Document of The World Bank FOR OFFICIAL USE ONLY Report No: 76173-IN INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF 156.40 SDR MILLION (US$ 236.0 MILLION EQUIVALENT) TO THE REPUBLIC OF INDIA FOR A TAMIL NADU AND PUDUCHERRY COASTAL DISASTER RISK REDUCTION PROJECT May 21, 2013 Sustainable Development Unit India Country Management Unit Disaster Management and Climate Change Unit South Asia Region 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 CURRENCY EQUIVALENTS (Exchange Rate Effective April 30, 2013) Currency Unit = Indian Rupees (INR) Rs 53.88 = US$1 US$ 1.50900 = SDR 1 FISCAL YEAR April 01 - March 31 ABBREVIATIONS AND ACRONYMS ABNJ Areas Beyond National Jurisdiction GDP Gross Domestic Product CCRF Code of Conduct for Responsible GEF Global Environment Facility Fisheries CDRRP Coastal Disaster Risk Reduction Gol Government of India Proj ect CBDRM Community Based Disaster Risk GPO Global Partnership for Oceans Management CPS Country Partnership Strategy GoTN Government of Tamil Nadu CSO Civil Society Organization GoPy Government of Puducherry CRZ Coastal Regulatory Zone GIS Geographic Information System DR&DM Department of Revenue & Disaster GPS Global Positioning System Management DEA Department of Economic Affairs GSDMA Gujarat State Disaster Management Authority DGS&D Directorate General of Supplies & HTL High Tide line Disposal DoF Department of Fisheries HT< High Tension and Low Tension DRR Disaster Risk Reduction IBRD International Bank for Reconstruction and Development DRMP Disaster Risk Management Plan IA Implementing Agency DWAS Disaster Warning Announcement ICB International Competitive Bidding Systems EFD Environment & Forest Department ICZMP Integrated Coastal Zone Management Plan EIA Environment Impact Assessment IDA International Development Association EMP Environmental Management Plan IEC Information, Education and Communication ETRP Emergency Tsunami IUFR Interim Unaudited Financial Report Reconstruction Project ESA Environment and Social IMBL International Maritime Boundary Assessment Line ESMF Environment and Social IMD Indian Meteorological Department Management Framework ESMMC Evacuation Shelter Management INTACH Indian National Trust for Art & Maintenance Committee Cultural Heritage EWDS Early Warning and Dissemination ISP Implementation Support Plan System 1 FAO Food and Agriculture Organization LA Land Acquisition FIMSUL Fisheries Management for M&E Monitoring & Evaluation Sustainable Livelihood FM Financial Management MCS Monitoring, Control & Surveillance FMP Fisheries Management Plan MHA Ministry of Home Affairs FMU Fisheries Management Unit MIS Management Information System FY Financial Year NCC National Cadet Corps NDMA National Disaster Management RFP Request for Proposal Authority NGO Non-Governmental Organization RADMM Revenue Administration, Disaster D Management and Mitigation Department NRLM National Rural Livelihood Mission RD&PR Rural Development and Panchayati D Raj Department NFDB National Fishery Development SRM Supervision, Reporting and Board Monitoring NSS National Social Service SBD Standard Bidding Document ORAF Operational Risk Assessment Sol Survey of India Framework OSDMA Odisha State Disaster Management SIL Specific Investment Loan Authority PAD Project Appraisal Document SHG Self-Help Group PDO Project Development Objectives SDMA State Disaster Management Authority PMU Project Management Unit TANGE Tamil Nadu Generation and DCO Distribution Corporation PIA Project Implementing Agency TPIU Tsunami Project Implementation Unit PIU Project Implementing Unit TCP Technical Cooperation Program PMC Project Management Consultant TPQA Third Party Quality Auditor PRA Participatory Rural Appraisal UGC Under Ground Cables PSC Project Steering Committee UT Union Territory QER Quarterly Evaluation Report VDMC Village Disaster Management Committee R&R Resettlement & Rehabilitation VRCC Vulnerability Reduction of Coastal Communities Regional Vice President: Isabel M. Guerrero Country Director: Onno Ruhl Sector Director: John Henry Stein Sector Manager: Bernice K. Van Bronkhorst Task Team Leader: Deepak Singh / Saurabh Suresh Dani 11  INDIA Tamil Nadu and Puducherry Coastal Disaster Risk Reduction Project TABLE OF CONTENTS Page I. STRATEGIC CONTEXT .................................................................................................1 A. Country Context ......................1.......................... B. Sectoral and Institutional Context......................................... 2 C. Higher Level Objectives to which the Project contributes ................... 4 II. PROJECT DEVELOPMENT OBJECTIVES ...........................................................4 Project Beneficiaries ....................4..........................4 PDO Level Results Indicators.............................................. 4 III. PROJECT DESCRIPTION ......................................................................................... 5 A. Project Components ................................................. 5 B. Project Financing .......................................... ..... 8 C. Lessons Learned and Reflected in the Project Design. ......... ............. 9 IV. IM PLEM ENTATION .....................................................................................................10 A. Institutional and Implementation Arrangements .................... ..... 10 B. Results Monitoring and Evaluation ........................................ 11 C. Sustainability ................................................. 12 V. KEY RISKS AND MITIGATION MEASURES......................................................13 A. Risk Ratings Summary .................... ............... 13 B. Overall Risk Rating Explanation .............................. ...... 14 VI. APPRAISAL SUMMARY ......................................................................................... 14 A. Economic and Financial Analyses .......................... ......... 14 B. Technical .................................................... 16 C. Financial Management...................... ................ 17 D. Procurement ......................................... ......... 18 E. Social (including Safeguards) ...................................... 18 F. Environment (including Safeguards) ................................. 19 iii Annex 1: Results Framework and Monitoring .................................................................... 22 Annex 2: Detailed Project Description .................................................................................. 28 Annex 3: Implementation Arrangements ............................................................................. 45 Annex 4: Operational Risk Assessment Framework (ORAF).............................................62 Annex 5: Implementation Support Plan ................................................................................ 67 Annex 6: Governance Accountability and Action Plan....................................................... 70 Annex 7: Economic and Financial Analysis ......................................................................... 77 iv PAD DATA SHEET India Tamil Nadu and Puducherry Coastal Disaster Risk Reduction Project (P143382) PROJECT APPRAISAL DOCUMENT SOUTHASIA SASDC Report No.: PAD443 Basic Information Project ID Lending Instrument EA Category Team Leader P143382 Specific Investment B - Partial Assessment Deepak Singh / Saurabh Suresh Loan Dani Project Implementation Start Date Project Implementation End Date June 24, 2013 July 31, 2018 Expected Effectiveness Date Expected Closing Date September 01, 2013 July 31, 2018 Joint IFC No Sector Manager Sector Director Country Director Regional Vice President Bernice K. Van John Henry Stein Onno Ruhl Isabel M. Guerrero Bronkhorst Borrower: Government of India Responsible Agency: Commissioner Revenue Administration, Disaster Management and Mitigation Department, Government of Tamil Nadu Contact: Mr. Ashish Chatteijee Title: Project Director Telephone No.: 044-28528745 Email: relief@tn.nic.in Responsible Agency: Project Implementation Agency, Department of Revenue & Disaster Management, Government of Puducherry Contact: Dr. S.B. Deepak Kumar Title: Project Director Telephone No.: 0413-2203041 Email: pdpia.pon(,nic.in Project Financing Data(US$M) ] Loan [ ] Grant [ ] Other [X] Credit [ ] Guarantee v For Loans/Credits/Others Total Project Cost (US$M): 337.2 Total Bank Financing 236.0 (US$M): Financing Source Amount(US$M) BORROWER/RECIPIENT 101.20 International Development Association (IDA) 236.00 Total 337.20 Expected Disbursements (in USD Million) Fiscal Year 2014 2015 2016 2017 2018 2019 Annual 90 20 35 45 40 6 Cumulative 90 110 145 190 230 236 Project Development Objective(s) Increasing the resilience of coastal communities in Tamil Nadu and Puducherry, to a range of hydro- meteorological and geophysical hazards along with improving project implementation entities' capacity to respond promptly and effectively to an eligible crisis or emergency. Components Component Name Cost (USD Millions) Tamil Nadu Puducherry Total Vulnerability Reduction 190.6 34.0 224.6 Sustainable Fisheries 59.2 22.8 82.0 Capacity building in Disaster Risk Management 9.7 2.7 12.4 Implementation Support 13.4 4.8 18.2 Contingent Emergency Response 0 0 0 272.9 64.3 337.2 Compliance Policy Does the project depart from the CAS (Report No. 76176-IN) in content or in Yes [] No IE[] other significant respects? Does the project require any waivers of Bank policies? Yes [] No [I] Have these been approved by Bank management? Yes [] No [I] Is approval for any policy waiver sought from the Board? Yes [ ] No [I] Does the project meet the Regional criteria for readiness for implementation? Yes [I] No [ ] vi Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 Natural Habitats OP/BP 4.04 Forests OP/BP 4.36 Pest Management OP 4.09 Physical Cultural Resources OP/BP 4.11 Indigenous Peoples OP/BP 4.10 Involuntary Resettlement OP/BP 4.12 Safety of Dams OP/BP 4.37 Projects on International Waterways OP/BP 7.50 Projects in Disputed Areas OP/BP 7.60 Legal Covenants Name: Recurrent Due Date Frequency Institutional Arrangements - X Throughout the Project Implementation Units implementation Description of Covenant * GoPY to maintain a Governing Body of PIA (former empowered committee), the Project Implementing Agency, and an implementation unit in the PWD for purposes of implementing the Project. * GoTN to maintain a state level Steering Committee, an Empowered Committee, a Project Management Unit (within OCRA) and project implementation units in the line agencies and departments (RD&PRD, PWD, DOF, TANGEDCO, the SMA and DOEF. Name Recurrent Due Date Frequency Institutional Arrangements - 4 month after the Throughout the Project Consultancy Contracts and MOU Effective Date implementation Description of Covenant * GoPY to select a Project Management Consultant to assist the PIA with project implementation. GoPY to maintain a firm of chartered accountants in order to carry out the annual Financial Statements for the Project * GoTN to maintain the firm of chartered accountants in order to carry out semi-annual internal audits and the assessment of the internal control protocols. Name Recurrent Due Date Frequency Project Documents X Throughout the Project implementation Description of Covenant * GoPY to implement its respective Part of the Project in accordance with its Operations Manual, the Guidelines for the Selection of Beneficiaries, and the safeguard documents (ESMF, EMPs and RAPs -if applicable). vii * GoTN to implement its respective Part of the Project in accordance with the Operations Manual, the Guidelines for the Selection of Beneficiaries, construction guidelines and the safeguard documents (ESMF, EMPs and RAPs -if applicable). Name Recurrent Due Date Frequency Resilient Housing X Throughout the Project implementation Description of Covenant * GoTN shall get reimbursed relocation support expenditures in respect of houses that have been substantially completed and handed over to the respective owner. Name Recurrent Due Date Frequency Resilient Electrical Network X Throughout the Project implementation Description of Covenant * GoTN to enter into a written agreement with TANGECDO for the implementation of the resilient electrical network components (underground cable installation) under terms and conditions acceptable to the Association. Name Recurrent Due Date Frequency Fisheries Livelihood Support X Prior to the Throughout the Project distribution of implementation equipment Description of Covenant * GoTN to prepare and adopt some guidelines and selection criteria for the determination of eligible beneficiaries for the distribution provision of in-kind grants (low-cost communication equipment) Name Recurrent Due Date Frequency Safeguards X Throughout the Project implementation Description of Covenant * GoPY and GoTN to carry out the Project in accordance with the respective ESMF and EMPs. * GoPY and GoTN shall invite bids for civil works once the environmental and social assessment of such works have been carried out in accordance with the respective ESMF. * No works shall commence until all necessary government permits and clearance shall have been obtained, and any conditions therefor have been complied with. * GoPY and GoTN to maintain monitoring and evaluation protocols to assess compliance with the safeguard documents/requirements, and produce quarterly reports. * GoPY and GoTY to finance any compensation for resettlement and/or rehabilitation out of its own resources. Name Recurrent Due Date Frequency Contingent Emergency Response X N/A N/A Mechanism viii Description of Covenant * GoPY and GoTN to prepare a CER Operations Manual, nominate and maintain a coordination authority for purpose (and prior to) the implementation of the contingency emergency response components under their respective Parts of the Project * GoPY and GoTN have (i) determined that an eligible crisis and emergency has occurred and devised activities in response thereof, and (ii) submitted said activities for the Association concurrence Name Recurrent Due Date Frequency Management Information System X December 31, 2013 Throughout the Project for GoTN and implementation March 31, 2014 for GoPY Description of Covenant * GoTN to maintain a MIS and update it with a procurement module including a grievance complaint mechanism and procurement documentation, record keeping systems including disclosure in a free website. * GoPY to establish a similar mechanism (including procurement modules). Name Recurrent Due Date Frequency Anti-Corruption X NA NA Description of Covenant * Recipient to ensure that Project is carried in accordance with the provisions of Anti-Corruption Guidelines. Conditions: Name: Type: Contingent Emergency Response (CER) Component Disbursement Condition Description of Condition Tamil Nadu and Puducherry will only be entitled to reallocate fund and to access the CER financing subject to the occurrence of an Eligible Crisis or Emergency, the preparation and disclosure for appropriate safeguard documents, the nomination of a capable Coordinating Authority (with sufficient staff) and the adoption of a CER Operations Manual. Team Composition Bank Staff Name Title Specialization Unit Grant Milne Sr. Natural Resources Natural Resources SASDA Management Specialist Management Shankar Narayanan Senior Social Social Development SASDS Development Specialist Priti Kumar Senior Environmental Community and Disaster SASDC 1x Specialist Risk Reduction Muthukumara S. Mani Sr. Environmental Financial Analysis SASDC Economist Mohan Gopalakrishnan Sr. Financial Financial Management SARFM Management Specialist Arvind Prasad Mantha Financial Management Financial Management SARFM Analyst Deepak Singh Senior Disaster Risk Task Team Leader SASDC Management Specialist Harinath Sesha Environmental Specialist Environmental SASDI Appalarajugari Safeguards and Management Saurabh Suresh Dani Senior Disaster Risk Co-Task Team Leader SASDC Management Specialist Atin Kumar Rastogi Procurement Specialist Procurement SARPS Sanjay Gupta Senior Communications Communication SASDI Specialist Christoph Pusch Lead Disaster Risk Peer Reviewer GFDRR Management Specialist Anna C. O'Donnell Social Development Peer Reviewer SASDS Specialist Raja Rehan Arshad Lead Disaster Risk Peer Reviewer GFDRR Management Specialist Michael Willis Arbuckle Sr. Fisheries Specialist Peer Reviewer AES Tim Bostock Sr. Fisheries Specialist. Peer Reviewer AES Martin Serrano Senior Counsel Legal LEGES Non Bank Staff Name Title Office Phone City Peeyush Sekhsaria Consultant, Operations New Delhi, India Support B.K. D. Raja Consultant, Safeguards Hyderabad, India Management Anil Das Consultant, Disaster New Delhi, India Risk Management Vaideeswaran Sankaran Consultant, Operations Chennai, India Support Malini Nambiar Consultant, Disaster New Delhi, India Risk Management x Locations Country First Administrative Location Planned Actual Comments Division India Tamil Nadu Actual Coastal districts India Puducherry Actual Puducherry and Karaikal Institutional Data Sector Board Urban Development Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Mitigation Co-benefits Co-benefits % % Industry and trade Housing construction 40 30 10 Water, sanitation and flood protection Flood protection 30 20 10 Agriculture, fishing, and forestry General agriculture, 20 15 5 fishing and forestry sector Health and other social services Other social services 10 5 5 Total 100 H I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information applicable to this project. Themes Theme (Maximum 5 and total % must equal 100) Major theme Theme % Social protection and risk management Natural disaster management 50 Environment and natural resources Climate change 20 management Rural development Rural services and infrastructure 20 Social protection and risk management Social risk mitigation 10 Total 100 x1  I. STRATEGIC CONTEXT A. Country Context 1. India is highly vulnerable to natural hazards, particularly earthquakes, floods, droughts, cyclones and landslides. Studies indicate that natural disaster losses equate up to 2% of India's Gross Domestic Product (GDP) and up to 12% of federal government revenues. About 5,700 kilometers of India's coastline is exposed to severe cyclones and approximately 40% of the total population lives within 100 km of the coastline. As climate change and variability become more pronounced, hazard events are set to grow and intensify. 2. India has made great strides in moving from a reactive emergency response to being proactive and implementing disaster preparedness and risk reduction initiatives. India enacted the Disaster Management Act in 2005 and established the National Disaster Management Authority (NDMA) and State Disaster Management Authorities (SDMAs). NDMA has proactively formulated guidelines and procedures for dealing with specific natural disasters and is mandated to frame policies, plans and guidelines for Disaster Management. The Risk Management Framework developed in India has served as a blue print and best practice model for other countries. 3. For more than a decade, the Bank has been assisting Gol in effectively responding to disasters. This partnership between Gol and the Bank and their joint learning experience of disaster recovery and reconstruction are leading to an increased focus towards future oriented risk mitigation programs and strategies that will ultimately benefit millions of people vulnerable to natural disaster risks at the national, state and district - including village - level in India. 4. In keeping with the Gol's commitment to disaster risk mitigation at the national and state level, and building on the World Bank financed: India - Emergency Tsunami Reconstruction Project (ETRP), the Gol proposed the 'Tamil Nadu and Puducherry Coastal Disaster Risk Reduction Project' (CDRRP). The project will focus on new initiatives in risk reduction and mitigation, integrating lessons from the previous ETRP along with lessons from other disaster events faced by this coast and emphasizing the need for capacity building of Government institutions and vulnerable coastal communities. The underlying principles of the framework are that both loss of life and economic impact of disasters can be reduced by advance planning, an improved policy and incentive framework, and targeted investment programs. Tamil Nadu 5. Tamil Nadu is the southernmost state on the eastern coast of peninsular India, bound by the Bay of Bengal on the east and the Indian Ocean on the south. With a 15.6% rise in population over the past decade, Tamil Nadu is now the seventh most populous state in India with a total population of 72 million. Over 50% of the State's population lives in the densely packed coastal districts, including approximately 9 million people in the capital of Chennai. The human capital of these areas is also noteworthy, as three of the top districts in literacy rankings are located along the coast. 6. These coastal areas are not only densely populated but also constitute the economic hub of Tamil Nadu. As of 2012-2013, the state possesses the second largest economy in India and ranks 1 as the second most industrialized state in the country. Various economic activities along the coast, including fishing, agriculture, tourism, shipping, and industry, are important drivers of the overall state economy. Fishing alone provides livelihoods to about 200,000 families. In particular, with its long coastline of 1,076 km and its 3 major and 17 non-major ports, Tamil Nadu has the capacity to handle almost one-quarter of container traffic and one-fifth of India's total cargo traffic. Union Territory of Puducherry 7. The Union Territory (UT) of Puducherry consists of four small, unconnected regions: Puducherry, Karaikal, Yanam, and Mahe. In particular, the districts of Puducherry and Karaikal constitute 76% of the total population of the UT. Similar to the surrounding areas of Tamil Nadu, about two-thirds of the population in these districts live in densely packed urban settlements along the coast. The important sources of revenue include fisheries, agriculture, tourism, and the service sectors. B. Sectoral and Institutional Context 8. Coastal Tamil Nadu and Puducherry are endowed with rich human and natural resources which are important economic, social, and developmental drivers of the region. However, the coastal population and economic assets are prone to multiple hazards including high frequency and intensity of cyclones, storm surges, coastal floods and tsunamis. Approximately, 90% of the annual rainfall in the area is concentrated during the three-month north-east monsoon season, during which the delta regions experience frequent and wide spread flooding. This season also overlaps with cyclones in the Bay of Bengal, and data going back to 1891 indicates that on average, a moderate to severe cyclone strikes the Tamil Nadu coast every two years. Over the past century, 55 cyclones have crossed Tamil Nadu. Some coastal areas have recorded storm surges up to 6 m in height. 9. Cyclone Thane was the last major cyclone to hit Tamil Nadu and Puducherry in December 2011, causing heavy damage to life, livestock, agricultural lands, property, and public infrastructure. Over 46 lives were lost and about 200,000 hectares of land were damaged. In addition fallen electric poles and poor road conditions made large areas inaccessible. During the 30 year period, 1976-2007, cyclones and tsunami have damaged/destroyed over 350,000 houses and have caused over 10,000 deaths. These areas also faces threats of rise in sea levels, shoreline erosions, salt water intrusion and severe depletion of ground water resources, degradation of mangroves and shelterbelts, and increasing commercial and developmental pressures. Such natural and man-made hazards are significantly affecting a highly vulnerable population and the risks are likely to increase due to the impact of climate change 1. 10. The Indian Ocean Tsunami that occurred on December 26, 2004 is an example of the types of hazards that can impact the coastal areas of Tamil Nadu and Puducherry and cause widespread damage to human life and property. Tamil Nadu suffered 8,081 reported deaths, over 150,000 houses were destroyed or damaged, basic infrastructure took an extensive hit, and the fisheries 1 Turn Down the Heat - A Report for the World Bank by the Potsdam Institute for Climate Impact Research and Climate Analytics - November 2012 2 and agriculture sector was significantly impacted. Similarly, Puducherry suffered over 1,000 deaths in addition to economic damage suffered from the loss of livestock, fisheries, crops, and houses. 11. In the immediate aftermath of the Indian Ocean Tsunami of December 26, 2004, the World Bank approved: India - Emergency Tsunami Reconstruction Project (ETRP) for Tamil Nadu and the UT of Puducherry. The objective of the ETRP was to revive livelihoods and promote recovery in Tsunami affected areas. Over 80% of the project funds were marked for the reconstruction of damaged houses. However, the Government of Tamil Nadu (GoTN) rebuilt the houses using unprecedented support from non-government organizations and the Government of India (Gol). As a result the ETRP accumulated significant cost savings and was restructured in August 2009, with the addition of a new component: 'Vulnerability Reduction of Coastal Communities (VRCC)'. The restructured project was rescheduled to close by December 31, 2011. The VRCC extended the housing reconstruction program beyond those affected by the tsunami to the entire coast, targeting communities regularly exposed to cyclones, storm surges, coastal flooding (and potential tsunamis), also addressing these communities' poor access to evacuation shelters and early warning systems. In a way, this was the first major initiative towards risk mitigation in the region. 12. ETRP closed on the December 31, 2011. At the time of closure, several works were either not completed or were yet to be taken up. A significant amount of undisbursed credit of US$235 million was cancelled on December 30, 2011. At the time of closing the ETRP, it was discussed that with the agreement of the Government of Tamil Nadu, the Government of the Union Territory of Puducherry and the Government of India, the Bank could consider extending further help for disaster risk reduction initiatives that could include completing the unfinished works from ETRP and along with other new capacity building initiatives on risk reduction/mitigation also including the component of sustainable fisheries management, based on lessons learnt from the Fisheries Management for Sustainable Livelihoods (FIMSUL)2 13. Both Tamil Nadu and Puducherry have established mechanisms to respond to disasters for immediate relief and long term reconstruction. However, understanding has grown over the past decade around the important role played by disaster risk mitigation and preparedness, in reducing the overall impact of a disaster. 14. The proposed, 'Tamil Nadu and Puducherry Coastal Disaster Risk Reduction Project (CDRRP)', with focus on new initiatives in risk reduction and mitigation, integrating with the previous ETRP, takes into account the lessons from other disaster events faced by this coast, the need for capacity building of various Government institutions and that of vulnerable coastal communities. The proposed CDRRP will address the multiple hazard exposure related challenges faced by coastal Tamil Nadu and the UT of Puducherry, with a focus on risk reduction and mitigation. 2FIMSUL was an 18 month, Bank-supported technical assistance project linked to ETRP that developed a policy framework, vision, strategy, and institutional capacity in Tamil Nadu and Puducherry for more effective management of marine fisheries in the future. More information can be found at: sites.google.com/site/fimsul/ 3 C. Higher Level Objectives to which the Project contributes 15. The CDRRP is aligned to an important part of the Bank's Country Partnership Strategy (CPS FY09-12) to assist the project states in integrating disaster risk mitigation into their long- term development process. As such, the project is solidly anchored within Pillar II of the India CPS - Ensuring Development is Sustainable - which states that "World Bank Group's assistance will help "reduce the burden that environmental degradation imposes on the population (particularly vulnerable groups)", "increase the resilience of people and the economy to nature- related and man-made shocks," and aims to "support India's comprehensive efforts to reduce the country's vulnerability to floods, cyclones, earthquakes and other natural perils." The CDRRP is also aligned to the Bank's CPS FY12-15; under the Inclusion objective that aims to assist in promoting human development and strengthen social programs which support more inclusive growth with emphasis on enhanced coastal disaster risk management systems. II. PROJECT DEVELOPMENT OBJECTIVES 16. Increasing the resilience of coastal communities in Tamil Nadu and Puducherry, to a range of hydro-meteorological and geophysical hazards along with improving project implementation entities' capacity to respond promptly and effectively to an eligible crisis or emergency. Project Beneficiaries 17. Some of the poorest and most vulnerable communities in Tamil Nadu and Puducherry live in the zone up to 1,000 meters from the high tide line (HTL) and its immediate vicinity. These communities mostly comprise of fishers, farmers and other allied professions and would be the primary beneficiaries of the project. 18. The primary beneficiaries would be roughly 150 coastal villages that would benefit from the risk mitigation infrastructures. This project would enable a local reform process, which will ensure an improved performance in the marine fisheries sector, characterized by a sustainable flow of social and economic benefits to coastal fisheries communities and a healthy marine environment. Over 17,000 families will benefit from the construction of in-situ permanent multi- hazard resilient houses. Through a disaster management curriculum development for schools and training institutions, the project has the potential to benefit a large community of school children and trainees. PDO Level Results Indicators 19. The achievement of the PDO will be monitored by the following PDO level indicators. * Increased community resilience and preparedness in coastal areas; * Improved multi-hazard resilient coastal infrastructure; * Enhanced performance of and livelihood opportunities from fisheries with increased safety at sea; * Increased institutional capacity for risk mitigation and response at the state level 4 III. PROJECT DESCRIPTION A. Project Components 20. The Coastal Disaster Risk Reduction Project (CDRRP) has the following five components, with each of the component details varying as per the specific needs of Tamil Nadu and Puducherry. 1. Vulnerability Reduction; 2. Sustainable Fisheries; 3. Capacity building in Disaster Risk Management; 4. Implementation Support; and 5. Contingency Emergency Response. Tamil Nadu Component 1: Vulnerability Reduction - US$ 190.6 million 21. The objective of this component is to reduce the vulnerability of coastal communities through infrastructure such as permanent houses, evacuation shelters and routes, and resilient electrical networks. 