Documentof The Worid Bank FOR OFFICIAL USE ONLY T-7516 TECHCAL ANNE uDIA GUJARAT EMERGENCY EARTHQUAKE RECONSIRUCIION PROJECT April 10, 2002 This document has a restricted distribution and may be used by recipients cnly in the performance of their official duties. Its contents may not oterwise be disclosed withu Word Bank authoization. Curey Equvalents Cwrency Unit. Indian Rupees (Rs.) Year Evchange Rates March5,2002: US$1.00=Rs.48.73 Weights aMea e 1 meter (m) = 3.228 feet 1 kilometer ([an) = 0.62 miles 1 bectaie (ha) = 247 acres (ac) 10 lakhs = 1 million 1 crore = 10 million FIsc Year of Borower April l-March31 Vice President: Mieko Nishimizu Country Director: Edwin Lim Sector Director: Vincent Gouarne Sector Manager Sonia Hammam Team Leader: Shyamal Sarkar FOR OFFICIAL USE ONLY Acronyms and Abbreviations ADB Asian Developnent Bank CAA&A Comptroller of Aid, Accounts and Audit C&AG Controller and Auditor Genea; CAS Country Assistance Shategy CBO Comnmunity Based Organizafion CDO Central Design Organization CEMP Community Environrental Managernent Plan CEO Chief Executive Officer CPS Community Participaion Strategy CWC Central Water Commission DEA Departrnen of Economic Affairs DGS&D Directorate Geral of Supplies and Disposal DPEP District Primary Education Project DPR Detailed Project Report EA Envrnmental Assessment EMF Environrental ManagementFramework EMP Envimnmental Manageent Plan FMR: Financial Monitoring Reports GIDM Gujarat Istitute of Disaster Managem ent GEC Gujarat Ecology Commission GEERP Gujarat Earthquake Emegency Reconstruction Program GIS Geographic Informtion System GOG Govem nt of Gujaat GOI Govemniment of India GSDMA Gujarat State Disaster Management Authority GSHP Gujarat State Highway Project GSPHC Gujarat State Police Housmg Carporation HRIP Housing Recovery EInplenEtation Plan HRP Housing Rehabilitation Policy IBRD Intemational Bank for Reconstruction and Development ICB International Competitive Bidding IDA International Developnment Association IEC Infomzation, Education and Commnmication IPDP Indigenous People's Develqpment Plan ISR : istitute for Seismic Research MDM Mid Day Meal NCB National Competitive Bidding NCCBM National Council for Cement and Building Materials NGO Non Governmental Orgamizadon PIP Project Inplementation Plan PMR Project Management Report PMU Project Management Unit RAP Resettlement Action Plan R&B Roads and Buildings Department RELA Rapid Environmental Inpact Assessment SA Social Assessment TDO Taluka (sub-district) Development Office TOR Terms of Reference USAID United States Agency for Insdtutional Development VCWC Village Civil Works Cotm-ittee WRD Water Resoun Depatmet This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. muDI GUJARAT EMERGENCY EARTHQUAIKE RECONSTUCTION PROJECT Table of Contents 1. BACKGROUND AND STRATEGIIES 1 BA K RONCKGROUND................I .................................A................... 1... THE A EARTHQUAK....................................................................... 1.... DAMAGE S ASSE.............................................SMENT....................... 2... Social Dimensions of the Gujarat Earthquake .................................................2 OvO ew o Se tra ose ......e........of.......Sector............................sse............ 2.. Econom ic c ...........................................m..........act....................... 2. BANK RESPONSE AND STRTEGY.......---.-.---6 RATIONALE FoR BANK INvoLvEAENT .........................................................6 BAKBANENK.................................SPONSE.6........................................ P'ROGRESS UNDER PHASE I EMIERGENCY OPERATIONS............................................7 LESSONS N D..................................LEARNED......................................... Lessons Learnedfirom the BanIk's Previous Emergency Operations in India........................9 Lessons Learnedfirom the GEERP - Phase I ..................................................9 3. DETAILED) PROJECT DESCRIPTON -11 PRojEcr OBJEcTIvEsAND OuTcoMEs........................................................1 1 PROJECT CompoNENTs AND ESTIMATED COSTS .11.............................................. Permanent Housing Recotnstrction (US$197.2 million) ........................................11 Reconstruction of Public Infrastructure (US$236.9 million) .....................................13 Commnwity Participation (US$12.5 million) ..................................................14 Disaster Management (US$.51.1 million).....................................................14 Project Management (US$6.0 million).......................................................17 PRojEcT CoST AND FINANCING SummARY ...................................................1 8 Ta leAablec A:r C s ......Pro........ect.............n........na...........Cost.......... 1..8 Table B., Financing Plan by Project Components .............................................18 Table -C s T be..............C:..........Cost.................Table.................... 19.....1 4. STUDIES AND TECHNCIAL ASITAC 21 DiaisasterM anagement.21................................................................2 Hazard Mitigation and Risk Transfer .......................................................22 Public l i g ..............................Bu...............d......................22........2 Dam Safety and l...............................................ga........ion.......... 22...2 Roads rd es..................and...............Bridges.............................22......2 5. INSTITUTIONAL ARRANGEMIENT'S AND PROJECT MIPLEAENTATION -......23 PRO PR P R DNSJE....................PRE............A.......EDN.............SS.......... 23....2 OVERAI.LINsTUTIONAL ARRANGEMENTS ....................................................23 INsTTuTIoNAL ARRANGEMiENTs FoR INDIVIDuAL CoMtPONENTs .................................24 PePe et ouigwecniwioe......Housing..............Recons............ruction.............. 24..2 Reconstruction of Public Infr-astructure ......................................................25 Community Pa tonSpp rt................tic..........a.......o.......Support............... 27..2 Diate M n gews..........te..............Man..............gem.............n........27........2 Pro cMjecte t................... ....Managemen....................................... 27.....2 PROCU ETARNGREME..................T.....A......R.....NGEME..................S.28.......2 DI BRsBURS........................................M...........NT................2..........2 ii FINANCIALMANAGEMENT ......................................... 28 6. ACTION PLAN 30 ACTIONS AGREED W WE GOVERN3T ......................................... 30 IMLEMENTATJON ACrlON PLAN AND MONMRING INDICATORS ......................................... 30 AlTACIIMENTS 1. Social Development 32 2. Environmental Assemnnt and Environmental Management Plan a35 3. Communication and Tansparency Strategy 37 4. Procurement Arrangements 39 5. Fnancial Mnament A mm gee_46 6. Implementation Schedule MAP TECHNCIAL ANNEX GUJARAT EMERGENCY EARTHQUAKE RECONSTRUCTION PROJECT 1. BACKGROUND AND STRATEGIES BACKGROUND OF GUJARAT 1. Gujarat is one of the most developed states of India. Among the major states, it ranks third in per capita incomre after Maharashtra and Punjab. The state has achieved an impressive growth rate, averaging eight percent over the decade of 1990s. Although its 41 million inhabitants constitute less than five percent of India's population, Gujarat contributes nearly 11 percent of India's industrial output and 10 percent of the total private consumption. The state is a major producer of chemical and pharmaceutical products, cement, steel, lignite, diamond jeweky, salt, soda-ash and handicrafts. It is the home of India's first Free Trade Zone and is a major manufactunng base for mnany Indian exports. The ports in the state handle nore than 20 percent of country's trade, with Kandla port alone accounting for 17 percent of the country's maritime traffic. The state also has a comparatively large number of community and social organizations, and is home to some of the most successful cooperative movements in India. 2. Gujarat has a poverty ratio of 24 percent, lower than the all-India average because of its relatively higher levels of industrialization and urbanzation. But other indicators of poverty show that the poor - especially women and children - may be more disadvantaged than this figure suggests. For example, the National Family Health Survey (1998-99) found that over 45 percent of children were wasted, and over 50 percent were stunted, indicating chronic malnutrition. Twotirds of Gujarat's population lives in rural areas, and the poor households are mainly marginal farmers and landless laborers belonging to scheduled castes and scheduled tribes. 3. Gujarat is highly exposed to natural hazards. The state continues to suffer from the effects of a cyclone in 1998 and a drought which started in 1999, although the last monsoon was nornal. This was followed by the devastating earthquake of January 2001. The cumulative impact of these hazards on the vulnerable population has increased with each disaster. The eartiquake-affected areas, particularly the worst hit districts of Kutch and Jamnagar, have high levels of urban and rwal poverty. In the districts close to the epicenter of the earthquake, food insecurity and malnutrition of rural households are among the highest in the state, even in nornal years. THE EARTHQUAKE 4. On January 26, 2001, an earthquake measuring 6.9 on the Richter scale occurred in western India.' The epicenter was located to the north of Bhachau in Kutch district of Gujarat state, at a distance of about 250 km west of the city of Ahnmdabad. The ground shaking lasted for about two minutes with strong ground motion lasting for about 25 seconds, and the effects of the eartiquake were felt throughout the Indian sub-continent This was followed by hundreds of aftershocks with a magnitude of 3.0 and above. 5. The earthquake caused major loss of life, injury and damage to property and infrasturcture in Gujarat The official death toll was 13,805 and about 167,000 people were estimated to have been injured. Around 1.2 million homes were damaged or destroyed. Social infrastructure was also severely hit, with destruction or damage to over 2,000 health facilities/buildings and about 12,000 schools. Civil administration was greatly affected, with office buildings and records destroyed; many staff were either killed or suffered the loss of family members. Physical infrastructwe was also severely damaged, including small and medium earthen 1 Estinates of the earthquake magnitude on the Richter scale vary from 6.9, reported by the Inia Meteorlogical Department, to 7.6 by Geological Survey of India and 7.7 by U.S. Geological Survey, based on differnces in observational data incorprated into each esimate and the method of calculation. 2 dams providing drinking water and irigation to local communities, urban and rural water supply systems, public buildings, municipal infiastnct, roads, power and telecommunications. Thousands of small and cottage based industries and agricultural assets were also destroyed or damaged. Twelve Gujarat districts2 were affected. The district of Kutch was by far the most severely damaged, with an average of 70 percent of buildings destroyed Other seriously affected districts included Ahmedabad, Patan, Jamnagar, Rajkot and Surendranagar. These six districts accounted for over 95 percent of the deaths caused by the earthquake. Towns such as Bhachau and Rapar in Kutch have suffered nearly 100 percent damage. Towns and villages in the affected areas were reduced to piles of concrete and rubble, and hundreds of thousands of livelihoods were destroyed. Although the location of the eartxhqake's epicenter in the sparsely populated northwestern part of Gujarat averted a disaster of even greater proportions by avoiding the most industrialized areas, it affected the poorest region of the state. DAMAGE ASSESSMENT Social Dimensions of the Gujarat Earthquake 6. A large number of families suffered the death or serious disability of a member. This will have long-term consequences on the well being of surviving family members, particularly widows, single parent children, orphans and the elderly. Evidence suggests that comparatively, the earthquake killed more women and children than men. Similar differences also exist anmong the injured. 7. Other social impacts of the earthquake include deep insecurity among those who have lost assets, leaving them vulnerable to imnpoverishment. The earthquake destroyed over 234,000 houses, and another 970,000 were damnaged. The livelihoods of many families were disrupted, parficularly among those residing in the worst affected towns and villages. About 19,000 handicraft atisans, the backbone of the Kutch district's economy, are one of the most severely affected groups. Kutch accounts for 80 percent of India's salt production, and 80 percent of its facilities suffered damages. Several thousand salt farmers have experienced the collapse of their brine wells and destruction of salt fields. Many salt refineries were also damaged, hampering the export of salt from the region. Yet another important source of livelihood in Kutch is cattle- about 20,000 cattle were losL 8. The sense of insecurity also stems from the repeated aftershocks in the region. Though the people of Kutch are known for their independence and resilience, the poorest among them have been rendered very vulnerable. The Government of Gujarat (GOG) mobilized rapidly to provide food grain and cash to affected families. NGOs, philanthropic groups, development agencies and private businesses also stepped in to supplement Government's efforts to provide food, medical services, clothes, blankets, utensils, basic supplies and tents. Another serious consequence of the disaster was the complete breakdown of services such as education, health, water supply, electricity, solid waste disposal and agricultural extension, in the worst hit villages and urban areas. Following the disaster both public and private services came to a standstill. Through prompt efforts GOG was able to provide drinklng water by tankers and restore electricity in many places fairly quickly. It also made all possible efforts to open temporary classrooms in time for the academic session. 9. In spite of all their problems, the Kutch community was reluctant to put orphaned children up for adoption. This demonstrates an expression of community solidarity and mutual support in a time of need, and is an indication of the will and ability of the communities to reorgaize and rebuild their lives. Overview of Sectoral Losses 10. A total US$2.1 billion in asset losses (including value of household assets) valued at same-standard replacement costs, and US$1.8 billion in improved-standard reconstruion costs, have been estimated by the 2 The districts ame Kuch, Rajkot, Jamnakg, Surendana, Ahmedabd Patan, Banaskandia, Poibandar, Bhavnar, Sur, Amreli and Jumgadh. 3 Bank based on GOG figures and field visits (ref. Table 1). A distinction is made between direct or same- standard replacement costs (the costs for restoing assets to the standard that existed before) and improved- standard reconstruction costs (the costs for rebilding to a standard that includes the risk of natural disaster). Given Gujarat's high degree of exposure to natural hazards, sane-standard replacement was not considered. Table 1. Estmate of Direct Damages and Reconstruction Costs Sector Dired Reconstructionhi Ownenh US$ milion Rs. milon US$ million Re. mlwion Housing 1,111 n2 51,662 598 28,700 Private Health 47 2,199 75 3,580 Public Education 144 6,696 158 7,600 PuhfPrivate Sub-total: Soial Sectors 1,302 60,557 831 39,880 Irigation 40 1,860 75 3,600 Public Rural WaterSupply* 50 2,339 87 4,180 Public Municipal structre 30 1,409 126 6,040 Public Public Buildings and Monmes 73 3,399 89 4,270 Public Power 40 1,837 68 3,250 Public Roads & Bridges 69 3,209 74 3,550 Public Ports 21 977 25 1,210 Public Telecommunications 11 512 25 1,210 Public Sub4otal: Infrastucture 334 15,542 569 27,310 Agriculture and Livestock** 117 5,450 42 1,990 Private lnry ** 73 3,399 146 7,000 Private Services ** /3 250 11,625 83 4,000 Private Sub-total: Productve Secors 440 20,474 271 12,990 Sub-totil: Environmenit/4 55 2,558 53 2560 Support Structure 94 4512 Grwi Total 2,131 99,144 1,818 87,252 Source: GOG-GSDMA /1 Replacement of irnmovable assets, with improved earthquake/cyclone resistance It does not include expenses associated with technical assistance and training and counseling programs. /2 Includes value of household assets /3 Includes damages to assets of the service sector not listed above /4 Includes costs of rubble removal in urban and rural areas * Reconstruction costs include replacing cement with mnetal pipes ** Direct damages and reconstruction costs to agriculture, industry, and services, exclusive of sectrs listed above. Exchange Rate as of November 12,2001: 1 US$ = Rs 48.0 11. Figures in Table 1 indicate that the heaviest damages occurred to housing and other vital social infiwsxtue underscong the heavy social impacts of the disaster. In addition to the public and private losses set out above, there are some US$53 million of direct damages to the enviromnment This includes the cost of 4 nibble removal in urban and nwal areas. The costs of tackling these problems mainly accrued to the public sector. 