The World Bank IN Punjab Rural Water and Sanitation Sector Improvement Project (P150520) REPORT NO.: RES39683 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF IN PUNJAB RURAL WATER AND SANITATION SECTOR IMPROVEMENT PROJECT APPROVED ON MARCH 24, 2015 TO INDIA Water Global Practice South Asia Region Regional Vice President: Hartwig Schafer Country Director: Junaid Kamal Ahmad Regional Director: John A. Roome Practice Manager/Manager: Michael Haney Task Team Leader(s): Srinivasa Rao Podipireddy The World Bank IN Punjab Rural Water and Sanitation Sector Improvement Project (P150520) ABBREVIATIONS AND ACRONYMS DEA Department of Economic Affairs, Government of India DWSS Department of Water Supply and Sanitation IA Implementing Agency IP Implementation Progress PDO Project Development Objective The World Bank IN Punjab Rural Water and Sanitation Sector Improvement Project (P150520) BASIC DATA Product Information Project ID Financing Instrument P150520 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 24-Mar-2015 31-Mar-2021 Organizations Borrower Responsible Agency Department of Economic Affairs Department of Water and Sanitation Project Development Objective (PDO) Original PDO To improve water and sanitation service levels, reduce open defecation, and strengthen service delivery arrangements in targeted villages in Punjab OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-84870 24-Mar-2015 11-May-2015 19-Jun-2015 31-Mar-2021 248.00 136.27 111.73 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank IN Punjab Rural Water and Sanitation Sector Improvement Project (P150520) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. Current ratings of progress towards achievement of the PDO and overall implementation progress (IP) are Moderately Unsatisfactory (MU). With less than seven months before closing the project, the overall physical progress on the civil works stands at 53% and disbursement stands at 55% (USD 136.27 out of 248.00 Million). Only one of six PDO indicators has been fully achieved and the remaining indicators are likely to fall short of targets by the project closing date of March 31, 2021. 2. The purpose of this restructuring is to cancel funds available as savings. The DEA (ref: F.No. 3/13/2013-FB-III, dated June 23, 2020) requested the Bank to cancel $ 20 million as proposed by the Government of Punjab in their letter dated June 8, 2020. II. DESCRIPTION OF PROPOSED CHANGES The purpose of this restructuring is to cancel $ 20 million. This cancellation has necessitated reduction in allocation of funds against the components and disbursement categories. As a result of reduced allocation of funds, the targets in the Results Framework are also readjusted. The disbursement estimates are also changed based on actual amounts disbursed till now and estimates for the remining period. III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursement Estimates ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ PBCs ✔ Loan Closing Date(s) ✔ Disbursements Arrangements ✔ Overall Risk Rating ✔ The World Bank IN Punjab Rural Water and Sanitation Sector Improvement Project (P150520) Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Transformation - Improved Transformation - Improved 100.67 Revised 91.22 Livability of Villages Livability of Villages Inclusive Household Water and Inclusive Household Water and 119.03 Revised 114.76 Sanitation Services Sanitation Services Improved Water Quality 108.13 Revised Improved Water Quality 103.69 Strengthening Institutions and Strengthening Institutions and 43.93 Revised 29.94 Project Management Project Management TOTAL 371.76 339.61 OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE The World Bank IN Punjab Rural Water and Sanitation Sector Improvement Project (P150520) CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation BORROWER' S REQUEST IBRD- Disburs 248,000,000.0 228,000,000.0 USD 20,000,000.00 23-Jun-2020 FOR 84870-001 ing 0 0 COUNTRY REASONS OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IBRD-84870-001 | Currency: USD iLap Category Sequence No: 1 Current Expenditure Category: Toilet Grants under Pt B.3 of Proj 60,000,000.00 56,770,376.40 58,600,000.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: Gd,Wk,NCS,CS for all Prj excpt cat1 143,950,000.00 69,800,689.97 129,270,000.00 64.00 64.00 iLap Category Sequence No: 3 Current Expenditure Category: Cat5:Gd,Wk,NCS,CS,exc cat1&2 43,430,000.00 0.00 39,510,000.00 50.00 50.00 Total 247,380,000.00 126,571,066.37 227,380,000.