World Bank Document · 2016. 7. 11. · Government of Bihar (GOB) has placed emphasis on development of groundwater. The proposed Bihar Public Tubewells Project would support this

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The World Bank

FOR OVm CIAL USE ONLY

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Reprnt N.. 6034-IN

STAFF APPRAISAL REPORT

INDIA

BIHAR PUBLIC TUBEWELL PROJECT

August 15, 1986

South Asia Projects DepartmentIrrigation II Division

Tis document has a resdeted distrIbudon and may be sed by recipients dnly In the performance oftheir offieal duties. Its otents may not othenrie be disclosed without World Bank autborition.

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CURRENCY EQUIVALENTS

US$W.00 Rupees (Rs) 13.0 I/

WEIGHTS AND MEASURES (METRIC SYSTEM) i

1 meter (a) m 3.28 feet (ft)1 kilometer (km) 0 0.62 miles (mi)1 hectare (ha) - - 2.47 acres (ac)-1 million cubic meters (Nm3) ( 810 acre-feet (ac-ft)I billion cubic-meters (Bm3) = 0,81 Million scre-feet (MAO)1 cubic foot per second (cfs or cusec) - 0.028 cubic meters per second (m3/h)1 kilogram (kg) = 2.2 pounds (lb)1 metric ton (mt) = 2,205 pounds (lb)

FISCAL YEAR

GOI; GOB April 1 - March 31

ij The US Dollar/Rupee exchange rate is subject to change. Conversionsin this report have been made at US$1.00 to Rs 13.0.

if The metric system has been used in most cases. However, India is stillin the process of transition to the metric system; non-metric units arestill widely used and have been used in this report where a conversionto the metric system may confuse the reader.

FOR OFFCIUL USE ONLY

ABBREVIATIONS

Al - Assistaut EngineerARDC - Agricultural Refinance Development CorporationB8EB - Bihar State Electricity BoardBWDC - Bibar Water Development CorporationCCA - Cultivable Command AreaCCF - Construction Conversion FactorCE - Chief EngineerCWC - Central Water CommissionDOA - Department of AgricultureEE - Executive EngineerERR - Economic Rate of ReturnFCF - Foodgrain Conversion FactorGOB - Government of BiharGOI - Government of IndiaRYV - High Yielding VarietiesICB - International Competitive BiddingID - Irrigation DepartmentIDA - International Development AssociationIPDU - Investigation Planning and Design UnitIST - Improved Standard TubewellJE - Junior EngineerLCB - Local Competitive BiddingM&K - Monitoring and EvaluationMID - Minor Irrigation DepartmentOD - Outside DiameterO&M - Operation and MaintenancePAU - Project Accounting UnitPC - Project Co-ordinatorPCU - Project Co-ordinating UnitPTW - Public Tubevell SystemPU - Procurement UnitQCU - Quality Conrol UnitSCF - Standard Conversion FactorSDV - Supplementary Data VolumeSE - Superintending EngineerTMEU - Training and Monitoring and Evaluation UnitTW - Tubevell Wing of the MIDT&V - Training and VisitkV - kilovolt - 1,000 volts

GLOSSARY

Kharif - Wet season (June to October)Rabi - Dry season (November to February)Zaid - Not weather season (March to May)levee - River flood control embankmentSchedpled Tribes and Castes - Lower tribal and castes peopleof India as scheduled in Articles 341, 342 and 366 of theIndian Constitution.

This document has a restricted distribution and may be used by recipients only in the performanceof their offcia duties. Its contents may not otherwise be disclosed without World Bank authorization.

INDIA

BIRk PUBLIC TUBEWELL PROJECT

Credit and Protect Summary

Xprrower: India, acting by its President (GOI)

Beneficiary: Government of Bihar (GOB)

Amoun&:- IDA Credit: SDR 59.5 million(US$68.0 million equivalent)

Terms: Standard

On-lendiuf Terms: From the GOI to the GOB as part of centralassistance for State development projects onterms and conditions applicable at the time.GOI would bear the foreign exchange risk.

Project Description: The proposed project would comprise a seven yearprogram for rehabilitating and modernizingexisting public tubewells and constructing newpublic tubewell irrigation systems. It wouldsupport: (i) construction of about 500 newpublic tubewells; (ii) modernization of about1,000 existing tubewells; (iii) rehabilitationof about 3,700 existing tubewells; (iv) construc-tion of dedicated power lines to about 5,200tubewells throughout the State; and (v) improve-ments to management, including construction ofbuildings, provision of vehicles and equipment,training, monitoring and evaluation, andtechnical assistance to undertake specialstudies. The project would increase agriculturalproduction and the standard of living of smalland marginal farmers in Bihar and improve theutilization of existing public tubevella.The level of utilization of existing publictubevells suggests that there could be anapparent risk of inadequate farmer response.However, the present lack of demand for irriga-tion water is primarily due to the poor qualityof the irrigation service offered. Under theproject, the risk would be minimized through theapplication of proven designs of works andimproved technology which would ensure theprovision of a reliable, timely aud equitableirrigation service.


Staff AUbraisal Retort

Table of Contents

. , BCKGROUND ..........

General , 1Agriculture and Irrigation in India ....... I........... The State of Bihar - 2Bank Group Operations in Sibar ....................... 5

II. THE PROJECT AEA AND RESENT DEVELOPMENT ............... 5

Salient Features............................. 5Water Resources and Utilization........................ 7Present Agricultural Development...................... 7Agricultural Supporting Servicesrvices.. .o * .... 8

III. PRsFoRM^NcE O PUBLIC TUBMWLLS ..4.......................................... 11

Bihar Water Development Corporation ..... .............. 11Past Performance of Public Tubewell Systems ..... ...... 12

IV. THE-PROeEr ............................................... 13

A. Project Formulation and Objectives ..................... 13ceneral .... , , ~~~~~~~~13

Project Concept and Objectives......................... 13.Rationale of BaTk Group Involvement.................... 14

B. Project Description .............. ..................... 148ummary .... * ~~~~~~~~14

Improved Design Standards for New Systems .............. 15Modernization of Existing Systems ...................... 17Rehabilitation of Existing Systems .................... 17Power Supply............................. 18-Management s ............................ 19

C. Planning and Implementation............................ 20Siting Cr iteria ............................ 20Survey and Design. ............... 21Irrigation Water Requirementse.........e.e............... 21Project tmplementation. ........................... 22

This report is based on the findings of a Bank Mission which visited Indiain September/October 1985, and comprised of Messrs. John F. Cunninghamand P. Ram (IDA); Mr. C. Bevan (FAO/CP); and Messrs. D. Campbell, M. Barber,V. Byrappa, Rajat De, Rama Rao and A. Saikia (Consultants). Word processingwas done by Ms. R. Landerer and Mrs. S. Douglas. Messrs. P. Kidane andand D. Kraatz (FAO/CP) also assisted in the preparation and appraisal of theproject.

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V. PROJECT COST AND FINANCING ............................ 23

Comstes ......................... 23Financing.. ..... ~ .. . ~ .9..... ~.*..*** . , a.... a, . 24

Disbursemenits 26Accounts and Audits .......... 27

VI. ORGANIZATION AND M.NU NAG.ENT .......... 28

- Bsekground ........ - * , - ~~28The Tubevell Wing..........e....................... 28Operation and Maintenance .... 31Tubevell Farmers' Organization... .... 32Other Project Management Activities . 32Bihar State Electricity Board . 34Department of Agriculture . ., 35

VII. AGRICULTURAL PRODUCTION, MARKET PROSPECTS AND PRICES..... 35

Cropping Patters..... 35Future Crop Yields .. ... a...... 36Input Requirements.................................. 36Market Prospects and e... . . 37

VIII. FINANCIAL ANALYSIS ............ ........... 38

General....................w...........,..... 38Farm Incomes ........................................ 38Repayment Capacity of Farmers.................... 39Capital and O&M Costs ............ .39

Present Cost Recovery 40Cost Recovery under the Project ....................... 41Immediate Action Plan ... 41Medium Term Action Plan 4.......2...................... 42Projected Level of Cost Recovery.................... 44

IX. BENEFITS AND JUSTIFICSATIEONT......... ........... 44

Gqeneral ....... 44Economic Amalysis................ 46Sensitivity and Risk Analysis 47Environmental Effects ............. 48

X. AGREEMENTS REACHED AND R9XiMM}NDATIONS....* ...*. .*..o.o* 48

SUPPORTING TABLES

T-1 Agricultural Production - The State of Bihbar........ 52T-2 Gross Irrigated Area - The State of Bihar..........- 53T-3 Climatologica1 Data ....................... 54T-4 Groundwater Balance for Project Districts.WWq..94..4 55

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T-5 Cropping Patterns by Agro-Climatic Zones ........... 56T-6 Performance of Public Tubewells in Bihar...*........ 57T-7 Cost Estimates by Project Components*................ 58T-8 Annual Expenditure Schedule ........................ 59T-9 A. Proposed Credit Allocation ....................... 60

B. Estimated Schedule of IDA Disbursements ......... 60T-10 Organization Schedule ............ .... ....... ... 61-11 Staffing Schedule. ......................... . 62

T-12 Estimated Incremental Rent and Cost Recovery.... .0 .. 63T-13 Annual Project Costs ......... .. 64T-14 Present Water Charges. ......................... 65T-15 Benefit and Cost Streams for Economic Analysis ...... 66

CHARTS

C-1 Number of Public Tubewell6 - Present Situationand Proposed Project Activities ..................... 67

C-2 Typical Tubevell Design ............ e................. 68C-3 Schematic Layout for a Distribution System for

Typical Improved Standard Tubewell Command*......06 69C-4 Project Implementation Schedule .................... 70C-5 Tubevell Wing - Minor Irrigation Department

Prop sed Organization Chart ........................ 71

ANNMEXES

Annex 1 - Documents Available in Project File ............ 72Annex 2 - Assumptions for Financial and Economic

AnalyBsi .... .................... 73Annex 3 - Detailed Cost Estimates and Schedules for

Provision of Principal Materials .............. 87Annex 4 - Terms of Reference - Tubewell Wing Management

Study ................................... 93

MAPS

IBRD 19278 - Project AreaIBRD 19378 - Mean Annual Rainfall and Agro-climatic ZonesIBRD 19379 - Major Soil AssociationsIBRD 19377 - Hydrogeology

Volume II - Supplementary Data

Annex 5 - Ground Water ResourcesAnnex 6 - Agricultural DevelopmentAnnex 7 - Tubewell Irrigation Systems - Planning

and DesignAnnex 8 - Power Supply and DemandAnnex 9 - Project OrganizationAnnex 10 - Cost RecoveryAnnex 11 - Monitoring and EvaluationAnnex 12 - Training Program

INDIA


Staff Af_ raisal Report

I. BACKGROUND

General

1.01 The State of Bihar, located in the northeastern part of India, isgenerally well endowed with both surface and groundwater. Irrigation isnecessary for crop production during the dry seasou and to stabilize produc-tion in the wet season. In Bihar, public tubewell irrigation schemes haverelatively low development costs per unit command area, short gestationperiods, and can be designed and managed to provide a reliable sources ofirrigation water. With irrigation development based on groundw'ater, storageis provided naturally, conveyance from well to field is over short distance-,water can be tapped and delivered to farmers' fields quickly, and irrigationcan be timely. Moreover, tubevells can be located to serve a high proportionof small and marginal farmers as a special target group. Consequently,Government of Bihar (GOB) has placed emphasis on development of groundwater.The proposed Bihar Public Tubewells Project would support this developmentstrategy.

1.02 Public tubewells, each commanding 100 ha or more, are normally con-structed in areas where gravity irrigation is not feasible and where thepotential for construction for shallow tubewells is limited due to the deptho.f the aquifer. From the equity point of view, public tubewells aredesirable to overcome the underutilization of both land and groundwaterresources in certain areas where fragmented and small holdings make the costof private tubewells prohibitively high for small farmers. Consequently, theweakest' elements of the farming population continue to depend on the publicsector if their land and groundwater resources are to be effectively andefficiently utilized. The GOB has recognized the need for a continuing andsubstantial investment in the public groundwater sector in those areas whereconditions are appropriate to complement the private sector development.

Agriculture and Irrigation in India l/

1.03 India has a population of about 760 M (mid-1985) which is growing atan annual rate of 2.2%. Over the last decade, per capita income has grown atan average annual rate of 1.61 and reached Rs 2,200 (US$213 N) in 1983/84, incurrent prices. Although average per capita income has increased, and accessto public services has improved, growth ha8 been too slow to bring about morethan a gradual reduction in the incidence of poverty. Accordingly, Govern-ment of India (GOI) development plans give priority to alleviating povertyand creating employment, especially in rurai areas.

1.04 Agriculture is a dominant sector of the Indian economy and con-tributed about 36% of GNP in 1984/85. It engages about 70% of the labor

l/ A detailed review is given in "Situation and Prospects of the IndianEconomy - A Medium Term Prospective", IBRD Report No. 4962-IN, April,1984; and "India: Structural Change and Development Prospectives", IBRDReport No. 5593-IN, April 1985.

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force and provides the base for about 30X of India's exports. During thelast decade, GOI bas devoted considerable attention to agriculture in itsdevelopment plans. To support agricultural growth, GOI has: (i) acceleratedirrigation development through modernization of existing surface waterschemes and construction of new schemes; (ii) supported minor irrigationdevelopment, particularly that based on groundwater, through direct publicintervention and through support of the long term credit system for privateuse; and (iii) improved agricultural supporting servicea to better utilizeland and water resources.

1.05 Groundwater development has been impressive over the last twodecades. The rate of creation of irrigation potential from groundwaterincreased from 0.5 N ha per annum by the end of the Fourth Plan (1973/74) to1.1 M ha per annum in 1977/78 and 1.4 M ha in 1982/83. At present, netgroundwater extraction within India is estimated to be about one-half of meanannual recharge. The bulk of future groundwater development must now occurin the Eastern Region of In-ia where only about one-third of the ultimatepotential has been developed. Of the 3.5 M ha of groundwater irrigationdeveloped during the Fifth PlaIn (1973-78), about 2.2 M ha, or 62%, were inthe Eastern Region and the growth rate of area i-rigated by groundwater inthe region during this period was 6.5% p.a. compared with 3% p.a. in the restof India.

The State of Bihar

1.06 Salient Features. The State of Bihar covers an area of 17.4 M haand has a population of about 74.1 M (mid 1984) of which about 64.2 N (87X)live in rural areas in some 78,000 villagls. It is one of the most denselypopulated States in India (426 persons/km') and a high proportion of itspopulation (13X) belongs to scheduled tribes and castes (see glossary). Thehealth standards are low and there are only 35 bospital beds and 23 doctorsper 100,000 of population. The literacy rate in Bihar is about 26% comparedto the national average of 36S. Although Bihar is rich in natural resources(including minerals, coal, lumb.r, uranium, and iron), their development hasbeen slow and the State benefits very little from their exploitation. Roaddensity reached 41 km per 100,000 of population (1981) compared to all Indiarate of 101 km. Extensive areas, mainly in north Bihar are still isolateddue to lack of road or railway development. Telephone communication withinthe State and to the outside is poor.

1.07 The Economy. The agricultural sector dominates the State's economyand in 1980/81 accounted for 45% of the State's Domestic Product (SDP),employing about 80% of the working population. The industrial sectorprovides only about 10 of the SDP and employs 7% of the working population.Per capita income is the lowest in India. A preliminary estimate for 1984/85indicates that the State per capita income averaged about Rs 1,325 (US$111)in current prices. During the last decade per capita income has grown at anaverage annual rate of 1.12, which was considerably lower than the averagefor India (1.6Z). About 50X of the State's population lives below thepoverty line. In the Sixth Five Year Plar (1980-85) per capita investmentfor the State was Rs 572, while the all India average was Rs 872. The lowinvestment rate is a major reason for Bihar's lagging behind other states ineconomic growth. The official unemployment rate is about 6%, but severe

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underemployment prevails in the State, mainly among rural people. Most ofthe infrastructure is in bad shape and poorly maintained.

1.08 The Agricultural Sector. The most productive parts of the State arethe northern plains between the Ganges river aud the Nepal border made up ofyoung alluvial soils and the central plains cousisting of older Alluviumslying along .ae southern banks of the Ganges (para 2.10). The Chotanag-pur/Santhal Parganas Plateau covering most-of the southern half of the Stateis made up of red and yellow soils which have limited agricultur.al potential.

1.09 Areas, yields and production of major crops in Bihar are given inTable T-1. Agriculture in Bihar is characterized by small scale subsistencefarming, devoted mainly to cereal cultivation. Input application is belowthe recommended level and adoption of improved practices is generally slow.Most of the cultivable land in the State (11.5 X ha) is already cropped ofwhich about 90% (10.3 M ha) is under foodgrains (mainly paddy, wheat andmaize) and 1.2 M ha under non-foodgrain crops. Sugarcane, jute and potatoesare important cash crops, but presently account for only 4X (about 0.5 X ha)of the total area sown. Crop yields are generally low and could be increasedconsiderably with effective irrigation, proper input application and improvedfarming methods. During the 1970s, the annual growth rate of foodgrainproduction (0.8%) was much lower than the population growth rate (2.2Z).

1.10 Since practically all cultivable land is already under cultivation,any major expansion of production can come only from: ti) increase in cropyields; and (ii) increase in cropping intensity. This will require bothexpansion of irrigation to new areas and more effective water use in theareas already under irrigation. The State accords a high priority to irriga-tion development as a means of raising both agricultural production and theincomes of the rural poor.

1.11 Irrigation Development. Although annual rainfall averages about1,270 mm, ranging from 1,000 mm in south Bihar to about 1,700 mm in thenorth, it is often poorly distributed in the wet season and there is con-siderable inter-annual variation. Irrigation is therefore necessary for cropproduction in both the dry (rabi) season and to reduce risk in the wet(kharif) season. In this respect, the State is well endowed with both sur-face water and groundwater resou:ces. Annual utilizable surface waterresources are estimated at about 81 Bm3 (65.6 MAP) with about 62X availablein north Bihar, 17X in south Bihar and 21% in the Chotanagpur/Santhal Par-ganas Platcau. The surface irrigation potential in Bihar is estimated atabout 9.2 H ha of which about 5.2 M ha had been developed by 1984/85 withabout 2.9 M ha under large and medium schemes (over 2,000 ha) and 2.3 M haunder minor schemes. There is therefore ample scope for further developmentof surface water schemes. Annual groundwater resources are estimated at 41Bm3 (33.2 MAF) with exploitable resources mainly located in north Bihar andthe Gangetic alluvial traets of south Bihcr (Map ILED 19377). As of March1984, it was estimated that about one third of the groundwater resource wereutilized through about 5,300 public tubewells, 205,000 private wells and some21,000 open dug wellt. Details of areas irrigated from various water sourcesare given by districts in Table T-2.

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1.12 The State accords a high priority to irrigation with the sectorcontinuiing to receive a large share of the Five Year Plan allocations (aboutRs 1,612 4 or 23% in Seventh Five Year Plan). Bihar's irrigation developmentbudget is the fifth largest of the Indian States (after Uttar Pradesh, MadhyaPradesh, Maharashtra and Gujarat). Uider the current Seventh Five Year Plan(1985-1990), the strategy of GOB is to avoid starting new major irrigationprojects and use available resources almost entirely for rehabilitation,modernization and completion of existing surface irrigation schemes, con-struction of new medium and minor surface irrigation schemes, and for publicgroundwater development. In this respect, the state has allocated Rs 1,285 Mfor major and medium irrigation projects of which about 85% is allocated toon-going projects, 12% to new schemes and 3% to water development services.Provisions have also been made within this allocation for water managemeutand operation and maintenance expenses of the various projects. In addition,the Plan has allocated about Rs 327 M for minor irrigation developmentincluding groundwater development. It is expected, that by the end of theSeventh Plan, the additional irrigation potential created under publicirrigation projects will be about 0.64 M ha, of which 0.32 M ha will resultfrom major and medium surface irrigation schemes, 0.27 M ha from minor sur-face irrigation schemes, and about 0.05 M ha from public groundwater develop-ment. Private tubewell development, funded partly through credit, isexpected to add about 50,000 units (150,000 ha) annually and this developmentis likely to continue through the Plan period.

1.13 Power SuDRIY and Demand. Development of Bihar's electrical powerinfrastructure has been slow with only about 24% of the hydro-power potentialdeveloped. The per capita consumption of energy in the State is one of thelowest in India. During the period 1951/1984, average per capita consumptionof energy-in India increased from 18 to 146 kWh as compared to an increasefrom 20 to 89 kWh over the same period in Bihar. Total installed capacityfor pover generation of about 980 MW at the end of 1984/85 represented onlyabout 3% of the all-India capacity, though the State accounts for 10% ofIndia's population and includes a major area of heavy industry in DamodarValley. Bihar meets only half its power demand from its own generation, andimports the remainder from Uttar Pradesh, West Bengal, Orissa and Nepal. Themain contributor of energy within Bihar other than the State ElectricityBoard (BSEB) is the Damodar Valley Corporation.

1.14 The power problems in the State have been compounded by poor perfov-mance of thermal planLs which represent 84% of installed capacity operated bythe BSEB. Plant load factors at major thermal stations have fallen below 30%in recent years caused by poor quality coal, inherent design defects in somethermal generation units, long periods of outage for major maintenance, andthe age of some units. However, the BSEB is making strong efforts to improvethe performance of existing thermal genieration plants and overall plantfactors have increased to over 40% by the end of 1985. Two 110 MW thermalgeneration units were added during 19&5, with one located at Muzzafapur innorth Bihar where most of the project tubewells will be sited. Two addi-tional 110 MW units will be commissioned during 1986. -The Bihar system willalso benefit from two Central Government sponsored projects during 1986/87with 135 MW from Parakke Thermal Power Project (Cr. 1053-IN, 1980, US$225 M)and 55 MW from Chukka Hydel Project.