12. The extent of damage in sectors that are proposed for financing under the Project is summarized below. Housng. Housing is the single most seriously affected sector by the earthquake. GOG estimates that over 234,000 dwelling units collapsed, and over 970,000 were partially damaged. Direct losses to housing amount to a total of US$1.1 billion, while the cost of reconstruction, repair and strengthening to improve seismic and cyclone standards would require about US$598 million. The most important indirect costs that cannot be assigned financial value, at present, include high social costs of homelessness, underscored by psychological trauma, poor health and fear of occupying damaged houses, and loss of eamings for those individuals whose home also doubled as a place of work The loss of property-related documents also presents an immediate problem to the victims for purposes of availing compensation and undertaking reconstruction. Additionally, the earthquake's effects in Ahlnedad precipitated, at least in the short run, a sudden drop in the demand for and prices of multi-story apartments. Housing finance sector and local property tax revenues also experienced large losses. * Education: Educational infrastructure and services were affected in 18 districts, especially in Kutch, Rajkot, Surendranagar, Jamnagar, Ahndabad and Patan. The lives of educational administ , teachers and students were disrupted both physically and emotionally. The total amount of direct damage in the sector is approximately US$158 million, with greater damage occuimng to elementary and secondary schools, than higher and technical education. While difficult to quantify, indirect impacts of the earthquake include psychological trauma and social impact on students, teachers and educational administrators, and the impact of lost time in the classroom learning. The cost of setting up a counseling program alone, for students and teachers is estimated to be US$3 million. * Dam Safety and Imigation: The earthquake caused widespread and severe damage to the water storage and inigation infrastucture in Gujarat's Kutch district and, to a lesser extet in the Saurashtra region. In Kutch, 21 earthen embanknents require complete reconstuction, while 164 earthen embankments require major or moderate repair and strengthening. In Saurashtra, 37 eartien embankments suffered moderate to minor damage, necessitating repair and rehabilitation. Some structures and linings in the canal networks, both in Kutch and Saurashtra, that suffered damages will also require repairs. The damages are limited to earthen dams on medium and minor schemes, generally to those constructed before 1970s under inadequate seismic engineering design standards. Recently consructed dams for major schemes were not affected. Based on the assessment canied out by GOG and the Central Water Commission, the total amount of damage is estimated to be about US$40 milion, and the cost of reconstruction to upgraded modem seismic engineering standards is about US$75 million. * Publc Buildings: Direct damage to state public buildings and historical monuments are estimated at US$73.1 million. The spatial distribution of damage to administrative buildings and residential quarters that belong to various line departments followed closely the damages in housing. The buildings dtat collapsed were usually old, one or two-story high stuces with masonry walls. Damaged buildings were spread over a larger geographically area, but were also, for the most paM load-bearing structures. Damnage to historic structures, and by extension the impact on Gujarat's cultural heritage, was significant While some monuments such as the 1000-year-old Rani Ki Vav (the Queen's step well) in Patan survived unscatied, other invaluable structures collapsed. The Roads and Buildings (R&B) Department and the Panchayat Department have prepared a shortterm. program (18 months) and a medium-term program (3 years) for reconstruction of public buildings. The formr includes provision of temporary office space, minor and major repairs and strengthening damaged buildings, and preparation of designs for buildings to be reconstructed in the next two to 5 three years. Under the medium-tenm program the R&B Department would undertake reconstruction of collapsed buildings to upgraded standards. In addition, a number of buildings of the Home Department and a few buildings of urban local bodies, particularly in Kutch District wll be rebuilt to upgraded standards. Reconstruction costs have been estinated at US$89 million. Transport In comparison to other infrastructure sectors, the transport sector suffered relatively litde earthquake related damage. Most of the transport infrastructure remained functional after the earthquake. The preliminary cost of direct damage caused by the earthquake to the transport infrastructure of Gujarat is about US$114 million: (a) roads -US$74 million; (b) railways -US$17 million; (c) ports - US$21 million and; (d) airports - US$2 million. Ports were the only transport sub-sector that had identifiable indirect damage costs and these were estimated at about US$5 million. Economic Impact 13. The loss of assets has been mnassive. Restoration of assets to standards resistant to earthquake and other frequently recurring hazards, such as cyclones, though the government agencies will amount to about US$1.8 billion. The restoration cost of private assets, such as housing, and the asset base in agriculture, industry, and services, and the cost of restoring public sector assets are almost equal. In contrast to the direct physical damages, estimated output losses are smaller, ranging in aggregate between US$490 and US$660 million, or 2-3 percent of Gujarat's gross state domestic product (GSDP) over the next three years, with most of the impact falling in FY2001-02. 6 2. BANK RESPONSE AND STRATEGY RATIONALE FOR BANK INVOLVEMENT 14. TIe Bank has extensive experience in providing post-disastr reconstuction assistance, including several disaster-related projects in India. In line with the Country Assistance Strategy (CAS), the post-earthquake reconstruction assistance will support activities geared towards poveTty alleviation and infiastucture rehabilitation. Moreover, the labor-intensive public works program will act both as a short-term income generation vehicle and as a long-termr mitigating force against increased vulnerability. The activities to be imnplenented under the emergency operation will also promote a disaster nitigation agenda and reduce future loss of lives and assets. GOI and GOG have mobilized US$140 million for imnediate relief and rehabilitation works, in addition GOI mobilized US$210 million in 2000-01 and US$260 million in 2001-02 through a 2 percent surcharge on incone tax. The private sector would also contribute up to 50 percent of the costs of reconstruction of sonm 150 villages most affected by the earthquake. Despite these efforts much more additional resources are required to address the massive devastation. This has led GOI and GOG to seek support from the Bank BANK RESPONSE 15. Inunediately after the earthquake, GOI requested the Bank's urgent intervention to help address the unprecedented level of destruction. Responding to this, the Bank and the Asian Development Bank (ADB) together with the Govemment of the Nethelands and the United States Agency for International Development (USAID) undertook a review of GOG assessment and recast the preliminary damage and reconstruction needs to be US$2.1 billion. The joint World Bank-ADB team also assisted GOG to develop an efficient and cost effective strategy for rebuilding damaged ifistucture and services, providing livelihood to a large number of very vulnerable households in a sustainable way and building adequate disaster rmanagernEt capacity. A phased implementation of the stategy was also evolved, as part of this: • Fh% a Short Term Phase to support pnority areas that would address basic human needs and begin the most pressing reconstruction works, including temporary shelter before the onset of monsoon, debris removal, housing reconstruction, health, education, inigation/water storage, and public buildings; * Second, a Medium Term Phase to continue and complete the reconstruction and recovery efforts from the first phase emergency financing, initiate a medium-term emergency response program and to lay down the foundation for sustainable long-term disaster management program; and Third, a Long Term Phase to further strengthen capacity of the Gujarat State Disaster Management Authority (GSDMA) for reducing and managing the natural hazards nsks faced by Gujamt, and pilot implementation of risk transfer mechanisms. 16. Consistent with this approach, the Bank assisted GOG develop the Phase I operafions of the Gujarat Earthquake Enrgmency Reconstruction Program (GEERP). The Board approved amendments to one Loan and eleven Credit Agreements in March 2001 to finance Phase I by reallocating the proceeds of the Loan/Credits under the projects financed by these Agreements. GOI has identified the Gujarat State Highway Project (Ln. 4577-IN), the Second District Primary Education Project (Cr. 2876-IN), and the Reproductive and Child Health Project (Cr. N018-IN) as requiring all or part of their original funding to achieve their development objectives. As a result, out of the US$400 nillion mobilized for Phase I in March 2001, a balance of US$261.6 nillion would renain available for Phase I after US$97 million, US$30 million and US$114 million, respectively, have been reallocated to the orginal components of the three projects. 17. Phase I comprised assistance for housing reonstruction, health, education, dams & irrigation, roads & bridges, public buildings, commrnunity participation support and disaster management capacity building. The 7 proposed Phase I[ is in line with the overall strategy and programmatic approach for a sustainable and long- term reconstruction and restoration of mfin asntu , agreed with GOI and GOG. It will complement and reinforce the interventions currently ongoing under Phase I operations, building on the lessons learned in the process. PROGRESS UNDER PHASE I EMERGENCY OPERATIONS 18. Substantial progress has been made in implementation of Phase L Funding from odter donors was provided for the health and education components, and therefore, only partal fimding or no funding from the Bank was required. An evaluation of Phase I has been a critical element in the preparation of the proposed Project Some highlights of the progress under Phase I operations up to March 15, 2002 are summarized below. * Relief efforts by GOG was prompt and commendable: water supply was restored in 36 hours, power supply in 48 hours, as were telecommunication facilities, rail and road trnusport in a short period of time. * GSDMA was set up as early as February 2001 to serve as a nodal agency for coordinaing various emergency reconstruction activities. * An expenditure of about US$295 million has been made by GSDMA on the reconstruction. Based on the withdrawal claims furnished by GOL US$152.1 million has been paid by the Bank Current commitnents on the Bank financed activities amount to about US$206 million. Housng * Temporary shelter activities have been completed with provision of temporary shelters to over 348,000 families. * Rubbles have been removed from all major towns and from most villages. * Material Banks have been constituted for supplying quality building materials to eligible consumers, and 1,082 material banks are currently operatng. * Partal financial assistance has been provided to over 200,000 fanilies for reconstruction of fully collapsed houses and to over 900,000 families to repair parutally collapsed houses. Reconstruction of about 10,000 houses and repair of about 784,000 houses have been completed * Independent technical audit and quality control mechanisms have been introduced * Awareness building and education of communities and households as well as mass-scale training of engineers and masons have been undertaken. Health * All essential services have been restored, with the construction of over 4,000 semi-permanent structures. * Almost half of the 2,300 damaged anganwadis have been repaired and work on others is progressming. * A state-of-the-art hospital is being constructed in Bhuj. Education * All 35,000 pnrmary schools were reopened on academic schedule. * Reconstruction/rehabilitation to higher standards is beng undertaken for primary, secondary, technical and higher education categories. * Relief activities m primary education icluded establishment of trauma relief centers m clusters of schools, provision of tents and intemediate shelters for fully damaged schools. 8 * Repair work has been completed in five dtricts and over 90 percent completed in 13 districts for primary education. * Three colleges have been reconstucted and ten have been repaired. Dam Safety & Inigation * Two dam safety review panels have been constited. * Short-term measures for safe retoration of dams have been completed before the monsoons for three dams in Kutch and 60 dams in Saurashtra. Public Buildings * Work on general adninistrative buildings, home department buildings, panchayat buildings, heritage buildings and monuments have been taken up. * General administrative buildings - rehabilitation work has included debris removal, provision of temporary shelters, repair of 337 buildings and retrofitting of key buildings. * Home department buildings - repair work has been completed for 175 buildings and is in progress for 1,215 buildings, reconstruction of 337 buildings is in progress. * Panchayat buildings - repair has been completed for 282 buildings and is in progress for 699 buildings. Roads & Bridges * Rehabilitation and strengthening of 185 km of roads have been taken up in 13 contract packages. Substantal completion has been achieved in respect of 11 packages. I Strengthening of 57 major bridges, 115 minor bridges and 186 culverts is being taken up in seven contract packages. Work has commenced on four packages. Community Participation Support * Various infonmational, comnicational and educational activities have been undertakIc by GSDMA. * Efforts to enhance conmunity participation in the planning and management of activities are being made. * Establishment of self-help suib-centers for supervising and monitoring construction activities has been proposed. * Public-private partnership has been forged with active NGO participation Disaster Mnagement Capacity Building * GSDMA has been set up as the nodal authority. * A disaster management task force has been set up to review the national initiatives, various aspects of rescue and relief including training, and the existing disaster management plans at district, taluka (sub-district) and village levels. * A master plan for chemical and nuclear disaster preparedness has been prepared. * District level disaster management plans with comprehensive databases have been completed for 20 districts. * A draft of the comprehensive Disaster Management Act has been prepared. 9 LESSONS LEARNED 19. Key lessons for post-disaster recovery projects noted in the Disaster Management Framework review of Bank experience in disaster related projects3 include: (a) the speed of both appraisal and implementation is crucial for success; (b) mitigation measures should always be included against a repeat disaster, (c) procurement needs to be flexible, and procurernent managemnent needs to start early and, if possible, be centralized in one agency; and (d) community involvement and participation are essential for successful reconstuction work. Another review of emergency lending4 noted that (e) the simpler the design the better, and (f) the institutional frameworc, and strategic management of emergency and reconstruction, is crucial for project success. Recent experiences in Bangladesh (P-7264-BD) and Nicaragua (P-7279-NI) confinned that flexibility in the design of recovery projects is necessary to permit changes as project implementation yields more information, and emergency projects must be simple, rapidly executable, sharply focused, and not burdened with conditionality. Lessons Learnedfrom the Bank's Previous Emergency Operations in India 20. Major lessons learned from previous emergency operations in Endia, particularly from the Andhra Pradesh Cyclone Emergency Reconstuction Project (Cr.2179/Ln.3260), the Maharashtra Emergency Earhquake Rehabilitation Project (Cr.2594) and the Andhra PRadesh Hazard Mitigation and Emergency Cyclone Recovery Project (Cr.295CVLn.4156) are: (a) There is need for both flexibility and speed, and the establishing the increased capacity to improve response capability to manage emergency events is cnrcial. (b) The overall implementation performance is direcdy related to the government capacity to coordinate multi-sector operations and processes. (c) The project components to be implemented by the federal government shall preferably be separate from the emergency recovery projects of the state, as the federal agencies often do not attach equal urgency to the implementation of the state specific priorities. Should there be strong justification for including any component to be implemented by the federal government, a longer period of implementation should be considered. Lessons Learnedfrom the GEERP - Phase I 21. The lessons leamed from the GEERP-Phase I have been recorded and incororated in the preparation of the proposed Projec The key lessons learned from. the implementation of the ongoing Phase I are noted below. (a) The establishment of the high powered coordinating and management authority with comrmitted political support has enabled GOG to undertake reconstruction in a concerted and determined manner. Its strong presence and continuous support are important for both the physical reconstruction activities and disaster mfanagement components. (b) The implementation schedule should take into consideration the bureaucratic processes/compulsions and the absorptive capacity of all implementing agencies and associated line departnents. 3 Gilbet, Roy and KmEir, Alcira; 'leaming from the World Bank's Experience of Naturl Disaster Related Assistance", Urban Development Division, World Bank, May 1999, p. 17-18. 4 y,Uner, AlCirfa, 'essons Leaned from Emergency Lding" Enviro=nent Deparnt Workng Paper No. 1990-15, World Bank, November 1990. 