FOR OFFICIAL USE ONLY Report No: ICR00005546 INTERNATIONAL DEVELOPMENT ASSOCIATION IMPLEMENTATION COMPLETION AND RESULTS REPORT Credit No. 5375-IN ON A CREDIT IN THE AMOUNT OF SDR 64.5 MILLION (US$ 96.16 MILLION EQUIVALENT) TO INDIA FOR THE MAHARASHTRA RURAL WATER SUPPLY AND SANITATION PROGRAM PROGRAM-FOR-RESULTS August 22, 2021 Water Global Practice 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 May 31, 2021) Currency Unit = Indian Rupee (INR) INR 72.52 = US$1 US$ 1.44 = SDR 1 FISCAL YEAR April 1 – March 31 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 ICR Main Contributor: Arun Kumar Dobhal ABBREVIATIONS AND ACRONYMS ABhY Atal Bhujal Yojana ( National Ground M&E Monitoring and Evaluation Water Management Improvement Program) AWMI Aquifer Water Management Initiative MEETRA Maharashtra Environmental Engineering Training and Research Academy BRC Block Resource Center MIS Management Information System C&AG Comptroller and Auditor General MIT Massachusetts Institute of Technology CEO Chief Executive Officer MJP Maharashtra Jeevan Pradhikaran COVID- Coronavirus Disease MoJS Ministry of Jal Shakti 19 CPF Country Partnership Framework MTR Midterm Review CPS Country Partnership Strategy NABL National Accreditation Board for Testing and Calibration Laboratories CSSWS Community Safe and Secure Water NARSS National Annual Rural Sanitation Survey System DEA Department of Economic Affairs NBA Clean India Campaign (Nirmal Bharat Abhiyan) DLI Disbursement-Linked Indicator NRDWP National Rural Drinking Water Program DLR Disbursement-Linked Result O&M Operation and Maintenance DWSM District Water and Sanitation Mission ODF Open Defecation Free ESSA Environmental and Social Systems OPCS Operations Policy and Country Services Assessment FHTC Functional Household Tap Connection PAD Project Appraisal Document FRS Functional Requirement Specification PAP Program Action Plan GDP Gross Domestic Product PDO Program Development Objective GoI Government of India PforR Program-for-Results GoM Government of Maharashtra PHD Public Health Department GP Gram Panchayat PPR Procurement Post Review GRM Grievance Redress Mechanism RSPMU Reform Support and Project Management Unit GSDA Groundwater Surveys and Development RWS Rural Water Supply Agency ICR Implementation Completion and RWSS Rural Water Supply and Sanitation Results Report IEC Information, Education, and SAC Social Audit Committee Communication IMIS Integrated Management Information SBMG Swachh Bharat Mission Gramin System IRI Intermediate Results Indicator SBMSO Swachh Bharat Mission Support Operation ISM Implementation Support Mission SPI Schedule Performance Index IT Information Technology VWSC Village Water and Sanitation Committee IVA Independent Verification Agent WSSD Water Supply and Sanitation Department JJM Jal Jeevan Mission WSSO Water and Sanitation Support Organization Lpcd Liters Per Capita Per Day ZP Zilla Parishad TABLE OF CONTENTS DATA SHEET .......................................................................................................................... 1 I. PROGRAM CONTEXT AND DEVELOPMENT OBJECTIVES .................................................... 6 A. CONTEXT AT APPRAISAL AND THEORY OF CHANGE .................................................................6 B. SIGNIFICANT CHANGES DURING IMPLEMENTATION .............................................................. 10 II. OUTCOME .................................................................................................................... 13 A. RELEVANCE .......................................................................................................................... 13 B. ACHIEVEMENT OF PDOs (EFFICACY)....................................................................................... 15 C. JUSTIFICATION OF OVERALL OUTCOME RATING .................................................................... 21 D. OTHER OUTCOMES AND IMPACTS ........................................................................................ 21 III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ................................ 22 A. KEY FACTORS DURING PREPARATION ................................................................................ 22 B. KEY FACTORS DURING IMPLEMENTATION ............................................................................. 23 IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME .. 25 A. QUALITY OF MONITORING AND EVALUATION ....................................................................... 25 B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE ..................................................... 26 C. BANK PERFORMANCE ........................................................................................................... 27 D. RISK TO DEVELOPMENT OUTCOME ....................................................................................... 29 V. LESSONS AND RECOMMENDATIONS ............................................................................. 29 ANNEX 1. RESULTS FRAMEWORK, DISBURSEMENT LINKED INDICATORS, AND PROGRAM ACTION PLAN ...................................................................................................................... 31 ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ......................... 57 ANNEX 3. PROGRAM EXPENDITURE SUMMARY ................................................................... 59 ANNEX 4. BORROWER’S COMMENTS ................................................................................... 60 ANNEX 5. SUPPORTING DOCUMENTS .................................................................................. 62 ANNEX 6. MAP .................................................................................................................... 63 ANNEX 7. CHANGES IN PROGRAM ACTION PLAN (PAP) ........................................................ 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) DATA SHEET BASIC INFORMATION Product Information Program ID Program Name Financing Instrument IN Maharashtra Rural Water Supply and P126325 Program-for-Results Financing Sanitation Program Country IPF Component India No Organizations Borrower Implementing Agency India Water Supply and Sanitation Department Program Development Objective (PDO) Original PDO 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. Page 1 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) FINANCING FINANCE_TBL Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) World Bank Administered Financing 165,000,000 96,158,977 80,622,721 IDA-53750 Total 165,000,000 96,158,977 80,622,721 Non-World Bank Administered Financing Borrower/Recipient 70,000,000 70,000,000 24,210,000 Local Communities 0 0 0 Local Govts. (Prov., District, 0 0 0 City) of Borrowing Country Total 70,000,000 70,000,000 24,210,000 Total Program Cost 235,000,000 166,158,977 104,832,721 KEY DATES Program Approval Effectiveness MTR Review Original Closing Actual Closing P126325 12-Mar-2014 25-Aug-2014 06-Mar-2017 31-Mar-2020 30-Sep-2020 RESTRUCTURING AND/OR ADDITIONAL FINANCING Date(s) Amount Disbursed (US$M) Key Revisions 14-Jan-2019 31.32 Change in Program Scope Reallocation between and/or Change in DLI Change in Program Action Plan 18-Mar-2020 61.28 Cancellation of Financing Reallocation between and/or Change in DLI 30-Mar-2020 61.28 Change in Loan Closing Date(s) 30-Jun-2020 67.00 Cancellation of Financing Reallocation between and/or Change in DLI 30-Sep-2020 72.18 Cancellation of Financing Reallocation between and/or Change in DLI Page 2 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) KEY RATINGS Outcome Bank Performance M&E Quality Moderately Satisfactory Satisfactory Substantial RATINGS OF PROGRAM PERFORMANCE IN ISRs Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 23-Jun-2014 Satisfactory Satisfactory 0 02 10-Nov-2014 Satisfactory Satisfactory 0 03 22-Jun-2015 Satisfactory Satisfactory 0 04 30-Dec-2015 Satisfactory Satisfactory 0 05 23-Jun-2016 Satisfactory Satisfactory 6.29 06 23-Sep-2016 Moderately Satisfactory Moderately Satisfactory 6.29 07 11-Jun-2017 Moderately Satisfactory Moderately Satisfactory 11.55 08 21-May-2018 Moderately Satisfactory Moderately Unsatisfactory 31.32 09 13-Dec-2018 Moderately Satisfactory Moderately Unsatisfactory 31.32 Moderately 10 14-Jun-2019 Moderately Unsatisfactory 36.45 Unsatisfactory Moderately 11 13-Sep-2019 Moderately Unsatisfactory 56.29 Unsatisfactory Moderately 12 11-Jun-2020 Moderately Unsatisfactory 67.00 Unsatisfactory 13 24-Sep-2020 Moderately Satisfactory Moderately Satisfactory 72.18 14 02-Feb-2021 Moderately Satisfactory Moderately Satisfactory 72.18 15 19-Apr-2021 Moderately Satisfactory Moderately Satisfactory 80.62 Page 3 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) SECTORS AND THEMES Sectors Major Sector/Sector (%) Water, Sanitation and Waste Management 100 Sanitation 20 Water Supply 75 Public Administration - Water, Sanitation and Waste 5 Management Themes Major Theme/ Theme (Level 2)/ Theme (Level 3) (%) Finance 2 Finance for Development 2 Agriculture Finance 2 Urban and Rural Development 89 Rural Development 89 Rural Markets 2 Rural Infrastructure and service delivery 87 Environment and Natural Resource Management 10 Water Resource Management 10 Water Institutions, Policies and Reform 10 ADM STAFF Role At Approval At ICR Regional Vice President: Philippe H. Le Houerou Hartwig Schafer Country Director: Onno Ruhl Junaid Kamal Ahmad Director: John Henry Stein John A. Roome Practice Manager: Ming Zhang Michael Haney Raghava Neti, Mariappa Task Team Leader(s): Raghava Neti Kullappa ICR Contributing Author: Arun Kumar Dobhal Page 4 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) Page 5 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) I. PROGRAM CONTEXT AND DEVELOPMENT OBJECTIVES A. CONTEXT AT APPRAISAL AND THEORY OF CHANGE Context 1. India emerged as one of the fastest growing economies in the first decade of this century, averaging a yearly growth rate of 8.3 percent. However, the growth rate slipped to a low of 5 percent in 2012–13. India’s 12th Five-Year Plan (2012–17) called for major investments in infrastructure, including water and sanitation, to address the health and economic well-being of the people, especially in the rural areas. The economic impact of inadequate sanitation in India was estimated at about INR 2.44 trillion annually in 2006 (US$53.8 billion at the time), equivalent to 6.4 percent of India’s gross domestic product (GDP).1 According to the 2011 census of India (the last available census), of India’s 1.2 billion people, around 70 percent lived in rural India and generated about 40 percent of the country’s GDP. Improving access to water and sanitation services was, therefore, high on India’s development agenda. 2. The World Bank supported the development of the rural water supply and sanitation (RWSS) sector in Maharashtra for over two decades, starting in the early 1990s. The first project, the Maharashtra Water Supply and Environmental Sanitation Project (US$110 million, 1991–98, P010369), focused on improving access to RWSS and on helping the state articulate a role for beneficiary communities in the sustainable operation of RWSS systems. The second project, the Maharashtra Rural Water Supply and Sanitation Project (Jalswarajya I) (US$180 million, 2003–09, P073369), while focusing on increasing RWSS access, was also instrumental in strengthening decentralization and demand- responsive approaches in the sector. 3. The Maharashtra Rural Water Supply and Sanitation Program (Jalswarajya II Program) was conceived in the context of two national RWSS flagship programs of the Government of India (GoI): the National Rural Drinking Water Program (NRDWP) for water supply and the Clean India Campaign (Nirmal Bharat Abhiyan, NBA) for sanitation. When launched in 2009, the NRDWP had the objective of “providing safe and adequate drinking water in rural areas for all on a sustainable basis”. Launched in 2012, the NBA was the GoI’s community-led sanitation program for improving access to toilet facilities in rural areas. 4. At Program appraisal in 2013, the GoI envisaged major changes in the ongoing NRDWP: higher levels of service delivery; improved planning, ownership, sustainability, engagement of communities, and decisions made at the lowest level possible; and strengthened convergence between drinking water and sanitation to address water quality concerns. The NRDWP guidelines were updated in 2013 to include piped water supply with a focus on increasing household tap connections. The GOI was also in the process of transforming the NBA. In September 2014, the Prime Minister of India launched the national flagship ‘Swachh Bharat Mission’ (Clean India Mission), an ambitious, time-bound mission to achieve universal sanitation coverage, improve cleanliness, and eliminate open defecation in India by October 2019 (the 150th anniversary of the birth of Mahatma Gandhi). The mission targeted both rural and urban India and was called ‘Swachh Bharat Mission Gramin’ (SBMG) for rural areas. 5. As highlighted during appraisal, Maharashtra’s RWSS sector faced the challenge of improving quality of services. While the state reported rural water supply coverage of 87 percent, household connections were less than 30 percent and supply remained unreliable and marked by water quality 1 Water and Sanitation Program. 2007. The Economic Impacts of Inadequate Sanitation in India. Water and Sanitation Program/World Bank, Delhi. Page 6 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) problems.2 Every year, an estimated 3–5 percent ‘fully covered’ habitations slipped back to ‘partially covered’ or ‘not covered’ status.3 The state also faced the challenge of ensuring drinking water security in the face of increasing droughts and climate change impacts on rainfall patterns and the yield of existing water sources. While Maharashtra led the country in the number of Gram Panchayats (GPs) with open defecation free (ODF) status, more than half of the rural population (56 percent) still practiced open defecation.4 6. In 2012, the Government of Maharashtra (GoM) launched its ten-year RWSS program (2012– 22) in line with the national RWSS goals and the constitutional mandate of strengthening devolution.5 The overall objective of the GoM’s RWSS program was to increase access to safe drinking water and sanitation services to rural communities at an affordable cost and in an environmentally sustainable manner. The GoM aimed to improve planning, monitoring of quality of services, and sustainability and to strengthen institutional capacity to address the challenges of ensuring constant improvements in RWSS service levels and sustained behavior change in sanitation. The state was also grappling with droughts, declining groundwater levels, and contamination resulting in chronic water shortages during summer and deficit rainfall years. Under the Jalswarajya II Program that was supported by this Bank operation, the GoM prioritized improvement of RWSS coverage in water-stressed and water-quality-affected habitations and in peri-urban areas (technically classified as rural but with many attributes of an urban settlement). 7. The Program was consistent with the World Bank’s Country Partnership Strategy (CPS) for 2013– 17, aligned to the ‘Transformation’ engagement area, and contributed to Outcome 2.3 ‘improved access to water supply and sanitation services’.6 The CPS highlighted the Program as a means to improve service delivery while focusing on strengthening governance and institutional arrangements for RWSS services. Rationale for PforR Support and Program Scope and Boundaries 8. The Maharashtra Rural Water Supply and Sanitation Program (the Program) was designed to support the GoM’s 10-year RWSS program (2012–22). The overarching RWSS program had a total resource commitment of US$ 3.55 billion, consisting of the Maharashtra’s part of the national NBA and NRDWP programs. The Program was a sub-part of this larger GoM program with an original budget of $235 million (about 7% of the total $3.55bn program), with World Bank financing of US$165 million and GoM financing of US$70 million. 9. The World Bank’s Program-for-Results (PforR) lending instrument was well aligned with the needs of Maharashtra’s RWSS program. The PforR enabled the Bank to support and incentivize key aspects of the overarching GoM program. The PforR Program boundaries were defined by the six-year implementation period (2014-20) as well as sectoral and administrative-geographic criteria. Notably, the PforR was designed to support the GoI’s and GoM’s objectives of strengthening planning, implementation and monitoring capacity of its RWSS program, a focus on community-driven, demand-responsive approaches in “about 12 districts” and improving services in peri-urban zones and in water-stressed and water-quality-affected areas. 2 Program Manual - Jalswarajya II, out 100,712 habitations 87,132 were covered with 40 liters per capita per day (lpcd) supply. 3 According to the Gol guidelines, a habitation is considered 'fully covered' if it has access to a safe water source which is able to yield a minimum of 40 lpcd, and each household is located within a distance of 500 m from either a public or a community source, or 30 minutes for fetching water. A 'partially covered' habitation has access to a water source which does not meet the 'fully covered' criteria. A habitation is considered 'not covered' if it does not have access to a safe water source. 4 According to the 73rd Constitutional Amendment of India, 1992, Gram Panchayat is the democratically elected body at the village level. 5 The GoM transferred 18 of the 29 subjects to be transferred to rural local governments according to the 73rd Constitutional Amendment of India. Water supply and sanitation is one of the subjects that was fully transferred by the GoM to local governments. 6 India Country Partnership Strategy (CPS) for FY13–FY17 - Report No. 76176-IN, dated March 21, 2013. Page 7 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) 10. The Program was the first in India to make use of the PforR instrument. As a front-runner in the RWSS sector reforms, a mature client of the World Bank, and an economically advanced state, Maharashtra was well placed to pioneer the PforR instrument in India. The Jalswarajya II Program design drew on the lessons of the earlier two World-Bank-supported projects.7 The Program was developed to support the GoM’s program for strengthening planning and monitoring in the RWSS sector, strengthening capacity for program implementation and sustainability, and improving sustainable water and sanitation services in water-scarce and water-quality-affected areas. Theory of Change (Results Chain) 11. In keeping with the standards prevailing at the time, the Project Appraisal Document (PAD) did not explicitly describe a theory of change; however, a results chain can be derived from the Program Description and Results Framework, as summarized in this section and Figure 1. Figure 1. Program Theory of Change Note: GSDA = Groundwater Surveys and Development Agency; HC = Household Connections ;M&E = Monitoring and Evaluation; MEETRA = Maharashtra Environmental Engineering Training and Research Academy; PDO = Program Development Objective; WQM&S = Water Quality Management and Surveillance. 