22. Subcomponent 1.1 (Resilient Housing) - Construction of about 14,400 multi-hazard resilient permanent houses was commenced in ETRP, across 11 coastal districts. This would be completed by the Rural Development & Panchayati Raj Department (RD & PRD) under the project. The component will also provide relocation benefit during the period of reconstruction of houses and al 0 year insurance for houses against natural hazards. 23. Subcomponent 1.2 (Evacuation Shelters, Routes and Early Warning Systems) This infrastructure has been sorely inadequate in Tamil Nadu and access to evacuation shelters would help save lives. This component therefore includes construction of about 120 Multipurpose Evacuation shelters, installation of about 440 early warning systems and laying out evacuation routes with signage. Designs were completed during ETRP and works are now being tendered. 24. Subcomponent 1.3 (Cyclone Resilient Electrical Network) - Coastal electrical infrastructure, primarily the transmission and distribution which is over ground, is prone to high winds, rains, thunderstorms, storm surges and flooding. Cuddalore (HT- 162 km; LT - 512km) and Nagapattinam (HT - 250 km; LT - 60 km) towns have been identified for laying the underground electrical network. Component 2: Sustainable Fisheries - US$59.2 million 25. The fisheries sector provides livelihoods to a large community of fishers and a much larger population engaged in fishing related activities. Fishery dependent communities are the most vulnerable to natural disasters, climate change and the degradation of the marine environment. The objective of this component is to address gaps in the context of a long term 5 vision for the Fisheries sector. The component aims at upgrading infrastructure, developing an approach for co-management of fisheries and addressing safety at sea. 26. Subcomponent 2.1 (Fishing Infrastructure) -This subcomponent, as part of the earlier ETRP, consists of seven works. These include construction of two fish landing centers, reconstruction and modernization of two fishing harbors, providing permanent opening of two river bar mouths and establishing one tube ice plant. In addition, two new infrastructure projects are included as part of the CDRRP: the reconstruction and modernization of a fishing harbor and permanent stability of coastal inlet has been included. 27. Subcomponent 2.2 (FIMSUL - II) - Based on lessons from the earlier FIMSUL, activities will include putting into practice key reforms for the marine fisheries sub-sector in Tamil Nadu and Puducherry, particularly around fisheries co-management. It will implement local reform processes to support improved performance in the marine fisheries sub-sector. This would be characterized by more sustainable flows of social and economic benefits to coastal fisheries communities, and a healthy marine environment. Provision of a wireless communication system for the safety of fishers at sea is also included. In addition, linkages with the Global Environment Facility's (GEF), Bank implemented Areas Beyond National Jurisdiction (ABNJ), Bank led Global Partnership for Oceans (GPO) Program and FAO's Technical Cooperation Program (TCP), together with associated coordination and governance mechanisms, will be established for providing technical support for the implementation of the activities to the Fisheries Department's PIU. Component 3: Capacity building in Disaster Risk Management - US$9.7 million 28. This component will focus on strengthening the capacity of Government institutions, civil society, the school education system and coastal communities through four sub-components: (i) strengthening of State Disaster Management Authority, (ii) Community Based Disaster Risk Management Program (CBDRM), (iii) curriculum development on disaster risk reduction for schools and training institutions, and (iv) completing preparation of the ICZM plan for Tamil Nadu, completing erection of High Tide Line (HTL) pillars across all 13 coastal districts and stake holder training on coastal zone management. Component 4: Implementation Support - US$13.4 million 29. This will include incremental operating costs, that of operating the Project Management Unit (PMU) and respective Project Implementation Units (PIUs) in the line departments. In addition, the component will include consultancies required for the preparation and supervision of specific activities, trainings, exposure visits and knowledge exchange programs. Puducherry Component 1: Vulnerability Reduction - US$34.0 million 30. Subcomponent 1.1 (Resilient Housing) - About 1450 multi-hazard resilient permanent houses are being built by owners themselves and 300 through a contractor under the ETRP. 6 Ongoing house construction will be completed. In addition about 1000 new multi-hazard resilient houses will be rebuilt, in the place of thatched/temporary roof houses in vulnerable areas. 31. Subcomponent 1.2 (Restoration of Government Buildings, Bridges and Culverts) - This subcomponent would strengthen and rehabilitate existing public infrastructure like the Mairie Building (Town Hall) and a few other similar public buildings, old existing bridges and rebuilding of culverts in Puducherry. These works would make the existing infrastructure multi- hazard resilient and also help restore the heritage of Puducherry. 32. Subcomponent 1.3 (Cyclone Resilient Electrical Network) - Cyclone Thane caused widespread damage to the electricity infrastructure, resulting in human deaths and disruption. The losses amounted to over US$150 million. The replacement of overhead (O.H.) lines with underground (U.G.) cables (900 km.) will be undertaken as part of the project to reduce power losses and the time for restoration of the service. Component 2: Sustainable Fisheries - US$22.8 million 33. Subcomponent 2.1 (Fishing Infrastructure) - Improve the sustainability of fisheries through provision of fishers work shelters, modernization of fishing harbors and fish markets. Out of 17 works, 10 were started under ETRP and these are under construction. For the balance, statutory clearances have been obtained; designs and bidding documents are at an advanced stage of readiness. These would be taken up for completion under the project. 34. Subcomponent 2.2 (FIMSUL II) - Activities complementary to and coordinated with Tamil Nadu, details included in Annex 2. Component 3: Capacity building in Disaster Risk Management- US$2.7 million 35. Emergency operation centre along with a decision support system for disaster response planning has been established in Puducherry that is functioning on a stand-alone basis for individual territories of Puducherry. It will be expanded and integrated to make it more useful and user friendly. The capacity of the Fire Service, the first line of response in times of emergency, will be strengthened with modern equipment and training. A Community Based Disaster Risk Management Programme will be integrated within this component. In addition, development of maps demarcating the high tide line will also be undertaken. Component 4: Implementation Support- US$4.8 million 36. This component would finance cost of operating the Project Implementation Agency (PIA), Department-level Project Implementation Units (PIU) and for external consultancies required for the preparation and supervision of specific activities including training, exposure visits and knowledge exchange programs. 7 Component 5 - Contingent Emergency Financing- US$ 0 million (both Tamil Nadu and Puducherry) 37. Following an adverse natural event that causes a major natural disaster, the respective governments may request the Bank to re-allocate project funds to support response and reconstruction. This component would draw resources from the unallocated expenditure category and/or allow the government of Tamil Nadu and/or Puducherry to request the Bank to re- categorize and reallocate financing from other project components to partially cover emergency response and recovery costs. This component could also be used to channel additional funds should they become available as a result of an emergency. 38. Disbursements would be made against a positive list of critical goods or the procurement of works, and consultant services required to support the immediate response and recovery needs. All expenditures under this component, should it be triggered, will be in accordance with paragraph 11 of OP 10.00 and will be appraised, reviewed and found to be acceptable to the Bank before any disbursement is made. In accordance with paragraphs 11 and 12 of OP 10.00, this component would provide immediate, quick-disbursing support to finance goods (positive list agreed with the Governments), works, and services needed for response, mitigation, and recovery and reconstruction activities. Operating costs eligible for financing would include the incremental expenses incurred for early recovery efforts arising as a result of the impact of major natural disasters. B. Project Financing Lending Instrument: 39. The lending instrument will be a Specific Investment Loan (SIL), and the implementation period for the project is five years. SILs provide the flexibility to build human and institutional capacity, construct infrastructure, and support the gradual design and implementation. A SIL also allows for close follow-up of defined activities and procedures and, making adjustments where necessary, on the part of the government and the Bank. Project Cost and Financing 40. A summary of the financing per component, in addition to IDA financing and % financing is in the table below: Table 1: Finances per Project Component S. Item Project IDA % No. cost Financing Financing (US$M ) (US$M ) 1 Component 1: Vulnerability Reduction Tamil Nadu 190.6 133.4 70% Puducherry 34.0 23.8 70% 2 Component 2: Sustainable Fisheries: Works pertaining to the Fisheries sector 8 S. Item Project IDA % No. cost Financing Financing (US$M ) (US$M ) Tamil Nadu 59.2 41.4 70% Puducherry 22.8 16.0 70% 3 Component 3: Capacity building in Disaster Risk Management Tamil Nadu 9.7 6.8 70% Puducherry 2.7 1.9 70% 4 Component 4: Implementation Support Tamil Nadu 13.4 9.4 70% Puducherry 4.8 3.4 70% 5 Component 5: Contingent Emergency Financing 0 0 100% Total Tamil Nadu 272.9 191.0 Total Puducherry 64.3 45.0 Total 337.2 236.0 Total Project Costs 337.2 Total Financing Required 236.0 Note: Total may not match due to rounding off. C. Lessons Learned and Reflected in the Project Design 41. Lessons learned from post-disaster reconstruction projects, especially the 1999 Odisha cyclone, the 2001 Bhuj earthquake, the 2004 Asian tsunami, the 2008 Kosi floods, and ex-ante risk mitigation projects like the India: National Cyclone Risk Mitigation project (NCRMP), Bangladesh's cyclone risk mitigation efforts, Bank financed projects in other regions and the ETRP itself have been reflected in the CDRRP project design. a) The 1970 Bangladesh cyclone killed close to 500,000 people and that in April 1991, killed close to 138,000. After 1970, Bangladesh focused strongly on cyclone risk mitigation and by 2007 built around 2,500 cyclone shelters across 19 coastal districts. In addition, it developed a robust Early Warning and Dissemination System (EWDS). The 2007 Cyclone Sidr, of similar intensity to the 1970 cyclone caused around 3,800 deaths. Close to 1.5 million people benefited from the improved EWDS taking refuge in the cyclone shelters and evacuating to safer locations across the coast. The CDRRP has an important investment in emergency shelters, evacuation routes and in improved EWDS. b) Evidence from Bangladesh shows that death toll amongst women was significantly higher than men in recent cyclones partly because women felt uncomfortable staying in close quarters with men in the shelters, hence reluctant to leave the homestead. The consultation process that preceded the finalization of the shelter locations and the shelter design addressed this issue. 9 c) Capacity of local governments and community should be strengthened to ensure sustainability of the interventions through a long-term strategy for operating and financing maintenance of the assets established under these projects. Odisha has demonstrated an effective model of community ownership of Evacuation Shelters through the Evacuation Shelter Management & Maintenance Committee (ESMMC) established around each shelter. Relevant lessons from the same and other such interventions have been adopted in the NCRMP and are being integrated in the CDRRP for the management and maintenance of evacuation shelters and EWDS. d) The Disaster Management Act of 2005 paved the way for the creation of the National Disaster Management Authority (NDMA) at the national level, and State Disaster Management Authority (SDMA) at state levels with a clear mandate for spearheading disaster management efforts in the state. The project recognizes the need for strengthening capacity of the SDMA's at the state and local level towards disaster risk mitigation and has allocated funds and activities towards the same. The Gujarat State Disaster Management Authority (GSDMA) and the Odisha State Disaster Management Authority (OSDMA) are good examples and lessons are drawn from their evolution and development process. e) DRM institutions are frequently over stretched between regular operations and emergencies. This means a project implementation/management unit should have clear roles, so that staff can continue to work on the on-going projects independent of the emergency. The CDRRP will continue with the dedicated arrangement of the Project Management Unit (PMU) in Tamil Nadu and Project Implementation Agency (PIA) in Puducherry and has allocated funds and human resource for running the same. f) Building on the lessons from earlier FIMSUL activities, initiatives would include key reforms for marine fisheries sub-sector in Tamil Nadu and Puducherry, particularly sustainable fisheries management. It will implement local reform processes to support improved performance in marine fisheries. This would be characterized by more sustainable flows of social and economic benefits to coastal fisheries communities and a healthy marine environment. g) Regular third party technical auditing of various construction activities of the rural housing reconstruction has resulted in better quality of construction. Following the ETRP experience, this practice has been extended to other Government schemes as well. This practice will be continued in the CDRRP. IV. IMPLEMENTATION A. Institutional and Implementation Arrangements 42. For the implementation coordination of the earlier ETRP, the GoTN had created a central PMU in the Revenue Administration, Disaster Management and Mitigation Department (RADMMD). This PMU is still functioning and is overseeing the on-going balance works of the ETRP. It is headed by an experienced officer from the Indian Administrative Services and staffed with procurement, accounts, environmental and other supporting staff. This will remain 10 as the nodal agency for the GoTN. The works will however be implemented by the respective implementing agencies. The RD & PR Department has a functioning Project Implementing Unit (PIU) and is fully staffed, with field offices in all the districts, which will implement housing and evacuation routes components. Other implementing agencies also have dedicated PIUs and field staff for implementing the works. 43. In Puducherry, the Project Implementation Agency (PIA) in the Department of Revenue & Disaster Management (DR&DM), implemented works on behalf of all other departments in the ETRP. Now it is proposed to implement works related to the Public Works Department by the respective agency and other works including cyclone resilient electrical network by the PIA. The financial management and payments will continue to be made by the PIA which will continue to be the nodal agency for the CDRRP. 44. All implementing agencies in Tamil Nadu and Puducherry that were part of ETRP are well conversant with the implementation requirement of Bank projects. New agencies will be supported by the PMU and PIA. There is a web based MIS system functioning in Tamil Nadu, which will be further developed and a similar system will be instituted in Puducherry. 45. The District Collector's office would ensure effective coordination of multiple department efforts at the district level and would also be responsible for ensuring effective coordination at the Block and the Gram Panchayat levels. The Block level officials in coordination with the Gram Panchayats would be the primary institutions coordinating all disaster response and risk reduction activities. Village Disaster Management Committees (VDMCs) would be setup in each village that would have representation of all sections including the vulnerable: women, elderly, landless and disabled from all villages and hamlets covered by each Evacuation Shelter. B. Results Monitoring and Evaluation 46. The results framework in Annex 1 will be used to monitor and evaluate the achievement of the PDO and the outcome indicators. Project monitoring will occur as a periodic function, and will include process reviews, accounting audits, social audits, reporting of outputs, and maintenance of records. Broad thematic areas that will be supervised and monitored include the following: i) Social and Environmental Monitoring; ii) Regular Quality Supervision & Independent Quality Monitoring; iii) Periodic Physical and Financial Progress Monitoring; and iv) Benefit Monitoring and Evaluation (BME) 47. Social and Environmental Monitoring: This will comprise the following sets of activities: i) monitoring compliance with environmental regulations, social safeguards and Environment and Social Assessment provisions of respective subprojects and ESMF; ii) continuous Social Impact Monitoring at the Community Levels; iii) monitoring the performance of NGOS; and iv) overall monitoring and oversight of social issues at the state/project level. 48. Regular Quality Supervision and Third Party Quality Audit: This will be carried out by the respective implementing units within the line departments. Third party quality monitoring and independent certification of goods and works procured under the project shall form the Quality 11 Management System. Detailed quality management guidelines will be developed by PMU/PIA and adopted by all implementing units and other stakeholders. 49. Periodic Physical and Financial Progress Monitoring: Physical progress monitoring will be carried out by the implementing units within the line departments on a monthly basis and will report to PMU/PIA, which will in turn share the reports on a quarterly basis with the concerned line agencies and the Bank. The implementing units within the line departments will be the nodal agencies for reporting to PMU/PIA. Financial progress will be reported through the quarterly Interim Unaudited Financial Reports (IUFRs). PMU/PIA will strengthen the existing MIS and create a detailed MIS where needed for management of the information database, which will be an online tool for gathering updates by the implementing units within the line departments. A portion of this database will also be uploaded on the project websites as part of regularly sharing information with the public. 50. Benefit Monitoring and Evaluation (BME) - A three-stage Benefit Monitoring and Evaluation (BME) study would be carried out by the PMU/PIA. The study will be outsourced and will have three clear-cut stages. Stage I will setup the baseline data, Stage II will conduct midterm evaluations and Stage III will be the end of the project evaluation. The study will incorporate both qualitative and quantitative analysis and will also be used as a tool for mid- course corrections if necessary. C. Sustainability 51. Sustainability of the interventions proposed has been enhanced due to the following: 52. Ownership: The respective governments of Tamil Nadu and Puducherry, have shown keen interest and initiative in taking this project forward and have continued to implement works from the earlier project. MHA and the Department of Economic Affairs (DEA) have given high importance to the project and to the partnership with the Bank in the area of disaster management. All this indicates strong commitment and sense of ownership which enhances the sustainability of the project. 53. Institutional Capacity: The SDMAs' are the legally empowered nodal disaster management agency at the state level. This project will help develop the SDMAs as an operational institution and would help sustain investments in risk mitigation and its mainstreaming into development. In addition the key outcome of the project will be improved capacity of the respective line departments, District Administration, NGOs and Community to engage in long term planning to manage and maintain infrastructure investments. 54. Community participation and feedback mechanisms: The project is designed to involve the community in selection and planning of investments, actual implementation and in management and maintenance of Evacuation shelters and the EWDS. In addition, a well thought communication strategy will create awareness, inform communities about various components, along with a grievance redress system. This will promote local level ownership making the project sustainable. Effective participation of the Gram Panchayats' with inclusion of all sections of the village community in particular the fishing community as well as vulnerable sections of 12 the community: women, elderly, landless, children, disabled, low caste groups etc. through the VDMCs' is critical for the effective implementation of the community led disaster risk management approach including regular maintenance and upkeep of the facilities. 55. Insurance: The houses built under the project will be insured. This is a novel initiative for the region to ensure sustainability of this private infrastructure 56. Financial Sustainability: The project will support the development of a long term financing strategy. The work undertaken in multiple components will enable the GoTN and GoPy to strategically budget for and invest in risk mitigation and fisheries infrastructure along with policy and capacity building programs on a more holistic basis. The effective co- management of fisheries would also generate conditions for increased sector profitability and wealth accruement by the fishing community. Additionally, a Management and Maintenance Strategy will be created, and it will focus on the development of an asset management and maintenance fund for risk mitigation and fisheries infrastructure. V. KEY RISKS AND MITIGATION MEASURES 57. The project takes place in a State and UT known for their better standards of governance and implementation capacity. For several years, the administration has been implementing substantial programmes in the domain of post disaster recovery and rehabilitation and their focus in the recent past has turned to risk reduction and mitigation. Though their experience in the sustained involvement of local communities in the running of various risk mitigation infrastructure is limited, the concerned governments have demonstrated institutional will and a proactive and dynamic attitude towards CBDRM with a substantial project proposed on the same as part of the CDRRP. Therefore, with an already significant implementation capacity at both the mid and junior levels of government, institutional capacity built in ETRP will ensure successful project implementation of CDRRP. 58. The project is multi-sectoral and complex by nature; it is spread over a wide geographical area with large number of direct beneficiaries. It involves many departments: PMU, RD & PR Department, Public Works Department, Fisheries, Environment & Forest Department in Tamil Nadu, whereas in Puducherry there is one nodal implementing agency and one additional implementing department. 59. The project's success will depend, in part, on effective coordination between different line departments, the state and district administrations, involving all stakeholders and importantly on a dynamic and sustained involvement of the community along with building capacity of state and non-state actors in risk reduction, management and mitigation. A. Risk Ratings Summary Table 2: Operational Risk Rating Stakeholder Risk Rating Implementing Agency Risk - Capacity M 13 Stakeholder Risk Rating - Governance H Project Risk - Design M - Social and Environmental M - Program and Donor L - Delivery Monitoring and Sustainability S Overall Implementation Risk M B. Overall Risk Rating Explanation 60. There is a clear commitment by the Government of India, the GoTN and the GoPy to this project, with substantial work having already been carried out under the ETRP. Permissions and clearances have already been obtained for all ongoing infrastructure works. 61. There are risks associated with the complexity of the multi-sectoral approach, the involvement of multiple line departments, all of which may delay decision-making due to bureaucratic processes in place. In addition, due to the wide geographical spread of the program (coast of Tamil Nadu and Puducherry) and a large number of direct beneficiaries, the project may face implementation and delivery monitoring challenges. However, compared to the earlier ETRP the CDRRP is much simpler, there are fewer implementing agencies and most components are far advanced in preparation, some being already under implementation. In addition the current administration is well experienced with post disaster recovery and rehabilitation projects and vulnerability reduction works of substantial scale including the previous Bank supported ETRP. Project specific PMU in the case of Tamil Nadu and a PIA in the case of Puducherry to address these issues were established under ETRP that are since continuing and implementing the unfinished works. 62. The experience of the respective Governments in CBDRM and the involvement of local communities in the management and running of risk mitigation infrastructure, like Evacuation Shelters, EWDS are limited. However, they have demonstrated institutional will, along with a proactive and dynamic attitude by proposing a large program in CBDRM. 63. Planned mitigation measures include training and capacity building of the concerned Government institutions and civil society institutions involved, and the implementation risk is expected to be moderate in view of earlier mentioned weaknesses and constraints and the remedial measures already taken and being planned to address the same. VI. APPRAISAL SUMMARY A. Economic and Financial Analyses 64. One of the major challenges of promoting disaster mitigation and prevention is to demonstrate that its potential benefits in terms of saved lives and property far exceeds its costs. 14 Cost estimation of disaster risk reduction is relatively straightforward, while the estimation of their benefits is complicated by their probabilistic nature. In the end, the actual level of benefits will be realized depending on the degree of severity of the disaster event occurring over the life of the investment. Although the economic effects cannot be fully ascertained, there are indications of positive economic efficiency with respect to the Project's mitigation investments. Accordingly, specific analysis undertaken here includes the costs and benefits of measurable strengthening capacities as well as of mitigation investments. Given the data constraints, in many cases extrapolation is used from similar analysis done in India to arrive at the benefit estimates. 65. Given the disaster risks faced by the state of Tamil Nadu and UT of Puducherry, the proposed project is expected to yield both tangible and intangible benefits in the long run (see Table 3). Overall, as detailed below, the project is economically feasible, yielding positive net present values with acceptable indicators and benefit-cost ratios exceeding 1. A key point to note, however, is that not all "DRR" interventions are likely to be equal with respect to their costs and benefits, particularly in relation to climate change, non-monetized and distributional considerations. Strategic assessment of costs, benefits and the assumptions underlying estimates is, as a result, essential. As discussed in Annex 7, distinctions between in the cost-benefit profiles of strategies may depend heavily on the degree which they rely on soft versus hard resilience strategies and, thus, the vulnerability of projected benefits to critical threshold values. Finally, considering the disaster related indirect costs, this project has the potential to reduce the annual need of external financing for post-disaster reconstruction, and reduce risk to achieving broader economic development and poverty alleviation goals. Table 3: Cost-Benefit Ratio of the project components Project Component I Hazard Vulnerability Benefit: Cost Ratio Construction of multi Flood/cyclone Economic, direct Every dollar spent on concrete hazard resilient multi-hazard resilient housing permanent houses yields $0.60 in benefit. In addition benefits will include avoidance of emergency services, clean up and the loss of economic activity as well as savings due to reduced risk of injuries and death. Early warning Flood/cyclone Infrastructure Overall investment returns: 3.7 to 1 infrastructures to as high as 7.3 to 1 Evacuation routes Flood/cyclone Mobility disruption and Average benefit resulting from with signage human life loss evacuation infrastructure is US $4.5:1 Cyclone Resilient Storm Motor vehicle accidents Reduction in electricity pole Electrical Network Surge/cyclone/ Live-wire contact maintenance of $674 per 1.60 Flooding Power outages Kilometers Productivity loss Sustainable Fisheries: All Livelihood loss B/C ratio of 2.2 - 3.5 Works pertaining to the Fisheries sector Community Based All Economic and social One dollar spent on hazard Disaster Risk mitigation, including public Management Program awareness and education, generates 15 Project Component Hazard Vulnerability Benefit: Cost Ratio & capacity building an estimated US$ 4 on average in future benefits. Integrated Coastal All Disaster losses and US$0.4 million/km of coastline Zone Management repairs B. Technical Tamil Nadu 66. The vulnerability reduction component (Component - 1) includes public and private infrastructure for vulnerability reduction of coastal communities: resilient housing with insurance against natural hazards, evacuation shelters, evacuation routes and an early warning dissemination system. In addition about 1,000 km of overhead electrical network will be laid underground to minimize the damages from cyclones and floods. Tamil Nadu started these activates earlier in ETRP and these would now be completed. Shelters have been designed based on relevant Indian standards and guidelines including those on hazard mitigation structures. The early warning dissemination system would be based on the GSM/CDMA technology and will have control centers at district and state levels. The infrastructure and houses will be designed using appropriate Indian Road Congress (IRC) and Bureau of India Standard (BIS) guidelines and specification for multi-hazard resilience. 