10 (c) The Operational Manual directives with respect to maintenance of accouts by vanous implenenting agencies was extremely useful in settng uniform standards for efficient monitoring of funds, as the agencies had been using vanous standards evolved over their past experience. (d) A detailed procurement plan for each component should be prepared as quickly as possible to ensure tirmly action m procurenent processng and start of worik (e) Considerable human resouces are needed to educate the staff of the implementing agencies in pro.enrnt guidelines and prcurcenEnt processing (f) Fonnulation and adoption of a coherent, proactive and well-targeted commnunication and information dissemnmation strategies at the start of implementation of erregency operations, along with tirmely access to infornation are critical for the speedy and effective project implementation. (g) A tight quality audit regime with quality check by independent teams is essential for large-scale energency reconstruction of pnvate dwellmg units by the owners and for reconstrction of public infrastructure. (h) e intoduction of mterim audits of exhenditures at the end of six months of project implementation and availability of audit reports within two months of the end of the period audited was helpful to identify control weaknesses and initiate appropriate improvenent measures by GOG at an early stage of project implementation. 11 3. DETAILED PROJECT DESCRIPTION PROJECT OBJECTIVES AND OUTCOMES 22. The Project's objectives are to. (a) promote sustainable recovery in the disaster-affected areas, and (b) lay the foundations for sustainable disaster management capacity in Gujarat The following development outcomes are anticipated to be achieved through the proposed assistance: firt, vulnerability reduction through infrastructure built to disaster-resistant standards; second, increased risk awareness and preparedness of comnmunities to natural hazards, through access to more sustainable incomes and enhanced knowledge of hazards and disaster reduction techniques; and third, enhanced emergency preparedness and response capacity of responsible entities (such as fire and rescue brigades). The combination of these major outcomes will result in saving lives and properties in future disasters and limit the negative impact on the country's overall development PRoJEcT COMPONENTS AND ESTIMATED COSTS 23. The Project's total cost is US$503.7 million including contingencies, of which Bank financing would be US$442.8 million. The Project will include the following components: Permanent Housing Reconstruction (US$197.2 million) 24. The permanent housing reconstruction program was the most critical component of Phase I Its importance continues through Phase IL Under the Phase M L this component will finance implementation of owner-driven housing recovery plans initiated under the Phase I for the partally damaged and fully collapsed houses in the affected rural and urban areas. Assistance will be provided to repair about 75,000 partially damaged houses and reconstruction of about 135,000 fully collapsed houses. a) Activities supported under this component will be in line with the Housing Rehabilitation Policy (HRP) and a Housing Recovery Implementaton Plan (HRIP) formulated by GOG and used as guiding tool for facilitating both, total and partal reconstmction. I line with this, the permanent housing reconstruction component will be driven by the following principles: (a) owner-driven reconstruction; (b) restoration of damaged/destroyed houses with appropriate standards; (c) provision of appropriate forms of technical support for multi-hazard resistant repair and reconstruction; (d) introduction of independent audits for quality monitoring and improvements; and (e) production of education and training materials. 12 b) The details of the overall housing reconstruction program under both phases are given in the table below. Table 2. Housing Reconstruction Summary House aategwy* GI G2 G3 G4 GS Tolal (damage) (mutor) (40%o) (10-25%1) (25-50%Yo) (>50%) Total no. of houses 438,335 267,343 154,560 111,300 233,660 1,205,198 ddamaged/destroyed Rural Housing Total o. of houses prposed 0 0 119,642 121,221 131,014 371,877 for Bank assistance Average amount for 1,380 5,099 10,400 22,709 71,045 - recorstruction(repair (in Rs.) Total amount (in Rs. million) 0 0 1,244.3 2,763.7 9,307.9 13,315.9 Urban Housing Total no. of houses proposed 0 0 30,610 207207 39,703 90,520 for Bank assistance Average amount for 1,742 6,986 16,660 22,859 135,956 - reconstmctionrrepair (in Rs.) Total amount (in Rs nillion) 0 0 510.0 461.9 5,397.9 6,369.8 Total fimding required fom fthe Bank Total no. of houses proposed 0 0 150,252 101,014 170,717 421,983 for Bank assistance Total amount (in Rs million) 0 0 1,754.3 3,225.6 14,705.8 19,685.7 Total amount (in US$ 0 0 362 665 3032 405.9 million)** * House category refers to the following: GI - cracks up to ½2 inch width; G2 - damage up to 100%o; G3 - damage up to 25%; C4 - damage up to 50%o; G5 - comnpletely damaged house. **Exchange rate of US$ 1.0 = Rs. 485 Repair of houses in category G1 and G2 is financed by GOG. Source: GSDMA 25. The first installmnet (40 percent) of financial assistance shall be paid, in all cases, from the proceeds of Phase L and the balance (60 percent) shall be paid as follows from the proceeds of the proposed Project Repair/Reconstruction Payment Proress to be achieved (a) Repair of about 75,000 60 percent On engineer's certification of completion and confirmation by partally damaged houses independent audit. (b) Reconstruction of about 40 percent On engineer' s certification of completion up to plinth level 135,000 collapsed houses conforing to earxhuake resistant standards and confmation by independent audit. 20 percent On engineer's certification of completion conforming to earthquake resistant standards and confirmation by independent audit 13 Reconstruction of Public Infrastructure (US$236.9 million) 26. This component will provide fumding for (a) repair, strengthening, rehabilitation, reconstruction and upgrading, where necessary, of damaged public buildings, dams and inigation infrastructure, and roads and bridges, in the earthquake affected areas, (b) retrofitting of undamaged government administration buildings and public buildings of cntical importance such as schools, hospitals, fire stations, and the preparation of detailed engineerng documentation for the retrofit of key bridges in seismic zones IV and V, and (c) construction of buildings and control rooms necessary to foster emergency management in the State as well as set-up the Gujarat Institute of Disaster Management (GIDM) under GSDMA and Institute for Seismic Research (ISR). This component will also finance consulting services for planning and design of vital institutional complexes, and quality assurance for consuction activities and for the inventory of hazardous facilities, determination of the types of retrofitting measures for individual structural systems, third party expert supervision arrangement and related environmental management activities. a) Public Building (US$108.0 nillion): The public buildings sub-component proposes to supplement the on-going efforts under Phase L through the reconstruction and strengthening of highly damaged govemment-owned public buildings in earthquake affected areas, provision of funiture, consulting services and other technical assistance. The objective of repairing and/or reconstructing government buildings is to facilitate smooth and efficient continuation of administration. This is critical for overall administrative purposes as well as for the efficient conduct of emergency reconstruction operations. The buildings covered under this sub-component belong to: (a) state government agencies/departments; and (b) urban/rural local bodies. In addition, the Project will also finance the construction of highly essential, hazard resistant new buildings that required for GSDMA to foster emergency management in the State, as well as set-up the proposed GIDM and ISR Reconstruction & repair (US$72.4 million): Among public buildings, the Project will finance repair, reconstruction and retrofitting of non-residential and residential buildings, along with essential furiture, of various governmental departments in 12 districts to make them less vulnerable to earthquakes and cyclones. This will include 519 mid-day meal kitchen sheds, six teachers training institutes, and technical institutes of the Education Department, about 600 administrative buildings and staff quarters of the Roads and Buildings Departnmt, 260 buildings of Panchayat (Rural Local Govemment) Department and several buildings of the urban local bodies. With regard to the buildings of the Home Depatnent, the Project will finance reconstruction and/or repair of both residential and essential non-residential buildings, such as administrative buildings. These buildings will be strengthened and reconstructed to multi-hazard resistant standards. Retrofitting (US$25.7 million): The retrofitting sub-component will provide for anti-seismic and anti-cyclone retrofitting for around 4,200 undamaged public buildings of critical importance, such as schools, hospitals, government administration buildings, fire stations, and local govemrnment buildings in the highly vulnerable seismic zones IV and V, and in other hazard-vulnerable areas. The Project will also provide fumding for consulting services required for the inventory of hazardous facilities, the determnation of the types of retrofitting measures for individual structural systems, independent technical audit and quality assurance. Construction of new buildings (US$9.9 million): This sub-component will include construction of new buildings and control rooms, including essertial furniture, required for fostenng emergency management in the State, as well as in setting up institutions such as GSDMA, GIDM and ISR This component will also finance consulting services for planning, design and quality assurance for these construction, as well as third party expert supervision arangement and quality control on the par with other components of the program b) Dam Safety and Irrigation (US$77.9 million): The earthquake caused severe and widespread damage to the water storage and imigation infrastructure in the Kutch and Saurashtra regions. The dam safety and irrigation subcomponent proposes to address this. It will finance techical assistance 14 including quality audit and project management support; and works for strengthening of 222 earthen dams (185 dams in Kutch and 37 dams in Saurashtra) and appurtenant structures to resist/withstand earthquakes (of similar magnitude) and cyclones. The detailed measures required to strengthen these dams will be based on the recommendations of the two Dam Safety Review Panels and the on- going preparatory activities such as soil testing, designing and estimating, which are supported under Phase L c) Roads and Bndges (US$51.0 miDlion): The damages to roads from the earthquake included settlement of pavement, cracking and raveling on bitumninous surfaces, and depressions and potholes, leading to poor residual strength of pavement The structures along these roads were also affected. Additionally, the heavy traffic resulting from the intensive construction work of the past few months has necessitated early rehabilitation and maintenance of these roads and associated structures. The roads and bridges subcomponent provides for the restoration of essential transport network infrastructure by financing the rehabilitation and strengthening of 700 km of state roads and associated structures in nine affected districts; the preparation of detailed project reports; and independent technical audits of the works undertaken. Community Participation (US$12.5 million) 27. Gujarat has a history of community involvement in the imnplementation of developmental programs, with a strong network of NGOs and CBOs. The proposed Project aims to ensure the participation of all earthquake affected communities, especially the most vulnerable groups, in the planning, decision-making and implementation of the reconstuction program so that they can obtain their due share of benefits, including information, housing assistance, and access to public ifiastucture and services. This would be achieved through (a) infonmation7 communication and education activities; (b) establishment of village-level sub- centers to build capacity for earthquake-resistant construction, and to form self-help groups that would monitor the program and be responsible for disaster preparedness in the future; (c) strengthening of local government mechanisms to undertake social audit and ensure transparency; (d) gender sensitization workshops for all functionaries involved and in communities; (e) community-based disaster preparedness program covening the identification of risks, vulnerable areas and people; formulating plans; training in search and rescue, relief, warning, evacuation, and medical assistance teams; establishment of local waming systems and emergency response equipment, village drills, and so on. 28. A number of social development activities will also be supported under.this component; among them are: the launching of sizeable information and education campaigns; setting up of self-help sub-centers (SETUs) in villages for monitoring construction activities; specific gender sensitizing activities; strengthening of Gram Sabhas (village-level stakeholder assemblies); and capacity building of conmmnity level disaster preparedness. These activities are placed within an overall community participation strategy (CPS), with appropriate institutional arrangements identified for their implementation. The CPS will include (a) communications, (b) outreach to communities, (c) community organization, (d) participatory activities, (e) capacity building, (f) tansparency and grievance redressal, and (g) social needs and impact assessment (monitoring). 29. There would be large volumes of print and audio-visual materials produced, training courses, workshops, meetings and demonstrations held, consultants and travel entailed and financial support to community organizations provided (US$6.1 million). Purchase of emergency kits for 2,000 villages, containing essential waring devices for timely notification and evacuation of people at risk, and provision of major emergency kits for one hundred clusters of villages would be supported (US$64 million). Disaster Management (US$51.1 million) 30. After the experience of the devastating earthquake, GOG intends to adopt a holistic approach to disaster management with focus on reducing risk and vulnerability through policy, legislation, capacity building, education and communication to avoid/reduce the impact of disasters and achieve better preparedness. 15 Prevention, mitigation and preparedness will be given attention to reduce the impact of disasters. GOG has prepared a draft of the Disaster Management Policy and the Disaster Management Bill to ensure long-term comrmitment for disaster mitigation. The Project will assist GOG in fostenng awareness, education and mnassive training provided in Phase L and will establish the necessary building blocks for Phase LlL the projected freestanding disaster management operation. Targeting cyclone, flood, earthquake, and drought as main hazards, this component will finance the establishment of a professional emergency management program, and the preparation of Phase IML 31. Under the Disaster Management Component three major activities are addressed: (a) Emergency Management; (b) Hazard Mitigation and Risk Transfer Activities; and (c) Development of Disaster Management Institutions. (a) Emergency Management (US$41.3 million) subcomponent has been further classified in three different activities: (i) feasibility studies (ii) institutional consolidation, and (iii) setting up of emergency response system. (i) Feasibdity studies (US$0.6 million): Feasibility studies are supported mainly as building blocks for setting up emergency response system in the state. This includes four different studies related to various aspects of emergency preparedness and response: (a) emergency communication, forecasting and early waming system, (b) emergency response centers; (c) disaster management act, land use and new building codes; and (d) damage and loss assessment methodologies. (ii) Instional consolidain (US$0.5 million): Institutional consolidation, including institutional capacity assessment and operationalizing an emergency mnagement system. (iii) Setting up of Emergency Response System: The state-wide emergency response mechanism will be strengthened with setting up of control roorn, communication network and early waming system and regional Emergency Response Centers and the provision of essential equipment for search and relief operations. Control room communication network and eady waming system (US$17.0 million): In order to respond to any disaster situation, early waming systems, communication networks and control rooms are the basic inrasinicture. Under this component, control rooms and early warning systems of the state will be strengthened. Communication network and control rooms will be interconnected through a large area network and provided with the latest equipments to work as an alternative in the event of failure of all regular means of communication in disaster situations. Setting up of regional Emergency Response Centers and physical strengthening of municipal corprations emergency response mechanism (US$23.2 million): Under this sub component five Emergency Response Centers will be supportei Four centers will be specialized in multi-hazard response and one will be dedicated to tackle chemical disasters. Out of four centers, three would be regional centers (multi-hazard regional rsponse centers), to be established in Rajkot catering to Saurashtra-Kutch region, in Surat catering to