Implementation Completion Memorandum

Project Number: 42338-012 Grant Number: 9134-IND September 2019

IND: Capacity Building and Livelihood Enhancement

of Poor Water Users (Financed by the Japan Fund for Poverty Reduction)

1

JAPAN FUND FOR POVERTY REDUCTION (JFPR)

IMPLEMENTATION COMPLETION MEMORANDUM (ICM)

I. BASIC INFORMATION

1. JFPR Number and Name of Grant:

9134-IND: Capacity Building and Livelihood Enhancement of Poor Water Users

2. Country (DMC): India 3. Approved JFPR Grant Amount:

$2,000,000

4. Grant Type: � Project / � Capacity Building

5-A. Undisbursed Amount

$101,089.58

5-B. Utilized Amount

$1,898,910.42

6. Contributions from other sources

Source of Contribution: Committed Amount

Actual Contributions:

Remark - Notes:

DMC Government $100,000 $94,579 The actual contribution took into account salary of relevant GIU staff, vehicle, and expense for annual audits

Other Donors (JFPR) $0 $0

Private Sector $0 $0

Community/ Beneficiaries

$0 $0

7-A. GOJ Approval Date:

24 December 2008

7-B. ADB Approval Date:

19 June 2009

7-C. Date the LOA was signed (Grant Effectiveness Date):

17 July 2009

8-A. Original Grant Closing Date: 17 July 2012

8-B. Actual Grant Closing Date: 31 March 2017

8-C. Account Closing Date:

19 April 2018

9. Name and Number of Counterpart ADB (Loan) Project:

Loans 2444 and 8240-IND: Orissa Integrated Irrigated Agriculture and Water Management Investment Program-Project 1

10. The Grant Recipient(s):

Additional Secretary (Fund Bank & ADB) Department of Economic Affairs, Ministry of Finance, Government of India E-mail: jsmi-dea@nic.in Phone: +91 11 23094905 Fax: +91 11 23093422

2

11. Executing and Implementing Agencies: Executing Agency Principal Secretary, Department of Water Resources, Government of Odisha Office of The Project Management Unit (OIIAWMIP), Rajiv Bhawan, Bhubaneswar-751 001, India Phone- +91-674-2391275 email: cepdpmu@gmail.com

Implementing Agency Project Director Grant Implementation Unit Office of The Project Management Unit (OIIAWMIP), Rajiv Bhawan, Bhubaneswar-751 001, India Phone-+91-674-2391275 email: cepdpmu@gmail.com

II. GRANT PERFORMANCE ASSESSMENT

12. Description:

Landless people and sharecroppers, among them many scheduled tribes (STs), and scheduled castes (SCs), require additional project assistance as their access to natural resource is limited. For most households there was no security of adequate food throughout the year due to meagre household income. Of the households with five family members, 11.42% were earning a monthly income of less than Rs500 (about $12.50). Another 54% of households were earning between Rs501 and Rs1,500 (about $12.50–$37.50). Many of the marginal farmers owned land in the tail end of the irrigation system, where irrigation water does not reach in many instances due to inconsistent irrigation supply and insufficient maintenance. Landless and sharecroppers had limited income generation opportunities. The JFPR funded project (Capacity Building and Livelihood Enhancement of Poor Water Users) aimed to improve the livelihoods of poor water users, which includes landless, sharecroppers, marginal cultivators, women, STs, and SCs of the subproject irrigation schemes; building on the multiple benefit potentials delivered by improved irrigation and its management system; and to strengthen participation and representation of poor water users in the Pani Panchayats (PPs)1 for enhanced and equitable water distribution and better maintenance of water distribution structures to minimize water wastage and maximize income. The JFPR project was linked to the ADB-financed Orissa Integrated Irrigated Agriculture and Water Management (OIIAWMIP) program aimed at enhancing productivity, water-use efficiency, sustainability of irrigated agriculture, and improving performance of irrigation service delivery and water resources management with empowered PPs progressively taking over O&M roles. In the OIIAWMIP tranche 1 subproject area2 landless and sharecroppers together accounted for about 40% of the project population, of whom 25% were wage laborers who depended on agricultural or other unskilled work for subsistence survival.

1 Pani Panchayat in Odisha is an association of all the water users, as constituted within a specified hydraulic boundary of a major/medium/minor irrigation project. 2 The tranche 1 subproject area covers Sunei, Remal, and Gohira medium-sized irrigation schemes and the Taladanda major irrigation scheme.

3

13. Grant Development Objective and Scope:

Grant Development Objectives: The development objectives of the project were (i) To improve livelihoods of poor water users, including marginal cultivators, women, STs, and SCs of the subproject irrigation schemes, building on the multiple benefit potentials delivered by improved irrigation and its management systems; (ii) To strengthen participation and representation of women, STs, SCs, and marginal cultivators in the PPs of four subproject irrigation schemes for enhanced and equitable water distribution and better maintenance of water distribution structures to minimize water wastage and maximize income; (iii) To improve the capacities of the Department of Water Resources (DoWR) and nongovernment organizations (NGOs) in the functional areas of training, consultancy, and information services for proportional and inclusive participation in PPs. The Project design was relevant in improving the livelihoods of the poor water users as well as in increasing the representation of vulnerable people in PPs, which formed a sizeable proportion of the population of the subproject irrigation schemes. The JFPR Project was linked to the OIIAWMIP, which focused on reducing rural poverty focusing on irrigation infrastructure development and expansion of irrigation coverage. This was in line with Indian government’s 11th five-year plan, which prioritizes reducing rural urban disparity and chronic rural poverty through inclusive and equitable growth with a strong focus on accelerating agriculture, irrigation and rural development. The grant design and formulation did not have any element on exit strategy. Project Scope: The objectives were to be achieved through the delivery of four components; (i) capacity development and skills training for DoWR, Command Area Development/Pani Panchayat (CAD/PP) directorate and NGO; (ii) strengthening of PP and PP subgroup formation and functioning; (iii) sustainable livelihood for poor water users and PP subgroups; and (iv) project coordination and management, monitoring, and evaluation of the project.3 The grant project was linked to the ADB financed OIIAWMIP tranche 1.4 The scope as designed and as completed remained aligned to the objectives of OIIAWMIP tranche 1.

