INDIARajasthan Agricultural Competitiveness Project (Cr. 5085-IN)

Fourth Implementation Review & Support Mission: March 9 to 12, 2015 AIDE-MEMOIRE

I. Introduction

1. A World Bank Mission1 visited Rajasthan from March 9 to 12, 2015 to conduct the fourth implementation review & support mission of the Rajasthan Agricultural Competitiveness Project (RACP). The main objective of the mission was to work with Government of Rajasthan (GoR), Rajasthan Agricultural Competitiveness Project Management and Implementation Society (RACP-MIS), and the participating line departments, on project restructuring, to address the observed problems in project implementation. The mission also assessed the overall implementation progress, reviewed the progress of actions agreed during the previous mission, status and performance of procurement and financial management aspects of the project, compliance with the environmental and social safeguard requirements, and monitoring and evaluation of the project.

2. The mission held detailed discussions with the Additional Chief Secretary – Agriculture, Principal Secretary - Finance, staff of the Project Management Unit (PMU) and the nodal officers of the six Project Implementation Units (PIUs), and the partner agency (ARAVALI). The consolidated findings and recommendations of the mission, including follow up actions were discussed and agreed at a wrap-up meeting held on March 12, 2015 and chaired by Mr. C. S. Rajan, Chief Secretary– GoR, and attended by head of the participating line departments, and senior officers of the implementing agencies and Project Management Unit (PMU) of RACP-MIS. List of people met during the mission is given in Annex 1.

3. This Aide-Memoire summarizes the Mission’s findings and agreements reached. The Bank team would like to extend its gratitude to the officials and technical staff met and to staff of the PMU particularly to Mr. Sampatram, and Mr. Ojha (Project Director), respectively, for the support provided throughout the mission stay in Rajasthan.

Key Project Data

Key Project Data Key Performance RatingsBoard DateEffectiveness dateClosing dateProject ageOriginal IDA AmountAmount Disbursed (as on March 31, 2015)

March 27, 2012 July 02, 2012April 30, 20193 years SDR 65.90 millionUS$ 1.11 million (1.1% disbursed)

Summary RatingsAchievement of PDO

Implementation ProgressOther Ratings

Project ManagementFinancial Management

ProcurementMonitoring & Evaluation

LastMUMU

MUMSMUMU

Now MU MU

MU MS MU MU

Ratings: MS = Moderately Satisfactory; MU = Moderately Unsatisfactory;

1 Mme./Messrs., Manivannan Pathy (TTL and Sr. Agricultural Specialist), Samuel Taffesse (Sr. Operations Officer), Anju Gaur (Sr. Water Resources Specialist), Helen Winifred Leitch (Sr. Livestock Specialist – Consultant, FAO-CP ), Jacqueline Julian (Operations Analyst), Priti Jain (Sr. Procurement Specialist), Savinay Grover (Financial Management Specialist), and Varun Singh (Sr. Social Development Specialist).

1

99512

II. Project rationale, Current Status and Project Restructuring:

4. The Project Development Objective (PDO) of RACP is to establish the feasibility of sustainably increasing agricultural productivity and farmer incomes, through a distinct agricultural development approach, by integrating agriculture, water management and agricultural technology, farmer organizations and market innovations in selected locations, across the ten agro-ecological zones of Rajasthan. The aim is for the state to help farmers get more rupees per unit of water in compensation for farmers using fewer units of water.

5. The aim of the project is to help farmers get more rupees per unit of water utilized thereby to create an incentive mechanism for farmers to move to a more water efficient agricultural production system. RACP is developing and implementing large scale pilots for demonstrating integrated planning of water resources (in three different hydrological scenarios – viz., groundwater aquifer, watershed and canal water system) in conjunction with productivity improvement and comprehensive development of value chain. RACP, being one of its kind multi-sectoral interventions, is conceptually demanding and operationally challenging.