67. Fisheries are an important sector of the state and provide employment to about 200,000 families. Improvement to fishing infrastructure under Component - 2: fish landing centers, fishing harbors, opening of bar mouth etc. that were started in ETRP, including implementation of reforms and regulations by way of co-management will improve performance of the sector. Safety of fishers will be improved by way of provision of communication system. Linkages with other proposed/ongoing programs such as GEF, ABJN, GPO and TCP will increase the effectiveness of the efforts and help sustain the activities. 68. Capacity building on the disaster management will be focus of the Component - 3. GoTN has already initiated the process of operationalizing the State Disaster Management Authority by providing it with a secretariat. Staffing of the agency, capacity augmentation, initiating technical work of risk assessment targeted towards decision making and risk financing will be taken up under the project. The CBDRM component will focus on equipping the communities understand the risk and be prepared for response. In addition, inclusion of contingent emergency financing component will add to the effective response capacity to natural disasters by the government. Puducherry 69. GoPy has embarked on unique housing reconstruction program using the owner driven reconstruction model during ETRP. Out of 1450 about 1230 houses have been completed and important lessons have been leamt in terms of structuring the installment, provision of additional social and technical support. These features have now been incorporated in the new housing program that would reconstruct additional 1000 house. Component 1 also includes restoration of damaged public heritage buildings that would be completed with the involvement of Indian 16 National Trust for Art and Cultural Heritage (INTACH) or other competent and eligible specialized agency. This activity will also help in developing a model for future such activities that would be undertaken up by GoPy as there are large number of such heritage public buildings. In addition restoration of important transport infrastructure and conversion of overhead electrical to underground network will help improve the resilience of coastal communities. The infrastructure and houses will be designed using appropriate Indian Road Congress (IRC) and Bureau of India Standard (BIS) guidelines and specification for multi-hazard resilience. 70. Component - 2 would help improve the sustainability of fisheries sector and Component - 3 will improve the capacity of the state agencies and other stake holders towards decision making, risk reduction and disaster response. Inclusion of contingent emergency financing component will add to the effective response capacity to natural disasters by the government. C. Financial Management 71. The project is being implemented by multiple line departments in the State of Tamil Nadu and Puducherry. The financial management arrangements agreed under this project are similar to the earlier Emergency Tsunami Reconstruction Project (ETRP). These financial management arrangements are transparent and will be adequate for project accounting and reporting. It will satisfy the minimum OP/BP financial management requirements of the Bank. The overall financial management risk rating of the project is 'Substantial'. 72. Tamil Nadu: The Project Management Unit (PMU) already established in the RADMMD of Government of Tamil Nadu (GoTN) will be the nodal agency and will provide all the financial management support to the line departments for implementing this project. The financial management arrangements have been integrated with the GoTN existing systems of budgeting, funds flow, accounting and external audit with specific strengthening in area of internal audit. The disbursements under this project will be based on the IUFRs. The PMU will appoint one experienced finance professional to carry out the requisite financial management functions. The Comptroller and Auditor General of India (C&AG) through its office in Tamil Nadu will be the external auditor and will conduct an annual audit of the financial statements of this project. The audit will be conducted as per the terms of reference agreed with the Bank and the audit report will be submitted within nine (9) months from the close of each financial year. The additional fiduciary assurance will be obtained through an internal audit of all the line departments as per the terms of reference agreed by the Bank. 73. Puducherry: The society (PIA) established under the Emergency Tsunami Reconstruction Project will be the nodal agency and will provide financial management support to implement this project. A financial controller will be deputed from the GoPY who will oversee the financial management functions and will obtain requisite support from an external accounting firm. The disbursements under this project will be based on the IUFRs. The annual external audit will be conducted by a firm of chartered accountants as per the terms of reference agreed with the Bank and the audit report will be submitted within nine (9) months from the end of each financial year. 17 74. Retroactive financing: The payments made for the expenditures incurred from January 01, 2012 to the expected signing date are considered eligible for Bank financing and these are estimated to be US$ 79.0 million (US$ 68.50 million for GoTN and US$ 10.50 million for GoPY). The task team has obtained the requisite exception to the regular retroactive financing parameters set forth in paragraph 14 of BP 10.00 (Investment Project Financing)3 from the Bank's senior management for financing of such expenditures. 75. The PMU and the respective line departments of GoTN; and PIA of GoPY have maintained adequate records to account and report for these retroactive expenditures. The GoTN and GoPY will also carry out an external audit including the retroactive expenditures and share the report with the Bank. D. Procurement 76. Procurement for the project will be carried out in accordance with the World Bank's "Guidelines: Procurement of goods, works and non-consulting services under IBRD loans and IDA credits & grants by World Bank borrowers" dated January 2011 ("Procurement Guidelines") and "Guidelines: Selection and employment of consultants under IBRD loans and IDA credits & grants by World Bank borrowers" dated January 2011 "(Consultant Guidelines)". 77. The procurement under the Project will be carried out by the multiple implementing agencies of the State of Tamil Nadu and the Union Territory of Puducherry. The management support and coordination amongst all the implementing agencies will be provided by the PMU in Tamil Nadu and the PIA in Puducherry who will act as a single window contact for the Bank. 78. A procurement capacity assessment has also been undertaken in December 2012 which shows some variability in procurement performance of the Implementing Agencies. Some Implementing Agencies perform well and others have still to strengthen their capacity. The overall procurement risk for the project has been rated as High and after implementing mitigation measures, as Substantial. 79. Systematic monitoring and public disclosure of procurement performance and outcomes is important. This will include the development and implementation of a procurement module as an integral part of the broader MIS system, which is currently under redesign. This will enable the systematic collection and analysis of data related to procurement performance and outcomes under the overall program, which will be consolidated and publicly reported by PMU/PIA on a regular basis. The MIS system is to be made operational in Tamil Nadu by December 2013 and in Puducherry by March 2014, and the first procurement performance report will be published within three months thereafter. E. Social (including Safeguards) 80. Two social safeguard policies are triggered by the project: i) Physical Cultural Resources OP/BP 4.11; ii) Involuntary Resettlement OP/BP 4.12; No other safeguard policies are expected 3 The exception was processed prior to the effectiveness of OP/BP 10.00, pursuant to footnote 3 to former OP 6.00 18 to be triggered. The policy on Indigenous People (OP / BP 4.10), is not triggered, as the available information on the project indicates no impacts on Indigenous People. The policy however, will be triggered if any such impacts are envisaged during the subsequent phases of the project. 81. The key social development principles of the project include: (i) participating communities through their Panchayats and VDMCs will play an active role in the proposed project interventions; (ii) vulnerable sections amongst the community have equal opportunities to participate; and (iii) those affected by the project interventions are supported under the project to mitigate any adverse impacts. 82. The project is aimed at enhancing the ability of each and every member of the community in responding to disaster events in a timely manner and to be able to overcome the same without any adverse impacts. For this to happen effectively, it is important that each community member is involved and is fully familiar with the design and operating principles of evacuation shelters and disaster warning announcement systems (DWAS). 83. Vulnerable groups have equal opportunities in the project: Vulnerable sections of the community such as women, landless and low-caste groups still continue to remain marginalized in the decision making process. Addressing this requires targeted measures to ensure inclusion of these groups in decision making and access to information and services under the project. Some of these include providing a fair representation in VDMCs and thus legitimize their inclusion, providing 'voice' in the decision making process and access to DRM services, direct targeting for employment opportunities under the project if any, and specific measures to improve their resilience towards disaster events. Those affected by project interventions will be supported so as to mitigate losses. 84. Most of the activities under the project are not expected to cause any negative social impacts since the aim is to set up disaster risk reduction systems including evacuation shelters in existing structures (school building, community centers etc.) that may not require any new land acquisition (LA). The installation of underground electrification systems might necessitate temporary loss of access to land or loss of agriculture produce that would need to be compensated for. As part of project preparation, a quick review of safeguards issues was undertaken in sample sections of the project area. This included a census survey of potential affected persons, study of issues related to women, and other vulnerable groups, and stakeholder consultations. The results of this review provided input in the preparation of the ESMF and the resettlement and rehabilitation (R&R) entitlement policy framework. 85. While all the ongoing works that are ready with designs have already followed due processes acceptable to the Bank and obtained statutory clearances, regular monitoring and reporting of compliance by line departments remains a challenge. F. Environment (including Safeguards) 86. The project triggers the following safeguard policies: i) Environmental Assessment (OP/BP 4.01); ii) Involuntary Resettlement (OP/BP 4.12); and iii) Physical Cultural Resources (OP/BP 4.11). The project has been assessed to be 'Category B', based on the in-situ and moderate 19 nature of the construction activities of the proposed sub-projects. However, considering the fact that many of the project activities are in the sensitive coastal environments, 'Environmental and Social Assessment' has been / will be carried out for the respective sub-projects as applicable, as per the 'Environmental and Social Management Framework (ESMF)' developed for the project. 87. Environmental and Social Management Framework (ESMF). Many of the project activities such as fishery, housing, cyclone shelters, and evacuation routes (which are proposed for retroactive financing in the new project) have been designed during the recently closed Emergency Tsunami Reconstruction Project (ETRP). Necessary environmental and social assessments, management plans and regulatory clearances have already been obtained for these sub-projects and EMP's have been incorporated in the bid documents. However, for new sub- projects such as underground electrical lines and other infrastructure works in Tamil Nadu and Puducherry, safeguard due diligence will be carried out prior the implementation, in accordance with the agreed ESMF for the project. In view of the above, the ESMF implemented in the ETRP, has been revised for the project, by incorporating the additional safeguard requirements for the new components and completion of pending safeguard due diligence such as disclosure of safeguard documents locally and at the Bank InfoShop for the retroactively financed sub- projects. The revision also incorporates the learning from earlier ESMF and the findings of the 'Quick Review of Safeguard Issues' carried out for the sub-projects proposed to be financed retroactively by the project. 88. Borrower's Capacity. The Project Management Unit in Tamil Nadu is staffed with an Environmental and Social Safeguards Specialist, who was actively involved in monitoring the preparation and implementation of safeguard management plans in the earlier ETRP. Many of the project implementing agencies were also part of the ETRP and are aware of the requirements of Bank Safeguard Policies. Considering the above background, the capacity of the borrower can be considered satisfactory. The supervision and monitoring capacities of these agencies have been strengthened for the current project through the appointment of a social safeguard specialist in the Tamil Nadu PMU and safeguard specialist (environment and social) in the Puducherry PIA. Safeguard Policies Triggered by the Project Yes No Environmental Assessment (OP/BP 4.01) [X] I ] Natural Habitats (OP/BP 4.04) [] [X] Pest Management (OP 4.09) [ ] [X] Physical Cultural Resources (OP/BP 4.11) [X] I ] Involuntary Resettlement (OP/BP 4.12) [X] I ] Indigenous Peoples (OP/BP 4.10) [ ]X] Forests (OP/BP 4.36) [ ] [X] Safety of Dams (OP/BP 4.37) [ ] [X] Projects in Disputed Areas (OP/BP 7.60) [] [X] Projects on International Waterways (OP/BP 7.50) [ ]X] 89. Safeguard risks: The key environment and social management related risks include (i) insufficient attention/delays in effective implementation of Environmental and Social Management Plans; and (ii) potential non-compliance with Bank environment safeguard policies/guidelines due to lack of implementation capacity. While all the ongoing works that are 20 ready with designs have followed the requirements of the ESMF and due processes to obtain statutory clearances, regular monitoring and reporting of compliance by line departments remains a challenge. 21 Annex 1: Results Framework and Monitoring INDIA: Coastal Disaster Risk Reduction Project, Tamil Nadu and Puducherry 1. Strategies for Results Planning and Monitoring 1.1 Overall Project Supervision, Reporting and Monitoring (SRM) Framework-The multi-tier implementation arrangements under the project include supervision and monitoring roles and responsibilities of the various players involved in implementation. Supervision will generally entail routine quality certification of the houses to be provided at various stages of construction, forming the basis of payment certification and other works. Monitoring will occur as a periodic function, and will include process reviews/audits, reporting of outputs, and maintaining progressive records. Broad thematic areas that will be supervised and monitored include the following: I) Social and Environmental Monitoring II) Regular Quality Supervision & Certification III) Periodic Physical Progress Monitoring & Third Party Quality Audit IV) Benefit Monitoring and Evaluation (BME) A summary is provided below: I) Social and Environmental Monitoring - This will comprise of the following sets of activities: a) Monitoring compliance with environmental regulations, social safeguards and Environmental and Social Assessment provisions of respective subprojects and ESMF b) Continuous Social Impact Monitoring at the Community Levels c) Monitoring the performance of NGOs d) Overall State-Level Monitoring and Oversight of Social Issues at state/project level II) Regular Quality Supervision & Certification - This will be carried out by the respective implementing departments, forming also the basis of payment certification. Technical supervision staff shall be deployed by the implementing departments. III) Periodic Physical Progress Monitoring & Third Party Quality Audit -Physical progress monitoring will be carried out by the implementing departments on a monthly basis. The lAs will carry out monthly surveys in their respective domains (districts) to record and report on progress of works. They will also, in coordination with the respective beneficiaries and contractors, identify any constraints and delaying factors. In addition, a third party will be deployed for quality monitoring of works and compliance on social and environmental aspects. IV) Benefit Monitoring and Evaluation (BME) - A three-stage Benefit Monitoring and Evaluation (BME) study would be carried out by the PMU/PIA. The study will be outsourced and will have three clear-cut stages. Stage I will setup the baseline data, Stage II will conduct midterm evaluations and Stage III will be the end of the project evaluation. The study will incorporate both qualitative and quantitative analysis and will also be used as a tool for mid- course corrections if necessary. 22 2. Major Outcomes Expected from Project - The major outcomes expected of the restructuring include: (a) increased community resilience and preparedness in coastal areas; b) improved multi-hazard resilient coastal infrastructure; (c) Enhanced performance of and livelihood opportunities from fisheries with increased safety at sea, and (d) increased institutional capacity for risk mitigation and response at the state level. Corresponding quantifiable indicators for the measurement of these outcomes are included in the Results Framework developed for project restructuring as described below: 23 Table 4: Results Framework Project Development Objective (PDO): Increasing the resilience of coastal communities in Tamil Nadu and Puducherry, to a range of hydro- meteorological and geophysical hazards along with improving project implementation entities' capacity to respond promptly and effectively to an eligible crisis or emergency. Cumulative Target Values Data Notes PDO Level UiofBs-Suc! Responsibilit Noe ReulsUnit of Base- Feuny Source/ frDt Rests ~ Measure line YR 1 YR 2 YR YR6 Frequency Methodolo y r a Indicators YRI Y R R4 Y5Collection 1. Increased Percentage of 0 75 85 100 Quarterly Constructio PMU (Tamil Study will be community households with n reports, Nadu)/ PIA done to compare resilience and Quality certified Comparati (Puducherry) existing houses to preparedness in multi-hazard ve studies the newly built coastal areas resilient houses resilience housing in a Gram Panchayat to showcase resilience. Percentage of 0 30 70 100 Quarterly Surveys, PMU habitations with Field access to reports, community constructio managed n reports emergency shelter Percentage of 1 30 70 100 Quarterly Survey and PMU/PIA coastal field population reports covered by the early warning systems Percentage of 5 30 60 100 Quarterly Field PMU/PIA Community's coastal villages Reports participation and better prepared co-management through will be viewed in CBDRM the light of the training number of CBDRM Programs that were undertaken in the coastal region. 2.Improved multi- Percentage of 0 30 70 100 Quarterly Field PMU/PIA hazard resilient coastal area with Reports 24 coastal electrical infrastructure cabling transferred underground 3.Enhanced Percentage of 0 60 80 100 Quarterly Field PMU/PIA performance of villages having reports, livelihood access to fishing survey opportunities related restored from fisheries linkages/ with increased infrastructure safety at sea Percentage of 0 75 100 Quarterly Field PMU local fisheries Reports co-management platforms formed and involved in FMPs Percentage of 0 65 100 Quarterly Field PMU fishers with reports wireless communication facilities 4. Increased Percentage of 0 100 Quarterly Field PIA institutional Fire reports capacity for risk Departments mitigation and with improved response at the rescue state level equipments INTERMEDIATE RESULTS Component 1 Level Result - Vulnerability Reduction Intermediate Unit of Cumulative Target Values Data Source/ Responsibility Notes Result b Measure Baseline Frequency for Data Indicamtor 0 Collection Number of [] Number 0 13500 14700 16000 Quarterly Construction PMU / PIA resilient houses reports reconstructed Multi-hazard Km 0 0 0 550 1350 1850 Quarterly Construction PMU /PIA resilient electrical reports network created 25 Number of Number 0 0 0 35 85 121 Quarterly Feld reports PMU evacuation shelters created Evacuation Km 0 35 44 Quaterly Construction PMU Routes laid reports No. of early Number 5 0 0 140 310 439 Quarterly Feld reports PMU warning systems installed Number of Public Number 0 2 3 Quarterly Construction PIA buildings restored reports Number. of old Number 0 1 2 3 Quarterly Construction PIA bridges reports rehabilitated and reconstructed Number of Number 0 1 2 Quarterly Construction PIA culverts reports reconstructed Component 2 Level Result - Sustainable Fisheries Intermediate Unit of Cumulative Target Values Data Source/ Responsibility Notes Baseline Frequency for Data Result Indicator 0 Measure Methodology Collection Annual Number of fishing Number 0 0 7 10 12 19 Quarterly Construction PMU / PIA related works infrastructure works completed Number of local Numbers 0 3 4 Annual Field surveys PMU / PIA fisheries co- management platforms formed and involved in FMPs Number of fishers Numbers 0 0 0 2000 5000 Annual Field surveys PMU provided with communication network/equipme nt 26 Component 3 Level Result - Capacity building in DRM Intermediate Unit of Cumulative Target Values Data Source/ Responsibility Notes Result Indicator C Measure Baseline Frequency Methodology for Data Q Collection Number of Numbers 0 0 50 100 150 Quarterly Field reports PMU villages covered in CBDRM program Number 3 8 11 Quarterly Construction PMU Number of reports districts where HTL pillars are installed Establishment of Number 0 1 Quarterly Activity reports PMU a Centre for Disaster Management Integration of Number 0 1 Quarterly Activity reports PIA multiple Emergency Operation Centre 27 Annex 2: Detailed Project Description 1. Description 1. The project will be developed under a multi-sector framework with investment activities aimed at reducing risk and enhancing mitigation along coastal Tamil Nadu and Puducherry. Multi-hazard resilient housing and evacuation infrastructure including shelters, road access and early warning systems will save lives and property from damages, and on the whole reduce vulnerability of coastal communities to a range of natural hazards. Additional activities of improving infrastructure, co-management for the fisheries sector, which is the most vulnerable sector in the coastal zone will be undertaken. This will result in sustainable fisheries and support related livelihoods. Capacity building of government institutions, the civil society, organizations and vulnerable communities in Disaster Risk Management along with empowering communities to be able to maintain and utilize the risk reduction infrastructure would ensure long term sustainability. 2. By integrating activities from several departments, the project seeks to maximize complementarities of action. Improved road and bridge network will increase access to health care, education and markets. In addition, several activities will leverage each other. For example, evacuation shelters will function as community halls, school classrooms, and vocational training centers assuring all round development of the community and will bring about a sense of ownership, ensuring long term sustainability. Particular attention will be given to institutional strengthening on aspects of risk management whether it is government agencies, NGOs or the community with the larger objective of risk reduction/ mitigation. The project will comprise the following components: Tamil Nadu Component 1: Vulnerability Reduction US$190.6 million 3. Subcomponent 1.1: Construction of multi hazard resilient permanent houses- US$52.5 million - Housing was the second worst affected sector after fisheries from the 2004 Tsunami. Housing remains one of the most affected sectors whether it is cyclones, storm surges, floods or fires. The GoTN with support from the World Bank under the earlier ETRP decided to extend the rural housing reconstruction program to structurally vulnerable houses. Communities regularly exposed to cyclones, storm surges, coastal flooding (and potential tsunamis) within 200 to 1000 meters from the HTL with poor access to evacuation shelters and early warning systems were to be provided with multi-hazard resilient permanent houses. The criteria for selection of households to be rebuilt as part of the ETRP were: (a) Fully thatched houses; (b) Houses with thatched roofs with any kind of wall like mud, brick, etc.; (c) Houses with mud walls with any kind of roof structure; (d) Houses with brick walls and mud mortar with any kind of roof structure; and, (e) Houses built with Government finance earlier which are ten years' old or more as on January 1, 2006. 4. This sub-component is being implemented in 11 coastal districts and covering 440 coastal habitations with a total of about 14,400 houses (157 packages) under construction and likely to 28 be completed by December 2013. Each house has a total plinth area of 325 square feet with an average cost of $7,000. 11 NGOs were appointed as third party facilitators for revalidation of beneficiaries, awareness generation and training. Shifting allowance of $20 (Rs. 1000) was paid as a one-time lump sum to each beneficiary. During the reconstruction period, $10 (Rs. 500) per month was paid as rental allowance. The new houses are constructed in-situ. The houses reconstructed are insured against 14 types of disasters for a period of 10 years. The insurance is bought by the Project in the names of the beneficiaries through the insurance agencies, which is for 10 years for the house alone and not for assets within. 5. As of April 2013 about 11,900 houses have been completed of which around 8400 houses have been handed over, about 10,000 houses have been insured, and the balance are under various stages of completion. The works are expected to be completed by December 2013. 6. Subcomponent 1.2-Evacuation and Early Warning Infrastructure: US$ 71.8 million - In multi-hazard prone coastal Tamil Nadu easy and dependable access to early warning, evacuation routes and shelters would save lives and protect the vulnerable population from injury and exposure. However this infrastructure has been sorely inadequate in Tamil Nadu. 7. Subcomponent 1.2.1-Evacuation routes with signage: US$4.6 million - Construction of 44 km of evacuation routes connecting coastal communities to the evacuation shelters along with signage to facilitate evacuation has been undertaken by the RD & PR Department. This sub- component has been organized in 42 work packages with 167 works, including signage, roads and associated infrastructure like culverts and a bridge. From this 23 works were cancelled after due process and 144 works were taken up for execution. Of the total 44 km of roads, total length of Black Topped (B.T.) roads is 5 Km. and Cement Concrete roads is 39 Km. Detailed project reports, designs, bidding documents, environmental and social Assessment and necessary CRZ clearances have been obtained by the implementing agency during the earlier project (ETRP) and the works are ongoing. Out of 44 km, works have been completed for 32km completed. Balance works are to be completed by June 2013. 8. Subcomponent 1.2.2-Construction of Multipurpose Evacuation shelters: US$58.0 million- This is spread over the coastal districts where people do not have quick access to safe shelters in their locality during natural disasters. About 120 Multipurpose Evacuation shelters based on a study of the location, catchment's area population, community needs have proposed Community Halls of 1000, 2000 and 3000 people capacity, School buildings of capacity 500 & 1000 and Public Health Centre (PHC) of 500 people capacity. They will have facilities like kitchens, water storage and toilets in a gender segregated way so as to facilitate a safe and hygienic shelter. To accommodate livestock separate infrastructure will be created. These structures will be multipurpose utility buildings so that they can be used for activities like class rooms, community function hall, meeting rooms for SHGs, community meetings, vocational trainings and other such community activities on a regular basis, making this infrastructure a vital part of the development of the communities. Multiple use will also facilitate its proper upkeep and regular maintenance. These will be built by the Public Works Department. All sites for the shelters have been identified, statutory CRZ clearances have been obtained and designs and bidding documents were completed under the ETRP. This sub-component of evacuation shelters has been organized in 62 packages. From which bids have been received for 34 packages 29 comprising 61 evacuation shelters. Of these, 15 packages covering 28 shelters have been awarded. Work on 22 of these Evacuation shelters has started. Re-bidding of the balance 93 shelters has been initiated, and will be awarded by June 2013. 9. Evacuation Shelter Maintenance and Management Committee (ESMMC) with appropriate representation from all stakeholder groups will be established after an elaborate consultative process. An Evacuation shelter task force will be established as part of the CBDRM work. The ESMMC and Task Force will be trained in the maintenance and management of the Evacuation shelter during emergency and normal times. As part of the CBDRM sub-component the village communities who will benefit from the Evacuation shelters will be trained in the use and management of the same. Regular mock drills will integrate the Evacuation shelters as part of the exercise. 10. Subcomponent 1.2.3 -Provision of 439 early warning systems: US$9.2 million: The primary objective of this sub-component is to save people's lives in disaster prone zone of the state by providing early warning using a Disaster Warning Announcement System (DWAS), giving enough time to communities including the young, women, aged, and persons with disability to evacuate to safe shelters. The DWAS will relay information provided by the Indian Meteorological Department (IMD) that houses one of the six tropical cyclone Regional Specialized Meteorological Centers (RSMCs) and the Indian National Centre for Ocean Information Services (INCOIS) that has an Indian National Tsunami Early Warning System. The DWAS is being implemented by the PMU. DWAS System consists of DWAS Central Unit (DWAS-C), DWAS District Units (DWAS-D), and DWAS Remote Units (DWAS-R) communicating through GSM/GPRS networks. The mode of communication is Voice, Data, and SMS. 11. One central unit namely DWAS-C Unit is proposed to be installed in the office of the Commissioner of Revenue Administration, which shall have the overall control / dissemination / monitoring of all the DWAS-D units provided in the 13 Coastal districts and DWAS-R provided in the habitations and issue necessary communications / warnings etc. as found necessary. One DWAS-D Unit is proposed in each of the 13 coastal districts including Chennai which shall control / monitor all the DWAS-R units provided in the habitations within the district and act as link between the DWAS- C i.e., Central Unit at Chennai and the DWAS-R Units. 