south Gujarat region, and in Ahmeabad catering to North Gujarat region. One special center will be dedicated exclusively to Kutch, which is in Zone V in terms of earthquake vulnerability. Another regional center specialized in chemical disasters will be set up in Vadodara, which is the most industrialized district in the state. In addition, the emergency response capacities of municipal corporations that are at presently not well-equipped for emergency operations (even low intensity disasters), will be enhanced, both professionally and technically. Essential equipment such as hydrulic platform, hydraulic telescopic crane, emergency rescue van with equipment, hydraulic rescue tools of the fire and rescue brigades shall be purchased for search and relief operations. (b) Hazard Mftlgation and Risk Transfer Activities (US$4.4 million): This subcomponent will help prepare long-term disaster mitigation strategies of GOG. The Project supports a paradigm shift to focus more on disaster mitigation issues as opposed to relief strategies. The proposed subcomnponent will include studies and activities related to mitigation, namely: (a) digital hazard maps for earthquake, 16 flood, drought and cyclone; (b) inventories of hazardous buildings in major urban areas and strategies for ietrofitting privately-owned buildings (with special emphasis on multi-story apartrent blocks, business establishments, industrial plants) and publicly-owned lifelines (e.g., power stations, water reservoirs); (c) regulatory studies on strengthening building codes and institutionalizing their improved enforcement; and (d) procedures for community-based disaster management planning (process and plans), for the taluka (subdrict), the district and the state level; and (e) risk transfer and insurance. (c) Development of Disaster Management Institutions (US$5.4 million): This component will facilitate the participation of all critical stakeholders in disaster management process by strengthening training and awareness, research, documentation and infonnation dissemination system This will be done on a sustainable basis by strengthening GSDMA, establishing GIDM and ISR. This component will support the preparation of disaster management plans at the state, district and community levels, and also the setting up of a digitized database system (i) GSDMA: The bill related to GSDMA which will provide legal status to it and nmke it the key agency responsible for disaster nmnagement in the state, is under discussion. As the key authority in the state, GSDMA will coordinate all the proposed activities, emergency as well as nitigation related, under the Project, as well as the control rooms and regional response centers, in both regular and emergency situations. A central control room will also be housed in the premises of the GSDMA. This subcomponent will support the necessary equipments to help GSDMA coordinate all activities related to disaster management plan preparation process. Disaster Management Plans: Under this, the preparation of state, district, taluka and community level disaster management plans will be supported. These disaster management plans, along with the Standard Operational Procedures will lead to short and long term strategies to reduce vulnerability to disasters. (ii) GIDM: The lnstitute will function as the nodal center for research and hunan resource development in the area of disaster mitigation and response. There is no such institution currently in the state. The Institute will network with intemational, national, state level training institutions and NGOs involved in disaster managernent AU the training research, documentation and creation of database related to disastr management activities will be done by the GIDIvL Training and informtion dissemiation: Under this, continued support will be provided for trmining and capacity building activities started in Phase L including the training of government engineering cadre, panchayat engineering cadre, engineers employed for reconstruction and other activities, architects and planners, NGOs, and faculty mnembers in various engineering colleges. Information manuals and booklets will also be prepared for educating masons and the public at large. This will also include training of the project staff associated with flood forecasting and monitoring, and training of village/taluka level govemment functionaries on various aspects of disaster management The Project will support the necessary pedagogical materials and equipments. Geographic Information System (GIS): The Project will support developing a detailed GIS containing all the essential data regarding disasters, manpower, equipment and other inventory relating to disaster response. The Project will provide the appropriate information technology equipment (iii) ISR: A proposal for setting up such an institute has been submitted by GOG to GOI in April 2001. GOI has agreed to set up ISR in Gujarat under the aegis of Department of Science and Technology, GOI The Project will support development of sophisticated seismological capacity comparable to intemational standards. Since Gujarat falls under highly vulnerable seismic zones (Zones V and IV), the institute will study and disseminate information related to eathquake prediction, monitoring, computation and observation network The Project wil provide the necessary scientific equipment, as required 17 Project Management (US$6.0 million) 32. This component will finance GSDMA's incremental operating costs associated with the implementation of housing, community participation and disaster management. In addition, it would finance purchase of equipment and vehicles and consulting services, including those for training, quality assurance, monitoring and evaluation, environmental and social assessment, and audits among others. 33. Environmental and Socal Development Aspects. A management framework has been developed to address the environmental aspects of reconstruction work The framework attempts to maximize the oppatunities for enhancing project components and mitigating potential impacts upstream, while recognizing the constraints imposed by an emergency reconstruction effort Within the context of the agreed environmental management framework, an Environmental and Social Analysis (ESA) examined more closely the environmental and social issues most relevant to the proposed Project. The ESA findings and the proposed nature of Bank support were the basis for preparing a comprehensive Environmental Management Plan (EMP), which will provide the framework for environmental and social impact nitigation and monitoring measures throughout project implementation. The Project's main environmental issues are linked to managing debris, rubble and reconstruction waste materials and to minimizing and managing the impacts of the reconstruction work itself. 34. The Social Needs and Impact Assessment process that was initiated in Phase I would continue to identify affected peoples' needs (especially of vulnerable groups such as women, children, lower castes, tribes, minorities, the physically-challenged and elderly), and the program's positive and negative social impacts on all stakeholders. Its findings would be used by project management to ensure that these groups are participating in the program, their needs being met, benefits equitably distributed, and impact achieved in terms of information and technology transfer, housing restoration, access to public facilities and services, and social capital development for future disaster preparedness and management The conmunity participation component of the Project consists of several activities to ensure inclusion, equity and social capital development among the earthquake-affected. In addition, a Social Management Plan has been prepared as part of the ESA, covering these aspects as well as issues related to displacement (primary and secondary) and the special needs of tribal (indigenous) people. Details of the status and proposals related to meeting the Bank's safeguards on Involuntary Resettlement and Indigenous People are given in the Technical Annex, Attachment 1, Social Development 18 PROJECT COSTS AND FINANCING SUMMARY Table A: Project Summary Cost US$ Million Rs MiNlion Project Component LAl Foreign Total Loc Foreig Total A. Repairs and 161.5 8.5 170.0 7,932.5 417.5 8,350.0 reconsruction of permanent housing B. Reconstruction of 183.4 11.4 194.8 9,233.0 570.0 9,803.0 public infiastructure C. Community 8.7 1.7 10.4 435.5 84.5 520.0 participation D. Disaster Management 10.7 30.8 41.5 542.0 1,563.0 2,105.0 E. Project Management 4.2 0.8 5.0 209.5 40.5 250.0 Sub-Total 368.5 53.2 421.7 18,352.5 2,675.5 21,028.0 Physical Contingencies 36.95 5.3 42.2 1,835.2 267.6 2,102.8 Price Contingencies 33.7 6.1 39.8 1,700.4 3102 2,010.6 Total 439.1 64.6 503.7 21,888.1 3,253.3 25,141.4 NOTE: Pnce contingencies and exchange rates are taken from the Memo dated August 13, 2001 from the Country Director, India to India Staff on India. Exchange Rates and Pnce Contingencies for Project Analysis. Table B: Financing Plan by Project Components US$ Million Project Component Total Cost IDA Finace Government Finance (induding condngendes) A. Repais and 197.2 177.5 19.7 reconstruction of penmanent housing B. Reconstruction of public 236.9 212.1 24.8 inflastructure C. Community participation 12.5 9.0 3.5 D Disaster Management 51.1 40.0 11.1 E. Project Management 6.0 4.2 1.8 Total 503.7 442.8 60.9 19 Table C: Cost Table Table C: Cost Table US$ million Base 2002 2003 2004 2005 Cost Total Forei n |Local Total |Foreign|Local Total IForeignILocal I Total iForeign Local Component A: Housing 170.011 123.201 6.161 117.041 46.811 2.341 44.47 0.001 0.001 0.001 0.001 0.00 0.0t Component B: Reconstruction of Public Infrastructure 81. Education Technical Education Works W 8.85 0.62 0.03 0.59 1.89 0.09 1.80 4.50 0.23 4.28 1.83 0.09 1.74 Goods G 2.05 0.41 0.08 0.33 0.80 0.16 0.64 0.84 0.17 0.67 0.00 0.00 0.00 Cons. C 0.12 0.12 0.06 0.06 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 nicipal Schools Works W 0.93 0.31 0.02 0.29 0.62 0.03 0.59 0.00 0.00 0.00 0.00 0.00 0.00 Cons. C 0.08 0.04 0.00 0.04 0.04 0.00 0.04 0.00 0.00 0.00 0.00 0.00 0.00 Municipal Corporation Works W 0.10 0.09 0.00 0.09 0.01 0.00 0.01 0.00 0.00 0.00 0.00 0.00 0.00 [B2 Public Buildin 5 State Buildings Works W 31.88 7.62 0.38 7.24 18.15 0.91 17.24 6.11 0.31 5.80 0.00 0.00 0.00 Goods G 1.99 0.10 0.01 0.10 0.80 0.04 0.76 1.09 0.05 1.04 0.00 0.00 0.00 Cons. C 1.51 0.51 0.00 0.51 0.60 0.00 0.60 0.40 0.00 0.40 0.00 0.00 0.00 Panchayat Buildings Works W 2.21 1.23 0.06 1.17 0.98 0.05 0.93 0.00 0.00 0.00 0.00 0.00 0.00 Cons. C 0.04 0.02 0.00 0.02 0.02 0.00 0.02 0.00 0.00 0.00 0.00 0.00 0.00 Police Buildings Works W 7.40 3.10 0.16 2.95 4.30 0.22 4.09 0.00 0.00 0.00 0.00 0.00 0.00 Goods G 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cons. C 0.12 0.00 0.00 0.00 0.08 0.00 0.08 0.04 0.00 0.04 0.00 0.00 0.00 Municipal and Others Works W 1.85 0.51 0.03 0.48 0.90 0.05 0.86 0.44 0.02 0.42 0.00 0.00 0.00 Goods G 0.02 0.00 0.00 0.00 0.01 0.00 0.01 0.01 0.00 0.01 0.00 0.00 0.00 Cons. C 0.12 0.06 0.00 0.06 0.04 0.00 0.04 0.02 0.00 0.02 0.00 0.00 0.00 Disaste;Managernent Works W 7.83 0.00 0.00 0.00 6.83 0.34 6.49 1.00 0.05 0.95 0.00 0.00 0.00 Institutes Goods G 0.20 0.00 0.00 0.00 0.10 0.01 0.10 0.10 0.01 0.10 0.00 0.00 0.00 Cons. C 0.24 0.10 0.00 0.10 0.10 0.00 0.10 0.04 0.00 0.04 0.00 0.00 0.00 [B3. Retrofittin State Buildings Works W 4.31 1.57 0.08 1.49 2.67 0.13 2.54 0.07 0.00 0.07 0.00 0.00 0.00 Cons. C 0.11 0.04 0.00 0.04 0.06 0.00 0.06 0.01 0.00 0.01 0.00 0.00 0.00 Panchayat Buildings Works W 4.02 1.36 0.07 1.29 2.66 0.13 2.53 0.00 0.00 0.00 0.00 0.00 0.0 Cons. C 0.10 0.04 0.00 0.04 0.06 0.00 0.06 0.00 0.00 0.00 0.00 0.00 0.00 Municipal Schools Works W 12.27 0.00 0.00 0.00 6.32 0.32 6.00 5.95 0.30 5.65 0.00 0.00 0.00 Health centers and Cons. C 0.14 0.02 0.00 0.02 0.06 0.00 0.06 0.06 0.00 0.06 0.00 0.00 0.00 dispensaries B4. Dam Safety & Irri ation | Strengthening of Dam Works W 63.80 14.33 0.72 13.61 45.52 2.28 43.24 3.95 0.20 3.75 0.00 0.00 0.00 QA Consultants Cons. C 1.00 0.12 0.06 0.06 0.80 0.40 0.40 0.08 0.04 0.04 0.00 0.00 0.00 20 B5. Roads and Bridges Rehabilitation of RoadWorks W 39.48 2.05 0.10 1.95 26.89 1.34 25.55 10.54 0.53 10.01 0.00 0.00 0.00 and Bridges Cons. C 2.01 0.97 0.49 0.49 0.86 0.43 0.43 0.19 0.10 0.10 0.00 0.00 0.00 omponent C: Communi Participation Cl Community partici Goods G 5.46 2.71 0.68 2.03 2.75 0.69 2.06 0.00 0.00 0.00 0.00 0.00 0.00 and capacity building Cons. C 1.80 0.53 0.05 0.48 1.06 0.11 0.95 0.21 0.02 0.19 0.00 0.00 0.00 Other 0 3.13 0.41 0.02 0.39 1.00 0.05 0.95 1.72 0.09 1.63 0.00 0.00 0.00 Component D: Disaster Management Dl Disaster Managem Goods G 32.98 0.00 0.00 0.00 23.37 18.70 4.67 9.62 7.70 1.92 0.00 0.00 0.00 Cons. C 6.61 2.26 1.36 0.90 3.69 2.21 1.48 0.67 0.40 0.27 0.00 0.00 0.00l Other 0 1.95 0.00 0.00 0.00 1.00 0.25 0.75 0.77 0.19 0.58 0.18 0.05 0.14 Component E: Project Management El GSDMA operating cost 2.22 1.44 0.07 1.37 0.40 0.02 0.38 0.38 0.02 0.36 0.00 0.00 0.00 E2 Project management consultants 2.79 1.03 0.26 0.77 1.00 0.25 0.75 0.77 0.19 0.58 0.00 0.00 0.00 Base Cost Rs Million 421.73 166.94 10.93 156.011 203.21 31.52 171.681 49.56 10.60 38.961 2.02 0.14 1.88 Base Cost + Physical Contingency 463.90 183.63 12.02 171.61 223.53 34.67 188.85 54.52 11.66 42.86 2.22 0.15 2.07 Price Contingencies 39.82 6.43 0.42 6.01 23.47 3.64 19.83 9.40 2.01 7.39 0.52 0.04 0.48 Total cost wth all contingencies 503.72 190.06 12.44 177.62 247.00 38.31 208.68 63.92 13.67 50.25 2.74 0.19 2.55 21 4. STUDIES AND TECHNCIAL ASSISTANCE 35. The proposed Project supports several studies and technical assistance for the: (a) development of necessary policy and strategy fiameworks for various aspects of disaster and emergency management, including of the regulatory and institutional frameworks and preparation of strategic plans; (b) planning and design of engineerng college and polytechnic institute in Bhuj, control rooms and other items such as public buildings, roads and bridges, dams and inigation infrastrcture, GIDM and ISR and introducing new technologies as needed; (c) technical and quality audit of various components through independent audits; and (d) assessment of social and environmental impacts on the stakeholders. A summary of the key studies is given below. Disaster Management 36. Feasibility Studies: These studies intend to assist in setting up emergency response system in the state. This includes four different studies related to various aspects of emergency preparedness and response. The scope of these studies is given below. Emergency Communication, Forecasting And Early Warning System Emergency communcation and early warning system: The existing emergency communication system will be studied and analyzed to develop an appropnate emergency conmmucation system for establishment in the state. Cyclone forecasts and real time waning: Early and advance waning regarding occunrence of any disaster helps in saving lives and property. The study will focus on all aspects of early waming mechanisms for cyclones, for adoption by the state govemment Information technology for disaster management The study will focus mainly on the use of information technology used in the collection and dissemination of information, management of emergency situation and in awareness building process especially in the specialized area of disaster management Emergency Response Centers Studyfor Energency Response Centers: The study will identify the locations, roles and responsibilities, fiameworks, mechanisms and equipment for networking and coordination with different stakeholders, for the proposed emergency response centers. Legal and Regulatory Franework for Disaster Management Preparation of Disaster Management Act providing statutory powers to GSDMA: GSDMA, which was constituted by a govemrment order, is now proposed to be made into a statutory body. Under the study, the regulatory framework related to powers and authority of GSDMA will be developed for institutionalizing disaster management mechanisms in the state. Review of building codes and land use micro-zoning: GOG is talkng initiative to review the building codes and formulate a disaster management act in the state, the first of its kind in the country. The study will review the existing relief code, building code, land use planming laws and develop new codes and laws, and assist the preparation of disaster management act for the state Improving building permits and enforcement regime: Leaming from the present disaster GOG has decided to reform the process of issuing pernits for new constructions and enforcement of building codes in the state. The study will focus on developing a safe and sound building permit regime for adoption in the state. 