Implementation Arrangements: The DoWR, Government of Orissa is the Executing Agency (EA) of the project. A Grant Implementation Unit (GIU) was established in the office of the Project Management Unit (PMU) of OIIAWMIP to oversee and facilitate implementation of the Project. The GIU was responsible for day-to-day operations, including coordination with various agencies, procurement, financial management, and monitoring of the progress of project implementation. The GIU was headed by a Project Director (PD) and assisted by a full-time Deputy JFPR Director supported by Deputy Director, PP and Assistant Executive Engineer. At the PMU level ADB recruited a consultant to work as the grant project coordinator. A Project Steering Committee (PSC) was established to provide guidance and advisory support to the GIU. The Commissioner-cum-Secretary, DoWR is the Chairman and PD, GIU is the Convener of the PSC. The members of PSC included nominees from Department of Women and Child Development, Finance Department, ST and SC Development Department, Rural Development Department, Health and Family Welfare Department, Forest and Environment Department. At the subproject level, the project was implemented through subproject implementation offices (SIOs). Implementation of project at the subproject level was originally envisaged to be undertaken by the NGOs operating under the OIIAWMIP. This did not materialize due to the difficulties encountered by DoWR in the recruitment and retention of NGOs.5 One NGO package failed during the first round of selection as no NGO met the qualification criteria and two NGOs withdrew from their contracts during implementation. These factors resulted in lack of faith on NGOs to continue throughout the grant project and for effective implementation of the grant activities. A minor change in implementation arrangement was approved in December 2011 to allow ADB to individually recruit National Subproject

4

Coordinators (SPCs) to supervise and monitor the implementation of field level activities.6 In each subproject, one full time SPC was recruited directly by ADB. Community Organizers (COs) were recruited to assist the SPC in formation of Common Interest Groups (CIGs)7 and to provide handholding support to CIG members. For three subprojects, in the entire lifecycle of a total of 8 SPCs and 19 COs were engaged for JFPR implementation.8

Implementation Schedule: The project became effective on 17 July 2009 and was originally scheduled for completion on 17 July 2012. Due to delays in the startup of OIIAWMIP, the JFPR project commenced only in November 2011. Due to further delay in project implementation and other difficulties the Project was extended several times. The Project was initially extended until July 2013, and subsequently until July 2014. The Project again extended to December 2015 and got a fourth extension until 31 March 2017, which was the actual grant closing date.9 10 Stakeholder Participation and Ownership: There was government ownership in the implementation process. The DoWR was actively involved with ADB to address the implementation issues arose during the project. Effort was also made by DoWR to involve other line departments of the state such as Horticulture Department, and Animal Husbandry and Veterinary Services Department (AH & VS). District level staff of DoWR, i.e. Executive Engineer was involved in the grant disbursement and other support. Organization of vulnerable households into CIGs and implementation of livelihood activities through CIGs helped enhance the self-confidence of CIG members, especially women members, which resulted in empowerment of women. During a sample assessment in March 2019, women members revealed that their participation in various group processes such as monthly group meetings, discussion on the modalities of implementation of livelihood activity; and learning from other members of the group contributed to their increased confidence.

14. Key Performance Indicators

Accomplishments Rating

(HS,S,PS,U11)

Evaluation of each Indicator:

i) In the four subprojects increase the income of 20% of extremely poor people by the end of year 3 of the intervention.

S The grant was originally envisaged to be implemented in four subprojects. Gohira subproject was dropped due to withdrawal of implementing NGO. The grant was implemented in three subprojects (Taladanda, Remal and Sunei). However, the dropping of Gohira subproject did not affect

3 ADB. 2010. Grant Implementation Manual, Capacity Building and Livelihood Enhancement of Poor Water Users

in the State of Orissa. Manila. 4 The Project (under MFF No. 0022, Loan No. 2444) was designed as a multitranche financing facility (MFF)

supporting the government’s agricultural goals. The impact of tranche 1 was to enhance economic growth and reduce poverty in the selected areas and institutionalizes effective mechanisms to put into operation PIM-based agriculture. 5 The NGOs had limited experience in PIM concepts, and some NGOs differed from the project’s micro-planning

concept. 6 ADB Memorandum, 2 December 2011. 7 Common interest groups are comprised of individuals with similar livelihood aspirations which organize and

engage themselves to initiate a livelihood activity. 8 ADB. 2017. Consolidated Project Completion Report, Capacity Building and Livelihood Enhancement of Poor Water Users. Grant Implementation Unit, DoWR. Government of Odisha. 9 ADB Memorandum, 28 December 2015. 10 The JFPR was delegated to India Resident Mission for administration with effect from 2 June 2016. 11 HS=Highly Satisfactory; S=Satisfactory; PS=Partly Satisfactory; U=Unsuccessful.

5

the achievement in terms of number of CIG formation targeted. To compensate for the number of planned CIGs in Gohira, the number of CIGs were increased in Taladanda-I & II and Taladanda-I & III to reach the project target of 192 CIG. The target of formation of 192 CIGs, covering 3,045 extremely poor households12 and 11,911 people, was achieved. Of the total CIG members, 100% belonged to extremely poor people. The target of increasing the income of 20% of extremely poor people was achieved. Comparison of baseline and end line survey findings in the year 2016 showed that, 69.3% extremely poor households reported 15% increase in income while for 30.7% extremely poor households the increase in income was 10%. There were 239 extremely poor households across 16 CIGs, who adopted mushroom cultivation. At the completion of intervention each household earned additional income of INR 3,500 per month. There were 2,731 extremely poor households across 170 CIGs who were involved in goat farming activity. During a sample assessment in March 2019 data on net profit was collected from some of these CIG members across the three subprojects. The finding showed that on an average the yearly net profit from goat farming per vulnerable household is INR 16,222 which is INR 1,351/ per month per household.

ii) Increase participation and proportional representation of women, STs, SCs, and marginal cultivators in PPs of four subprojects. At least 30% representation of women in PP achieved by the end of year 3 of the intervention.