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1.15 The energy is transmitted through some 14,400 km of EHV transmissionlines (220 to 33 kY) and 47,700 km of 11 kV network throughout the State.Presently only about half of the villages have electric power compared to anall Idia average of 61X. In order to strengthen the transmission system,new 400 kV and 220 kV lines are under construction to link south Bihar, wheremost of the thermal geueration capacity is located, to aorth Bibar whereagricultural demand is greatest; this work is scheduled for completion ia1986-87 and has been supported by the Bank Group under the Fourth PowerTransmissiou Project (Cr. 604-IN, 1976, US$150 M). The Bak. is also support-ing rural electrification in Bihar througb the Third Rural ElectrificationProject (loan 2165-IN, 1982), a line of credit to the Rural ElectrificationCorporation (REC).

Bsak Group Operations in Bihar

1.16 The Bank has assisted Bihar with the implementation of severalagricultural development projects. -The gone Irrigation Project (Cr. 21-IN,1962, US$15 M) was amongst the first irrigation projects supported by theBank Group in India. The Bank has also supported the Bihar AgriculturalCredit Project (Cr. 440-IN, 1973, US$32 M) and four all-India AgriculturalRefinance Development Corporation (ARDC) projects (Cr. 540-IN, 1975;Cr. 715-IN, 1977; Cr. 947-IN, 1979; and Cr. 1209-IN, 1982); these generallines of credit provided institutional credit for private minor irrigationdevelopment, and other on-farm improvements in physical infrastructure andfarm equipment. Following the Eastern States Foodgrain Review (1976), theBank supported the Bihar Agricultural Extension and Research Project in Bihar(Cr. 761-IN, 1977, US$8 M) designed to strengthen agricultural supportingservices. The Bank is also supporting the on-going major SubernarekhaIrrigation Project (Cr. 1289-IN, 1983, US$181 M).

1.17 The Bihar Agricultural Credit Project (Cr. 440-IN) supported con-struction of public tubewells; though partly successful, performance wasseriously hampered by inadequate power supply, management problems, andshortcomings in the planning and design criteria particularly related to theirrigation distribution system. The formulation and planning of the proposedproject has taken into account the State, sector and project issues whichhave affected other Bank supported operations in Bihar and the lessons learntfrom these projects (Chapter III).

II. THE PROJECT AREA AND PRESENT DEVELOPMENT

Salient Features

2.01 location. The tubewell irrigation systems to be coustructed orrehabilitated under the project would be distributed in 26 of the 38administrative districts located in the northern Bihar (Map IBRD 19278). Theproject districts lie within the alluvial area of the Gangetic Plain which isunderlain by a good aquifer system suitable for groundwater development. Itis the most heavily populated and cultivated area of the State.

2-.02 Climate. The area has a tropical monsoon climate with a wet seasonextending from June though September followed by a dry season from Octoberthough Kay when some rain may occur (Table T-3). Mean annual rainfall ranges

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from about 1,000 to 1,700 mm (Map IBRD 19378) with about 852 occuring in themonsoon season. The times of onset and end of the monsoon season are uncer-tain and periods of drought also occur. Uncertainty regarding'amount auddistribution of rainfall make irrigation a prerequisite for successful cropproduction even during the monsoon season. December and January are thecoolest months with typical minima of about 90 C and maxima reaching about23°C. The highest temperatures occur in April and Kay when maximum tempera-tures are about 370 C. Humidity ranges from 52 to 832 in the Bihar plains andfrom 42 to 822 in the Bihar Plateau.

2.03 Tonoaraghv and Soils. While the regional topography is flat witha slight slope towards the major drainage line, there are variations at themicro topography level. Levees occur along the large rivers, part of thearea is gently rolling, and part is in broad swales, some of which are sub-ject to flooding. A variety of soils, all of alluvial origin, occurs withinthe project area. Their distribution reflects the proximity to the Himalayanfoothills and to the major rivers of the Ganges System (Map IBRD 19379).Soil texture range from light, highly drained sandy loam to poorly drainedclays. Some saline and alkaline soils occur with the most seriously affectedareas located iu the far west of the State. Fertility levels are low tomedium.

2.04 Land Use. Bihar has a tntal land surface of about 17.4 M ha of whichin 1982-83 about 9.4 M ha (542) was cultivated and about 2.1 M ha (12X) wasfallow. The forest land of about 2.8 M ha (162) is less than required tomaintain a healthy ecological balance. Cultivable waste accounts for only0.5 N ha (3X). Common land, permanent pasture, barren lands and miscel-laneous trees cover about 1.0 M ha (62) and the remaining 1.6 N ha (92) areput to other uses. The cropped area has remained stagnant over the pastdecade, and there is little scope for increasing it in the future withoutirrigation. -

2.05 Population. Land H-oldinas and Land Tenure. The populatio! densitieswithin the project districts range from 330 to 950 persons per km andaver&ge about 610/km4 (1981). Population pressures have reduced average sizeof farm holdings from about 1.5 ha in 1970/71 to about 1.0 ha in 1980/81,which is amongst the smallest in the country. Moreover, the distribution ofholding size is highly skewed; the median size of farm is only about 0.6 haand about 752 of the holdings are less than one hectare in size, as sum-marized below:

No. of HoldinUs Total Area AverSaeFarm Size MiJlion X N ha S Holdina Sise

Less than 1.0 ha 8.3 75.4 3.0 26.7 0.41.0 - 2.0 ha 1.2 11.1 1.6 14.9 1.42.0 - 4.0 ha 0.9 8.6 2.6 23.4 2.74.0 - 10.0 ha 0.5 4.3 2.7 24.5 5.710.0 ha and more 0.1 Q, _1.2 10.5 17.1

Total 11.0 100.0 11.1 100.0 1.0

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Water Resources and Utilization

2.06 Surface Water. Three major surface water irrigation systems servethe alluvial plains of Bihar. They divert waters from the Sone, Gandak andKosi rivers, the first being a right-bar-. tributary and the last two beingleft bank tributaries of the Ganges (Map IBRD 19278). The Sone irrigationsystem was constructed about 100 years ago commands about 0.7 M ha. TheGandak and Kosi systems were initiated in the post-independence period andare approaching completion. The Gandak system is designed to serve about 1.2M ha in northwestern Bihar and the Kosi system will irrigate about 0.4 ha innortheastern Bihar. Other surface water schemes in the project districtsinclude small river diversions, pump lifts and irrigation from tanks. Thegross irrigated area (1981/82) under surface water irrigation schemes wasestimated at about 2.4 M ha.

2.07 Groundwater. The Gangetic Plain is underlain by alluvial depositswhich form a single, though heterogenous, aquifer system which can exceed2,500 m in thickness (Map IBRD 19377). Aquifers are formed by beds of sandwhich interfinger with beds of silt, clay and kankar. The aquifer system isrecharged mainly by infiltration of rain falling on the area or collected bylocal run-off into pools and lakes. Another important source of recharge isseepage from canals and on-field losses from surface water irrigation sys-tems. Parts of the plain are subject to flooding by the rivers and infiltra-

tion of flood water forms an important source of recharge in such areas.Discharge is by lateral seepage to natural drains, evaporation from shallowwater tables and extraction by private and public wells.

2.08 The State Groundwater Investigation Organization, part of the BiharMinor Irrigation Department (MID), has estim3ted mean annual net rechargeavailable to the project area at about 27 Bm (about 63% of the Stategroundwater resources). The project area contains all of the publictubewells and most of the private tubewells developed in the State to date.Groundwater balances, summarized in Table T-4, are regarded as conservativeestimates. They indicate that water consumption by both public and privategroandwater development as a proportion of exploitable groundwater resourcesin each district ranges from only 8% to 65%. Thus the project requirementsof groundwater resources at district level would be ensured.

2.09 Most of the water contained by the alluvial aquifer system has lessthan 1,000 parts per million (ppm) dissolved solids. There are considerableareas of better quality water with dissolved solids falling as low as250 ppm. A small pocket of water with high salinity occurs in some parts ofthe Begusarai district, but its locality is well defined and would be avoidedfor project tubewells.

Present Aaricultural Development

2.10 Agro-Climatic Zones. The project area divides into three distinctzones (Map IBRD 19378), reflecting differences in soil type, climate andcropping patterns. Zone I comprise the northwest alluvial plains, north ofGanga River and west of the Kosi River with medium textured soils. The zoneis flat and large areas are liable to flooding in the monsoon period; annualrainfall ranges from 1,000 mm to 1,450 mm. Zone II includes the northeast

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alluvial plain, north of the Gangs River and east of the Kosi River andBegusarai district. Soils are mainly light to medium textured. The topog-raphy includes undulating to rolling areas mixed vith large flat areas, manyof which remain waterlogged for a considerable period of the year; annualrainfall ranges from about 1,200 mm to 2,000 am. Zone III forms the Biharalluvial plain south of the Ganga River on either side of the Sone River witha generally flat landscape with some areas subject to flooding. South of theGanga levee i6 a large low lying area with medium to heavy textured soilsknown as Tal lands. Inside the levee iB the more undulating Ganga floodplain known as Diara lands; soils are generally light to medium textured withannual rainfall ranging from about 1,000 mm to 1,250 mm.

2,11 Crops and CronRing Patterns. The basic feature of the croppingsystem in the project area is predominance of cereals, mainly rice. Onlyabout 29% of the cultivable area are dcuble cropped. Some 26% of the croppedarea is subject to seasonal flooding and only suitable for rabi cropping.In the wet season, rice and maize accounted for about 47% and 8% respectivelyof cropped area in 1982/83. Wheat is the most important rabi cereal, repre-senting about 18% of cropped area, with other cereals (4%) and the pulsecrops (arhar, gram, khesari, masur and peas) 12%. Oilseeds, tobacco andother miscellaneous crops represent 8% of the gross cropped area. Potato(1%) is grown in small quantities in the rabi in all districts. Jute (1%) islocally important as a kharif crop in the high rainfall districts of WestChamparan, Purnea and Katihar. Sugarcane, the only important perennial crop,represents about 1% of the total area cropped. The principal crops andaverage present cropping patterns by agro-climatic zones are given in Table T-5.

2.12 Farming Systems. Farm technology has remained traditional andoperates mostly at subsistence level. Most .nits are smcll family farms anduse family labor with bullocks as the main source of power. Some hired laboris used in the form of permanent, contract sud casual employment for landpreparation and harvesting. In the project area, only about 25% of rice isplanted with improved varieties, while some 75% of wheat is high yieldingvarieties (HYV), and fertilizer application is low.

2.13 Crop Yields. Crop yields are generally low and show considerabledifferences by districts and years reflecting variations in rainfall condi-tions and availability of irrigation supplies (Table T-1). The main crop ofrice grown in the monsoon season averages only about 0.8 tons/ha withirrigated winter rice yielding about 1.4-2.0 tons/ha. Average wheat yieldshave improved from about 1.0 tons/ha in 1970/71 to about 1.4 tons/ha in1982/83 mainly due to increase use of RYV varieties; maize yields haveremained at about 1.2 tons/ha. The low average yields of both rainfei andirrigated crops in Bihar present an important opportunity for increasing cropproduction through reliable irrigation, an effective extension service, andimproved access to other agricultural inputs.

Agriculteral Supporting Services

2.14 Aaricultural Research. Bibar has two Agricultural Universities withheadquarters at Pusa in Samastipur division and at Kanke in Rauchi division.The Rajendra Agricultural University, Pusa, has responsibility for basic andapplied research for the project area. It has six colleges and/or rcsearch

s;EtttE covering all branches of agriculture, including veterinary andEti.a production subjects, and aix research substations. The colleges andrcs,i-.ch institutes are lead stations for research in crops and disciplinesTe a,-urg to their region. The research substations function mainly as,ptilication and testing centers.

C '8 Adaptive research is primarily the responsibility of the Departmeut'- ;9riculture (DOA), and has been supported under the Bank-funded Biharir,riait.tral Exteasion and Research Project (Cr. 761-IN). At present, thevu!A operates Adaptive Research Centers (ARC) in I8 districts and plans toebtablish ARCs in a further 13 districts. Each center consists of- aboutJO-12 ha of land, of which 6.0 ha is assigned to seed production, the balancebeing used for rainfed and irrigated cropping trials. Research is coot-JinaL4ed by an adaptive research committee with euphasis on pre-release varie-Lal Lteti2ng and fertilizer trials. Other activities include verification ofuniversity trial results and observatorial trials on farmer plots. To date,the results and efforts on the ARC's have been severely constrained by budgetlimitations and management problems. No work has been done on croppingpatterns to optimize water use and on farm water management, though this isiaow planned under the recently approved Second National Agricultural ResearchProject (Cr. 1631-IN, 1985, US$72 M).

2.lb !'gricultural Extension. Until the late 1970's, Bihar followed aLa,iitional extension service which was ineffective and reached few farmers.It suffered from a shortage of trained manpower, vehicles, equipment andoffice facilities. Furthermore, staff efforts in agriculture were hampered'by the considerable time spent on other non-extension activities includingregulatory and statistical work, small saving schemes, coordination of inputsupply, recovery of short-term credit, and family planning. These tasks left'little time for agricultural advisory work. The situation was compounded byan absence of training and technical support and resulted in the extensionservice lhaving little impact on productivity, particularly of small farmers.

2.li To overcome these'difficulties, GOB decided in 1977 to take measuresLo imiptove agricultural production in the State and initiated, with BankGroup sulpport, the Bihar Agricultural Extension and Research Project(Cr. 761-IN). The agricultural extension component called for reorganizationand strengthening of the agricultural extension service, including provisionof additional staff, housing, equipment, vehicles and staff training. Themain core of the project has been to improve agricultural extension servicesto farmers by the establishment of the Training and Visit (T&V) systemincluding a single line of command for extension within the Department ofAgriculture. The system is administered centrally by an additional Directorof Agriculture. At present, the T&V system has been introduced in 16 dis-tricts of the State with a further 6 districts scheduled to have the systemintroduced in the near future. When these additional districts are opera-tional, only 4 districts within the project area would not be covered. Fulloperation of the system in the initial 16 districts has not yet been achievedbecause of inadequate budget provisions, legal disputes, and staff vacancies.Nevertheless, the GOB is committed to the T&V extension philosophy andresults in areas where regular extension visits are being made, attest to theeffectiveness of the improved extension service. Monitoring and evaluationsurveys indicate that where staff are in position and provided with

facilities, the T4V extension system is instigating increased production.Irrigated wheat yields of contact farmers in 1984185 averaged about2.4 ton/ba compared to 1.4 ton/ha for non-contact farmers.

2.18 While Credit 761-IN closed in March 31, 1985, it is anticipated thatBihar will continue to expand and improve its extension services and GOB hasexpressed interest in further support under the Third National AgriculturalExtension Project. In this respect, agreements have been reached with GOBthat it would:- (i) provide appropriate staffing, facilitiesa services andthe other resources required to carry out effective agricultural extensionsatisfactory to IDA throughout the districts of the project area; and(ii) ensure that such extension service would be fully operational andstaffed in a district before project works on new, modernized orrehabilitated tubewells within such district are energized.

2.19 Aoricultural Inputs. There is a Government sponsored system fordistribution and sale of fertilizer, pesticides and seeds throughout theState with sufficient capacity to meet expected project demands. Thecooperatives provide an important support to that system, although fer-tilizers are mainly marketed through private sector channels. Input applica-tion has been rising since the early 1970s and is strongly correlated withbetween expansion of irrigation in the State. Use of fertilizers has risenfrom about 9 kg/ha in 1970/71 to 17.8 kg/ha in 1980/81. However, this levelis still low compared to the all-India average of 32 kg/ha in 1980/81. Lowuse of fertilizers is mainly due to the risk involved in cereal production inareas susceptible to drought or flood, and predominance of rice as amono-crop. Improved seed application is increasing; 252 of the rice area wasplanted with 1YV in 1980/81 compared to only 15% in 1975/76. Almost allwheat and about 50% of maize were planted with HYV in 1980/81. Tractors arerarely used for farm activities and animals remain the source of tractionpower.

2.20 Agricultural Credit. Farmers have access to credit from a variety ofsources. In 1982/83, Government supported credit institutions, includingPrimary Agricultural Credit Societies, provided about Rs 290 M in credit ofwhich 92Z was short-term while Land Development Banks provided some Rs 200 M,mainly for medium-term loans. Commercial banks lent farmers about Rs 210 Nof which about Rs 150 M was medium term credit. In addition, farmers obtaincredit from informal sources, such as traders and suppliers. There isevidence that informal credit is increasing primarily because institutionalcredit sources are closed to many farmers with overdue loans. In 1982/83,overdue loans were 75% of credit demand in Government credit institutionsand about 60X in commercial banks in Bihar. Interest rates for agriculturalcredit from commercial banks average about 12-13%, and from co-operativebanks about 11-12%.

2.21 Narketina. Processins and Storage. A large portion of foodgrainproduction is consumed by the farm household; the rest reaches the marketthrough a variety of channels. Government procurement agencies purchaselarge quantities of food grains in primary wholesale markets and sell iteither to millers or through fair price shops in towns and cities at fixedprices. In addition, farmers sell their produce: (i) direct to consumers;(ii) to village shopkeepers who either sell to consumers or act as middlemen

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to wholesalers; and (iii) to commission agents. Grain marketing costs equateto about 201 to 35X of retail price depending on locatiou and the marketingchannel used. Vegetables, potatoes and fruits are produced in small quan-tities and sold in local markets by farmers or middlemen. In general, thereare no serious constraints to the present system but GOB plans to providemore marketing outlets to enable farmers to attract better farm gate prices.Sugarcane is processed in relative small quantities in a limited number ofprivately owned sugar mills. A small portion of oilseeds is marketed forprocessing by the few oil extraction mills within Bihar. Bihar WarehousingCorporation (a Government agency) provides storage facilities to farmers andarranges advancement of loans from commercial banks on the basis of itsreceipts. Bowever. bulk storage for foodgrains is inadequate and manyfarmers store grains on farm, using unsuitable facilities, resulting in aproduction loss. Recently, some progressive farmers have started to use lowcost metal bins for on-farm storage to reduce losses.

III. PERFORNANCE OF PUBLIC TUBEWELLS

General

3.01 Construction of public tubewells (PTWs) for irrigation was initiatedon a small scale in 1937 in the northern half of the State. The program waspursued more vigorously after the famine of 1943 with a marked accelerationin the 1950's. Responsibility for construction and operation and maintenance(OM) of PTWs was held first by the Irrigation Department (ID) and later bythe State Tubewell Organization under the Minor Irrigation Department (MID).By 1974, there were about 3,110 PTWs in service, distributed throughout the26 districts of Bihar which constitute the project area. In 1974, the BiharWater Development Corporation (BWDC) was created as a quasi-autonomousGovernment entity, with profession4l staff seconded from the ID. The BWDCassumed responsibility for public groundwater development, and took over asassets all existing PTWs, which it then operated and maintained. It alsotook over the well drilling and testing equipment and vehicles from the StateTubevell Organization and continued to construct new tubewell systems, andsubsequently operate and maintain them. By 1983, the BWDC owned 5,311 PTWsof which about 1,690 wells lacked a formal irrigation distribution systemand 1,140 had not been provided witb electric power. So new systems havebeen constructed since 1983.

Bihar Water Develogment Corporation

3.02 The BWDC was created under the auspices of the Bank assisted BiharAgricultural Credit Project (Cr. 440-IN, 1973, US$32) in order to mobilizeinstitutional credit to finance construction of new tubewell facilities.While the corporation was expected to be financially viable, with revenuecoming mainly from vater charges, it was never allowed to levy a water chargecommensurate with O&M) expenditures and funds required for debt servicing.Moreover, GOB did not make adequate budget provision to BWDC to cover theresulting shortfall in the corporation's finances. Thus the corporation'sfinancial situation was weak from the outset and has steadily deterioratedover the years as debts accumulated. By May 1985, the level of indebtedness,mainly to the banks and BSEB, had risen to about Rs 500 M (about US$40 1).

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3.03 Due to increasing burden of debt and inadequate support by Government, annual o&M allocations have barely covered establishment costs, andmaintenance has suffered. As a result, many facilities are now inoperable o-can function with only limited efficiency for want of relatively low costrepairs. Furthermore, many PTWs built by BWDC have been left incomplete o,rwithout power connection though bank loans raised for their con-structionstill have to be serviced. An additional consequence has been that waterrate recovery has become increasingly poor with farmers' reluctance to pey,in part, due to poor irrigation service of existing PTWs (para 8.09).

3.04 To improve the situation, the GOB has decided to re-establish aneffective line organization within the MID with proper staffing and bvdget,which will take over responsibility for public groundwater development fromBWDC and operate and maintain existing public tubevell facilities. The GO-has taken this decision because: (i) it believes that public sector tubewelYdevelopment should be a direct government financial responsibility; (ii) iwill enable the sector to be .a direct part of the state planning strategy;(iii) it will provide the opportunity to review staffing requirements apdtransfer to the new line department only those staff needed for an efficientoperation; and (iv) creation of a new organization environment will improvethe morale of staff to be transferred from the BWDC.

3.05 In the early years of public groundwater development in Bihar, poweusupply was generally adequate for tubewell operations since the over-extendedrural power lines and heavy load (mainly related to piLivate tubewell connec-tions) had not yet developed. Thus utilization of public tubewell systems,expressed as annual operating hours, was fairly high. However, other fac-tors, such as unreliable delivery (particularly to cultivators at the tailend of the system), delays in effecting repairs to pump units during theirrigation season, and excessive losses in the conveyance system, all con-tributed to the farmers' lack of confidence in the water supply from publiketubewells. The poor irrigation service caused farmers to minimize their ilccof inputs whose productivity is linked to a reliable and timely waterdelivery; the results have been poor yields and low incomes. Consequently.the area irrigated by PTWs has declined from 62% of the design command in1974/75 to about 7.5% in 1984/85 and, at present, about 60X of existingtubewells in the State are reported as inoperable (Table T-6).

3.06 Technical Shortcomines. Development of power generating facilitiesin Bihar has stagnated for the last decade (para 1.14). For the past sever,-Jyears, it has been necessary to roster power supplies during the irrigationseasons with unrestricted power available at 33 kV substations for only abo.5-8 h/day. The situation on the 11 kV local grid has been even worse wit1hpower availability at tubewell connections often limited to a few hours -ua tday. This level of power supply was completely inadequate for effectiveoperation of PTWs which require regular supplies of up to 16 h/day at pee'Idemand periods to effectively serve all farmers within the design commaadareas.