12. The Program responded to the challenges of the RWSS sector in Maharashtra, namely, the need for improved sector planning and institutional capacity and improved access to water and sanitation. The Program outcomes were grouped into four results areas: (a) strengthened planning and monitoring in the sector, (b) improved institutional capacity for program implementation, (c) improved access to good 7 Jalswarajya means ‘self-governance in water’. Page 8 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) quality and sustainable water and sanitation services in peri-urban villages, and (d) improved access to safe drinking water in water-stressed and water-quality-affected areas. While the first two results areas contributed to state-level outcomes and focused on institutional development, particularly the state’s capacity to monitor results, the latter two results areas focused on improving water supply service delivery and scaling up sustainable groundwater management practices in the selected districts of the state. Figure 1 above shows the implicit Program theory of change. 13. As a PforR operation, the Program included the results-based verification of the disbursement- linked indicators (DLIs) and disbursement process, a Program Action Plan (PAP), and activities for implementation support.8,9 The DLIs were selected based (a) whether they represented critical actions along the results chain; (b) perceived need to introduce a financial incentive to deliver the activity; (c) feasibility of verification; and (d) the GoM’s capacity to achieve the DLI during the implementation period. 14. The key assumptions underlying the implied theory of change were that (a) the sector-wide M&E system will improve the GoM’s ability to monitor progress and performance of the RWSS sector on a dynamic basis; (b) rural communities will be engaged in the decision-making of the district annual RWSS planning process; (c) the strengthened capacity of the key sector institutions will improve the service delivery and sustainability of the RWSS investments at the speed and scale required; (d) the key implementing agencies will have the required capacity to implement the water supply and sanitation construction activities; and (e) the GoM will retain its overall commitment to result-based approaches. Program Development Objectives (PDOs) 15. The PDO as stated in the PAD and Financing Agreement was “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.” The PDO did not change during implementation. Key Expected Outcomes and Outcome Indicators 16. The PDO thus comprises three outcomes: (A) improve the performance of Maharashtra’s sector institutions in planning, implementation, and monitoring of its Rural Water Supply and Sanitation Program; (B) improve access to quality and sustainable services in peri-urban villages, and (C) improve access to quality and sustainable services in water-stressed and water-quality-affected areas. 17. The Program originally included four PDO outcome indicators: a. PDO Indicator 1: Number of districts using improved planning processes and strengthened M&E systems b. PDO Indicator 2: Percentage of completed rural water supply (RWS) schemes that followed GoM’s demand-responsive approach and exited the implementation process with a schedule performance index of between 0.75 and 1.25. c. PDO Indicator 3: Number of people in peri-urban villages who are connected to a sustainable water supply system and receive a regular water service. d. PDO Indicator 4: Number of people in water-stressed and water-quality-affected areas who have access to a safe drinking water source. 8 At appraisal, there were five DLIs. At the midterm review (MTR), these were revised and the disbursement-linked results (DLRs) were included. 9 At appraisal, the PAP included 12 actions (detailed in the PAD). This number was revised to nine at the MTR. Page 9 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) Program Results Areas and DLIs 18. The Program originally included five DLIs in four results areas. 19. Results Area 1 – Strengthened Sector Planning and Monitoring: This results area included DLI 1: “Strengthened M&E system for the sector”. As defined in the PAD, a Strengthened M&E system should be able to capture and analyze, a minimum set of indicators on: (i) sector performance including the design and technical considerations for water supply schemes and sanitation services; (ii) fiduciary performance including budget, funds flow and procurement aspects; and (iii) project/contract management including schedule and cost performance of RWS schemes. 20. Results Area 2 – Improved Capacity for Program Implementation: This included DLI 2: “Strengthened capacity of Maharashtra’s Key Sector Institutions”. The strengthened capacity is to be judged based on the WSSD achievement of staffing levels in its key sector institutions for each fiscal year and preparation and implementation of an Annual Capacity Development Plan. 21. Results Area 3 – Improved Access to Quality and Sustainable Water and Sanitation services in Peri-Urban Villages: Two DLIs were grouped under this results area. DLI 3: “Number of house connections to a Commissioned Water Supply System”. A commissioned water supply system is one which is physically verified and certified by the responsible engineering officer; and DLI 4: “Number of house connections to a Sustainable Water Supply System receiving a Regular Water Service”. A house water connection is eligible to count towards the physical targets if the connection is made to a sustainable water supply system with regular water service and minimum water quality standards.10 22. Results Area 4 – Improved Access to Safe Drinking Water in Water-stressed and Water-Quality- affected areas: This results area included DLI 5: “Number of Community Safe and Secure Water Systems”.11 B. SIGNIFICANT CHANGES DURING IMPLEMENTATION 23. The Program underwent five Level 2 restructurings. The first restructuring on January 14, 2019 changed the Program scope, including changes to the results framework, DLIs and associated allocations as well as the Program Action Plan (PAP) as described in this section. Subsequently, loan cancellations of SDR 21,715,763 (US$30 million) on March 18, 2020, SDR 16,716,112 (US$22.92 million) on June 30, 2020, and SDR 4,263,544 (US$6.0 million) on September 30, 2020, were carried out on request of the borrower, and the loan closing date was extended by six months to September 30, 2020. Revised PDOs Outcome Targets, Results Areas, and DLIs 24. The PDO did not change during the program period. However, the PDO indicators were revised and key targets adjusted downwards at first restructuring, as summarized in Table 1 below: 10 As per the PAD, Sustainable water supply systems: (i) are those which are being operated under a formal management model; (ii) have 100% household meters installed; and (ii) have a net revenue from water tariffs and/or GoM subsidies that is sufficient to cover at least the O&M costs of the system. Regular water service means continuity of water supply meeting minimum water quality standard for at least 8 hours per day at a minimum pressure of 7.0 m at predetermined points in the distribution network for no less than 300 days in a year, unless the service area is declared a drought affected zone. Minimum water quality standard means the water quality complies with GoM's water quality standards 11 As per the PAD, a Community Safe and Secure Water System (CSSWS) is a single village water supply system that: (a) is located in an area that is categorized as water- stressed or water- quality- affected, in accordance with established GoM criteria; (b) delivers potable drinking water that complies with GoM's minimum water quality standards; (c) provides a minimum quantity of safe drinking water as per GoM/Gol norms for water-stressed and water-quality affected areas; (d) was implemented in line with GoM's demand-responsive approach; (e) A formal management model decided by the GP is functioning as per the O&M guidelines established by WSSD. Page 10 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) Table 1. Change in PDO Indicators (PDOIs) Pre-Restructuring Post-Restructuring Justification and Change in Targets PDOI1 Number of districts using improved New Number of districts using Original indicator split in two to planning processes and PDOI1 strengthened M&E systems. facilitate measurement. M&E target strengthened M&E systems New Number of districts using reduced from 33 to 30; planning PDOI2 improved planning processes target reduced from 33 to six. PDOI2 Percentage of completed rural New Percentage of sanctioned Indicator narrowed to piped water supply schemes that followed PDOI3 piped RWS systems that systems only (excluding non-piped GoM’s demand-responsive followed GoM’s demand- systems) and reference to SPI approach and exited the responsive approach dropped to reduce complexity. implementation process with a Target of revised narrow indicator schedule performance index (SPI) of raised from 30 to 60 percent. between 0.75 and 1.25. PDOI3 Number of people in peri-urban New Number of people provided Original indicators merged into a villages who are connected to a PDOI4 with access to improved single World Bank Core Sector sustainable water supply system water sources. Indicator with an overall target of and receive a regular water service. 385,000 as opposed to a peri-urban PDOI4 Number of people in water-stressed target of 340,000 and water- and water-quality-affected areas stressed and water-quality affected who have access to a safe drinking target of 471,000. water source. 25. The Intermediate Results Indicators (IRI) were adjusted in line with changes in the PDOs. Out of the 11 original IRIs, two were dropped: IRI 2 on ‘improved planning process for the sector’ as this was measured by the new PDO Indicator 2 and IRI 4 on ‘systems following demand-responsive approaches’ now measured by PDO Indicator 3. A new IRI (IRI 6) was introduced to measure GPs meeting service delivery standards (in view of the introduction of the new DLR 4b, see below). For other IRIs, targets and definitions were changed as required. Details are given in Annex 1A. 26. The first restructuring also amended selected DLIs, introduced detailed Disbursement Linked Results (DLRs) as intermediate milestones, and changed associated funding allocations. Specifically: 27. Results Area 1 – Strengthened Sector Planning and Monitoring: DLI 1 “Strengthened M&E system for the sector” was retained with the following DLRs added: • DLR 1a: WSSD has identified sector-wide needs and formulated an M&E Plan for developing a Strengthened M&E System which can be implemented across Maharashtra. • DLR 1b: WSSD has designed and tested the Strengthened M&E System. • DLR 1c: WSSD has fully implemented the Strengthened M&E System in at least ten districts. • DLR 1d: WSSD has fully implemented the Strengthened M&E System in at least twenty additional districts • DLR 1e: WSSD has carried out a review of the implementation of the Strengthened M&E System and identified required changes and future needs. 28. Results Area 2 – Improved Capacity for Program Implementation: DLI 2 underwent a minor rewording to “Strengthened capacity of Maharashtra’s Key Sector Institutions” with the definition given as “In each Fiscal Year, WSSD achieves staffing levels in its Key Sector Institutions at an average level of up to 75% of Sanctioned Positions and trains and equips the staff in the Sanctioned Positions of these Key Sector Institutions as per its Annual Capacity Development Plan. “ Page 11 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) 29. Results Area 3: Improved access to quality and sustainable Water and Sanitation services in Peri- Urban villages/Gram Panchayats: While retaining the original focus on service delivery and its sustainability, the restructuring relabeled DLIs 3 and 4, adding intermediate milestones such as the award of contracts, the commissioning of systems, and the adoption of a domestic metering policy. Specifically, DLI 3 was revised to “Commissioned Peri-Urban (PU) Water Supply Systems” with four DLRs added: • DLR 3a: Domestic Metering Policy Adopted. • DLR 3b: Cumulative total of 46 PU Water Supply Systems for which Work Contracts have been signed • DLR 3c: Cumulative total of 46 PU Commissioned Water Supply Systems. • DLR 3d: Cumulative total of 68,095 house connections to a Commissioned PU Water Supply System. 30. DLI 4 was changed to “Service Delivery in Peri-Urban (PU) Water Supply Systems” with the following DLRs added: • DLR 4a: Cumulative total of 46 PU Water Supply Systems with a Suitable O&M Model adopted. • DLR 4b: Cumulative total of 46 PU Gram Panchayats meeting Service Delivery Standards.12 31. Results Area 4 – Improved access to safe drinking water in water-stressed and water-quality- affected areas: The DLI 5 was retained as “DLI 5: Number of Community Safe and Secure Water System”, but the target was reduced from 580 to 214 to reflect actual demand based on the selection criteria.13 Other Changes 32. Changes in DLI verification protocol. The verification protocol in the Program manual was updated to reflect the verification requirements for the DLIs including revised definitions. 33. Change in key parameters (disbursement arrangements, institutional arrangements, technical, fiduciary, environmental, and social). Disbursement amounts allocated to each DLI were revised to account for the funds already disbursed and reassigned to the revised DLIs. The revised allocations to the DLIs were made by considering the significance of the results in the overall Program, the current field progress, and the realistic target achievement. Based on the revised mandate at the state level, it was decided that the GSDA would administer and manage the water quality laboratories instead of the PHD. 34. Change in Program scope. During Program implementation, water quality testing laboratories previously under the PHD were brought under the authority of the WSSD by the GoM. The GSDA under the WSSD was mandated to manage these laboratories. This was a major reform to improve the WSSD’s ability to manage state-wide water quality surveillance and control. Strengthening of these laboratories through repair/construction of new buildings, procurement and installation of necessary equipment, and mobilizing of manpower became part of the WSSD’s activities and was included under (a) the GSDA strengthening and (b) strengthening of water testing laboratories. The number of AWMIs were reduced by half to 12 for implementation by the GSDA. These specific changes did not affect the PDO, Theory of Change, the PDO and IR indicators and the DLIs. 12 “Regular water service” was revised for ease of measurement to “Meeting service delivery standards ; which means that (a) the GP’s systems are being operated under a suitable O&M model; (b) at least daily water supply is provided; (c) a minimum of 70 lpcd is provided based on bulk water measurement; (d) water quality is meeting the GoM standards; and (e) disruptions, if any, are not more than 20 % of days in any month. 13 As highlighted in the Borrower’s Completion Report, this number was reduced because (a) many villages did not comply with all criteria (for example, the tanker-fed criteria), (b) there was no demand as villagers demanded a higher level of service than what was proposed under the Program (for example, piped water supply), (c) there was limited technical feasibility, or (d) habitations were already serviced through other programs of the GoM. Page 12 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) 35. Change in PAP. The PAP was adjusted in line with the first restructuring (see Annex 7 for details). 36. Following the closure of the project, SDR 7,000,391.95 of undisbursed balance were cancelled with a value date of March 31, 2021. Rationale for Changes and their Implication for the Original Theory of Change 37. At the time of the mid-term review (MTR) in March 2017, disbursements were only about 8 percent of the credit amount, underlining the need for changes to boost implementation. The low disbursement performance was due to (a) challenges of capturing data for some of the indicators due to the delayed roll-out of the M&E system and complex indicator definitions; (b) delays in the identification and selection of peri-urban villages, and low capacity of the DWSM to deliver design reports of good quality for peri- urban schemes; (c) implementation challenges of peri-urban schemes; and (d) less demand for schemes for water-stressed and water-quality-affected habitations than originally planned. The disbursement level was further constrained by the relative backloading of the DLIs, particularly for the three infrastructure- related DLIs 3, 4, and 5. The definitions and targets of some of the results indicators were also found to be complicated, unrealistic, repetitive, and not fully aligned with the World Bank’s Core Sector Indicators. To address these issues, a restructuring was agreed during the MTR with the aim of changing the Results Framework, DLIs, and PAP to facilitate implementation and disbursements, and to align the Program with a better understanding of the reality of the client’s absorptive capacity. 38. The first restructuring was only processed in January 2019, primarily due to a delay in the submission of the final proposal by the WSSD to the Department of Economic Affairs (DEA), GoI, and the delayed submission of the Statutory Audit Report for 2016–17 from the WSSD, which was only received on December 12, 2018. As noted above, the second, fourth and fifth restructurings carried out partial cancellations of the credit to reflect exchange rate fluctuations and cost savings. The third restructuring in March 2020, which extending the closing date by six months to September 30, 2020, was carried out in anticipation of a potential further extension of the Program to enable the GoI to determine its priorities, including possible reallocations to support the response to the coronavirus disease (COVID-19) crisis which had been declared a pandemic earlier that month. II. OUTCOME A. RELEVANCE Relevance of PDO 39. Relevance of PDO: High. The Program remains highly relevant to the strategic RWSS objectives of the GoI and GoM. In August 2019, the GoI transformed the ongoing NRDWP into the Jal Jeevan Mission (JJM), a high-profile national program with the objective of providing safe and adequate drinking water through individual functional household tap connections (FHTCs) to all households in rural India by 2024, through decentralized community-led approaches.14 The JJM is also implementing source sustainability measures as mandatory elements of the program. The PforR and the GoM’s 10-year RWSS program (2012–22) thus remain fully aligned with the national RWSS vision under JJM with its focus on increasing household connection coverage and sustainable RWSS service delivery. 14 According to JJM guidelines (2019), an FHTC is a household tap connection providing drinking water in adequate quantity of prescribed quality on a regular basis Page 13 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) 40. The GoI national flagship Swachh Bharat Mission, launched in 2014, had the objective of making India open defecation free by October 2019. Under the SBMG, rural Maharashtra, in April 2019, and rural India, in October 2019, were declared ODF. The MoJS has since launched SBMG-Phase II to implement “ODF Plus” interventions for reinforcing the ODF behaviors and focus on interventions for safe management of solid and liquid waste in villages. From the perspective of the current objectives of the GoI and GoM for the RWSS sector, this Program’s experience was instrumental in helping the state to learn and replicate good practices related to sustainable RWSS service delivery and establish a comprehensive and efficient sector M&E system. It is expected that the implementation of the JJM and SBMG-Phase II will benefit from the experiences of this Program. 