action: This indicator has been Marked for Deletion There is no water policy focusing on integrated water The draft Sindh Water Policy prepared (Text) The draft Water Policy prepared resources management The Institutional Assessment Report prepared (Text) There is no Institutional Assessment Report Institutional Assessment Report prepared The Legal Framework Review Report prepared (Text) Not Started Completed Action: This indicator is New IO Table SPACE . The World Bank PK Sindh Water Sector Improvement Project Phase I (P084302) Annex 1: Proposed Result Framework PDO Indicators by Objectives / Outcomes improve the efficiency and effectiveness of irrigation water distribution IN00723586 ►Efficiency: Conveyance efficiency of the distributary / minor canals and Water course. (Text, Custom) Baseline Actual (Current) End Target Action Value 52% 58% 57% Revised Date 31-May-2011 20-Aug-2019 31-Oct-2020 IN00723587 ►Equity: Water distribution between head and tail as measured by DPR ratio (Text, Custom) Baseline Actual (Current) End Target Action Value 51% 66% 64% Revised Date 31-May-2011 20-Aug-2019 31-Oct-2020 IN00723588 ►Reliability: Percentage of farmers received water at promised time and in promised quantity (Text, Custom) Baseline Actual (Current) End Target Action Value 53%. 59% 60% No change Date 31-May-2011 20-Aug-2019 31-Oct-2020 IN00723589 ►User Satisfaction: Improved user satisfaction with respect to water distribution practices, as shown in sample surveys conducted before and after project activities in each AWB. (Text, Custom) Baseline Actual (Current) End Target Action Value 51% 66% 59% Revised Date 31-May-2011 20-Aug-2019 31-Oct-2020 IN00723590 ►Area provided with new/improved irrigation or drainage services (Hectare(Ha), Corporate) Baseline Actual (Current) End Target Action Value 0 1,837,000.00 1,837,000.00 No change Date 01-Oct-2014 20-Aug-2019 31-Oct-2020 Comments: IN00723591 Area provided with improved irrigation or drainage services (Hectare(Ha), Corporate Breakdown) Baseline Actual (Current) End Target Action The World Bank PK Sindh Water Sector Improvement Project Phase I (P084302) Value 0 1,837,000.00 1,837,000.00 No Change Date 01-Oct-2014 20-Aug-2019 31-Dec-2019 IN00723592 ►Project beneficiaries (Number, Custom) Baseline Actual (Current) End Target Action Value 0 612,000.00 612,000.00 No Change Date 01-Oct-2014 20-Aug-2019 31-Dec-2019 Comments: Intermediate Results Indicators by Components Community Development & Capacity Building IN00723593 ►Distributaries and minors improved by FOs in the project area (Number, Custom) Baseline Actual (Current) End Target Action Indicator Marked for Value 0.00 100.00 128.00 deletion Date 31-Dec-2007 01-Aug-2019 31-Dec-2019 IN00723596 ►Number of FOs carrying out distributary canal level improvements and O&M (Text, Custom) Baseline Actual (Current) End Target Action 369 FOs existed of which this project was to strengthen 269 FOs Indicator Marked for Value 345.00 345.00 while remaining 100 are deletion covered under Sindh OFWM Date 31-Dec-2007 29-Aug-2019 31-Dec-2019 IN00723600 ►Evidence of Improved O&M and collection of abiana and increased budget for O&M of the I&D system in participating FOs and AWBs (Percentage, Custom) Baseline Actual (Current) End Target Action Indicator Marked for Value 0.00 80.00 80.00 deletion Date 01-Oct-2014 01-Aug-2019 31-Dec-2019 ► Number of Farmer Organizations strengthened (Number) Baseline Actual (Current) End Target Action Value 0 345 345 New The World Bank PK Sindh Water Sector Improvement Project Phase I (P084302) Date 01-Oct-2014 01-Aug-2019 31-Oct-2020 ► Number of staff trained (SIDA, AWB) (Number) Baseline