22 Damage and LOss Assessnet Methodologies Damage Assessment Methodology The study will focus and analyze various methods used for damage assessment in the disaster situations and develop scientific methods to obtain an accurate estimation of damage. Hazard Mitigation and Risk Transfer 37. The Project supports a paradigm shift to focus more on disaster mitigation issues as opposed to relief strategies. The proposed component will include studies and activities that will support the development of long term disaster mitigation strategies in the state. This includes: Risk Transfer and Insurance: The study wil help GOG build the Gujarat Disaster Insurance Program It will also focus on draft regulations detailing principles of the disaster fund flow, identify the potential level of threat to economy and finance due to natural disasters. The study will explore ways to promote risk sharing and transfer mechanisms (Le. insurance and reinsurance). Vubnerabiliy Anaysis: Under the proposed study a detailed mapping of the state based on hazard, risk and vulnerability analysis will be done. This will also include an inventory of hazardous factories in the state. An atlas will be developed with the detailed vulnerability maps. Drought pastern forecast: Drought is a silent emergency, but entirely different from other disasters. This study will develop an early warring mechanism to identify different stages of drought and its severity, for determining mitigation and respose mechanisms. Seismic micro-zoning: Parts of Gujarat fall under Zone V category of seismic vulnerability. The study will focus on seismic micro zoning to design the short term and long term interventions for minimizing the impact of the earthquake. Short-tenn and long-term mitigation measures: GOG is taKing several initiatives to minimize the loss due to disaster in the state. The study wil aim to recommend various mitigation measures that could be implemented in the state, consistent with the new disaster management policy. Public Buildings 38. Support will be provided in planning and design studies for reconstruction of earthiuake damaged Engineering College in Bhuj and Polytechnic Institute in Bhuj and for construction of buildings and control roomis to foster emergency management as well as setting-up of GSDMA, GIDM and ISR. Support will also be provided for peparation of inventory of hazardous faciities and the determination of the types of retrofitting measures for individual structural systems. Dam Safety and Irrigation 39. Support will be provided for the strengthening/reconstnction of earthquake affected dams in Saurashtra and Kutch region. Since the imigation schemes are scattered in large geographical area, the technical assistance will provide support to GOG to monitor progress and ensure strengthening/reconstuction of the dams following the appropriate standards. Roads and Bridges 40. Support will be provided for the execution of repair works for roads and damaged minor bridges and protection structures along the roads, in nine eartquake affected districts. ThiFs wi include identification of damages and rectification/remedial measures, for foundations, sub-stuctures and super structures. 41. Expressions of interests from consulting firms have been invited for all the major studies mentioned above and the consultants terms of reference is under peparation. P osals have been invited from the short listed firms for quality assurance and monitoring support for the dam safety works. Invitation of proposals from short listed firms for investigation, design and praration of bidding documents for roads and bridges is being issued. Requests for proposals for all major consulting studies, including those related to disaster management are expected to be issued by end of May 2002. 23 5. INSTITUTIONAL ARRANGEMENTS AND PROJECT IMPLEMENTATION PROJECT PREPAREDNESS 42. The experiences of prepanng and implementing the Phase I operations of GEERP have provided invaluable support in the preparation of the proposed Project As outlined earlier, the progress on various components under Phase I has been satisfactory. The Phase II Project will essentially continue the work inifiated under Phase I with the exception of retrofitting of undamaged public buildings in the vulnerable seismic zones IV and V, and other hazard-vulnerable areas. Preparation of all project components has been undertaken under the Phase L thus providing adequate synergy and time lag for successful preparation. The preparation of the housing reconstruction program is also linked to the on-going work under Phase L and therefore benefits from adequate preparedness. The Project Inplementation Plan (PIP) prepared by GSDMA outlines the implementation of the IDA assisted reconstruction program, of which the proposed Project is a part of. An updated PIP will be furnished to the Bank by April 15, 2002. OVERALL INSTITUTIONAL ARRANGEMENTS 43. GOG established GSDMA in February 2001, to coordinate and manage the comprehensive earthquake recovery program GSDMA is registered as a society and is chaired by the Chief Minister. A State Advisory Committee consisting of distinguished experts from different fields, guides GSDMA on all aspects of reconstruction policy and implementation. Within the Govemment, a Central Implementation and Review Group, under the chaimnanship of the Chief Secretary, reviews and monitors the program implementation on a regular basis. At the district level, the district administration, presided by the Collector, is responsible for the implementation of the program An Advisory Committee headed by the In-charge Minister of the district provides gtudance to the district administration in program implementation. At the taluka-level, Additional Collectors/Additional District Development Officers with delegated powers of the Collector and District Development Officers are responsible for program implementation, while at the village-level, an officer of the rank of Deputy Mamlatdar is responsible for coordination of implementation. 44. GSDMA Chief Executive Officer (CEO) is responsible for the overall management and implementation of the proposed Project. The CEO exercises all the executive powers for the implementation of works, and the procurement of goods and services. As GSDMA is still a new entity, efforts to strengthen its institutional capacity are being initiated under the Phase I and will be continued under the Project. Studies have been completed towards designing GSDMA's organization structure, as well as provide it with the statutory authority for carrying out satisfactorily the duties assigned to it. A number of management, technical, and accounting consultants have been engaged to support GSDMA in its regular functioning. 45. The execution of works, and the procurement of goods and services for specific components are done by the responsible line departments, with overall coordination and monitoring by GSDMA. Each line department implementing infrastructure rehabilitation components has formed a Project Implementation Cell to monitor and manage the sector program At the field level, engineering circles are strengthened to undertake and complete the works within the specified period. The staff in a number of line deparinents, including Roads and Buildings (R&B), education, water resoures and urban development, have prior experience of implementing Bank financed projects, and are generally conversant with the Bank procurement guidelines. Additionally, they are provided training, as required. Each department indicating the staff and consultant needs for engineering design and supervision, and management costs prepares an action plan. Quality audit, design audit and completion audit by a thid party has been built into the system 24 Fig. 1. Overall Institutional Arrangements Disaster Management Capacity Buflding \ I / GSDMA: Consultants NGO's Revenue dept Roads & Buildings Dept Water Resources Dept. Commnunity 4 | ---- Home Departnent Urban Dev. Dept DishiictAdmin. ] | Collector DDO Technical Education Panchayat Department Manmlatdar TDO INsTnTUTIONAL ARRANGEMENTS FOR INDIVEDUAL COMPONENTS Permanent Housing Reconstruction 46. Housing recovery program will be implernented by the Revenue Departent in nral areas and by the Urban Development Department in urban areas as per implementation an-angements agreed for and based on the success of Phase L GSDMA wil coordinate housing recovery program and will continue to perforn the following functions associated with housing rehabilitation: (a) coordiate state-wide housing recovery program with the many entities, including the relevant line departments; NGOs, private sector small contrctors and large industrial houses, banks, financing institutions and micro-finance institutions; (b) provide policy guidance; (c) manage financial resources and disburse funds to the decentralized centers, as apprpriate; (d) ensure tight quality control in aspects of housing construction, financial management, procurement, and facilitate independent audits; (e) coordinate overall standards in the housing reconsuction process for all the participants in the public-private pantnership program; (f) provide and/or facilitate appropriate technical assistance for all aspects of program implementation; (g) manage housing program related databases; (h) coordinate community outreach and public relations for the programn; (i) provide overall 25 process and quality supervision and monitoring, and ensure that these fumctions operate properly at the decentralized levels; and () ensure that processes are in place for two-tiered grievance redressal mechanisms. 47. An owner-driven decentralized implementation approach has been adopted for housing reconsttuction implementation, with the District Collector coodinating implementation activities at the distict level, R&B engineers for technical supervision and certification of construction, and Village Committees at the local level for facilitating implementation and ensurng community oversight The communities, NGOs and juiior engineers at the local level and R&B engineers at the district level will carry out supervision and monitoring of all aspects of construction. An independent quality audit by National Council for Cement and Building Materials (NCCBM) will be carried out for this component Reconstruction of Public Infrastructure 48. Public Buildings - Reconstruction: Entire rehabilitation work is classified under three major categories: (a) minor repairs, (b) major repair and retrofitting, and (c) reconstruction. All minor repairs work would be completed under Phase L Primaiy Education Department, Higher & Technical Education Depatrtent R&B Department, R&B (Panchayat) Department, Home Department and Urban Development (UD) Department are responsible for implementation of this subcomponent 49. Repair & reconstruction: The mid-day meal (MDM) kitchen sheds will be repaired/econstucted by the Village Civil Works Committee (VCWC) in the District Pnrmary Education Project (DPEP) districts. Rajkot being the only non-DPEP district, VCWCs will be established in the villages, modeled after the successful DPEP model, especially for repair and reconsiuction of the MDM kitchens. All DPEP VCWCs are well experienced in undertaking small building works and have already successfully demonstrated their capability in the repair and reconstruction of school buildings financed by various donors. The system and process of civil works construction using Bank norms is already in place under DPEP. The ratings for implementation capacity and project management under the DPEP in Gujarat have been satisfactory. 50. The implernenting agency for the reconstruction and repair of teacher training colleges, and the government technical education institutions will be the Department of Higher & Technical education. Innovative designs have been prepared for technical education under the earlier World Bank Technical Education Project L These and the designs for teacher training colleges which have to be newly created, shall be earthquake and cyclone resistant While the R&B Departnient will be responsible for repair, due to its limited implementation capacity in the context of the overall workload services of consultants will be obtained to prepare plans, designs, and bidding documents. 51. R&B Department will implement strengthening and reconstruction works of all state government buildings other than those of the Home Department. Architectural plans of various buildings to be reconstructed shall be prepared through the office of the Chief Town Planner and the Architectural Advisor under the R&B Dpartme, and the structural designs for these buildings will be done by the design organization of the R&B Department. Both organizations possess the necessary capacity and have already made progress in their works. R&B will engage consultants for structural design for major repair works of some of the residential and non residential buildings where non-estructive tests are to be conducted to determine the strength of the building stucture to withstand the earthquake and wind stonm The works will be camied out through contracts and will be supervised by the R&B department engineers. Consultants will be hired for technical and quality audit for all major repairs and reconstruction works. 52. R&B (Panchayat) will implement the reconstruction of 260 buildings of the Panchayat Department This Departent has already taken-up a nurnber of reconstruction of buildings in strict compliance with the technical requirement for earthquake and cyclone resistant standards, and in line with the Bank procurement guidelines. A consultant is being hired for quality audit 53. The repair and reconstruction of administrative buildings, residential quarters, and procurement of furiture and technical assistance, etc. for the Home Department will be undertaken by the Gujarat State Police Housing Corporation (GSPHC) . The agency is experienced in planning, designing and supervising building construction. However, it is not familiar with guidelines and procedures applicable to Bank funded projects, and this is expected to cause some delays in implementation. This will be mitigated through training 26 of the staff in procurement, disbursement and financial management aspects of Bank assisted projects, as well as by using consultants, where requiued Third party quality assurance for all reconstruction works will be used to ensure quality construction compliant with the earthquake and cyclone resistant standards. 54. Vanous municipal corporations and municpalities on behalf of the Urban Development Department will carry out reconstruction of their buildings. While Ahnndabad Municipal Corporation (AMC) has capacity to undertake the engineering, procurement and constrction by themselves, other pardcipating municipal corporations and municipalities will need techiical assistance in the reconstruction effort Third party quality assurance will be used for all reconstruction works to ensure compliance with the earthquake and cyclone resistant standards. 55. Public Buildings - Relrofiffing: R&B Departernt shall be responsible for state government buildings, R&B (Panchayat) Department for panchayat buildings, and UD Departrent for the buildings of urban local bodies. Each of them will act under a common principle and under the supervision of GSDMA. 56. The respective line departments with required information will conduct a detailed inventory of hazardous buildings. GSDMA will hire consultants to assess the buildings for seismic and cyclone vulnerability, and identify those that should become part of the retrofit program GSDMA will compile the lists of hazardous buildings that should qualify for the retrofit, according to perceived levels of building's vulnerabity. This information will be entered into a GIS-based database monitoring system. The system would be a project managernent tool for monitoring the progress of works on any of the individual buildings, sectors as a whole (e.g., all school buildings), or building types (e.g., all pre-fabricated school buildings), allowing versatlity in supervision, quality audit and timely "trouble-shooting." GSDMA, using consultants, shall compile a manual or guideline book to include the principal aspects of retrofit techniques recommended through typical retrofit solutions. The consultants will develop retrofitting solutions for typical structnal types, keeping in mind seismic and cyclone resistance, cost-effectiveness and speed of implementation of proposed solutions, and assist the implementing deparrnents in the preparation of sample bidding documents. 57. Several levels of monitoring and quality audit will be implemented. This will include: (a) regular, day-o- day implerentation monitoring performed by the engineering cadre of relevant line deparitents, after they have undergone rigorous training in this respect; (b) expert implementation monitoring and quarterly supervision of buildings under retrofit independently done by consultants who suggested the retrofitting measures; (c) quality of building materials checked by and independent group; and (d) rigorous quality control audit through an independent consultant team. 58. Public Buildings - New Construction With regard to new construction of control rooms, institutions such as GSDMA, GIDM and ISR, the R&B Depariment will undertake the necessary construction works, while the necessary architectural designs will be prepared through the Office of the Chief Town Planner and the Architectural Advisor under the R&B Departrnent, which possesses sufficient expertise, experience and capacity to undertake this work. Its capacity will be bolstered with consultant support, as requie As in odter components, independent audits will be instituted for quality control. 59. Dam Safety and IrTigation: The Water Resources Department (WRD) will implement the strengthening and reconstruction works through its Chief Engineers and field construction circles, with four Chief Engineers and seven Superintending Engineers handling the reconstruction/strengthening4rehabilitation of 185 schemes in Kutch region and 37 schemes in Saurashtra region. The WRD has well organized arrangements for design of darns and appurtenant structures - the Central Designs Oanization (CDO), Gandhinagar. CDO is conversant of the prevailing critena and standards of designs. The Central Water Commission (CWC), New Delhi is providing the necessary technical guidance for expeditious finalization of the designs. For on-site design solution, WRD has set up design units in Bhuj for Kutch region and in Rajkot for Saurashtra region. The designs will be reviewed and cleared for implementation by the two Dam Safety Panels. 