6. RACP was approved by the World Bank Board in March 2012 and the credit became effective in early July 2012. However, the core management functionality of the RACP, which the Bank was led to understand to be fully in place, was significantly eroded, post project approval. The Project has also seen very frequent change of the Project Director, Chief Financial Controller and other senior officers of the PMU. Without a fully functional PMU during the initial project period and with frequent change of the Project Director and key project staff, implementation has suffered and the progress has been very slow. As of March 2015, the project has disbursed only US$1.1 Million out of the IDA Credit (or 1%), in contrast to the original plan of US$ 16.50 million. This has led to a disbursement lag of 28 months. This is a reflection of works not being initiated on the various project components, and it translates into delayed or lost benefits to the intended farmer beneficiaries. Given this background and progress thus far, all ratings for RACP, except for financial management, are retained at Moderately Unsatisfactory. This puts the project in a critical juncture. After more than two years and eight months since project effectiveness, progress in project implementation is dismal, requiring the immediate resolve of all involved in addressing bottlenecks facing the project. From the Bank’s perspective, it is ready to provide close monitoring, providing all the technical support required and improving the capacity of the PMU and others as required to quickly restarting and revitalizing project implementation.

7. To overcome the challenges in project design and implementation, the GoR developed a restructuring proposal and shared with the Bank team before the mission. The key elements of the GoR’s restructuring proposal includes: (i) addition of new geographic area as new project operational area; (ii) change to applicable procurement guideline and institutional responsibility; (iii) addition of new activities; (iv) change in implementation arrangement; and (v) change in financial management, specifically flow of project fund that will now follow country systems. The participating line departments, the PMU and the Bank team jointly reviewed the restructuring proposal and the following were agreed –

a. Inclusion of Four Water Concept in the project design: The project was designed around clusters to demonstrate water resource management interventions, with respect to dominant form of water availability in the given cluster. The aim was to balance the different forms of water, while considering the interaction of the linked sectors of agriculture and energy. The four water concept is essentially optimizing the use of rainfall, surface water, ground water and soil moisture. These forms of water have been very well considered while conceptualizing the project and the project would further focus at making use of this concept. Following the four water concept, the project area, where feasible, shall comprise of catchment and command area, integrating the conservation of rain water, surface water, ground water and soil moisture. Boundaries for project interventions shall be around

2

the command areas and potential drainage line areas of the upper catchments, complying with the overarching principles of four water concept.

b. Project geographies: Of the approximate twenty clusters to be supported under the RACP, a total of seventeen have been finalized, based on the RACP’s water principles and taking into consideration production parameters and opportunities for development of commodity specific value chains (see table below). These clusters cover eight of the ten Agro-Climatic Zones (ACZ) of the state and have seven clusters under surface irrigation system, seven under watershed and three under groundwater.

Agro Climatic

Zone

District Major water source for agriculture

Name of Cluster Area under the cluster (approx.)

Ib Sri Ganganagar Surface Water Z-distributary 12218 ha

Ic Bikaner Surface Water Phoolasar Distributary 17970 ha

Jaisalmer Surface Water Kheruwala Distributary 20965 ha

IIa Nagaur Watershed (Index Catchment)

Ladnu 14527 ha

IIIa Jaipur Watershed Mokhampura 10240 ha

Ajmer Ground Water Pisangan 25000 haTonk Watershed Dooni-Deoli 12746 ha

IIIb Alwar Watershed Bansur 12935 haSwaimadhopur Ground Water Bonli 31000 ha

Dholpur Watershed Bari 12387 ha

IVa Chittorgarh Surface Water Orai and Bassi -Irrigation Projects

12510 ha

Watershed Orai and Bassi -Catchment Area

5458 ha

IVb Paratapgarh Surface Water LMC of Jakham -Irrigation Project

19529 ha

Watershed Jakham -Catchment Area 4188 ha

Banswara Watershed Kushalgarh 12022 haV Baran Surface Water Palaitha 8003 ha

Bundi Surface Water Gudha Irrigation Project 11380 ha

Watershed Gudha -Catchment Area 7687 ha

Jhalawar Watershed Manoharthana 8988 haKota Ground Water Sangod 16500 ha

Note: i. Livestock related activities will be implemented as per the need assessment of the individual

cluster. ii. Geography of clusters identified in Banswara and Jhalawar districts may be changed. At the

wrap-up meeting, GoR sought the support of the project for the construction of minor / micro tanks and associated activities for catchment development, along with command area development in these two districts. The Bank’s mission opined that, though such activities would be in cognizance with RACP design, however, since there are no existing minor irrigation tanks in these districts, de-novo construction of such tanks would entitle a fresh look at the cumulative impact of social and environmental safeguards of the project and could possibly result in change