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3.07 Almost all existing PTWs require some repairs and many are inoperablefor want of spares or replacements. The major items necessary to make theexisting facilities fully operational are summarized on Chart C-1. Essen-tially all starter relays originally fitted to pump units require replace-ment. Most of the simple, direct oQi-line,.oil immersion switches are in avery poor state of repair and operate as air switches, Much of the troublewith burnt-out transformers may be attributed to itiadequate sl a gear, andreplacement Star-Delta celays would be provided under the project.

3.08 Given the recent history of maintenance of the PTWs, it is not pos-sible-to properly evaluate their performance as systems exclusive of manage-ment failures. Any future improvemeuts must provide an effective organiza-tiou for overseeing the PTW operation with proper staffing.-and adequatebudget provisions (para 6.03 on). The power supply constraints stem mainlyfrom inadequacies of the existing rural grid and can be overcome by provisionof dedicated pover lines. The distribution system must be improved so thatall farmers within a PTW command receive a reliable, timely and equitablesupply. Effective water users associations must be formed and depeadency ouwell operators minimized. Such improvements would be supported under theproject.

IV. THE PROJECT

A. Project Formulation and Objectives

General

4.01 Project preparation has been carried out by the MID and BSEB in closeco-ordination witk the Central Water Commission (CWC) and Ministry of WaterResources in GOI. In 1984, GOI and GOB requested Bank Group assistance withdevelopment of public tubewells in Bihar. GOB engineers visited UttarPradesh in 1984 and concluded that any new PTis in Bihar should incorporateimproved technology similar to that introduced under the Bank-assisted UttarPradesh Public Tubevell Projects (Cr. 1004-IN, 1979 and Cr. 1332-IN, 1983).On the recommendations of a Bank Identification Mission (February 1985), theGOB' decided to extend the proposed project scope to include rehabilitatiouand/or modernization of existing PTWs. The GOB also decided to replace theBWDC by a new line organization within the MID, with responsibility forconstruction and operation and maintenance of all PTWs (para 3.04). Aproject preparation report has been compiled for MID by Agricultural FinanceCorporation Ltd., India.

Project Concent and Obgctives

4.02 Hydrogeological conditions would restrict public tubevell developmentto areas of productive alluvial aquifers which occur in the northern half ofthe State. Since command areas of new PTWa would be small, locations can bechosen to include a high proportion of farmers with small and fragmented laudholdings on which it would be unprofitable to construct private tubevells.Thus, the project would complement groundwater development in the privatesector and be selective in the target group of beneficiaries to be reached.

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4,03 The main project objectives would be: (i) to introduce to Biharimproved technology which restricts the effectiveness of existing PTWs; (ii)to undertake a phased program to rehabilitate and modernize the existingPIWs; (iii) institution strengthening to ensure that project works can beefficieutly implemented, operated and maintained such that predicted benefitscan be obtained; and (iv) increase agricultural production employment andincomes (especially small farmers' income).

Rationale of Bank Groug Involvement

4.04 The GOB has been aware of the deficiencies of PTWs and has givenpriority to resolving the problems. It has recognized that in thesocio-economic context of Bihar, and in areas with good land and groundwater.resources, public tubewell development cau be the most effective way toenhance the development prospects of farmers who own or operate small, frag-mented holdings. To help overcome present shortcomings, the GOB hasrequested Bank Group assistance in the project in: (i) introduction ofimproved public tubewell system technologies to ensure that irrigation serv-ice is timely, reliable and predictable and thus manageable; (ii) provisionof dedicated power lines to the public sector tubewells to help alleviatepower system constraints; and (iii) institution building and managementimprovements for construction and O&M of new and existing works.

4.05 The improved technologies to be introduced (para 4.01) include newplanning, design and operation criteria which represent a break with pasttraditions and would be difficult for GOB to introduce successfully withoutBank support. With respect to institution building and strengthening ofmanagement, a range of improvements have been formulated during the prepara-tion process including major organizational changes. Such improvements arean essential part of the comprehensive development package, and Bank supportshould help sustain and reinforce the will and ability within the agenciesthemselves to implement the reforms.

B. Proieot Description

Summary

4.06 The proposed project would finance a seven-year program incorporatingthe following elements of the GOB public groundwater development sector:

(a) New Tubewell Systems. Cons sruction of about 500 improved tubewellsystems each of about 150 m |h and net command area of 100 ha.

(b) Modernization and Rehabilitation of ExistinA Tubewell Systems.Repair or rehabilitation of about 4,700 existing tubewells includingconstruction of new distribution systems on about 1,000 of the exist-ing tubevell systems and rehabilitation of existing distributionsystems on a further 1,300 of the existing tubewells.

(c) Dedicated _oyer Lines. Connection to separate 11 kV feeder lines ofabout 4,700 existing tubewells and 500 new tubewells.

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(d) Management Imnrovements. Provisi3n of equipment, transportation,and buildings to be used by the project construction, operation andmaintenance staff; preparation of design and O&M manuals; techbicalservices; studies related to project management, cost recovery andan agro-economic baseline survey for selected project tubevells;training of project staff; and monitoring and evaluation activities.

Completion of the program to rehabilitate or modernize the remaining 599existing public tubewells outside the project ia expected to take until aboutthe year 1995 (para 4.22).

lmproved Design Standards for New Systems

4.07 The concept and design of an Imoaoved Standard Tubewell System (IST)follow technical principles developed and demonstrated under the UttarPradesh Public Tubewells Projects (Cr. 1004-IN, 1979; 1332-IN, 1983). ^

typical IST system would consist of a water point with pump house; a dis-tribution chamber to enable water delivery to be automated and controlled byfarmers at field outlet valves; a buried pipe distribution system in the formof two closed loops each serving about 50 ha; outlet valves on the pipesystem each commanding about 4-5 ha and operated by farmers; earthen fieldchannels below the outlets to serve each farmers' holding; and an access roadto the well for operation and mainteuance purposes. The various parts of anIST are described below with detailed planning and design principles given inAnnex 7, of the Supplementary Data Volume (SDV). The estimated base costs(April 1986 prices) of new improved tubevell systems under the project aregiven in Annex 3, Table 1; the cost of a typical IST is estimated at about Re410,170 or about Rs 3,690 and Rs 4,100 per farmer and hectare served respec-tively.

4.08 The Water Point. The water point would consist of the well, pump,prime mover (motor), switch gear, starter and protection relays and electri-cal pover supply. The unit would be placed in a brick-built pumphouse.

4.09 Wells (Chart C-2). The wells would be drilled using either directrotary or reverse circulation drilling rigs. Drilling diameters would be450-600 mm and total depth of wells would be in the range of 80 to 130 m.Well casing and screen would be of mild steel. The pump chamber casing wouldbe 300 to 350 mm outer diameter (OD). The average length of the pump chamberwould be 25 to 30 m. The production screen would be of 200 m OD and wouldconsist of slotted pipe covering aquifer material layers and blank pipecovering non-productive layers. Average length of screen would be about40 m. The well would be gravel packed.

4.10 The wells would be initially developed using a compressor and finallydeveloped with a diesel driven pumping unit consisting of a vertical shaftturbine with a capacity at least 501 higher than design discharge. The wellswould be test-pumped for 24 hours, the first half of the period being in theform of a step-drowdown test; the final discharge rate would then be main-tained for the balance of the test-pumping period.

4.11 Bumping Uhits. The pumps would be electric submersible type with astarter relay of Star Delta type. All pumps would have foot valves. The

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switch gears starter relays and auciliary electrical equipment would have thefollowing special characteristics. The electric motor can be sta.ted andstopped automatically (para 4.13). The electri'cal system would be-providedwith a capacitor to protect the motor against voltage fluctuations and asingle phase preventer in the starter relay to protect the motor. Electronichour meters would be fitted on all pumping units to facilitate monitoring ofthe operation of the pumps.

4.12 Pumnhouse. The pumphouse would be a brick-built structure fittedwith a girder support for chain pulleys to facilitate removal of the pumpunit for maintenance. The pumphouse would be provided with a lockable steeldoor for security and electrical equipment within a pump house would be builtinto the walls of the structure to minimize theft and unauthorized repair.

4.13 Diseribution Chamber. An essential feature of the system is theelevated distribution chamber which maintains the operating head in the pipeddistribution system. It also enables automatic operation of the pumpingunit. The latter is achieved by means of level operated probes whichactivate power supplv according to the water level in the chamber and inresponse to irrigation demand. The water level operated probes also enablewater distribution at less than the discharge rate of the pump without spil-lage.3 The design of the distribution chamber ensures equal division of the150 m /h water supply from the well into two separate parts of the distribu-tion system.

4.14 Buried Pine Distribution ysstem. A typical layout of a tubewelldistribution system is given in Chart C-3. The buried conveyance systemwould consist of PVC feeder pipes from the distribution chamber to connectwith closed loops of PVC pipe which constitute the main distribution system.The loop design ensures that any outlet on a loop can be simultaneouslysupplied from two directions which reduces flow velocities and head losses inthe pipelines. Each loop would serve about 50 ha and the average lengths ofburied PVC pipes on a typical system would be about 42 m/ha.

4.15 PVC pipes would be of 200 mm OD for feeders an-1 160 mm OD for the PVCpipes of the loops. Both PVC pipes would be 2.5 kg/cm pressure rating. Thedepth of cover of the pipe loop would be not less than 0.8.meter. The actuallayout of any distribution system would depend on topography, command areashape and cadastral factors. Base costs for buried pipe distribution systemsare given in Annex 3, Table 1 and average about Rs 209,020 per tubewell.

4.16 Distribution Syvtem Outlets. Alfalfa type valves would be providedas outlets along the buried distribution pipes to command areas of about4-5 ha. Thus, each loop of the system would have about 10 outlets with eachcatlet typically serving 4-7 farmers. The alfalfa valve would be designed todelivered 75 m4lh under the prevailing head at any point in the distributionloop; only one outlet on each loop would be operated at any time. The valvewould be set in a distribution box constructed of brickwork and designed suchthat water can be delivered in several directions as required. A single200 mm surge riser would be provided on each loop at the point farthest fromthe distribution chamber. The top elevation of the riser would be about 0.5m above the top water level of the chamber.

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4.17 Field Channels. The distance between a field in a tubewell commandarea ,tgd an outlet valve would generally not be greater than about 150 m.Comnon field channels would be aligned along property boundaries so thatwater can be delivered from the outlet distribution boxes to the individualfarmers - plots. Total length of earth field channels for a typical tubewellcoommand area would be about 6.5 km.

4.18 Access L acds. A low cost, unsurfaced track suitable for four-wheeldrive vehicles would be constructed from the nearest public road to pxovideacpess to the tubewell pump house.

Modernization of Existinz SYstems

4.19 About 1,690 existing public tubewell systems have not been providedwith a distribution system either in lined channel or pipes, and about 160exi8ting systems are in such poor repair that rehabilitation of the linedchannels would entail almost complete replacement (Chart C-1). About 1,O0Qof these systems would be completely modernized to the improved design stand-ards described under paras. 4.07 through 4.18. This would entail provisionof an elevated distribution chamber, a buried pipe distribution systemincluiding outlets and earthen field channels; estimated costs are summarizedIi- Annex 3, Table 2. In addition, all necessary repair or replacement workswould be done to the wells, pump units and pump houses to ensure that eachwater point was reliable; a dedicated power line would also be provided (para4.21). After completion of these works, the modernized systems would beessentially equivalent to the improved tubeweli systems to be constructedunder the project (para 4.07) and would have the same performance charac-teristics. The base costs of a typical modernized weli would average aboutRs 260,000 or about Rs 2,340 and Rs 2,600 per farmer and hectare servedrespectively.

Reha bilitation of Existing Systems

4.20 Many existing public tubewell systems have defects resulting from ageand lack of maintenance which either make them inoperable or prevent theiroperation at original design standards. The project would undertakerehabilitation on about 3,710 existing tubewell systems in addition to the1,000 tubewells systems to be modernized (para 4.19), and, after completionof repairs, the systems would be capable of operation to at least theiroriginal design standards. In many cases, these defects can be rectified atrelatively low cost. Rehabilitation for each tubewell system would includereplacement or repairs to one or more of the following elements: (i) pumpunit parts; (ii) pumphouses; (iii) lined chann.'l distribution systems;(iv) valved outlets to existing piped distribution systems; and/or(v) unlined field channels. In addition, wells which have a deterioratedyield or which are pumping sand would be replaced. Almost all of the exist-iag tubewell systems require replacement and/or repair of parts of the wellpoint, and about 1,310 will also include repairs to the distribution system.The scope of the replacement and repair works together with estimated costsare summarized in Annex 3, Table 3. On average, the cost of rehabilitationand repairs works is estimated at about Re 31,000 per existing tubewellsystem with the distribution system untouched, and about Ra 62,000 per exist-ing tubewell system which require repairs to open channel systems.

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4.21 The rural power distribution system in Bihar at 11 kV and low tensionvoltage levels has been over-extended aud over-loaded mainly because of theintensive and unregulated private groundwater development. The result hasbeen unscheduled outages, low voltages and generally insecure power supply onthe rural grid. The need for power rationing at critical periods in theagricultural year has had a limited negative impact on private wells (exceptto control the time of day when they can be pumped) as most private Bumpingunits have a very high capacity compared to the area served (30-50 m-/hserving only 2-4 ha). The reverse is the case for public tubewells whichrequire a secure power supply of at least 16 h/day at peak demaud periods ifplanned irrigation intensity and production goals are to be achieved.Eowever, iv contrast to private tubewells, public tubewells have a predictedpower load factor which could be managed for optimization of the poweravailability if they could be operated independently of other consumers. Toachieve this objective, the GOB has decided to provide dedicated power lineswhich would serve only public sector tubewell systems.

4.22 All new, rehabilitated and modernized tubewell systems under theproject would be provided with a power supply through separate or 'dedicated'11 kV feeder lines which would connect wells in a cluster directly to thenearest 33/11 kV sub-station. The remaining 599 (or 102) existing tubewellsin the State outside the project cannot be connected to dedicated Lines atreasonable cost since these wells are widely scattered (Chart C-1). A typi-cal cluster, consisting of about 25 to 30 public tubewells, would be mainlydefined by the location of existing wells; new tubewell systems would befitted into the existing pattern subject to sitiDg criteria defined underpara 4.32. The dedicated feeder network to each cluster would consist of11 kV lines set out to give a least cost layout with spur lines connectingeach well. The power lines would be designed so that voltage regulation atany supply point is within 6S of the declared low tension voltage level. The11 kV lines would be mounted on reinforced concrete posts with provision forspecial crossings at main roads and railways. All wells would have an11/0.4 kV transformer of appropriate capacity. Independent switch gear wouldbe provided for each dedicated feeder line at the 33/11 kV sub-station and aprovision ass been made under the project to increase sub-station capacity orprovide new stations where significant additional load is due to demand ofproject wells.

4.23 Some dedicated feeders will be aligned through areas, or close tovillages, which are not provided vith an electrical supply. In such cases,poles for dedicated feeder lines would be strengthened and cross barsprovided to take an additional conductor to serve the other consumers. Theadditional cost (excluding extra conductors) of these works are includedunder the project, since provision of power supply to these other users wouldreduce the risk of project feeder lines being used for other purposes. Unitcosts for power transmission and transformation are given in Annex 3,Table 4. On average, the base cost of providing dedicated power supply isestimated at about Rs 55,400 for each tubevell system.

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4.24 Agreements have been reached with GOB that it would: (i) providededicated 11 kV feeder lines to each public tubevell within a cluster to givea power supply from a conductor which would be exclusively used for publictubewells; (.i) provide project tubewells with a minimwm of 16 hours of powersupply per day at peak demand periods with a voltage fluctuation of notgreater than 16Z; and (iii) energize each new, modernized or rehabilitatedproject tubewell unit within two months of its completion.

-Manaement Improvements

4.25 The project would support managemeat improvements at the newly estab-lished Tubewell Wing (TW) of MID (para 6.01). In this respect, the projectwould provide for services and facilities for the TW.including: constructionof residential and non-resideutial buildings; transportation and equipment;training including visits and study tours; research and development; prepara-tion of design and OEM manuals; and technical assistance. The estimated basecosts of the management improvement compouent are estimated at aboutRs 81.2 M, or equivalent to about Re 15,580 per tubewell system; details aregiven in Annex 3, Table 5.

4.26 Buildings. The project would construct buildings needed for TW.administrative and field staff. A headquarters office would be constructedin Patna on GOB owned land. A staff training center for MID staff, includinglecture halls, staff housing and a student hostel, would be constructed onthe campus of the WAIMI which is being set up at Khagaul under the Bankassisted Subernarekha Irrigation Project (Cr. 1289-IN, 1983). Rousing wouldbe constructed for key TW staff, primarily in locations where rentals arelimited or where availability of accommodation would provide an incentive tofill essential but unattractive posts.

4.27 To improve the O&M capability of the TW, two regional centers wouldbe set up to support maintenance requirements during construction and for O&Mof all public tubewells in the State. Each center would include workshopsand stores appropriate to the work programs related to public tubevelldevelopment in the northern and southern regions of Bihar. To support theregional centers, workshops would be constructed at most O&M divisionalheadquarters so that each division has adequate facilities to undertakeroutine repair and maintenance of tubevell systems together with equipmentand vehicles used by the field staff. While three divisional workshops areavailable at present, an additional 18 would be provided under the project.At tubewell cluster level, a Junior Engineer (JE) would oversee OEM of thefacilities (para 6.15). His headquarters within the cluster would consist ofaccommodation for MID staff, a small storage facility and a meeting room forcontacts between farmers and staff of other GOB agencies including extensionservices. About 85 such complexes would be completed under the project.

4.28 Vehicles and EauiRment. The project would finance vehicles for fieldstaff responsible for construction and O&M of project works together withspares for vehicles and equipment already held by the MID for tubewell opera-tions. The project wo!tld also finance drilling and well equipment, andworkshop equipment for regional and divisional workshops. In addition,vehicles and equipment would be provided for specialized units established,or expanded under the project, within the TW (para 6.03); this would include

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vehicles for headquarter and regional management staff together with survey,training and oflice equipment.

4.29 Training. The project initiates constructien of IST systems whichinvolve planning, design and implementation concepts which are novel to mostMID staff.. Consequently, the TW would have to undertake substantial trainingif staff are to achieve project implementation on schedule aud undertakesubsequent O&M (para 6.17). In addition to the staff training center (para4.26) and training equipment, the project would provide for visiting 1oca]specialists to assist the MID staff in giving various training programs anidfor visits and study tours to enable project staff to widen their profes-sional experience.

4.30 Technical Services. The project would provide for technical serv-ices, which could be foreign or local consultants as decided by Government,to assist the TW in preparation of the design and O&M manuals (para 6.18).In addition, local technical services would be used for specific studies tobe undertaken under the project which would include: (i) a management studyto assist in developing an efficient and effective management structure forthe newly created Tubewell Wing (para 6.11); (ii) a cost recovery study (pats,8.16); and (iii) a baseline study of existing facilities and new lands to beserved by project tubewells (para 6.22).

C. Planuinj and Implementation

4.31 A large part of the work program consists of rehabilitation andmodernization of existing tubewells, where locations of the wells are alreadyfixed. The existing well sites and locations of 33/11 kV substations essen-tially define the least cost alignments of dedicated power lines. Once thealignment of a dedicated power line is decided to serve a group of existiugtubewells, approximate locations for new tubewells become fixed since thesewells have to be incorporated within the clusters. Nonetheless, there wouldstill be sufficient flexibility in the siting of new tubewells for strictcriteria to be followed so that physical, technical, socio-economic andmanagement objectives can be achieved. In particular, site selection of eachtubewell would ensure that potential beneficiaries understand and areprepared to accept the responsibilities expected from them. Once a newtubewell site has been provisionally identified, investigations would be madeto confirm the technical viability of the site. The groundwater availabilitywould be confirmed, soils would be tested for suitable quality and the com-mand area checked to ensure that it would not be flood prone.

Sitin mCriteria

4.32 For new tubewell systems, weil sites would be located where suffi-cieut cultivable laud is available for a command area of about 100 ha; thetubewell system can be incorporated into a cluster; and there would be noother public source of irrigation. In addition, new tubewell command areaswould satisfy the following requirements:

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(a) construction of private tubevells would be difficult because of thedrilling depth necessary to achieve a satisfactory yield; and/or thearea is economically backward and further private well constructiouis unlikely to develop;

(b) within the gross command area of a proposed new tubewell, not morethan 10% of the area would consist of holdings of owners of privateirrigation sources (excluding hand pumps or hand operated open wells)and average holding size would not exceed 1.0 ha; and

(c) the district is adequately served by the T&V extension service.

Once the location of a new tubewell has been selected* the well command areawould-be defined and the layout finalized to enclave out farmers who ow, -andwish to retain, electric powered private wells. The above criteria can beeasily enforced since, with a buried pipe distribution system, command areaboundaries and/or water point locations of new tubewell systems can beadjusted to ensure that the criteria and a selected group of beneficiariesare reached.

Survey and Design

4.33 The preliminary works for design and construction of a new tubewellsystem or modernization of an existing system would include preparation of acommand area map with 30 cm contour intervals which would be superimposed onthe 1:4,000 scale village cadastral maps. An appropriate reconnaissancesoil survey of the proposed command area for new tubewell sites would beundertaken to establish the irrigability class. The detailed layout anddesign for each tubevell distribution system would then be prepared on thebasis of the completed soil and contour surveys.