12. One DWAS-R unit to be provided in each of the habitations or by combining the habitations in such a way that the habitations are covered by the 1 Km radius audio range of the loud speakers and similarly the 1 Km radius visual range of LED lights during normal climate. The DWAS-R units will be housed in various pre-identified locations like Panchayat offices, Panchayat Schools, Municipal Primary schools, Evacuation/Cyclone Shelters, Co-operative Fair Price shops, Temples, Mosques, Community Halls, etc. 13. The host village community will be involved in the O&M of the DWAS-R in their respective villages. A detailed working arrangement with the participation of the community, NGOs, concerned Government departments will be worked out for each DWAS-R. The Early Warning and Evacuation Task Forces will be trained in the use and upkeep of the DWAS-R. As part of the CBDRM sub-component the village communities to benefit from the DWAS will be 30 trained in the use and management of the same. Regular mock drills will integrate the DWAS as part of the exercise. 14. Two stage bidding process for supply and installation of the early warning systems has been initiated following Bank guidelines for procurement of goods. The 2nd stage bid process is underway. Two bids were opened in October 2012 and are under evaluation. The contract after due selection process is scheduled to be awarded by the end of June 2013. The work is scheduled to be completed by December 2014. 15. Subcomponent 1.3: Resilient Electrical Network - US$66.3 million -The coastal belt of Tamil Nadu experiences extensive damage during natural calamities such as the tsunami and cyclones like Thane and Nilam. Normally major damages occur in Cuddalore and Nagapattinam Districts. The electrical infrastructure gets badly affected resulting in breakdown of electricity, causes injury and even death and hampers relief and rescue. Re-establishing of infrastructure is not only time consuming, affecting business, industry, school, hospitals and everyday living but also expensive. It is proposed to convert HT& LT overhead lines into HT< cables for easy restoration of supply in a phased manner, in cyclone prone Nagapattinam/Velankanni (HT - 250 km; LT - 60 km) and Cuddalore (HT- 162 km; LT 512km) towns. Detailed Project report for this component will be prepared and appraised. The component will also include related works such as restoration/ shifting of services and provision of service connections. This sub-component will be implemented by Tamil Nadu Generation and Distribution Corporation (TANGEDCO), who has made a survey and identified the lines to be converted in to cable initially. Component 2 -Sustainable Fisheries: Works pertaining to Fisheries sector: US$ 59.2 million 16. The fisheries sector and the communities dependent on fishing are the most vulnerable to natural disasters, climate change and the degradation of the marine environment. The Fisheries sector provides livelihoods, not only to a large community of fisher-folk engaged directly in fishing activity but also a much large population engaged in selling, transporting, processing and other fisheries related activities. This component would address these gaps with a long term vision for the Fisheries sector and will include putting in place key reforms for the marine fisheries sub-sector particularly around co-management. The development objective of the sub- component is to implement a local reform process that will support improved performance in the marine fisheries sub-sector, characterized by more sustainable flows of social and economic benefits to coastal fisheries communities, and a healthy marine environment. Subcomponent 2.1: Fishing Infrastructure - US$37.2 million 17. Subcomponent 2.1.1-Ongoing Works US$ 24.4 million: This sub component, part of earlier ETRP consists of seven works: construction of fish landing centres at Nagore in Nagapattinam district and Portonovo-Annankoil in Cuddalore district; reconstruction and modernization of fishing harbor at Nagapattinam and Pazhayar in Nagapattinam district; providing permanent opening of Vellar river barmouth in Cuddalore district and Uppanar river bar mouth in Nagapattinam district and establishment of a tube ice plant cum chilling room facilities at Chinnamuttom, fishing harbor in Kanyakumari district. This sub-component is being 31 executed by the Department of Fisheries. Implementation of these works, after following the Bank procurement processes and safeguard policies, were started in ETRP and are currently ongoing. The works are at various stages of completion and are expected to be completed by middle of 2014. 18. Subcomponent 2.1.2- New Works US$ 12.8 million: Two additional fisheries infrastructure; Reconstruction and Modernization of fishing harbor at Mallipattinam and permanent stability of coastal inlet at Punnakayal village will be taken up as part of the Project. Subcomponent 2.2: FIMUSUL II - US$ 22 million - This subcomponent will have five activities as defined in the section below: 19. Subcomponent 2.2.1- Implementation of Marine Fisheries Co-Management - US$ 5 million - Local fisheries co-management platforms and community institutions will be developed and strengthened across three selected Fisheries Management Units (FMUs) leading to participatory fisheries management plans (FMPs). Based on the recommendations of FIMSUL-I and the opinion of the Fisheries Department of GoTN potential FMU sites include the Palk Bay districts, Chennai fishing harbor, and the Pulicat Lake, with fishers numbering about 15,000. FMPs will cover fish harvesting possibilities, catch and capacity control, technical and precautionary management measures, structure and arrangements for access and "use rights" and fiscal arrangements, etc. Participating communities, backed by technical support will implement the FMPs. A monitoring system for fisheries co-management will be developed and applied in the FMUs; indicators could include; sustained harvests of the right size of fish, equity in sharing resource access, reduced conflicts, capacity of the fishing fleet in comparison to the resource availability, sustainability of the resource base, level of income and employment generated on the basis of fish resource exploitation, etc. Community institutions will participate in local fisheries monitoring, control, and surveillance (MCS), and safety. Where a FMU includes onshore fisheries infrastructure, respective harbor committees will be strengthened and supported to improve management and coordination. Linkages will also be developed with a separate GEF- financed project4 20. Subcomponent 2.2.2-Improved Capacities and Knowledge Management - US$ 0.9 million - This sub-component will strengthen professional knowledge and skills of DoF staff at headquarters and field level, and build better systems for knowledge management and sharing. Training would include: implementation of the Code of Conduct for Responsible Fisheries (CCRF); MCS; data collection procedures, enforcement of rules and regulations for marine fisheries management through co-management; fisheries management systems based on maximizing net benefits using the ecosystem approach in fisheries; together with effective arrangements regarding use and access rights as articulated by the FAO CCRF; resource enhancement; co-management and participatory methodologies; program planning and management; human resource management; and M&E. The DoF documentation center would be upgraded and a meta-data base would be developed to support knowledge sharing with a wider audience. Web sites for FIMSUL and the DoF would be upgraded and maintained. Participating 4 As part of the Global Partnerships for Oceans (GPO) Program the World Bank is preparing a new project, "Areas Beyond National Jurisdiction" (ABNJ), financed by the Global Environment Facility (GEF) and implemented by the World Bank. 32 communities, fishers and processors will also undergo training and local exposure visits covering fishers rights; modem fishing techniques; deep sea venture, sea safety, etc. Development and dissemination of guidelines for vessel construction will be undertaken. NGOs training will include fisheries management. 21. Subcomponent 2.2.3-Fisheries Livelihood Support - US$2.4 million - This sub- component will focus on enhancing fisheries livelihoods, to benefit fishers suffering from low catches and income, while also providing options to broaden their livelihood base to non- fisheries alternatives. Activities will support specialized technical assistance, provision of low- cost equipment, and long-term support to improve value addition and market access with existing fisheries and non-fisheries livelihoods. Stronger linkages will be developed with other, more comprehensive rural livelihood schemes such as NRLP, NFDB and Vazhtu Kaatuvom, to bring the benefits of these programs to coastal fishing communities. 22. Subcomponent 2.2.4-Management support - US$0.7 million - Activities will strengthen the capacity of the DoF to implement the sub-component through acquisition of computer equipment, software, transport rental, and incremental staff costs for technical specialists. A sub- component monitoring and evaluation system will be developed (in harmony with a system for Puducherry) to support broader sub-component management, reporting and evaluation. The system will support monitoring of inputs and outputs, key processes, impacts and outcomes, and build on the work in FIMSUL-I to develop a baseline of relevant indicators and a computer based M&E system. 23. Subcomponent 2.2.5-Providing Wireless Communication facilities to ensure safety of Tamil Nadu Marine fisheries - US$ 13 million - Marine fisheries is a hazardous and dangerous occupation with a relatively high rate of injury and death among fishers. As the inshore areas of the sea are almost over-exploited and the fishers venture to offshore areas and deep sea in search of fishery resources, accidents occur at high-sea due to inclement weather conditions, engine failure, collisions, and vagaries of nature. At times of disasters the fishers at sea cannot be informed. In addition the International Maritime Boundary Line (IMBL) is very close to Sri Lanka in the Southern side of Palk Bay and the fishers of certain districts tend to cross the IMBL inadvertently. The GoTN has taken the initiative to provide Seamless Communication Network across the TN coast to provide communication between shore and sea and between fishers themselves at sea. Under FIMSUL it has been recommended that appropriate mechanism should be developed for improved communication for the stakeholders and the institutions concerned. Under this sub-component it has been proposed that a detailed technical feasibility study be undertaken looking at all available existing, ongoing or planned communication towers, including those as part of the DWAS sub-component of the CDRRP and those in use by the Minor Ports department. 24. Linkages with proposed FAO-TCP bridging project - The GoTN is exploring a 12- month Technical Cooperation Program (TCP) bridging grant to provide both TN and Py with FAO technical assistance during CDRRP preparation and early implementation. The TCP could focus on the following: 33 * Scoping study on land-to-sea communications system * Focused study on strengthening legal/regulatory framework for co-management * Work with the two FDs to develop detailed activities and cost tables for the broader sub- component and more detailed planning of co-management activities across four coastal sites * Develop draft agreements between FAO and GoTN and GoPy for submission to the Bank for implementation under the CDRRP * Help develop plan for expanding scope of harbor committees to support infrastructure management, MCS and safety * Draft TORs for key national specialists needed to strengthen PIUs of TN and Puducherry Fisheries Departments 25. Linkages with GEF Global Partnership for Oceans Program - The World Bank is a member of the Global Partnership for Oceans (GPO) Program, which brings together 100 governments, private companies and associations, multi-lateral development banks, UN agencies and research organizations to prepare time-bound investment packages in up to 10 priority ocean areas. As part of the GPO, the Bank is preparing a new "Areas Beyond National Jurisdictions" (ABNJ) Project financed by the Global Environment Facility (GEF) and implemented by the Bank. It addresses fisheries policy and management issues with migratory stocks in deeper seas that cut across national jurisdictions. The deep sea tuna stocks migrating around India, Sri Lanka and Maldives have been identified as one priority regional case. 26. The regional offshore tuna management case study could be anchored through the Bay of Bengal Program, in Chennai. India is shifting significant fishing effort to deep sea migratory (tuna) fisheries. Mechanized fleets of Tamil Nadu and Puducherry are fishing increasingly in seas outside the jurisdiction of India. ABNJ would focus on offshore tuna stocks, FIMSUL-II (CDRRP) would focus on inshore fisheries management and both would commence operations in 2013 and operate for four years. Although the ABNJ project would be operated by BOBP, this would be fully coordinated with the CDRRP (FIMSUL-II) in several aspects including possible co-funded pilots, fielding of international experts, collaborative workshops, etc. The ABNJ India based case study could be financed up to US$10 million in activities and would be implemented by the Bank's Agriculture and Environmental Services fisheries anchor team, with support from several international agencies such as Conservation International. The ABNJ would be operated as a separate project, but with collaboration in the fielding of international experts, collaborative workshops, etc. with the CDRRP (FIMSUL-II) 27. The FIMSUL - II sub-components like Co-Management, Fisheries Livelihood support will build economic resilience in this vulnerable community and the sub-component; Provision of communication facilities will significantly improve safety. These in turn will build capacity in management of disaster risk and build disaster resilience amongst the fishing community. Component 3 - Capacity building in Disaster Risk Management: US$9.7 million 28. Activities financed under this component will primarily focus on strengthening the capacity of Government institutions, primarily the State Disaster Management Authority (SDMA), civil society, the school education system and the coastal communities in Disaster Risk Management. This will have following four sub-components. 34 29. Sub Component 3.1-Operationalization of State Disaster Management Authority - US$5 million - The Disaster Management Act in 2005, paved the way for the creation of the NDMA at the national and SDMAs at the state level. The SDMA has a clear mandate for spearheading disaster management efforts in the state. The TN State Disaster Management Authority (SDMA) is at a nascent stage. The objective of this component is to operationalize the SDMA making it the focal agency for pre, during and post-disaster management activities, positively impacting the CDRRP and all other risk management efforts in the state. This will be done taking into account the already existing programs at the Centre and State level concerning the SDMA. The following specific activities will be undertaken. 30. Subcomponent 3.1.1-Setting up a Centre for Disaster Management US$1.8 million - A detailed assessment will be carried out towards technical and non-technical staff, equipment and institutional capacity building needs. In addition specific technical studies for risk and vulnerability assessment etc. and setting up of the emergency operations center will be taken up. Study of current gaps therein for catering to capacity building of government as well as non- government stakeholders at strategic level will be undertaken. International good practices on Centers of Excellence on disaster management as well as other States DMAs such as Odisha and Gujarat SDMAs will be studied for their operational framework and the lessons learnt will be customized for the Tamil Nadu context. Technical Assistance will be extended to the state towards undertaking feasibility studies, DPRs, EIA, SIA and other such project requirements. Capacity of state and local government officials will be strengthened through augmenting institutional and implementation arrangements for various disasters; preparing post disaster recovery frameworks; developing simplified procurement procedures and accountability mechanisms. 31. Subcomponent 3.1.2-Setting up a comprehensive GIS platform and GIS cell in the SDMA - US$3.2 million - To meet this objective a robust methodology supported by the use of scientific tools like the Geographical Information System (GIS), Global Positioning System (GPS), remote sensing and others will be developed in this sub-component. The process of generating a comprehensive GIS database will be done at multiple levels. As a first phase it could start with the Coastal belt as applicable to the CDRRP. It will typically start with a review of existing GIS databases on this region. Based on the results of this review the next stage could include the integration of data using topographic maps from the Survey of India (Sol) and CRZ maps from appropriate sources, already existing mapped data from ICZM sub-component and other such. GPS data on proposed site locations for projects within the CDRRP will be collected from the field and positioned in the GIS data layers. The next stage would include the integration of thematic layers like roads, forest land, water bodies, weather data and others that may be obtained from different sources like from the Indian Meteorological Department (TID), Indian Space Research Organization, Environment & Forest Department, Land and RAMMD others to form a CRZ/ near coastal map of the state. Satellite data from reliable sources will be integrated into the GIS layers and used for verification and for generating a precise picture risk assessment of the coastal region. A detailed, updateable GIS data-base in turn will assist in establishing a well-informed project implementation plan and project monitoring. The use of GIS will also helped determine with great precision the CRZ status, the need for environmental or other clearances of the proposed infrastructure and help in phasing the work. 35 32. Subcomponent 3.2 Community Based Disaster Risk Management Program: US$2.8 million - The objective of the Coastal Disaster Risk Reduction Project (CDRRP) is the 'Long Term Vulnerability Reduction of Coastal Communities of Tamil Nadu'. A Community Based Disaster Risk Management (CBDRM) program has been designed to help communities better utilize risk mitigation infrastructure and work together with local governance system while mobilizing themselves to be better prepared as well as respond to any disaster event. The CBDRM program will play a vital role in achieving the CDRRP project objectives. 33. The CBDRM program will be rolled out in two phases. The first phase will cover one or two project districts with advanced execution of risk mitigation infrastructure. The phased approach will build partner NGO capacity, demonstrate the value and processes of CBDRM to local and state government and understand the challenges faced in implementation in the coastal communities. It is essential that the CBDRM program be taken forward by GoTN beyond the CDRRP project cycle and the required institutional framework creation will be integral to the CDRRP. The second phase will involve scaling-up of this program to other districts. 34. The CBDRM program will be hosted by the RD & PR Department. One lead NGO/ Institution with substantial knowledge and experience of CBDRM in coastal Tamil Nadu will be appointed. The lead NGO/ Institution will be responsible for the state wide program, which will include actual implementation and training, capacity building of partner NGOs. Appropriately experienced NGOs will be identified for carrying out the CBDRM program either per district or a group of districts. NGOs that were engaged to work on the Housing Reconstruction component, depending on their performance and CBDRM capacity may be short listed for the CBDRM sub-component. The District Collectors office will be the responsible agency at the District level. State level Monitoring and Implementation will be with the RD & PR Department which will coordinate with the Project Management Unit (PMU). The following different activities will be part of CBDRM program: a) Risk & Vulnerability Assessments - The exercise will review and upgrade similar initiatives undertaken in the recent past (UNDP-DRMP, IFAD-PTSLP, ICZMP, others). The participation of the most vulnerable sections will be prioritized. Participatory Rural Appraisal (PRA) tools and methodology will be used to carry out the assessments covering hazards, vulnerabilities, capacities, assets and disaster risk. Using a multi-stakeholder dialogue and negotiation process Disaster Risk Management Plans (DRMP) will be created at village level. The DRMPs will list and map the most vulnerable communities, their locations, the risk exposure, the action to be taken, the responsible agencies/persons, their contact numbers. The efficacy of the DRMPs will be checked using mock drill exercises. The DRMP will be periodically reviewed and updated. A bound hardcopy of this exercise will be deposited with the Panchayat office and a soft copy will be deposited with the District administration. b) Community Mobilization and Capacity Building - This will include awareness on disaster risk and preparedness at village level. VDMC with representation from vulnerable groups, SHG groups, each hamlet that comprises the village panchayat, school teacher, and village panchayat president will be formed. Two task forces, Early Warning & Evacuation task force and Search, Rescue and First Aid taskforce with multiple activities and skills are proposed. Mock drills will 36 be conducted annually or bi-annually. They will be linked to some date in order to create a regular event that will continue to be undertaken even after the CBDRM program comes to an end. A comprehensive Safe School Initiative will be undertaken in all schools in the area covered by the program can be seen as a school CBDRM program.. c) Linking Communities to DWAS and Evacuation Shelters-All CBDRM activities will be conducted at the locations of the DWAS and Evacuation shelters. This will create awareness of these infrastructures and also establish a physical focal point for DRM related activities in the villages. The partner NGOs through the DWAS & Evacuation task forces will inform the communities of the exact locations and functions of the DWAS, Evacuation Shelters & Evacuation Routes. A legally sound and accountable DWAS & Evacuation Shelter Maintenance and Management Committee (ESMMC) could be registered under the Societies Registration Act of 1870. The proposed model inspires from that developed over a period of time in Odisha by the OSDMA. Guidelines for the ESMMC will be established in consultation with all stakeholders. The villages served by the DWAS and Evacuation shelters will be categorized as 'Shelter village' and 'Served village'. The ESMMC will be formed in a Gram Sabha. The Block Development Officer will be the president, the community will appoint a secretary also the local tehsildar, revenue officer and others will be members. Women representatives from each of the 'shelter' and 'served' villages will be representatives in each committee. The ESMMC would have an accounts committee which would be empowered to handle account related matters. An account will be set up in the nearby branch and all transactions will happen through this account only. A corpus fund will be created with an initial fixed amount from the Government. Only the interest will be used for upkeep and small maintenance. Major repairs remain the responsibility of the RADMMD/SDMA. Though the process towards setting up of these committees would start at the earliest the actual ESMMCs will be formed only after the shelters and the DWAS have reached an advanced state of completion. In addition the nominated NGOs for CBDRM will be engaged for coordination of shelter and DWAS level activities. d) Capacity Strengthening for Emergency Response - This sub-component will look at the capacity building needs of institutions that are first responders in an emergency. The capacities of the Fire & Rescue Department will be assessed and appropriate training of frontline staff to bring them up to date with modem methods of rescue will be carried out. Special attention will be given to hazards that are district specific. The potential to bring on board the volunteer base of the Tamil Nadu Red Cross will be explored and links with the current program can also be built. The training needs for emergency response of the NSS & NCC student volunteer base will be assessed. With adequate training they could become part of a larger task force that can play an important role in Emergency situations. 35. Sub Component 3.3: Curriculum Development for disaster risk reduction in schools and training institutions -US$0.5 million - As part of a wider program, DRR is being introduced and mainstreamed in school education and in training programs for different levels of Government functionaries. This will involve a review of the current status of school and training institutions curriculum with respect to the state of Tamil Nadu, identify the shortfalls and gaps, and then based on international best practice in DRR education, devise DRR curriculum for schools and training institutions. 37 36. Subcomponent 3.4: Integrated Coastal Zone Management Plan - US$1.4 million - With the objective of protection and judicious use of natural resources in a sustainable manner the work of completing the Integrated Coastal Zone Management Plan was undertaken in the earlier ETRP and the work is ongoing. This sub-component includes the Preparation of Integrated Coastal Zone Management Plan, Preparation of Coastal Vulnerability Maps and Preparation of training module for the entire coast of Tamil Nadu. The consultant has submitted all the deliverables. A Review Committee Meeting under the chairmanship of the Director of Environment reviewed the work in November 2012 and comments/ suggestions have been forwarded to the consultant for incorporation. Further, it has been decided to convene a stakeholders meeting for obtaining their suggestions/comments on the ICZM plan submitted by the consultant. After incorporating the suggestions/comments offered by the stakeholders, the consultant has to submit the revised final plan/reports. Under the CDRRP this subcomponent will take the ongoing study to its conclusion leading to the completion of the ICZM. The ICZM training will be implemented and the ongoing work of installation of HTL pillar will be completed by March 2014. Component 4 - Implementation Support: US$13.4 million 37. This component would finance activities required for project implementation. These would include incremental operating costs as well as the cost of operating the Project Management Unit (PMU) and Project Implementation Units in the respective Departments in Tamil Nadu. In addition the component will include consultancies required for preparation and supervision of specific activities, training, exposure visits and knowledge exchange programs etc. Union Territory of Puducherry Component 1: Vulnerability Reduction - US$ 34.0 million Subcomponent 1.1: Construction of multi hazard resilient permanent houses 38. Subcomponent 1.1.1-Ongoing housing: US $3.7 million - Construction of about 1750 multi-hazard resilient houses in the zone 200 - 1000 meters was taken up in ETRP. From these 1750, about 1450 were in situ constructions and about 300 houses were undertaken for Construction through a contractor at Nallavadu. The criteria for selection of households to be rebuilt as part of the ETRP were: (a) Fully thatched houses; (b) Houses with thatched/temporary roofs with any kind of wall like mud, brick, etc.; (c) Houses with mud walls with any kind of roof structure; (d) Houses with brick walls and mud mortar with any kind of roof structure; and, (e) Houses built with Government finance earlier which are ten years' old or more as on January 1,2006. 39. The in-situ Owner Driven Reconstruction houses have been more or less been completed and occupied by respective families. The 300 contractor constructed houses are under advanced stages of completion. 38 40. Subcomponent 1.1.2-Provision of In-situ Multi-hazard resilient housing in the vulnerable coastal areas - US$6.4 million - In-situ and owner driven construction enhances involvement of beneficiaries and reduces the risk of non-availability of land for relocation of households. Therefore, it is proposed to rebuild additional 1000 multi hazard resilient houses in place of vulnerable thatched/ tiled roofs using the 'in-situ owner build' model. 41. Beneficiaries will be identified by the DR&DM using the following selection criteria: (a) ordinary resident of Union Territory of Puducherry; (b) belonging to below poverty line (BPL) category; (c) living in hut, thatched house, tiled house and or other temporary accommodation in areas vulnerable to natural hazards; (d) possessing clear title over the land in which his/her house is located and a minimum extent of 375 square feet. In addition families having received assistance under any of the housing schemes of the GoPy or any other Government will not be eligible. Necessary applications will be received from short listed beneficiaries. After scrutiny and following the grievance redress process PIA will disclose the final list. The required permissions from the Puducherry Planning Authority and CRZ clearances will be obtained by PIA. , Beneficiaries will enter an agreement with the PIA, following which installments will be released to the beneficiaries. The proposal is to build houses of average plinth area of about 325 square feet, with an average cost of 5 lakhs, out of which the project would contribute Rs. 3.5 lakhs, or as agreed from time to time, and the rest would be contributed by the beneficiaries. The work is proposed to start in August 2013. 42. Cash grants will be passed on to eligible beneficiaries in their bank accounts in four installments based on the certification by Engineers that the previous installment has been utilized, and that earthquake and cyclone resilient features have been incorporated in the construction. 