3

of the safeguard risk category from Category B to Category A. This would also lead to the change in the Bank’s internal processes of approval of the restructuring proposal

c. Revised Implementation Arrangements: Implementation would be through the six line departments viz. Agriculture, Horticulture, Animal Husbandry, Water Resources (Canal), Ground Water, and Watershed (within Rural Development). In each of these participating line departments Project Implementation Unit (PIU) headed by a Nodal Officer from the respective line department has been established to facilitate activities associated within the respective line departments and to coordinate between the line department and PMU. The respective PIU will function under the overall guidance and control of the respective head of the department and will coordinate closely with the PMU and oversee field level implementation of activities of their department district. The line departments will be provided with technical assistance and advisory services as needed to execute their respective activities. It was agreed that for this implementation arrangement to be successful, participating line departments will provide dedicated manpower to the PMU, PIU and at the district level. To support the implementation activities, project will also contract additional manpower, as needed. Community mobilization, formation of Producer Groups and Producer Organizations would be done through service provider / NGOs. It was also agreed that based on the changes in the implementation arrangements, the operational manual would be updated which will also include the coordination mechanism at the district level.

d. Revised Procurement Arrangements: Procurement will be carried out by the PMU, PIU’s of the six line departments with option of small but time sensitive procurement requiring expedited implementation being procured at the decentralized level. To account for the changes, the procurement manual and procurement plan is being revised. (See section III below for details)

e. Revised Financial Management and Funds flow Arrangements: Following the change in institutional arrangement, financial management has been revised to reflect the participation of six new line agencies through their respective PIUs. In addition, financial management will now follow country system. Therefore, in addition to the PMU, Mokumpura DPMU, ARAVALI and the Universities, six line departments will also be involved in financial management. While ATMAs are also being proposed as DPMUs, they will not be receiving any funds under the project. Auditing and FMR will continue to be coordinated and sent by the PMU. However, to ensure smoother transition to the new funds flow and FM arrangements, an interim arrangement has been agreed wherein till revised arrangement comes into effect by June 30, 2015, payments would be done by PMU. To account for the changes, the financial management manual is being revised and same would be submitted for the Bank’s review and clearance.

f. Annual Action Plan: The mission brought to the attention of the line department that the next three months will be a period dedicated to initiate start-up activities, prepare for the Monsoon season and finalize procurement documents for starting actual works at field level. With that background, the Bank team reviewed and discussed the project implementation plan prepared by the different line departments. Agreement was reached to revise the plans to realistically reflect what can be achieved in the next three months and during the next one year. The revised plan will be sent to the Bank by end of March 2015.

g. Sourcing of high quality bucks from RAJUVAS: A critical decision was taken to proceed with an MOU with RAJUVAS to implement a nucleus breed improvement program to build state capacity for production of high quality bucks. Under the restructured proposal eleven of the twelve target districts are sirohi track, RAJUVAS will be financed to support the Sirohi program. (See Annex 4 for details)

4

III. Procurement:

8. The mission introduced to the counterpart, Ms. Priti Jain- the Bank’s Senior Procurement Specialist, who will be the project’s procurement specialist going forward. Ms. Jain, representing the Bank mission, discussed future procurement arrangements and advised the counterpart that any procurement to be carried out by any of the Implementing Agencies (IAs) under the project needs to be incorporated in the procurement plan to be cleared by the Bank. Mission felt that the IAs need to familiarize themselves with the agreed processes and procedures, bid document and contract formats to avoid inconsistency or noncompliance. This becomes all the more relevant because of increased post review threshold. Mission felt that previously lack of proactive engagement by PMU, non-availability of requisite procurement officials, absence of procurement planning, led to delay in procurement. Given the project restructuring, the PMU will need to ensure that these areas of concern are expeditiously addressed. Based on the discussion held during the mission the PMU shall engage with respective line departments for preparation of a realistic procurement plan for next 12 months. The plan shall be based on agreed cost table and action plan and will be sent to Bank for review and clearance.