Irrigat ion Water Requirements

4.34 The weighted mean water alloc*tion at the well head has been taken as3,600 m3/ha, 3,500 m3/ha, and 6,000 m /sa for the kharif, rabi and hotseasons respectively. The rabi water allocation reflects that, with waterrather than land as a limiting factor, the comnen cultural practice in Biharis to under-irrigate rabi crops. The cropping patterns for the various mainsoil types have been designed accordingly (Table T-5). The requirements alsotake into account an average well head to plant efficiency of 65%, andassumes that farmers would use irrigation to maximize crop production. Witha well discharge of about 150 mJ/h, the assumed cropping intensities andwater requirements would equate to a tubewell operating for about 16 h/dayduring peak irrigation period in average rainfall years. Use of buried pipesfor tubevell distribution systems would enable the command area to beadjusted or modified should either irrigation utilization in the originalcommand area be less than the reliable capacity of the well point, or, atsome future date, there is a change in cropping patterns.

4.35 The rehabilitated tubewell systems with brick-lined open channels-would also have a well discharge of about 150 m3 /h and serve a command areaof about 100 ha. For systems with 2,400 m of lined channel, outlets wouldserved 4-5 ha, while with 1,200 m of lined channel, outlet commands would be

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proportionately larger. Since conveyance losses in the lined and earthc%hannels would be higher than for PVC pipe distributiou systems,rehabilitated tubewelle will have a somewhat lover irrigation intensity thanthat assumed for new or modernized wells.

Protect Imnlementation

4.36 The project implementation schedule is given on Chart C-4. Theseven-year implementation period (from about September 1986 to September1993) has been based on past experience with similar projects as reflected inthe standard Bank profile of disbursement for irrigation projects in India.Eowever, it is possible that, if greater budget provisions can be made, theproject is implemented more efficiently, and there are no significant startup delays, the project could be completed in about five years, and benefitsaccelerated.

4.37 The main construction season is from October through May, althoughcertain activities such as drilling, repair of existing systems and fieldchannel construction can continue through the monsoon season at selectedsites. Construction work would be organized by tubewell clusters with thework program distributed throughout the project area and according to aschedule agreed between MID and the BSEB. All components of IST systems haveestablished construction techniques which are cost effective and suited tolocal conditions; rehabilitation works follow well established practises knowto TW staff, and minor repairs to existing tubewell systems would undertakenthrough force account. Many of the works are suited for small contracts andsufficient local contractors are available throughout the State to ensuresatisfactory progress and good quality work.

4.38 Status of PreDaration. Sites have been identified for all tubewellclusters under the project (para 4.31). Works, materials and equipmentrequired to modernize/rehabilitate existing systems have already been iden-tified for each existing tubewell system under the project. The location,layout designs and detailed work program have been decided for clusters to becompleted during the first year of the project. Standard designs have beenprepared for all works required to rehabilitate existing tubewells and toconstruct modernized and new tubewell systems. The standard designs needonly minor detailing to be applied to individual tubewell sites after comple-tion of the necessary surveys. Repair works on existing tubewells systemswould follow established work procedures and the TWVhas already prepared adetailed inventory of repair works required on all tubewells under theproject. The BSEB has prepared detailed layouts and cost estimates for thefeeder lines to supply tubewell clusters to be constructed in the first yearof implementation. An agreement has been reached with GOB that it wouldlocate, plan, design and construct the project works, in accordance withstandards and criteria satisfactory to IDA.

4.39 Mid-term Review. Experience with implementation of irrigationprojects has shown the need to conduct a mid-term review. The main purposeof such a review would be to evaluate progress and constraints during thefirst period of project implementation and the need to introduce changes inproject implementation plans to ensure achievement of project objectives.Agreements have been reached with GOB that it would, by December 31, 1989,

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prepare and furnish to IDA for its review and comments, draft terms ofreference for a mid-term review of the project and, taking into account IDA'scomments, if any, carry out the review and furnish a report summarizing theresults to IDA by June 30, 1990; and thereafter, carry out the requiredadjustments to the project subject to prior agreement witb IDA.

V. PROJECT COST AND FINANCING

Cost Estimates

5.01 Total project coat is estimated to be US$99.7 M equivalent includingtaxes and duties of USS3.0 M. Cost estimates are given in Table T-7,detailed in Annex 3, and suimmarized below:

Local Currency -(Rs M) US$ (Millioan Z Foreign 2 ofA. Workg Local Foreinna Total L oca Foreign Total Exchanae Base Cost

1. New Tubewell Systems 166.86 38.23 205.09 12.84 2.94 15.78 19 222. Modernization of Existing

Tubevells 151.54 77.19 228.73 11.66 5.94 17.60 34 243. Rehabilitation of Existing

Tubewells 139.37 0.47 139.84 10.72 0.04 10.76 0 154. Dedicated Power lines 279.06 9.46 288.52 21.47 0.73 22.20 3 31

3. Management Improvements

1. Buildings 51.63 - 51.63 3.97 - 3.97 0 02. Vehicles and Equipment 24.08 - 24.08 1.85 - 1.85 0 03. Training; Visits and Study Tours;

Monitoring and Evaluation; and -Technical Services 5.50 - 5.50 0.42 - 0.42 0 0

Baseline Costs 818.04 125.35 943.39 62.93 9.65 72.58 13 100

Physical Contingencies 53.18 12.11 65.29 4.09 0.93 5.02 19 7Price Contingencies 240.59 .46.94 287.53 18.50 3.61 22.11 _ 16 30

Total Project Cost 1,111.81 184.40 1,296.21 85.52 14.19 99.71 14 137

The foreign exchange cost would be US$14.2 M, or about 14X of the totalproject cost. Cost estimates are based on price levels prevailing in Septem-ber 1985 and have been updated to April 1986 prices. Physical contingencieson civil works, which average about 7% of base cost, reflect the uncertain-ties associated with each type of construction activity on new and existingtubewells. Price contingencies, which account for about 30X of base cost,reflect expected annual local inflation rates of 7.0% in 1986/87 and 1987/88,7.5X in 1988/89, 7.72 in 1989/90 and 7.6X in 1990/91 and 4.52 in 1991192 andafter, and expected international inflation rates of 7.0% in 1987/88, 7.5% in1988/89, 7.72 in 1989/90, and 7.6% in 1990/91 and 4.52 in 1991/92 and after.

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Finauc in4

5.02 The proposed credit of US$68.0 M would finance about.70X of the totalproject costa exclusive of taxes and duties, including all foreign exchangecosts and about 66Z of local costs. The balance would be contributed byGOB/GOI. The estimated schedule of expenditures for execution of the projectis given in Table T-8. An agreement has been reached with GOI that it wouldmake the proceeds of the credit available to GOB on GOI's standard terms andarrangements for development assistance to the States. An agreement has alsobeen reached with GOB that it would promptly provide resources and funds to-execute the project in accordance with the implementation and expenditureschedules for the project period, and fo operate and maintain adequstely andefficiently the public tubewell systems under the project. In this respect,an understanding was reached during negotiations with GOB on the terms ofreference of the management study (Annex 4) which specify the financialmonitoring requirements under the project so that sufficient information willbe available for IDA to review the annual budget requests and provisions forO&M within the TW.

5.03 The construction of new tubewell systems and modernization orrehabilitation of existing systems would be seasonal as it would be advan-tageous to undertake many of the works during the dry season. To initiatethe work program in the first year, and avoid delays related to procurementprocedures, retroactive financing not exceeding US$1.0 M would be providedfor expenditures taking place after October 1, 1985. Retroactive financingwould cover expenditures on (i) vehicles, materials and equipment; (ii)materials for tubewell energization; and (iii) management improvements,including the management study for the newly formed Tubewell Wing in MID(para 4.30).

Procurement

5.04 Procurement arrangements are summarized below:

Total Non-Eligible Eligible

Components iCB LCB Other Costs Costs a/ Total Cost bt-------------- (USS M-…----- - --------------

A. Works1. New Tubewells - - 4.8 (3.7) 2.0 (1.4) 6.8 (5.1) 2.9 9.7 (5.1)2 Modernised Tubewuels - - 6.3 (4.8) 1.1 (0.8) 7.4 (5.6) 2.3 9.7 (5.6)3 Rehabilitated Tubewells - - 6.2 (4.7) 0.7 (0.5) 6.9 (5.2) 2.4 9.3 (5.2)4. Buildings - - 4.I (3.3) - 4.7 (3.3) 0.5 5.2 (3.3)

Sub Total - 22.0 (16.5) 3.8 (2.7) 25.5 (19.Z) 8.1 33.9 l9.2l

S. Management Imorovements c/ - - 0.5 (0.6) 0.5 (0.S) - 0.5 (0.5)

C. Goods d/1. PVC pipe and fittings 21.8 (16.0) - - 21.8 (16.0) - 21.8 (16.0J2. Pump Units and anCillaries - 4.8 (3.6) - - 4.8 (3.6) - 4.8 (3.6)3. Steel pipe and fittings 3.3 (2.4) - - - 3.3 (2.4) - 3.3 (2.4)4. Other Misc. equipment - 4 T3.5 0.8 0.6) 5.5 (4.1) - 55(4ll

Sub Totat ~~~~25.1 (18.4} . 71 . 06 54(6t 35.4 (6t

C . Power SuoP Ivt. Works - 4.0 (3.1) 0.7 (0.6) 4.7 ( 3.6) 2.6 7.3 (3.6)2. Materials & Equipment d/ - 22.6 (16.5) - - 22.6 (16.5) - 22.6 (16.5)

Sub Total 26.6 (19.6) 0.7 (0.5) 27.3 (20.1) 2.6 29.§ (20.1)

Total (A+B*C) 25.1 (18.4) 58.1 (43.2) 5.8 (4.3) 89.0 (65.9) 10.7 99.7 (65.9) e/=a== =ca =9= l=== ==-= 5 = =us

al Costs not eligible for disbursement include those for Engineering and Administration and Land Acquisition.bi Figures in parentheses are the amounts allocated under the Credit to variOus procurement categories.£ Including Training, Study

Tours, M8&E. and Consultancies and Studies. excludinG vehicles and equipMent.

d/ Including taxes and duties which average stout 5% of base costs.e/ Excluding US$ 2.1 M which is not allocate! t.2 specific works (see Table T-9).

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5.05 Works. Works to be financed under the project would cost aboutUS$25.8 M excluding engineering and administration. Of this, about US$22.0 Mwould be let through Local Competitive Bidding (LCB) procedures satisfactoryto IDA including construction of buried pipe distribution systems, accessroads, and buildings (i.e., pump houses, workshops and storage facilities,cluster complexes, the training facility and other buildings). These workswould be individually small and scattered, and their implementation would begoverned by weather and agricultural conditions. Because of these and othertechnical constraints, there would be a general lack of interest from con-tractors located outside the districts covered by the project. All LCBcontracts would be let on the basis of standardized documents snd proceduresrecently developed by GOI's CWC and satisfactory to IDA.

5.06 Of the remaining US$3.8 M of works to be financed under the project,about US$3.1 N would consist of drilling of bore holes which would be carriedout by the TW which has established competent staff capable of drilling about400 wells per year. The well construction would be undertaken departmentallyfor the following reasons: (i) the extensive project area and the relativelysmall program related to the seven year implementation schedule would makethe work unsuitable for contracting; (ii) at present, there are no competentlocal contractors with either trained staff or equipment to carry out drill-ing and well completion to the specifications required for public wells; and(iii) the departmental establishment has undertaken public tubewell drillingin Bihar since the 1950's and performs the work economically and efficientlyas compared to similar works elsewhere in India. In addition, when thequantities of work are difficult to estimate in advance, such as repairs toexisting systems or repairs to equipment, small works would be implemented byGOB's departmental forces upto an aggragate of about US$0.7 M.

5.07 Power Sugply. Power transmission and transformation works to befinanced under the project would cost approximately US$27.3 M, excludingengineering and administration. Of this, about US$4.7 M would consist ofinstallation costs and US$22.6 M (inclusive of taxes and duties) wTould be formaterials and equipment. As with IDA credits for rural electrification, BSEBwould be responsible for the works including procurement of its own projectmaterials, using Rural Electrification Corporation (REC) standard specifica-tions and standard General Conditions of Contract and procurement proceduresas agreed for the Bank supported Third Rural Electrification Project (Loan2165-IN). The BSEB would invite tenders, using LCB procedures satisfactoryto IDA, for the procurement of conductors (US$6.3 M), distribution trans-formers (US$1.8 M), HT Insulators (US$1.2 M), concrete poles (US$4.6 M), andgeneral materials (US$8.7 M). Generally the BSEB would not procure materialsand equipment for project works as separate contracts, but include theproject items as part of their regular procurement for the statewide ruralelectrification program. In view of the expected large number of smallcontracts and the present smooth functioning of the BSEB procurement process,only contracts exceeding US$0.5 M equivalent would require prior IDA approvalto bidding documents and contract awards.

5.08 Materials. Equigment and Vehicles. The goods to be financed underthe project would cost approximately US$35.4 M, inclusive of taxes andduties. Steel casing and fittings (US$3.3 M) and PVC pipes and fittings(US$21.8 M) would be procured through ICB procedures. A preference limited

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to 152, or the prevailing custom duty if lower, would be e"tended to localmanufacturers in the evaluation of bids. The equipment and materials wouldbe packaged to promote efficiency and attract competition. However, bidswould also be accepted for individual slices to attract smaller manufac-turers. Pumpsets and spares (US$3.0 M), ancillary pumpset equipment (U8$1.8M), alfalfa valves (US$1.0 M}, and miscellaneous small equipment includingvehicles (US$3.7 M) would be procured by LCB procedures to benefit=fromexisting servicing and supply facilities for spare parts. For both equipmentand materials procured by LCB, there is adequate domestic production andprices are highly competitive. Standardized procedures and bidding documeatsdeveloped by CWC and satisfactory to IDA would be used for procurement ofmateriali, equipment and vehicles. Equipment for management improvements-(US$0.8 M) would be procured in accordance with local competitive biddingprocedures satisfactory to IDA.,

5.09 Contract Revie. In addition to the procurement procedures outlinedabove for the power supply component (para 5.07), all bidding packages andcontract awards for works estimated to cost US$0.5 M equivalent or more sadfor goods costing US$100,000 equivalent or more would be subject to IDA priorreview. These would account for at least 80X of the procurement value ofworks. The remaining contracts would be subject to IDA post-review.

Diakbursmet

5.10 Disbursesents under the credit would be made against: (i) steel andPVC pipes, fittings and casings, general steel items, pump units and ancil-laries, and other equipment at 100 of foreign expenditures or 1001 of localexpenditures (ex-factory costs) or 751 of local expenditures for other itemsproduced locally; (ii) c.vil works on tubewells and buildings at 751 ofexpeuditures; (iii) tubevell energization at 751 of expenditures; and(iv) management improvements (excluding buildings) at 1001 of expenditures.Disbursement for modernized and rehabilitated tubewells, item (ii) above,would be made against certificates of expenditure submitted by GOB anditemized by major components. The disbursement request would also include acertified statement by the Engineer-in-charge that; (i) all civil works ona new, rehabilitated or modernized tubewell system has been completed inaccordance with agreed siting, planning and design criteria; and (ii) thetubewell has been electrified with a connection to a dedicated feeder line.Disbursement for the power transmission network serving a cluster of wellswould be made in stages as tubewells in the cluster are energized.

5.11 Disbursement for works constructed by departmental forces and forpayments of less than Re 300,000 for works and Rs 150,000 for goods itemizedby sub-project and against expenditures under the management improvementscategory (oncluding buildings) would also be made against certificates ofexpendit% :e submitted by GOB. Documentation of these expenditures would beretained by GOB and made available for inspection by IDA during projectreview missions. The proposed allocation of the proceeds of the credit andthe estimated schedule of disbursements are presented4uaTable T-9. Theschedule is based on disbursement profile for Bank group supported irrigationprjects in India. It is anticipated that disbursements would be completedby March 31, 1994.

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5.12 To speed up disbursements, a special account (SA) would be estab-lished from vhich suppliers and contractors would be paid. This 8A would befor the equivalent of US$5.0 M, which is the amount GOB is expected to spendin a four-month period. All expenditures from this 5A would be promptlyreported and documented to the IDA to facilitate its rapid and smoothreplenishment. The SA may oniy be used to pay for expenditures eligible forreimbursement by IDA.

Accounts sad Audits

5.13 The project would be subject to normal Government control and audat-ing procedures. A resident Audit Officer, representing the State AccountantGeneral (AG) would audit the project accounts. Although continuous andannual audits are carried out in a timely manner, the finalizatiou is alengthy process during which the Statutory Audit Report is presented to theLegislature. It would be essential therefore to have interim statements ofaccount certified as to accuracy and authenticity by an independent competentauditor. Such statements certified by the AG or his designee, supported byan itemized account and a summary of the expenditures, would be submitted toIDA as soon as possible after the end of each fiscal year. Thus, agreementshave been reached with GOB that it would cause the MID and BSEB to:Si) maintain separate records and accounts adequate to reflect, in accordancewith sound accounting principles and procedures consistently applied, itsresources, expenditures and operations related to the project; (ii) furnishto IDA copies of accounts and financial statements for each year, certifiedas to their accuracy and authenticity by an independent auditor acceptableto IDA, not later than nine months after the end of each fiscal year;(iii) have accounts and financial statements related to the project, includ-ing the Special Account, for each fiscal year audited annually by independentauditors acceptable to IDA; (iv) furnish to IDA immediately following itsfinalization, the report of such audit in such detail as IDA shall reasonablyrequest; (v) furnish to IDA any other information as it shall reasonablyrequest; and (vi) enable IDA's representatives to examine all records per-taining to the Credit.

5.14 Special attention would be given under the accounts and audits proce-dures with respect to statements of expenditure and to 06W expenditures.Thus, agreements have been reached with GOB that it would cause the MID to:(i) maintain separate records and accounts for statements of expenditure;(ii) retain such records and accounts for IDA review, for at least one yearafter IDA has received the project audit report for the fiscal year in whichthe last withdrawal from the credit was made; and (iii) ensure such separateaccounts are included in the annual audit and that the annual audit reportcontains a separate opinion as to whether such expenditures were used for thepurposes for which they were provided. In addition, agreements have beenreached with GOB that it would cause the MID to: (i) maintain separateaccounts for 0&M expenditures of public tubewells throughout the State insuch a manuer that the establishment, energy and maintenance costs can beseparately identified; and (ii) make available such accounts and financialstatements to IDA for inspection during project review.

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VI. QRGANIZATION AND MA&GEDIMNT

Background

6.01 Management of public tubewell systems has been the responsibility ofthe BWDC since 1974. However) for reasons detailed in Chapter III, the GOBis in the process of winding up the BlDC and replacing it with a new TubevellWing (TW) which would be a line organization within the Minor IrrigationDepartment (MID). All existing tubewells and other assets of the BWDC, alongwith essential staff and supervisory officials, would be transferred tothe TW.

6.02 Overall responsibility for implementation of the proposed projectwould rest with the Secretary-Commissiouer, MID. The new TW would be theagency respo sible for project planning and implementation, including con-struction of new tubewell systems, rehabilitation or modernization of exist-ing systems, and O&M of all public tubewells throughout the State. The BSEBwould be responsible for construction and O&M of the power component underthe project.

The Tubewell Wing

6.03 The GOB formally transfered responsibility for public tubewells inthe State from the BWDC to the new TW on August 13, 1986. Organization andstaffing requirements have been estimated using physical rather than finan-cial norms to define the workload which can be efficiently undertaken by afully staffed division or sub-division for each type of work activity. Theproposed organization build up is given in Table T-10 and shown at projectcompletion on Chart C-5.

6.04 The Chief Engineer (CE) in charge of TW.(to be designated Engineer-in-Chief)would be appointed to act also as Project Co-ordinator (PC). He will beresponsible for the day-to-day co-ordination at the working level of projectimplementation, reporting directly to the Secretary-Commissioner, MID. ThePC would be assisted by a Project Co-ordinating Unit (PCU) which has been setup in headquarters (Patna). The PCU would draw up aunual work and develop-ment programs, prepare project reports, and liaise with other agenciesimplementing the project (Department of Agriculture and BSEB). A ProjectAccounting Unit (PAU), which has also been set up within the MID accountingsystem, would undertake all project activities related to financing, accountsand audits. The PAU would be headed by an officer on deputation from theOffice of the Accountant General (Bihar). In this respect, an agreement hasbeen reached with GOB that it would maintain Project Co-ordinating andAccounting Units within the TW under the direction of suitable qualified andexperienced officers.

6.05 The headquarters staff would be organized in four units, each headedby a Superintending Engineer (SE), and with following responsibilities:

(a) The Investisation. Planain& and Desanv Uait (IPDU) would co-ordinateall aspects of investigation and planning, undertake detailed design,and prepare tender documents and construction specifications.~ It

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would ensure that all other agencies involved in project implementa-tion and development (in particular, the BSEB and DOA) co-ordinateactivities to enable the work program to be completed without delays.The IPDU would also be responsible for preparation of the Design of0&- Q manuals (para 6.18) and provide necessary support to the Trainingand Movitoring and Evaluation Unit.

(b) The Procurement Unit (PU) would be responsible for the purchase ofmaterials. equipment and vehicles under the project. .n additionto the central headquarters staff, the PU would have a sub-unit ineach zonal headquarters (para 6.06).

{c) The Trainiqg and Honitorina and _Evaluation Unit (TKEU) would beresponsible for all in-staff training and organization of study toursprovided under the project. It would also be responsible formonitoring and evaluation activities. With respect to training, mostof the TMEU staff would be based at the staff training center (para4.29).

(d) The Q_uality gontrol Unit (QCU) would be responsible for all aspectsof quality control during construction and commissioning phases ofthe project program.

6.06 For project works, the TW would be organized regionally into twoterritorial zones located north and south of the Ganga river. Each zonalfield unit would be headed by a CE with broad responsibilities and powers ofa Head of Department of the GOB. The CE (North) and CE (South) would takeresponsibility for about 2,780 and 2,530 existing tubewell systems respec-tively, together with construction of new tubevells within their regions. Atzonal headquarters, in addition to an administrative unit, would be located azonal workshop (para 6.15) and a drilling division responsible for the drill-ing of all new boreholes throughout the region.