30% of the mobilization advance on signing of agreement, 30% on completion up to roof level (before roofing), 25% on completion of roofing and 15% on completion of the work or as agreed from time to time. 43. The Project Management Consultant (PMC) to be established for the project will support the Owner Driven House Construction program through undertaking community interface, building beneficiary capacity and providing technical support. This sub-component will be overseen by the PIA. 44. Subcomponent 1.2-Rehabilitation of Old Govt. Buildings/bridges including construction of new bridges as alternate/ standby to the old ones - US$7.3 million - This would strengthen and rehabilitate existing public infrastructure like the Mairie building (Town Hall) and one or two other similar public buildings in Puducherry, three old existing bridges and rebuilding of two culverts in Puducherry. These would make the existing infrastructure multi- hazard resilient simultaneously help preserve the heritage of Puducherry. 45. Subcomponent 1.2.1-Rehabilitation of Heritage Public Buildings US$2.2 million - The proposed works include the Mairie Building (Town Hall), which is located on the Beach road and housed the offices of the Puducherry Municipality and other buildings that would be identified during the project. Mairie building was affected by the Tsunami and then further damaged by Cyclone Thane, resulting in the building remaining unused and empty. INTACH, Puducherry chapter has undertaken a study of the same and come up with plans and estimates for 39 restoration. Considering the unique heritage value and the specialized techniques, methods and management needed for such a project a single source contract to INTACH Puducherry chapter or other competent and eligible specialized agency, for implementing and supervising the restoration work is proposed. This will be overseen by the PIA. 46. Subcomponent 1.2.2-Strengthening, Rehabilitation and Reconstruction of three Existing Old Bridges US$4.6 million - The repair and rehabilitation of the existing old Ariyankuppam bridge on NH 45A over the Ariyankuppam river is being proposed under the CDRRP. This bridge was constructed in 1888 using a brick arch constructive system. The bridge is unable to stand heavy traffic load and a new four lane bridge has been constructed on the upstream side. This bridge however continues to be used and will continue to be used by light traffic. In addition the old masonry bridge is the only approach to the villages of Ariankuppam and Veerampattinam with a population of 30,000. 47. Strengthening and rehabilitation of the old bridge dating 120 years, located at Chunnambar, Noonankuppam is proposed. Due to damages and insufficient width a two lane bridge was constructed in 1998. However with increased traffic flow there is renewed need to strengthen and rehabilitate this old bridge. A detailed structural assessment has been undertaken by a structural engineer qualified to design repairs for heritage bridges. The repair and restoration would to the extent possible retain the original character of the bridge. Needed expertise considering the heritage value of the structure will be solicited. Reconstruction of existing old bridge on Cuddalore road, near Thavalakuppam, Puducherry has been proposed as with increasing traffic density on the NH 45A the current two lane bridge is falling short, hence the bridge needs to be reconstructed to ease traffic pressure. DPRs for these sub-components prepared by the PWD are ready and the process for environmental clearance has been initiated. 48. Subcomponent 1.2.3-Reconstruction of two culverts US$0.5 million - Reconstruction and widening of two culverts located on Vaithkuppam road over Karuvadikuppam drain near old distilleries and a second one near old Maravadi Street are proposed. These culverts were built about 50 years ago and are located right next to the sea-shore. Due to severe salinity these have suffered damage. They are an important and times only means of access and/or evacuation during times of distress. It is proposed to rebuild these culverts and bring them to standards as per future needs. PWD has prepared the DPRs and will be responsible for the bridge and culvert sub-components. 49. Subcomponent 1.3: Replacement of overhead (O.H.) lines by underground (U.G.) cables to avoid exposure to risk of cyclone and winds - US$16.6 million - Cyclone Thane caused wide spread damage to electricity infrastructure. Fallen electrical poles and cables resulted in human deaths and widespread disruption of life and difficulty of access affecting rescue and relief work. This is a phenomenon that repeats itself in varying degrees after almost every cyclone. Re-establishing connections is not only time consuming, it inconveniences householders and businesses. The replacement of O.H. lines with U.G. cables will result in risk reduction and enhanced safety of life and property. In addition it will help restore power supply at times of disaster with minimum delay. In total, 900 km. of underground cabling will be undertaken under this subcomponent. 40 50. This sub-component is proposed to cover about 37,000 connections including over 26,500 domestic connections. It is proposed along the east of the ECR and will convert Low Tension OH line to U.G. cable. It will cover Commercial, Domestic, Industrial/Agriculture connections and 100 KVa, 200 KVa and 315KVa distribution transformers. In addition it would include erection of automatic street light timers, energy efficient street lighting, distribution boxes and dismantling of lines after conversion and restoration of all dug up portions. These works are proposed for the area covered by six O&M offices; Murungapakkam, Thavalakuppam, Ariyankuppam, Kirumampakkam and Kalapet. This sub-component will be undertaken by the PIA with deputation of technical and supervisory personnel from the Electricity Department of the Government of Puducherry. Component 2 -Sustainable Fisheries - US$22.8 million 51. Subcomponent 2.1: Fisheries Infrastructure - US$21.4 million - The objective of this subcomponent is to improve the fishing infrastructure and safety. Total 17 packages are proposed out of which 10 were started in ETRP. For balance 7, statutory clearances have been obtained and designs and bidding documents are ready. 52. Subcomponent 2.2: FIMSUL II - US$1.4 million - This subcomponent will have four activities and will be fully coordinated with parallel effort being undertaken in Tamil Nadu. These are as defined in the section below: 53. Subcomponent 2.2.1 -Implementation of Marine Fisheries Co-Management - US$ 0.5 million - Activities will focus on implementing a co-management approach at one specific site along the Coromandel coast. As in Tamil Nadu, local fisheries co-management platforms and institutions will be developed and strengthened as a precursor to developing and implementing a participatory FMP in the FMU. A similar monitoring system for fisheries co- management will be developed and applied in the co-management site. Community institutions will be strengthened to participate in local fisheries monitoring, control, surveillance and safety. Harbor committees will be supported to improve management and coordination of onshore fisheries infrastructure. 54. Subcomponent 2.2.2-Improved Capacities and Knowledge Management - US$ 0.2 million - Activities will strengthen professional knowledge and skills for DoF staff at headquarters and field level, and build better systems for knowledge management/sharing. Core focal areas would be similar to the proposed capacity building in Tamil Nadu. Training would be through formal courses, hands-on work under the guidance of technical experts, web-based programs, and national and international exposure visits. Web sites for FIMSUL and the DoF would be upgraded and maintained. Capacities of participating communities will also be strengthened through, local exposure visits and trainings. Training of fishers and processors will include awareness on fisher's rights; modern techniques of fishing; preservation and value addition; deep sea venture, etc. Training of NGOs will be undertaken to help develop their knowledge around fisheries management. Sea safety will be enhanced through training of fishers along with the development and dissemination of guidelines for vessel construction. 55. Subcomponent 2.2.3 Fisheries Livelihood Support- US$ 0.5 million - As in Tamil Nadu, activities will support specialized technical assistance and support to fisheries 41 communities to improve value addition and market access with existing fisheries and non- fisheries livelihoods. 56. Subcomponent 2.2.4 -Management Support US$ 0.2 million - Activities will strengthen the capacity of the DoF to implement the sub-component through acquisition of computer equipment, software, transport and incremental staff costs for technical specialists. A sub-component monitoring and evaluation system will be developed to support broader sub- component, management, reporting and evaluation. The system will support monitoring of inputs and outputs, key processes, impacts and outcomes, and build on the work in FIMSUL-I to develop a baseline of relevant indicators and a computer based M&E system. The M&E system would be compatible with the proposed system for Tamil Nadu to support joint reporting. As in the case of Tamil Nadu, linkages will be developed with other programs like the GEF and the TCP partnering FAO. 57. Linkages with the Global Environment Funded Facility's (GEF), Bank implemented Areas Beyond National Jurisdiction (ABNJ), Bank led Global Partnership for Oceans (GPO) Program and FAO's Technical Cooperation Program (TCP) will be established for providing technical support to Fisheries Department's PIU for the implementation of the activities, which includes : > Focused study on strengthening legal/regulatory framework for co-management > Work with the two FDs to develop detailed activities and cost tables for the broader sub-component and more detailed planning of co-management activities across four coastal sites > Develop draft agreements between FAO and GoPy for submission to the Bank for implementation under the CDRRP > Help develop plan for expanding scope of harbor committees to support infrastructure management, MCS and safety Component 3 - Capacity building in Disaster Risk Management: US$2.7 million 58. The following two activities will be part of this component: 59. Sub component 3.1 - Procurement of search and rescue equipment, vehicles and training to Fire Service - US$1.8 million - The Fire Service is the first line of response in times of emergency and play an important role in saving lives. As population densities have increased the complexities of disasters and importance of disaster response have gone up. Due to escalating land cost the buildings in Puducherry region are going taller. Firefighting and rescue operation in these multistoried buildings in current equipment is practically difficult. In this situation the Sky lift/ Aerial Ladder platform will be useful. Similarly other equipment will be useful in times of natural and man-made disasters for effective Search and Rescue. Strengthening the Fire Service in terms of modem equipment and training will play an important role in risk reduction. Currently the equipment identified is one Sky lift/ Turn Ladder, four sets of Lifting Tools, Four sets of Cutting tools (Wood, Metal & Concrete), two sets of Hydraulic Rescue Tool Sets, Two sets of Pumps (High pressure and floating), two Nos Life Detectors and two Quick Response vehicles. The specifications for different equipment are being sourced. 42 60. The needs of the Fire Services in terms of training and equipment will be analyzed by an expert consultant. Based on these findings and in discussion with the GoPy and the Fire Department a list of items and training programs will be commissioned. 61. Sub component 3.2 - Strengthening of Emergency Operation Centre - US$0.76 million - An Emergency Operation Centre along with a decision support system has been established in Puducherry and Karaikal. The systems are now standalone basis, these will be integrated and expanded to make them more useful for disaster management (planning and response) A detailed study to assess the needs will be carried out. A Community based Disaster Risk Management Programme that would also integrate the community with the EOC will be implemented. 62. Sub component 3.3 -Demarcation of High Tide Line US$0.14 million -Development of maps demarcating the high tide line will be implemented by PIA in coordination with Department of Science, Technology and Environment. Component 4 - Implementation Support: US$4.8 million 63. This component would finance activities required for project implementation. These would include incremental operating costs as well as the cost of operating the Project Implementation Agency (PIA) in Puducherry and for outside consultancies required for preparation and supervision of specific activities including trainings, exposure visits and knowledge exchange programs etc. Component 5 - Contingent Emergency Response for both Tamil Nadu and Puducherry: US$0 million 64. Following an adverse natural event that causes a major natural disaster, the Government of Tamil Nadu and/or Puducherry may request the Bank to re-allocate project funds to support response and reconstruction. This component would draw resources from the unallocated expenditure category and/or allow the governments to request the Bank to re-categorize and reallocate financing from other project components to partially cover emergency response and recovery costs. This component could also be used to channel additional funds should they become available through as a result of the emergency. 65. Disbursements would be made against a positive list of critical goods or the procurement of works, and consultant services required to support the immediate response and recovery needs of the Government. All expenditures under this component, should it be triggered, will be in accordance with paragraph 11 of OP 10.00 and will be appraised, reviewed and found to be acceptable to the Bank before any disbursement is made. In accordance with paragraph 11 and 12 of OP 10.00, this component would provide immediate, quick-disbursing support to finance goods (positive list agreed with the Government), works, and services needed for response, mitigation, and recovery and reconstruction activities. Operating costs eligible for financing would include the incremental expenses incurred by the Government for early recovery efforts arising as a result of the impact of major natural disasters. 43 66. Goods, Works and Services under this component would be financed based on review of satisfactory supporting documentation presented by the government including adherence to appropriate procurement practices in emergency context. All supporting documents for reimbursement of such expenditures will be verified by the Internal Auditors of the Government and by the Project Director, certifying that the expenditures were incurred for the intended purpose and to enable a fast recovery following the damage caused by adverse natural events, before the Application is submitted to the Bank. This verification should be sent to the Bank together with the Application. 67. Specific eligible expenditures under the category of Goods include: (i) construction materials; water, land and air transport equipment, including supplies and spare parts; (ii) school supplies and equipment; (iii) medical supplies and equipment; (iv) petroleum and fuel products; (v) construction equipment and industrial machinery; and (vi) communications equipment. 68. Specific eligible expenditures under the category of Works may include urgent infrastructure works (repairs, rehabilitation, construction, etc.) to mitigate the risks associated with the disaster for affected populations. Specific eligible expenditures under the category of Services may include urgent studies (either technical, social, environmental, etc.) necessary as a result of the effects of the disaster (identification of priority works, feasibility assessments, delivery of related analyses, etc.). 44 Annex 3: Implementation Arrangements INDIA: Coastal Disaster Risk Reduction Project, Tamil Nadu and Puducherry I. Project Institutional and Implementation Arrangements Tamil Nadu 1. Tamil Nadu has established a three-tier implementation system. At the state level, a Steering Committee is responsible for providing overall guidance to the executing agencies, while an Empowered Committee will be responsible for securing all requisite approvals and sanctions. The Project Management Unit (PMU) is located in the Office of the Commissioner of the Revenue Administration which will be responsible for the coordination and monitoring of the implementing line departments/ agencies as well as overall monitoring and evaluation of Project implementation. While the State Relief Commissioner will be the Project Coordinator at the state level, a Project Director is assigned to the project. 2. The PMU will employ the necessary specialists in areas such as communication, environmental, social, financial and technical. Majority of the required power is already in place the balance will be recruited. The PMU will be over all responsible for the project implementation, monitoring, safeguard and fiduciary compliance and financial management. 3. Line departments constitute the second tier and will carry out design, documentation, procurement, implement and supervise the works. District level setup constitutes the third tier. RD & PR Department has created a nodal PIU at state level and District PIUs at district level to implement the vulnerable housing and evacuation route program. All other agencies have state designated level PIU and use their regular setup for implementation of works in the field. Puducherry 4. Puducherry has established a two-tier system. The Governing Body of the PIA is responsible for policy, monitoring and supervision to be supported by Project Monitoring Committees at the regional level. The Project will be implemented by the Project Implementation Agency (PIA) created under the DR&DM and headed by a Project Director. The PIA will be responsible for overall coordination, safeguard and fiduciary compliance, financial management, monitoring and evaluation, procurement and implementation of all components. The PIA is staffed with Joint Project Director, technical and administration and technical and financial management. PIA capacity will be augmented to include environment, social and other necessary skills. 5. It is proposed to implement works related to the Public Works Department by the respective agency and other works including cyclone resilient electrical network by the PIA. The financial management and payments will continue to be made by the PIA which will continue to be the nodal agency for the CDRRP. In addition PIA will provide procurement and project monitoring support. 45 II. Project Administration Mechanisms 6. The following table lists the implementation arrangements for individual components and subcomponents. Table 5: Implementation Departments for Project Components Component Implementing Agency Comments Tamil Nadu Resilient housing and Evacuation RD & PR Department State level PIU through the Routes district PIUs. Upon completion of works the PIU and DIUs will wind up. Evacuation shelters Public Works Department Assets to be handed over to Panchayats Early warning system PMU Assets to be handed over to Panchayats at village level Resilient Electrical Network Tamil Nadu Generation and Distribution Corporation (TANGEDCO) Sustainable Fisheries (FIMSUL - Fisheries Department Assistance from GEF and II) FAO Operationalization of SDMA PMU and SDMA Community Based Disaster Risk RD & PR Department through the RD & PR Department with Management Program district and sub district offices and SIRD. partnering with State Institute of Rural Development (SIRD). Integrated Coastal Zone Department of Environment and Management Plan and HTL Forest through the Director of pillars Environment. Puducherry Buildings, Roads and Bridges Public Works Department (Buildings Fund flow through PIA through INTACH or other competent and eligible specialized agency - single sourced) Housing, Sustainable Fisheries, PIA Strengthening Risk reduction Response capacity, Resilient Electrical Network, FIMSUL - II, Demarcation of HTL 46 III. Financial Management, Disbursements and Procurement Financial Management 7. Tamil Nadu: The project will be implemented by multiple line departments of GoTN - i.e. PMU, RD & PR Department, Public Works Department, Fisheries, Environment & Forest Department and Tamil Nadu Generation and Distribution Corporation (TANGEDCO)'. The Project Management Unit (PMU) will be the nodal agency and will provide overall guidance to implement this project. The project director in the PMU will be assisted by a Financial Management consultant to support on the financial management functions. 8. Budgeting and funds flow: The project activities will be budgeted in the demand for grants of the State Budget by the respective line departments based on the Annual Work Plans (AWP) developed for each financial year. The AWP and budgetary allocations will be reviewed by the PMU to make certain that adequate budget provisions are made to implement the project activities. The budget allocations will be approved by the State Finance Department. The budget heads/component-wise sub-heads established under the earlier Emergency Tsunami Reconstruction project will used to accommodate the funding requirements of this project. The respective line departments will request for additional component-wise sub-budget heads based on the funding requirements of the project. 9. The PMU, PWD and Environment & Forest Departments will use the GoTN treasury system for effecting payments. The RD & PR Department, Fisheries department and TANGEDCO will withdraw funds from the treasury into a separate Bank account for incurring expenditures. The budget allocation for implementing this project at the State Level will be provided by the State Finance Department and a Government Order (GO) to that effect will be issued which will provide authorization to the respective departments to operate/withdraw funds from the budget. 10. Accounting and Financial Reporting: The line departments will follow cash based government accounting system. The internal control system is governed by the State and Department Financial Rules. All the financial controls applicable for GoTN transactions will also apply to the expenditures incurred under this project. Separate books of accounts and subsidiary records will be maintained to account for the funds utilized under this project. The receipts and payments will be periodically reconciled with the Treasury and Bank Account statements. The IUFRs will be prepared by the respective line departments on the basis of these reconciled statements and will be submitted to the PMU within 30 days from the end of each calendar quarter. 11. The PMU will consolidate the individual IUFRs received from the line departments and will submit one combined IUFR to the Bank within 45 days from the end of each calendar quarter. This IUFR will provide detailed information on the sources and uses of funds as per the disbursement categories and project components. The disbursements under this project will be made on the basis of the quarterly Interim Financial Reports. The PMU will submit the IUFRs to TANGEDCO - new agency implementing Resilient Electrical component 47 the office of CAAA for claiming reimbursement from the Bank. The formats of Interim Financial Reports are agreed with PMU and are attached to the disbursement letter. 12. Staffing: The PMU will appoint one experienced finance professional to carry out the requisite financial management functions. The terms of reference have been agreed with the Bank. If considered necessary, additional accounting staff will be hired to support the PMU in financial management functions. Similarly, for the line departments, necessary finance staff will be hired to carry out the requisite financial management functions. 13. Internal Audit: The internal audit will cover the expenditures incurred by all the line departments. The ToR will be agreed with the Bank and a chartered accounting firm will be engaged to carry out this audit. The firm will be selected through a competitive process to be prior reviewed by the Bank. The audits will be conducted semi-annually and will provide feedback to the project management on any control weaknesses and issues (if any) that require management attention. The PMU and respective line departments will take effective steps to address the weaknesses highlighted by the auditors. The internal audit reports along with the corrective actions taken by the project to address the control weaknesses (if any) will be shared with the Bank. 14. External Audit: The annual audit of the Project Financial Statements (PFS) will be carried out by the State office of the Comptroller and Auditor General of India (CAG). The audit will be conducted as per the terms of reference agreed with the Bank and the audit report will be submitted within six months from the close of each financial year. The PFS will summarize all the receipts and expenditures of this project. The annual audit report would consist of (i) audit opinion; (ii) project financial statements; and (iii) management letter highlighting weaknesses, if any. The following audit reports will be monitored in ARCS: Table 6: Project Audit Reports and Auditors (Tamil Nadu) Implementing Agency Audit Report Auditor Due Date PMU, GoTN Audit report and consolidated C&AG of India December 31 of project financial statements each year DEA, Gol Designated Account C&AG of India December 31 of each year 15. Puducherry: The society (Project Implementation Agency) established under the Emergency Tsunami Reconstruction Project will implement this project. The project director in the PIA will be assisted by a financial controller, deputed from the Government to support on the financial management functions. 16. Accounting and Financial Reporting: The project activities will be budgeted by PIA based on the Annual Work Plans (AWP) developed by the respective line departments. The PIA will ensure that adequate budgetary provisions are made for the implementation of project activities and the funds are timely received as Grants in Aid from the Government of India. A separate Bank account will be opened to implement this project. The payment function will be centralized at PIA and the project director will have the authority to withdraw funds from this Bank account. All the project components (except roads, bridges and public buildings) will be implemented by PIA and the payments will be released from this Bank account. The activities 48 which are implemented by PWD, the bills/invoices for the completed works will be submitted to the office of PIA for payments. The receipts and payments will be reconciled periodically with the Bank Account statements. All the financial controls applicable for GoPy transactions will also apply to the expenditures incurred under this project. 17. The PIA will maintain separate books of accounts and subsidiary records to account for the funds utilized under this project. The Tally software purchased under the Emergency Tsunami Reconstruction Project will be used for accounting and reporting of project expenditures. The IUFRs will be prepared by PIA on the basis of these books of accounts/Tally statements and will be submitted to the Bank within 45 days from the end of each calendar quarter. These IUFRs will provide detailed information on the sources and uses of funds as per the disbursement categories and project components. The disbursements will be made on the basis of the quarterly Interim Financial Reports. The PIA will submit the Interim Financial Reports to the office of CAAA for claiming reimbursement from the Bank. The formats of Interim Financial Reports are agreed with PIA and are attached to the disbursement letter. 18. Staffing: The accounts division of the PIA is headed by one financial controller deputed by the Government and will get required assistance by the accounts officer. To provide additional support on the financial management functions, it has been agreed that services of a chartered accounting firm will be obtained. 19. External Audit: The external audit will be conducted annually by a firm of chartered accountants as per the terms of reference agreed with the Bank and the audit report will be submitted within nine (9) months from the end of each financial year. : Table 7: Project Audit Reports and Auditors (Puducherry) Implementing Agency Audit Report Auditor Due Date PIA, GoPy Annual audit report and project Private auditor December 31 of financial statements each year DEA, Gol Designated Account C&AG of India December 31 of each year 20. Public Disclosure: In line with the Bank's Access to Information policy, it has been agreed with PMU, GoTN and PIA, Puducherry that the annual audit report and project financial statements issued by the auditors will be disclosed in the project's website. 21. Project Supervision: During the initial stages of project implementation, the FM supervision will focus on compliance with the agreed action plan, including training on FM related aspects and addressing any financial management and disbursement related issues. As implementation progresses, the supervision would involve six monthly field visits to review the adequacy of the agreed Financial Management arrangements, review of IUFRs, internal and external audit reports etc. 22. Designated Account and Disbursement: An initial advance of US$30 million to GoTN and GoPy ($20 million for Tamil Nadu and $10 million for UT Puducherry) would be deposited into one segregated Designated Account maintained in USD at Reserve Bank of India, Mumbai, by CAAA, Gol. However initial advance for GoTN will be paid only after receipt of pending 49 ineligible expense under the earlier ETRP credit and FIMSUL grant. GoTN has agreed to firm up the ineligible expenses within three months from the date of negotiations and thereafter refund the same. Withdrawals from the designated account will be on the basis of withdrawal applications to the extent of reported expenditure in IUFRs from the Project Management Unit for GoTN and the Project Implementation Agency for GoPy. As per standard Centre- State mechanism of Additional Central Assistance, Gol will transfer the funds from the Bank to GoTN and GoPy on a back to back basis. Applications for advances into the designated account and reporting expenditures paid from DA would be processed by CAAA. In addition, other disbursement methods including Reimbursement and Direct Payment methods would be allowed. IV. Procurement A. General 23. Procurement for the proposed project would be carried out in accordance with the World Bank's "Guidelines: Procurement under IBRD Loans and IDA Credits" dated January 2011; and "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated January 2011 and the provisions stipulated in the Financing/Loan Agreement. The general description of various items under different expenditure category is described below. 