Actual (Current) End Target Action Value 0 316 300 New Date 01-Oct-2014 01-Aug-2019 31-Oct-2020 ► Improved collection of abiana in participating FOs and AWBs (Percent) Baseline Actual (Current) End Target Action Value 46 64 80 New Date 01-Oct-2014 01-Aug-2019 31-Oct-2020 Rehabilitation and Improvement of Irrigation and Drainage System IN00723599 ►Number of main and branch canals, distributaries and minors improved. (Text, Custom) Baseline Actual (Current) End Target Action 2 main and branch 19 main & branch 5 main & branch canals Value canals, and 37 canals Modified and 46 distributaries distributary 101 distributaries Date 01-Oct-2010 01-Aug-2019 31-Dec-2019 IN00723603 ►Percentage of planned rehabilitation works satisfactorily completed (Percentage, Custom) Baseline Actual (Current) End Target Action Value 0.00 82.00 100.00 Marked for deletion Date 01-Oct-2014 01-Aug-2019 31-Dec-2019 ►Number of main and branch canals improved. (Text, Custom) Baseline Actual (Current) End Target Action Value 0 8 8 New Date 01-Oct-2014 01-Aug-2019 31-Dec-2019 ►Number of distributaries and minors improved. (Text, Custom) Baseline Actual (Current) End Target Action Value 0 100 100 New Date 01-Oct-2014 01-Aug-2019 31-Dec-2019 The World Bank PK Sindh Water Sector Improvement Project Phase I (P084302) Management Plan for Major Irrigation and Drainage Infrastructure IN00723594 ►Feasibility study for rehabilitation of the Gudu and Sukkur barrages is completed. (Text, Custom) Baseline Actual (Current) End Target Action Value NA completed completed No Change Date 31-Dec-2007 01-Aug-2019 31-Dec-2019 IN00723597 ►Preparation for the feasibility studies for the new project completed (Text, Custom) Baseline Actual (Current) End Target Action There is no Feasibility Value Study for Right Bank Ongoing Completed No Change canals Date 09-Nov-2018 01-Aug-2019 31-Dec-2019 IN00723601 ►Feasibility Study for Modernization of I&D infrastructure completed (Text, Custom) Baseline Actual (Current) End Target Action There is no Feasibility Value Study for Modernization Completed Completed No Change of I&D infrastructure Date 09-Nov-2018 01-Aug-2019 31-Dec-2019 IN00723604 ►Master Plan for addressing the storm drainage and floods on the left bank of Indus and for Indus delta and coastal zone prepared (Text, Custom) Baseline Actual (Current) End Target Action Value Not started Completed Completed No Change Date 31-Dec-2007 01-Mar-2019 01-Aug-2019 31-Dec-2019 Project Coordination, Monitoring and Technical Assistance and Training IN00723595 ►Project Coordination, Monitoring, Technical Assistance implemented (Text, Custom) Baseline Actual (Current) End Target Action Value NA Complied with 100 percent completed Marked for deletion Date 31-Dec-2007 01-Aug-2019 31-Dec-2019 IN00723598 ►The draft Sindh Water Policy prepared (Text, Custom) Baseline Actual (Current) End Target Action There is no water policy focusing on integrated background documents The draft Water Policy Value No Change water resources being prepared prepared management The World Bank PK Sindh Water Sector Improvement Project Phase I (P084302) Date 09-Nov-2018 01-Aug-2019 31-Dec-2019 IN00723602 ►The Institutional Assessment Report prepared (Text, Custom) Baseline Actual (Current) End Target Action Institutional There is no Institutional Value Not yet started Assessment Report No Change Assessment Report prepared Date 01-Mar-2019 01-Aug-2019 31-Dec-2019 N00723602 ►The Legal Framework Review Report prepared (Text, Custom) Baseline Actual (Current) End Target Action There is no Institutional Value Not yet started Completed New Assessment Report Date 01-Mar-2019 01-Mar-2019 31-Dec-2019