6.07 The TW would have three operational circles within each zone, eachheaded by a SE, and responsible for construction (except for drilling) andOEM of all public tubevells within their territorial boundaries. Circleswould have an average of four 06K divisions in the field, and a constructiondivision attached to the circle headquarters. A typical construction or OMdivision, headed by an Executive Engineer (EE), would have three or foursub-divisions depending on the workload, each headed by an AssistanceEngineer (AE). Each sub-division would consist of three or four sections,each supervised by a Junior Engineer (JE).

6.08 The O0M divisions would be responsible for all aspects of operationand maintenance of public tubevells. An 0&M division would be responsiblefor about 270 to 360 tubewells (about 12 tubevell clusters) depending ondensity of units within its territorial jurisdiction (para 4.22). Each O&Mdivision would also have a workshop/store located at the divisional head-quarters. One AE, based in the divisional headquarters, would have twoclusters under his charge in addition to a divisional store and workshop.The O0N staff would work closely with the agricultural staff responsible fordevelopment and farm demonstrations in the public tubevell command areas.The JE (061) would have office space in the building complex provided for

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each tubewell cluster (para 4.27). The tubewell clusters will be scatteredwidely and for the OEM staff to function effectively, transportation would beprovided with 2 jeeps and 4 light trucks at OhM divisional level and motor-cycles for all ABs and JEs with OM responaibilities. Motorcycles will bepurchased by staff through loans provided by the TW and operated under atransportation allowance.

6.09 A construction division (attached to each field circle) would beresponsible for consttu,ting pump houses, distribution chambers, installingpumping equipment and laying out- pipelines to the outlet level. It wouldalso be responsible for commissioning new tubewells and would design andsupervise the setting up of the rotational schedules of water distribution ineach tubewell command area. The repair and-rehabilitation of existingtubewell systems would be undertaken by special construction sub-divisionswhich would be temporarily attached to the permanent circle constructiondivision until the repair and rehabilitation work program has been completedwithin its territorial jurisdicatlon of the division. The special construc-tion sub-division would theu be moved to another area with an appropriateworkload.

6.10 Staffirs Reguirementa. A basic prerequisite for successful implemen-tation of the project would be for the MID to provide effective and efficientstaff for the new TW. To achieve this objective, staff would be availableeither through transfer within the MID or through recruitment, depending onoverall staffing requirements of the TW and availability of staff within theMID through the project period. Those staff who can be usefully employedhave been transferred from the BWDC, and the MID has ensured that seniorofficers (in particular, CEs, SEs and EEs in executive roles) have beencarefully selected such that they are capable of undertaking project duties.For 01) activities, particularly at field level, the TV are specifying mini-mum qualifications for staff and will adhere strictly to these conditions forfilling vacancies within the project organization. The staffing requirementsof the TW.through the project period are shown in Table T-ll. Agreementshave been reached with GOB that it would: (i) sanction and fill staff posi-tions within the TW and provide necessary funding, in accordance with anorganization structure and staffing schedule acceptable to ID&, to enable theTW to carry out the project; and (ii) train such staff so that the TW canimplement the project and operate and maintain the project works.

6.11 When the TW.i8 structured and staffed as described in paras 6.03 to6.10, it will be able to operate efficiently aud effectively. However, toassist the TV-to improve its maaagement capability, the GOB will retsinqualified Management Consultants to undertake a comprehensive ManagementStudy of the TW in accordance with terms of reference agreed with IDA (Annex4). In this respect, agreements have been reached with GOB that it would:(i) undertake a Management Study of the TV in accordance with terms ofreference satisfactory to IDA; (ii) furnish a report summarizing the resultsand recommendations of the study to IDA for review by September 30, 1987;and (iii) taking into account IDA's comments, carry out the recommendationsof the study according to a timetable satisfactory to IDA.

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Osrat ion and Maintenance

6.12 Water Alocation. It is presently impossible to operate a formalwater allocation procedure ou public tubewell systems in Bihar because ofthe poor operational condition of most wells and extreme insecurity of powersupply. Water is delivered to farms on an ad hoc basis, as and when it isavailable. The tubewell operator is responsible for making the allocation,but is often influenced by powerful landowners or by his own judgment ofwater requirements on farmers' fields. Inability to easily check waterallocation, coupled with unreliable power supply and frequent equipmentdefects, has meant that designed rotational schedules are almost impossibleto observe. Consequently, irrigation deliveries are unreliable and ineq-uitable. Particularly when supplies are limited, small farmers, or thosewith fields furthest from the well point, are frequently denied their equi-table share of water. Under the project , for new and modernized tubewellsystems and (less effectively) for rehabilitated tubewells, it would bepossible to allocate and deliver water to farmers with predetermined timingand in predictable and appropriate quantities.

6.13 For new and modernized tubewell systems under the project, the designprinciple would be to divide the commaud area of a buried pipe distributionloop system (para 4.14) into seven equal parts, each serving about 7 ha. The7 ha unit would be known as an "area/day" command and would be entitled towater supplies from the tubewell on a fixed day of the week at a stream flowof about 75 ml/hr. The water right of each farmer in an "area/day" commandwould be allocated by the TWMin proportion to the holding area of eachfarmer; his water right would be expressed in hours of tubewell operatingtime. The farmers within the "area/day" command would form a committee whichwould be responsible for water distribution within the area served (para6.16). An advantage of this arrangement is that the grouping of farmerswould minimize the chance of one power group controlling operation of atubewell. The arrangement would also eliminate a management role for thetubewell operator whose main function would become that of a record keeper.In addition, the water allocation procedure would relate to operationalconsiderations and not the physical location of an outlet on a buried pipedistribution system. Valve outlets would be sited to give effective commandto all the area 3erved by a tubevell. Thus, on a typical day, two "area/day"commands would be irrigated, with one command on each loop of the tubewelldistribution system (Chart C-3). Similar water allocation arrangements wouldbe formulated and introduced for rehabilitated tubewells with lined channelor buried pipe conveyance systems.

6.14 Oweration Principles. The operation criteria for new and modernizedtubevell irrigation systems would be such that water is supplied according toarea cf holdings within the tubevell command with service to an individualfarmers on a predetermined day of the week. An 'area/day" command would bethe unit by which water deliveries are scheduled and quantities delivered toeach command area would be based on a rotational allocation designed by thestaff of the TV. Only one outlet on a loop distribution system would beopened at a time. Thus, as water supplied at an outlet is at a fixed dis-charge, delivery would be equivalent to volumetric distribution on a timebasis. Farmers will be able to check that they are receiving their correctallocation of water since if another outlet valve is opened, the decrease in

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flow would be easily recognised. Delivery to outlets on rehabilitated sys-tems would operate according to similar principles.

6.15 Maintenace CrUiteria. Each tubewell cluster (para 4.22) would beunder the responsibility of a JE (OWM) who would have two full-time skilledmechanics to provide routine and regular maintenance service for thetubewells. The OEM divisional workshop would be equipped for day-to-daymaintenance of pumps, electric motors and switch gear, and provided withadequate transport. The divisional workshop would hold at leaat 10% sparesagainst items replaced or repaired ou a frequent basis, such as pump tur-bines, electric motors and ancillary electric equipment. The circle andzonal workshops would have facilities with increasing capability to undertakemajor repairs. As part of routine maintenance, pump discharges would bechecked at half yearly intervals and turbine impellers would be replaced iflow discharges indicate wear; well discharge and drawdown would also bechecked regularly. Wells would be rehabilitated if the discharge/drawdownrelationship indicates deterioration of well performance.

Tubewell Frmers' Oryanizattion

6.16 Farmers within the commands of new or modernized public tubewellswould be organized by the JE into water user groups. Each "area-day" commandon the buried pipe distribution system would be organized by an informalgroup of all beneficiaries (about 7-10 farmers). A Tubewell Committee (TWC)would also be set up consisting of about 14 members (out of about 100beneficiaries) with one member from each "area-day" command. The TWC wouldelect a President witb the tubewell operator acting as the Secretary. ThePresident would represent the tubewell beneficiaries on a Tubewell ClusterCommittee (TCC). The TWC would be responsible for cooidination amongst the14 'area-day' command groups served by a tubewell; settling local disputes;reporting to the (O0&) JE any problems related to its tubewell; co-ordinatingthrough the cluster committee with local Agriculture Extension Officers andagricultural input agencies; and assisting the tubewell operator in mattersrelating to collection of water charges. The TCC would undertake taskswithin a cluster similar to those of a TWC for an individual tubewell.

Other Proiect ManagMnt Activities

6.17 Staff Trainig,. Even with careful selection of staff (para 6.10),training of existing and new staff in the TW would still be an importantactivity. Staff training would be organized by the TMEU (para 6.05) andfocus on five main activities: (i) management training for senior staff;(ii) planning and design of improved tubewell systems with special attentionto the layout of pipe distribution systems; (iii) water allocation and landacquisition procedures and legal parameters affecting public tubewell sys-tems; (iv) OUM of completed tubewell systems; and (v) the promotion andorganization of water user groups. Training on tubewell systems would benecessary because automatic operation at the well point and pipe distributionsystems to be installed under the project are unfamiliar to most engineeringstaff in Bihar who would be responsible for the project works. -The trainingwould be "in-service", directed by senior officers and other experts andundertaken on a regular sebedule at the staff training center (para 4.26),The courses would include lectures, discussions, case studies and field

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trips. Junior staff would be trained for about three weeks and senior stafffor obout -one week. A pre-requisite for the training program would be-thetomtpilation of the Design and C4& manuals-.

6.18 Desikn and O&M Manuals. The technology used for new tubewell systemshas been continually improved over the past six year period from experiencagained in Uttar Pradesh. Sufficient progress has been made to produce both adesign and an O&M manual covering all aspects of planning, design and manage-ment of public groundwater irrigation systems. The design manual would alsodescribe the principles, procedures and implementation methods associated.with repair, rehabilitation and modernization of existing tubevell systems.The O&M manual would cover all aspects of management of public tubewellsystems including the arrangements and procedures by-which the TW relates toother agencies involved in public tubewell development and utilization. Aprovision is made under the project to assist in the preparation and printingof design and O&M manuals. An agreement has been reached with GOB that itwould prepare and furnish to IDA for its-review, by March 1, 1987, drafts ofcomprehensive design and O&M manuals, aud taking into account IDA's comments,adopt and utilize the manuals in the planning, design and operation andmaintenance of public tubewell systems.

6.19 Progress Review and Renorting Requirements. Progress reports wouldbe prepared by the PCU (para 6.04) and be submitted to IDA on a semi-annualbasis. Each report would contain brief descriptions of the main events ofthe reporting period including construction progress; expenditures incurred;project staffing status; tenders, evaluation and awarding of contracts;irrigation potential created; actual areas irrigated; operational hours ofwater points; and the power supply situation. Agreements have been reachedwith GOB that it would: (i) prepare project progress reports on a semi-annualbasis for the periods April 1 to September 30 and October 1 to March 31; (ii)submit such reports to IDA within two months after the end of each reportingperiod with the first report to be submitted by March 31, 1987; and (iii)prepare a project completion report, no later than six months after thecloinig date of the project.

6.?0 . The existing M&E unit at MID wouldbe strengthened at headquarters and form a part of the ntew TMEU, and two M&Efield units set up at zonal levels (para 6.05). The TMEU would be respon-sible for collecting and analyzing data on project planning, implementationand performance particularly with respect to siting of project works and thequantity and quality of the irrigatioL service. The unit would also beresponsible for agro-economic monitoring, including crop production andinput/crop yield data for the main crops grown under the project. Theoperator at each tubewell would assist the M&E field units by keeping dailyand seasonal records which reflect aspects of the agricultural performance.Each operator will also keep data on annual maintenance costs and revenuefrom water charges for the tubewell he operates. The data would be analysed-by the M&E field units and consolidated with other costs of O6M from divi-sional and circle headquarters to obtain total O&M costs; the results wouldbe incorporated in the regular progress reports (para 6.19). In thisrespect, agreements have been reached with GOB that it would: (i) not laterthan March 31, 1987, prepare-draft work plans and schedules for M&Eactivities under the project; (ii) taking into consideration IDA's commezts,

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carry out the work plan; and (iii) co=eucing July 1, 1987, review the workplan annually in consultation with IDA and, if necessary, revise the workplans accordingly.

6.21 Baseli Survey. One of the main F taske will be to carry outbaseline surveys to enable project impact to be evaluated. The studies wouldbe undertaken in three stages. First, an initial baseline study of thepresent situation would be made for representative sample areas to bedeveloped with each type of technology under the project. Data would also becollected outside the project area so that the "future without' projectsituation can be assessed and ccapared- Second, the areas evaluated underthe initial taseline study would then be monitored on a regular and routinebasis by the M&E staff. In this respect, the TAHU would prepare regularreports of its activities after data from each kharif and rabi croppingseason has been processed. An important monitoring task will be to verifythat project target groups (para 4.02) are indeed reached. Finally, in theyear prior to project completion, data collection under the initial beaelinestudy would be repeated so that project impact can be evaluated. The conclu-sions with supporting data of the final study would be submitted as part ofthe Project Completion Report (para 6.19).

6.22 To assist the GOB'with M&E activities under the project, the TW wouldretain either qualified local consultants or an appropriate government agencyto undertake the initial baseline survey and, based on the survey conclu-sions, assist the TV to formulate a N&E program to be undertaken by M&E staffon a regular basis. Technical services would also be used to advise the TW.on preparation of data col'ection sheets; frequency of data collection;sample selection and sizing; evaluation methods; management use of proceededdata; aud feedback procedures so that results can be passed up in appropriatedetail through the various management levels of TM.organization. The infor-mation and data to be collected would include socio-economic indicators suchas cropping patterns, cultivation methods, input application, on/off farmlabor, extension service assistance, returns from farming and other sources,and home living conditions and also an evaluation of the impact of groupactivities. The study would also assess the practicality and feasibility ofwhether farmers served by public tubewells could be organized to manage atubewell on a communal basis. ln addition, the TW would retain technicalservices to assist with agro-economic studies as required for the projectcompletion report. In this respect, agreements have been reached with GOBthat it would: (i) carry out a baseline agro-economic survey for the projectwith terms of reference established in consultation with IDA; (ii) furnish toIDS for its review and comments, by July 31, 1987, a report summarizing theresults and conclusions reached under the survey; and (iii) taking intoaccount the IA's comments, carry out any needed adjustment in further surveyprograms in such detail as IDA may reasonably request.

Bihar State Electricity Board

6.23 Bihar State Electricity Board (BSEB) has a Chief Engineer - GeneralManager for Rural Electrification (RE) - who is in charge of all rural elec-trification throughout the State (including centrally-sponsored schemes)together with works connected with energization of pumpsets. Re is supported

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by staff located in all districts of the State. The CZ (RE) would be respon-sible for implementing the power component under the proposed project. Sincethe workload would be substsatially. Areater than at preseut, a new unit iuthe BSEM headquarters would be set up speeifically to undertake plauning,design and procurement of project works. The unit would coordinate itsactivities with the TW, prepare claims for reimbursement from the SW1 andalso undertake necessary monitoring of the power supply component. It wouldnot be necessary to create a special organization for construction of thepower compouent of the project. Existing field divisions of the BSEB wvouldbe able to absorb this work load as tubewells to be connected to dedicatedpower lines would be distributed throughout the State over a seven yearperiod. -

Department of Agricultue -

6.24 The Department of Agriculture (DOA) is responsible for agriculturalextension services and any research activities required under the project.The project would take advantage of the existing extension and researchsystem in the project area (para 2.15 et seq). To obtain maximum benefitfrom the extension service and focus on the research requirements of theproject, close coordination would be maintained by the TW and those parts ofthe DOA responsible for project-related activities. At field level. onceindividual tubewells and clusters of tubewells become operational, the farmerorganizations (para 6.16) at the appropriate level, would provide a suitablehierarchy through which the extension service could reach projectbeneficiaries on a group basi' to supplement individual farmer contact. Thecluster buildings (para 4.27) would provide a small storage facility whichcould as needed be used for extension or other agricultural activity*

VTI. AGRICULTURAL PRODUCTION. MARKET PROSPECT AND PRICES

Crogi2nin Patterns

7.01 Based on agricultural performance of other minor irrigation schemesin Bihar, it is expected that cropping patterns would generally folLowpresent practices with choice of crops depending on soil types, vailabilityof irrigation water, and for cash crops, access to ready markets. The maincrops are described in para 2.11. Experience to date in Bihar indicates thatintroduction of irrigation has not had a marked influence on the type ofcrops grown. It has therefore been assumed that: (-i) under the project,overall cropping intensities (rainfed plus irrigated) would increase throughexpansion of the area cropped in the rabi season; and (ii) without theproject, future cropping patterns would not change significantly, with ricebeing the preferred crop in kharif season and wheat in the rabi.

7.02 The main effect of the project would be to increase irrigated crop-ping intensities in the rabi and hot seasons by about 50Z in new and modern-ized tubewell commands, and on average by about 35% in the areas of existingpublic tubewells, where irrigation is at present only partial. The tubevellsystems would provide full irrigation for rabi and/or hot season and forperennial crops. The main cropping changes are expected to include introduc-tion of hot season maize and vegetables, and in the rabi season, a substan-tial increase in-the EYV.wheat, and moderate increases in rabi areas sown to.

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oilseeds, fodder and maize. In the kharif season, supplementary irrigathi.;for paddy would result in considerable improvements in yields in years of It,rainfall or when there are breaks in the monsoon. ln addition, availabiliLyof a reliable irrigation service would encourage farmers to grow early HYVvarieties of paddy (100-120 days) transplanted in July. In turn, the har-vesting dates of early kharif paddy would euable an earlier planting of whic-uand other rabi crops with a resultant increase in cropped area and yields Oyiwheat. To summarize, cropping patterns assumed for the "future with" projectsituation take into account four major factors: (i) the preference of farmersto grow paddy in kharif; (ii) the capacity constraint of the irrigationservice particularly with respect to land preparation.and transplanting ofpaddy in the wet season; (iii) the optimum time for wheat sowing in tie dcyseason; and (iv) the agro-economic potential of the areas served.

7.03 Virtually all of the potential beneficiaries of the project would besmall or marginal farmers unable to afford their own tubewells. Thdii cropyields are generally low, largely because of their reluctance to irvest ilinputs, given the risks and low returns associated with rainfed farming. Itis assumed that without the project these farmers would continue to followrainfed cropping patterns. However, there would be a gradual increase in thr'use of fertilizers and certified seeds of improved varieties over time asmore farmers become aware of the benefits of such inputs. The "futurewithout" project situation therefore assumes moderate improvements in yieldb.

Future CroR Yields

7.04 In the "future with" project situation, yield increases are expecteoto be substantial as farmers respond to reduced risks associated withirrigated compared to rainfed farming and utilize larger quantities of fe-tilizer, HYV and agro-chemicals. It is estimated that irrigated paddy yielildiwould rise from less than 1.0 t/ha at present to about 2.0-2.3 t/ha, andwheat yields from about 1.4 t/ha to about 2.0 t/ha. These future yields ofirrigated grain crops are well below paddy and wheat yields obtainable undeiaverage Bihar conditions, but reflect the more limited financial capabilityof small farmers of the type the project is designed to reach, to purchaseappropriate packages of inputs. The irrigated crop yields assume reliableand timely water supply, and moderate improvements compared to presentirrigated agricultural practices with respect to land preparation, use otfertilizer, seed quality, weed and pest control, cultivation and plantingtechniques, and timeliness of harvest and threshing. The crop yields alsoassume water application at field level as presently practiced in Bihar onholdings which receive reliable water supplies from public tubewells, and amoderately effective agricultural extension service. Estimates of cropyields "with" and "without" the project for the three main agro-climaticzones are detailed in Annex 2, Table 3.

Innut Reauirements

7.05 Present use of fertilizer and plant protection chemicals by themajority of potential project beneficiaries is minimal and mostly limitedto paddy, wheat and maize. Even farmers who use their own irrigation sourceBand therefore have the potential to apply full crop water requirements, useonly about a third of recommended chemical inputs. Very few farmers nse good

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quality seeds (paddy, wheat and maize) and most farmers meet their seedrequirements from their previous harvests. The average farmer owns one pairof draft animals which provide adequate farm power for the small size hold-ings and general farming practices. Present and projected input requirements(Annex 2, Table 3) reflect the low income level of farmers which would bereached by the project. Crop yields used in the project analysis correspondwith the assumed moderate input levels.

7.06 The main input requirements of project farmers would be certifiedseed of improved varieties and HYV. fertilizer and agro-chemicals. Suffi-cient improved seeds would be available as reported by both the Bibar StateSeed Corporation and the closely associated Niational Seeds Corporation.Moreover, they have distribution depots to supply farmers in each districtsub-division. The major supplier of fertilizer is the Bihar State Coopera-tive Marketing Union (BISCOMAUN) which has 527 depots (one in every block)throughout the State. However, BISCOMAUN only makes two requisitions forpurchase of fertilizers each year and these appear to be based on salesvolume in the previous years which have been static or declining since1980/81. Increased demand by the project farmers would be gradual, andshould not create supply problems. Agro-chemicals in Bihar, such as pes-ticides, are supplied by both BISCOMAUN and the private sector. Problemshave recently been experienced with the quality of pesticide. However,quantities required under the project are expected to be relatively small,and it is unlikely that risks of shortages present a major issue for theproject's success.

Market Prosoects and Prices

7.07 The project area covers a large part of Bihar and therefore thepotential market is substantial. Production increases, although significantpercentage-wise and in terms of the immediate areas developed, are expectedto be realized over a long period and would be small in relation to themarket. Therefore, marketing of surplus produce is not expected to pose aproblem with the established trading system of private dealers and Governmentmarkets. It is envisaged that the project would generate need for morestorage capacity at local cooperatives to allow farmers to store produce andthus benefit from higher seasonal prices. Such investments in storage wouldgenerally be financed through institutional credit.

7.08 No major changes in crop prices are foreseen. While prices arelargely determined by seasonal supply and demand patterns, Government pricepolicy prevents acute declines of prices in good growing seasons. Pricepolicies for rice and wheat have been particularly effective in maintainingsufficient incentives for farmers, while keeping real prices to consumersfairly stable. Since Bank projections of international grain prices showonly small changes from present levels, it has been assumed that futurefarmgate prices (in constant terms) for paddy and wheat would approximatecurrent official procurement prices (September 1985) of Rs 1.400/ton and Rs1,450/ton for paddy and wheat respectively.