9. Procurement Manual: The Procurement Manual (PM) prepared during the project preparation requires thorough review to accommodate the changed implementation arrangements and the new business model (of increased threshold that was earlier communicated to the project authorities). Mission reviewed the revised draft PM prepared by the project and provided guidance for revising the same. The Mission explained that the Manual covers all essential procurement as per Bank's procedure and its finalization need not wait for the OGs to be finalized. The proposed changes of the manual should also take care of the procurement likely to be undertaken by RAJUVAS and other implementing entities that may emerge due the proposed restructuring. It was agreed that the revised and updated procurement manual will be submitted by the project along with the detailed restructuring proposal.

10. E-Procurement: Mission once again emphasized the need to the introduction of e-procurement for the project. Technical and advisory support that may be required to establish a functioning e-procurement can be provided by the Bank. The mission emphasized that e-procurement is now a mandatory requirement.

(See Annex 5 for details)

IV. Financial Management:

11. As of March 2015, disbursement stands at $1.1 million, which is about 1% of the IDA Credit. The mission noted that in principle the proposed FM arrangement is acceptable to the Bank. These changes in FM arrangement do presuppose the updating of the FM and Operational Manual and other related documents and guidelines.

12. During the mission the revised FM arrangements were discussed. The project will now be implemented primarily through six line departments using the existing government systems (country systems). While for procurement, the Bank's procurement guidelines will apply; for FM (budgeting, payment verification and release etc.), the government rules such as GFR and other departmental manuals will apply. The RACP Society will continue to play the project coordination role. Other than Mokumpura cluster which has already been created and is operational, no further DPMUs will be created under the RACP society. While ATMAs will be playing some of the roles of DPMUs, no project funds will flow to them. ARAVALI and the Universities will continue to remain as Partner Agencies. The project budget will be created under Department of Agriculture and will be distributed to DDOs in districts across the six line departments. The RACP FM staff will have read-only access to the IFMIS system to directly view DDO wise project budget and expenditure for reporting purposes. From the next FY (2015-16), separate

5

budget heads will be created for the project that will facilitate reporting under the project. The RACP Society FM staff has to hold discussions with treasury department to understand how community payments will be made by the line departments using the existing government systems. Bank would also need to carry out quick FM Assessment of the six line departments. The FM Manual will need to be updated to document the revised FM arrangement and would require Bank's no objection.

V. Safeguards:

13. The Mission met with the state project team and ARAVALI and held discussions on the restructuring proposal. The mission noted that the proposed ‘four water’ approach would translate into more integrated way of planning interventions and investments, including capturing of subsurface moisture through water tanks. The project is also considering inclusion of minor irrigation tanks in some districts and these would need to be screened for social and environment impact, and revisions would need to be made to the existing safeguard frameworks. In case of land acquisition requirements, the project would need to prepare resettlement plans as well as a resettlement framework and include them in the existing social management framework. Greater implementation role for line departments would mean more structured capacity building around environment and social safeguard mitigation measures. The Mission noted that the Environment and Social Development Specialist engaged earlier through the manpower agency have left the project. ARAVALI has held stakeholder workshops in many project clusters over last year. It also did analysis of potential areas that would be included in the restructured project. ARAVALI should prepare a formal training module on the Environment Management Framework and the Social Management Framework of this project, using internal or external resource persons and include this in their Annual Action Plan for FY15-16.

ANNEXES

Annex 1 List of officials met during the missionAnnex 2 Status Key Agreed Actions 3rd ISMAnnex 3 Key Agreed Actions for 4th ISMAnnex 4 Technical Notes – LivestockAnnex 5 Procurement assessment