HS Under project 1 of OIIAWMIP, 121 PPs were formed. About 62% of women and 74% of SCs and STs were enrolled in PPs.13 The target of 33% women representation in the PP executive committee was achieved in all the subprojects where elections were held. The proportion was 33% in Remal, 49% in Sunei, and 37% in Gohira, and 33% in Taladanda.14

12 As per the consolidated project completion report of JFPR, extremely poor households included landless,

destitute women, physically challenged, and below poverty line (BPL) households. 13 The baseline data for women was negligible at about 5-6% in different subprojects, after the project which was

increased to about 33%. Baseline data for SC & ST representation was about 17%. 14 In Taladanda 14 out of 73 PPs elections were held.

6

iii) At least 20% of DoWR CAD and PP directorate and NGO staff are able to undertake inclusive and equitable PP mobilization and training fieldwork, measured by increased participation of disadvantaged people in PPs.

HS Under project 1 of OIIAWMIP, about 74% of SCs and STs were enrolled in PPs. Out of the 854 executive members in Gohira, Remal, and Sunei subprojects, about 33% were SCs and STs (In Taladanda subproject elections in most of the PPs were not held). About 62% of women were enrolled in PPs. The above data suggests increased participation of disadvantaged people in PPs. The DoWR implemented a capacity development plan for all staff, field staff/SIOs. The staff capacity was strengthened through the project, with over 4,200 staff participated in 132 different training programs on topics such as project management, PP strengthening. The DoWR conducted a series of training for women farmers in PP mobilization. At project completion the CAD and PP directorate of DoWR and PMU had 29% female staff, and 20% female Support Services Teams (SSTs). The Pani Panchayat Support Unit (PPSU) and Institutional Strengthening and Project Management Consultant (ISPMC) experts conducted training for SSTs, COs, and NGO staff on women’s participation in PP, participatory approaches, Training-of-Trainers to reach women farmers, and PP.

15. Evaluation of Inputs

(i) The economy of input provision: The total JFPR grant amount was $2,000,000. Of the total amount, 94.9% was utilized ($1,898,910.42). The original composition of grant allocation was changed owing to the changes in implementation arrangements. A revised allocation was approved in June 2016 in which the remaining grant amount was moved into three categories.15 Of the total fund utilized, expenditure on consulting services accounted for 43.4%, grant management accounted for 55.7% and the remaining 0.9% were spent on studies and surveys. The productivity of inputs is rated satisfactory as the project objectives were met within the budgetary target.

(ii) The quality of the inputs: All the international and national consultants were recruited by ADB and paid directly from ADB. By the end of project three SPCs were recruited by ADB to facilitate and supervise the implementation in three subprojects. In the entire project cycle, a total of eight national consultants were recruited and finally three consultants continued as SPCs till the end of the project. The PSC had concerns regarding the process of identification of income generation schemes by the consultants as no detailed community needs assessment were done.16 The SPCs were accountable to both the SIO and GIU for their work. The SIO managers (Executive Engineers) were from the technical background and lacked domain experience on livelihood and group functioning to supervise the domain specific works of SPCs effectively. At the end of the project the SPC for Taladanda I & III

15 ADB Memorandum, 7 June 2016. 16 DoWR, 11 January 2013, Memo no. 63, Proceedings of the 2nd PSC meeting.

7

and SPC for Sunei and Remal subproject did not submit the required deliverables to GIU in time and this delayed the submission of project completion report. For each subproject the COs were hired under the contract of respective SPC. On the basis of one CO for 10 CIGs, a total of 19 COs were hired to help implement the activities of 192 CIGs. Most of the COs came from the NGOs who had previous experience of working in the locality. This helped in rapport building with the vulnerable community and providing handholding support. Overall, the performance of consultants is rated partly satisfactory.

Reasons for deviating from planned inputs and activities: Almost all the activities were delivered largely as envisaged in the DMF of the JFPR grant proposal. The pilot testing of models for formation of informal subgroups under the PP could not be carried out due to the disagreement between DoWR and the implementing NGOs on social mobilization methodology. Under OIIAWMIP, the SSTs recruited through NGOs helped PPs in preparation of micro-plan and identified the vulnerable households for implementation of livelihood plan. The implementations of livelihood activities for vulnerable households were carried out under the JFPR grant. The grant was originally targeted to cover all the four subprojects of tranche 1 of OIIAWMIP (Taladanda, Gohira, Remal and Sunei). Gohira subproject was finally not covered due to withdrawal of implementation NGO. There was a change in the fund disbursement procedure. Initially the disbursement of grant fund was from ADB to the Imprest account of GIU, specifically created for the grant project. Upon the concurrence of ADB and DoWR funds for implementation of CIG activity were disbursed by DoWR to the CIGs, and then claimed from ADB by submitting a withdrawal application (WA). The concurrence for the change in disbursement procedure took a lot of time leading to implementation delays.

Client satisfaction with the inputs provided: Findings from the endline survey and consultations held with CIG members during a sample assessment showed that all of them has been benefitted from the grant. All the CIG members had received the financial assistance as per the approved Business Development Plan (BDP) of respective CIG. Almost all of them during the sample assessment reported that the grant assistance helped in providing economic capital and the creation of infrastructure to take up new livelihood activity (Mushroom cultivation), and strengthened the existing activity (Goat farming, bamboo and cane crafts, rice trading). The participation of members in implementation of livelihood activity helped increase the confidence in decision making and provided exposure to the outside world. However, the beneficiaries pointed out areas concerns pertaining to the implementation. The CIG members across the activity type and subproject highlighted the need of mentoring support for another year after the end of the project. Another area of concern was the absence of an effective exit strategy for sustained continuity of the CIG activity. The beneficiaries across the subproject revealed that they did not get adequate guidance from the SPCs and COs on how to grow further and the usefulness of the group after the end of the project.