60. GOG will set up an efficient quality management organization to ensure that civil works and related activities are canied out in confomity with supenor construction standards. Presently, there is an independent quality control organization in the WRD, headed by a Chief Engineer directy under the Secretary (Water Resources) and staffed with eight Executive Engineers, two Deputy Executive Engineers and 12 Assistant 27 Engineers. Since the strengthening and reconstruction works are wide-spread and sizeable in magnitude, the present staffing will be augmented through re-deployment Accordingly, GOG will post a Superintending Engineer (Quality Control) headquarteed at Bhuj, and also increase the strength of Deputy Executive Engineers to 24 and Assistant Engineers to 48. This will strengthen the quality control set up, particularly for the works in the Kutch region where a wide range of remedial works are to be camied out WRD will also hire itemational consultants for quality assurance, technical audit, implementation management and reporting. 61. Roads and Bndges: Under the Bank financed Gujarat State Highway Project (GSHP), the R&B Department has shown strong project preparation and implementation capabilities. Thus, to ensure the smooth implementation of the emnergency road rehabilitation component, it was agreed that the Phase I program would be implemnted using the same instituional and project implementation arrangements that are being used to implement the GSHP. Within the R&B Department; the staff that is already in place to implement the GSHP will be also responsible for managing the implementation of the energency road rehabilitation component, since they are already fully trained and conversant in Bank procurement, disbursement, financial management and monitoring procedures. As in GSHP, consultants have been hired for supervision and project management. The works are progressing in a satisfactory manner demonstrating that the above arrangements have worked very well. 62. Intemational consultants will be hired to investigate 700 krns of damaged state roads and suggest measures needed for rehabilitation and stngtening the roads and bridges. Conractors will be appointed for canying out the works which will be supervised by the departmental engineers under a quality assurance regime to be supervised by independent consultants. Community Participation Support 63. GSDMA is the implementing agency for this component The Information, Education and Communications activities (preparation of print and audio-visual materials) will be contracted out to specialized agencies. The sub-centers (Setus - Bridges) wilU be established through NGOs or the Distcict Rural Development Agencies, and will be supported to fonr, train and nurture village self-help groups where there are no other suitable community-based organizations. Village-level meetings, analysis, planning and training wil involve village commuities and groups, assisted by the Setus and other NGOs. The gender sensitization and disaster preparedness workshops will be caried out by competent NGOs contracted by GSDMA. Procurement of the energency response equipment wil be the responsibility of GSDMA. Strengthening of the gram sabhas wil involve the district administrations and line departments. 64. Community participation and capacity building activities would be implemented by a tri-partite partnership between GOG, local NGOs and beneficiaries, including community organizations such as gram panchayats, women's groups, user groups and others. A joint coordination group wil review standards and set the broad strategy and guidelines for implementation. The social needs and impact assessments (already contracted out to specialized agencies) wiU identify the strengths and weaknesses of these organizational arrangements over time, permitting their strengthening where necessary. GSDMA's current capacity to manage these activities wiUl be supplemented by experienced sociologists contracted to oversee the implementation of the component Disaster Management 65. GSDMA is the responsible agency for implementation of this component A Task Force is providing guidance to GSDMA on the broader aspects of disaster management The recommrendations of the Task Force will be taken-up for implementation in phases. GSDMA wilU hire consultants to conduct feasibility studies and procure necessary equipment for sitrngteing control rooms, state-wide emergency communication system, search and rescue, firefighting and information technology. Project Management 66. GSDMA and the line departments who wil implement the Project, will use the resources available for project management This will include the costs of operation and maintenance of additional offices, equipment and vehicles; hiring of offices, equipment and vehicles; salaries and allowances of contractual staff, 28 consulting services for program management, quality assurance ,monitoring and evaluation, environmental and social assessmrent and safeguard compliance, and financial, technical and procurement audits. PROCUREMENT ARRANGEMENTS 67. Goods, works and consulting services financed under the Project shall be procured in accordance with the Bank's Procurement Guidelines and Guidelines for Selection and Employment of Consultants, and using the Bank' s India-specific model standard bidding documents. Each contract for works estimated to be equivalent of US$500,000 or more shall be subject to prior review by IDA. Each contract for goods estimated to cost the equivalent of US$200,000 or more shall be subject to prior review by IDA. Each contract for ernployment of consulting finns estimated to cost US$100,000 or more and US$50,000 or more in case of individual consultants shall be subject to prior review by IDA. All other contracts will be subject to the post award review. Particular emphasis is being given to Quality and Procurement Audits to be carried out on a continuous basis, to verify that the activities financed under the component follow the eligibility criteria and are implemented in an efficient manner (Attachrnent 4 on Procurement). DISBURSEMENT 68. The proceeds of the proposed Credit would be disbursed against eligible expenditures in the following percentages: 90 percent of civil works; 100 percent of foreign expenditures for equipment and materials; 100 percent of local expenditures (ex-factoxy cost) for equipnent and materials; 80 percent of local expenditures for other items procured locally; 80 percent of all expenditures for consultants' services, 100 percent of all expenditures for other consultants, training, workshops and study tours, and 70 percent of incremental costs for running and operation in the first year, 50 percent in the second year and 30 percent in the third year. Disbursemnents will be made against Statements of Expenditure for aUl contracts below the prior review limits including those contacts for the employrnent of consultants costing less than US$100,000 for firms and US$50,000 for individuals. Disbursements from IDA credit would initially be made in the traditional system (reimbursement with full documentation and against statement of expenditure) and could be converted to the Fmancial Monitoring Report (FMR) based disbursement at the option of GOG and GOI after the project successfully demonstrates generation of quality FMRs. 69. The reallocation of funds under Phase I (para. 16 of MOP) has resulted in the need for provision of retroactive financing of US$40.0 million under this Project Retroactive financing wil allow completion of permanent housing reconstruction which was started under Phase I will cover eligible expenditures from February 1, 2002. FINANCIAL MANAGEMENT 70. The Project has a financial management system that would be able to account adequately for project resources and expenditures. An Operations Manual laying down in detail the financial policies and procedures for the Project has already been prepared and is being used for Phase L The key financial staff are also already in place at GSDMA and have had experience on Phase L Many of the line depatments assisting GSDMA in the execution of the Project also have participated in implementation of Phase L Considering the significance of the role of line deparftmts in the Project, Fmancial Management (FM) assessment was camed out for GSDMA and the major line departments participating in the Project 71. GSDMA is cunenfly using an off-the-shelf software for its accounting and financial reporting needs. Fmancial statements for the project are generated through this software and specific reports required are prepared using the data from the system on spreadsheets. The input from the line departments to GSDMA is in manual mode. 72. The Project will be budgeted in GOG budget as an identifiable single head budget item each year. The funds will flow from GOI to GOG, and from GOG to GSDMA, with GOG assuming the responsibility for transferring the fuids to GSDMA within five days of it receiving the funds. GSDMA will advance fuids to the line departments based on their funds status and projected fmuds requirement. 29 73. The fund transfers from GOG to GSDMA were in line with the fund requirements. A Director Fmance heads GSDMA's finance function. An experienced Controller of Accounts who provides leadership and strategic direction on financial aspects of the projects assists him The line departments in the Phase I have appointed nodal financial officers who undertake the accounting for the respective depatments for the project GSDMA will advance funds to the line departments only after it has received a confinnation from the line department that (a) a separate bank account has been opened in the name of GSDMA to be used specifically for the project, and (b) the nodal finance person who would interact on behalf of the line department has been appointed. 74. Audit: The audit of project expenditure incuned by GSDMA and the participating line departments will be conducted by independent auditors acceptable to IDA, under terms of reference (TOR) also satisfactory to IDA and will be furished within six months after the end of each year. Notwithstanding the audits, certificate of expenditures from an independent auditor acceptable to IDA shall be furnished by GSDMA. The certificate for the half year ending September will be furished before the end of Novemnber and for the year ending March will be fumnished no later than June 30. The audit report (including on expenditure incurred by the line departments) for the initial six months ended September 30, 2001 for the Phase I was carried out by Accountant General (Audit), Gujarat and the report was submitted in time. However, the audit report is qualified and has some important observations - mainly on the housing sector. GSDMA has submitted a detailed action plan on major audit observations and it is in the process of corecting the shortcomings. Analysis of Audit Issues 75. In the initial six monthly audit report for the immediate phase for the period ended September 30, 2001, the statutory auditors (Auditor General (Audit) - Gujarat) made audit observations related mainly to the housing sector. The observations include a few instances of irregular release of cash assistance, fund flow delays, payment for work not actually executed, inadequate record keeping, excess/duplicate payments to the beneficiaries and incomplete bank account reconciliations. The intemal auditors have also indicated some areas of concem, again mainly in the housing sector on issues of excess/duplicate payments being made to the beneficiaries, inadequate documentation, irregular payments and incomplete bank account reconciliations 76. An analysis of the audit observations indicated that: (a) in companson to the total number of transactions (the intemal auditors are doing a 100 percent check in Phase 1), the number of observations was not significant Out of a total coverage of Rs. 2,285.8 million, the queries were raised (including many of them on procedural lapses), on an amount of Rs. 38.4 million (1.68 percent); (b) the number (1.44 percent) of observations on the Bank financed housing categories are lower than the number (2.62 percent) of observations for non-Bank financed activities; (c) there were no discemable geographic trend to indicate problem districts; and (d) there was significant improvement in understanding and administration of the second installment of financial assistance on housing The action plan and the impact analysis report indicate the action plan drawn should satisfactorily address the statutory and intenal auditors' observations (also refer Attachment 5 on Financial Management). The action plan, besides addressing the audit observations point by point, also includes measures to strengthen the control environment The proposed measures include: deputing a separate internal audit team to verify the timely resolution of audit observations, appointment of one officer at GSDMA to exclusively monitor audit reports resolution, completion of bank account reconciliation statements, streamlining the process of preparation of withdrawal claims, etc. 77. Most of the measures mentioned above have already been initiated. A special intemal audit team has completed a compliance review in Taluka Development Office CIDO) Bhuj and Mamlatdar Dhangadhia, and has reported marked inmpovement in compliance with audit recommendations. About 70 percent of bank account reconciliations have been completed and work to complete the remaining is in progress. A disbursement/audit workshop was held at GOG's initiative which helped in steamlhng the process of preparation of withdrawal claims. Also modifications are being made to the Operations Manual on issues such as approval of the schemes, procedure for award of works and services, to strengthen the internal control environment 78. The resolution of major observations of intemal and extemal auditors will be completed by August31, 2002. 30 6. ACTION PLAN ACTIONS AGREED WITH THE GOVERNMENT 79. The following key actions have been agreed and finalized with GOG during Negotiations. (a) GOG will prepare a Disaster Management Policy focusing on capacity building, educaion and communication to reduce the impact of disasters and to ensure better preparedness. The Policy will be adopted by GOG by September 30, 2002. (b) With the objective of establishing a sustainable long-term disaster managerment system, GOG will inrduce legislation in the form of the DisasterManagement Bill by December31, 2002. (c) GOG will address the mnajor action plan items emerged from the audit observations made in the half yearly audit (for period ending September 30, 2001) report of the on-going Phase I program by August 31, 2002. (d) The Project funds will flow from GOI to GOG and from GOG to GSDMA, with GOG assuming the responsibility for fund transfer to GSDMA within five working days of receipt of funds. (e) GOG will carry out social and environnental analysis through project completion to assess both positive and negative (adverse) social and environmental impacts of the reconstruction program on different stakeholders, especially the vulnerable groups. Quartery reports wil be fiunished to the BankL (f) Actions on non-structwal aspects of dam safety, for example, training of project staff associated with flood forecasting and flood monitoring, training of village/taluka level government functionaries and village representatives on disaster preparedness operations, preparing and implementing reservoir operation and maintenance, will be camed out by GOG prior to re-commissioning of the earthake-affected dams. (g) Pending revision of the Building Codes by the Bureau of Indian Standards, GOG will enforce the present Building Codes in the urban local bodies of the eardquake affected area effective September 30, 2002, and enforce the revised Building Codes as soon as it is made available by the Bureau of Indian Standards. App iate guidelines for construction of safe buildings will be evolved by GOG for the rural areas and dissemination of it throughout the State will be taken-up effective September 30, 2002. GOG will address the major action plan items emerged from the audit observations before August 31, 2002. LMPLEMENTATION ACTION PLAN AND MONITORING INDICATORS 80. A detailed Implementation Action Plan (LAP) has been drawn up for the proposed Project The IAP outlines the detailed implementation schedule for components and subcomponents. A summary chart is given under Attachment 6 on Irmplementation Activities and Monitorng Indicators. Detailed monitoring indicators have been drawn up to review overall project outcomes, as well as review progress on individual components. 31 Table 3. Monitoring Indicators for Project Components Conwnent Objdives| Pi Ageny Pefo Inweln&*ors T Moniwo g& Ewzaion Hou.fn _ _ _ _ _ _ _ _ _ _ _ _ _ _ Ower-diven reomstucdon/frdabihtation GSDMA (a) 135,000 houses r ecn ted GSDMA xmthly, quartedy of destroyed/damged housing.. and 75,000 houses rehabilitated. progress reports. Third party audits, Bank reorts. Capacity building for mnulti-azard resistant (b) 1000 engineers and 5,000 constucion masons tned m hazad resistant consftucfion Public efrsrucureRecod ucion Dam safet & Inig on Reabilitation of dans to hazard resistant WR D ent (a) 37 dams in Sanurshta and WR Depanment monlhly, staxlards. 