6

Annex 1: List of Officials met during the mission

S. No. Name of Officer Designation

1. Sh. C.S. Rajan Chief Secretary, Rajasthan, Jaipur

2. Sh. Ashok Sampatram Addl. Chief Secretary, Agriculture, Rajasthan, Jaipur

3. Sh. B. K. Meena Addl. Chief Secretary, Horticulture, Rajasthan, Jaipur

4. Sh. Shreemat Pandey Principal Secretary, Rural Development & Panchyati Raj, Rajasthan, Jaipur

5. Sh. Rajeshwar Singh Principal Secretary, Animal Husbandry , Rajasthan, Jaipur

6. Sh. Kuldeep Ranka Commissioner and Secretary, Agriculture, Rajasthan, Jaipur

7. Sh. Akhil Arora Secretary, Planning, Rajasthan, Jaipur

8. Sh. Ajitabh Sharma Secretary, Water Resources, Rajasthan, Jaipur

9. Sh. Dinesh Kumar Secretary, PHED & GWD, Rajasthan, Jaipur

10. Sh. M. S. Kala Director, Watershed Development and Soil Conservation, Jaipur

11. Sh. Suraj Bhan Singh Chief Engineer, Ground Water Department, Jodhpur

Project Officials

12. Sh. L. C. Ojha Project Director, RACP, Jaipur

13. Sh. Arun Surana Nodal Officer and Jt. Director (Admin.) Watershed Development and Soil Conservation, Jaipur

14. Sh. J. S. Sandhu Nodal Officer and Jt. Director (Agriculture & Horticulture), Agriculture Department, Jaipur

15. Sh. Dilip Jain Nodal Officer and Superintending Engineer, Water Resources Department, Jaipur

16. Sh. Lal Singh Nodal Officer and Jt. Director, Animal Husbandry Department, Jaipur

17. Dr. Vir Pal Singh Project Coordinator (Project), RACP, Jaipur

18. Sh. Anurag Bhatnagar Project Coordinator (Horticulture), RACP, Jaipur

19. Sh. Rajendra Singh Project Director (Agriculture), RACP, Jaipur

20. Dr. Pritpal Singh Kalra Project Coordinator (Livestock), RACP, Jaipur

21. Sh. M. L. Maheshwari Project Coordinator (Surface Water), RACP, Jaipur

22. Sh. M. M. Kant Project Coordinator (Ground Water), RACP, Jaipur

23. Sh. Anand Singh Project Coordinator (Watershed), RACP, Jaipur

24. Sh. B. K. Maheshwari Nodal Officer and Sr. Hydro-geologist, Ground Water Department, Jaipur

25. Sh. Mukesh Gupta Ex.En. Water Resources

26. Sh. Rajeev Kulshrestha Asstt. Engineer, Watershed Development and Soil Conservation, Jaipur

27. Sh. Rajkumar Singh Dy. Manager (Agri.), RACP, Jaipur

7

Annex 2: Status Key Agreed Actions 3 rd ISM

Action By Whom By When Status

Detailed project restructuring to be submitted to the Bank, after due clearance from GoR and DEA with restructured project components and cost, implementation arrangements, funds flow and procurement arrangements

GoR and PMU July 31, 2014

Delayed, an advance copy of the restructuring proposal given by end February 2015 and need to be revised as per the 4th ISM discussions

Immediate roll out of Mokhampura activities GoR and PMU Immediately

Delayed, while social mobilization has started, investment activities are yet to be commenced.

Training of Mokhampura field team on community mobilisation, institution building and SMF; Operationalise a standard reporting template to summarize cluster PRA finding; Develop and Disseminate IEC material on core RACP objectives, strategies and stakeholder groups

PMU, DPMU (Jaipur) and ARAVALI

Immediately Ongoing

Procurement

Revised procurement plan for the project PMU July 30, 2014

Delayed, an advance copy of the restructuring proposal given by end February 2015 and need to be revised as per the 4th ISM discussions

Revised procurement manual for the project PMU July 30, 2014

Delayed, an advance copy of the restructuring proposal given by end February 2015 and need to be revised as per the 4th ISM discussions

Financial ManagementResolve entrustment issue with CAG, AG Rajasthan PMU Immediately Completed

Appoint internal auditors for the project PMU Immediately

Review of FM Manual PMU Jul 31, 2014

Delayed, an advance copy of the restructuring proposal given by end February 2015 and need to be revised as per the 4th ISM discussions

Provide project external audit report to the Bank PMU Sep 30, 2014 Completed

8

Annex 3: Key Agreed Actions for 4 th ISM

Action By Whom By When

Annual action plan for FY 2015-16 submitted PMU and IAs ImmediatelyClusters geographies in Jhalawar and Banswara districts to be identified and proposal submitted for Banks review and clearance