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VIII. FINANCIAL ANALYSIS

General

8.01 Project works will be sited throughout northern Bihar where mostbeneficiaries are farmers with small holdings who would not normally be ableto develop a groundwater irrigation source at their own expense. Thus, thefinancial impact of the proje¢t has been evaluated only for those farmerswith holdings which are presently uou-irrigated, namely all farmers withinthe command areas to be served by new tubewelle; and those within about 851of the command area for existing tubewells to be modernized under the project(i.e. excluding 15% of the command area presently irrigated). It is alsoassumed that both new and modernized tubewell systems would provide anirrigation service of the same quality. For rehabilitated tubevells, it isassumed that the reliability of irrigation service would improve con-siderably, mainly due to provision of a dedicated power connection.

FarM Incomes

8.02 The average cropping patterns for the three agro-climatic zones'with' and 'without' the project are shown in Table T-5. In order to assessthe project financial impact on individual farms, three basic cropping pat-tern models have been formulated which, for simplicity, are the same for allagro-climatic zones and vary only according to soil type as follows:(i) farmers with heavier soils would follow a predominantly paddy/wheatcropping pattern which would be consumption rather than cash crop oriented;Xii) farmers with light soils would prefer a maize/wheat/pulses rotation; and(iii) farmers with fragmented holdings of both light and heavy soils wouldfollow a mixed cropping pattern of paddy/wheat on some fields and maize/wheaton others. In addition, a fourth high income cropping pattern has been usedto indicate likely impact of diversification into other crops which givehigher return per hectare than paddy/wheat or maize/wheat. Adoption of thehigher income cropping pattern would depend on many factors such as marketopportunities, supply-and availability of inputs, farmers' entrepreneurshipand availability of adequate extension advice. The cropping pattern modelsare given in Annex 2, Table 5 with the assumptions detailed in Annex 2.

8.03 Based on the above assumptions, net cash income of the four farmmodels have been estimated in Annex 2, Table 6 and is sumarized below:

Per Farm Unit ai Per CaDita a/Model FWO bf F Pt Incremsental IWO N! Incremental

(Rs) (Rs) (Rs) (X) (Rs) (Rs) (Rs) (X)

1. Heavy Soils 1,569 4,734 3,165 201 262 789 527 2012. Mixed Cropping 1,370 4,135 2,765 202 228 689 461 2023. Light Soils 1,358 3,893 2,535 187 226 649 423 1874. Mixed Cropping 1,477 5,504 4,027 273 246 917 671 273

With Vegetable(high income)

a/ Average family farm unit size has been taken as 1.0 ha, with a typicalhousehold size of six members.

it/ NFO - "Future without" project; FN - "Future with" project.

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The results show annual family income from farming for the "future with"project situation ranging from about Rs 3,890 to Rs 5,500 (or Rs 650 toRs 920 per capita) depending on the soil type and cropping pattern adopted;however, the income of many farm units, with holdings under 1.0 ha, will belower. Thus, the income level for project beneficiaries would still be verylow despite the substantial increase in farm income resulting from the intro-duction of irrigation.

8.04 The analysis shows that the income of most project beneficiaries canbe expected to remain below the poverty line. Thus, even though the projectwould assist farmers in increasing their farm produce and substantiallyimproving their income, a 1.0 ha farm unit (even if farmers adopted a highincome cropping pattern) may not be sufficient to produce a satisfactoryincome leveL In order to exceed the poverty line} it appears that manysmall and marginal farmers (land owners or tenants) would need to supplementtheir farm income by renting additional land or earn additional incomethrough off farm activities such as seasonal migratory labor.

Renavmet CA_acit of Farmers

8.05 For each farm model, project rent has been calculated (Annex 2, Table6). This is defined as the incremental gross margin less allowances fordepreciation, use of own resources (fau.ly labor and bullock owner), per-ceived risk and own management services. The estimates of project rent foreach type of farm model are shown in Table T-12. Under the assumptions usedin the analysis, the project rent does not exhibit significant variationsamongst the three agro-ecological zones. However, as the targetbeneficiaries would be small or marginal farmers, use of this indicator todetermine the farmers' capacity to pay is of limited value. The judgement onwhat portion of the project rent can be taxed will depend on the farmers'willingness to apply cash earnings to water in light of other often pressingdemands on their limited incomes.

Cagital and 0M Costs

8.06 To evaluate alternative cost recovery policies, the estimated costsof a typical tubewell unit have been separated into fixed and variable costs.Fixed costs are those costs which do not depend on the hours the well isoperated, such as investment costs and cost of permanent operating staff androutine maintenance. The variable costs include costs which depend on hoursof operation such as energy. Assumptions on annual costs are detailed inAnnex 2 and Table T-13, and are summarized below for 2,700 hours operationper year:

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New and Modernized Rehabilitated-- ---R/Tubevell Unit------

Capital Cost Annuity /I 47,600 24,000

Establishment (fixed) 5,000 5,000Maintenance (fixed) 2,500 7,500 2,500 7,500Variable Energy Costs lb 10,960 10,960

Total - 66s060 42e460

-la Calculated at 12Z iuterest rate over life span of various project works./b BSEB tariff rate of 0.35 Rs/kWh is used; the marginal rate is '.03 Rs/kWh.

Thus, a water charge, which correctly reflects the tubewell cost structureshown above, would consist of a volumetric component related to pumping hoursand a flat rate per ha reflecting the fixed cost component.

Present Cost Recovery

8.07 Background,. The policy of GOB is to tax the agricultural sector withdue recognition of low income levels in the rural areas. With respect tominor irrigation, the policy objective of GOB is to provide all farmers withstrong incentives to utilize irrigation in order to benefit the State throughincreased productivity and increased employment in rural areas. With theexception of cash crops, surplus incremental production reaching the marketwould be limited, since the siting criteria would ensure that farm holdingsreached under the project would be small and mDst of the additional produc-tion would be consumed by the farm family.

8.08 Present Water CharMes. The level of water charges for publictubQwells is set by GOB, with responsibility for collection (until April1986) vested in the BWDC (para 3.02). To date, water charges have been seton an ad-hoc basis, ranging from Rs 48/ha to Re 270/ha, related to crop,production season and the number of irrigations as detailed in Table T-14.Charges for tubevell water were last reviewed in December 1983 when levelswere adjusted between kharif and rabi crops to encourage greater utilizationof the irrigation service. If present water rates would be fully collectedfor all areas presently irrigated from public tubewells, they could % er onaverage, only about half of present OEM costs. However, present O6M costsare excessive because of overmanning of O&H activities and other inefficien-cies under the BWDC and O&M costs are incurred for those wells which are notoperable.

8.09 The BWDC has also performea poorly in collection of water chargesrecovering only about 20X of billings. This situation reflects the poorquality of irrigation service, primarily due to incomplete distributionsystems, lack of maintenance and irregular power supply. A combination ofthese factors has led to widespread farmers' distrust of public tubewellsystems. In addition, poor recovery has resulted from ineffective assessmentand billing procedures, lax collection of water charges and the inability ofBWDC to take appropriate legal action against defaulters. Furthermore, sincethere is no linkage in data collection between water charges, collection

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rates and costs of providing the irrigation service, there is no specificaccountability either withiu BIIDC or in GOB for poor collection. The generallack of responsibility for cost recovery, coupled with poor irrigation serv-ice and a demoralized management, has meant that a major effort will benecessary to improve the present situation. Nonetheless, for typical projectworks which are fully utilized, it is estimated that in an average rainfallyear, revenues based on the present level of water charges would range fromabout Rs 130/ha to Re 150/ha depending on farm model (Table T-12) and cover70-802-of the average annual 0&11 costs anticipated uuder the project (Rs185/ha). Inclusive of incremental land and agricultural sales taxes, totalrecovery would amount to Rs 215-330/ha and would thus cover the full 061costs and also a small part of capital-costs.

Cost Recovery Under the ProJeA

8.10 A primary concern c the GOB is that public tubewell irrigationdevelopment does not result in an increasing financial burden on the State.On the other hand, the cost recovery system and level of water charges shouldprovide sufficient incentive to all farmers to fully utilize the irrigationservice, particularly in the kharif season when farmers may tend to gamble onthe rain. In addition, given the number of farmers involved, the systemneeds to be simple to administrate. In formulating a cost recovery policy,the GOB will have to consider four separate but interrelated elements:(i) financial monitoring in particular to assess whether 061 costs arecovered by revenue from water charges; (ii) effective collection of watercharges; (iii) the method of charging; and (iv) the level of water charges.Of these elements, improvements in financial monitoring and collection ofwater charges can be undertaken as au immediate action glan since they do notdepend on project implementatiou. Changes in the method of charging for theirrigation service constitute a medium term action 2lan and will need to becarefully studied before basic changes are introduced, since it will dependon commissioning sufficient new, modernized or rehabilitated tubewells underthe project to demonstrate the improvements in irrigation service. While thepresent level of water charges together with indirect cost recovery throughincremental tax collections is adequate (para 8.09). on a continuous andregular basis, the level should be reviewed to ensure that recovery is com-mensurate with the cost of providing the service (para 8.17).

Immediate Action Plan

8.11 Financial Monitorina. To enable project management to financiallymonitor the cost of O&M, existing accouLting procedures in the MID need to bestrengthened. This will stem in part from the MID Management Study (pars6.11). A priority concern, will be to collect data to support the O&M budgetrequest of the MID to Government so that each public tubewell system can beeffectively and efficiently operated and maintained to such standards thatpredicted benefits can be achieved. In this respect, establishment, energyand maintenance costs would be accounted for uuder separate headings andprocessed so that O&M costs for individual tubewells and by tubevellclusters, O&M divisions and circles can be identified (para 5.14). Account-ing procedures would enable 0&11 costs for existing and new works to beseparated so that costs can be analysed. This will help the GOB to establishwhat portion of O&M costs can be attributed to inefficiencies in maagement

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and what portion relates to technical limitations. The GOB vould also havedata to help decide how much beneficiaries need to pay. Accounts would alsobe kept in such a way that GOBIKID can identify costs of managing improvedstandard and rehabilitated existing tubewells as well as the overall publictubewell irrigation program. With this information, the MID will have abasis for setting realistie O&H cost allocations for the various existing andnew works (para 5.02). Finally, the MID would collect revenue data fromwater charges on a seasonal basis so that revenue can be related to O&M costsof tubewell operation through an annual irrigation cycle. In this respect,during negotiations, an understanding was reached with GOB that, upourequest, it would make available to IDA review missions a statement of watercharge assessment and. revenue collected for public tubewells for the cropseason wbich had completed upto four months previous to the visit of thereview mission.

8.12 Assesement and Collection. The procedures followed under the BWDCfor the assessment, billing and collection of water charges are inefficient,bureaucratic and difficult for management to monitor. The preseut procedureshave been based on those used by Revenue authorities within the IrrigationDepartment for surface irrigation systems and have not been amended to meetthe specific requirements of public tubewells. In addition, the BWDC staffresponsible for collection have not been given the legal powers vested inIrrigation Revenue staff to collect arrears and thus appropriate actioncannot readily be taken against farmers who default in payment of watercharges. To correct these problems, the GOB has decided to undertake athorough review of administrative procedures to make assessment and collec-tion more effective and efficient and then continue such review on a regularbasis throughout the project period. Assessment and billing procedures willbe streamlined and simplified and responsibility for collection vested in theTW which has been given the power to enforce collection under the PublicDemand Recovery Act. In this respect, during negotiations, understandingswere reached with GOB that it would: (i) cause the TW to bill farmerspromptly for irrigation water to a timetable agreed with IDA; (ii) review andformulate procedures for improving the effectiveness and efficiency of watercharge collections; and (iii) entrust the TW with legal powers to enforcecollection of arrears of water charges.

Medium Term Action Plan

8.13 The improved technology of nev and modernized tubevells has thecapability to provide a reliable, timely and equitable irrigation service;rehabilitated tubewells will be able to provide an irrigation service whichwill show major improvements over the existing situation. For tubewells ofimproved design under the project, the quantity of vater supplied at the wellpoint would be the same as that reaching the valve outlets because conveyancelosses in pipes are near zero, and losses in the field channels below theoutlets would be low. Thus, there is a major difference between the servicefrom improved and old standard tubevell irrigation systems not only in theiumatitz of water that each farmer receives but also in the cualitv of theirrigatiou service. In addition, the improved tubevell irrigation technologywould provide an essentially 'on demand' irrigation service, since the farmerdecides whether to open his valve outlet when his rotation day comes. The

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variable component of the cost of providing water could theoretically there-fore be charged on a volumetric basis.

8.14 In addition to the technical considerations outlined above, the costrecovery system presently used in lihar does not sufficieutly consider physi-cal factors which affect the value of irrigation service provided. First,there are large annual and seasonal variations in demand and large differen-ces in water requirements for the main crops depending on climatic and soiltonditions. Thus, a system of charges based on unit irrigated area andprovision to charge per irrigation for some crops, has-encouraged farmerslocated at the head to take more water than they need to the detriment ofthose further away from the water source. Second, the quality of the irriga-tion service provided, varies considerably throughout the State, and since,at present, tubewell water charges are uiiform statewide, the level of char--ges has to take into account the value of the poorest service offered.

8.15 Method of Chraging. For reasons explained above, an appropriatewater charge system for project works could be different from that for exist-ing public tubewell systems. The improved technology and water managementarrangements would theoretically enable a water charge system for projectworks to be based on 'hours of use'. Such a volumetric charge system wouldbe basically different from the present statewide water charge system and theadministrative practicality of introducing a new system would have to bechecked and introduction would need to be cleared at appropriate levels ofGovernment. The cost recovery system should provide the opportunity forincentives to encourage farmers to fully utilize the irrigation service andtake account of repayment capacity of the target group of beneficiaries. Inthe short-run, and while the system is being improved and the TV is beingdeveloped as an elfective agency, the recovery system will of necessity needto be kept relatively simple. In the long-run, and to achieve the objectivesof efficient water use and equitable vecovery of costs, the GOB should con-sider a two (or more) tier water charge. First, there should be a kbascharge for the service which reflects the 'fised cost' of the service. Forimproved standard tubewells, this charge could relate to the average costs ofworks which enable all users to have an equal quality of service and agreater quantity of water because losses are reduced. Already, the State haslegislation to levy a 'betterment' charge which could be used as the proposedbase charge. Second, there should be a volumetric yater charge which wouldprovide revenue that is proportional to tubewell utilization. Since there isinsufficient information at present to enable GOB to introduce such a'tiered' water charge system, the Government will need to undertake a studyto formulate an appropriate policy and agree a timetable for introducing anynew charge system. In particular, the study would take into account theefficiency and reliability of the irrigation service as well as the quantityof water provided.

8.16 To achieve the objective of introducing improved water charges systemas outlined above, agreements have been reached with GOB that it would:ti) not later than December 31, 1987, prepare and furnish to IDA for itsreview and comment, draft terms of reference for a study aimed at estab-lishing an improved water charge system for new, modernized and rehabilitatedpublic tubewells under the project, and taking into account ID's comments,carry out the study; (ii) furnish to IDA for its review and comment, not

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later than December 31, 1988, the results of the study together with aproposed timetable for applying the new water charge system; and (iii) takinginto account IDA's comments on the recommendations of the study, duly imple-ment the new water charge system in accordance with this timetable.

Proiected Level of Cost Recover-

8.17 To avoid tubevell irrigation development unter the project becoming aburden on Government budget, an agreement has been reached with GOB that itwould set water charges on existing and new public tubewell systemsthroughout Bihar to ensure that revenue covers the average O&W c0ts and areasonable share of investment costs, taking into account the paymentcapacity of irrigation beneficiaries. To ensure that revenue collected issufficient to cover the costs specified in the above agreement, GOB wouldreview and, if necessary, adjust the level of water charges on an annualbasis since the cost of providing the irrigation service will vary each year(paras 5.02 and 8.11).

8.18 Given the present income levels of most project beneficiaries, theimmediate concern of GOB with respect to cost recovery levels would be toprice irrigation water at a level which would encourage full and efficientutilization of the irrigation service. Unless small or marginal farmers canachieve production predicted at full development, the chances of Governmentbeing able to progressively increase water charges above current levels wouldbe limited.

8.19 Since the exact level of water charges which would be applicable atfull development cannot be predicted at this time, revenue projections forproject works have been based on present water rates which may represent the'variable' portion of the eventual two-tier water charge system, when such asystem is adopted (para 8.15). The present values of recovery thus projectedare given in Table T-13. The rent recovery index is expected to range from12S to 16% depending on farm soil type and cropping patterns. The averagecost recovery is estimated to be between 34X and 41% of the annual totalproject cost. While it may be conceptually feasible to charge higher waterrates to project beneficiaries, the scope for achieving this is limited.Income levels of most farm families at full development under the projectwill remain close to the poverty level and it may not be practical to have adifferential water rate that reflects farm income levels.

IX. BENEFITS AND JUSTIFICATION

General

9.01 The provision of a reliable irrigation service would substantiallyreduce farmers' risk and produce incentives for complementary investmentssuch as higher input applications and gradual adoption of more advancedfarming practices. It would also lead to a more efficient utilization andmanagement of groundwater and power by the public groundwater sector. Thearea irrigated and families benefitting would be as follows:

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Works jj Command Area Farmi iN. of WU Served A(ha Families Seryed (No.)

New TW8 500 50,000 55,000Modernized TWs 1,000 100,000 110,000Rehabilitated TWs 3.tl2 297.000 330.00Q

Total 5,212 447,000 495,000

I/ Provision of 8 dedicated power supply is a prerequisite to achieving thebenefits for each type of project vorks.

9.02 The overall impact of the project in terms of increased agriculturalproduction and employment generated at full development is summarized below:

Increased foodgrain production (tons/year) ............ 247,000Value added to the local economy (Rs M/year) ar)........ 366Generated farm employment (M man/days)................. 8

9.03 Production Benefits. At full development, t'e project would increasefoodgrain production by about 247,000 tons/year (including about 146,000tons/year of wheat production), equivalent to an increase of about 94X overproduction without the project. Incremental rice and wheat production wouldbe mainly available for on-farm consumption for small and marginal farmers;any surpluses would be marketed within the State. Increased maize productionwould be marketed locally where it is a staple crop. Additional productionof pulses would help to alleviate a growing statewide scarcity in that com-modity, as it is the main source of protein for human consumption in India.

9.04 Emololment. It is estimated that labor requirements in agriculturewould increase by about 28Z as a result of the project from about 28.3 M toabout 36.3 M man-days per year at full development. Most of this labor wouldbe needed during the rabi season when labor is generally in surplus in ruralareas in Bihar, since witbout irrigation, most land would remain fallow. Theiacrease would be due to adoption of irrigation, increases in cropped area,more intensive care of crops and the higher labor needs for harvesting. Thelabor requirements would be reflected mainly in the reduction of the presenthigh level of unemployment and underemployment of family labor, particularlyon the smaller farms. Agricultural laborers and marginal farmers wouldbenefit from increased labor demand on larger farms and from non-farm employ-ment opportunities generated by the project due to increased demands formarketing, transport and processing facilities. About 5,000 jobs forunskilled labor would be created mainly for constructing the project works.

9.05 Beneficiaries. The project would directly benefit about 495,000 farmfamilies by project completion and indirectly, a large number of landlesslaborers. Most beneficiaries would be farmers with farms which would be toosmall to justify a private well. The project would thus help overcome exist-ing and potential inequities in the use of the key resources of groundwaterand irrigable land.

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Economic Analysis

9.06 The project consists of a large number of individual tubevell units.For the ecoaomic analysis, the 5,212 tubewells were classified under thefollowing categories: (i) 500 new tubevells; (ii) 1,000 modernized tubevellswith new pipe distribution systems; and (iii) 3,712 rehabilitated tubewells,of which 1,313 tubewells would have repairs of their existing distributionsystems, and 2,399 tubewells would have minor parts replacement, but theirexisting distribution systems would be left unchanged.

9.07 The benefit and cost streams assumed in the analysis are detailedin Annex 2 and presented in Table T-15. The benefit stream includesincremental agricultural benefits (net of on-farm-production costs). Theeconomic costs included: (i) all direct investments in tubewells and dis-tribution systems included in the analysis together with proportional invest-ments in dedicated power lines; (ii) proportional expenditure for managementimprovement and institutional building; and (iii) all OM costs for uew,modernized and rehabilitated tubewells included in the analysis.

9.08 Economic prices used in the analysis are detailed in Annex 2. Fortraded commodities (including fertilizers) prices were derived from IBRDprojected 1990 and 1995 world market prices with adjustments for quality,freight, insurance, handling, local transport and processing. For non-tradedcommodities, adjustments were made on the financial prices, to eliminate theeffect of direct transfer payments (taxes subsidies and credit). The shadowprice of agricultural labor was assumed at about 502 of the going wage ratesfor hired labor. Other production cost items were valued by employingspecific conversion factors to financial costs. Benefit build-up is theresult of the assumed phasing of areas to come under irrigation, a four yeartransition from present to future cropping intensities, and six year build-upof yields, input use, and adoption of high yielding crop varieties. The costof pumping has been based on the estimated marginal cost of electricity forBihar. The economic costs of all civil works, equipment, land acquisition,administration and engineering, have been derived from the financial onesadjusted by conversion factors (Annex 2).

9.09 Evaluating the costs and benefits over a 25-year period, theestimated ERR for the various project components are as follows:

'sgmDousat ERR(x)

New Tubewells 32Modernized Tubewells 42Rehabilitated Tubevells 29Overall Project 33

The results indicate the clear economic viability for all project components.The relatively high ERR is a result of a very short gestation period forworks on individual tubewell systems and, hence, only a limited time lagexists from the investment period until benefits start to accrue. It also

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reflects the substantial benefits (compared to the *without' project situa-tion) which would result from providing public tubewells with a powct supplyas assumed in sizing a tubewell command area (pars 9.11).

