FOR OFFICIAL USE ONLY Report No: RES41042 INTERNATIONAL DEVELOPMENT ASSOCIATION RESTRUCTURING PAPER ON A PROPOSED PROGRAM RESTRUCTURING OF IN MAHARASHTRA RURAL WATER SUPPLY AND SANITATION PROGRAM (PforR) P126325 CREDIT No: 5375 APPROVED ON MARCH 12, 2014 REPUBLIC OF INDIA Regional Vice President: Hartwig Schafer Country Director: Junaid Kamal Ahmad Regional Director: John A. Roome Practice Manager: Michael Haney Task Team Leader(s): Raghava Neti Water Global Practice South Asia Region Regional Vice President: Hartwig Schafer Country Director: Junaid Kamal Ahmad The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) Regional Director: John A. Roome Practice Manager: Michael Haney Task Team Leader(s): Raghava Neti The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) ABBREVIATIONS AND ACRONYMS DEA Department of Economic Affairs DLIs Disbursement-Linked Indicators DLR Disbursement-Linked Results GoI Government of India GoM Government of Maharashtra IDA International Development Association PAP Program Action Plan PDO Program Development Objective PforR Program-for-Results WSSD Water Supply and Sanitation Department of GoM WSS Water Supply and Sanitation XDR Special Drawing Right The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) DATA SHEET (IN Maharashtra Rural Water Supply and Sanitation Program - P126325) BASIC DATA Project ID Financing Instrument IPF Component P126325 Program-for-Results Financing No Approval Date Current Closing Date 12-Mar-2014 31-Mar-2020 Organizations Borrower Responsible Agency Department of Economic Affairs, North Block Water Supply and Sanitation Department Program Development Objective(s) To improve the performance of Maharashtra's sector institutions in planning, implementation and monitoring of its Rural Water Supply and Sanitation program and to improve access to quality and sustainable services in peri-urban villages, and in water-stressed and water-quality affected areas. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Approval Effectiveness Closing Ln/Cr/TF Signing Date Commitment Disbursed Undisbursed Date Date Date 12-Mar- 31-Mar- IDA-53750 30-May-2014 25-Aug-2014 135.00 61.28 56.21 2014 2020 Policy Waiver(s) Does the Program require any waivers of Bank policies applicable to Program-for-Results operations? No Page 1 of 14 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) I. PROGRAM STATUS AND RATIONALE FOR RESTRUCTURING The current Program closing date is March 31, 2020. In its letter of March 26, 2020, to the World Bank, the Department of Economic Affairs, Ministry of Finance, Government of India, requested an extension of the Program closing date by six months, to September 30, 2020. The purpose of this restructuring is to extend the Program closing date by six months, in anticipation of a future restructuring to specify the use of the undisbursed funds in the extended implementation period up to September 30, 2020. The extension of the Program closing date will provide time for Government of India to determine its priorities with respect to the use of the undisbursed funds under the Program in support of its response to the COVID-19 crisis. II. DESCRIPTION OF PROPOSED CHANGES Extend the Program closing date by six months to September 30, 2020. Note: Annex 1 and 2 have been automatically downloaded from the system, which cannot be deleted. They may be ignored. III. SUMMARY OF CHANGES Changed Not Changed Change in Loan Closing Date(s) ✔ Change in Implementing Agency ✔ Change in Program's Development Objectives ✔ Change in Program Scope ✔ Change in Results Framework ✔ Change in Cancellations Proposed ✔ Reallocation between and/or Change in DLI ✔ Change in Disbursements Arrangements ✔ Change in Disbursement Estimates ✔ Change in Systematic Operations Risk-Rating Tool ✔ (SORT) Page 2 of 14 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) Change in Safeguard Policies Triggered ✔ Change in Legal Covenants ✔ Change in Institutional Arrangements ✔ Change in Technical Method ✔ Change in Fiduciary ✔ Change in Environmental and Social Aspects ✔ Change in Implementation Schedule ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/TF Status Closing Date Closing(s) Date Closing Date for Withdrawal Applications IDA-53750 Effective 31-Mar-2020 30-Sep-2020 30-Jan-2021 OPS_DETAILEDCHANGES_EA_TABLE . Page 3 of 14 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) ANNEX 1: RESULTS FRAMEWORK . . Results framework Program Development Objectives(s) To improve the performance of Maharashtra's sector institutions in planning, implementation and monitoring of its Rural Water Supply and Sanitation program and to improve access to quality and sustainable services in peri-urban villages, and in water-stressed and water-quality affected areas. Program Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 Improved Institutional Performance PDO Indicator 1:Number of districts using 0.00 10.00 30.00 strengthened M&E systems (Number) PDO