PMU Immediately

Operational manuals to be updated and submitted PMU and IAs April 30, 2015

Designate of ATMA as DPMUAgriculture Department and PMU

Immediately

Rollout of investment activities under Mokhampura cluster PMU ImmediatelyLaunching the procurement of geo-membrane for Mokhampura cluster PMU Immediately

Launching the procurement process for NGOs PMU ImmediatelyProcurement assessment information by all implementing agencies (IAs). PMU and IAs Immediately

Request for e-procurement PMU Immediately

Revised /updated Procurement manual PMU Immediately

Collated Procurement plan of all IA’S. All IA/PMU ImmediatelyAppointment of procurement point persons for all IA’s/PMU All IA /PMU Immediately

Procurement Training of procurement point person All IA /PMU Next available training

Financial management manual and grant agreement to be updated and submitted PMU April 30, 2015

ARAVALI to prepare a training module on the Environment and Social Management Framework and initiate trainings for line agencies

PMU and ARRAVALI June 30, 2015

Appointment of critical staff - Procurement Specialist, Safeguard Specialists, Agribusiness Specialist at the PMU PMU April 30, 2015

9

Annex 4: Technical Notes – Livestock

1. The mission focused on finalizing the livestock activities for the immediate 3 month period (March to June 2015) and to end of year 1 (March 2016) with agreed actions and deliverables in Table 2 and 3. Discussions were also held with the Secretary- Animal Husbandry (Mr. Singh) and Director AH Department (Dr. Maan). A critical decision was taken to proceed with an MOU with RAJUVAS to implement a nucleus breed improvement program to build state capacity for production of high quality bucks. Under the restructured proposal 11 of the 12 target districts are sirohi track, RAJUVAS will be financed to support the Sirohi program only with a total budget of 7.5 C. The mission visited the proposed Sirohi RAJUVAS farm at Chittorgargh. The sourcing strategy for quality bucks, under the breed improvement program was finalized.

2. Of the total budget of INR 105 crore for the livestock subcomponent, INR 82 lakhs will be expended by end June 2015, and by end March 2016, 27 C total (25.7% of total) of which 3 C to be disbursed by RAJUVAS. Ultimately, the project will deliver the first at scale models of market oriented goat production in Rajasthan, increase the profitability and productivity by 30% of 10,000 female farmers who will be organized into over 670 Multi Task Groups; and eventually federated to form a producer organization. A rural haat constructed in each district will enable farmers to capture higher margins. Over 7000 bucks will be distributed to improve productivity and farmers will be enabled by support for improved feeding and nutrition, and animal health and shelters enabled for water harvesting. Development of 1200 ha of barren land for silvipasture will contribute to fodder needs. Rural technology centers, 3 per district, will support farmers’ access to productivity enhancing services. Training is another key component supporting AH staff, farmers and functionaries including nearly 70 lady link workers who will support last mile service delivery.

3. Buck procurement: Productivity improvement relies on supply of high quality breeding bucks - 7050 bucks based on the requirement of 6 bucks supplied to be each MTG and 40 MTGs in each of 12 clusters, 11 of which are in the Sirohi track. RAJUVAS will be contracted to supply high quality performance recorded 100% Sirohi with preference to large commercial herds who will be contracted as ‘multiplier herds’ to supply the large numbers of bucks required to the MTGs. The program will be rolled out in a phased manner with bucks sourced as per table 1 below. An immediate need is to get clarity on the number of commercial herds potentially available and which could be contracted to supply the needed bucks. Only in 1 district (Jaisalmer) will the project require Mawari bucks; and due to the few required (350 bucks) will be procured from the commercial herds only.