24. The procurement plan will form the basis for all procurement methods and activities relating to the project. Thresholds mandating prior review of specific contract packages will also be determined through the procurement plan. All contract packages expected to be procured under the project will be listed in the procurement plan, along with their applicable methods of procurement and the Bank's review requirements, with the exception of the community contracts which due to their nature and large numbers cannot be predicted in advance and will be part of the project implementation plan identifying the community infrastructure schemes. Procurement plan has been prepared and disclosed on the project's website. 25. The Procurement Plan will be updated at least annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. 26. Procurement of Works: Works procured under this project would include [a] Construction of multi-hazard resilient permanent houses; [b] Construction of multipurpose evacuation shelters; [c] construction of evacuation routes with signage; [d] Construction of fish landing center, fishing harbor and stabilizing bar mouths; [e] strengthening of old government building/bridges/existing culverts in Puducherry; and [f] Replacement of overhead lines with underground cables in Puducherry, etc. 27. These works will be procured by National model document acceptable to and agreed with the Bank, or Shopping method following the procedures stipulated in paragraph 3.5 of the Procurement Guidelines. The Bank's SBD will be used for all ICB Civil Works Procurement. 28. Procurement of Goods: Goods procured under the Project would include emergency equipment and tools, specialized equipment [i.e. early warning system, wireless communication devices], machinery and vehicles for fire services, computers, furniture, printers, office 50 equipment, software and/or software licenses, etc. The Bank's SBD will be used for all ICB procurement, and National model documents acceptable to and as agreed with the Bank used for all NCB procurement of goods. For procurement of goods estimated below the Shopping threshold, Shopping procedures will be followed using procedures acceptable to and agreed with the Bank and in accordance with paragraph 3.5 of the Procurement Guidelines. 29. Directorate General of Supplies & Disposals [DGS&D] rate contracts could also be adopted as acceptable Shopping procedure. s. 30. Procurement of Non Consultant Services: Technical services provided by firms for satellite images, aerial photography, mapping and other similar operations, as well as publications and communications services will be procured as non-consultant services. The Bank's Sample Bid Document will be used for all ICB, and National model Document acceptable to and as agreed with the Bank for all NCB. For procurement of small value non- consulting services, shopping procedures acceptable to and agreed with the Bank will be followed. 31. Selection of Consultants: Contracts for employment of firms will include services for different types of studies such as environmental impact, promotion and communication campaign of the project, project monitoring and evaluation, and financial audits. Selection methods for consultants would include: QCBS, QBS, FBS, LCS, QCS, and SSS. Contracts for employment of individuals will include hiring of the PIA/PMU/Project Staff, technical and administrative staff, and technical services provided by individuals for specialized expertise [environment, etc]. Selection procedures of individuals for these services will be in accordance with Section V of the Consultant's Guidelines. 32. Procurement for Emergency Expenditures under CER Components of the Project - Notwithstanding any provision to the contrary in this section of the document, emergency expenditures required for each of the CER Components in the Project shall be procured in accordance with the procurement methods and procedures set forth in the CER Operations Manual applicable to such CER Component. B. Project Organization in Relation to Procurement Implementation 33. The project is implemented in the State of Tamil Nadu and Union Territory of Puducherry. It is a follow up of the Emergency Tsunami Reconstruction Project (ETRP). The implementation arrangements under CDRRP continue to be more or less the same as in the ETRP. 34. For Tamil Nadu, the Project Management Unit (PMU) of the Government of Tamil Nadu (GoTN), created under the Revenue Administration, Disaster Management and Mitigation Department, continues to be the nodal PMU for the Project that has overall fiduciary oversight for the CDRRP and will oversee the on-going balance works of the ETRP, including monitoring of the procurement plan. It has a Procurement Consultant for the CDRRP, who is also continuing from the ETRP. 51 35. There are six implementing agencies in Tamil Nadu under the proposed CDRRP. These are the PMU, RD & PR Department, Department of Fisheries, Public Works Department, Environment & Forest Department and Tamil Nadu Generation and Distribution Corporation. 36. Civil works will be implemented by the respective implementing agencies as the District Levels, however monitored by the PMU. 37. RD & PR Department with District Project Implementation Units (DPIUs) in all the districts shall carry out procurement for implementing the Housing and Evacuations Routes component under the project, and the CBDRM subcomponent for selection of district level NGOs to support implementation of the subcomponent. 38. Other implementing agencies also have dedicated PIUs, and field staff for implementing the Project at the District Level. 39. In Puducherry, Project Implementation Agency (PIA), implemented works on behalf of all other departments in the ETRP and will remain the nodal agency responsible for implementation, monitoring and communications of the CDRRP, and also the procurement plan. It is staffed with an experienced Executive Engineer/Consultant, who is continuing from the ETRP. 40. It is proposed to implement works related to the Public Works Department by the respective agency and other works including cyclone resilient electrical network by the PIA. The financial management and payment will continue to be made by the PIA which will continue to be the nodal agency for the CDRRP. However, the procurement documents formulated by PWD will be scrutinized by the Procurement Specialist of the PIA. PIA will remain the nodal agency, responsible for implementation, monitoring and communications of the project. 41. All implementing agencies in Tamil Nadu and Puducherry that were part of the ETRP are well conversant with the implementation requirement of the Bank projects. C. Assessment of the agency's capacity to implement procurement 42. From December 17-21, 2012, the Bank carried out an assessment of the procurement capacity of various implementing agencies for the proposed Project. The Bank assessed the resources and internal procedures, as well as its understanding and familiarity with the Bank's guidelines, procedures and documents. D. Procurement Risk Assessment 43. Table below lists major procurement related risks and the mitigation plan. The risk ratings have been decided based on both the probability of occurrence of various events [including fraud and corruption risks related to procurement] as well as their likely impact. Based on the risk factors and mitigation measures, the overall residual procurement risk rating for the project is determined as Substantial. The residual rating on procurement will however be reviewed and updated periodically by the Bank. 52 Table 8: Procurement Risk and Mitigation Plan Risk Factor Initial Risk Mitigation Measure Residual Risk Record keeping and High * The PMU, the PIA and the lAs will maintain all Substantial documentation procurement records duly catalogued and indexed in a manner and form which facilitates complete and timely information availability for audits and day to day use Fiduciary Risk Substantial * Well experienced procurement staff/consultants shall Moderate relating to main be positioned in each implementing agency to principles of the comply with and implement procurement as per Bank agreed procedures and process Procurement * Procurement/technical staff in each implementing Guidelines agency will undergo training program conducted by PMU/PIA/Bank/Consultants Increase procurement capacity and awareness at District Level by organizing cross learning event of the implementing agencies of good practices and lessons learned from ETRP 0 Regular monitoring by PMU and PIA Inefficiencies and High - Use of experienced procurement staff in the Substantial delays in implementing agencies procurement 0 Regular monitoring through procurement plan and process quarterly updates and reports (by PMU/PIA and by the Bank) * Use of e-procurement system for NCB/shopping Proposed revision of delegation of power to avoid delays in finalizing contracts Insufficient High m Publishing the GPN close to project launch in the Substantial competition in regional and national newspapers, and on the project procurement website in addition to UNDB/dgMarket 0 Development of project website for PMU and PIA * Publishing all SPNs in the project website in addition to a national newspaper * Publishing procurement plan and specifications of equipment in the project website Contract High - Prior and post review arrangements will be put in Substantial Management place in accordance with approved procurement plan, with enhanced monitoring arrangements by the PMU and PIA, through the enhancement of a Procurement MIS Establish system to monitor and expedite contract modifications or change orders * Disclosure of all contract awards on the PMU and PIA websites in accordance with the TN Transparency Act Probability of staff Substantial Transfer of Procurement staff after they have Modera handling undergone training is a possibility. PMU, PIA a 53 Risk Factor Initial Risk Mitigation Measure Residual Risk procurements being lAs will endeavor that the trained procurement staff transferred will normally not be transferred during the project's life Fraud and High * Measures to improve competition such as broad Substantial corruption risks technical specifications, realistic post qualification [including collusion criteria, appropriate contract packaging and outside 0 Disclosure of contract opportunities, contract award interference] in decisions, internal/external procurement and contracting process financial audits * Robust complaint handling linked with MIS Weak complaint High * A complaint handling mechanism to be provided on Moderate redressal the project website with service standards mechanism * A half yearly report of all complaints received and action taken will be submitted to the PMU/PIA Project Director for review [also submitted to the Bank]. This will also be published in the project website. Overall Risk High Substantial E. Methods of Procurement 44. The Table given below gives highlight of the various procurement methods to be used for this project. These along with agreed thresholds would be reproduced in the procurement plan. The thresholds indicated in the following table is for the initial 18 months period and is based on the procurement performance of the project, these thresholds would be modified as and when required. Table 9: Procurement Methods Category Method of Procurement Threshold (US$ Equivalent) Goods and Non- ICB > 1, 000, 000 consultant LIB wherever agreed by Bank services NCB Up to 1, 000, 000 [with NCB conditions] Shopping Up to 50,000 DC Asper para 3.7 of Guidelines Force Account Asper para 3.9 of Guidelines Framework Agreements Asper para 3.6 of Guidelines Procurement from UNAgencies As per para 3.10 of Guidelines Performance Based Procurement As per para 3.16 of Guidelines Works ICB >40,000,000 NCB Up to 40,000,000 [with NCB conditions] Shopping Up to 50,000 DC As per para 3.7 of Guidelines Force Account Asper para 3.9 of Guidelines Consultants' CQS/LCS Up to 300,000 Services SSS As perpara 3.9-3.11 of Guidelines 54 Category Method of Procurement Threshold (US$ Equivalent) Selection ofNGOs As perpara 3.16 of Guidelines Individuals As per Section V of Guidelines Selection of Particular Types of Consultants Asperpara 3.15-3.21 of Guidelines QCBS/QBS/FBS for all other cases (i) International shortlist >800,000 (ii) Shortlist may comprise national consultants only Up to 800,000 F. Review by the Bank 45. The Bank will prior review following contracts: > Works: All contracts more than US$10.0 million equivalent; > Goods: All contracts more than US$1.0 million equivalent; > Non Consultancy Services :All contracts more than US$1.0 million equivalent; > Consultancy Services :> US$500,000 equivalent for firms; and > Consultancy Services :> US$200,000 equivalent for individuals 46. First NCB contract for Goods, Works, Non Consultancy Services, and first Consultancy Services contract for firms following competitive selection, issued by each implementing agency, will be subject to prior review irrespective of value or method of procurement/selection. In addition, the justifications for all contracts to be issued on LIB, single-source or direct contracting basis will be subject to prior review. In the case of the selection of individuals, the qualifications, experience, terms of reference and terms of employment shall be subject to prior review. These thresholds are for the initial 18 months period and are based on the past procurement performance of the project, which will be modified. The prior review thresholds will also be indicated in the procurement plan. The procurement plan will be subsequently updated annually (or earlier/later, if required) and will reflect the change in prior review thresholds, if any. The Bank will carry out an annual ex post procurement review of the procurement falling below the prior review threshold mentioned above. 47. Short lists of consultants for services estimated to cost less than $800,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines. G. Frequency of Procurement Supervision: 48. The Bank will normally carry out the implementation support mission on a semi-annual basis. The frequency of the mission may be increased or decreased based on the procurement performance of the Project. H. Post Review by the Bank: 49. All contracts not covered under prior review will be subject to post review during supervision missions, and/or review by consultants to be appointed by the Bank. The normal Bank requirement of procurement post review of 15 percent of the contracts for a project with a 55 risk rating of 'substantial risk' will be followed, except for the activities undertaken using community contracting and force account methods. I. Use of Government Institutions and Enterprises: 50. Government owned enterprises or institutions in India may be hired for its unique and exceptional nature if their participation is considered critical to project implementation. In such cases the conditions given in clauses 1.13 of Consultant Guidelines shall be satisfied and each case will be subject to prior review by the Bank. J. E-procurement: 51. Currently, many undertakings of the Government of Tamil Nadu are following e- Procurement procedures. As of now PMU and PIA are not following e-Procurement. E- procurement shall be adopted as and when project builds the capacity to do so up to NCB threshold provided the system proposed to be used is assessed and found acceptable by the Bank. K. Complaint Handling Mechanism (CHM) 52. In order to deal with the complaints received from contractor/suppliers effectively, an effective complaint handling mechanism will be developed at all the levels. On receipt of complaints, immediate action will be initiated to redress grievances. All complaints will be dealt with at levels higher than that of the level at which the procurement process was undertaken. If the complaint is received prior to award of the contract, the complaint shall be taken into account while considering the award of the contract. If, after the contract has been awarded and, a protest or complaint is received from bidders, it will be examined and if necessary, the contract award will be reconsidered. 53. Details of the complaint and action taken by the Project to satisfactorily resolve the complaint will be published on the Project website. L. Disclosure 54. The following documents shall be disclosed on the PMU & PIA websites: (i) procurement plan and updates, (ii) invitation for bids for goods and works for all NCB contracts,(iii) request for expression of interest for selection/hiring of consulting services, (iv) contract awards of goods, works and consultant services, (v) list of contracts/purchase orders placed following shopping procedures on quarterly basis, (vi) short list of consultants, (vii) action taken report on the complaints received on a quarterly basis. M. Project MIS 55. Systematic monitoring and public disclosure of procurement performance and outcomes is important. This will include the development and implementation of a procurement module as an integral part of the broader MIS system, which is currently under redesign. This will enable the systematic collection and analysis of data related to procurement performance and outcomes 56 under the overall program, which will be consolidated and publically reported by the PMU/PIA on a regular basis. MIS system is to be made operational in Tamil Nadu by December 2013 and in Puducherry by March 2014, and the first procurement performance report will be published within three months thereafter. N. Project Implementation Readiness Table 10: Project Implementation Status SI. No. Activity Status 1 Procurement decision making structure defined Yes 2 Procurement Plan for the first 18 months has been prepared Yes 3 For works/goods, bids for the first phase should be issued More than 40% of planned works are ongoing 4 Request for Proposal (RFP) for major/critical consultancies TPQA, and Internal Audit issued consultants already in place 5 Key project staff (project director, procurement, FM, In position safeguard) 6 The project directors of the PMU & PIA have participated in Yes the negotiations 7 Tenure of key staff should be, to the extent possible, for three Project Directors in both years or more Tamil Nadu and Puducherry have been appointed and are in place. 56. Expenses amounting to US$79 million will qualify to be financed with retroactive financing. While standard procedures under the Bank projects allows retroactive financing of only up to 20% of the total financing cost and only one year prior to approval, for this project the Bank team has obtained agreement from Bank management that modifies these requirements and allows for the entire eligible expenditures from January 01, 2012 onward to be financed as retroactive expenditure (about 35% of the total financing). 0. Monitoring & Evaluation 57. Project monitoring will occur as a periodic function, and will include process reviews, accounting audits, social audits, reporting of outputs, and maintenance of progressive records. Broad thematic areas that will be supervised and monitored include the following: i) Social and Environmental Monitoring; ii) Regular Quality Supervision & Independent Quality Monitoring; iii) Periodic Physical and Financial Progress Monitoring; and iv) Benefit monitoring and evaluation. 58. Social and Environmental Monitoring: This will comprise the following sets of activities: i) monitoring compliance with environmental regulations, social safeguards and Environment and Social Assessment provisions of respective subprojects and ESMF; ii) continuous Social Impact Monitoring at the Community Levels; iii) monitoring the performance of NGOS; and iv) overall monitoring and oversight of social issues at the state/project level. 57 59. Regular Quality Supervision and Third Party Quality Audit: Regular quality supervision will be carried out by the respective Implementing Agencies. Third party quality monitoring will be instituted by the PMU in Tamil Nadu and PIA in Puducherry. In Puducherry this role will be merged with the Project Management Consultants, while a separate Third Party Quality Audit Consultant (TPQA) will be appointed in Tamil Nadu. Detailed quality management guidelines would be evolved by PMU and PIA and adopted by all the lAs and other stake-holders. 60. Periodic Physical and Financial Progress Monitoring: Physical progress monitoring will be carried out by the implementing agencies on a monthly basis and reported to PMU/PIA which will in turn share the reports on a quarterly basis with the concerned line agencies and the World Bank. lAs will be the nodal agencies for reporting to PMU/PIA. Financial progress will be reported by the lAs through the quarterly IUFRs. The PMU/PIA will create a detailed MIS for management of the information database which will be an online tool for gathering updates by the lAs. A portion of this database will also be uploaded on the project websites as part of regular information sharing with the public. 61. Benefit Monitoring and Evaluation: A three-stage Benefit Monitoring and Evaluation (BME) study would be carried out by the PMU/PIA. The study will be outsourced and will have three clear-cut stages. Stage I will setup the baseline data, Stage II will conduct midterm evaluations and Stage III will be the end of the project evaluation. The study will incorporate both qualitative and quantitative analysis and will also be used as a tool for mid- course corrections if necessary. P. Environment and Social (including safeguards) 62. The vulnerability reduction (component 1) and sustainable fisheries (component 2) components of the project involve construction activities along the coastal areas of Tamil Nadu and Puducherry, and will be the critical components with regards to the Environment Safeguards. While some sub-projects of the project that were part of the recently closed 'Emergency Tsunami Reconstruction Project (ETRP)' are being retroactively financed under this project, sub-projects such as laying of underground electricity lines, strengthening / reconstruction of bridges, etc. are newly included. 63. In case of retroactively financed sub-projects, necessary Environmental and Social Assessments (ESA), complying with the requirements of the 'Environmental and Social Management Framework (ESMF) of ETRP were carried out by the respective implementing agencies. These sub-projects have also obtained all the applicable Forest, Coastal Regulatory Zone (CRZ) and other local clearances for the project. The Environmental Management Plans have also been suitably incorporated in the respective bid documents and are being implemented accordingly. However, the safeguard management plans need to be prepared for the new components in CDRRP. 64. In view of the above, the key focus areas of environmental management for the proposed project would be to ensure (i) satisfactory implementation of Environmental Management Plans (EMP), compliance to the conditions stipulated under various clearances/consents and Bank Safeguard Policies, for the sub-projects proposed for retroactive financing (ii) prepare necessary 58 safeguard management plans for the newly proposed sub-projects such as laying underground electricity lines, sustainable fisheries, housing and (iii) ensure adequate supervision and monitoring arrangements at the Project Management Unit in Tamil Nadu (PMU) and Project Implementing Agency in Puducherry (PIA). 65. Environmental and Social Management Framework: Considering dispersed nature of the sub-projects and multiple implementing agencies, an 'Environmental and Social Management Framework (ESMF)' has been developed for the project. The ESMF essentially builds upon the ESMF implemented in the ETRP and, incorporates the safeguard requirements for the new components and completion of pending safeguard due diligence (such as disclosure of ESA locally and at Bank InfoShop) for the retroactively financed sub-projects. The revision also incorporates the learning from the earlier ESMF and also the findings of the 'Quick Review of Safeguard Issues' carried out for the sub-projects proposed to be financed retroactively by the project. 66. The key safeguard activities envisaged in the revised ESMF are summarized in the following table. Table 11: Key Safeguard Recommendations of the Revised ESMF Component / Sub-Project EA / EMP Status Agreed Actions in DRRP A. Tamil Nadu 1. Component 1.3: Replacement New Component CRZ / regulatory clearances will overhead electrical cables by be obtained, ESA and EMPs will underground cables be prepared addressing all safeguard issues 2. Component 2.1: Fisheries ESA and EMPs for all six CRZ clearances and ESA and Infrastructure fishery infrastructure projects EMP for the new infrastructure 2.1.1 Ongoing works prepared and regulatory projects will be prepared in (a) Landing centers at Nagore clearances obtained during CDRRP and Port Nova (b) Modernization ETRP. EMPs are integrated in of fishing harbors at the bid documents Nagapattinam and Pazhyar(c)Barmouth opening in River Vellar and Uppanar 2.1.2 New works (a) Reconstruction and modernization of fishing harbor in Mallipattinam (b) permanent stability of coastal inlet at Punnakayal Village. 3. Component 2.2: FIMSUL-1 t New component of CDRRP Good Environmental Activities Management Practices for fishery and infrastructure activities will rojbe integrated 4. Component 2.2.5: Wireless New component of CDRRP CRZ clearances and EMP will be communication facilities to fisher implemented (as applicable) for men all activities 59 Component / Sub-Project EA / EMP Status Agreed Actions in DRRP 5.Component 3: Capacity New Component of CDRRP ICZMP recommendations will be Building in Disaster Risk appropriately integrated in the management CBDRM and in SDMA strengthening activities 6. Component 3.4: Integrated EA/ EMP carried out as part of Environmental and Social Coastal Zone Management Plan the overall ICZMP preparation safeguard issues as highlighted in the ICZMP will be considered by the GoTN and mitigated appropriately during the ICZM implementation. B. Puducherry 1. Component 1.1.1: Construction CRZ clearances obtained, EMP implementation will be of Multi-hazard resilient EMPs for ETRP supported sub- closely monitored by PIU Permanent Houses projects prepared and specialists integrated in bid documents 2. Component 1.1.2: Provision of New component of CDRRP CRZ, revenue, planning In-situ resilient housing of 1000 approvals will be obtained and multi-hazard resilient permanent EMP will be integrated in the houses in vulnerable coastal areas bid documents 3. Component 1.2: Restoration of New Component of CDRRP CRZ, Archaeology and Planning Heritage Buildings and Old approvals will be obtained and Bridges EMPs and Cultural Properties Management Plans will be prepared as per Bank Safeguard Policies 4. Component 1.3: Replacement New Component of CDRRP CRZ clearances, ESA and EMPs overhead electrical cables by will be prepared addressing all underground cables safeguard issues 5. Component 2.1: Fisheries ESA and EMPs for all fishery EMP implementation will be Infrastructure infrastructure projects prepared closely monitored by PIU (a) Work shelters in Puducherry and regulatory clearances specialists and Karaikal (b) Modernization of obtained. EMPs are integrated fishing harbor at Puducherry (c) in the bid documents Construction of New Fish markets at Puducherry and Karaikal (d) Upgradataion of fish markets in Puducherry 6.Component 3 : Capacity New Component of CDRRP Generic environment building in Disaster Risk management measures will be Management and Response implemented. Capacity - Fire Service Infrastructure 67. Safeguard Policies Triggered: The project triggers the following safeguard policies: i) Environmental Assessment (OP/BP 4.01); ii) Physical Cultural Resources (OP/BP 4.11; (iii) Involuntary Resettlement (OP/BP 4.12). The project has been assessed to be 'Category B', based on the in-situ and moderate nature of the construction activities. 60 Safeguard Policies Triggered by the Project Yes No Environmental Assessment (OP/BP 4.01) [X] [] Natural Habitats (OP/BP 4.04) [] [X] Pest Management (OP 4.09) [ ] [X] Physical Cultural Resources (OP/BP 4.11) [X] I ] Involuntary Resettlement (OP/BP 4.12) [X] I ] Indigenous Peoples (OP/BP 4.10) [] [X] Forests (OP/BP 4.36) [ ] [X] Safety of Dams (OP/BP 4.37) [] [X] Projects in Disputed Areas (OP/BP 7.60) 1] [X] Projects on International Waterways (OP/BP 7.50) [ ] [X] 68. Stakeholder Consultations were carried out during the preparation on March 14, 2013 at Nagapattinam, on March 15, 2013 at Cuddalore and on March 16, 2013 at Puducherry for various sub-projects of the project area to: (a) obtain a better understanding of the potential impacts; (b) appreciate the perspectives/concerns of the stakeholders; and (c) secure their active involvement during finalization of EMPs. Consultations were designed in a way that: (i) affected people were included in the decision making process; (ii) links between communities and their natural, physical and cultural resources base adjacent to project locations were safeguarded; (iii) public awareness and information sharing on project alternatives, benefits and entitlements were promoted; and (iv) views on designs and solutions from the communities were solicited. Further additional consultations were carried out during the preparation of individual sub-projects, during the 'Quick Review of Safeguard Issues' and the revision of the ESMF for CDRRP. Inputs from the communities have been appropriately integrated in the ESMF. More details of these consultations have been provided in section 4 of the ESMF prepared separately for Pondicherry and Tamil Nadu. 69. ESMF / EMP Implementation: The EMPs will be appropriately integrated and cross- referenced in the contract documents of the project. The institutional mechanism for effective implementation of safeguard issues / ESMF is assigned to the Environmental and Social specialists at the PMU in Tamil Nadu and PIA in Puducherry. At the sub-project level environmental engineers will be designated by all the project implementing agencies and contractors, to ensure satisfactory implementation of safeguard measures. The third party quality control audit consultants will also monitor the implementation of environmental and social management plans. In addition, quarterly third party environmental and social monitoring of safeguards implementation will also be carried out by the independent agencies. The findings of these monitoring reports will form the basis for assessing the safeguard compliance status of the project. 70. Disclosure: In country, disclosure of Environmental and Social Safeguard documents was done on April 01, 2013. These documents were also disclosed on April 01, 2013 in the World Bank's InfoShop. 