41. The Program also remains highly relevant to the World Bank’s India Country Partnership Framework (CPF).15 The current India CPF for FY18–FY22 has a focus on investing in human capital (Focus Area 3) which aims to increase access to improved rural water supply and sanitation services’ (Objective 3.3). The CPF also envisages to “strengthen the capacity of state and local institutions for efficient and sustainable water and sanitation service delivery,” which has been the key objective of the Program. The CPF, while focusing on the World Bank’s catalytic ‘How’ approach for ‘Engaging a Federal India’, emphasizes that the World Bank will also continue to support the GoI’s ‘Finance Plus’ approach to targeting investments that contribute to institutional development and innovation, including in higher- income and higher-performing states. The Program thus remains fully aligned with the current CPF. Relevance of DLIs 42. Assessment of the relevance of DLIs: Substantial. The DLIs were directly linked to the achievement of the PDO and were generally well-designed to facilitate Program objectives. The first restructuring corrected initial shortcomings (e.g. complex definitions; relative backloading of infrastructure related DLIs) to keep the DLIs relevant and aligned with the results framework. Specifically: • DLI 1 with its DLRs contributed to the development of a strengthened M&E system for the RWSS sector for Maharashtra and progressively tested the strengthened M&E system in select districts and set the stage for state-wide replication under the JJM. • The design of DLI 2 incentivized the state to have adequately trained staff to deliver the Program objectives and contribute toward strengthening the capacity of the GoM’s key sector institutions, resulting in improved planning processes in select districts. • DLIs 3 and 4 with their DLRs contributed to the improved access to RWSS services in peri- urban areas with household connections following a demand-responsive approach and sustainability of the service delivery of the commissioned RWSS services. These also helped the state in developing a domestic metering policy, service delivery standards, and innovative models such as solar pumping systems and automation, for service delivery in peri-urban areas. • DLI 5 incentivized the state in improved access to safe drinking water in water-scarce and water- quality-affected areas. 15 CPF for India, FY18–FY22 (Report No. 126667-IN). Page 14 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) Rating of Overall Relevance 43. The overall Program relevance is rated High. The Program PDO remained highly relevant throughout the Program period and aligned with the GoI’s, GoM’s, and World Bank’s strategic objectives in the RWSS sector. Initial shortcomings in the DLIs were corrected to keep the DLIs aligned and relevant. Overall, the Program relevance is thus rated High. B. ACHIEVEMENT OF PDOs (EFFICACY) Assessment of Achievement of Each Objective or Outcome 44. Achievement of the three outcomes comprising the PDO statement is assessed on the basis of the results against the PDO indicators and supported by an evaluation of the achievement of DLIs and the PAP. As one of the objectives of the PforR operation was to strengthen the GoM’s capacity, compliance with the PAP and DLIs achievement relating to institutional capacity, systems, and procedures were reviewed for the assessment of institutional outcome PDO (A). For service delivery-related outcomes PDOs (B) and (C), the assessment is based on the achievement of the PDO indicators and DLIs. Details of the updated compliance with the PAP at the time of Program closure are in Annex 1C. A split rating is carried out as the first restructuring significantly revised key outcome targets (see Section I.B). Outcome (A): Improve the performance of Maharashtra’s sector institutions in planning, implementation, and monitoring of its Rural Water Supply and Sanitation Program 45. Achievement of PDO Part (A): Modest (Pre-restructuring), Substantial (Post-restructuring). Objectives relating to Maharashtra’s M&E system were only marginally revised and thus both pre- and post-restructuring PDO targets relating to RWSS monitoring were fully achieved (New PDOI 1; first part of original PDOI1), though challenges remain in terms of the GRM system (see below). Similarly, a number of other key indicators of implementation capacity were not revised and almost achieved (DLI 2 / New IRI 2) or exceeded (New IRI 4). However, pre- and post-restructuring objectives and associated achievements diverge significantly in terms of improved planning and demand-responsive implementation. 46. Notably only 12 percent of the original planning process target were met, as compared to partial achievement of at least 67 percent of the post-restructuring goal. Similarly, while the revised target of demand- responsive planning for piped-rural water systems was exceeded, the broader pre-restructuring objective that included non-piped schemes and ambitious performance-index (SPI) goals, was barely achieved, with shortfalls in tracking of SPI outcomes. Overall, thus, Outcomes under PDO Part (A) were Modest in terms of pre- restructuring objectives. However, post-restructuring, outcomes against revised objectives were Substantial. The Program almost fully achieved the revised objectives, with only some remaining gaps in terms of improved planning outcomes (PDOI2), implementation capacity (DLI2/New IRI 2) and the integration of the Program M&E with existing GoI monitoring systems (see below). Table 2 summarizes outcomes against key indicators, and subsequent paragraphs detail the Program’s contributions. Page 15 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) Table 2. Outcome (A) Achievements Indicator Name Original Revised Actual % of original % of revised Indicator / DLI Targets Targets Achieved Targets Met Targets Met No. Number of districts using 33 30 34 103% 113% New PDOI 1; strengthened M&E systems DLI 1 Number of districts using improved 33 6 4 12% 67% New PDOI 2 planning processes Percentage of sanctioned piped rural 30 60 100 n/a (SPI aspect of 167% New PDOI 3 water supply systems that followed original PDOI not GoM’s demand-responsive approach fully tracked) Strengthened capacity of GoM’s key 75 75 67 16 89% 89% DLI2, New IRI 2 sector institutions (percentage) (=original IRI 3) Percentage of GPs that maintain ODF 40 40 93.2 17 233% 233% New IRI 4 status (=original IRI 5) 47. PDO Indicator 1: Number of districts using strengthened M&E system. The sector-wide improved M&E system was rolled out across the state in September 2019. The M&E system was in use in all the 34 districts of the state at the close of the Program in September 2020. The system is now live, and the dashboard and the reports generated are available on the WSSD’s online platform with the URL https://www.watsan.maharashtra.gov.in/. The Program supported the conceptualization, development, and implementation of the sector-wide M&E system in line with the Program design. The WSSD ensured data validation based on the online verification with districts and reports from the Deputy Chief Executive Officers (Water and Sanitation). The IVA reviewed the necessary documents and evidence provided by WSSD and carried out field visits to confirm reported results according to the agreed verification protocol for DLI 1. 48. The M&E system integrated a grievance redress mechanism (GRM) module to comply with PAP 1 requirements on strengthening complaint and grievance redress mechanisms within the WSSD, and a financial module toward PAP 8 compliance on reporting information on expenditure. However, challenges remained in terms of quality of data entry and outputs, regular use of the system to make decisions, and integration with the national IMIS.18 The WSSD intends to address these gaps beyond the Program period and has established an M&E supervision effort at the state and district levels for this purpose.19 Three positions created under the Program (IT expert, M&E expert, and MIS expert) were transferred to the WSSO. The M&E system has been handed over to the WSSO. 49. PDO Indicator 2: Number of districts using improved planning processes. The district planning process was strengthened in select districts, with annual district plans prepared for four districts.20 The WSSD successfully partnered with MIT to develop digital tools and a strengthened district annual planning process. The planning platform was built on data collected from villages, mapping conditions on a GIS platform, and identifying the most needy villages for different interventions. This entailed a detailed community-wide consultative process. Support organizations hired by the DWSM Cell supported the GPs on social mobilization and community consultations for the planning process. However, the full benefits will be achieved only after the prepared plans and approaches are consistently used for decision-making. This 16 According to the annual staff retention achievement in the last year of the Program and according to independent verification agent (IVA) verification. 17 The actual result is based on the National Annual Rural Sanitation Survey (NARSS), Round 3 for Maharashtra in 2019, conducted under the other World Bank-supported Program—Swachh Bharat Mission Support Operation (SBMSO). The NARSS has an indicator DLI 2 ’Sustaining ODF in villages’, which measures the rural population living in ODF verified villages. This indicator has been taken as the proxy for IRI 4. 18 IMIS = Integrated Management Information System of the Department of Drinking Water and Sanitation, MoJS, GoI. 19 Government Resolution of the GoM dated August 14, 2019. 20 Pune, Raigad, Satara, and Bhandara. Page 16 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) has not yet happened as the JJM was already launched and the GoI wanted quick preparation of water supply investments under the JJM, thus limiting the application of the Program’s elaborate district planning approach. 50. The Program has helped mobilize staff and build their capacity within the key sector institutions making critical contributions to achieving and sustaining improved water and sanitation outcomes. The Program helped create a new Deputy CEO position for the DWSM Cell and through a Government Resolution identified and mobilized 2,357 staff for the State’s decentralized sector institutions through a mix of the WSSD’s own staff, staff on deputation from other departments, and staff contracted from the market.21 The DWSM Cell was instrumental in achieving the ODF status in the state, establishing an effective water quality monitoring system, and adopting a sector-wide M&E system. It thus also facilitated compliance with PAP 4 on strengthening institutions toward ODF sustainability. In compliance with PAP 5 on HR policy for the sector, the WSSD also reviewed all the existing government rules and regulations that govern HR management and adopted good practices to attract, train and retain required HR skills. 51. The annual staff retention achievement, as verified by IVA for DLI 2, was at the required level of 75 percent for the first three years.22 This was at somewhat reduced level in subsequent years as the state became ODF in 2019 and because of a freeze on regular recruitments in the sector by the GoM. Some of the key positions under the key sector institutions, including the Deputy CEO, are continuing beyond the Program period, with the GoM having issued the relevant Government Resolution. 52. A comprehensive capacity-building needs assessment of the water and sanitation sector in Maharashtra was carried out. Based on this assessment, 40 standard training modules were developed, on a wide range of subjects from procurement and financial management to communications, M&E and technical sector skills. Annual capacity-building plans were prepared and implemented by MEETRA. Trainings were also regularly carried out by the RSPMU and WSSO for officers and staff at the state, ZP, block, and GP levels. This comprehensive capacity-building program strengthened the sector at different levels and improved the efficiency of the various stakeholders for the delivery of the Program objectives. 53. PDO Indicator 3 (Revised): Percentage of sanctioned piped rural water supply systems that followed GoM’s demand responsive approach. The Program helped measure adoption of demand- responsive approaches by assessing key sub-indicators, including on GP-level participatory Gram Sabha resolutions and approvals and creation of VWSCs as per GoM guidelines, including adequate representation of women. The WSSD carried out a survey in 2018 and confirmed that demand responsive approaches were followed across the state. The WSSD plans to continue monitoring these approaches. The training of staff mobilized within key sector institutions also helped strengthen the demand-responsive approaches. 54. The Program also contributed substantially to building institutional capacity for water quality and groundwater monitoring, although these results were not included in the Results Framework. Overall, the GSDA has strengthened 182 water quality laboratories across the state, of which six district laboratories have received the National Accreditation Board for Testing & Calibration Laboratories (NABL) accreditation. This is the first time in the country that NABL accreditation has been given on this scale. Water sample testing more than doubled from 348,000 to 744,200 over the Program period. As a result of improved testing and follow-up, as well as the State attaining ODF status, the bacteriological contamination in the tested samples decreased from 12 percent in 2016–17 to 8 percent in 2019–20. 21 Out of these, 40 positions were in the WSSO, 893 positions were at the district level, 1,250 positions were at the block level, and 174 positions were earmarked for village coordinators. The last positions were not used as the Gram panchayat committees and block-level staff supported the GPs well. 22 Staff levels maintained during the Program: FY15 (75 percent), FY16 (81 percent), FY17 (77 percent), FY18 (71 percent), FY19 (70 percent), and FY20 (67 percent). Page 17 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) 55. The Program contributed substantially to improved state groundwater monitoring. The GSDA was supported to expand the observation wells from about 3,676 to 32,766 across the state and since 2018 has been monitoring the groundwater through a centralized IT-enabled system. The GSDA’s capacity enhancement to regularly monitor groundwater data through an expanded network of observation wells helped the state in drought prediction and planning. These granular data are also being used under the Bank supported ABhY program to develop village water security plans. Outcome (B): Improve access to quality and sustainable services in peri-urban villages Achievement of PDO Part (B): Modest (Pre-restructuring), Substantial (Post-restructuring). The pre- restructuring PDO target on access to sustainable and regular improved water services in peri-urban areas was only partly achieved (59 percent of target), while the rephrased and less ambitious post-restructuring goal was exceeded (108 percent of target). This pattern of relatively higher achievements against lower restructured targets is repeated for select IRIs and DLIs (see Table 3 below), though not all indicators relevant to Outcome (B) were revised, nor all restructured targets fully achieved. Overall, the major pre- restructuring objectives under Outcome (B) were only partly achieved, thus warranting a Modest rating, whereas narrower post-restructuring objectives were, overall, almost fully achieved, resulting in a Substantial rating. Table 3 shows the key Program results for the various indicators for Outcome (B), and subsequent paragraphs detail the Program’s role in achieving these outcomes. Table 3. Outcome (B) Achievement Indicator Name Original Revised Actual % of original % of revised Indicator/DLI No. Targets Targets Achieved Targets Met Targets Met People provided with access to New PDO 4 improved water sources [peri- (corresponding . to urban schemes] 340,000 185,000 200,399 59% 108% original PDO3), DLI 3 Number of house connections to a commissioned peri-urban 68,095 68,095 48,058 71% 71% DLI 3 water supply system Percentage of piped water New IRI 3 (original systems that are using suitable 40 40 56 140% 140% IRI5) O&M models Number of house connections to a peri-urban water supply 51,071 45,000 41,658 82% 93% IRI 7 (original IRI 9) system receiving service as per Service Delivery Standards 56. Peri-urban water services. The Program supported the delivery of sustainable services in peri- urban areas by MJP. At the time of Program closing, of the targeted 46 schemes, 45 were commissioned, thus resulting in the outcomes highlighted by Table 3. Of the 45 commissioned schemes, 36 schemes had completed more than two months of the O&M period at closure, demonstrating initial sustainability. The IVA verified DLI 3 along with the four DLRs according to the agreed verification protocol. One scheme, Kuchana in Chandrapur District, achieved 100 percent metered house connections and was providing 24/7 supply. Nine schemes had been handed over to GPs at closure and completed the annual assessment of O&M and were regularly collecting tariffs. These results were based on the survey conducted by MJP and were certified by the district executive engineers toward fulfilment of DLI 4 requirements. Page 18 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) 57. The Program helped strengthen sustainability through the adoption of O&M approaches, assisting the WSSD in reviewing its existing O&M policies and refining them to ensure sustainable services in the sector. The district institutions were mandated to provide back-up support to the villages. Through the Program support, a domestic metering policy was developed, which addressed DLI 3a requirements and is a first in India’s RWSS sector. The policy clarifies the roles and responsibilities of various stakeholders and provides appropriate technical, procurement, cost-sharing, and management options for metering. An O&M guideline was developed under the Program and provided to the GPs for awareness raising. The Program supported the WSSD’s efforts to define and measure compliance with minimum O&M criteria. The WSSD conducted a baseline survey for these indicators in 2018 covering 1–2 percent of GPs in each district. A follow-up survey in 2020 concluded that 56 percent of the GPs meet the O&M criteria and collect more than 80 percent of the targeted O&M revenues, maintaining the schemes successfully. 58. However, DLI 4 on Service Delivery in Peri-Urban Water Supply Systems, was not eligible for any disbursements according to the conditions set by the Bank during the Program extension in March 2020. The WSSD has now adopted the practice of measuring results with respect to specific service delivery parameters as defined in the Program and captured in the M&E system. Beyond Program closure, as the schemes are commissioned, the WSSD is likely to continue to monitor the results and achieve the target. Outcome (C): Improve access to quality and sustainable services in water-stressed and water-quality- affected areas. 