Table 1 – Sourcing strategy for quality bucks

Time period Number buck to be supplied to MTG during this time period

Sourcing strategy to supply the MTG RAJUVAS2 supply

April to June 2015

150 Sourcing from market & commercial herds through shopping method. Majority quality likely to be crossbred lower quality sirohi likely 50%

Year 1 end 1300 Sourcing from market & commercial herds through shopping method (650 bucks) & commercial herds contracted as multipliers (650 bucks). Majority quality likely to be crossbred higher % sirohi blood e.g. 62% plus)

RAJUVAS to supply 100 performance recorded purebreds preference to go to multiplier herds

2 Further clarity on numbers supplied by RAJUVAS March 13 2015.

10

Year 2 end 2100 Sourcing from market/commercial herds (1000) contracted multiplier herds(1000)& RAJUVAS (100) Quality likely to be atleast 62% sirohi blood & about 100 will be 100% (from RAJUVAS)

RAJUVAS to supply 300 performance recorded with preference to contracted multiplier herds

Year 3 end 2150 Sourcing from market/commercial herds (750) contracted multiplier herds(1050)& RAJUVAS (300) Quality likely to be atleast 62% sirohi blood & 100% from RAJUVAS

550 high quality purebred performance recorded bucks supplied with preference to contracted multiplier herds

Year 4 1350 Sourcing from contracted multiplier herds(1050)& remainder from RAJUVAS (300) Quality likely to be atleast 82% sirohi blood & 300 will be 100%

550 high quality purebred performance recorded bucks supplied with preference to contracted multiplier herds

Table 2 agreed actions with PMU and DAH

I. What Who When

1. EOI issued for NGO3 who will mobilze the MTG PMU May 15th 20152. EOI issued for the Technical SP to build capacity and

support institution development (including building capcity for Rural Haat management) for market oriented goat4

PMU May 30 2015

3. Engage consultant5 to prepare Rural Haat plans with support of WB consultant based on MACP

PMU April 15th 2015

4. Engineers contracted (either through PWD or EOI) to construct Rural Haat & Rural Technology Center (RTC)6

PMU/DAH7 June 30 2015

5. Assessment report of availability and terms required regarding sourcing bucks multiplier/commercial herds and criteria for contracting qualifying multiplier established

PMU May 30 2015

6. Bucks first batch (150) procured through local shopping from commercial herds based on agreed selection criteria

DAH May 30 2015

7. Does first batch (160) procured through shopping to supply widows who are MTG members

DAH June 30 2015

8. Revised MOU issued with RAJUVAS8 and first installment

PMU March 30 2015

9. RAJUVAS adisory panel meeting PMU April 30 201510. EOI for animal insurance PMU April 30 201511. EOI for mobile vans & motor bikes to support animal

health camps & emergency calls9PMU May 30 2015

12. Transfer money for animal health camps for 100 camps PMU/DAH April 30 201513. Contract (single source FES) for Silvipasture Resource

NGO - PMU (PC Watershed & PC AH

June 30 2015

14. Procurement of fodder seed through shopping based on PMU Depends on above

3 NGO will support MTGs across other subsectors eg agri, horticulture4 to ensure smooth running of the market facilitating both buyers and sellers as well as agents involved in the marketing system and facilitate capacity building support of farmers/MTGs for market oriented goat production5 CQS method6 When no electricity solar powered RTC (project will aim for 6 solar powered RTC out of 36 planned7 If PWD does the work then DAH will be involved8 Needs to be revised for only SIrohi nucleus program and farm at Chittorgargh9 Each RTC A grade gets 1 mobile van and each RTC gets 1 motor bike

11

FES recommendation contracting date15. EOI Chaff cutters 10 and local shopping to supply

MokhamporaPMU June 30 2015

16. Recruitment staff for RTCs (initally 8 vets 16 paravets)11

Human Resources agency

June 30 2015

17. Recruitment Lady Link Workers and empowering (training & equiping first batch (9) LLW for Mokhumpura)

DPM Jaipur June 30 2015

18. MOU with CIRG to undertake training of DAH staff, multiplier farmers12,

DAH April 15 2015

Table 3. Output targets and progress to date

Item Summary Progress to Feb. 2015

By April to June 2015 By March 2016 EOPtarget

MTGs 56 - 362 672

MTA Goat subcommittee

4 12

RTCs A 8-A Grade 12A grade

RTCs B 9-B Grade 24B grade

Haat 4 12

AH Camps 2 100 1340 5380

Bucks 150 1450 7050

Does 160 1380 65801

Silvipasture (ha) 200 1200*13

Training

AHD staff 302

MTA Goat Subcommittee

12

Multiplier farmers 50 100+

Lady link workers 9 360 60

MTGs 40 362 672 (10,000 farmers)