The performance of ADB and EA

Performance of ADB: ADB performance is rated satisfactory. ADB conducted 17 review missions between 2011 and March 2017. The missions helped review the implementation progress and compliance to grant covenants, identified implementation issues and provided guidance to address these issues. There are four project officers who were responsible for the project and the change in project officer from time to time did not affect the project as all of them gave the needed oversight for implementation of the project. The change in the implementation arrangements were not anticipated before. Despite this ADB was able to respond to the issue though this delayed the implementation for some time. To respond to the change in the fund disbursement procedures ADB provided guidance to the DoWR in the preparation and processing of withdrawal applications for reimbursement of the grant assistance. The Project commenced in November 2011 and due to several factors, it was extended four times till it was completed in 31 March 2017. ADB was concerned about the delays and through meetings and email exchanges with DoWR (GIU) discussed possible options for a solution. Despite this, an early alert by ADB to DoWR on a few issues could have helped fasten the project

8

implementation. ADB could have alerted about the requirement of the new disbursement procedure (submission of withdrawal application by GIU for reimbursement of funds spent on CIGs) to the DoWR during the discussion on the revised implementation arrangement.

Performance of EA: The overall performance of EA is rated satisfactory. The DoWR facilitated implementation of the project including flow of funds, financial monitoring, including counterpart fund support. The EA established a PSC to provide guidance and advisory support to the GIU. However, during the entire project only two PSC meetings were held.17 Fund flows from the DoWR to CIGs for implementation of livelihood activity were timely and as per the BDP milestone. DoWR asked the concerned Executive Engineers in respective SIO to provide support in timely disbursement of fund to CIGs, and implementation supervision. Despite delay in commencement of project and subsequent delays in the implementation, the DoWR through GIU completed the implementation of the grant effectively. The good coordination between the staff at GIU and SIOs also helped in the completion of implementation of the livelihood activities of CIGs. The senior management of EA provided guidance for effective implementation of the grant. Efforts were made to convince Odisha Livelihood Mission (OLM)18 for handing over the JFPR CIGs to OLM after the end of the JFPR project. However, this could not be materialized due to transfer of relevant decision making authorities. The EA through the GIU and SIO undertook the supervision of the work of SPCs by periodic visit to CIGs, periodic review meetings, and review of Monthly Progress Reports (MPRs). There were areas in which DoWR could have done better for the timely implementation of project. The EA could have leveraged the domain specific skills of PPSU and ISPMC experts under OIIAWMIP for advice and guidance on the sustainability of the chosen livelihood activities. The DoWR could have made efforts to approach other Departments for possible convergence of JFPR CIGs.

16. Evaluation of Outputs and Results

The Project Implementation Manual was prepared by the consultants. The physical and financial progresses of the project for each month were documented in the Monthly Progress Report (MPR) by the respective SPCs. The respective SPC undertook baseline survey of all the identified vulnerable households for CIG formation and prepared the Baseline Report. The final consolidated Project Completion Report (PCR) was prepared by the DoWR, submitted to ADB and circulated after approval.

Efficiency in the production of outputs: ADB implemented the project through engagement of SPCs and COs as DoWR encountered difficulties to implement the project through NGOs. There was cost savings as engagement of NGOs could have attracted management cost. To prevent leakage and wasteful expenditure of money the grant assistance for implementation of chosen livelihood activities were directly disbursed to the CIG group account and the money from the account were spent as per the approved BDP supported by resolutions of CIG members. Furthermore, DoWR leveraged cooperation from other Department/Institution such as Krishi Vigyan Kendra (KVK),19 and Animal Husbandry and Veterinary Services Department (AH & VS) in the area of imparting technical training to the CIG members. Budgetary expenditure for the skill upgradation trainings and exposure visit was minimal as trainings were provided by government departments. However, delay in completion of project and concomitant increase in duration of engagement of SPCs and COs resulted in increased expenditure. during the project. Despite this the project was efficient as the project objectives were met within the budgetary target.

17 The first PSC meeting was held on 11-06-2010 and the second meeting was held on 22-12-2012. 18 OLM is an autonomous society under the aegis of Dept. of Panchayati Raj, Government of Odisha, is providing sustainable livelihood opportunities for the poor rural households. 19 KVKs are agriculture extension centres created by Indian Council of Agricultural Research to provide various types of farm support to the agricultural sector.

9

Effectiveness of outputs:

Output 1: Income of poor water users, including marginal cultivators, women, STs, and SCs improved. The project implemented most of the inputs envisaged in the grant proposal to achieve the desired output 1. On the basis of the PP micro plan extremely poor households were identified through village level meetings. The COs with guidance from concerned SPC undertook a detailed validation of the extremely poor households as per the criteria mentioned in the Project Implementation Manual. CIGs were formed at the village level. To select the livelihood activity the concerned CO offered various choices to CIG members. In Tritol and Rahama block of Jagatsinghpur district (Taladanda I&II subproject), the preferred choice of the vulnerable community was dairy farming. However, this livelihood activity could not be taken up due to the limited funds available under the grant. Among various choices, the CIG members in this area choose cultivation of mushroom as they felt that it is a profitable activity. A total of 192 CIGs were formed, covering 3045 extremely poor households and 11,911 people in Taladanda, Sunei, and Remal subprojects.20 Of the total CIGs, 170 were involved in goat farming, 16 were involved in mushroom cultivation, 4 were in bamboo crafting, 1 each engaged in cane products and rice trading. The total number of CIGs formed under the project was different from the number envisaged in the DMF as the target of reaching 3045 extremely poor households were achieved in formation of 192 CIGs. Under the project, a number of capacity building activities were conducted for general awareness building of CIG members with regard to the chosen livelihood activity. Training on awareness building, accounts and bookkeeping were provided to the CIG members by the GIU officials. Technical training on shed construction, procurement of goat and buck, prevention of diseases, and feeding practices of goat and buck (for CIG members involved in goat farming) were provided by the concerned BVOs. For CIG members involved in mushroom cultivation, technical trainings were imparted by the scientists from KVK and private entrepreneur. The series of trainings imparted under the project helped in skill building of the members to take up the chosen livelihood activity. The trainings and exposure visits to CIGs involved in goat farming helped to learn skills on shed construction and appropriate feeding practices. However, CIG members reported that that one-time training on prevention of diseases was not enough to learn about the early symptoms of various diseases among goats. To implement the chosen livelihood activity funds were disbursed to the CIG group account as per the approved BDP. A total amount of INR 6,84,04,002 was disbursed from the GIU to the 192 CIGs. Comparison of baseline and endline survey findings showed, out of 3045 vulnerable households 2113 households reported 15% increase in income while for the rest the increase in income was 10%.