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2015 0.00 0.00 The World Bank IN Punjab Rural Water and Sanitation Sector Improvement Project (P150520) 2016 49.00 49.32 2017 33.00 33.07 2018 30.00 30.73 2019 45.00 9.67 2020 55.00 12.86 2021 36.00 92.17 . The World Bank IN Punjab Rural Water and Sanitation Sector Improvement Project (P150520) . Results framework COUNTRY: India IN Punjab Rural Water and Sanitation Sector Improvement Project Project Development Objectives(s) To improve water and sanitation service levels, reduce open defecation, and strengthen service delivery arrangements in targeted villages in Punjab Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Improve water and sanitation service levels PDO Indicator: Villages with higher service levels 926.00 1,200.00 2,200.00 3,300.00 3,087.00 5,035.00 5,406.00 5,406.00 managed by the GPWSCs (Number) Action: This indicator has been Revised PDO Indicator: GPWSCs that are managing O&M of water supply schemes 926.00 1,500.00 2,000.00 3,000.00 4,182.00 4,700.00 5,301.00 5,301.00 through full cost recovery (Number) Action: This indicator has been Revised PDO Indicator: Villages receiving improved 8,933.00 8,933.00 8,933.00 9,054.00 9,147.00 9,197.00 9,757.00 9,757.00 improved quality of water (Number) The World Bank IN Punjab Rural Water and Sanitation Sector Improvement Project (P150520) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Action: This indicator has been Revised Direct project 0.00 500,000.00 2,000,000.00 3,500,000.00 6,832,916.00 7,105,450.00 7,377,984.00 7,377,984.00 beneficiaries (Number) Action: This indicator has been Revised Female beneficiaries 0.00 3,870,539.00 (Number) Action: This indicator has been Revised SC Benificiaries 0.00 150,000.00 500,000.00 800,000.00 2,186,533.00 2,273,507.00 2,360,481.00 2,360,481.00 (Number) Action: This indicator has been Revised reduce open defecation PDO Indicator: Villages 0.00 200.00 1,000.00 2,000.00 13,726.00 13,726.00 13,726.00 13,726.00 declared ODF (Number) strengthen service delivery arrangements PDO Indicator: Districts with MIS operationalized, 0.00 0.00 22.00 22.00 22.00 22.00 22.00 22.00 and monthly reporting of scheme data’ (Number) PDO Table SPACE The World Bank IN Punjab Rural Water and Sanitation Sector Improvement Project (P150520) Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Component 1 - Transformation: Improved Livability of Villages New piped household water connections that are resulting from the 0.00 50,000.00 125,000.00 250,000.00 450,000.00 500,000.00 540,070.00 540,070.00 project intervention (Number) Action: This indicator has been Revised New household sewer connections constructed 0.00 0.00 5,000.00 40,000.00 8,080.00 10,000.00 11,150.00 11,150.00 under the project (Number) Action: This indicator has been Revised Component 2: Inclusive Household Water and Sanitation Services Piped household water connections that are benefiting from 0.00 50,000.00 125,000.00 250,000.00 400,000.00 450,000.00 492,150.00 492,150.00 rehabilitation works undertaken by the project (Number) Action: This indicator has been Revised Improved latrines constructed under the 0.00 130,000.00 325,000.00 520,000.00 480,410.00 480,410.00 480,410.00 480,410.00 project (Number) The World Bank IN Punjab Rural Water and Sanitation Sector Improvement Project (P150520) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Component 3: Improved Water Quality Intermediate Results Indicator: Annual report published on the state- No No Yes Yes Yes Yes Yes Yes wide rural drinking water quality status (Yes/No) Component 4: Institutional Development and Project Management Intermediate Results Filling of all senior Complete DWSS Development and Indicator: DWSS Reporting of key Reporting of key Fully Operational Approval of new sanctioned restrcturing; and reporting of key organizational transition performance performance DWSS with service zero structure and positions and approval and performance plan for improved service metrics at unit and metrics at unit and delivery efficiency posting a Head implementing new implementation of metrics at unit and delivery approved and department level department level improved job descriptions training plans department level implemented (Text) Intermediate Results Indicator:Percentage of grievances redressed 6.60 6.60 6.00 5.50 5.00 5.00 5.00 5.00 within the stipulated time period /proposed time standard (Days) People trained to improve hygiene behavior/sanitation 0.00 500,000.00 1,000,000.00 1,500,000.00 2,642,255.00 2,642,255.00 2,642,255.00 2,642,255.00 practices under the proj (Number) People trained to improve hygiene behavior/sanitation 0.00 250,000.00 500,000.00 750,000.00 1,268,282.00 1,268,282.00 1,268,282.00 1,268,282.00 practices - female (Number) The World Bank IN Punjab Rural Water and Sanitation Sector Improvement Project (P150520) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 GPWSCs that are managing O&M of sewerage schemes 0.00 50.00 75.00 100.00 73.00 100.00 110.00 110.00 through full cost recovery (Number) Action: This indicator has been Revised IO Table SPACE The World Bank IN Punjab Rural Water and Sanitation Sector Improvement Project (P150520)