10 likely 10 chaffers per MTG11 until RTCs constructed staff located at animal hospitals. Affirmative action that if have 2 applicants both qualified hire the woman12 RAJUVAS to be involved in training at CIRG 13 Nagaur, Alwar, Tonk, Dholpur, Jhalawar, Banswara, Chittorgarh, Pratapgarh and Bundi

12

Annex 5: Procurement

1. Implementation arrangements: Given the project restructuring, the procurement is proposed to be carried out by the PMU and respective PIU’s of the six line departments with option of small but time sensitive procurement requiring expedited implementation being procured at the decentralized level under guidance and oversight of the PIU. Mission reiterated that any procurement to be carried out by any IAs under the project needs to be incorporated in the procurement plan to be cleared by Bank. Mission felt that IAs need to familiarize themselves with the agreed processes and procedures, bid document and contract formats to avoid inconsistency or noncompliance. This becomes all the more relevant because of increased post review thresholds. Mission felt that previously lack of proactive engagement by PMU, non-availability of requisite procurement officials, absence of procurement planning led to delay in procurement. Given the project restructuring, the PMU will need to ensure that these areas of concern are expeditiously addressed.

2. Strengthening of Procurement Unit at PMU/PIU and Capacity Building: To ensure quality output and effective engagement, there is a need for a full time trained procurement officer at the PMU and respective PIU’s of all the six line departments. He/she shall be the main resource person to carry out procurement as per agreed procedures and also compile procurement and contract information in a timely manner. PMU agreed that it shall facilitate participation of all the procurement officials in the next Bank procurement trainings to be held at ASCI, Hyderabad. The PMU agreed on the timelines which are mentioned below.

3. Procurement plan: Mission discussed the draft procurement plan presented by PMU and various line departments. Based on the discussion held during the mission, the PMU shall engage with respective line departments for preparation of a realistic procurement plan for at least next 12 months. The plan shall be based on agreed cost table and action plan and will be sent to the Bank for review and clearance. Once procurement plan is cleared by the Bank the concerned IA’s shall take up procurement as per agreed processes and procedures.

4. Procurement Manual: In view of the revised arrangements, the PMU shall suitably revise/update the procurement manual and send to Bank for review and clearance.

5. Assessment of new IA: Given the change in implementation arrangements, procurement risk and capacity assessment was carried out for the line departments. Mission noted that Surface Water, Agriculture and Ground Water departments likely to carry out large value procurement, had been previously engaged with the Bank funded Rajasthan Water Sector Restructuring Project and therefore were familiar with Bank processes and procedures. Other three departments i.e. Horticulture, Animal Husbandry and Watershed Development have not handled any Bank project previously so procurement to be carried out by them shall be under guidance of PMU and shall not exceed shopping threshold. Mission noted that presently the line departments followed State rules/GFR for procurement, however they are aware that Bank procedures may vary from State procedures. As part of mitigation, mission has advised PMU in regard to immediate appointment of procurement staff at all IAs, their training at ASCI, preparation of procurement plan by all IAs, guidance to all IAs on following the project procurement manual, and use of Bank bidding documents agreed with Bank.

6. E-Procurement: Mission again emphasized the need for introducing e-procurement for the project. The PMU agreed that they will review and send a request to Bank in regard to e-procurement.

7. Contract and other related information: Mission reiterated that PMU, as nodal agency needs to be the repository of all contracts and complaint information. There is need for proactive action and coordination by PMU in collating contract information from all line departments for conducting

13

mandatory annual procurement post review by Bank in a timely manner. An MIS system needs to be put in place such that this information is periodically sent by PIU to PMU for updating, collating and sharing with Bank.

Actions to be taken:

Action Required Action By Date for completion of Action

Procurement assessment information by all IA. All IA/PMU

Immediately

Request for e-procurement PMU ImmediatelyRevised /updated Procurement manual PMU ImmediatelyCollated Procurement plan of all IAs. All

IA/PMUImmediately

Appointment of procurement point persons for all IAs/PMU

All IA /PMU

April 16,2015

Procurement Training of procurement point person

All IA /PMU

Next available training

14