61 Annex 4: Operational Risk Assessment Framework (ORAF) 1. Project Stakeholder Risks Rating Moderate Description : Risk Management: * Risks arising out of events like cyclones, storm surges, * The state government, the local governments, and citizens living in coastal tsunami flooding etc. is very high on the east coast of India. areas of Tamil Nadu and Puducherry have supported efforts related to risk 0 Inparicuar TmilNad an Pudchery ore he run ofmitigation especially given the impacts of the 2004 tsunami and repeated cyclones * In particular Tamil Nadu and Puducherry bore the brunt of i h ra the 2004 tsunami and have experienced severe cyclones regularly. ** All the stake-holders have a strong interest and intention in reducing the * Prjectstaeholersinclde:natural disaster risks in coastal areas. To achieve this goal, the project emphasizes * Fishers the need for synergies among the state level sectors and the local stakeholders such * Communities living in the coastal zone up to 1000m as commumties, NGOs etc. to maximize the impact of investments from HTL and in its vicinity * The state of Tamil Nadu has a very strong relationship with the Bank. Both * Local officials Tamil Nadu and Puducheny have shown great commitment by continuing the * Local NGOs works from ETRP and maintaining the implementation setup. * Technical, social and financial/economic impacts have been evaluated and communities and there are no appreciable negative impacts identified. Environment and Social Framework will be disseminated and stakeholder workshops will be conducted. In addition the project will also have a communication strategy to continuously and productively engage the stake holders. Resp: Client Stage: Negotiations Due Date : Status: Ongoing Ongoing 2. Implementing Agency Risks (including fiduciary risks) 2.1 Capacity Risk Rating: Moderate Description : Risk Management: * Stretched capacity of implementing entities due to additional * The proposed project focuses on institutional strengthening of capacity and project related works and large geographic area. Fiduciary systems for delivery at the state and local levels. Emphasis will be on capacity risks: Financial management and procurement risks are as augmentation, including project management for Bank operations. Under the follows: Procurement capacity of the implementing agencies project, the following will be financed: training of staff in planning and program are (i) Fairly adequate experience in Bank-financed projects management & monitoring, and community outreach, refine the project MIS in should curtail delays in the preparation of required Tamil Nadu to include new activities and implementing agencies, while in documentation; (ii) possibility of delays/inaccuracy in Puducherry a new MIS will be established. De rparaion an sbmisinsokprioicfinncaleeprtsan intreratle aonato islmenti ng o; eiicsntmii de of audit * The preparation and management of the project would be assisted through ineri nal mgentrol and proctively________ umeisks_ ar support provided by the_project implementation unit. Additional_staff specifically 62 reports are expected on time; (iv) compliance with Bank to boost institutional capacity for disaster risk assessment and management will be procurement guidelines due to previous experience should be recruited and trained. relatively good. project has well experienced implementing agencies. Under the ETRP, the Governments of Tamil Nadu & the Government of Puducherry constituted a PMU and a PIA respectively to coordinate project implementation and this arrangement will continue. The PMU and PIA have a relatively well developed technical, procurement and financial management capacity to prepare and implement the project, including sufficient number of staff, and has demonstrated implementation capacity. * Key assessments have been carried out (procurement and FM). Adequate financial management arrangements has been put in place including updating the existing FM manual, recruitment of project FM staff and upgrading of accounting systems. Additional staff of one Social Specialist in TN and one Environment cum Social Specialist in Puducherry will be deployed. * The MIS will be made operational through the project which will enable systematic monitoring and public disclosure of procurement performance and outcomes of PMU and PIA on a regular basis. Resp: PMU and PIA Stage: Due Date: Status: Not yet Negotiations by Dec 2013 Due in TN and March 2014 in Py 2.2 Governance Risk Rating: Moderate Description : Risk Management: * While both the Government of Tamil Nadu and the * The process of decision-making would be assisted through continuous Government of Puducherry have fairly well established discussions and engagements with PMU and PIA on activities and overall program. governance structures, there could still be challenges due to erae burucrtpres, therecouldestlye dh ges m g t* In addition, the state level steering committee, chaired by respective Chief and oversights. Secretaries will be formed to oversee the project, higher level decision making, coordination among various departments and provide policy guidance. * An MIS system will assist procurement and financial monitoring and facilitate grievance redress mechanism at the PMU and PIA Resp: PMU and PIA Stage: Due Date: Status: Not yet Negotiations ongoing Due 63 3. Project Risks 3.1 Design Rating: Moderate Description : Risk Management: * The project is multi-sectoral and complex by nature. It * Project design with components defined by implementing departments has involves a wide variety of key line departments in Tamil Nadu - been clearly clarified roles and responsibilities intended to reduce complexity. Revenue Administration, Disaster Management, Mitigation Appropriate implementation arrangements to minimize duplication have been Department, RD & PR Department, the Public Works documented in the Operation Manual. Department, Fisheries Department, Electronic Corporation of Tamil Nadu, Environment & Forest Department. While in * Both GoTN and GoPy have the experience on implementing multi-sectoral Puducherry -Electricity, Public Works Department, Fire Service, projects through the former ETRP through well-established PMU/PJA. Fisheries and Housing and allied departments are represented in * Community involvement is ensured from the planning to actual the PIA. These Departments generally do not have experience of implementation of the project and in the management and maintenance of working together under one implementing agency and it is a emergency infrastructures. In addition extensive information, education and continuous challenge which may potentially create confusion and communication (IEC) activities along with a grievance redressal system are integral slow project implementation. components to enhance community participation in the project. * Insufficient/inadequate involvement of communities can lead * The concerned Governments have shown initiative and institutional will in to neglected public constructed/ created infrastructure and a stage implementation of the community based management components. Already local may come when it may not be in operable state when needed. NGOs who are engaged in the project will continue to be involved in the CBDRM. Relative inexperience in this aspect may be an issue in terms of Small pilots will first be taken up in order to minimize complexity and maximize decision-making and implementation effectiveness. learning for scaling up. * Disclosure of project activities to local communities/ stakeholders in local languages at prominent locations at the local (Panchayat) level as well as disclosure of the beneficiary selection and verification list in public spaces plus websites will ensure transparency. Resp: client Stage: Due Date: Status: Not yet Negotiations ongoing Due 3.2 Social & Environmental Rating: Moderate Description : Risk Management: * The project would likely trigger the following safeguards: i) * ESMF used for the ETRP has been updated to manage potential environmental Environmental Assessment OP/BP 4.01; ii) Physical Cultural concerns. Resources OP/BP 4.11; and iii) Involuntary Resettlement OP/BP 4.12. No other safeguard policies are expected to be * The Environmental and Social Assessment has been designed in a user-friendly triggered by the project. manner, providing clarity on key issues. * Safeguard risks: Environment management and safeguards * Social and environmental monitoring will be undertaken periodically which will comprise the following - i) monitoring compliance with environmental 64 related risks are as follows: (i) lack of co-ordination between regulations, social safeguards and environment and social assessment provision, the key implementing agencies may lead to a delay in the and ii) continuous social impact monitoring at the community levels and oversight preparation of required documentation; (ii) insufficient at the state/project level. attention/delays in effective Environmental and Social Assessment implementation; and (iii) potential non- re PMU/PIApad Sta: Due Daeotts compliance with Bank environment safeguard concerned line departments Negotiations ongoing ongoing policies/guidelines due to lack of capacity. * While all the ongoing works ready that are ready with designs have already followed due processes and obtained statutory clearances, regular monitoring and reporting of compliance by line departments remains a challenge. 3.3 Program & Donor Rating: Low Description : Risk Management: * While the engagement and commitment of donors as well as * There is extensive donor engagement in Tamil Nadu and Puducherry. The NGOs and CBOs is not considered a risk, there may be ongoing and proposed donor projects are well-aligned in terms of project objectives overlaps in program implementation. and overall goals. During preparation and implementation, the project will continue to ensure synergies with ongoing projects, activities and programs run by NGOs and CBOs. The team will contribute to information sharing and collaboration through the established mechanism for donor coordination. Resp: partners Stage: Due Date : Status: ongoing Negotiations ongoing 3.4 Delivery Monitoring & Sustainability Rating: Substantial Description : Risk Management: * The respective governments have given high importance to the * Adequate staff being recruited; Training would be provided as part of project and partnership with the Bank in disaster management preparation and as an integral component of the project during implementation showing strong commitment and sense of ownership that to ensure effective delivery of programs. enhances sustainability of the project * A critical element of improved service delivery is by strengthening M&E * Implementation capacities in the two project states are fairly which would be supported under the project through several initiatives:(i) up- adequate and have been built in the ETRP. There is however now gradation of the integrated MIS system developed in Tamil Nadu; (ii) focus on activities that have intense community interface such as establishment of MIS in Puducherry initiated; (ii) third-party monitoring CBDRM and maintenance and management of emergency (surveys & validation of MIS data); (iii) assessment of project innovations; (iv) 65 shelters etc. which could be challenging as these are new participatory social audits; and (v) regular project reviews. initiatives. * In addition replicable models from other states involved in similar activities will be adopted in the project design. Project staff will need adequate training and capacity building in the CBDRM and community based management/outreach aspects. * The project intends to strengthen the SDMA as a capable institution that would enable a sustained investment in risk mitigation and its mainstreaming into development. Assessment will be carried out towards staffing, equipment and institutional capacity building for operationalization of this nodal agency. Resp: PMU, PIA and line Stage: Negotiation Due Date: Status: Not yet departments ongoing Due Overall Risk Rating in Implementation Comments Moderate There is strong ownership and commitment in both states for the project reflected by the fact that the works continued even after closure of the earlier ETRP. Implementation structure and capacities of the earlier project have been continued and upgraded. 66 Annex 5: Implementation Support Plan INDIA: Coastal Disaster Risk Reduction Project, Tamil Nadu & Puducherry 1. The Implementation Support Plan (ISP) for CDRRP has been developed based on the specific nature of the project activities, lessons learned from past operations in Tamil Nadu & Puducherry through the ETRP, the Tamil Nadu Poverty Alleviation Project, and FMIS operations, and the project's risk profile in accordance with the Operational Risk Assessment Framework (ORAF). The plan will be regularly reviewed and revised as required. 2. The ISP includes frequent review of implementation performance and progress, especially given the wide geographical spread and multiple departments involved in Tamil Nadu and capacity in Puducherry. The Bank team will monitor progress on several fronts including: (i) key performance indicators as defined in the Results Framework; (ii) State, district, and block level project implementation plans; (iii) independent verification of project activities; (iv) proper fiduciary management of all activities carried out by the PMU, PIA, local PIUs and other implementing agencies; (v) reconciliation of payments with contracts; (vi) supervision of large numbers of District-level procurement activities, especially in relation to Component 1: Vulnerability Reduction - Construction of multi hazard resilient permanent houses and other infrastructure and Component 2 -Sustainable Fisheries: Works pertaining to the Fisheries sector and (vii) monitoring of key legal covenants. 3. Information from various sources will be used to assess and monitor the progress of the project throughout its implementation. In addition to the data generated through the project's MIS and M&E systems, the Bank will also review the findings and results of third party assessments and environmental and social audits which will be undertaken during the course of project implementation. 4. In addition to formal semi-annual implementation support missions and field visits to Chennai, Puducherry and the project components along the coast in all project districts of the state and UT, annual workshops with PMU, PIA and the Implementing Agencies will be held to review progress against the implementation plan and take corrective actions as necessary. The semi-annual Implementation Status Reports will be produced to provide management with progress updates, tracking risk development and efficacy of mitigation measures. In addition, as required frequent 'Thematic' missions will be made to provide targeted support to address emerging issues. 5. The Bank's procurement, financial management, and environmental and social safeguards specialists will also provide timely and effective support to the GoTN and GoPy. In addition to carrying out an annual ex-post review of procurement that falls below the prior review thresholds, the procurement specialist will lead thematic and focused missions depending on the procurement needs and as agreed to by the GoTN and GoPy. The financial management specialist will review all financial management reports and audits and take necessary follow-up actions as per the Bank procedures. These team members will also help identify capacity building needs to strengthen procurement and financial management capacity. Semiannual inputs from the environmental and social specialists will be required throughout the project, and formal 67 supervision missions and field visits will ensure that the ESMF is implemented in accordance with the Bank safeguard policies. 6. The following Implementation Support Plan reflects the preliminary estimates of the skill requirements, timing, and resource requirements over the life of the project. Keeping in mind the need to maintain flexibility over project activities from year to year, the ISP will be reviewed annually to ensure that it continues to meet the implementation support needs of the project. Table 12: Implementati n Support Plan Time Focus Primary Skills Number of Resourc Partner Role Comments Year Needed Trips e Estimate (US$) 1 * Project * Team lead * June 2013 * 45,000 * Staff up * Project will launch * FM, * Dec 2013 * 45,000 PMU/ PIA likely become * FM systems Procurement * June 2014 * 45,000 * Contract effective in functioning * Safeguards PFMC June 2013 effectively Specialist consultants * Task team to * Procurement * Disaster * MOU support practices Management signed with smooth start- following Specialist partner up following Bank norms * Communicatio organizatio effectiveness * ESMF is in n Specialist ns place * Fisheries Specialist 2 * Monitor * Team lead * Dec 2014 * 45,000 * Scale up of * Support PIU implementat * FM, * June 2015 * 45,000 pilot at local level ion of Procurement activities as necessary project * Safeguards * Prepare * Ensure activities Specialist comprehen safeguards * Support * Disaster sive project arrangements launch of Management progress are built into CBDRM Specialist report in implementati and * Communicatio advance of on plans FIMSUL-II n Specialist each * Mid-Term activities * Fisheries mission Review * FM, Specialist Procurement * NGO/CSO , Safeguards 3 * Monitor * Team lead * Dec 2015 * 45,000 * Prepare Support to implementat * FM, * June 2016 * 45,000 comprehen monitor ion of Procurement sive project progress of project * Safeguards progress activities, activities Specialist report in provide * Mid-Term * Disaster advance of technical Review Management each oversight, * FM, Specialist mission ideas for Procurement * Communicatio * Mid-term improvement, 68 Time Focus Primary Skills Number of Resourc Partner Role Comments Year Needed Trips e Estimate (US$) Safeguards n Specialist review etc. * Fisheries Specialist * NGO/CSO 4 * Project * Team lead * Dec 2016 * 45,000 * Prepare * Support to withdrawal * FM, * June 2017 * 45,000 comprehen monitor and closure Procurement sive project progress of * Scaling up * Safeguards progress activities, of successful Specialist report in provide models with * Disaster advance of technical GoTN and Management each oversight, GoPy Specialist mission ideas for * Communicatio improvement, n Specialist etc. * Fisheries Specialist * NGO/CSO 6 * Project * Team lead * Dec 2017 * 45,000 * Prepare * ICR Mission withdrawal * FM, * March * 45,000 comprehen and closure Procurement 2018 sive project * Scaling up * Safeguards progress of successful Specialist report in models with * Disaster advance of GoTN and Management each GoPy Specialist mission * Communicatio n Specialist * Fisheries Specialist S*NGO/CSO 69 Annex 6: Governance Accountability and Action Plan INDIA: Coastal Disaster Risk Reduction Project, Tamil Nadu & Puducherry 1. The project has identified two main risks in the area of governance, accountability and institutional effectiveness and designed specific risk mitigation measures as part of the overall project implementation strategy: i. Experience in the sustained involvement of local communities in the running of various risk mitigation infrastructure is limited ii. The project is multi-sectoral and complex by nature and it is spread over a wide geography and has a large number of direct beneficiaries. Experience in the sustained involvement of local communities in the running of various risk mitigation infrastructure is limited 2. In India, incomplete decentralization and persisting uncertainties in the allocation of responsibility and resources between local administration and the state government make the implementation of centrally or state sponsored programs and policies particularly challenging. The concerned governments have demonstrated institutional will and a proactive and dynamic attitude towards CBDRM with a substantial project proposed on the same as part of the CDRRP. Therefore, with an already significant implementation capacity at both the mid and junior levels of government, institutional capacity built in ETRP will ensure successful project implementation. 3. Community involvement is ensured from the beginning and consultations will be carried from the preparation stage, especially in designing and locating the risk mitigation infrastructure. Further, the proposed FIMSUL II component will also build community participation in co- management. Extensive Information, Education, and Communication (IEC) activities during project implementation will be undertaken to enhance community participation by an agency/NGO for all the components. 4. The program implementation is vulnerable to fraud and corruption, not only in procurement but also in the financial transactions. This risk is mitigated thanks to a strengthened and effective grievance redress mechanism and through public information disclosure (based on the effective utilization of India's Right to Information Act of 2005). 5. The main grievance anticipated is the exclusion of beneficiaries from the housing reconstruction program and the non-representation on the CBDRM committees/ task forces. The lists of beneficiaries are being established after due process. Grievances will be initially addressed at the local government (Panchayat) level with an appellate mechanism: the District Magistrate's office, along with the Block Development Officer and Sub-divisional officer, will ensure grievance redress in the process of re-verification of the list of beneficiaries at the local 6 Cf the sixth report of the Second Administrative reforms commission of the Government of India on Local Governance, October 2007. 70 level. At the state level, the PMU will help individuals file grievances before the ombudsman (Lokayukta Tamil Nadu). 6. A separate module for tracking of grievance redress will be included as part of the MIS and an annual audit will be carried out to provide feedback to the PMU. 7. Public disclosure of documents, reports, procurement process and results and physical and financial progress will be carried out by integrating a public viewing portal on the MIS as well as on billboards in public places at the local (Panchayat) level. Disclosure of project activities to local communities/stakeholders including beneficiary lists will be made available in local languages at prominent locations at the respective project sites. As per the Right to Information Act of 2005, the PMU would disclose information proactively and on-demand in response to requests. Information disclosed will include procurement results, project preparation and implementation documents, financial audit reports, ESMF, PAD, technical reports, environmental and social assessments and action plans, physical and financial progress, etc. A designated office will be made responsible in each of these institutions. The project is multi-sectoral and complex by nature and it is spread over a wide geography and has a large number of direct beneficiaries. 8. It involves a wide variety of departments; The project success will depend, in part, on effective coordination between different line departments, the state and district administrations, involving all stakeholders and importantly on a sustained and dynamic involvement of the community along with building capacity of both state and non-state actors in risk reduction, management and mitigation. 9. To mitigate this risk, the Government of Tamil Nadu (GoTN) has constituted a Project Management Unit (PMU) which will be primarily responsible for the preparation and implementation of the project, as well as for coordination with the various project Implementing Agencies (lAs). The lAs include: PMU, RD & PR Department, Public Works Department, Fisheries Department, Environment and Forest Department, Tamil Nadu Generation and Distribution Corporation in Tamil Nadu, whereas Puducherry has only two implementing agencies. 10. While the PMU & PIA serve as the key nodal institutions, the IAs will act as PIUs. At the local level, the PMU & PIA will act through its District and Block offices. They will coordinate in each of the districts with the District Magistrate, the Block Development Officers, and the local governments (Panchayats). The roles and responsibilities of each involved institution will be laid out in the Operations Manual. 11. The project implementation will be strengthened through trainings and capacity building programs for the lAs. A project orientation workshop will be organized before the launch of the project. In order to augment the project implementation capacity of the lAs, the GoTN & GoPy will hire technical experts as necessary. Orientation training and refresher courses will be organized for the staff involved in implementation. The project will also conduct annual reviews and consequently adjust the capacity building programs as per the changing needs of the staff. 71 12. The involvement of multiple implementing agencies calls for consistency in implementation. The project will partner with local NGOs and resource persons where specialized skills are needed, for example, increasing awareness of risks among local communities. 13. The project will engage an agency/NGO to provide support on (i) community awareness training (ii) reviewing project transparency and disclosure; and (iii) supporting beneficiaries in accessing the grievance redress mechanisms. Weak Monitoring and Evaluation Systems * Monitoring and evaluation - An internet supported MIS will be installed based on formats for review and monitoring that have already been agreed upon and developed. PMU & PIA will hire an experienced agency for development and customization of this system. Responsibility for the management and periodic updates of the system will lie with the PMU in cooperation with the concerned lAs. The project will also set up a base line for monitoring and evaluation of results through a Benefit Monitoring and Evaluation (BME) Consultant who will be appointed by the PMU & PIA. * Third party quality audit - A third party quality audit firm will be hired based on a pre- agreed ToR that would monitor compliance to standards and specification as defined in the bidding documents. The audit party would also report on specific issues related to compliance on the ESMF and other social and environmental management actions. This would be done on a random and continual basis throughout the project. The audit system will also be linked to the payment mechanism to ensure effective resolution of issues prior to payments to contractors. * Financial and procurement audits - External procurement audits will be carried out for all the post review contracts. A statutory auditor will be appointed for the financial audit. Additionally, there will be concurrent internal audits to validate expenses incurred for sub-projects under each of the components, which will also include sample verification of assets. * Review of Institutional Systems and Processes - A review by the Bank team or Third Party would be undertaken regularly to assess the functioning of institutional systems and develop recommendations for improvement. Issues that would be evaluated, among others, include: mobilization and retention of capacities, delivery of respective roles, soundness of operations, value added, veracity of information generated in MIS, level and quality of public disclosures, functioning of grievance redress mechanisms, and quality and effectiveness of capacity building measures. * Procurement processes - PMU & PIA will provide procurement support to the lAs. Standard Bank controls will apply. 72 Table 13: Governance Accountability and Action Plan Risks and Concerns Risk Control and Mitigation Responsibility Target Weak Governance 1. Appointment of Project Director in PMU/PIA Completed Structures PMU and PIA 2. Establish nodal PIUs in PMU/PIA Completed implementing departments. 3. Update and install a fully functional PMU/PIA December MIS. 2013 in TN and March 2014 in Puducherry Weak Project Process Management 4. Preparation of Guidelines/manuals - PMU/PIA May 2013 capacity operational, procurement, financial management and reporting. Environmental and social management framework, M&E framework. Capacity building 5. Appointment of third party quality PMU December audit consultants and internal and 2013 external auditors. 6. Appointment of Project PIA December Management Consultants 2013 7. Orientation training and refreshers PMU/PIA Ongoing courses for staff involved in project implementation. Evaluation Every year 8. Annual review of implementation PMU/PIA end starting arrangements, identification of gaps from first and corrective actions. year onwards Monitoring and M&E system December evaluation capacity 9. Functioning web-based GIS enabled PMU/PlA 2013 in TN MIS system to cover monitoring of: and March physical and financial progress; 2014in procurement, compliance and results Puducherry _____________________as_per_project's_Results Framework. ________________ 10. Creation of base line data for PMU/PlA Partial data monitoring of outcomes indicators, available, balance by February Monitoring and reporting process PMU/PIA Ongoing 11. Centralized project subcomponent approval process will be followed at PMU_level.______________ 12. PMU/PiA to generate monthly PMU/PIA Ongoing reports using the MIS database for project monitoring, collate quarterly 73 Risks and Concerns Risk Control and Mitigation Responsibility Target progress reports and share with GoTN and GoPy and the Bank. 13. Benefit Monitoring and Evaluation PMU/PIA December (BME) by appointed consultants for 2013 creating a baseline and assessing and reporting the impacts of the project on the lives of the beneficiaries: at midterm and before project completion. Procurement: Monitoring Low Transparency in 14. Establishment of procurement PMU/PlA December bidding process, lack monitoring database within the 2013 in TN of competition in Project MIS. Reports compiled from and March contracts, disclosure the MIS to be uploaded on website 2014 in of procurement for public viewing. Puduchery information, corruption in procurement etc.)Establishmentofp 15. Regular internal audits including PMU/PA Ongoing physical verification of assets on a sample basis by internal auditors 16. Third Party Quality auditor PMU December ___ ___ ___ ___ __ ___ ___ ___ ___ __ __ ___ ___ ___ __ 2013inT 20143i Disclosure, Transparency and Competitiveness 17. National Competitive and PMU/PIA Ongoing Transparent Bidding, including specific disclosure requirements such as web-based dissemination of bidding documents and results. 18. First procurement performance PMU/PlA March 2014 report published, and then ____ ___ ___ ____ ___ ___ ____ ___ ___ ____________ ongoing Weak Financial Process Management 19. Payments centralized at PIA. PItA Ongoing 20. Internal audit of financial transactions by internal auditors PMU Ongoing appointed by PMU. 21. Annual audit of project's financial A Ongoing statements and by external auditors appointed by PIA. Disclosure 22. Disclosure of financial information PMU/PIA Ongoing through the web that will include financial reports such as Interim Unaudited Financial Reports and audited statements. 74 Risks and Concerns Risk Control and Mitigation Responsibility Target Lack of community Community Participation participation, 23. Appoint NGOs for CBDRM. PMU December oversight and 2013 grievance redress 24. Consultations with beneficiary PMU/ PIA Ongoing communities during project preparation and implementation and involvement in Housing, CBDRM. 25. Extensive Information, Education PMU Ongoing and Communication (IEC) activities during project implementation by NGO for the CBDRM component. Grievance Redress 26. Establishing a grievance redressal PMU/PIA December mechanism as part of the web District and 2013 in TN enabled MIS for complaints sub District and March handling and resolution tracking, administration 2014 in with a specific focus on beneficiary Puducherry re-verification. Grievances will be initially addressed at the Panchayat level. Unresolved grievances will be forwarded to the District Magistrate for resolution. If unresolved, the grievance will be forwarded to the project PMU/PIA. The decisions taken by the PMU/PIA would be final and binding on all parties. Public reporting of complaints and redressal status on the project website and at prominent locations at the respective project sites. Disclosure 27. Disclosure of project activities to PMU/PlA Ongoing local communities/stakeholders in local languages at prominent locations at prominent locations at the local (Panchayat) level. 