Sensitiviy, and Risk Analeyis

9.10 Proiect Sensitivity. To measure the impact of possible changes inthe economic environment on the project's stream of benefits and iosts,several sensitivity tests were performed. One test was to estimate thechange in ERR for the overall project and-main components against a range ofchanges in the key-assumptions; the results of this test are as follows:

- - Overall New Modernized RehabilitatedVariable Tested Pri"ct Tubewells TubeweUls_ ubewells_

- _ __ -------- _ - ---------- __ _____ -

Best Estimate 33 32 42 29Costs up by 50% 22 21 30 17Benefits down by 50% 15 15 22 9Costs up by 202, benefitsdown by 201 24 21 30 17Benefits lag by 3 years 19 19 24 16

Another test, undertaken on the overall project, was to calculate the switch-ing value of the assumed benefits and costs to assess what change in thesevariables would reduce the discounted present value of the net benefits (at122 discount rate) to zero:

Appraisal SwitchingVarisble Tested Value alue Change %

Net Incremental Benefits (Rs M) 6,340 2,250 -65Incremental Costs (Rs X) 2,250 6,340 183

9.11 In addition, the ERR of the overall project was tested for exclusionof dedicated power lines as a project component assuming that, as a result,power supply would be available for only 4-6 hr/day instead of up to16 hr/day. This would have the effect of reducing irrigation supplies toabout 30% of that assumed under the project and also seriously reduce thereliability and timeliness of the irrigation service. On the assumption thatpower supply was limited to 4-6 hr/day, the ERR of the overall project woulddecline to about 16%. However, this situation would also have serioussocio/financial consequences since full irrigation service could only begiven to about 30 ha of a public tubewell command area (100 ha). Thus,without dedicated power lines, there would be either (i) a substantialdecrease in projected farm incomes if irrigation supplies were to be spreadover 100 ha, or (ii) the command area would have to be reduced and about twothirds of the farmers who could be served under the project would beexcluded.

9.12 The above tests indicate that the economic viability of the projectwould be only mildly sensiti-e to possible changes in costs and benefits andonly large changes (and unlikely in the magnitude required) in the main

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assumptions would make the project economically unviable. The last testindicates the importance of dedicated power-lines to the project, withoutwhich, a drastic reduction in the ERR could be expected.

9.13 Proiect Risk. The technical risks are somewbat lower than wouldnormally be expected with an operation of this type because lessons learntfrom the UP Public Tubewell Projects (para 4.01) and the preparation of asimilar project in West Bengal, have helped to identify and minimize thepotential risks involved. The major problems with public tubevells in Biharhave been identified as incomplete works, management difficulties, inadequatepower supply, 0&M underfundiug, and iustitutional shortcomings related to theBWDC. Under the project, the GOB is taking substantial measures to eliminateor minimi$e these problems.

9.14 The main possible risk to project benefits would be under-utilizationof tubewell irrigation systems. However, apparent lack of demand with exist-ing public tubewells is primarily due to the present poor quality of theirrigation service. Proven designs used for new and modernized tubewellsunder the project are such that they would be able to provide a reliable,timely and equitable service. The rehabilitation of existing tubevells underthe project would enable substantial improvements over the existing service.Under-utilization of project wells may still occur due to lack of farmers'response to an assured irrigation service, particularly in the kharif seasonwhen farmers tend to gamble on good monsoon rainfall to save paying irriga-tion chargeu. This temptation is especially strong among the smaller andpoorer farmers for whom the chance of even small savings would be tempting.In this respect, the project provides for a comprehensive monitoring of suchmatters as farmer response and the water charge system so that, if necessary,corrective action can be taken.

Environmental Effects

9.15 The project areas have been under wet season cultivation for decadesand introduction of irrigation improvements in the dry season are notexpected to produce a significant change in environmental conditions. Waterfrom project wells would be potable and could have a health benefit by reduc-tion of the occurrence of intestinal diseases. The water delivery throughburied pipes is expected to minimize the potential hazards of malariaassociated with some surface irrigation schemes. NBuetheless, aa agreementhas been reached with GOB that it would take all measures as may be con-sidered necessary to minimize the risk of malaria, filaria and otherwater-related diseases within the project area.

X. AGREEUTS REACMID AND RECONMENDATIONS

10.01 An agreement has been reached with GOI that it would make theproceeds of the credit available to GOB on GOI's standard terms and arrange-ments for development assistance to the States (para 5.02).

10.02 Agreements have been reached with GOB that it would:

(a) provide appropriate staffing, facilities, services and the otherresources required to carry out effective agricultural extension,

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satisfactory to IDA. throughout the districts of the project area.and ensure that such extension service would be fully operable andstaffed in a district before pz'iject works on new. modernized andrehabilitated tubewells within such district are energized (para2.18);

(b) provide dedicated 11 kY feeder lines to each public tubewell within acluster to give a power supply from a conductor which would beexclusively used for public tubewells; provide project tubevells witha minimum of 16 hours of power supply per day at peak demand periodswith a voltage fluctuation of not gteater than +6Z; and energize eachnew, modernized or rehabilitated project tubewell unit within twomonths of its completion (para 4.24);

(c) locate. plan. design and construct the project works, in accordancewith standards and criteria satisfactory to IDA (para 4.38);

(d) by December 31. 1989. prepare and furnish to IDA for its review andcomments, draft terms of reference for a mid-term review of theproject and, taking into account IDA's comments, if any, carry outthe review and furnish a report summarizing the results to IDA byJune 30, 1990; and thereafter, carry out the required adjustments tothe project subject to prior agreement with IDA (para 4.39);

(e) promptly provide resources and funds to execute the project inaccordance with the implementation and expenditure schedules for theproject period. and to operate and maintain adequately and effi-ciently the public tubewell systems under the project (para 5.02);

Cf) cause the MID and BSEB to: maintain separate records and accountsadequate to reflect, in accordance with sound accounting principlesand procedures consistently applied, its resources, expenditures andoperations related to the project; furnish to IDA copies of accountsand financial statements for each year. certified as to theiraccuracy and authenticity by an independent auditor acceptable toIDA. not later than nine months after the end of each fiscal year;have accounts and financial statements related to the project.including the Special Account. for each fiscal year audited annuallyby independent auditors acceptable to IDA; furnish to IDA immediatelyfollowing its finalization. the report of such audit in such detailas IDA shall reasonably request; furnish to IDA any other informationas it shall reasonably request; and enable IDA's representatives toexamine all records pertaining to the Credit (para 5.13);

(g) cause the MID to: maintain separate records and accounts for state-ments of expenditure; retain such records and accounts for IDA reviewfor at least one year after IDA has received the project audit reportfor the fiscal year in which the last withdrawal from the credit wasmade; and ensure such separate accounts are included in the annualaudit and that the annual audit report contains a separate opinion asto whether such expenditures were used for the purposes for whichthey were provided (para 5.14);

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(b) cause the MID to: maintain separate accounts for the OWM expendi-tures of public tubewells throughout the State in such a manner thatthe establishment, energy and maintenance costs can be separatelyidentified; and make available such accounts and financial statementsto IDA for inspection during project review (para 5.14);

(i) maintain Project Co-ordinating and Accounting UWits within the TWunder the direction of suitably qualified and experienced officers(para 6.04);

(Q) sanction and fill staff positions within the TW and provide necessaryfunding, in accordance with an organization structure and staffingschedule acceptable to IDA, to enable the TV to carry out theproject; and train such staff so that the TV can implement theproject and operate and maintain the project works (para 6.10);

(k) undertake a Management Study of the TW in accordance with terms ofreference satisfactory to IDA; furnish a report summarizing theresults and recommendations of the study to IDA for review by Septem-ber 30, 1987; and taking into account IDA's comments, carry out therecommendations of the study according to a timetable satisfactory toIDA (para 6.11);

(1) pcepare and furnish to IDA for its review, by March 1, 1987, draftsof comprehensive design and O0M manuals, and taking into accountIDA"s comments, adopt and utilize the manuals in the planning, designand operation and maintenance of public tubewell systems (para 6.18);

(m) prepare progress reports on a semi-annual basis for the periods AprilI to September 30 and October 1 to March 31; submit such reports toIDA within two months after the end of each reporting period with thefirst report submitted by May 31, 1987; and prepare a project comple-tion report, no later than six months after the closing date of theproject (par. 6.19);

(n) not later than March 31, 1987, prepare draft work plans and schedulesfor M&E activities under the project; taking into consideration IDA'scomments, carry out the work plan; and commencing July 1, 1987,review the work plan annually in consultation with IDA and, if neces-sary, revise the work plans accordingly (para 6.20);

(o) carry out a baseline agro-economic survey for the project with termsof reference established in consultation with IDA; furnish to IDA forits review and comments, by July 31, 1987, a report sumarizing theresults and conclusions reached under the survey; and taking intoaccount the IDA's comments, carry out any needed adjustment in fur-ther survey programs in such detail as IDA may reasonably request(pars 6.22);

(p) not later than Decemner 31, 1987, prepare and furnish to IDA for itsreview and comment, draft terms of reference for a study aimed atestablishing an improved water charge system for new, modernized and

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account MDA*s comments, carry out the study; furnish to IDA for itsreview and comment, not later than December 31. 1988. the results ofthe study together with a proposed timetable for applying the newwater charge system; and taking into account IDA's comments on therecommendations of the study, duly implement the new water chargesystem in accordance with this timetable (para 8.16);

(q) set water charges on existing and new public tubewell systemsthroughout Bihar to ensure that revenue covers the average O&M costsand a reasonable share of investment costs, taking into account thepayment capacity of irrigation beneficiaries-(para 8.17); and

- (r) take-all measures as may be considered necessary to minimize the riskof malaria. filaria and other water-related diseases within theproject area (para 9.15).

10.03 During negotiations, understandings were reached with GOB:

(a) on the terms of reference of the management study (Annex 4) whichspecify the financial monitoring requirements under that project sothat sufficient information will be available for IDA to review theannual budget requests and provisions for O&M within the TW (para5.02);

(b) that upon request, it would make available to IDA review missions astatement of water charge assessment and revenue collected for publictubewells for the crop season which had been completed upto fourmonths previous to the visit of a review mission (para 8.11); and

(b) that it would: cause the TW to bill farmers promptly for irrigationwater after the service has been provided to a timetable agreed withIDA; review and formulate procedures for improving the effectivenessand efficiency of water charge collection; and entrust the TW withlegal powers to enforce collection of arrears of water charges (pars8.12).

10.04 With the above agreements and understandings, the project would besuitable for an IDA credit of US$68.0 M on standard IDA terms. The borrowerwould be the Government of India.

INDIA

BIHAR PUBLIC TUDEWELL PROJECT

Ajricultural Production - The State of Bihar

1960161 _97071 _ 1980/81 1982183Area Production Yield Area Production Yield Area_ Production Yield Area ProductLon Yield

('000 ha) ('000 tons) (kg/ha) t'000 ha) ('000 tons) (kgiha) ('000 ha) ('000 tons) (kg/ha) a) ('000 tons) (kg/ha)

Cereals

Rice 5.240 4,544 867 5,112 4,339 849 5,491 5.476 997 4,498 3,065 681Wheat 658 433 673 1,230 1,192 969 1,803 2,825 1,567 1,734 2,427 1.400larley 393 204 519 284 14 646 129 100 775Maize 805 821 1,020 991 1,113 1.123 890 1,036 -1,164 799 937 1,173Ragi 210 105 500 177 91 514 177 114 644Bajra 6 3 500 14 8 571 13 7 538Jowar - - - - - - 9 5 556 101 67 663Small Millets 83 _ 2bl 922 224 _ 97 433 149 _ 349 268 jI 121 1i 451. IfTotai Cereals 7,595 6,381 840 8,002 7,004 875 8,661 9,635 1.110 7,400 6,617 894

Pulses

Gram 542 324 598 244 174 713 186 140 753 192 141 734Other Pulses 1.604 766 478 J389 797 574 1.812 _607 335 1003 569 567

Total Pulses 2,146 1,040 50S 1,633 971 595 1,391 747 5317 1,195 710 594

Oilseeds

Linseed 109 31 284 56 43 768 97 41 422 88 44 500Rapseed and Mustard 88 32 364 87 52 598 80 35 438 86 45 523Nigerseed 44 14 318 52 22 423 44 16 364 - - -Other Oilseeds _ - _-- - - 28 18 643 65 _2 538

Total Oilseeds 241 77 320 195 III 600 249 110 442 239 114 477

Other Crops

Jute 147 850 2/ 412 142 788 2J 402 155 b'1 2 380 120 743 _1 410Sugarcane 186 6,027 32,403 Ib2 6,209 38,327 III 3,480 31,350 130 4,464 34,340Potatoes 76 606 7,974 101 1,122 11,108 132 1,055 7,992 132 1,248 9,455Mecta _ 38 13.23 7 _ 3b_ 165 __83 35 184 5.257 27 -133 4926Total Other Cropb 447 - - 441 - - 433 _ 409 _

Grand Total 10,429 - - 10,271 - 10,734 - 9,243

t Relates to "all othler cereals", including. b.n'ev. ragi and ba]ra./ '000 bales of 180 kg eacn.

Source. DOrectorate of Economic and Statibtica, G01.

-53-

Table T-2

INDIA

BTIAR PUBLIC TUBEWELL PROJECT

Gross Irrinated Area - The State of Biba

-- ------- S o ources - -- |- - -Total Irr-

Districts Caaals Tanks LUbAMweLs Other Wells Other S3ourees iisated AMeEgohLo-1- Z000 ha) Q ('OQO bal z t'000 ha) -L ('000 La) Q 2°lM Q s

Patna 57 34.1 2 1.2 66 39.5 7 4.2 35 21.0 167Nalanda 17 8.2 3 1.5 83 40.1 50 24.1 54 26.1 207-Gaya 48 13.0 2 0.5 60 16.2 20 5.4 240 64.9 370Navada 8 5.8 1 0.7 28 20.3 7 5.1 94 68.1 138Auraugsbad 93 49.7 - 19 10.2 3 1.6 72 38.5 187Bhojpur 200 62.7 14 4.4 34 10.7 1 0.3 70 21.9 319Robtas 368 77.3 11 2.3 68 14.3 7 1.5 22 4.6 476Saran 1 0.9 4 3.7 41 38.0 42 38.9 20 18.5 108sivan 21 19.8 6 5.7 58 54.7 17 16.0 4 3.8 106Gopalganj 53 53.5 - - 29 29.3 12 12.1 5 5.1 99Champaran East 48 39.3 2 1.6 61 50.0 1 0.8 10 8.2 122Champaran West 137 89.0 - - 12 7.8 1 0.6 4 2.6 154Musaffarpur 1 1.3 1 1.3 70 92.1 - - 4 5.3 76Vaishali 1 2.1 2 4.3 34 72.3 8 17.0 2 4.3 47Sitasmarhi - - 2 4.9 33 .80.5. 1 2.4. 5 12.2 41Darbhanga - - 5 15.6 18 56.3 1 3.1 8 25.0 32Sfhastipur - - 6 8.2 56 76.7 3. 4.1 8 11.0 73Hadbubani 13 29.5 10 22.7 14 31.8 1 2.3 6 13.7 44.Begusarai 1 1.6 - - 50 82.0 2 3.3 8 13.1 61noughya 73 40.5 3 1.7 61 33.9 11 6.1 32 17.8 180IBagalpur 72 45.6 7 4.4 11 7.0 9 5.7 59 37.3 158Sauthal Parganas 10 18.9 20 37.7 2 3.8 12 22.6 9 17.0 53Saharsa 84 56.0 4 2.7 45 30.0 3 2.0 14 9.3 150Purnua 79 71.2 - - 28 25.2 - - 4 3.6 111Batihar 13 25.0 2 3.9 28 53.8 - - 9 17.3 52Hazaribagh 1 4.2 4 16.7 1 4.2 14 58.3 4 16.6 24Giridib 2 14.3 3 21.4 1 7.1 6 42.9 2 14.3 14Dhanbad - - 2 66.7 - - 1 33.3 - - 3Ranchi 9 20.9 1 2.3 3 7.0 20 46.5 10 23.3 43Palaman 10 12.7 9 11.4 5 6.3 17 21.5 38 48.1 79Singhbhum 11 64.8 2 17_.6 - - - _ 3 17.6 17Bihar 1,431 38.6 129 3.5 1,019 27.4 277 7.5 855 23.0 3,711

Source: Directorate of Statistics and Evaluation, Bihar for the year 1978/79.

-54-

Table T-!3

INDUMHAR PUBLIC TUIEWLL PROJECT

C,imatolo8icsl Data

Part A. Mean-Honthlv Rainfall in the Districts of bihar (mm)

Districts June ulY AuS. Sept. Oct. Nov. Dec. Jan. Feb. March April bite Annual

Patna 117.2 251.9 296.2 198.3 46.6 8.4 3.5 14.7 20.0 7.0 7.0 23.0 993.8Nalanda 120.9 268.8 287.4 185.1 41.5 11.1 3.5 13.7 19.3 8.4 9.0 21.3 990.0Gaya 124.1 314.6 345.6 201.3 46.1 14.1 4.1 20.3 25.0 10.9 6.8 17.9 1,130.8Navads 127.0 267.7 313.0 188.7 50.5 11.2 3.5 16.6 26.1 11.8 7.8 23.6 1,047.5Auraugabad 141.6 333.5 390.3 219.5 51.6 12.8 4.2 21.9 25.8 13.5 6.3 15.7 1,236.7Bbojpur 128.2 285.9 313.2 211.0 48.7 8.7 5.3 18.3 23.7 8.4 .6 19.0 1,077.6Robtas 124.2 308.5 354.4 218.0 50.2 9.4 5.6 19.6 24.7 10.0 6.6 12.6 1,143.8Saran 142.7 296.6 291.4 222.5 49.8 7.0 3.6 13.2 16.4 7.8 8.8 33.5 1,093.3Sivan 133.4 296.5 290.1 207.9 48.5 5.8 4.9 16.9 18.5 9.1 8.9 31.3 1,OJ1.8Gopalganj 171.0 318.2 296.6 231.6 60.2 4.5 2.6 16.4 17.5 9.5- 12.5 41.8 1,184.4Champaran East 217.7 365.9 326.5 252.5 60.2 6.6 3.3 13.9 17.6 12.3 19.1 60.7 1.356.4Champaran West 235.2 403.2 252.7 251.3 61.1 5.8 4.1 1V.2 18.9 13.0 20.1 69.0 1,447.6Muzaffarpur 172.2 301.1 297.0 241.2 57.6 5.1 2.6 13.8 19.7 7.0 15.8 47.8 1,180.9VaisLali 152.1 256.5 294.5 204.0 47.7 7.8 3.6 12.2 18.3 9.5 7.7 28.4 1,042.3Sitamarbi 210.5 324.0 300.5 231.9 56.7 6.4 3.1 12.0 15.6 13.2 21.7 70.8 1,266.8Darbhanga 179.4 303.5 312.5 225.5 55.1 7.8 3.0 11.0 14.5 10.5 21.0 60.4 1,202.2Sawastlpu: 162.3 286.2 299.3 244.7 56.6 8.7 2.8 13.2 19.3 8.5 17.9 49.1 1,168.6Madhubani 213.6 333.6 293.9 238.6 69.4 8.8 2.1 10.2 13.5 12.3 27.7 83.6 1,307.3:3eguearai 178.1 271.' 324.9 243.8 57.1 11.9 3.3 12.9 21.3 12.5 18.0 46.5 1,201.6Monghya 181.2 295.3 312.7 218.4 72.3 10.3 3.5 14.8 22.0 12.3 15.6 48.1 1,206.7Bhagalpur 180.2 288.9 273.2 204.1 81.7 9.8 2.0 13.6 21.4 12.5 20.3 59.2 1.166.2Santhal Pargana 224.9 326.5 317.5 237.0 98.5 13.0 2.7 13.0 21.8 16.7 25.5 80.1 1,377.2Saharsa 246.1 349.6 295.3 246.4 73.0 10.3 2.3 8.0 13.8 12.0 28.8 100.3 1,395.0Purnea 307.6 423.9 367.0 279.6 85.0 8.0 2.5 9.0 16.0 13.5 40.9 128.0 1,699.0Katihar 211.6 219.3 307.1 260.3 99.1 8.6 2.2 8.4 19.1 10.2 13.0 92.1 1,358.0Hazaribagh 173.8' 339.4 351.9 210.6 71.1 15.9 4.5 22.5 31.9 18.7 11.5 32.7 1,284.5Giridih 164.7 316.6 301.2 199.1 83.1 12.1 4.1 22.6 27.6 15.9 18.1 45.5 1,210.8Dhanbad 192.6 345.5 323.2 212.1 33.5 10.5 4.2 14.9 25.6 19.8 17.6 51.1 1,310.7Ranchi 205.8 395.5 386.6 220.9 92.2 18.5 5.6 27.1 41.0 24.0 19.5 45.4 1,482.6Palaman 165.4 367.0 395.1 212.6 61.8 17.1 5.6 27.3 35.5 19.5 9.6 18.6 1,335.0Sinphbhum 212.0 279.8 352.0 210.0 51.9 18.6 4.2 20.6 33.4 12.8 28.8 72.2 1.434.6Bihar 182.1 330.4 330.3 222.2 69.2 11.6 3.9 17.2 24.4 14.6 17.1 49.1 1,271.9

Part 8. Mean Daily Maximum asd MInimum Temperature and Relative Humidity

Bihar Plains Bihar PlateauMaxLmum Minimum Relative Maximum Minimum Relative

!!o&t-h Temperature Temperature Humidity Temperature Temgerature HumidityCo Co 0 at 08:30 Co ' . at 08:30

January 23.2 9.3 75 23.1 10.2 73February 25.6 11.6 72 27.4 13.6 67March 32.1 16.1 57 33.2 17.6 48April 37.1 21.5 52 38.0 22.6 43May 37.1 24.7 53 39.1 25.6 70June 34.8 26.1 75 35.7 26.1 78July 32.5 26.2 82 31.6 25.1 82August 31.9 26.0 83 30.9 24.8 82September 32.0 25.5 81 31.0 23.9 82October 31.3 21.6 72 30.5 20.4 77November 27.9 14.5 68 27.4 14.4 72December 24.2 9.8 69 24.4 10.1 72

Source: ICAR/ABRD National Agricultural Research Project; Bihat, 1982.