59. Achievement of Part (C): Modest (Pre-restructuring), Substantial (Post-restructuring). The Program only partly achieved the pre-restructuring intended outcomes for improved service access in water stressed and water-quality affected areas: 49 percent of the original access target was met, 17 percent of targeted Community Safe and Secure Drinking (CSSD) water systems were realized and just half of the originally targeted Aquifer Water Management Initiatives (AWMI). These partial achievements warrant a Modest rating under Outcome (C) pre-restructuring. In terms of post-restructuring targets, key outcomes in terms of service access improvement and AMWIs were reached or even exceeded. However, the number of CSSD systems realized remained significantly below target, signifying a lower than anticipated geographic reach of the Program. Post-restructuring outcomes were thus almost fully achieved, warranting a Substantial rating. Table 4 below shows key Program results for the various indicators for Outcome (C), and subsequent paragraphs provide additional information on the Program’s contribution to these outcomes. Table 4.Outcome (C) Achievements Indicator Name Original Revised Actual % of original % of revised Indicator Targets Targets Achieved Targets Met Targets Met / DLI No. People provided with access to improved PDO 4, water sources [in water-stressed/water- 471,000 200,000 230,454 49% 115% DLI 5 quality-affected villages and benefitted in Aquifer Management areas] Number of CSSD Water Systems 580 214 100 17% 47% DLI 5 Number of Aquifer Water Management 24 12 12 50% 100% IRI 10 Initiatives successfully implemented 60. PDO Indicator 4: Number of people provided with access to improved sources (and associated DLI 5). The GSDA was the implementation agency for the schemes to extend access to quality and sustainable services to the population in water-stressed and water-quality-affected areas. The Program strengthened the GSDA with technical experts and project management consultants for planning of Page 19 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) schemes. Of the 214 community safe and secure water supply systems targeted post-restructuring (102 schemes in water-stressed areas and 112 schemes in water-quality-affected areas), 148 systems (80 schemes in water-stressed areas and 66 in water-quality-affected areas) were completed. 23 According to the GoM’s verification proposal, the IVA verified 100 schemes (60 from water-stressed areas and 40 from water-quality-affected areas) against DLI 5 and funds were disbursed accordingly. 61. For habitations located in water-stressed areas, an innovative composite technological design of community storage tanks and community standposts was successfully implemented. This involved construction of zinc aluminum metal sheets storage tanks, which were light in weight, noncorrosive, strong, easy to install and serve as raw water storage reservoirs. From these, water was distributed through a piped system, including a chlorinator and taps. The implementing agency was given the responsibility for the scheme’s O&M for five years. A sound community O&M model was also developed with communities trained on O&M aspects while collecting an average monthly maintenance fee of INR 15 (US$0.2) per month per household. The WSSD plans to scale up these interventions under the JJM to reduce the necessity of delivering water by tankers during water-scarce months in water-stressed areas. 62. For water-quality-affected areas, reverse osmosis plants and defluoridation plants fitted with water storage facilities were implemented. These plants were developed under a build, operate and transfer model, with the contractor operating the plants for ten years after which these plants will be handed over to the concerned GP. For the first 10 years, the WSSD will provide the annual O&M costs to the contractor for maintenance of the plants. The WSSD has fixed the rates for 10 liters potable water for the village community at INR 1 (US$0.014) for the first three years, INR 2 (US$0.028) for the next three years, and INR 3 (US$0.042) for the last four years, for fostering community ownership towards O&M. The issue of safe disposal of reverse osmosis rejects remains, but the quantum is quite small. The contractor in the O&M period will identify a local operator and build his/her capacity for O&M after the transfer of these plants to the GP. 63. AWMIs. These initiatives refer to selected aquifer areas in which various physical and demand management measures were implemented with the objective of improving groundwater management to enhance drinking water security. Maharashtra had pioneered this initiative in the Maharashtra Rural Water Supply and Sanitation Project ‘Jalswarajya’ (2003-09; P073369). Under the Program, this initiative was further refined technically to include an aquifer delineation process and inclusive engagement of communities in the planning process. The capacity of the sector institution (GSDA) was developed through an expert group under the Program. 64. A total of 12 aquifers were treated under the Program in seven districts, targeting about 102 villages in 72 GPs. The GSDA prepared the Impact Assessment Report for sample aquifers in Jalgaon District, employing eight key indicators to assess the impact of groundwater management interventions.24 Positive changes observed in some of these indicators have demonstrated progress due to the participatory groundwater management process. The report was reviewed by the Central Water Ground Board, Nagpur, and National Institute of Hydrology, Roorkee, and was found to be well documented. This was the first-ever methodical impact assessment of groundwater management interventions conducted in the country. The GSDA plans to complete the assessment of all aquifers by the end of 2021. The GSDA 23 These include 33 schemes with defluoridation units and 33 schemes with reverse osmosis plants. 24 The indicators are (a) change in groundwater level, (b) groundwater drought index, (c) decrease in groundwater draft, (d) reduction in water supply by tankers, (e) community awareness on groundwater management, (f) changes in micro irrigation, (g) stage of groundwater development, and (h) water quality index Page 20 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) has developed its capacities to scale up the AWMIs and effectively implement ongoing groundwater management programs such as the Bank supported ABhY.25 Rating of Overall Efficacy 65. Program achievements relative to the original objectives before restructuring were Modest across the three outcomes. The originally intended objectives were too complex and ambitious overall, though in each outcome area, the Program did at least partly achieve its original goals. The restructuring simplified the results framework, clarified the DLIs and lowered a number of key targets. Overall, the Program almost fully achieved these restructured objectives across the three outcomes – exceeding some but falling short of others – thus leading to a Substantial post-restructuring Efficacy rating. C. JUSTIFICATION OF OVERALL OUTCOME RATING 66. The overall outcome rating for the Program is assessed as ‘Moderately Satisfactory’, based on the split evaluation as shown in Table 5. Table 5. Outcome Rating (Split Evaluation) Before Restructuring After Restructuring Relevance of PDO High Efficacy of PDO Modest Substantial A Modest Substantial B Modest Substantial C Modest Substantial 1. Outcome ratings Moderately Unsatisfactory Satisfactory 2. Numerical value of outcome ratings26 3 5 3. Disbursements (USD) 31,323,136 49,299,585.34 4. Share of disbursement (%) 39 61 5. Weighted value of outcome rating 1.17 3.05 6. Final outcome rating 4.22 Moderately Satisfactory D. OTHER OUTCOMES AND IMPACTS 67. The Program supported strengthening of the state training organization MEETRA, including its development as a center of excellence for training and applied research. While MEETRA conducted 90 training programs in 2013–14, this number went up to 145 in 2018–19, and is expected to increase, when the Program supported new campus is fully operational. A business plan for MEETRA’s growth was also developed under the Program. Toward this, MEETRA has also signed a memorandum of understanding with the German Corporation for International Cooperation (GIZ) and Indian Institute of Technology (IIT) Bombay and is pursuing collaborations with a host of other renowned national and international academic and research organizations. The GoM has demonstrated its commitment to the long-term sustainability of MEETRA by opening a separate budget head for MEETRA in the regular WSSD budget and providing a budget of INR 90 million (US$1.3 million) for FY21–22 for capacity-building and outreach interventions. 25 Atal Bhujal Yojana (ABhY)—National Ground Water Management Improvement Program—is a World Bank-supported Program (2018–25). 26 Highly Satisfactory -5, Satisfactory-5, Moderately Satsifactory-4, Moderately Unsatisfactory-3, Unsatisfactory-2, Highly Unsatisfactory-1 Page 21 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) Grievance Redress Mechanism (GRM) 68. The WSSD implemented different systems to address grievances in compliance with PAP 1, initially by receiving complaints through drop boxes in the villages and the common website at the state level on the Chief Minister’s portal.27 Since April 2019, an independent toll-free number has been operational. For strengthening complaint and grievance redress mechanism within the WSSD at the state level, a GRM module was incorporated and tested in the M&E system to manage the grievances received from various sources. The module contained complaints categorization under 51 heads based on thematic areas including procurement, strengthening escalation mechanisms, tracking, resolution time lines, and so on. It also included a backend system of first response, alert, escalation, responsibility matrix, time lines, and so on. These improvements were still under implementation at the time of Program closure. Gender 69. Women and girls are the primary water fetchers in rural India, and they often incur considerable time and hardship in the process. The Program aimed to reduce the physical and time burden on women and girls for water collection and to enhance their participation in planning and implementation of water supply schemes. The Program design ensured that all stakeholders participated in trainings and focus group discussions on such topics as Program components, inclusion, accountability, and equity. 70. Women were adequately represented in the various committees in the village including the VWSC and the Aquifer level Groundwater Management Association (one-third of the positions are reserved for women), and the SAC (one-half). The Women Development Committee formed at the village level ensured participation of women in the planning, implementation, and O&M of the schemes. The house connections provided under the peri-urban schemes and the water-stressed and water-quality-affected areas have reduced the drudgery of women. Around 207,731 women benefitted from the Program. 71. By November 2019, social audits were conducted in 35 villages reaching out to 2,000 people, which included rating the role and participation of women. Field visits during missions and community consultations during the virtual ICR mission also confirmed that the Program eased the burden of women especially in the water-scarce and water-quality-affected areas. Women were vocal in expressing their appreciation of the efforts of the Program in addressing their needs. Poverty Reduction and Shared Responsibility 72. The Program, by design, focused on improving the quality of life and sharing the benefits of development with more vulnerable parts of the population in peri-urban, water-stressed or water quality affected areas that were previously lacking adequate service access. According to the data collected by the client, 430,853 people benefitted from improved access to water sources, of which the members of vulnerable groups (scheduled castes and scheduled tribes) were 91,685 (around 21 percent). III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME A. KEY FACTORS DURING PREPARATION 73. The Program was the first time the PforR instrument was used in India. While the PforR was fit for purpose (see Section I.A), both the Bank team and client were still relatively unfamiliar with its 27 Chief Minister’s portal: https://grievances.maharashtra.gov.in/en. Page 22 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) requirements. The GoM and DEA were initially reluctant to try the new lending instrument, primarily due to the need for clarifications in the independent verification process and in the definition of the Bank’s rights with respect to investigation of fraud and corruption cases across the state’s entire RWSS program. Following presentations by the World Bank on PforR operations in other countries, the DEA agreed to consider the instrument and Maharashtra, as a relatively developed state with a commitment to reforms, was recognized as a good initial candidate. In light of the newness of the PforR instrument at the time, the task team received significant support from the Bank’s operational specialists (OPCS) during preparation. 74. The lessons from prior Bank engagements in Maharashtra were a key factor influencing preparation and Program design. In particular, the predecessor World Bank project in the state (Jalswarajya, 2003–09), which had closed with satisfactory ratings, greatly influenced the thinking in the RWSS sector on a number of policy and institutional issues, notably the use of demand-responsive approaches. 75. At preparation, the boundaries of the PforR Program to be supported by the Bank relative to the overarching GoM RWSS program were defined in terms of time (2014-20 vs. 2012-22), a limited administrative-geographic focus ("about 12 districts"), and a general prioritization of water-stressed, water quality affected and peri-urban areas. In this, the Program effectively followed a framework approach in which precise investment locations and technical approaches were only identified in the course of implementation based on these relatively general Program boundaries and criteria. This was a key factor that impacted implementation readiness and subsequently contributed to disbursement delays due to the significant time required to select specific locations and develop approaches appropriate for the local context. 76. The Program Results Framework developed during preparation was relevant to the operational objectives, targeting beneficiaries in line with strategic priorities of the client, and linked to the DLIs (see Figure 1), however, it was also too ambitious in some aspects. The initial results targets were set from a sectoral perspective to high technical standards without fully considering capacity constraints and coordination challenges among the state organizations involved. 77. Similarly, while the DLIs were generally relevant and well-aligned with Program objectives, the original DLI design did have weaknesses, notably, the initial lack of incremental targets for infrastructure- related DLIs which contributed to slow achievement of the DLIs. B. KEY FACTORS DURING IMPLEMENTATION Factors Subject to the Control of Government and /or Implementing Entities 78. In the initial years of implementation, the key challenges that led to implementation delays included the following: a. Elections in the first year of operation led to delays in identifying and selecting beneficiary villages. b. Difficulties in setting an appropriate definition for peri-urban villages. The GoM considered such criteria as population, distance from urban area, and so on, which resulted in very large villages also becoming prospective candidates in some Program districts and requiring huge investment support and no villages in a few districts. Hence, the criteria were changed later to identify smaller peri-urban villages (below 25,000 population) across all 12 Program districts to ensure geographical equity. c. Low capacity of district governments (ZPs) to deliver design reports of acceptable quality. The Government intended to decentralize the responsibility of preparing design reports and made the Page 23 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) districts responsible. To address the capacity issues, the responsibility of design and implementation was, to a degree, recentralized from the ZP engineers to district MJP engineers (for peri-urban schemes against DLIs 3 and 4) and to the GSDA team (for small schemes against DLI 5). d. Failure to award the M&E consultancy in the first call (against DLI 1). 79. Frequent changes in the senior Program management of the GoM affected the implementation progress. While staff changes are part of routine administrative practice in almost all projects, the Program experienced a high level of senior staff turnover. During the Program implementation period, the Principal Secretary/Additional Chief Secretary of the WSSD changed thrice, the Deputy Secretary cum Program Director changed four times, and the Program Manager was changed seven times. These changes, some of them at crucial times, impacted the continuity of decision-making, and institutional coordination of Program stakeholders, contributing to the delays in implementation and disbursements. 80. Delays in submission of the Program audit reports held up completion of the restructuring of the Program by almost two years. The MTR mission in March 2017 recommended that the Program be restructured to facilitate achievement of results and thereby expedite achievement of the DLIs. While the GoM met most of the basic conditions of the restructuring, the delayed submission of the Statutory Audit Report for 2016–17 from the WSSD, one of the key conditions, held up the restructuring. The report was ultimately shared by the GoM in December 2018. The GoM attributed this to delays in submission of expenditures by the MJP and the GSDA which in turn led to delays in submission of expenditure statements to the Comptroller and Auditor General (CAG) and the Statutory Audit Reports to the World Bank. Early action by the GoM could have significantly reduced the delays in the approval of the restructuring package and further improved results and disbursements. 