Indicator2: Number of districts using 0.00 4.00 6.00 improved planning processes (Number) PDO Indicator 3: Percentage of santioned piped rural water supply systems that followed GoM's 50.00 60.00 demand responsive approach (Percentage) Improved Access to quality and sustainable services People provided with access to improved water 0.00 385,000.00 sources (CRI, Number) Page 4 of 14 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 People provided with access to improved water sources - Female (RMS requirement) (CRI, 0.00 192,500.00 Number) People provided with access to improved water 0.00 385,000.00 sources - rural (CRI, Number) PDO Table SPACE Intermediate Results Indicators by Result Areas RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 1.Strengthened Sector Planning and Monitoring WSSD has identified sector- WSSD carries out a wide M&E needs Existing M&E Existing M&E Strengthened review of Intermediate Results and formulated a WSSD has Strengthened system is limited system is limited M&E system is implementation of Indicator 1: plan for designed and M&E system is in scope and is not in scope and is fully the strengthened Strengthened M&E strengthened tested the fully fully used not fully used implemented in M&E system and system implemented M&E system, strengthened implemented in consistently across consistently at least 10 identifies required for the sector (Text) which can be M&E system all 30 districts the state across the state districts changes and implemented future needs across Maharashtra 2. Improved Capacity for Program Implementation Intermediate Results 0.00 0.00 74.00 75.00 75.00 75.00 75.00 75.00 75.00 Indicator Page 5 of 14 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 2:Strengthened capacity of key sector institutions (Percentage) Intermediate Results Indicator 3:Percentage of Piped water systems 10.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 40.00 that are using sustainable O&M models (Percentage) Intermediate Results Indicator 4: Percentage of Gram Panchayats 10.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 40.00 that maintain Open Defecation Free status (Percentage) 3. Improved access to quality and sustainable access to Water and Sanitation services in peri-urban villages Intermediate Results Indicator 5:No. of house connections to a 0.00 0.00 0.00 0.00 0.00 4,000.00 68,095.00 commissioned peri- urban water supply system (Number) Intermediate Results Indicator 6: Number of 0.00 46.00 Peri-Urban Gram Panchayats meeting Page 6 of 14 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 Service Delivery Standards (Number) Intermediate Results Indicator 7: No.of houses connections to a peri-urabn water 0.00 0.00 0.00 5,000.00 10,000.00 20,000.00 45,000.00 supply system receiving service as per Service Delivery Standards (Number) Intermediate Results Indicator 8:No. of households in a peri- urban Gram Panchayat 0.00 5,000.00 10,000.00 28,000.00 connected to sullage collection and safe disposal system (Number) 4. Improved access to safe drinking water in water-stressed and water quality affected areas Intermediate Results Indicator 9:No. of Community Safe and 0.00 100.00 120.00 180.00 214.00 Secure Water Schemes (Number) Intermediate Results Indiactor 10: Number 0.00 6.00 8.00 10.00 12.00 of Aquifer Water Page 7 of 14 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 Management initiatives successfully implemented (Number) IO Table SPACE Disbursement Linked Indicators Matrix DLI IN00821147 ACTION DLI 1 DLI#1: Strengthened M&E system for the sector Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Text 34,000,000.00 44.47 Period Value Allocated Amount (USD) Formula Existing M&E system is limited in scope and is not Baseline fully used consistently across the state WSSD has identified sector-wide M&E needs and has formulated a plan for developing a March 31, 2015 1,000,000.00 strengthened M&E system, which can be implemented across Maharashtra. WSSD has designed and tested the strengthened March 31, 2016 15,000,000.00 M&E system Strengthened M&E system is fully implemented in March 31, 2017 15,000,000.00 at least 10 districts Strengthened M&E system is fully implemented in March 31, 2018 1,000,000.00 at least 20 districts Page 8 of 14 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) Strengthened M&E system is fully implemented in March 31, 2019 1,000,000.00 at least 30 districts WSSD carries out a review of implementation of the March 31, 2020 strengthened M&E system and identifies required 1,000,000.00 changes and future needs DLI IN00821148 ACTION DLI#2:Strengthened capacity of key sector institutions (percentage of sanctioned staff maintained, trained and equipped DLI 2 every year in key sector institutions as per the Annual Capacity Dev Plan) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome No Percentage 36,000,000.00 45.42 Period Value Allocated Amount (USD) Formula Baseline 0.00 March 31, 2015 75.00 6,000,000.00 