28. Disclosure of beneficiary selection PIA December and verification list in public spaces 2013 and on project website. 29. As per the Right to Information Act PMU/PlA Ongoing of 2005, disclose information in response to requests. Information disclosed will include procurement results, project preparation and implementation documents, financial audit reports, ESMF, PAD, technical reports, environmental and social assessment and action plans, 75 Risks and Concerns Risk Control and Mitigation Responsibility Target physical and financial progress etc. Fraud and Preventive: corruption in 30. Transparency (disclosure of PMU/PLA/lAs On-going distribution and information to the public as per the payment of Right to Information Act of 2005). allowances Delay in startup and Level of Preparation project 31. Ongoing investments. PMU/PIA On-going implementation 32. Preparation of DPRs and technical PMU/PIA/IAs December sanctions for Electrical component 2013 and other technical scoping study. 33. PMU/PIA to be fully staffed. PMU/PIA October 2013 34. PIU in TANGEDCO TANGEDCO Within 6 months from effective date 76 Annex 7: Economic and Financial Analysis 1. The unique geophysical and socioeconomic conditions make the state of Tamil Nadu and UT of Puducherry highly vulnerable to natural disasters. Floods, cyclones, and droughts are of regular occurrence in the state of Tamil Nadu. Among the hydro-meteorological hazards, floods are the most frequent, and often, the most devastating. Approximately 279 people were killed and 200,000 were rendered homeless by the severe floods of 2005. Often, it is the agriculture sector that suffers the most. At least 350,000 hectares of agricultural crops were damaged by the floods of 2005. More than 1,500 riverbanks and channels and 3,000 irrigation tanks were breached. The tsunami of 2004 caused about 8005 deaths, leaving many people homeless. It jeopardized the livelihood of fishers, workers in salt pan, craftsmen engaged in boats, and net repairs. The widespread devastation led to the evacuation of about 500,000 people from the affected areas7. It created 95,614 additional poor in the state of Tamil Nadu8 (see Table 14). The total economic cost is estimated to be US$815 million7 Table 14: Extent of Tsunami Damage and Estimate Number of Additional Poor in Tamil Nadu State 2001 Average No. of Additional Population No. of No. of Household population per Village No. of Villages* Households Size village Damaged Poor Tamil 62,405,679 16,317 14,665,983 4.3 3,824.6 500 95,614.5 Nadu 2. The state is also highly exposed and venerable to tropical cyclones arising in the Bay of Bengal, because of its long coastline of about 800 kilometers. In exposed coastal areas of Tamil Nadu and Puducherry, widespread deaths and destruction of property is reported every year because of high intensity cyclones. 3. Give the risks faced, the proposed project is expected to yield significant benefits in terms of reduced non-market and market losses. While the cost involved is mainly the cost of the project investment, the annual operation and maintenance cost, while the benefit is in the reduction of capital assets (physical, natural, human, and social capital) losses, in the absence of which, vulnerable communities living in the cyclone areas may not be able to stay put for long in the face of climate change. In a three month period, 9 cyclonic storms crossed Tamil Nadu in 2005. In 2008, 200,000 hectares of paddy was destroyed by the cyclone "Nisha9." The state was, again, hit by another cyclone "Nilam" in 2012, which killed eight people and displaced about 8,500 10. A total of 6722 ha of cropped land was inundated in Nagapattinam, Thiruvarur, and Cuddalore districts " 7 http://www.contingencyplanlive.orz/files/tn cp.pdf 8 Adapted from: Poverty Impact of the Tsunami: An Initial Assessment and Scenario Analysis. Available online at < http://www.adb.org/tsunami> 9http://volontariat-inde.orz/Cyclone-Nisha-hits-Tamil-Nadu.html 10 http://india.blogs.nytimes.com/2012/11/01/eight-dead-and-over-8000-hit-by-cyclone-nilam/#h[] " http://bhuvan.nrsc.gov.in/bhuvan/PDF/inundated croppedarea nilam.pdf 77 Cyclone Thane, which struck Tamil Nadu and Puducherry, in 2011, caused 41 deaths in Cuddalore and 4 in Villupuram districts of Tamil Nadu. It took 7 lives in Puducherryl2. The loss of human capital alone was $7.8millionl3. Cyclones also tend to negatively impact local economy. While experience from a coastal district in the southern state of Odisha suggests a district GDP drop of 1.6%, indicative evidence from cyclone risk reduction project activities suggested a district GDP growth of more than 4%. ERR of cyclone shelter component alone was 73%. 14 4. A specific cyclone occurrence and the site intensity of that occurrence are hard to predict, long term in advance.15 While we don't know exactly when a cyclone may occur, nor the impact to a community, or precisely which building, road, or farm may suffer most in one exact event, we do know that some regions are more likely than others to suffer a cyclone or sustain a major storm, flood, wind, based on current available data of historical events. By collecting these statistics and scientific data, we can make informed estimation of the frequency of these events and the event intensity, for a specific location, region or a country. In short, the next cyclone occurrence is uncertain, but the cyclone risk can be assessed based on the historical data. Table 14 shows the frequency of cyclone occurrences and their site intensity, in terms of wind speed based on the historical data in certain districts of TN and Puducherry. 5. Like, Tamil Nadu, UT of Puducherry, too, is highly exposed to natural disasters even though it has a coastline of only 45 km6. It is highly vulnerable to natural hazards such as floods, cyclones, and earthquakes. The Tsunami of 2004 affected almost 43,000 people in the UT of Puducherry , caused 599 deaths, and incurred $52 million in economic damage . In 2008, cyclone "Nisha," which also hit Tamil Nadu, killed 67 people in Tamil Nadu and Puducherry. The normal life was completely paralyzed for 4 days3. 6. As the IPCC reports and recent scientific literature19 clearly demonstrate, the intensity and possibly frequency of such events can be expected to rise as global warming proceeds. 12 Habitat for Humanity (N.d.,). Thane Cyclone Response Report Program Report. Available online at < http://habitatindia.in.md-27.webhostbox.net/hfhcontent/uploads/2012/05/Thane-Cyclone-Report.pdf> 13 Bhattacharya S, Alberini A, Cropper ML The value of mortality risk reductions in Delhi, India. JRisk Uncertainty 2007;34:21-47. estimated that the value of a statistical life (VSL) in India is approximately 1.3 million Rupees or USD150,000 Purchasing Power Parity (PPP) USD. 14 It sounds counterintuitive, but several districts in the state of Tamil Nadu are vulnerable to droughts as well. Cuddalore, Dharmapuri, Karur, Madurai, Salem, Tiruchirapalli, and Vellore districts are vulnerable to droughts. In these districts, desertification and associated loss of livelihoods and migration are growing concerns among citizens. 15 Exacerbating this risk is that climate is changing: an overwhelming body of scientific evidence indicates that the earth's climate is rapidly changing predominantly as a result of increase in greenhouse gases caused by human activities. While the scientific evidence shows climate change presents very serious global risks, precisely how climate will change, and what the impact of such changes are for any specific place/regions, for example the selected sites in the case study, are still very uncertain. 16 http://www.pon.nic.in/revenue/NEM-Action-Plan-2009/chaPter%201.pdf 17 http://www.mapsofindia.com/pondicherry/information/tsunami-impact-on- pondicherry.html#sthash.xptCLaUa.dpuf 18 Social and Economic Impact of December 2004 Tsunami. Available online at 19 World Bank (2012). "Turn Down The Heat: Why a 4'C Warmer World Must be Avoided." November 2012. 78 Coupled with economic expansion and population growth in regions vulnerable to multiple hazards including climate change, the impact of disaster on development objectives is likely to increase possibly dramatically. Table 15: Cyclone parameters for districts in Tamil Nadu & Puducherry20 Districts Cyclone parameters Probable Probable maximu maximum No. of number m storm precipitatio severe surge n (PMP) cyclones of (PMSS) cyclones in knots (metre) (cm) (mps) Tamil Nadu Pudukkottai 1 1 55 (28) 7 52 Kanchipuram 8 13 55 (28) 3.5 68 Cuddalore 4 6 90(46) 3.5 68 Tiruvarur 3 6 90 (46) 5.5 60 Nagappattinam 3 10 90 (46) 4.5 68 Chennai 0 0 95 (49) 3.5 52 Viluppuram 3 3 77 (40) 3.5 68 Ramanathapuram 1 2 55 (28) 12 48 Thoothukudi 1 1 55 (28) 7 52 Tirunelveli 3 3 55 (28) 7 48 Thanjavur 1 2 90(46) 5.5 48 Tiruvallur 0 5 95(49) 4 56 Kanyakumari 0 0 45 (23) 3 40 Puducherry Puducherry 3 3 77 (40) 3.5 68 Karaikal 3 10 90 (46) 4.5 52 Yanam 4 17 125 (64) 4.5 52 7. Investments in DRR can generate high economic returns both for promoting hard and soft resilience.21 Benefits encompass all the avoided losses that would have occurred if the mitigation activity had not been implemented. While, they are much more difficult to measure until an actual natural hazard event occur, some benefits such as the elimination or reduction in property damage, are easy to measure. Other benefits, such as reductions in casualties, homelessness, 20 Adapted from: M. Mohapatra, G. S. Mandal, B. K. Bandyopadhyay, Ajit Tyagi and U. C. Mohanty (2012). Classification of cyclone hazard prone districts of India. Nat Hazards, 63:1601-1620. 21 Hard resiliency focuses primarily on structural measures, whereas soft resiliency incorporates different types of structural measures with process, policy and other types of mitigation measures. In essence, soft resiliency is about learning to live with risk, rather than creating the false assumption that risk can be eliminated. 79 environmental damage, and direct and indirect business interruption are not easily estimated, simply because data are not often collected on these categories after a disaster. 8. Nonetheless, cost- benefit ratios of 4 and higher are widely documented in the literature (see Box 1). Evidence suggests that investment in disaster risk reduction reduces: (a) allocations for emergency, (b) vulnerability to disasters, and at the same time, increases society's resilience to cope with disasters and (c) livelihood disruptions in the long term. Box 1: Cost-Benefit Analysis of DRR-U.S. Case According to a report released by the Multi-Hazard Mitigation Council: "On average, a dollar spent by FEMA on hazard mitigation (actions to reduce disaster losses) provides the nation with about US$4 in future benefits. More specifically, the study found that at present values, every dollar spent through FEMA mitigation grants, achieved savings of US$3.65 to the Federal treasury in avoided disaster relief and tax revenue losses. The discounted net present value of societal benefits from the US$3.5 billion invested in hazard mitigation was estimated as US$14 billion - which brings the total benefits up to US$4. Applying CBA to such investments has been a key factor in financing decisions in the U.S. for thousands of flood control and other disaster risk reduction projects since the 1950s. Source: UN ISDR (2007). Information Note No 3 Costs and Benefits of Disaster Risk Reduction. Economic Analysis 9. One of the major challenges of promoting disaster mitigation and prevention is to demonstrate that its potential benefits in terms of saved lives and property far exceeds its costs. Cost estimation of disaster risk reduction is relatively straightforward, while the estimation of their benefits is complicated by their probabilistic nature. In the end, the actual level of benefits will be realized depending on the degree of severity of the disaster event occurring over the life of the investment. 10. The benefit is mainly the cost savings from reducing or preventing the expected disaster risk vulnerabilities. The expected vulnerability is determined by the damage function, the probability of event intensity, and the impact areas and project time horizon. To calculate the vulnerability, the study tries to give it an economic value, which includes the vulnerability of: 11. Physical capital: the value of the physical assets that might be damaged during disaster events. Physical assets assessed include houses and public buildings, infrastructure, household assets, agriculture products, and household animals. This estimation is done through expert interview. 12. Environment capital: the value of environmental and natural resources. In this study, the environment capital is mostly land: recovery cost for land degradation, agriculture production loss from land degradation, loss from land erosion. 13. Human and social capital: value of statistical lives and social value. In this study, human capital is analyzed based on literature review. 14. Although the true economic effects cannot be fully ascertained in many cases, there are indications of positive economic efficiency with respect to the Project's mitigation investments. 80 Accordingly, specific analysis undertaken here includes the costs and benefits of measurable strengthening capacities as well as of mitigation investments. Given the data constraints, in many cases extrapolation is used from similar analysis done in India to arrive at the benefit estimates. 15. Given the disaster risks faced by the state of Tamil Nadu and UT of Puducherry, the proposed project is expected to yield both tangible and intangible benefits in long run (see Table 16). Overall, as detailed below, the project is economically feasible, yielding positive net present values with acceptable indicators and benefit-cost ratios exceeding 1. A key point to note, however, as demonstrated below is that not all "DRR" interventions are likely to be equal with respect to their costs and benefits, particularly in relation to climate change, non-monetized and distributional considerations. Strategic assessment of costs, benefits and the assumptions underlying estimates is, as a result, essential. As discussed further below, distinctions between in the cost-benefit profiles of strategies may depend heavily on the degree which they rely on soft versus hard resilience strategies and, thus, the vulnerability of projected benefits to critical threshold values. Finally, while financial analysis is often difficult in these types of "public goods" investments, considering the disaster related indirect costs, this project has the potential to reduce the annual need of external financing for post-disaster reconstruction, and reduce risk to achieving broader economic development and poverty alleviation goals. Table 16: Cost -Benefit Ratio of the project components [Project Component] Hazard I Vulnerability Benefit: Cost Ratio Construction of multi Flood/cyclone Economic, direct Every dollar spent on concrete disaster resilient disaster resilient housing yields permanent houses $0.60 in benefit. In addition benefits will include avoidance of emergency services, clean up and the loss of economic activity as well as savings due to reduced risk of injuries and death. Early warning Flood/cyclone Infrastructure Overall investment returns: 3.7 infrastructures to 1 to as high as 7.3 to 1 Evacuation routes with Flood/cyclone Mobility Average benefit resulting from signage disruption and evacuation infrastructure is $4.5 human life loss Cyclone Resilient Storm Motor vehicle Reduction in electricity pole Electrical Network Surge/cyclone/Flooding accidents maintenance of $674 per 1.60 Live-wire Kilometers contact Power outages Productivity loss Sustainable Fisheries: All Livelihood loss B/C ratio of 2.2 - 3.5 Works pertaining to the Fisheries sector Community Based All Economic and One dollar spent on hazard Disaster Risk social mitigation, including public Management Program awareness and education raising, & capacity building generates an estimated US$ 4 on average in future benefits. 81 Project Component Hazard Vulnerability Benefit: Cost Ratio Integrated Coastal Zone All Disaster losses US$0.4 million/km of coastline Management and repairs Disaster Resilient Housing 16. Given the probability of future high impact climatic events such as Tsunami and increase in climate induced extreme weather events such as floods and cyclones, the long-term benefit of construction of multi-hazard resilient permanent houses for people living within 200 to 1000 meters from the HTL, with poor access to evacuation shelters and early warning systems will be higher than the cost incurred in the long run. Damages or destruction to housing stocks due to the event per se are direct economic damages. These damages can either result from the disaster itself, or from consequential physical events following disasters, such as fires caused in the aftermath of a cyclone by collapsed power lines. 17. By combining the intensity data on a specific object, such as land, housing and infrastructure, we will understand to what extent these physical objectives will be affected, or damaged, when a disaster event occurs. The damage is a function of the event intensity (for example wind). D = f (i) D: damage i: event site intensity With cyclone frequency data, intensity data, and damage function, one can make informed estimations of the expected vulnerability of a cyclone event under the catastrophic risk condition. The expected vulnerability at location X in year N is a function of damage times the probability of damage. E[Vxn]=fnxMAXi3 {f (i)Pr(i) }dxdn x: location n: year i: event site intensity, il= wind, i2 = storm surge, and i3 = flood; f(i) : damage function Pr(i): probability of i E[ Vxn] : expected vulnerability at location x in year n. 18. Multi-hazard resilient permanent houses are relevant for the beneficiary households, as they would not only minimize future infrastructural damage costs, but also improve vulnerable households' ability to secure their belongings during disasters. Evidence from other states in India suggests that there is a clear benefit to building concrete houses in disaster prone areas. For the coastal districts of Odisha, it was estimated that when the wind speed is higher than 200 kmph, more than 90% of the buildings in the coastal areas of Odisha will collapse and when the wind speed is lower than 200 kmph, the damage (as % of a building) is positively related to wind speed in almost a linear relation: the higher the wind speed is, the higher percentage of damages it makes to a building. The structure and materials factors of building roofs and walls also shift the damage function. 82 19. One common way to assess benefits in this case would be compare the cost of building a permanent structure versus building a disaster prone "kutcha" houses at a lot cheaper rate. The probability of a "kutcha" house getting washed away in the annual floods is a common recurrence. In this project a 10% discount rate and a 20-year project lifetime, it is estimated that every dollar spent on concrete multi-hazard resilient permanent housing yields $0.60 in benefit22 While this demonstrates that the high cost of building permanent houses outweighs the benefit of avoiding the cost of rebuilding each year assuming it gets washed away, this does not take into account two benefit categories which are often difficult to measure. The avoidance of emergency services, clean up and the loss of economic activity as well as savings due to reduced risk of injuries and death would add substantially to the safety benefits of disaster resilient homes. Including these would increase the benefit estimates and make multi-hazard resilient permanent homes more attractive. In the long run, the benefit of building multi-hazard resilient permanent houses will therefore outweigh the costs incurred. The project is expected to yield $34.2 million in total benefit in twenty year period in addition to benefits from reduced health costs and emergency rehabilitation costs. Early Warning Infrastructure 20. Early warning infrastructures play a major role in disaster risk reduction. They are considered as an alternative for dealing with disasters, partly because these systems are comparatively less expensive to other expensive structural schemes. The benefits of early warning system, for example, come from the savings in natural disaster-related damages, and they could be either direct or indirect (see figure 1). 21. Usually 'visible' physical losses arising out of direct contact with extreme weather events are direct damages. For example, floods and wind damage to buildings, infrastructure, and crops. Indirect damages are the consequences of direct damages such the interruption and disruption of socioeconomic activities such as production losses resulting from flood damage of machinery. From an economic perspective, coastal flood or storm damages could be both tangible and intangible. Tangible impacts include the loss of things that have a monetary (replacement) value (for example, buildings, livestock, infrastructure) and can be assigned a dollar as they are traded in the market place (see Table 17). On contrary, intangible impacts include the loss of things that cannot be bought and sold (e.g., lives and injuries, environmental damage). Evidence suggests that for the twenty years of lifetime of a warning system, overall investment returns would likely be a minimum of between 3.7 to 1 to as high as 7.3 to 123 22 Venton, C & P. Venton (2004). Disaster preparedness programmes in India. A cost benefit analysis. Humanitarian Practice Network, ODI, London. 23 Holland, P. (2008). An economic analysis of flood warning in Navua, Fiji. EU EDF 8 - SOPAC Project Report 122, Reducing Vulnerability of Pacific ACP States, Fiji Technical Report. SOPAC (Pacific Islands Applied Geosciences Commission), Suva, Fiji. 83 Table 17: Impacts of Disasters: Tangible vs. Intangible24 Disaster Losses Measure Consequences Tangible Intangible Deaths Loss economically of Social and Number of People active individuals psychological effects on remaining community Injuries Medical treatment Social and Number and injury needs, temporary loss of psychological pain and severity economic activity by recovery productive individuals Physical damage Replacement and repair Cultural losses Inventory of damaged cost elements by number and damage level Emergency Mobilization cost, Stress and overwork in Volume of manpower, operations investment in relief participants man-days employed, preparedness capability equipment and resources expended to relief Disruption to Value of lost production Opportunities, Number of working economy competitiveness, days lost, volume of reputation production lost Social disruption Temporary housing, Psychological, social Number of displaced relief, economic contacts, cohesion, persons, homeless production community morale Environmental Clean-up costs, repair Consequences of poorer Scale and severity impact cost environment, health risks, risk of future disaster 24 Adapted from United Nations Development Programme, 1994. "Vulnerability and Risk Assessment". 2nd Edition. Cambridge Architectural Research Limited. Cambridge. P.27. 84 Figure 1. Direct and indirect tangible and intangible impacts of natural disasters25 Total Damages Tangible Impacts Intangible Impacts Impacts concerning goods and Impacts concerning goods and Direct Impacts Indirect Impacts Direct Impacts Indirect Impacts Impacts caused during Flows of goods and I7mpacts caused during Flows of goods and actual hazard event e.g. services affected by direct actual hazard event services affected by direct houses destroyed damage and disruption e.g. human casualties, damage and disruption after disaster e.g. reduICed eNvironmaental damnage after disaster e.g. Macroeconomic impacts Emergency Evacuation Routes 22. Often, traffic problems, during and after the disasters; impinge on peoples' ability to safely get out of harm's way. With emerging evidences, it is becoming increasing clear that having viable evacuation routes saves lives. Given the role of evacuation infrastructure in disaster risk reduction, transportation issues have become more important in coastal evacuations. 25 AusAID (2005), Tool Two: A Toolkit for Assessing the Costs and Benefits of Disaster Risk Management Measures in the Pacific. Prepared by the University of the South Pacific (USP) and the South Pacific App lied Geoscience Commission (SOPAC) for the Australian Agency for International Development (AusAID). 85 Average accrued benefit from infrastructure investment such as evacuation route is $4.5 26. For every dollar spent on evacuation route, there is a benefit of US$4.5. Evacuation Centers 23. Efficient multipurpose evacuation centers are important to provide support for large number of coastal citizens in critical period. With more multipurpose evacuation shelters, coastal citizens would have more choices about the actions they can take in response to disaster warnings. These shelters in the coastal areas would help avoid the loss of life in future coastal floods and cyclones, which are expected to be more frequent with climate change. Evidence suggests that the cost of averting a death through the construction of formal cyclone shelters is US $80 per death averted27. The proposed US$50 million would ultimately result in 62,500 averted deaths from disasters. Cyclone Resilient Electrical Network 24. The utility infrastructure in coastal storm surge areas are generally more exposed than in inland areas. Tsunami snapped power poles and lines, dislocated poles, and caused loss of transformers. Damages suffered were about US$1.2 million in Tamil Nadu and US$0.2 million in Puducherry28. The Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO) suffered a cumulative loss of over US$154.63 million, when cyclone Thane hit the state. It caused damages to: electrical towers, substation equipment, transformers, poles, and other distribution materials. Apart from 35 1 10-KV and 220-KV EHT towers, 45,000 electric poles, 6,000 pole structures and 4,500 distribution transformers were damaged29. Establishing an underground electrical network will reduce future infrastructure and social costs imposed by thunderstorms, storm surges, and flooding. The annual expected restoration cost of electricity pole alone in cyclone prone areas is US$1.69. With life of 60 years and a discount rate of 10%, this amounts to a present value of about US$16.85. With 40 distribution poles per 1.60 Km, the cost amounts to US$674 per 1.60 Km30 25. Often, individual and small-scale entrepreneurs that need emergency power restoration are at the receiving ends of cyclone-induced power disruptions. Even a simple solar system with just two panels, a battery and a charge controller costs about US$92031. Given the economic costs imposed, US$70 million in investment cost for the component will soon be recovered through damage avoidance and/or reduction in repair costs as benefits. As the overall duration of a storm recovery is primarily a function of repair and replacement of transmission and 26 Vermeiren, J., S. Stichter, and A. Wason. 2004. "Costs and Benefits of Hazard Mitigation for Building and Infrastructure Development: A Case Study in Small Island Developing States". Downloaded from http://www.oas.org/en/cdmp/document/papers/tiems.htm on 26 February 2013. 27 Chowdhury, A., R. Mushtaque, A.U. Bhuyia, A.Y. Choudhury, and R. Sen. 1993. "The Bangladesh Cyclone of 1991: Why So Many People Died." Disasters, vol. 17, no. 4, pp. 291-304. 28 http://siteresources.worldbank.orJ/INDIAEXTN/Resources/295583-1110791780048/annx-rural-muni-infra-tsu-na-32005.pdf 29 George, A. and Lakshmi, A. (2012). Cyclone Thane -Disaster Preparedness and Response. Available online < http://www.trinet.in/?q=node/824> 30 Brown, R. (2009). Cost-Benefit Analysis of the Deployment of Utility Infrastructure Upgrades and Storm Hardening Programs. Quanta Technology, NC, USA. 31 http://www.auroville.org/ioumals&media/avtodav/archive/2012/AVToday-271-feb 2012.pdf 86 distribution lines, societal benefits in terms of reduction in interruption and restoration time will be an additional benefit. In return for the proposed project cost, electricity customers can receive a number of potential benefits such as: (a) improved aesthetics (b) lower tree trimming cost (c) lower storm damage and restoration cost (d) fewer motor vehicle accidents (e) reduced live-wire contact (f) fewer outages during normal weather (g) fewer momentary interruptions (h) improved utility relations regarding tree trimming (i) fewer structures impacting sidewalks from the undergrounding of their overhead systems. Fisheries 26. Activities 1 and 2, under component 2, will have direct impact on livelihood activities as the majority of coastal residents' livelihood is dependent on the fisheries sector. Evaluation of benefits of retrofitting water infrastructure suggests B/C ratio of 2.2 - 3.532. About US $24 million in community livelihood investments is expected to generate an FIRR of 10.7 percent and an EIRR of 20.5 percent. Institutional Strengthening 27. Given the reactive orientation of disaster risk management in Tamil Nadu and Puducherry, the existing institutions lack the required disaster risk reduction capacity and capabilities. Strengthening of provincial institutions for disaster management would yield returns in the range of 7.5%-30.6%, with IRR: 20.4%33. 28. Given the low level disaster risk reduction awareness in the coastal areas, both in Tamil Nadu and Puducherry, awareness-raising is required to secure a solid appreciation and understanding of the relevance of disaster risk reduction to sustainable development and poverty reduction. Evidence suggests that awareness-raising activity such as training courses would be widely effective in DRR. One dollar spent on public awareness and education programs generates an estimated US$ 4 on average in future benefits34 29. Through "Integrated Coastal Zone Management Plan" component, the project aims to protect many of the coastal systems, whose ecological functions have tremendous economic benefits, even though they do not directly generate revenues. A mean estimate of about US$0.4 million/km of coastline per year means Tamil Nadu alone will accrue $430.4 million benefit every year. 32 Vermeiren, J. et al. (1998). Costs and Benefits of Hazard Mitigation for Building and Infrastructure Development: A case study in small island developing states. Conference of The International Emergency Management Society. 33 World Bank (1996). Staff Appraisal report: Argentina Flood Project. Washington DC, World Bank. 34 MMC/NIBS. Natural Hazard Mitigation Saves: An Independent Study to Assess the Future Savings from Mitigation Activities. Washington, DC: Multihazard Mitigation Council of the National Institute of Building Sciences, 2005. 87