81. While the Program contributed significantly to sanitation outcomes by supporting achievement of ODF status, sullage water schemes were not implemented. Within the WSSD, there was no consensus on the type of sullage management approaches to be applied (decentralized versus centralized, type of technologies to be implemented, and the related costs). Moreover, the communities’ priority was generally the capital-intensive, comprehensive piped water collection system. The World Bank provided technical support to the state and district teams to provide guidance on technical appropriate and cost- effective approaches to sullage management. While the WSSD developed training modules on sullage management and made efforts to produce technical assessments, the state did not decide on a suitable model, resulting in no implementation at all. While an opportunity for integrated implementation of water supply and wastewater management activities was lost in the process, the WSSD did gain some experience in designing sullage management solutions that would eventually stand it in good stead in the implementation of ongoing SBMG-Phase II, which has a large component on sullage management. Factors Subject to the World Bank Control 82. An important part of the World Bank’s engagement with the GoM was regular supervision and candid reporting on identified bottlenecks and follow-up on suggested measures. To address the implementation challenges and slow disbursements in the initial years, at the request of the GoM, the World Bank team carried out special thematic missions to augment the regular six-monthly Implementation Support Missions (ISMs). The World Bank had, as early as the third ISM in December 2015, recommended that the GoM explore the possibilities of restructuring to improve Program performance. While the MTR mission in March 2017 laid out the agreed restructuring road map for the GoM, the state was slow to act to complete prerequisites. The World Bank also carried out a “safe space clinic” with national and international domain experts to revisit the modifications proposed to the DLIs Page 24 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) with additional DLRs for speedier Program implementation, achievement of results, and disbursements. The quarterly Tripartite Portfolio Review Meetings with the participation of the DEA and project implementing agencies also provided a forum for reviewing implementation progress and recommending critical actions to keep the Program on track. The World Bank also facilitated the partnership of the WSSD with the MIT team. The World Bank’s overall support to the GoM and constant engagement with the state was proactive across the Program duration to achieve the Program outcomes. 83. Over the course of Program implementation, there were numerous changes of the responsible sector/practice managers at the Bank (seven in total), which presumably worked against proactivity in resolving the problem status of the Program. At the same time, there was only one task team leader from preparation until closure which is a rare example of continuity in task management. In addition, a Bank consultant based in Mumbai provided on-site support for the Program duration. Factors outside the Control of Government and/or Implementing Entities 84. The GoI introduced the Goods and Services Tax on July 1, 2017, which affected the process of tendering of water supply works in peri-urban villages. Some of the tenders had to be retendered to incorporate the Goods and Services Tax provisions. 85. At the time of the initial closing date (March 2020), efforts to contain the COVID-19 pandemic led to nationwide lockdowns. At the request of the DEA, the World Bank extended the credit closing date by six months. This extension was given in anticipation of a future restructuring to specify the use of the undisbursed funds by the DEA and to allow time to determine its priorities to use the undisbursed credit balance for COVID-19 response interventions. The extension also provided an opportunity for the state to consolidate implementation, to streamline O&M mechanisms as well as IVA verification for the achievement against the DLIs. IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME A. QUALITY OF MONITORING AND EVALUATION M&E Design 86. The M&E design intended to combine the existing GoI web-based M&E for the NRDWP schemes, which captured data on physical and financial progress of water supply schemes, with a custom M&E system for the Program that focused on tracking in-depth scheme performance in terms of financial, technical, and service delivery parameters. The World Bank team provided international experience on the development of the M&E framework. The Program M&E system was designed to develop into a robust online system that would be used on a dynamic basis to support timely decision-making and action in the RWSS sector. In terms of capturing and monitoring PforR outcomes, the Program initially included four PDO indicators, 11 IRIs, and five DLIs, in four results areas (see Section I.A and Annex 1). 87. While the original indicators and DLIs were generally relevant and well-linked to the targeted outcomes, some of the definitions proved too complex or unclear (e.g. the original PDOI-1 which combined planning and M&E aspects into one indicator; or the original PDOI-2 which included a performance index that turned out to be difficult to monitor). Similarly, the DLIs were later recognized to lack necessary intermediate steps (hence the introduction of DLRs). These issues were addressed and largely resolved through the first restructuring. Page 25 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) M&E Implementation 88. The Program’s M&E pilot was launched in 10 districts in the first phase in April 2018 and the M&E system was live in all districts by September 2019. Consulting firms were hired by WSSD to support the development of the MIS and the integrated M&E system and its roll out. The hiring of the firm for developing the M&E system took two rounds and the consultant was brought on board only in March 2016. The World Bank’s Chennai information technology (IT) team provided continued technical support towards the development and roll out of the M&E software. The development of the sector M&E system was quite elaborate and entailed various steps: (a) preparation of the Sector MIS Gap Analysis Report, (b) development of sector performance monitoring themes and key results indicators, (c) software development, (d) IT infrastructure audit of sector institutions, (e) development of dashboard, (f) user acceptance testing, (g) review of data integrity, (h) pilot testing in select districts, (i) feedback collation, and (j) final rollout of the M&E system. This was a protracted consultative process with the concerned departments and stakeholders. Standard operating procedures, videos, and self-explanatory manuals were prepared to guide staff on data entry and other management. The sector-wide improved M&E system was rolled out across the state in September 2019 and was in use in all the 34 districts of the state at the close of the Program in September 2020. The system is now live, and the dashboard and the reports generated are available on the WSSD’s online platform and effectively informed PforR results monitoring. M&E Utilization 89. The GoM’s WSSD is one of the few government organizations in India to host the entire M&E application (web/mobile) on a cloud platform that is accredited by a government-appointed security audit management company. This gives the system the capability of providing more server storage space and reducing the cost of management, which encourages more computing power and speed to cope with the GoM’s increasing demands and future needs. This implementation has enabled better utilization of available resources for the software and applications to perform at their best. However, the system is being operated in stand-alone mode for now as the GoI did not give permission for a national-level interface with the WSSD’s M&E system due to security protocol issues of integration with the M&E software of the NRDWP and SBMG. The state is now running two parallel M&E systems. Justification of Overall Rating of M&E Quality 90. The overall quality of the Program M&E is rated as Substantial. There were moderate shortcomings in the initial design of the results framework and DLIs (corrected at restructuring), and in terms of the lack of direct integration with the complementary GoI system. However, the M&E system was developed to high standards, was successfully deployed and is generally sufficient to assess the achievement of the project objectives. Moreover, the GoM is committed to further improve and continue the use of the M&E system as shown by WSSD issued Government Resolutions towards entrenching the system at state and district-level. B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE Environmental and Social 91. The Environmental and Social Systems Assessment (ESSA) of the Program, carried out during Program preparation established that the state had an enabling policy and legal framework and that the overall environmental and social impacts would be positive. The assessment also found the state’s social policies and procedures generally adequate for the Program. The state has an enabling policy and legal Page 26 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) framework to promote decentralized service delivery, active participation of women, and to safeguard the interest of vulnerable sections including the scheduled castes/scheduled tribes communities. During implementation, the World Bank monitored compliance with the agreed environmental and social action plans, and the client was responsive to the Bank’s observations in this area. This included developing standard operating protocols for the management of spent media from defluoridation plants and developing Environmental Health and Safety guidelines for water quality laboratories. Complying with PAP 9 requirements, the environmental and social systems focused on the necessary capacity-building measures for implementing strengthened environmental and social management rules. To support this, the World Bank provided technical support to the WSSD for development of social audit kits and workshops on social audit and facilitation of these in 150 GPs. Land Management 92. For the peri-urban schemes across the 12 Program districts, there was minimum impact on private land. The technical feasibility aspects and limitations on land availability led to greater dependence on using cultivable land for scheme components. While the Program followed the state’s approach to land procurement for RWSS schemes, there were only donations of land and no acquisitions. Land transfer in revenue records, being a time-intensive exercise, was still under process at Program closure. Fiduciary 93. The Fiduciary Systems Assessment identified areas of weakness and proposed mitigation measures captured in the PAP and Program Operation Manual. During implementation, persistent delays occurred in the reporting of the utilization of allocated funds by the MJP and GSDA to the RSPMU, resulting in delays in consolidation and audit of the Program financial statements. The delays in spending and reporting on the Program expenditure by the MJP were partly attributable to the overall weak institutional capacity and use of outdated processes and systems for preparation and maintenance of accounts. Although the initial Program design included a PAP for strengthening accounting systems in the MJP, this had to be dropped during the first restructuring in 2019. The MJP came under extreme financial stress and the GoM issued a Government Resolution in March 2017, to absorb staff salaries and give the MJP officials the status of government employees. With this development, the MJP could be considered a government agency and the PAP became redundant. The implementation of the revised PAP 8 (after restructuring) to strengthen sector-wide expenditure reporting, through the design and rollout of the M&E system, was significantly delayed. 94. Procurement post review (PPR). As a part of PAP 7 compliance, the WSSD had to share the PPR report covering 15 percent of all the contracts carried out under the Program before closure. This was significantly delayed but was finally completed and the report shared with the World Bank in March 2021. The World Bank reviewed the report and found it to be generally in order. No complaints were reported through PPR or brought to the notice of Bank directly. C. BANK PERFORMANCE Quality at Entry 95. The World Bank’s performance was Moderately Satisfactory during Program preparation and at entry. An overall thorough preparation process resulted in a highly relevant Program and overall adequate design targeting the key strategic priorities in Maharashtra’s RWSS sector. However, the Program did exhibit some weaknesses at entry, including issues related to implementation readiness, Page 27 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) some overly ambitious targets and greater-than-usual backloading of infrastructure-related DLI disbursements (see Section III.A). The lack of experience with the new PforR instrument likely contributed to these issues which were subsequently recognized by the Bank team and addressed during the first restructuring. 96. The overall robustness of the Program was the result of a careful and comprehensive preparation process. In close collaboration with counterparts in GoM, the World Bank aligned the PforR structure with existing state systems and programs. The World Bank put a particular focus on strengthening the district planning process and the sector M&E framework and improving institutional capacity for program implementation and sustainability and investments for sustainable water and sanitation services in water- scarce and water-quality-affected areas. The World Bank also carried out a study of WASH (water, sanitation, and hygiene) issues in per-urban areas. The study findings provided a basis for engaging with the GoM on policy, scheme design, and aspects of implementation in peri-urban areas. 97. Program preparation included clear and concise analysis and planning (reflected in the PAD and PAP documents) that adequately addressed the sector and institutional changes and risks. The World Bank preparation team received strong technical support from colleagues experienced in the design of PforR Programs in other countries, towards conceptualizing the Program design and developing the DLIs. The OPCS team supported conceptualization of the proposed sector M&E framework under the Program. During preparation, the technical, fiduciary systems, environmental, and social assessments of the Program were well assessed, based on thorough analysis. The improvements required and the agreements to strengthen these systems were incorporated in the Program design. The Program was aligned with the objectives of the RWSS program of Maharashtra with overall well-articulated PDOs and relevant DLIs. Initial design issues may have been more limited had the Bank team focused more on capacity and political economy constraints when appraising the design and disbursements projections. Quality of Supervision 98. The World Bank’s performance during implementation supervision was Satisfactory. The World Bank conducted 11 ISMs including the MTR mission, a virtual mission in July 2020, and the virtual ICR mission in October 2020. The ISMs and technical/ICR missions in 2020 were held remotely due to travel restrictions arising out of COVID-19. The missions were supportive of the WSSD and the districts’ efforts in addressing implementation issues and provided useful feedback to the GoM. Aide Memoires and Implementation Status and Results Reports (ISRs) clearly articulated the Program progress, observed issues and challenges and recommendations, and documented agreed action points for follow up. The World Bank conducted a robust MTR mission to review the updated progress and examine the implementation bottlenecks and proposed restructuring of the DLIs, Program scope, and PDO/IRIs. Following the MTR, the Bank team provided support to help the client prepare for the agreed restructuring, including organizing an internal “detailed implementation review” to discuss the issues, and address risks to the achievement of results, with expert inputs from experienced national and international World Bank staff. The final restructuring after agreement with the GoM facilitated subsequent funds disbursement and helped the Program sustain its ratings. 99. The World Bank team provided “hands-on” support to the WSSD for the development of the various capacity building modules, carrying out social audit, supporting contract management and addressing implementation challenges as requested by GoM. Page 28 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) Justification of Overall Rating of Bank Performance 100. The World Bank performance is rated Satisfactory on the whole. This operation was the World Bank’s first PforR loan in India. At entry, the Bank helped to design a comprehensive, relevant, and meaningful Program that addressed the key sector issues of the state. Initial design issues, such as they were, should be assessed in the context of the newness of the instrument, and their impact remained within bounds as shown by at least partial achievements even against original targets (Section II). During implementation, the World Bank was diligent in its supervision and provided proactive, strategic advice on the most challenging technical, institutional, and management issues, including support to relevant restructurings. D. RISK TO DEVELOPMENT OUTCOME 101. Potential risks to the development outcomes were identified at the time of Program closure: a. Despite the generally good experience of implementation of capacity building measures under the Program, challenges persist in terms of the internal processes of sector institutions to coordinate effectively and deliver timely results. The process of preparation of sound technical water supply designs, their approvals, proper accounting and timely audit of implementation expenditures remain key risk areas which require the continued attention of GoM. While the Program helped stimulate the results-based approach in the sector, it will need sustained efforts by the GoM to institutionalize such processes and systems in the sector. b. The WSSD has adopted the practice of measuring the service delivery parameters for the commissioned schemes. At Program closure, while nine peri-urban schemes after completion of one year of operations by contractor were handed over to the GPs and were functioning well, 27 commissioned schemes were being operated by the contractors. The peri-urban schemes and the water-stressed and water-quality-affected schemes commissioned under the Program will need to be continually monitored by WSSD on the service delivery indicators over time to ensure the development outcome of sustainable services. V. LESSONS AND RECOMMENDATIONS 102. Clearly defined Program Boundaries improve PforR Implementation Readiness: The Program boundaries of this PforR accurately reflected the strategic priorities of the GoM and GoI, but remained relatively general. Instead of defining the Program in terms of specific geographic areas or investments, the boundaries only identified general focus areas (e.g. “Peri-urban”, “water-stressed”). This effectively shifted the burden of fully identifying the Program into the implementation period, causing disbursement delays and extra costs to the client. Future operations would be well-advised to identify PforR Program boundaries as specifically as possible, or clearly justify it when this is not possible. 