52000 for each 1% March 31, 2016 75.00 6,000,000.00 52000 for each 1% March 31, 2017 75.00 6,000,000.00 52000 for each 1% March 31, 2018 75.00 6,000,000.00 52000 for each 1% March 31, 2019 75.00 6,000,000.00 52000 for each 1% March 31, 2020 75.00 6,000,000.00 52000 for each 1% Page 9 of 14 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) DLI IN00821149 ACTION DLI 3 DLI#3: No. of house connections to a commissioned water supply system Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Number 40,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 March 31, 2015 0.00 0.00 March 31, 2016 0.00 0.00 March 31, 2017 17,024.00 10,000,000.00 381 per house connection March 31, 2018 34,048.00 10,000,000.00 381 per house connection March 31, 2019 51,071.00 10,000,000.00 381 per house connection March 31, 2020 68,095.00 10,000,000.00 381 per house connection DLI IN00821150 ACTION DLI 4 DLI#4: No. of house connections to a sustainable water supply system receiving a regular water service Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Number 25,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 March 31, 2015 0.00 0.00 Page 10 of 14 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) March 31, 2016 0.00 0.00 March 31, 2017 0.00 0.00 March 31, 2018 17,024.00 12,500,000.00 317 per connection March 31, 2019 34,048.00 6,250,000.00 317 per connection March 31, 2020 51,071.00 6,250,000.00 317 per connection DLI IN00821151 ACTION DLI 5 DLI#5: No. of Community Safe and Secure Water Supply Systems (CSSWS) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Number 30,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 March 31, 2015 0.00 March 31, 2016 250.00 12,930,000.00 33600 per each system March 31, 2017 450.00 10,350,000.00 33600 per each system March 31, 2018 580.00 6,720,000.00 33600 per each system March 31, 2019 0.00 0.00 March 31, 2020 0.00 0.00 Page 11 of 14 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) ANNEX 2: PROGRAM ACTION PLAN . . PAP_NOT_CHANGE_TBL Action Description Source DLI# Responsibility Timing Completion Measurement 1. Strengthen complaint and grievance redress mechanisms within WSSD at the state level to handle complaints (Information collection, track remedies, aggregate A functional system, annual annually and publication of disclose). complaints/grievances received Establish and actions taken, publishing such mechanism to information, and clarity on track top level mechanisms to monitor vigilance vigilance cases. Other Client Recurrent Yearly cases. 2. Strengthen RWSS planning processes in at least 6 districts, and review its effectiveness by the end of the Plans prepared and used for the Program Technical Client Recurrent Yearly sector 3. Refine the current O&M policy of GoM and establish and institutionalize technical and administrative back-up support mechanism for GPs/VWSCs Technical Client Due Date 30-Sep-2019 O&M policy document agreed 4. Strengthen institutions to better manage the sanitation program of the state, assess areas of weakness (particularly in Units created at the districts and relation to ODF Technical Client Recurrent Semi-Annually they function Page 12 of 14 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) slip back), and take mitigation actions as needed, by Year-2 5. Adopt a suitable HR policy HR Policy or suitable directives for the sector Technical Client Due Date 30-Jun-2019 notified 6. Compile the rules and procedures on procurement of works into a procurement manual Fiduciary Systems Client Due Date 30-Aug-2019 Compiled procedures available 7. Conduct procurement post- review on a regular basis, covering at least 15% of contracts issued every year in the RWSS Annual Procurement audit sector. Fiduciary Systems Client Recurrent Yearly conducted 8. Establish a system to report information on expenditure at all levels; carry out district-level, block level and GP level audits as per specific ToRs Fiduciary Systems Client Recurrent Yearly Information available regularly 9. Implement strengthened environmental and social management rules and procedures for the Program, supported by necessary capacity building measures Environmental and social for sector Environmental and Social procedures adopted during institutions. Systems Client Recurrent Continuous scheme implementation OLD PAP 2. Prepare and implement an Annual Capacity Development Plan for key sector Plans developed and institutions Other Client Recurrent Yearly implemented Page 13 of 14 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) (WSSO, DWSM and BRCs) focused on developing both individual competencies and collective capabilities (resources, tools and assets). OLD PAP 5. As part of the state’s M&E system, establish a system to monitor the “schedule performance” (extent of completion within time sch edules) of completed rural water supply schemes, by Year- 2, and then monitor annually Other Client Recurrent Yearly SPI measurement . Page 14 of 14