Output 2: Participation and equal representation of women, STs, SCs, and marginal cultivators in the PPs for enhanced and equitable water distribution, and better maintenance of water distribution structures strengthened. Under project 1 of OIIAWMIP, trainings were conducted for capacity building of SSTs, COs, NGO staff as well as women water users and farmers. The PPSU and ISPMC experts conducted training for SSTs and COs on gender equity. The project imparted agriculture-related trainings for the PPs on 21 topics to equip them with the technical knowledge and skills. For women trainers, NGO staff, and women water users, 132 training programs were held.

The capacity building of SSTs, COs, NGO staff on gender equity helped in adequate women representation in PPs and executive committees of PPs. About 62% of women and 74% of SCs and STs were enrolled in PPs, marginal cultivators were part of them. The target of 33% women representation in the PP executive committee was achieved in all the subprojects where elections were held.

20 The Taladanda canal system was divided into two irrigation sub-divisions, i.e. Manijanga sub-division (Taladanda-I&II), and Kishan Nagar sub-division (Taladanda-I&III).

10

Output 3: The Capacities of DoWR and NGOs in the functional areas of training, consultancy, and information services for proportional and inclusive participation in the PP improved. Under project 1 of OIIAWMIP, the DoWR implemented a capacity development plan for all staff. The staff capacity was strengthened through the project, with over 4,200 staff participated in 132 different training programs on topics such as project management, PP strengthening. DoWR conducted 748 training sessions in PP management, agriculture and horticulture-related activities. In addition, 13 inter-state training-cum-exposure visits were held in which 16 DoWR officials and 513 PP members participated to learn about successful PIM. DoWR faced challenges with respect to recruitment and retention of NGOs to support PP strengthening and PIM activities. The NGOs had limited experience in PIM concepts and some NGOs differed to the project’s micro-planning concept. The divergent views on social mobilization caused difficulty in implementation. DoWR also experienced difficulties in replacing the NGOs. The capacity building of DoWR and NGOs helped to achieve inclusive participation in the PP. Out of the 854 executive members in Gohira, Remal, and Sunei subprojects, about 33% were SCs and STs (In Taladanda elections in most of the PPs were not held).

Output 4: Project management and implementation A GIU was established in the office of the PMU of OIIAWMIP to oversee and facilitate implementation of the JFPR project. The GIU was responsible for day-to-day operations, including coordination with various agencies, procurement, financial management, and monitoring of the progress of implementation. At the PMU level ADB recruited an international consultant to work as the grant project coordinator. In each subproject, one full time SPC was recruited directly by ADB to facilitate and supervise the implementation. COs were recruited to assist the SPC in formation of CIGs and to provide handholding support to CIG members. For three subprojects a total of 8 SPCs and 19 COs were engaged for during the entire implementation period of JFPR. To track the progress of project implementation no specific project monitoring information system was developed. MPRs were prepared by the respective SPCs and shared with GIU which contained the physical and financial progresses of the project for each month. In addition to the MPRs, other mechanisms such as periodic review meetings in GIU and field visit of CIGs were used to track the progress of implementation.

JFPR Visibility: GIU organized a number of interactive sessions with CIG members in which purpose and objectives of JFPR grant were discussed. The banners in awareness trainings and workshops on implementation of livelihood activities mentioned about JFPR grant. The distribution of goats to the CIG members were made through a distribution ceremony. The banners at distribution ceremony had JFPR logo. The documentation of mushroom production process carried JFPR logo. The CIG members were aware about the financial assistance given by JFPR and each CIG had banners that mentioned about the JFPR. In addition, news clips in the Odia Newspaper carried information about the financial assistance from Government of Japan.

Exit Strategy and Sustainability: The project design did not have provision for specific exit strategy to be put in place before the end of intervention. The CIG members came to know about the end of grant only a few months before. Though majority of the COs advised the CIG members to continue the group activities and try for any other government support, some COs could not provide adequate guidance on how to grow further and the usefulness of the group after the end of the project. A sample assessment revealed that in most of the CIGs the monthly group meetings were no longer being held; the monthly group saving was no longer in practice; and effort to expand the activities through bank linkage were absent. Though various linkage mechanisms on availability of raw material, marketing of the product was introduced during the implementation, the CIG members could not get guidance to address the challenges related to these mechanisms. For example, after the project the availability of quality spawn bottles was a major challenge for CIGs engaged in mushroom cultivation.

11

On sustainability, a sample assessment post project implementation revealed a mixed picture. The degree and extent of sustainability varied across the type of livelihood activities implemented. Findings showed that Goat Farming is sustainable across the subprojects. Almost all the CIG members are still engaged in goat farming as their main income generation activity and reported increase in income from selling the goats. For most of them, goat farming is easy to manage as buying and selling of goat is done locally and grazing space is available near to their dwellings. However, majority of them faced challenges such as limited awareness of symptoms of important diseases, poor access to treatment facilities, and mortality of goats and bucks which affected their earning. During the assessment it was found that majority of them continued to sell their goats to local traders without proper weight measurement. The project made an attempt to bring value addition through breed improvement. Due to several challenges such as mortality of bucks from other regions due to stress factor and unavailability of quality breed of buck locally this could not be done. Despite this, almost all of them felt that goat is an important asset for them, and they would continue this activity.