185 das in Kutch strengtdened quartely prgress reports. Ihird to hazrd resistant standards. party audits, Bank reports. Pubicbidings Repair, rehabilitation, reconstruction of R&B Dep an (a) At least 1200 public buildings Monhly, quarterly prgress public buildings to ensue smooth pbhc GSPHC, R&B p b ia to hazard reports of line departmnnts. administrationL Pandrayat DepartmentS resistant standards. GSDMA progress reports, Third UD Deparlment, AMC party audits, Bank reports. Retrofiting of critical udanagedpublic (b) At least 500 public uildings R&B Deparmtmrtmonrily, buildings in zones IV & V to protect against retrofitted to hazard resistant quartery progress reports, future disasters. standards. GSDMA progess reports, Third party audits, Bank rpor Setting up of new bildings to s greng (c) New office buildings GSDMA progress reports, Third disaser management capacities. constructed for GIDM, GSDMA party audits, Bank repor and ISRP Roads and Bridges Imprvement of ea1quake-affected state R&B Depment (a) Around 700 km of roads and R&B Department monthly, road network, along with associated associated stnir quartery prgress eports, ird s ues for ensuing cnnectivity. _l i l _ party audits, Bank report CommuityPartlipation Reduction of vulnerability of communities GSDMA (a) At least 500 self-help groups GSDMA monty, quarteriy against future em crgenies and capacity consituted in villages. progress reports. Third party building of communities for disasLter (b) At least 1000 gram sabhas audits, Bank repor management thrugh staholder conducted. partidpation Diste M _aemn Capadty Buikfin Enhanced disaster management traugh GSDMA (a) Gujarat Disaster Managemrnt GOG State Gazette, GSDMA setting up of regulatory and intitutional Act legislated mmthly, quartely progress famework (b) Gujarat Intitute of Disaster reports, Bank repor Management and hIstitution for Seismic Research setup. Enhanced disaster management through GSDMA (a) State-level disaster improved capacities. managem ent plans prepared (b) State-wide emmgency communications network establialied and made fincfional. (c) State-wide contl rooms set up andi made functionaL 32 Attachment 1 Social Development Recovery Shutg and ProjectAciities 1. Immediate and rnediumerm recovery and reconstruction, particularly that related to housing, education, health, civic services and livelihoods, required attention to a number of social issues and needs. These included infomation dissemination and communication, community consultation, participation and organization, and local capacity building. 2. CommwUn Parjicxation. In the Phase L GOG implemnented a number of activities that elicited the involvement of affected people, including the damage assessment surveys, release of housing assistance, information dissemination, trainng, and establishment of a grievance redressal mechanism Under the proposed Project, community awareness, participation and organiation will be strengthened to ensure optimal recovery of the affected communities and institute long-term disaster preparedness. Some of the activities that are proposed are: preparation of village-level disaster management plans, formation of village level self-help groups, 'setus' or support sub-centers, gender sensitization of officials and communities to ensure attention to women, vitalization of the gram sabhas to improve information dissemination and interactions between workers and communities, enhance community decision-making and equity, and institute social audit of the recovery program. Community activities will involve NGOs extensively, particularly in the spread of information and establishment of support structures. The on-going social assessments will assess the extent of participation among the affected communities, particularly the most vulnerable, and provide feedback to GSDMA to strengthen their participation. 3. Given the size of the atea and the large numbers affected, people have been well reached by the surveys and financial assistance, and some services such as education. Efforts to reach affected people with other information (e.g, on seismic-resisLant construction) and services such as health care will be continued. In parallel with this, the tasks of reconsinuction and long-term disaster preparedness require the strengthening of community organizations. GSDMA, District Administraons, and project partners such as NGOs would augment information flows to the affected rutal and urban communities, emphasize and accelerate community organization and the establishment of support mechanisms, and improve both the quantity and quality of capacity building activities. 4. Partnershivs Numerous NGOs are working in various ways as partners to GOG to implement the program As the reconstruction program progresses, additional private organizations (with the requisite skldls) will be involved in developing community participation and organizations, assisting weaker sections to obtain program benefits and other services required to rebuild their homes and lives (especially in remote villages or those with strongly dominant groups), and more specialized ones will assist in dealing with specific problems. 5. Trrnsparen-v and Grievance Redressal The institution of simple tranwarency mnechanisms will considerably enhance people's satisfaction. For example, damage assessment lists for each village (and urban ward) will be displayed in public places, along with infonration on the installments paid. A grievance redessal mechanism is in place, and is expected to resolve cases of exclusion and inadequate compensation. SociaiAssessment 6. The proposed Project would utilize the findings of the continuous Social Needs and Impact Assessment that was put in place during Phase L The assessment is identifying the social needs of the affected people, especially of vulnerable groups such as women, children, scheduled castes, scheduled tribes, minorities, the disabled, destitute and aged. It will also idenify the positive and negative social impacts of the recovery program on all stakeholders, including the effects of the institutions involved (govenmient, NGOs, panchayati raj, corporate bodies, etc.). Attention will be paid to needs and impacts related to disaster preparedness and management in the future. The social assessment includes attention to identifying land acquisition and resettlement-rehabilitation issues. The information from the participatory impact monitoring will be provided regularly by the agencies contracted to cany them out to GSDMA and other relevant authorities for follow-up action to mitigate any possible negative effects and enhance positive effects of the program 33 7. The main output of the assessments would be adequate, representative, quantitative and qualitative data which would enable management of the social dimensions of the recovery program over the life of the Project The SAs would continue throughout the project period and thus provide an independent mechanism for monitonng social impacts. Other community-based mechanisms, such as grievance redressal committees and public posting of beneficiary lists, would also help to ensure inclusion and equity in the distribution of project benefits. Social Safeguards 8. Two social safeguard policies apply to the Project O.D. 4.30 on Involuntary Resettlement and O.D. 4.20 on Indigenous People. 9. Involutary Resettlement GOG has provided the Bank with information on the ownership and status of large sites used for temporary shelter in Phase L partal relocation of villages and debris disposal, and confirmed that no displacement or land acquisition occurred in establishing these sites. Relocation (i.e., pnmary displacement due to the earthquake) has been minimal on account of GOG's policy and efforts, and public preference to reconstruct housing and public infistructure in situ wherever possible. In the case of a few communities requiring relocation, GOG's policy is to reconstruct on government-owned or donated private lands. No land acquisition is currently envisaged in the Project and, hence, secondary displacement is considered unlikely. However, on account of the extent of the affected area, the difficulty of rubble removal in certain locations, and community-driven decision-making, the Project has prepared for the possibility of land acquisition during its course. In Phase L GOG agreed to consult the Bank on relocations involving more than 25 families, and to implement the principles of full compensation and livelihood restoration for any secondarily displaced persons. GSDMA has reviewed relocations case by case and provided the Bank with appropriate infonnation establishing that no instances of secondary displacement have occunred to date. GSDMA will continue to review any additional cases that may arise, document their details, and ascertain that the agreed procedures on R&R (below) are being followed. A Land Acquisition Assessment Data Sheet has been prepared and agreed with IDA- 10. If private land were needed for rlocatiorleconstruction, GOG would assist the relevant community to purchase the land on the principle of willing seller-willing buyer rather than resortng to land acquisition under law. If such land acquisition is necessary and/or the possibility of secondary displacement were to anse, the Government would inforn the Bank and prepare an appropriate Resettlement Action Plan. Decisions about land acquisition would be taken only after full consultation with all affected people, and full disclosure of infornation and entitlements. The owners and occupants of the acquired land would be eligible for support based on the Bank's Policy on Involuntary Resettlement The key principles for such support are that acquired land and other private assets must be compensated at replacement cost, and support must be given to regain livelihoods if earning capacity is reduced as a result of the land acquisition. In such cases, GOG would contract an agency experienced in planning and implementing Resettlement Action Plans to ensure proper consultation, compensation, and relocation assistance to the displaced persons. 11. Indigenous People. To meet the requirements of O.D. 4.20, the Project has collected infonnation on the presence of Indigenous People ('Scheduled Tribes') in the affected areas. GOG's policy of paying housing assistance on the basis of actual danage assessments provides for equitable treatment of vulnerable groups, including Scheduled Tribes. Further, a gnievance redressal process is accessible to those who wish a re- assessrnent of damage to their property. No instances of discrimination against scheduled tribes have been brought to light by this process, the media, research studies, or the on-going social needs and impact assessmnents. During this Project, GOG would put the following decision process in place for the preparation of Indigenous Peoples' Developmnent Plans (IPDPs): (a) The continuing social assessments would identify and documnent the prsence of tribal people amonrg the earthquake affected, and whether and how they are able to assert their interests and rights within the ProjecL (b) It would also monitor the access of these tribal people to project benefits and impacts. In the event that the Project has significant (expected or actual) positive or negative impacts on the distinctive cultual or economic way of life of the tribal people, and/or if they were not able to assert their rights, an IPDP would be prepared. (c) The IPDP would be based on the infonned participation of the tribal people and would present strategies to address their concems. If adverse impacts were anticipated, the IPDP would determine measures to avoid or ritigate harm 34 Implemn tadon and IsitauonalArrngements 12. GSDMA has contracted the Social Assessments to independent agencies, and would be responsible for contracting suitable agencies to carry out the RAPs and IPDPs. The Community Participation activities would be managed by GSDMA and implemented through local govenunent agencies, by NGOs on contract or community-based oganizations. 35 Aftachment 2 Environmental Assessment and Environmental Management Plan 1. Environmntal Impads of the Eathquake. The eaiquake that hit Gujarat had a nunber of environmental impacts, both direct and indiect These impacts have been assessed in order to identify measures that could be considered during the reconstruction effort and as part of a broader disaster management framework and strategy. The Gujarat Earthquake Recovery Program Assessment Report (March 14, 2001) included a summary of a Rapid Environmental Impact Assessment (REIA) which outlined the main environmental issues as they were understood shottly after the earthquake. The REIA was followed by a more comprehensive Rapid Environmental Appraisal (Gujarat Institute of Desert Ecology - March 2001) which further outlined the issues and options with regards to the reconstruction effot in the context of the delicate ecology of the affected ama The direct impacts identified included the generation of large amounts of debris and rubble requiring proper disposal and damage to water management infrastructure, among others. These assessments also recognized that additional impacts would need to be mitigated as a result of the reconstruction efforts. These environmental studies are therefore important background documents to the environmental assessment (EA) exercise that was developed and is being implemented as part of the project preparation work. 2. Environental Management Framework. The envirnmental management frarework covering the reconstruction effort continues to evolve as the issues facing the reconstruction program become clearer and the scope of the environmental challenge is better understood. Much of the initial reconstruction work was done under extreme emergency measures and some mitigation measures are likely to be required to minimize the long term impacts of what was done in the early days following the earthquake. In addition to the need to mitigate the environmental impacts of the reconstruction program, it has also become apparent that the environmental management framework needs to be expanded and up-streamed to address issues in the reconstruction strategy, such as town planning and temporary camp management. This has lead to the development of a more comprehensive approach to the EA prcess, as illustrated in Figure A2.1. The EA process seeks to identify opportunities for upstream enhancements of project components and mitigation of potential impacts, while recognizing the constraints imposed by an emergency operation. The recent completion of the Gujarat State Envirmntal Action Plan camied out by the Gujarat Ecology Commission (GEC) provides a comprehensive set of background reports and studies to support the EA. 3. The environmental management framework includes a number of background studies. Environfmntal mitigation measures are being included in the project design as and where applicable and the project is expected to have a net positive effect on the environment. In fact, the environmental assessment (EA) process is being canied out in a way that emphasizes the timely preparation of an Environnmtal Management Plan (EMP). One of the first outputs of the EA process is an Environmental and Social Analysis report, including an EMP and an EMP implementation plan, to be implernented by GSDMA and which the Bank will supervise. Given the ongoing nature of the reconstuction effort, the EMP will be updated on a regular basis as additional recommendations emerge from the EA work. 4. Envuromnentdand SocialAnalysis. As mentioned above, an Environmental and Social Analysis (ESA) was undertaken to assess the environmental and social issues associated with the project, how these will be addressed in the context of the Bank's environmental and social guidelines, and the necessary mitigation measures required to minimize the impacts of project implementation. A number of the environmental issues were found to be related to debris, rubble and materials management, and a number of provisions have been identified to mitigate the impacts of the reconstruction work. The ESA also considered measures to deal with the rehabilitation of temporary shelter sites and impacts associated with road and bridge repairs, among others. 36 Figure A2.1- Enviromental Mnagement Frmeweork 1 . , , , , _ ., .. _. __ ..... . _.- -. - ........... "----- -- ---- ------ --- -- - ---------- - - - -..............-.. .............. . ......... .. . ... ..... .. ......... .....-.................... * Stakeholder Consultation and Participation Fr.a mex:-Ja .................. ... ...,.._............... .......... .... ....... .... ........ . ...... ...... ....... . _ _ . .... .. ... . I .. " ~~~~~~~~~~~~~~~~~(r.J_ _ .,- . Prt I ~~~~En-siruomenetal %s9,Nwc-if3 4': 1 Copoen s l;- - ; 1 [{ A Unaa .-. ,XI . PidnsneSa*m e;forvnnma lc nPumRcnanet Method Total Cost ICB NCB Othersi NBF A. EHOUSING 1. Works 197.2 1972 (177.5) (177.5) SUB-TOTAL OF COMPONENT A 197.2 197.2 (177.5) (177.5) B. PUBLIC BUIlNGS Bi: EDUCATION 1. Worts IZ2 03 125 (11.0) (0.3) (113) 2. Goods 1.2 13 2.5 (1.0) (10) (2.0) 3. Consutancy 0.2 0.2 (0.1) (0.1) SUB-TOTAL 13.4 1.8 15.2 (12.0) (1.4) (13.4) B2: PUBLIC BUILDINGS _ 1. Works 61.8 61.8 ________________________(55.6) (55.6) 2. Goods 1.5 12 2.7 (12) (1.0) (22) 3. Consultancy 2.5 2.5 (2.0) (2.0) SUB-TOTAL 63.3 3.7 67.0 (56.8) (3.0) (59.8) B3: RETROFIlTING 1. Works 25.3 25.3 (22.8) (22.8) 2. Consultancy 04 0.4 (03) (03) SUB-TOTAL 25.3 0.4 25.7 (22.8) (0.3) (23.1) B4: DAM SAFEY & IRR1GATION 1. Works 76.7 76.7 (69.1) (69.1) 2. Consultcy and Traing 12 12 ________ (1.0) ________ (1.0) SUB-TOTAL 76.7 12 779 (69.1 (1.0) (70.1) BS: ROADS AND BRDGGES 1. Works 48.6 48.6 (43.7) (43.7) 2. Constncy 2A 2A (1.9) (1.9) SUB-TOTAL 48.6 2A 51.0 (43.7 (1.9) (45.6) SUB-TOTAL OF COMPONENT B 227.3 9.5 236.8 (204.4) (9.0) (213.4) 44 C. COMMUNITY PARTICIPATION SUPPORT 1. Goods 34 3.0 64 _______ ________ (2.7) (2.4) (5.1) 2 Consltancy 22 2.2 (22) (2.2) 3. Otier 3.9 3.9 _ _ _ _ _ _ _ _ _ _ ~~~~(1.7) _ _ _ (1.7) SUB-TOTAL OF COMPONENT C 3A 9.1 12.5 ________ (2.7) (63) (9.0) D. DISASTER MANAGEMENT 1. Goods 31.2 7.1 2.5 40.8 (25.0) (5.6) (2.0) (32.6) 2. Consultancy 7.9 7.9 ______ ________ ~~~~~ ~~~~~~~ ~~~~~~~~~(63) __ _ _ _(6.3) 3. Odher 2.4 2.4 (1.1) __ _ _ _ _ _ (1.1) SUB-TOTAL OF COMPONENT D 312 7.1 12.8 51.1 (25.0) (5.6) (9.4) (40.0) FE PROJECTMANAGEI2ENr I1. Consultancy 3.4 3.4 (2.7) (2.7) 2. Odthr 2.6 2.6 _____ ~~~~~~(1.5) (1.5) SUB-TOTAL OF COMPONENT E 6.0 6.0 (4.2) (42) SUMMARY 1. Wodrs 224.6 03 224.9 (202.1) (03) (202.4) 2. Goods 31.2 14.9 6A 525 (25.0) (12.0) (5.1) (42.1) 3. ConsultanCY&Trainig 20.2 202 (16.5) (16.5) 4. Opewatng Costs 8.9 8.9 (43) - (4.3) 5. Housing Reconstiuction 1972 197.2 (177.5) (177.5) TOTAL 3L2 239.5 233.0 503.7 _250) (214.1) (2j _ _ (4428) Figures in pa hesis are the amimts tobe financed by the IDA All the costs mclude conngenes. 