103. Program DLIs feasibility and design should align with the state’s implementation capacity , and should include sub-DLRs for more predictable achievements of DLIs. The initial Program results and DLIs were designed from a sectoral perspective, without fully considering the state’s implementation capacity. The first restructuring of the operation made critical revisions to the DLIs, by simplifying definitions and introducing specific quantitative targets, making it more feasible for the state to implement the interventions. This facilitated the DLI verification process, the achievement of results and disbursements. For future PforR operations, especially those working with multiple agencies responsible for different DLIs and on different Page 29 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) timetables, it is recommended to design DLIs with progressive sub-DLRs to achieve more predictable achievements of DLIs and therefore of disbursement flows that can help maintain the momentum of implementation progress by adequately supplementing the state’s resources. 104. Peri-urban areas need focused policies for water supply and sanitation. The Program has underlined the special nature of peri-urban areas which are rural by classification, but increasingly urban in terms of population density, economic structure, and aspirations with respect to water consumption and sanitation services, among other aspects. The substantial delay in implementation of the peri-urban schemes under the Program, including the finalization of the selection criteria of these schemes, has demonstrated that unique challenges of providing sustainable water and sanitation services in these areas (in terms of piped infrastructure; metering and tariff approaches) need to be studied in more detail to support the development of appropriate policies and institutional arrangements. This is an emerging challenge across India and several developing countries and needs more attention from the GoI, state governments and the World Bank. . Page 30 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) ANNEX 1. RESULTS FRAMEWORK, DISBURSEMENT LINKED INDICATORS, AND PROGRAM ACTION PLAN Annex 1A. RESULTS FRAMEWORK (i) PDO Indicators Objective/Outcome: Improved Institutional Performance Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion PDO Indicator 1:Number of Number 0.00 33.00 30.00 34.00 districts using strengthened M&E systems 12-Mar-2014 31-Mar-2020 30-Sep-2020 30-Sep-2020 Comments (achievements against targets): General Comment for revisions in the Results Framework - PDO Indicators & IR indicators ; DLIs and PAP: The revised definitions and targets are as per the approved Restructuring Package and amended Financing Agreement dated January 11, 2019. Revised Definition of Strengthened M&E system: A strengthened M&E system is one that is able to capture and analyze, either in an integrated fashion or in separate modules, a set of indicators such as: (i) sector performance, the number of water systems constructed, people/habitations that are fully covered by improved water sources, household connections, per capita investment costs, functionality of water systems, hours of service and water quality, number of households and institutions having access to a toilet, GPs attaining and sustaining ODF; (ii) fiduciary performance, budget variance, time efficiency of funds flow, timeliness of recording expenditures, average length of procurement processes, number of bidders and bid responsiveness, and processing time for contractor payments; and (iii) project/contract management performance, including the schedule and cost performance of rural water supply systems. Using the M&E system is assessed based on compliance to GoM guidelines issued through a Government Resolution. Final Results: One new district carved by GoM was added during implementation, revising the number of total districts to 34.The M&E system was made live in all the 34 districts of the state, and the data entered. The districts have been fully capacitated to operate the systems and they are now able to enter Page 31 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) the data, generate reports and capture information on 67 indicators that are tracked against eleven modules, under three key thematic areas of sector performance, fiduciary performance and contract management performance. This is based on WSSD’s online verification with districts and reports from Dy. CEOs on the functionality of the systems. GoM has created data entry protocols and responsibility matrix at various levels in the institution, along with timelines and quality control mechanisms. An M&E cell has been created in WSSO and district M&E cells in ZPs through a Government resolution in August 2019.The M&E system was taken over by WSSO team. These cells continue beyond the Program closure. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion PDO Indicator2: Number of Number 0.00 33.00 6.00 4.00 districts using improved planning processes 12-Mar-2014 31-Mar-2020 30-Sep-2020 30-Sep-2020 Comments (achievements against targets): Definition of Improved Planning Process: An improved planning process is defined as the one that helps assess needs and guide investment and program support decisions, using: (i) the village level data collection on key water-related indicators approved by WSSD (iii) information available from sources such as GSDA, IMD, Census, etc. and iii) tools for spatial mapping, analysis, and visualization of needs and opportunities. Using the Planning process is assessed by checking whether the target districts have put the improved planning process to use, in decision making, at least for one Annual Plan. The improved planning process captures village level information and it is used to build block and district level action plans for planning and prioritizing water supply infrastructure and services. The process developed under the Program, with the help of MIT partnership, involved the use of a mobile application for Gramsevaks at GP level. Some of the information generated based on this planning approach included: rating of the village conditions, mapping them on a GIS platform and identifying most needy villages for different interventions/ support from WSSD, such as household tap connections, source protection, O&M and water quality, and the nature of priority investments, covered in five modules. Page 32 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) Final Results: The Annual Plans were made in four districts - Pune, Raigad, Satara and Bhandara, with the help of MIT team. The intervention priorities have been identified. WSSD is yet to capture them in the annual plans for funding under Jal Jeevan Mission (JJM) - the current National Rural Water Program. However, WSSD has committed to adopt the system, under JJM for all districts. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion PDO Indicator 3: Percentage Percentage 30.00 60.00 60.00 100.00 of santioned piped rural water supply systems that 12-Mar-2014 31-Mar-2020 30-Sep-2020 30-Sep-2020 followed GoM's demand responsive approach Comments (achievements against targets): Revised Definition of GoM’s demand-responsive approach. A rural water supply system is considered to have followed GoM’s demand-responsive approach if the following minimum conditions are satisfied: • GP adopts a Gram Sabha resolution to seek new system/ investments in their Gram Panchayat for provision of water supply • GP approves the proposed system and there is a Gram Sabha resolution • GP agrees to take over the system through WSSD defined documentation and process• VWSC is established as per GoM guidelines (including adequate representation of women) and has received appropriate training. (Note: These processes are subject to any other mechanism/ process that the WSSD may specify from time to time.) Final Results: WSSD had carried out sample survey in October- November 2018 through the districts / ZPs and confirmed that these processes were followed across the state and the relevant results were achieved. Due to the COVID-19 pandemic, the survey was not carried out in the last year. GoM now follows all the parameters of demand responsive approaches as a policy. Objective/Outcome: Improved Access to quality and sustainable services Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Page 33 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) People provided with access Number 0.00 811000.00 385,000.00 430,853.00 to improved water sources 12-Mar-2014 31-Mar-2020 30-Sep-2020 30-Sep-2020 People provided with access Number 0.00 192500.00 192,500.00 207,731.00 to improved water sources - Female (RMS requirement) People provided with access Number 0.00 811000.00 385,000.00 430,853.00 to improved water sources - rural Comments (achievements against targets): During the Program Restructuring of January 11, 2019, the original PDO Indicators 3 and 4 , measuring the (i) number of people with sustainable water; and (ii) safe water access in water-stressed and water-quality-affected areas, respectively, were combined into the single World Bank Core Sector Indicator (PDO Indicator 4) that measured people provided with access to improved water sources, with a target of 385,000 overall. This corporate indicator measures the cumulative number of people who benefited from improved water supply services that have been constructed through operations supported by the World Bank. The revised targets are in two parts: a) the number of people provided with access to improved water sources (those receiving service through the commissioned peri-urban schemes) in peri- urban areas = 185,000 As verified by IVA, actual achieved by closing date: 200,399 b) the number of people provided with access to improved water sources (those receiving service in water scarcity villages, water quality affected villages , and those benefited from Aquifer Management areas) = 200,000 As verified by ZPs, actual achieved by closing date: 230,454 [ In Water Stressed villages - 16,785; In Water Quality affected villages - 44,276; In Aquifer Management areas - 169,393 ] Page 34 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) (ii) Intermediate Results Indicators Results Area: 1.Strengthened Sector Planning and Monitoring Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Intermediate Results Text Existing M&E system is WSSD carries out a WSSD carries out a The system was made Indicator 1: Strengthened limited in scope and is review of review of live in all the 34 M&E system implemented not fully used implementation of the implementation of the districts of the state for the sector consistently across the strengthened M&E strengthened M&E and is being used. state system and identifies system and identifies required changes and required changes and future needs future needs 12-Mar-2014 31-Mar-2020 30-Sep-2020 30-Sep-2020 Comments (achievements against targets): This IRI 1 is also DLI 1. Revised Definition: Full implementation of a strengthened M&E system will be judged when the head of district or his representative provides a letter confirming that: (i) the system has been installed and is functional as per requirements and specifications; (ii) training has been undertaken; and (iii) a team has been appointed in the district to be in charge of the M&E system. Final Results: After implementation and use of the M&E system, it was rolled out for use in all the 34 districts of the state at the closure of the Program in September 2020. The M&E system is live, and the dashboard and the reports generated are available on the online platform of WSSD. Page 35 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) Results Area: 2. Improved Capacity for Program Implementation Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Intermediate Results Percentage 0.00 75.00 75.00 67.00 Indicator 2:Strengthened capacity of key sector 12-Mar-2014 31-Mar-2020 30-Sep-2020 30-Sep-2020 institutions Comments (achievements against targets): IRI 2 is also DLI 2. Revised Definition: A Capacity Development Plan is one which is developed by WSSD to impart training to staff in key sector institutions. Implementation of the Capacity Development Plan in any unit/agency will be judged when the head of the unit/agency has provided a letter confirming that Implementation of training was done as per plans. Final Results: The result achieved up to March 2020 was 67% as per the IVA verification done. The staff in positions over the years was FY2015 – 75%, FY2016 – 81%, FY2017 – 77%, FY2018 – 71%, FY2019 – 70%, FY2020 – 67%. WSSD was not able to maintain the required level of staffing at least up to 75% in the latter years, due to freeze by the GoM on regular recruitments in the sector. WSSD decided to continue some key posts like Dy. CEO in the Jal Jeevan Mission, the current national rural water program. The skill sets and number of staff required for each level were identified (about 2357 staff) in the key sector institutions and notified through Government Resolution and mobilized through a mix of WSSD own staff, staff on deputation and contractual staff. A consulting firm was engaged to undertake a comprehensive capacity building needs assessment of the WATSAN sector in Maharashtra. The approach and methodology of the assessment was based on the 360 degree view for appreciating capacity building needs i.e. by own view, senior official’s view and the views of the reporting staff. The assessment of capacity needs was based on the tasks that person has to perform and personal aspiration to learn, appreciation of individual capacity of each functionary as per the job description and appreciation of functions in entire project cycle starting from planning to evaluation. Based on this assessment, 40 standard training modules were developed and then thematic master trainers were developed. These modules were developed for the RSPMU, WSSO, MJP, GSDA and included but not limited to training programs on Program orientation, M&E, Finance Management, Page 36 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) Procurement, O&M, DPR preparation, automation, water quality, aquifer management, IEC strategies, social audit, liquid waste management, accounting & book keeping etc. Annual capacity building plans were prepared for these modules and implemented. MEETRA , as training facilitators utilized the master trainers and the training modules for further trainings. Trainings were also regularly carried out by RSPMU and WSSO for different needs for state level officers, ZP level, Block level and GP levels. This comprehensive capacity building program has strengthened the sector in filling the capacity gaps at different levels and increase the efficiency of the various stakeholders for the delivery of the Program objectives. MEETRA also progressed towards a center of excellence for training and applied research during the Program. GoM has also demonstrated its commitment for long term sustainability of MEETRA, by opening a separate budget head for MEETRA in the regular WSSD budget and provided a budget of INR 9 Cr (US$ 1.3 million) for financial year 2021-22 for capacity building and outreach interventions. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Intermediate Results Percentage 10.00 40.00 40.00 56.00 Indicator 3:Percentage of Piped water systems that are 12-Mar-2014 31-Mar-2020 30-Sep-2020 30-Sep-2020 using sustainable O&M models Comments (achievements against targets): Revised Definition: Suitable O&M Model. A system is considered to have Suitable O&M model, if the following minimum conditions are satisfied: • An appropriate system O&M arrangement has been decided by the GP / system beneficiaries a s per the O&M guidelines established by WSSD; and is adopted/ GP resolves for adoption • There is an assessment of Annual O&M costs and GP resolves to collect suitable levels of tariffs to meet O&M costs / makes up shortfall through its own funds/other sources Final Results: WSSD conducted a baseline survey for this indicator in October - November 2018 on a sample basis covering 1-2% GPs in each district (6-10 GPs per district and 10-20 households in each GP). WSSD also conducted similar survey in September 2020 and concluded that 56% of the GPs meet the O&M criteria and collecting more than 80% of the targeted O&M revenues and maintaining the schemes successfully. Page 37 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Intermediate Results Percentage 10.00 40.00 40.00 93.20 Indicator 4: Percentage of Gram Panchayats that 12-Mar-2014 31-Mar-2020 23-Sep-2020 30-Sep-2020 maintain Open Defecation Free status Comments (achievements against targets): Definition: Open defecation free status refers to a status where every household of the GP has access to an improved toilet and is using it regularly with no trace of open defecation practiced by any household member, as measured and confirmed by GoM/GoI’s verification methods. Final Results: The actual result is based on National Annual Rural Sanitation Survey, (NARSS) Round 3, for Maharashtra in 2019, conducted under the other Bank supported Program- Swachh Bharat Mission Support Operation (SBMSO). The NARSS survey has a DLI 2 - "Sustaining ODF in villages under the SBMSO; which measures the rural population living in ODF verified villages. This has been taken as a proxy for this IRI 4. Results Area: 3. Improved access to quality and sustainable access to Water and Sanitation services in peri-urban villages Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Intermediate Results Number 0.00 68095.00 68,095.00 48,058.00 Indicator 5:No. of house connections to a 12-Mar-2014 31-Mar-2020 30-Sep-2020 30-Sep-2020 commissioned peri-urban Page 38 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) water supply system Comments (achievements against targets): IRI 5 is included in DLI 3. Revised Definition: Commissioned peri-urban water supply system means a Peri-Urban Water Supply System that is physically completed and commissioned, and certified by the responsible WSSD engineering officer. ( This was clarified in the Program Restructuring Paper of January 11, 2019 that this is for peri- urban water supply systems) Final Result: There were 48,058 connections given in 45 peri-urban schemes commissioned till the Program closing date. WSSD had taken up a total of 60 peri-urban schemes, and continue to commission them beyond the Program, and is likely to reach the target. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Intermediate Results Number 0.00 60.00 46.00 37.00 Indicator 6: Number of Peri- Urban Gram Panchayats 12-Mar-2014 31-Mar-2020 30-Sep-2020 30-Sep-2020 meeting Service Delivery Standards Comments (achievements against targets): IRI 6 is included in DLI 4. Revised Definition: Peri-urban Gram Panchayats Meeting Service Delivery Standards means • The Gram Panchayat’s systems are being operated under a Suitable O&M model (see separate definition) &b ull; At least daily water supply is provided, • a minimum of 70 lpcd is provided based on bulk water measurement (unless the service area is declared a drought-affected zone), • Water quality is meeting GoM standards, and • disruptions if any being not more than 20 percent of days in any month. Page 39 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) Final Results: As of Program closing date, out of target 46 GPs, 37 GPs were receiving service as per service delivery standards. These results are based on the survey conducted by MJP and certified by responsible district executive engineers. WSSD has now adopted the practice of measuring results with respect to specific service delivery parameters as defined in the Program, and is capturing that data in the M&E system. Beyond the Program closure, as the schemes are commissioned, WSSD is likely to continue to monitor the results and achieve the target. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Intermediate Results Number 0.00 51071.00 45,000.00 41,658.00 Indicator 7: No.of houses connections to a peri-urabn 12-Mar-2014 31-Mar-2020 30-Sep-2020 30-Sep-2020 water supply system receiving service as per Service Delivery Standards Comments (achievements against targets): Final Results: As of Program closing date, 41,658 house connections in 45 commissioned schemes were receiving service as per service delivery standards. These results are based on the survey conducted by MJP and certified by responsible district executive engineers. Beyond the Program closure, as the schemes are commissioned, WSSD is likely to achieve the target. Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Formally Revised Completion Page 40 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) Target Intermediate Results Number 0.00 51071.00 28,000.00 0.00 Indicator 8:No. of households in a peri-urban Gram 12-Mar-2014 31-Mar-2020 30-Sep-2020 30-Sep-2020 Panchayat connected to sullage collection and safe disposal system Comments (achievements against targets): Revised Definition: Peri-Urban Sullage collection and disposal systems are those which: (i) collect sullage generated from households in the Gram Panchayat, treat and dispose and/or re-use the treated sullage according to GoM/GoI environmental standards and norms and (ii) for networked systems are operated under a Suitable O&M model. Final Results: Target was revised to 28,000 after Program Restructuring in January 2019. But WSSD did not implement any sullage schemes, as it was not able to converge on a holistic sustainable sullage management model for implementation. Results Area: 4. Improved access to safe drinking water in water-stressed and water quality affected areas Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Intermediate Results Number 0.00 580.00 214.00 148.00 Indicator 9:No. of Community Safe and Secure 12-Mar-2014 31-Mar-2020 30-Sep-2020 30-Sep-2020 Water Schemes Comments (achievements against targets): Page 41 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) IRI 9 is also DLI 5. Revised Definition: Community Safe and Secure Water System (CSSWS) is a single village water supply system that satisfies the following minimum conditions: • The system is located in an area that is categorized as water–stressed or water quality- affected, in accordance with established GoM criteria, at the time of selection; • The system delivers potable drinking water that complies with GoM’s minimum water quality standards; • The system provides a minimum quantity of safe drinking water as per GoM/GoI norms for water-stressed and water-quality affected areas;• The system was implemented in line with GoM’s demand-responsive approach; and • A Suitable O&M model is adopted Final Results: Target was revised to 214 schemes after Program Restructuring, January 11,2019. 148 schemes were completed by March 31, 2020. No more schemes were implemented beyond that date. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Intermediate Results Number 0.00 24.00 12.00 12.00 Indiactor 10: Number of Aquifer Water Management 12-Mar-2014 31-Mar-2020 30-Sep-2020 30-Sep-2020 initiatives successfully implemented Comments (achievements against targets): Revised Definition: Aquifer Level Groundwater Management Initiatives (AWMIs) refer to selected aquifer areas in which various structural (physical interventions) and non-structural (demand management/conservation) measures are implemented with the involvement of the community and with the objective of improving the sustainability of groundwater management to enhance drinking water security. Final Results: AWMI initiatives in twelve aquifers in seven districts were completed by March 31, 2020. Page 42 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) ANNEX 1B. DISBURSEMENT LINKED INDICATORS DLI IN00987298 TABLE DLI 1: DLI#1: Strengthened M&E system for the sector (Text) March 31, March 31, March 31, March 31, March 31, September March Baseline Total 2015 2016 2017 2018 2019 30,2019 31,2020 WSSD has - WSSD has WSSD has WSSD has WSSD has identified designed fully fully carried out sector- and tested implement implement a review of wide M&E the ed the ed the the needs and strengthen Strengthen Strengthen implement Existing has ed M&E ed M&E ed M&E ation of M&E system formulated system system in a system in a the is limited in a plan for total of at total of at Strengthen scope and is developing least 10 least 20 ed M&E Original values not fully - a districts additional system used strengthen districts and consistently ed M&E identified across the system, required state which can changes be and future implement needs ed across Maharasht ra. WSSD has - WSSD has WSSD has identified designed fully Actual values - sector- and tested implement wide M&E the ed the needs and strengthen Strengthen Page 43 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) has ed M&E ed M&E formulated system system in a a plan for total of at developing least 10 a districts strengthen AND ed M&E system, WSSD has which can fully be implement implement ed the ed across strengthen Maharasht ed M&E ra. system in a total of at least 20 additional districts 898,397.50 0.00 14,121,217 5,070,000. 5,183,380. 1,480,000. Allocated amount ($) 0.00 26,752,995.57 .51 00 56 00 898,397.50 0.00 14,121,217 0.00 0.00 7,289,406. Disbursed amount ($) 0.00 22,309,021.36 .51 35 Comments (achievements against targets): General Comments for All DLIs: There were some Program specific issues and some system constraints which are mentioned below here for clarity: • The Bank while giving the Program an extension of six-months till September 30,2020, had put a rider that the disbursements would be done only for the results achieved till March 31, 2020 – the original closing date. Page 44 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) • In order to NOT disburse more than the expenditure made by the GoM, Bank closely monitored the overall disbursements and limited them. WSSD also had not claimed some disbursements even though the results were achieved before March 31, 2020. • As the portal does not have another row to show revised targets, pl. note that the “Original values” row indicates both the original and revised targets based on the restructurings. • Funds in excess under the Program due to exchange rate savings and cost reduction were cancelled before the original Program closing date of March 31,2020. DLI 1 Results: The allocations against the DLRs 1A and 1B shown here are based on the actual disbursements in the Program, which happened before the first restructuring in January, 2019. The last two disbursements under this DLI (DLRs 1C and 1D) were done later, and so they have been shown revised allocations based on the restructuring. The allocation against DLR 1D were based on conversion of allocations made after the last restructuring made to the Program (after cancellation of USD 6m) into USD using a conversion factor of 1SDR = 1.40 USD. The disbursement against DLI 1C of USD 5,183,380.56 was done on August 4,2020 and against DLI 1D of USD 2,106,025.79 was done on March 30, 2021. These DLIs results and disbursements have been clubbed together (Total USD 7,289,406.35) in the head of March 31,2020.The disbursement against DLI1E have not been claimed by WSSD, even though the result was achieved. DLI IN00987299 TABLE DLI 2: DLI#2:Strengthened capacity of key sector institutions (percentage of sanctioned staff maintained, trained and equipped every year in key sector institutions as per the Annual Capacity Dev Plan) (Percentage) March 31, March 31, March 31, March 31, March 31, September March Baseline Total 2015 2016 2017 2018 2019 30,2019 31,2020 Original values 20.00 75.00 75.00 75.00 75.00 75.00 0.00 75.00 Actual values 75.00 81.00 77.00 71.00 70.00 0.00 67.00 6,000,000. 6,000,000. 6,000,000. 5,380,000. 5,380,000. 0.00 5,380,000. Allocated amount ($) 34,140,000.00 00 00 00 00 00 00 Page 45 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) 5,390,385. 5,264,648. 5,648,487. 0.00 10,064,477 4,993,443. Disbursed amount ($) 0.00 31,361,441.74 00 98 01 .75 00 Comments (achievements against targets): Baseline value for DLI 2 is " An average of 20 % of sanctioned positions remains vacant in key sector institutions and there is no needs based capacity development plan". This is put here as in the data sheet the related box takes only numerical values. DLI 2 Results: The results up to March 2020 was also 67% as per the IVA verification done. The staff in positions over the years was FY2015 – 75%, FY2016 – 81%, FY2017 – 77%, FY2018 – 71%, FY2019 – 70%, FY2020 – 67%.WSSD was not able to maintain the required level of staffing at least up to 75% in the latter years, due to freeze by the GoM on regular recruitments in the sector. WSSD decided to continue some key posts like Dy. CEO in the Jal Jeevan Mission. The allocations shown here are based on those estimated in the PAD. They were not changed during Restructuring in January 2019. The actual disbursements are showing more than allocations due to the exchange rate differences between SDR and USD at various times, when the disbursements happened. The disbursements against FY 18 and FY 19 are respectively USD 5,129,147.90 (done on April 10, 2019), USD 4,935,329.85 (done on July 30, 2019). These have been clubbed together (Total USD 10,064,477.75 ). For FY 20, the disbursement of 4,993,443.00 ( done on February 5, 2021) has been provided against the head of March 31,2020. DLI IN00987300 TABLE DLI 3: DLI#3: Commissioned Peri-Urban Water Supply Systems (Number) March 31, March 31, March 31, March 31, March 31, September March Baseline Total 2015 2016 2017 2018 2019 30,2019 31,2020 Original values 0.00 0.00 0.00 0.00 0.00 10.00 15.00 21.00 Actual values 0.00 0.00 0.00 0.00 0.00 0.00 45.00 Allocated amount ($) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Page 46 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) Disbursed amount ($) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Comments (achievements against targets): This DLI 3 was sub-divided into four DLRs after the first restructuring of January 11, 2019. There were no revised allocations to this main DLI 3, but only its name was changed. DLI IN00987301 TABLE DLI 3.1: DLI 3 (a) - Domestic Metering Policy Adopted (Yes/No) March 31, March 31, March 31, March 31, March 31, September March Baseline Total 2015 2016 2017 2018 2019 30,2019 31,2020 Original values No Yes Actual values No Yes 0.00 0.00 0.00 7,451,043. 0.00 0.00 Allocated amount ($) 0.00 7,451,043.20 20 0.00 0.00 0.00 0.00 7,451,043. 0.00 Disbursed amount ($) 0.00 7,451,043.20 20 Comments (achievements against targets): "As included in the Program Restructuring Paper of January 11, 2019, Domestic Metering Policy means a policy statement adopted by the WSSD for providing domestic water meters in peri-urban Gram Panchayats, inter alia clarifying the responsibilities of different stakeholders and specifying the procurement, installation, cost-sharing, operation and maintenance obligations." DLI 3a Results: The target for WSSD to adopt the policy was March 31, 2019. Domestic Metering Policy was adopted by WSSD. The amount shown as allocation was the actual amount disbursed. Page 47 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) DLI IN00987302 TABLE DLI 3.2: DLI 3(b) - Number of peri-urban systems for which work contracts have been signed (Number) March 31, March 31, March 31, March 31, March 31, September March Baseline Total 2015 2016 2017 2018 2019 30,2019 31,2020 Original values 0.00 0.00 0.00 0.00 0.00 46.00 0.00 0.00 Actual values 0.00 0.00 0.00 0.00 0.00 46.00 0.00 0.00 0.00 0.00 7,451,059. 0.00 0.00 Allocated amount ($) 0.00 7,451,059.88 88 0.00 0.00 0.00 0.00 7,451,059. 0.00 Disbursed amount ($) 0.00 7,451,059.88 88 Comments (achievements against targets): The allocations were based on the first restructuring done in January 2019. DLI 3b Results: Work contracts were signed for all the 46 peri-urban systems, and verification of the result was completed. Bank disbursed the funds in June 2019. DLI IN00987303 TABLE DLI 3.3: DLI 3 (c) - Number of peri-urban water supply systems commissioned (Number) March 31, March 31, March 31, March 31, March 31, September March Baseline Total 2015 2016 2017 2018 2019 30,2019 31,2020 Original values 0.00 0.00 0.00 0.00 0.00 10.00 15.00 21.00 Actual values 0.00 0.00 0.00 0.00 0.00 0.00 18.00 Page 48 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) 0.00 0.00 0.00 3,210,000. 4,830,000. 6,750,000. Allocated amount ($) 0.00 14,790,000.00 00 00 00 0.00 0.00 0.00 0.00 0.00 5,716,326. Disbursed amount ($) 0.00 5,716,326.99 99 Comments (achievements against targets): The targets shown were based on the first restructuring done in January 2019. The respective allocations made after the restructuring were converted into USD (@ 1 SDR = 1.4 USD) and shown. DLI 3c Results: The actual disbursements were made based on the claims made by WSSD against 18 schemes commissioned by March 2020. By the Program closing date, 45 schemes were commissioned, but WSSD did not claim additional disbursements, to limit the total disbursements from the Bank to the total expenditure made by WSSD. DLI IN00987304 TABLE DLI 3.4: DLI 3 (d) - Number of house connections to a commissioned peri-urban water supply system (Number) March 31, March 31, March 31, March 31, March 31, September March Baseline Total 2015 2016 2017 2018 2019 30,2019 31,2020 Original values 0.00 0.00 0.00 0.00 0.00 13,656.00 21,918.00 32,521.00 Actual values 0.00 0.00 0.00 0.00 0.00 0.00 12,169.00 0.00 0.00 0.00 4,440,000. 7,130,000. 1,058,000. Allocated amount ($) 0.00 12,628,000.00 00 00 00 0.00 0.00 0.00 0.00 0.00 1,342,973. Disbursed amount ($) 0.00 1,342,973.88 88 Comments (achievements against targets): Page 49 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) The targets shown are based on the restructuring done in January 2019. The allocations shown were based on the final restructuring done in Sept 2020 (cancelling USD 5m), and converting SDR into USD (@1SDR = 1.4 USD). DLI 3d Results: A total of 48058 connections were made in the commissioned peri-urban schemes by March 2020.The actual disbursement was made in February 2021 against 12169 connections, which were verified by the IVA and accepted by the Bank. Disbursements against the balance results were not claimed by WSSD, to keep the total disbursements matching the total Program expenditure. DLI IN00987305 TABLE DLI 4: DLI#4: Service Delivery in Peri-Urban water supply systems (Number) March 31, March 31, March 31, March 31, March 31, September March Baseline Total 2015 2016 2017 2018 2019 30,2019 31,2020 Original values 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Actual values 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Allocated amount ($) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Disbursed amount ($) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Comments (achievements against targets): This DLI was revised as per the Program Restructuring Paper of January 11, 2019 and restructured into DLRs 4A and 4B. DLI IN00987306 TABLE DLI 4.1: DLI 4 (a) - Number of peri-urban water supply systems with a suitable O&M model adopted (Number) March 31, March 31, March 31, March 31, March 31, September March Baseline Total 2015 2016 2017 2018 2019 30,2019 31,2020 Original values 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Page 50 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) Actual values 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Allocated amount ($) 0.00 0.00 0.00 0.00 1.00 1.00 1.00 3.00 Disbursed amount ($) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Comments (achievements against targets): This DLI was not eligible for disbursement as per the condition set during the Program extension in March 2020, and so no allocations are shown. ( As the portal does not take zero value against the revised targets, a nominal 1.0 $ allocation amount has been shown) DLI IN00987307 TABLE DLI 4.2: DLI 4 (b) - Number of peri-urban Gram Panchayats meeting service delivery standards (Number) March 31, March 31, March 31, March 31, March 31, September March Baseline Total 2015 2016 2017 2018 2019 30,2019 31,2020 Original values 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Actual values 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Allocated amount ($) 0.00 0.00 0.00 0.00 1.00 1.00 1.00 3.00 Disbursed amount ($) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Comments (achievements against targets): This DLI was not eligible for disbursement as per the condition set during the Program extension in March 2020, and so no allocations are shown. ( As the portal does not take zero value against the revised targets, a nominal 1.0 $ allocation amount has been shown) DLI IN00987308 TABLE Page 51 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) DLI 5: DLI#5: No. of Community Safe and Secure Water Supply Systems (CSSWS) (Number) March 31, March 31, March 31, March 31, March 31, September March Baseline Total 2015 2016 2017 2018 2019 30,2019 31,2020 Original values 0.00 0.00 0.00 0.00 0.00 111.00 80.00 23.00 Actual values 0.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00 0.00 0.00 5,540,000. 4,000,000. 1,150,000. Allocated amount ($) 0.00 10,690,000.00 00 00 00 0.00 0.00 0.00 0.00 0.00 4,990,854. Disbursed amount ($) 0.00 4,990,854.35 35 Comments (achievements against targets): The allocations shown here are based on the allocations made at the Program extension in March 2020, after converting SDR to USD (@ 1 SDR = 1.4 USD). DLI 5 Results: As of March 31, 2020, against the revised target of 214 schemes as per the restructuring, 148 small schemes were commissioned. The disbursement was made in January 2020, against the claimed 100 commissioned schemes by WSSD. The balance 48 schemes were not claimed by WSSD, even though eligible, to make disbursements not exceed Program expenditure. ANNEX 1C. PROGRAM ACTION PLAN PAP_TBL Achieved Action Timing Completion Measurement (Yes/No) 1. Strengthen complaint and grievance Recurrent Yearly Yes A functional system, annual publication of redress mechanisms within WSSD at the complaints/grievances received and actions taken, state level to handle complaints publishing such information, and clarity on Page 52 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) (Information collection, track remedies, mechanisms to monitor vigilance cases. aggregate annually and disclose). Establish mechanism to track top level vigilance cases. Comments: General comment for All Action Plans: "The PAP were revised at the time of first restructuring in January 2019. The results achieved against the revised PAP are assessed for each of the nine revised Action Plans." PAP1: The Program had started using state level Chief Minister’s web-based help line for grievance redressal since April 2019. A GRM module was incorporated and tested in the state M&E system to manage grievances from all sources. Improvements for complaints categorization, strengthening escalation, tracking in the M&E system were under implementation at the time of Program closure. 2. Strengthen RWSS planning processes in Recurrent Yearly No Plans prepared and used for the sector at least 6 districts, and review its effectiveness by the end of the Program Comments: The Annual Plans were made in four districts - Pune, Raigad, Satara and Bhandara, with the help of MIT team. The intervention priorities have been identified. WSSD is yet to capture them in the annual plans for funding under Jal Jeevan Mission (JJM) - the current National Rural Water Program. However, WSSD has committed to adopt the system, under JJM for all districts. 