There were 16 CIGs in Taladanda I&II who were involved in mushroom cultivation. This was a new activity for these CIGs. During the sample assessment CIG members revealed that they earned profit from the mushroom farming during the project. However, after the end of the project quality spawn from the nearby unit was not available and use of low quality spawn reduced the yield of mushroom drastically. There was lack of interest among the CIG members to buy quality spawn from Dandamukundapur (Puri district) as distance was too far and transportation of spawn bottles from that place remained a challenge. Unavailability of paddy straw locally due to cutting of crops by machine was another challenge. CIG members reported difficulty in marketing of the mushroom. There was very limited demand for oyster mushroom as the local people did not like the taste. Paddy straw mushroom was a highly perishable product and needed good marketing linkage for immediate sale. Though linkage was established with marketing cadres (animators) to sell it in local market with a commission, such mechanism could not sustain for long. Though CIG members had realized that straw mushroom cultivation was a profitable activity, the challenge of procurement of quality spawn and immediate sell of the produce were potential barriers which affected the sustainability. Four CIGs were involved into bamboo crafting, and one engaged in cane products. The sample assessment showed that this activity is highly sustainable. The community was practicing these trades before and the activities were pursued at individual level and with a very limited scale. Under the project the formation of CIGs and provisions of capital and training support expanded the business and led to increase the income. In bamboo crafting, CIG members used the capital to take a patch of community led cane forest in lease which reduced the cost of raw material. They also used the capital for providing loan to members of group with interest. The training in marketing and exposure visit helped them to prepare various type of decorative items and they sold it in remunerative markets such as fairs and handicraft exhibitions. Overall, the livelihood activities are likely sustainable as the CIG members are continuing with their livelihood activities except mushroom farming.

17. Overall Assessment and Rating

Overall, the project is rated successful. The project design allowed that the benefits of the grant directly reached the most vulnerable households. There was a strong emphasis on participatory planning, and validation for identification of vulnerable households. Almost all the activities were delivered largely as envisaged in the DMF of the JFPR grant proposal. The pilot testing of models for formation of informal subgroups under the PP could not be carried out due to disagreement between DoWR and implementing NGOs of OIIAWMIP. The project could not be completed within the original target completion date due to multiple factors, i.e., delay in commencement, change in implementation arrangement, and revised fund disbursement procedure. All the activities mentioned in the approved BDP were completed though these activities were achieved in the last 15 months of the project. The project was efficient as the project objectives were met within the budgetary target.

12

To prevent leakage and wasteful expenditure, the grant money for livelihood activities were spent as per the approved BDP supported by resolutions of CIG members. The comparison of findings baseline and end line survey, data from PCR and a sample assessment post project implementation suggested that all the extremely poor households reported increase in household income from the livelihood activities. The livelihood activities are likely sustainable as the CIG members are continuing with their livelihood activities except mushroom farming. The performance of ADB and EA is rated satisfactory as both of them made efforts to address the challenges arose during the course of the project. The DoWR made efforts to link the existing CIGs with the Odisha Livelihood Mission (OLM).

18. Major Lessons Learned:

The performance indicators and project outputs should be clearly linked with the outcome of grant project instead of the associated project. The review of the original DMF indicated that some of the performance indicators and outputs were linked to the associated project (OIIAWMIP). For example, output 2 of the DMF mentions about participation and equal representation of women, STs, SCs, and marginal cultivators in the PPs. The achievement of this output was contingent on the capacity building of SSTs, COs, NGO staff as well as women water users under project 1 of OIIAWMIP.

Options regarding potential livelihood activities for the CIGs should be decided on the basis of community needs assessment. A needs assessment study among the targeted community help in identifying the community needs and the best local knowledge on the feasibility of a livelihood activity. Though CIGs were offered various options to select a particular livelihood activity, there was no involvement of the community in identifying the options.

Building leadership skill of CIG members through local champions. The capacity building of CIG members was done at group level. Considering the fact that most of the members were illiterate and belonged to low socio-economic status it was difficult to change their attitude in a limited period. Peer-based training modality could be employed as the community is better influenced by a leader from own community. The project could have identified one or two champions from each group and built their leadership skill so that in the absence of implementation staff these champions would mentor other group members.

Capacity building of CIG members should also focus on group activities and management skills for growth and sustainability. Training of CIGs were mainly focused on awareness building and technical training to implement the livelihood activities. Due to lack of emphasis on group activities, management skills and leadership building the CIGs were not able to continue the group functions.

Supervision by implementation staff at the district level should have been more effective. The project relied more on the GIU officials for supervising the work of SPCs and COs. The GIU officials were overburdened with other responsibilities and could not find enough time for adequate supervision of the SPCs and COs. Areas covered under Remal and Sunei subprojects were very far away from the GIU. Though SIOs were established there was no dedicated staff for supervision. At the district level, the involvement of Executive Engineer was mainly limited to disbursement of funds to the CIGs. The DoWR could have developed a mechanism for supervision of SPCs and COs by district level staff.

13

Convergence efforts at district level are more effective as most of the schemes are implemented from the district. For capacity building and other technical support, the DoWR coordinated with other departments/institutions such as KVK, and Animal Husbandry and Veterinary Services Department (AH & VS). No effort was made at the district level with other departments for linking the existing CIGs with other government schemes. Most of the poverty reduction and livelihood enhancement schemes are implemented from the district office. The implementation staff could have approached the District Magistrate for help regarding convergence. Availability of market is a critical component of success of any income generation activity. In the case of goat farming, local markets and traders were available for easy selling of goats. However, there was no such market for straw mushroom and the failure to sustain the established linkage post implementation affected the income generation activity. The strategy adopted for marketing of straw mushroom needs to be revisited as straw mushroom is a highly perishable item. 19. Recommendations and Follow-up Actions:

Post project, the DoWR should develop support mechanisms for effective management of livelihood activities by community. For a sustained livelihood strengthening project targeted at poor and vulnerable community it is important to provide them post implementation support through mentoring and handholding. The EA should link the CIGs with the respective PP for mentoring and guidance.

Linking the existing CIGs with other government schemes. The DoWR should explore various avenues for linking the existing CIGs with other government schemes such as Mission Shakti21 and OLM. The CIG members had the skill and willingness to take up income generating activities. These CIGs could be easily adopted by other similar schemes as they are already aware of the group processes and functioning.