21 Indudes dvil works, goods, and seices to be prvaned out of Force Accomt and tngh natimnal shoppng, consling services, taiing, tmical assistance, incrernental costs etc 1 Inchxdi contingencies Note: QCBS = Qualty- and Cost-Based Selection QBS = Quality-based Selection SFB = Selection under a Fxed Budget LCS = Least-Cost Selection CQ = Selection Based on Consultants' Quaiafications Oder = Selection of mdividual consultants (per Secion V of Conslants Guidelins), Single Source Selection of Firms or SOE fir Tramiing, etc. Selection of dndviual consultants (per Section V of Consultants Guideines), Comneudal Pracces, etc. N.BF. =Not IDA-financed Figures in parentiesis are the amounts to be financed by IDA 45 Ptior review threshold Table B: Threshold for Procurement Methods and Prior Review Sr. Contract Vahle ent Contracts Subjecd No. Expendiure Category Threshold Method to Puior Rediew (UJS$ thousand) (US$ million) 1. Works All Contracts of NCB US$140.5 million - -Civil Works US$500,000 and 72 Nos. above. All ICB contracts for civil work [if any]. 2. Goods Furst three comntacts NCB US$0.5 million - 3 irewpective of value Nos. All Contracts of ICB US$31.2 nfllion - US$200,000 and above 20 Nos. 3. Consuling Services For US$100,000 and Bank Guidelines and US$18.5 million above for firfs and as stated in Table 'A' US$50,000 and above above. For Idividual Consultants Total value of contracts subject to pnior review: US$180.7 million. [his constitutes about 59% of total costs excluding housing component Overall Procurement Risk Assessment - Medium Frequency of procurement supervision missions proposed: Once in every six months (excluding special procurement supervision for post-review/audits). 46 Attachment 5 Financial Management Arrangements Counby Issues 1. The following country issues will apply: (a) Funds flow. The issue of availability of funds on a timely basis to the project implementing entity applies to the project to the extent of this being a state sector project in Gujarat However, in Phase L GSDMA did not face any fund shortage situation with GOG exhibiting comnitment to the projet. (b) Audit reports. Quality and timeliness of audit reports as the audit of GSDMA will be conducted by a AG (Audit), Gujarat However, the audit report for Phase I was received in time and GOG is in a dialogue with AG (Audit) on a project specific TOR. 2. The following country issues do not apply: (a) Accounting system. GSDMA's existing accounting system is capable of geneting financial management information which could be used for decision making. (b) Fnancial statements. Project Fmancial Statements of GSDMA are also expected to be produced uihike Govt executed projects. However, their audit will present a challenge and GSDMA is in dialogue with AG (Audit) to ensure that these statements are audited Strengths and Weaknesses 3. Strengths: The project has the following strengths in the area of financial management: (i) GSDMA has handled Phase I and the existing project personnel are trained in Bani's disbursement procedures; (ii) an opeations manual has been prepared and is being used for Phase I which details the funds flow process, the accounting anangements, financial pting, auditing etc. and (iii) the financal porting system from the District Collectors to GSDMA for the housing component has worked fairly satisfactorily. 4. Significant weamess Significant weakness Resolution Staffing: Even though GSDMA is adequately GSDMA will not advance funds to a line staffed, some of the line departments are not department till a nodal accounts officer has adequately staffed to satisfactorily account for been appointed and it is satisfied that an receipt and usage of funds project funds adequate arrangement for accounting for receipts and usage of money is in place. GSDMA has adequate capacity to carry out such an assessment. Audit Issues: Both the statutory audit report issued GSDMA has drawn up a detailed action by AG and the internal audit reports issued by a plan on audit observations and is in the firm of chartered accountants have raised control process of correcting the shortcomings. issues, especially in the housing sector. GSDMA will resolve these audit observations by end of August 2002 and initiate recoveries, if required. ImplemenlingEntiy 5. The implementing agency for the project is GSDMA which is a registered society. Chief Executive Officer (CEO) supported by two Additional Chief Executive Officers (ACEOs) from GOG heads this unit For the execution of the project some line departments will support GSDMA. The major line depaitments that are expected to assist GSDMA in the execution of the project are: Roads and Building Department, Revenue Depaltment (including District Collector's and Taluka offices), Water Resources Department, 47 Higher and Technical Education Department, Roads & Building (Panchayat), Home Departnent, Urban Development Department and various urban local bodies. Funds Flow 6. The primary budgeting exercise will be done at the line department level. However, these budgets will be integrated in GSDMA budget and will figure as a single item budget head in GOG budget 7. The funds will flow from GOI to GOG and from GOG to GSDMA with GOG assuming the responsibility for transfering the funds to GSDMA within 5 days of GOG receiving the ftmds. GSDMA will advance funds to the line departments based on their funds stats and projected funds requirement 8. In Phase L fund transfers froim GOG to GSDMA were in line with funds requirements. GSDMA will advance fimds to the line deparlments responsible for the execution of the project activities. The line departments will operate a separate Bank account for receipt and usage of the project funds. StAffin 9. A Diretr Fmance heads GSDMA's Fmance function. A Controller of Accounts assists him The Controller of Accounts provides leadership and strategic direction on financial aspects of the projects. Necessary computer-literate core staff has also been appointed at GSDMA. The line departments will appoint nodal accounts persons who will be responsible for the maintenance of books of accounts and financial reporting for the project activities Accournig Poles and Picedures 10. An Operations Manual has been developed and is in use in Phase L The Manual laid down in detail the applicable accounting policies and procedures. The books of account will be maintained on a cash basis. Standard books of accounts (cash and bank books, journals, ledgers, etc.) will be mnaintained at GSDMA on the compunerized accounting system cuety being used. 11. The Operations Manual also laid down the accounting policies and procedures to be followed by the line departments - consistent with Govt. accounting systems - assisting GSDMA in the execution of the project These guidelines have largely been adhered to in Phase L 12. A Chart of Accounts has been developed to enable data to be captured and classified by expenditure center, project components, and disbuem nt categories. IntemlAudit 13. GSDMA has appointed and will continue to engage a firn of chartered accountants as itrnal auditors with TOR satisfactory to the Bank to stngthen the intemal control system for the project The itemal auditors are expected to carry out a 100 percent check of the transactions. The intemal audit reports, which have been submitted on a monthly basis, have indicated some control observations. GSDMA has drawn a detailed action plan on mnajor internal auditors observations. GSDMA will investigate and resolve all these observations by end of August2002 F.entalAudit 14. The audit of project expenditure incurred by GSDMA and the participating line depariments will be conducted by independent auditors acceptable to the IDA, under terms of reference (TOR) also satisfactory to the IDA and will be furnished within six months after the end of each year. Notwithstanding the audits, certificate of expenditures from an independent auditor acceptable to IDA shall be funiished by GSDMA. The certificate for the half year ending September will be furnished before the end of November and for the year ending March will be furnished no later than June 30. 15. The audit of Phase I is being camied out by Accountant General (Audit), Gujarat GSDMA has submitted, in tine, an audit report (including on expenditure incuned by the line departments) for the Phase I for the initial six months ended September 30, 2001. However, the audit report is qualified and has some 48 observations mainly on the housing sector. The observations include irregular release of cash assistance, delay on flow of funds, doubtful execution of work, inadequate record keeping, excess/duplicate payments to the beneficianes and incomplete bank account reconciliations. GSDMA has submitted a detailed action plan on some important audit observations and is in the process of correcting the shortcomings. Analysis ofAuditIssues 16. In the six monthly audit report for the Phase I for the period ended September 30, 2001, the statutory auditors (AG (Audit) - Gujarat) made audit observations related mainly to the housing sector, as mentioned in para 15 above. 17. The internal auditors also, in their monthly audit reports have indicated some areas of concem, again mainly in the housing sector. Their observations include excess/duplicate payments being made to the beneficiaries, inadequate documrentation, irregular payments and incomplete bank account reconciliations. 18. The intnal auditors carried out an impact analysis of the audit observations - which indicated that (a) in comparison to the total number of transactions (the internal auditors are doing a 100 percent check in Phase 1), the number of observations were not significant Out of a total coverage of Rs. 2,285.8 million, the queries were raised (including many of them on procedumal lapses), on an amount of Rs. 38.4 million (1.68 percent); (b) the number (1.44 percent) of observations on the Bank financed housing categoies are lower than the number (2.62 percent) of observations for non-Bank financed activities; (c) there were no discemable geographic trend to indicate problem disticts; and (d) there was significant improvement in understanding and administration of the second installment of financial assistance on housing. The action plan and the impact analysis report indicate the action plan drawn should satisfactorily address the statutory and interal auditors' observations. Reporifng and Monitoiing 19. The financial reporting from the line departmnts to GSDMA will be on a monthly basis. GSDMA will consolidate the financial reports on a monty basis. In Phase L there was initially a lag in reporting from the line departments to GSDMA which was addressed subsequently. GSDMA and the Bank have agreed on the form and content of annual financial statements and Fmancial Monitoring Reports (FMRs) to be submitted to the Bank on a quarterly basis. The FMR formats are a part of the PIP. 20. GSDMA is cunrently using an off the shelf software for its accounting and financial reporting needs. Fmancial statements for the project are generated through this software and other specific reports required are prepared using the data generated by the system on spread sheets. The input from the line depatments to GSDMA is in manual mode. 21. GSDMA is generating Project Fmancial Statements fromn the system being curndy used and the financial accounting reports are expected to be generated from the same system. The physical progress and procurement reports will be generated off the system Impad of PrcrementAmgements 22. Since the procurement will involve a large number of contracts awarded by line departments, accounting arrangements in the line departments are very important and will be focused during the project implementation. DisbursementAAmngemenls 23. Disbursements from IDA credit would initially be made in the traditional system (reimbursement with full documentation and against statement of expenditure) and could be converted to the Fmancial Monitoring Report (FMR) based disbursement at the option of GOG and GOI after the project successfilly demonstrates generation of quality FMRs. 24. A Special Account would be maintained in the Reserve Bank of India; and would be operated by the Department of Economic Affairs (DEA) of Government of India (GOI). The authorized allocation of the 49 Special Account would be US$60.0 miDion. The Special Account would be operated in accordance with the Bank's operational policies. 25. The project will submit withdrawal applications to Controller of Aid, Accounts and Audit (CAA&A) in DEA for onward submission to the Bank for replenishment of the special account or reimbursement. 26. Disbursenent will be made on the basis of statement of expenditure for (a) civil works for contracts not exceeding US$500,000 (b) Goods for contracts not exceeding US$200,000, (c) consultants for contracts not exceeding US$100,000 for firms and US$50,000 for individuals and (d) increnental qopeming and maintenance costs defined as the costs of operation and maintenance of additional offices, equipment and vehicles, hiring of offices, equipment and vehicles, and salaries and allowances of contractual staff, incurred for the purpose of camrying out the proposed ProjecL 27. Action Plan Action Responsible Completion Date Person Appointment of a nodal finance person in the Secretary - Before the funds are released line departments to ensure there is adequate Line to the line department. accounting for funds received for the project department Investigation and resolution of statutory and CEO - August 31, 2002 intemal audit observations GSDMA Supenion Plan 28. From a Fmanial Managernt stand point, the project will need intensive supervision for the reason of the emergency nature of the pnject and the fact that the expenditure will be incurred by a fairly large number of line departnents at decentalized locations. The focus during the supervision wil be on the capacity building activities including at the line depamnts to ensure that resources and expenditures are being adequately accounted for, review of fuids flow systems and resolution of audit issues. 50 Attachment 6 Implementation schedule Components Base Cost Start End Project Implementation Period Million Rs Date Date 3/02 6/02 9/02 12/02 3/03 6/03 9/03 33 04 9/04 1 3/05 o z Rural Housing 4350.0 03/02 12/02 02z x ui Urban Housing 4000.0 03/02 12103 _ Technical 570.0 02102 04105 . =_u__..- Major Repairs 40.0 06/02 03/03 Reconstruction 420.0 11/02 04/05 Consultancy 104.0 02/02 04/05 . *. Services |c eFuriture & 6.0 07/02 04/05 | Equipment x Municipal Schools 54.2 04/02 11/03 u Minor Repairs 0.2 0402 10/02 .2 Major Repairs 2.3 07/02 04/03 Reconstruction 48.0 07/02 11/03 Consuitancy 3.5 04/02 11/03 _ _ o Services FFurnture & 0.2 0/02 11/03 Equipment | ePublic&Buldings- 1779.3 11101 09104 _ _ _ _ _ _ _ _ m m urn State R&BD c Major Repairs 500.0 11/01 04/04 Reconstruction 1101.5 11/01 09/04 Consuitancy 102.3 02/0 09/04 t Services * Furniture & 75.5 002 904 -- - a-.-aa-au-aa- Equipment ________ 51 Components Base Cost Start End Project Implementation Period Million Rs Date Date 3/02 6/02 9/02 12/02 3/03 6/03 9/03 12/03 3/04 6/04 9/04 12/04 3/05 PublicyBuidings- 111.0 10/01 03 _ IL1 Panchayat Reconstnjction 108.8 10/01 06/03 Consultancy 2.2 04/02 06/03 Services Home Dearmet 372.8 03102 12/04 m u*-m-..-.un*-. r.m Housing Reconstruction 366.8 10/02 12/04 Consultancy 6.0 03/02 12/04 - - u - - - u Services Disaster 395.0 01/03 03/04 _ _ _ _ _ _ _n_.in management InstituteI C-onstruction 395.0 01/03 03/04 _ State R&B 12103 un ~ - - Department 214.1 11/01 Buildings 2 m Panchiayat ..-a mr r. r Department 199. 06102 1`1103 Buildings m Municipal Buildings 627.8 04/02 04/04 .E Consultancy 175 1/1 04/04 - r Servies 1. 10 a. o Strengthening 2000.0 08/02 05/04 - - - -. m m . f co 2 consultancy servioes 100.0 11/01 05/04- u ~ ~ E u n U un nn * o Strengthening 3189.3 12101 03/04 r _ _ _ _EEEE E 5 c o Consuhtancy 03/04 Servces50.0 11/01 .. .. nur nu- nu -*-m 52 z e Consuitancyservices 329.5 092 03/04 _ _ 15E a Furniture & 17. 1 0 ugprne& 1D7565 01/03 03/04___________________ 0 ~ Equipment Co Operations Cost & ~ 1120/5m.m m m 2 Others 100.0 10102 035 Fumhure & 270.0 03/02 09/03 _ . . _rn _ ___ ___ c Equiprnent c : Consultancy 90.0 08/02 03/04 E a Services E:E Others - 042 09/03 f I IEC Actvfties, 160.0 11/01 0410S w. _ _ _ _ _ _ _ _ _ _ _ _ _ = Training & Workshop _ __ Consultancy 140.0 04/02 04105 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ EServices U C Others 110.0 MAP SECTION 68' 690 700 71 ° 720 730 740 75S This nmp pos producedby tm Mop Design Un of The World Book. INDIA c1ho- nPAK ISTAN GUJARAT EMERGENCY eno5.5'\ o (.- - :P,,EARTHQUAKE RECON- A X tn---> J 1-_ 2 ;STRUCTION PROJECT '--4--~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~2' 24'~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~4 240 ~~~~~~ r J armowo. ~~~~~~~~~~~~RAJASTHAN [ ~ ~ s,4 ' ;/;.y.K A ' ~'s' S C 3'.2 5..,'.rD ' AHMEDABAD 22A S C -1 ~ ~ ~ ~~SRIENDRAAGAR /%od0User 'I Gdkp/ GuildAwl s flij L5(I fldNJ5, r~§ 5 1 HoII( r t-' MADHYA GuOki. of KutcA0PRADESH lea'O~~~~~~~~~~~~~~~~' 4$ .~~..-. if W? )P4m$~~~ : K0 T, ~IM0NL~ qe#,ett ' / - OTHER R OA DS P NssiVAQDARA B uc-~~~~~~~~- X EARTHQUAKE EPICENTER .ET .iuloi .a KIeM HA AS TR (3 STATE CAPITAL Dob of occurrence: ~ ~ ~ ~ --R-E 260/20 Khmb At A I,. --- -----SEVERELY AFFECTED TALUKAS (SUB-DISTRICTS) R:). MOI:\ AFFECTED TALUKAS (SUB-DISTRICTS) Gu9ro 210 NATIONAL HIGHWAYS Focus: r OTHER ROADSNooi K::: TEDAG 21 RAiLROADS w 0 SELECTED TOWNS @ DISTRICT CAPITALS ~EARTHQUAKE DATA: Diu bslood okd rMAHARASHTRA ® STATE CAPITAL Dote of occurrence: 26/01/2001DA N SELECTED TALUKA BOUNDARIES rime: 8:46 a.m.Dmn DISTRICT BOUNDARIES Mageitude: 6.9 Richtes- scaleA R B N Latitude: 23.40 N.~ - - STATE BOUNDARIES ~ 02 E J0 3 0 Kilometers 20 ---INTERNATIONAL BOUNDARIES Foces: 25 km. deep& - 200 NAGAR H-A VELI 0 35 70 Niles 680 6~90 7,0 7 720 730 740