3. Refine the current O&M policy of GoM Due Date 30-Sep-2019 No O&M policy document agreed and establish and institutionalize technical and administrative back-up support Page 53 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) mechanism for GPs/VWSCs Comments: O&M policy for the Program was prepared. Based on the Program experience, WSSD to adopt the policy for the sector. This PAP has been partially achieved. As there is no provision to show partial achievement in the ICR document as such, which has only two options - Yes / No, the achievement has been rated No. 4. Strengthen institutions to better Recurrent Semi-Annually Yes Units created at the districts and they function manage the sanitation program of the state, assess areas of weakness (particularly in relation to ODF slip back), and take mitigation actions as needed, by Year-2 Comments: WSSD created a separate unit headed by Dy CEO (WATSAN), with support staff, at each of the districts. This unit worked well to make the state ODF. Government Resolution was issued in November 2020 for retaining the Dy CEO (WATSAN) position for all 34 districts, under JJM. The position has been renamed as District Project Director. The district units headed by District Project Director continue to focus on ODF sustainability. 5. Adopt a suitable HR policy for the sector Due Date 30-Jun-2019 Yes HR Policy or suitable directives notified Comments: The WSSD reviewed all the existing government rules and regulations that govern HR management, both regular staff and those hired from the open market. Based on this review, the WSSD adopted feasible good practices to attract, train and retain required HR skills. 6. Compile the rules and procedures on Due Date 30-Aug-2019 Yes Compiled procedures available procurement of works into a procurement Page 54 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) manual Comments: For procurement of works, WSSD compiled Marathi versions of the rules and published in their websites. 7. Conduct procurement post-review Recurrent Yearly Yes Annual Procurement audit conducted on a regular basis, covering at least 15% of contracts issued every year in the RWSS sector. Comments: Regular procurement audit was not done. Only one audit was done towards the end of the Program and report shared with Bank. Bank shared its comments with WSSD for compliance. 8. Establish a system to report information Recurrent Yearly No Information available regularly on expenditure at all levels; carry out district-level, block level and GP level audits as per specific ToRs Comments: Compilation of expenditures was delayed. WSSD developed formats and started monitoring closely. Expenditure tracking in the M&E system was being done at the time of Program closure. 9. Implement strengthened Recurrent Continuous Yes Environmental and social procedures adopted environmental and social management during scheme implementation rules and procedures for the Program, supported by necessary capacity building Page 55 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) measures for sector institutions. Comments: Procedures for environmental management have been strengthened and guidelines followed during Program implementation. On social issues, land transfer in revenue records was in process; good success stories on social management documented. Page 56 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION A. TASK TEAM MEMBERS Name Role Preparation Raghava Neti Task Team Leader(s) Priti Jain Procurement Specialist(s) Neha Gupta Financial Management Specialist Mridula Singh Social Specialist Radha Narayan Procurement Team Mariappa Kullappa Team Member Nirmala Chopra Team Member Payal Malik Madan Procurement Team Charu Jain Environmental Specialist Supervision/ICR Raghava Neti Task Team Leader(s) Priti Jain Procurement Specialist(s) Neha Gupta Financial Management Specialist Mridula Singh Social Specialist Radha Narayan Procurement Team Mariappa Kullappa Team Member Nirmala Chopra Team Member Payal Malik Madan Procurement Team Charu Jain Environmental Specialist Page 57 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) B. STAFF TIME AND COST Staff Time and Cost Stage of Project Cycle No. of staff weeks US$ (including travel and consultant costs) Preparation FY11 2.980 14,446.59 FY12 34.371 188,995.91 FY13 83.927 434,926.89 FY14 31.120 111,003.97 Total 152.40 749,373.36 Supervision/ICR FY14 9.430 43,159.21 FY15 14.560 93,364.69 FY16 22.426 83,703.94 FY17 19.208 206,299.74 FY18 15.037 139,875.09 FY19 21.402 164,344.77 FY20 27.689 156,537.37 Total 129.75 887,284.81 Page 58 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) ANNEX 3. PROGRAM EXPENDITURE SUMMARY Source of Program Type of Co- Estimates at Actual Expenditures (Disbursement) Financing Financing Appraisal (USD, Actual (USD, Percentage Percentage of millions) millions) of Actual Appraisal World Bank - 165 80.62 48.86 76.91 Borrower - 70 24.21 34.58 23.09 Total 235 104.83 44.61 Note: a. World Bank funding at approval was US$165 million, equivalent to SDR 107.2 million. b. The GoM’s contribution at approval was US$70 million, equivalent to SDR 31.9 million . c. At appraisal, the cost sharing ratio between the Bank and GoM was agreed as 70% Bank: 30% GoM, based on the minimum counterpart funding formula of DEA for state sector projects. d. The total expenditure including the borrower’s contribution has been sourced from WSSD’s annual budget book (demand for grants) available online, which has a separate line item for the PforR (as Jalswarajya Project), as provisioned for in the PAD. The figure includes actual expenditure for 2014-19 and revised estimates for 2020-21.The borrower’s contribution in USD has been taken as per the average exchange rate of 1USD=INR 69.10; corresponding to the final Bank disbursements of 80.62 USD millions ( INR 5570.47 millions) e. The audited program financial statements for FY19–FY20 and FY20–FY21 (up to September 30, 2020), covering the Bank’s share of program costs, were yet to be received at the time of ICR submission and are taken as reported by the RSPMU. Page 59 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) ANNEX 4. BORROWER’S COMMENTS 1. Water Supply and Sanitation Department, Government of Maharashtra has reviewed the Implementation Completion and Results Report (ICR) of the Maharashtra Rural Water Supply and Sanitation Program ( Jalswarajya II Program) and mentioned the ICR as comprehensive and well documented, in their letter. The detailed Borrower’s comments as per the Annex of the letter are as below. 2. Maharashtra Rural Water Supply & Sanitation Program (MRWSSP) was third World Bank assisted program in Maharashtra for water supply & sanitation sector in last three decades. The program is commonly called as Jalswarajya – 2 Program. Jalswarajya means own governance over water, this in the reference to rural communities signifies their involvement in planning, operations and maintenance of their own water supply systems. The objectives of the MRWSSP was set accordingly and the state has achieved all those goals albeit some goals are achieved after the program period. All the World Bank assisted programs in WSS sector of Maharashtra have set some important precedents which were built upon by us, eventually adopted by other states, and even at national level. Government of Maharashtra is already implementing certain aspects through Jal Jeevan Mission and is hopeful that interventions demonstrated in the program are likely to be adopted at large scale in future. 3. Jalswarajya-2 Program is first P for R program in India and as rightly mentioned in the report, the practical problems arising during implementation could not be perceived in its conception. There were major challenges and multiple mid-course corrections. Government of Maharashtra has conducted large scale capacity building programs to align its institutions and human resources to adopt P for R approaches. As the entire program was result based, the fear of failure to achieve the result would warrant prosecution resulted in stiff resistance initially. This all was overcome by the consistent capacity building and IEC. Initial years of the program were marred by regular delays due election code of conduct, building capacities, exerting compliance requirements of program and creating higher standards for designing program and its reports. These initial delays had direct effect on subsequent year’s achievements which resulted in delaying implementation & hence, needed restructuring. However, the spirit of co-operation, constant focus on PAD and World Banks flexibility has allowed mid-course corrections to turn a fledging program to successful one. 4. The program, while underlining certain important underlying principles has achieved some major milestones for rural water supply & sanitation sector, these include: • Water meter policy for rural household drinking water connections, first of kind in the country. This has underlined the awareness of cost of water, infrastructure, and its maintenance thus highlighting need for continuity of right consumption. • Comprehensive Monitoring & Evaluation System for entire Water Supply & Sanitation Sector, for village officials at Gram Panchayat to state level administrative head, also advocates evidence based decision making. • Village wise groundwater monitoring network maintained through community participation. Initial network of nearly 4000 observation wells is now upscaled to nearly 33000 observation wells and monitored at lower costs with community participation. The information generated has been very useful in tackling drinking water scarcity & developing solutions thereon. Page 60 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) • Aquifer Management initiatives in over exploited areas were highly successful in demonstrating the impact of conservation measures, public participation, and water accounting in groundwater management and learnings from it were carried in to implementation of Atal Bhujal Yojana. • The vast network of Water Quality testing laboratories at regional, district and sub-divisional level (total 181) strengthened under Jalswarajya – 2 program improved drinking water quality monitoring and surveillance in the state ensuring the quality check of water delivery to citizens. Under this initiative, State also achieved highest number of NABL accredited laboratories in the country (6 regional and 18 district level laboratories) till July 2021. • With new infrastructure, teaching & technical collaborations, Maharashtra Environmental Engineering Training & Research Academy (MEETRA), Nashik is now poised to claim its place as an important National level institute for training & Capacity building institution for Water Supply & Sanitation Sector. • Social and environmental interventions developed under the program were adopted by the state for other water supply programs of the state. The state has already deployed the learnings of this program in formulation of strategy and implementation of Jal Jeevan Mission wherein we are planning the metallic tank storage based supply systems in water stressed areas, VAP for planning and, the aquifer management demand and supply side intervention strategies with water efficient cropping techniques for Atal Bhujal Yojana. 5. Thus, the implementation of the first P for R program in the country provided many learnings to Government of Maharashtra as well as to the World Bank. In pre-restructuring period state government could not get major disbursement for Jalswarajya-2 Program as 60% disbursement was tied purely to the DLI’s relating to end results which could be achieved only in 4th or 5th year, so state has to achieve from remaining 40% of which only 15-20% was scheduled for initial years. This also makes one wish that the decision making for changes in DLI’s. This provided major lesson to plan DLI’s simpler, achievable and to have break up of DLI’s for certain intermediate results within DLI. Secondly, the extension of program by one year specially in COVID – 19 pandemic would have been beneficial in achieving all the targets, for we have to keep in perceptive the fact that it’s the funding instrument for sensitive public infrastructure development project. 6. The involvement of World Bank team and its expert was thorough, timely, collaborative, focused and provided excellent support. The outcomes of the program are highly satisfactory for the state and the state looks forward in creating better service delivery standards in water and sanitation sector with the World Bank Partnership. Response to Borrower’s Comments by the ICR Author: The Maharashtra Rural Water Supply and Sanitation Program (Jalswarajya II) being the first PforR operation in the water sector in India has been a learning experience for GoM as well as the Bank. While due diligence was carried out for developing the Program results, the roll out of the “results-based approach” was a big challenge when government staff are used to a very different modality of project design and implementation that they have followed for decades. Despite the implementation challenges, GoM achieved some landmarks in the sector including domestic water metering policy and accreditation of water quality testing laboratories. GoM’s recognition of the Bank’s team support are appreciated. Page 61 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) ANNEX 5. SUPPORTING DOCUMENTS 1. December 21, 1998, Implementation Completion Report, Maharashtra Rural Water Supply and Environmental Sanitation Project (P010369) 2. June 28, 2010, Implementation Completion and Results Report, Maharashtra Rural Water Supply and Sanitation Project “Jalswarajya” (P073369) 3. March 21, 2013, India Country Partnership Strategy (CPS), FY 13–FY17, Report No. 76176-IN 4. February 13, 2014, Project Appraisal Document, Maharashtra Rural Water Supply and Sanitation Program, Report No. 76172-IN 5. May 30, 2014, Financing Agreement, Credit No. 5375-IN, Maharashtra Rural Water Supply and Sanitation Program 6. May 30, 2014, Project Agreement, Credit No. 5375-IN, Maharashtra Rural Water Supply and Sanitation Program 7. July 25, 2018, India Country Partnership Framework (CPF), FY18–FY22 , Report No. 126667-IN 8. January 11, 2019, Restructuring Paper, Report No. 124340-IN 9. March 18, 2020, Restructuring Paper, Report No. RES40759 10. March 30, 2020, Restructuring Paper, Report No. RES41042 11. June 30, 2020, Restructuring Paper, Report No. RES42117 12. September 30, 2020, Restructuring Paper, Report No. RES43602 13. 2019–20, National Annual Rural Sanitation Survey (NARSS) Reports 14. 2012–21, Implementation Status Reports (15 ISRs) 15. Aide Memoires of the World Bank Missions and Management Letters 16. Project Manual, Maharashtra Rural Water Supply and Sanitation Program Page 62 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) ANNEX 6. MAP Page 63 of 64 The World Bank IN Maharashtra Rural Water Supply and Sanitation Program (P126325) ANNEX 7. Changes in Program Action Plan (PAP) 1. The PAP was adjusted in line with the first restructuring of the Program with the following key changes: a. It was considered that the sector vigilance mechanism was following its own standard protocol beyond the remit of WSSD. This necessitated an amendment to PAP 1. b. PAP items 2 and 5 were repeated in DLIs/Results and hence dropped. c. PAP 3 targets reduced based on feasibility. d. PAP 4 and PAP 7 addressed the same topic and were hence merged under PAP 4. e. The GoM decided to merge MJP with its parent department WSSD. Hence, PAP 10 was dropped. f. PAP 8 was revised to reflect the directives of the latest Government Resolutions on procurement g. PAP 11 was revised to reflect the collection of expenditure data at different local government levels. Table A7.1 . PAP Before and After Restructuring PAP Before Restructuring PAP After Restructuring 1. Strengthen existing complaint and grievance redress and vigilance mechanisms 1. Strengthen complaint and Grievance Redress Mechanisms within WSSD at the state level to handle complaints related to procurement, (GRM) within WSSD at the state level to handle complaints financial management, service delivery, environmental and social aspects, and (Information collection, track remedies, aggregate annually and fraud and corruption issues under the Program. Information on complaints and disclose). Establish mechanism to track top level vigilance cases. remedial actions taken will be aggregated annually and publicly disclosed. 2. Prepare and implement an Annual Capacity Development Plan for key sector Dropped institutions (DWSM,WSSO and BRCs) focused on developing both individual competencies and collective capabilities (resources, tools and assets) 3. Strengthen RWSS planning processes in Year 1 and review their effectiveness in 2.Strengthen RWSS planning processes in at least 6 districts, and Year 3 and Year 5. review its effectiveness by the end of the Program 4.Establish and institutionalize a technical and administrative back-up support 3. Refine the current O&M policy of GoM and establish and mechanism for GPs/VWSCs. institutionalize technical and administrative back-up support mechanism for GPs/VWSCs. 5.As part of the state’s M&E system, establish a system to monitor the “schedule Dropped performance” (extent of compliance with time schedules) of completed rural water supply schemes. 6. Strengthen institutions to better manage the sanitation program of the state, 4. Strengthen institutions to better manage the sanitation assess areas of weakness (particularly in relation to ODF slip back), and take program of the state, assess areas of weakness (particularly in mitigation actions as needed. relation to ODF slip back), and take mitigation actions as needed, by Year-2 7. Prepare and adopt comprehensive HR policy for the sector to attract and retain 5. Adopt a suitable HR policy for the sector talent/skills, and review and revise O&M policy based on comprehensive diagnostics of affordability and complexities of schemes. 8. Compile the rules and procedures on procurement, including for selection of 6. Compile the rules and procedures on procurement of works consultant services, into a comprehensive procurement manual for the RWSS into a procurement manual. sector and adopt it. 9. Conduct procurement post-review on a regular basis, covering at least 15% of 7. Conduct procurement post-review on a regular basis, covering contracts issued every year in the RWSS sector. at least 15% of contracts issued every year in the RWSS sector. 10. Establish double-entry accounting system at all levels in MJP, including Dropped simplification of formats for annual audited financial statements, and development of entity Financial Management Manual. 11. Establish a system to report information on expenditure at GPs/VWSCs; carry 8. Establish a system to report information on expenditure at all out district-level and GP-level audits as per a specific ToR. levels; carry out district-level, block level and GP level audits as per specific ToRs. 12. Implement strengthened environmental and social management rules and 9. Implement strengthened environmental and social procedures for the Program, supported by necessary capacity building measures management rules and procedures for the Program, supported for sector institutions. by necessary capacity building measures for sector institutions. Page 64 of 64