Various modalities should be explored to make the group based approach more sustained. The provision of a revolving fund is one of the modalities which incentivizes the members to continue with the group even after the completion of the project. ADB should consider various modalities in future JFPR grants where group-based approach (CIG, SHG) has a key role to achieve the objectives.

The DoWR should scale up potential livelihood activities in other areas having similar socio-economic characteristics of the population. The grant project offered DoWR important lessons on sustainability of various livelihood activities. The DoWR should discuss with the relevant department of Government of Odisha to scale up the potential livelihood activities in other areas having similar socio-economic characteristics.

21 Mission Shakti program is run by Women and Child Development Department, Government of Odisha. The aim is economic upliftment of poor women in rural areas.

14

20. Additional Remarks, Comments and Suggestions:

Despite the delay in implementation of livelihood activities, CIG members were continuing with their livelihood activities except mushroom farming. The members were managing the livelihood activities at individual level. In the CIGs having male members, the previously performed group processes (Monthly group meeting, contribution to group saving) were no more in existence. However, some women groups were still continuing with the group meeting, contribution to group saving, and lending to group members but did not have the leadership skill to expand their group activities.

16

Appendix 1

DESIGN AND MONITORING FRAMEWORK Design Summary Performance Targets

and/or Indicators Status on Project Completion

Impact Reduced poverty and better performance of Pani Panchayat in four irrigation schemes.

Outcome Improved livelihoods and increased equitable representation of disadvantaged people in the Pani Panchayat of four subproject irrigation schemes.

In the four subprojects, increase the income of 20% of extremely poor people by the end of year 3 of the intervention. At least 30% representation of women in Pani Panchayats achieved by the end of year 3 of the intervention.

The grant was originally envisaged to be implemented in four subprojects. Gohira subproject was dropped due to withdrawal of implementation NGO. The grant was implemented in three subprojects (Taladanda, Remal and Sunei). However, the dropping of Gohira subproject did not affect the achievement in terms of number of CIG formation targeted. To compensate for the number of planned CIGs in Gohira, the number of CIGs were increased in Taladanda-I & II and Taladanda-I & III to reach the project target of 192 CIG. The target of formation of 192 CIGs, covering 3,045 extremely poor households and 11,911 people, was achieved. Of the total CIG members, 100% belonged to extremely poor people. The target of increasing the income of 20% of extremely poor people was achieved. Comparison of baseline and end line survey findings in the year 2016 showed that, 69.3% extremely poor households reported 15% increase in income while for 30.7% extremely poor households the increase in income was 10%. There were 239 extremely poor households across 16 CIGs, who adopted mushroom cultivation. At the completion of intervention each household earned additional income of INR 3,500 per month. There were 2,731 extremely poor households across 170 CIGs who were involved in goat farming activity. During a sample assessment in March 2019 data on net profit was collected from some of these CIG members across the three subprojects. The finding showed that on an average the yearly net profit from goat farming per vulnerable household is INR 16,222 which is INR 1,351/ per month per household. By the end of year 3 of the intervention, 30% representation of women in Pani Panchayats achieved.

Outputs 1. The income of poor water users, including marginal cultivators,

CIGs for income generation are functional; 150 groups in Gohira, 150 groups in Sunei, 200

The total number of CIGs formed under the project was different from the number envisaged in the DMF as the target of reaching 3045 extremely poor households

17

women, scheduled tribes, and scheduled castes improved

groups in Remal medium-sized schemes, and 450 groups in Taladanda scheme formed and strengthened. At least 10 CIG pilots under the Pani Panchayat system.

were achieved through formation of 192 CIGs. The revised target of formation of 192 CIGs, covering 3,045 extremely poor households and 11,911 people, was achieved. Of the total CIGs, 170 are involved in goat farming, 16 are involved in mushroom cultivation, 4 are in bamboo crafting, 1 each engaged in cane products and rice trading. Under the project, a number of capacity building activities were conducted for general awareness building of CIG members with regard to the chosen livelihood activity and exposure visits and technical trainings for implementation of the chosen livelihood activity. To implement the chosen livelihood activity funds were disbursed to the CIG group account as per the approved BDP. A total amount of INR 68,404,002 was disbursed from the GIU to the 192 CIGs. Comparison of baseline and endline survey findings showed, out of 3045 extremely poor households, 2113 households reported 15% increase in income while for the rest the increase in income was 10%. The pilot testing of models for formation of informal subgroups under the PP could not be carried out due to the disagreement between DoWR and the implementing NGOs on social mobilization methodology.

2. Participation and equal representation of women, scheduled tribes, scheduled castes, and marginal cultivators in the Pani Panchayats for enhanced and equitable water distribution, and better maintenance of water distribution structures strengthened

30% female representation in the Pani Panchayat membership and Pani Panchayat executive committees of the four aforementioned irrigation schemes achieved. 20% participation and proportional representation of scheduled tribes, scheduled castes, and marginal cultivators in Pani Panchayats and executive committees.

The target of 30% female representation in the PP membership and PP executive committees of the four irrigation schemes was achieved. The target of 20% participation and proportional representation of scheduled tribes, scheduled castes, and marginal cultivators in PPs and executive committees was achieved. About 62% of women and 74% of SC and ST were enrolled in PPs. The target of 33% women representation in the PP executive committee was achieved in all the subprojects where elections were held. Out of the 854 executive members in Gohira, Remal, and Sunei subprojects, about 33% were SCs and STs (in Taladanda elections in most of the PPs were not held).

3. The capacities of DOWR and NGOs in the functional areas of training, consultancy, and information services for proportional and

At least 20% of DOWR CAD/Pani Panchayat directorate and NGO staff is able to undertake inclusive and equitable Pani Panchayat mobilization and training

The DoWR implemented a capacity development plan for all staff. The staff capacity was strengthened through the project, with over 4,200 staff participated in 132 different training programs on topics such as project management, PP strengthening. DoWR conducted 748 training

18

inclusive participation in the Pani Panchayat improved

fieldwork, measured by increased participation of disadvantaged people in Pani Panchayats.

sessions in PP management, agriculture and horticulture-related activities. In addition, 13 inter-state training-cum-exposure visits were held in which 16 DoWR officials and 513 PP members participated to learn about successful PIM. Out of the 854 executive members in Gohira, Remal, and Sunei subprojects, about 33% were SCs and STs (in Taladanda elections in most of the PPs were not held).

4. Project management and implementation

Project successfully implemented and management information system followed.

A Grant Implementation Unit (GIU) was established in the office of the Project Management Unit (PMU) of OIIAWMIP to oversee and facilitate implementation of the JFPR project. The GIU was responsible for day-to-day operations, including coordination with various agencies, procurement, financial management, and monitoring of the progress of implementation. At the PMU level ADB recruited an international consultant to work as the grant project coordinator. In each subproject, one full time SPC was recruited directly by ADB to facilitate and supervise the implementation. Community Organizers (CO) were recruited to assist the SPC in formation of CIGs and to provide handholding support to CIG members. For three subprojects a total of 8 SPCs and 19 COs were engaged during the entire implementation period of JFPR. To track the progress of project implementation no specific project monitoring information system was developed. MPRs were prepared by the respective SPCs and shared with GIU which contained the physical and financial progresses of the project for each month. In addition to the MPR, other mechanisms such as periodic review meeting in GIU and field visit of CIGs were used to track the progress of implementation.

ADB = Asian Development Bank, CAD = command area development, CIG = common interest groups, CO= Community Organizer, DOWR = Department of Water Resources, GIU = grant implementation unit, JFPR = Japan Fund for Poverty Reduction, MIS = management information system, MPR= Monthly Progress Report, NGO = nongovernment organization, O&M = operation and maintenance, OIIAWMIP = Orissa Integrated Irrigated Agriculture and Water Management Investment Program, PIM = participatory irrigation management, PMU = project management unit, PP= Pani Panchayat, SHG = self-help groups, SC=Scheduled Caste, ST=Scheduled Tribe, SIO = subproject implementation office, SPC= Subproject Coordinator, TA = technical assistance.

19

Appendix 2

ADB Memorandum Matrix

Sl No.

Date of Memo Key decisions

1 5-11- 2011

-Due to project implementation delays and streamlining of field processes adaptation in implementation methodology, DoWR to request to ADB for a one-year extension. -JFPR implementation draft methodology and plan to be reviewed by PMU for finalization

2 2-12-2011 -Minor change in implementation arrangement was to allow ADB to individually recruit National Subproject Coordinators (SPCs) to supervise and monitor the implementation of field level activities

3 21-05-2014 -State government requested ADB to consider expansion of grant financing to livelihood activities in cyclone affected districts. -Reallocation of grant funds -Request to extend the grant completion date from 17 July 2014 to 17 December 2015

4 4-08-2015 -DoWR to request an extension of the grant implementation period till 31 March 2017. -DoWR management decided to depute a Deputy JFPR Director, GIU to manage day to day activities and supervision of subproject coordinators.

5 16-12-2015 -A total of 192 CIGs have been formed and registered. -DoWR sent a request to DEA to extend the implementation period 31 March 2017. -CIGs of Remal and Sunei will be responsible to buy the goats from local suppliers

6 28-12-2015 -The fourth extension of the implementation period until 31 March 2017 was approved

7 31-05-2016 - A final extension of the grant implementation period was approved, and the grant closing date is 31 March 2017. -JFPR transferred from ADB headquarters to ADB’s India Resident Mission -Suggestion to open bank accounts by all CIG members for direct money transfer in the beneficiary accounts for the project activities.

8 7 June 2016 -Reallocation of grant funds (To move all remaining balances into i) Grant Management, ii) Studies and Surveys, and iii) Consulting Services-ADB

9 20-02- 2017 -All CIG activities including physical and financial targets have been completed -The draft Project Completion Report to be submitted to GIU and ADB concurrently by 15 March 2017

ADB = Asian Development Bank, CIG= Common Interest Group, DEA= Department of Economic Affairs, DOWR = Department of Water Resources, GIU = grant implementation unit, JFPR = Japan Fund for Poverty Reduction, PMU = project management unit, SPC= Subproject Coordinator

20

Appendix 3

Table 3a: Final Utilization under the Grant

All Amounts in US$

Code Description Allocation Contracts Disbursed Uncommitted

1100 Consultants-ADB 8,31,071.78 8,38,134.63 8,38,134.63 7,062.85

1200 Equipment - - - -

1400 Studies, Surveys, and Reports

16,448.45 16,298.76 16,298.76 149.69

1900 Contingency - - - -

3901 Grant Management (net of tax)

1,52,479.77 0,44,477.03 10,44,477.03 1,08,002.74

TOTALS 20,00,000.00 18,98,910.42 18,98,910.42 1,01,089.58

21

Appendix 4

Japanese Visibility during Implementation

1. Bata Baba CIG, Taladanda-I Subproject 2. Bagabata CIG, Taladanda-I Subproject

3. Gopinath CIG, Taladanda-I Subproject 4. Jatia Baba CIG, Taladanda-I Subproject

5. Jai Ganesh CIG, Taladanda-I Subproject 6. KamaleshwarCIG,Taladanda-I

Subproject

22

25. Haraparbati CIG, Taladanda-II Subproject 26. Maa Barunei CIG, Taladanda-II Subproject

27. Maa Ramachandi CIG, Taladanda-II Subproject 28. Trinath CIG, Taladanda-II Subproject

29. Anantamadhabi CIG, Taladanda-II Subproject 30. Baba Amreswar CIG, Taladanda-II Subproject

23

PD, GIU participated in the interactive session with CIG members-Taladanda-I & II in Dec 2016

Dy. JFPR Dir addressing queries raised by CIG members

ADB Mission visited Baba Baidyanath CIG and interacting with CIG members

Dy. Dir, GIU participated in the interactive session with CIG members-Taladanda-I & III in Dec 2016

Belabihar CIG members documented the mushroom production process

PD, GIU addressing CIG office bearers in Manijanga (T-I & II Subproject)

24

NEWS PUBLISHED IN ODIA DAILY NEWSPAPER