INDIA

,RII PUULIC TUBEWELL PROJECT

Groundwater Balance for Proiect Districts

Proiect Develp,2entPresent Situation Present Total Annual Abstraction Total Net With ProjectNet Annual Met Annual Balance for Stage of Project Other All Public Net Annual Annual Net Aeo*ualDistrict Area Reharte Abtaction Ij Deve4onment Develoment We+e I/ W_l3s 2/ tu*eaels, Abstra6tion f Abs;r4otion S/ Abstractign J/

(1) (2) (3) (4) (5) (6) (7) (8) (9) (i0)

!1 Bihar

Wi. Cbamparan 4,862 1.370 168 1,202 12 56 14 70 42 210 15Gopalganj 2,019 584 325 259 56 46 17 63 39 364 62Sivan 2,230 509 224 285 44 23 21 44 26 250 40Saran 2,623 680 365 -315 54 79 21 100 60 425 63E. Champaran 4,334 1,116 387 729 35 104 19 123 74 461 41Sitaparbi 2,659 567 273 294 48 69 24 93 56 329 58Iuzsffarpur 3.160 857 313 544 37 104 16 120 72 385 45Vaishali 2,019 529 230 299 43 45 14 59 35 265 50ttadhubani 3,526 803 144 569 18 83 13 96 58 202 25Darbhanga 2,296 585 167 418 29 95 5 100 60 227 39Sarmastipar 2,856 668 338 330 51 97 18 115 69 407 61Beguserai 1,899 717 322 395 45 128 7 135 81 403 56Saharsa 1 5,885 1,199 356 843 30 11 13 24 14 370 31Madhepura 1 718 152 566 21 - 14 14 8 160 22 tRhagaria 1,480 568 87 481 15 69 13 82 49 136 22 1Purnea 2,985 3,443 264 3,179 8 11 30 41 25 289 8Katibar 3,208 917 188 729 20 36 - 36 22 202 22S. Bihar

Bhojpur 4,024 1,126 348 788 31 217 23 240 144 492 44Patna 3,182 776 325 451 42 295 10 305 183 548 65Nalanda 2,346 559 302 257 54 96 10 106 64 366 65Munger 6,447 1,454 225 1,229 15 103 3 106 64 289 20Bhagalpur 5,654 1,382 254 1,128 18 113 13 126 76 330 24Navada 3,648 415 122 293 29 68 4 72 43 165 40Gays 4,288 1,311 536 775 41 116 26 142 85 621 47Aurangabad 4,409 726 134 592 18 25 14 39 23 157 21Rohtas 7,296 2,066 374 1,692 18 118 27 145 87 461 22

I/ Existing private and public groundwater development.V Rehabilitated. modernized and new public tubewells under the project at full utilization (assuming 3000 hrs/year).V 599 existing public tubevells not connected to dedicated feeder lines._/ Assuming 402 of the groundwater abstracted is recharged.S Column (3) + (9); excluding private tubevell development during project period. a6/ Column (10) divided by column (2).

-56- te S-5

818Ul PUBI.IC TUDEWEL.L PROJECT

CrOnnina Patterns by Asre-Climatic Zones 11

.. . - .....one I ,...

IMIPa. PresentUant 10 2/ - N2/Crop ha Crop ha

Kbarif Paddy 60 Paddy 72tharif maize 15 Maize 20Kharif- Jute S Jute 4Kharif Vegetable 3/ 5 Vegetable 21 48abi Wheat Is Wheat 50Rabi Pulses 51 4 Pulses 01 10Rabi mustard 2 Mustard 3Rab._ Moong 2 Vegetable #f 2Zaid - Vegetable I 1Zaid Moong 3Perenniel - Sugarcane --5Total Crop Area 108 174

- _ _ _ ~~~Zone II

seaso Preent and FWO 21 FW 21Crop ba Crop ha

Rharif Paddy 65 Paddy 71Rharif Maize 11 Kaize 15Rharif Jute 7 Jute 12Kbarif Vegetable O 4 Vegetable 1/ 2Rabi Wheat 12 Wheat 50Rabi Pulses 2J 4 Maize 7tabi Mustard 4 Pulses 1 11Rabi Moong 4 Mustard 4Rabi - - Vegetable 6/ 3Zaid - - Vegetable if 3Zaid - Moong --Total Crop Area 111 181

Zone III

Season Present and FIW 2/ FW2/Crop ba Crop ha

Kharif Paddy 60 Paddy 60Rbarif Maize 16 Maite 32Kharif Pulses I/ 2 Pulses O./ 4Kharif Jute I Jute 2Eharif Vegetable J/ 1 Vegetable i 2Rabi Wheat 15 Wheat 50Rabi Pulses j 10 Maize 11Rabi Mustard I Pulses >| 10Rabi Moong I Mustard 2Rabi - - Vegetable §J 2Zaid - - Vegetable if 3Zaid - - Moong 3Perennial - - Sugarcone -3Total Crop Area 107 184

jJ Cropping patterns used in the economic analysis; each model representsa nat area of 100 ha irrigated by a typical public tubevell. Crop yieldsaid input assumptions are given on Annex 2, Table 3.

21 IWO - future Without" Project; FW - "Future With" Project. It is assumed

that present and FWO tubewells which are operable would irrigate only 15 ba inboth kharif =ad_rabi seasons following existing cropping patterns similar tothe pattern of PW new or modernized tubewells.

3J Mainly Aubergin and Chili.if Mainly Arbor.

Ki Manly Gram./ Mainly Onion.

INDIA

BIHAR PUBLIC TUBENELL PROJECT

Performance of Public Tubevells in Biaar

UtilizationTubevells With Irrigation Against

81. Drilled Energized Distribution Working Potential Total Area PotentialNo. Year TubevellsTs Tubevells Created IaW reed^

(No.) (NO.) (NO.) (NO.) (w ha) (x be) (l)

1. 1974-75 3,112 2,977 1,915 2,491 0.224 0.1390 622. 1976-76 3,479 3,014 2,386 2,882 0.288 0.1735 603. 1976-77 4,284 3,519 2,811 3,124 0.336 0.1821 544. 1977-78 4,690 3,744 2,971 3,260 0.394 0.1396. 355. 1978-79 4,980 3,968 3,087 3,365 0.419 0.1037 266. 1979-80 5,143 4,419 3,167 3,837 0.439 0.1300 307. 1980-81 5,221 4,606 3,331 3,469 0.465 0.0775 148. 1981-82 5,311 4,652 3,351 3,364 0.488 0.0830 179. 1982-83 5,311 4,853 3,411 3,452 0.491 0.0997 2010. 1983-84 5,311 4,930 3,442 2,812 0.500 0.0497 1011. 1984-85 5,311 4,941 1/ 39477 AV 2,167 0.504 0.0327 8

Source: Bihar Water Development Corporation Ltd.

.J 4,941 wells recorded as being energized; as of September 1985, 4,172 wellswere capable of being supplied (see Chart C-1).

LI Only 2,623 wells have complete distributiou systems (Chart C-1).

MhDIABIHAR PUBLIC TUBEWELL PROJECT

Cost Estimates by Project Components(Rupees '000)

DEDICATEDzi0>"t8 R~~~OV SWLY

DlSbRIBUTIOIJ (4712 fPSsiceiSYSTENS ON REHAIL17ATIOd OF EI5STINO AND Contirncies

NEi IJlBEIELL EXISTING EX,IJi(N6 TUDELL 50 NEU KIAM6EMEN!-SYSTElIS TUP; iELL5 SYSTEtIS TUWIJLLS) IIPROVEIT Total Z Amunt

I. 1VESTIMEOT CWSS 1

A. SERvIiBES 7 19560 O,784.0 6`9,1,.6 43s117.4 11694.0 17o.588.0 5.3 9284.6B. EDUiFENT 21060.0 2'000.5 29'046.0 5L,375.8 22,579.0 127,060.B 5.4 68'53.0C. MATERIALS 95,125.0 133,15P.0 14,539.2 173o420.4 - 416o242.6 9.0 37,257.4D. LAND 7,195.C -2.000,0 19411.0 5.0 959.8E. LANIR - - - 19,6110. - 19:611.5 8.7 1,704.3f. CIVIL MOR¢S 43,010.0 7s i1. '90.5 46,935.0 184t693.5 5.0 9,234.7

-_ - ___ __ -__--- _-- _------ -------------------- -- - ---~~ -------- ~~~ ----- ~~ - ~ -- ~ ~ - - -----

Total IlNJESTMENT COSTS 205.06.0 228.732.0 139.841.3 288,525*1 81.208.0 9434391.4 6.9 65.293.8Total SELINE COSTS 205.0B5.0 220$732.0 1359841.3 2'86525.1 81208.0 943,391.4 6.9 65.293.8

PhYslcal Conlinsewcles 131.66.9 179i66.5 6,992.1 23.305.0 44060.4 65,293.8 0*0 0.0Price Ccjtjngene±es 76,043.5 88,107.5 280?17#7 77v6A1,5 16t979.2 287,579.3 6.6 18,887.3

Total JECT COSTS '944395.2 3341509.0 1751i,51,0 3&9,511.6 102J247.6 1,296,214.4 6.5 84,161.1

Taxes 8.338.1 .i,o14.4 3,'65.7 15,163.2 U1 t 383,4 39,664.9 7,4 24936.iForeign Exchame 56'310.8 11i.731.5 594.4 L12 ,772._ - 184o409,1 8.8 169260.4

l/ Detailed quantitie3 and Ceosts by project components are given in Annex 3, Tables 1 to S.

S.1

INDOABIA PUBLIC TUBEWELL PROJECT

Annual Epi iture Scbedule(Rupees '000)

lase Costs t.1

1 2 3 4 5 6 7 (Rs 'OQO) (U S'00)

A. NEU TUDEVELL SYSTEMtS - 4,596.2 28,?11.9 28,794.9 40:94.4 40,994.4 40,994.0 205,05.0 15,775.6B. IWRiUZED DITRIBUTICI SYSTEMi I EXIOTI TUWVLLS - 13i,63.9 324O14.1 45,770.3 45i770.3 4S5770.3 45,770.3 22S032. 17P594.8C. REHAIXITATION O EXISTINi TUWkELL SYSTEMS it 137.3 34,738,3 36,353.5 &;,9379 21.234.0 - 139441.3 10,757.0lt. DEDICATED FMi SUMPPLY 04712 EXISTING AUD S0t NEf TUSKtLS 404654.4 45,070.0 509015.4 54P520.5 60S426.4 21A978.1 15r60.3 2884251 22#194.2E. IWl6ENET IIW0ERWENT S*i32.0 b475.0 295277.0 4,902.0 5,374.0 5.582.0 3d14?0 1 81208.0 64246.8

Total ASLINE CGSTS e5t20.7 144636.! V764371.9 :63;365.9 1734Ma.7 114,324.4 185,673.5 943,391.4 72958.6Phsicil tontinseies A.¢15,1 9e361.3 11,67 P.0 l538.4 .2t361 . 8W25.2; 7#616.3 6523.B 5s022.6Frice Ccr.tinsenc:es 2t437.! 164567.1 35!482.8 IPi59.1 i9P818.9 554685v0 584.8.6 237,529.3 l2.117.6

Total ROJECT COSTS 2*,073,0 1',50P4.8 22304,7 223,663.4 25ot079.0 178#235.2 172144.4 1#29214*4 00,703.8

Taxes 2,410.2 5#26:.8 5.753.1 7.015.2 St.'25.6 553.44 456 39,64.9 39051. 1Foreisn Exgciwe l545,C 11,094,0 3"3; M.9 1, 861.5 37,8:1.7 37,681.6 39,027.5 184,409.1 141185.3

I/ Detailed annual phasing of costs for project components are given in Annex 3, Tables 1 to 5.

-60- akzle T-2

BDIAM PUBLIC TUBoEVLL PROJECT

A. Prooosed Credit Allocation

Proposed Allocation S of Expendituresta.rL A&sa gf Credit to be Fgnaed

-US S ii-

1. CiiWok L(a) New Tubevells 5.t I 752(b) Modernized Tubevell, 5.6(c) Rehabilitated Tubevells 5.2 }(d) Buildings 3.3 )

2. Power Supgl (tubewell energization) 20.1 } 75S

3. MatiaLs and inmmnt(a) PVC Pipes and fittings 16.0 }(b) Pump Units and ancillaries 3.6 1 1002 of foreign expendituresCc) Steel pipes, fitting and 1 1002 of local expenditures

casings and general steel items 2.4 ( (ex-factory costs) and(d) Other Equipment 3J 4.1 } 752 of local expenditures for

I other items produced locally.4. Mana2ement Imwrovements(b) Traiaing; study tours; )

Monitoring and evaluation; 0.5 1 1002Consultancies and Studies I

5. Unallogated

Total 68.0

11 Excluding materials and equipment under Catergory 3._I Equipment for Management Improvement Component.

S. Estimated Scbedule of IDA Disbursements

IDA FY and Semester Semester Cumulatia J/------ Us$-------

1987 1st 0 02nd 1.9 1.9

1988 lst 2.8 4.72nd 3.4 8.1

1989 1st 4.7 12.82nd 4.8 17.6

1990 1st 6.1 23.72nd 6.1 29.8

1991 lst 6.8 36.62nd 7.5 44.1

1992 lst 6.8 50.92ad 5.4 56.3

1993 1st 4.7 61.02nd 4.1 65.1

1994 lot 2.9 68.0

Start Date: November 30, 1986Completion Date: November 30, 1993Closing Date: March 31, 1994

Ij Based on disbursement profile for Bank - group supported irrigationprojects is India.

-61 -- bL -

ITRU?j~tC UVWLL ?ROJBCT

laAtUigR !Q1kL3&iL jrs j , 4 5 6

A4miuistration Ui -Project Co-otdination- Unit I 1 1 I Project' Accounts Unit I I 1 I Invest igat ioni Planningand Design unit j*1 *1 Procurement unit I*1 1 1 1 .Training andll6E wnit -1* *1 1 1 1 1Quality Control Unit - 1

headquarters unit 2* 2 2 2 2 2 2 2Workshop Division 2l 2* 2 2 2 2 2 2 2Drilling Division 1. 1I* 1 2 *2 2 2 2 2ElectricftMechancial Unit _' / 2 * 2 2 2 2 2 2 2

Construction and MMk Circles 6 * 6 * 6 6 6 -6 6 6Construction Divisions 6 #f 6 * 6 6 6 6 6 60ok Divisions 25 V 25 25 25 25 25 25 25Rehabilitation Works Sub-Division 5/ - 8 12 13 11 8 - -

Units marked with asterisk exist under present organi-ation but are not fully staffed to

project requirements.Organization requirements estimated from construction and Ok workload and Dorms for fullystaffed and effectively managed work units.

.IAttached to the CE Regional headquarters and operating out of the regional workshop ~-omplex.~IConsisting of AE; two senior mechanics; four mechanics; and supporting staff.Pre-project, three construction divisions are not staffed for lack of construction activities.

~JBased on miscellaneous repair workload per sub-division of Its 250O000Iyear, excluding costs ofequipment; i.e. estimate cost of engineering and adminif;ration (Annex 3, Table *. Thenumber of rehabilitation sub- divisions will vary depending on workload under each Iirc 1 e inany year. Repair and replacement works are expected to continue in years 6 and 7 under GOBfunding an existing tubevells not covered under the project.

-62- ab-lIs Il

INDIA

BIHAR P1RLIC TUBEVELL PR0JE$T

Sta£ff 8n cheduile

Existiug Staff Staff AeouiredlPwoiect YearItem keaizauaien BWDC 1/ .1L 2_ 3 4- -5 6

_____________~~~~~~___ _ _ 3__ __ _ ._ _ L ____ _ _ __

A. Sunervisorv/Technical

(i) Chief Engiueer 1 3 3 3 3 3 3 3(ii) Superiatending Engineer 6 10 13 13 13 13 13 13

(iii) Executive Engineer 21 35 45 45 45 45 45 45(iv) Assistant Engineer 66 127 136 136 136 136 136 137(v) Junior Engineer 207 289 289 289 290 290 290 296

B. Suoortina (Admin)

(i) Grade IV Staff 2,612 656 668 668 668 670 670 672(ii) Driver 136 196 196 196 196 196 196 196(iii) Clerical Staff 1,086 790 805 805 805 810 810 810(iv) Accounts Staff 28 44 46 46 46 46 46 47

C. Sufnortina (Technical) 469 366 390 400 400 400 400 410

D. Tubevell Onerators A/ 4,622 4,600 4,600 4,600 4,600 4,600 4,912 5,212

Ij Reported staff of BDVC in Nay 1985 before re-organization into TV.IV Including accouuts and general clerks ad typists..V Accounting staff in central, regional and divisiual offices.J/ For existing tubevells, operators are provided with a 'male' or helper; a 'male'

would not be required for new or modernized tubewell systems.

-63- ~~~~~~~~TabIle T-!12

INDIA

BIHAR PUBUC TUDEWELLS PROJECT

Estimated Incremental Rent and Cost Recovery jI

For the Four Farm Unit Models - 1.0 ha Each(Rs/Farm Unit)

ModelI 1 bModel 2 Model 3 Mgdel 4Mixed Cropping

Heavy Soils Mixed Cropoina Liaht Soils With Vezetables

Project RentGross Value of Production 3,621 3,526 3,211 5,097less Production Cost __f72 -_220 __8!0 1.214Gross Margin jI 2,949 2,606 2,405 3,883Less Deprociation _/ 0 0 0 0Less lmputed Value of OwnResources ~J 820 852 726 1,498less Allowance for Risk 30 30 30 45Less Management Fee 210 172 165 235Project Rent 1,889 1,552 1,484 2,106Rent as X of Gross Margin 64% 602 62% 54%

Cost RecoveryWater Charges j_ 141 153 132 157Land Tax 50 50 50 50Agricultural Sale Tax 6/ 36 35 32 127Total Cost Recovery 227 238 214 334

Cost Recovery as Z ofProject Rent 12% 15X 14% 16%

New and Modernized RehabilitatedAnnual Proiect Cost Tubewell Tubewell 7/

…----- --- Rs/ha---------------

Capital Recovery Cost j 476 3690&H 75 75Energy 110 110Total Annual Project Costs 661 554Cost Recovery as % ofAnnual Project Costs I/ 34% 41%

1/ Incremental value over project lifespan of works assumed as follows: pumpunits - 10 years; well point, pump house and distribution chambers - 20 years;distribution systems - 30 years. Costs discounted to present values andannualized at 12g interest assuming 2700 hours operation per year.

V Gross margin is defined as gross value of production less cash expenses onproduction costs.

if Since the farmer has few physical assets other than land, no depreciationhas been assumed.

i/ Family labor and draft animal power.j Actual water charges as presently fixed by GOB for various crops and seasons.

i} Assuming a sales tax of 5% on marketed produce; marketed produce assumedas 201 of farm production for Models 1 to 3 and 50% for Model 4.

I/ Assuaing that a rehabilitated tubewell is fully utilized.8/ Average cost recovery (Rs 225) of Models 1 to 3.

-64-

aim& PUL{ IC U PROICT

Annual Protaet Costs(Capital Recovery and fixed and Variable 06& Costs)

A. Cagital Cost of lavest=ents ki

UtNew or Modenied Tubowel Rehabilitated TubweeLl 21(Rs/Tubevell) (Relba) (Re/Farm Unit) (Ra/Tubewell) (Rs/ha) (as/Frm Unit)

Annualised Capital Costs 47,600 476 429 24,000 369 333

Houra of Operation-,or Year Houra of 0 ration per YearB. Oh East I.50 2QOQ LZ22 3AR-QQ 3.50 Iuo 2.00 -2.70 3.0003.0

(j) Fixed CoAgoneStOperation (Rs) 5,000 5,000 5,000 5,000 5,000 5.000 5,000 5,000 5,000 5,000Maintenance (RS) 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500

(ii) Variolie CoinopoptElectricity _/ (Re) 6.09 8.1 10.96 12.180 14.210 6.0o 8.120 106 12.18 14,21Total 0QU Costs (Re) 13,590 15,620 18,460 19,680 21,710 13,590 15,620 18,460 19,680 21,710

C. Iotal Annual Cost

fi) Per IgbeamlCapital Costs (Re/Tubewell) 47,600 47,600 47,600 47,600 47,600 24,000 24,000 24,000 24,000 24,000O&U Costs (Ra/Tubewell) 13.590 15.620 18.462 196 21.71 13.590 15 620 1.#A 19.680 21.710Total (Rs/Tubevell) 61,190 63,220 66,062 67,280 69,310 37,590 39,620 42,462 43,680 45,710

(ii) PrNet

Capital Costs (Ralha) 476 476 476 476 476 369 369 369 369 369065 Costs (Rs/ha) 136 156 JlS DJ97W 217 2 M 3QTotal (Re/ha) 612 632 661 673 693 578 609 653 672 703

(iii) Per FkzW Unit

Capital Costs (Re/Farm Unit) 429 429 429 429 429 333 333 333 333 333-06 Coats (Rs/Farm Unit) 12. JAL 166 MI I" 189 217 25 212 22Total (Re/farm Uuit) 551 570 595 606 625 522 550 589 606 635

(iv) Per Unit Velma .4/

Capital Cost (Rse/3) 0.212 0.159 0.118 0.106 0.091 0.107 0.080 0.059 0.053 0.046065 Costs (Re/2 3 ) 0.6 DAM 0.046 0.0 0041 AL60 0.52 004 0.043 0.0L4

Total (Rs/,,3) 0.272 0.211 0.164 0.149 0.132 0.167 0.132 0.105 0.096 0.087

/ Capital cost annualized assuming interest rate of 121 and the following life span for various works. wells 20 years;pimp units - 10 years; pump houses and distribution chambers - 20 years; and distribution systems - 30 years.

21 On average, it is assumed that a rehabilitated well unit would irrigate 65 ha, serving about 72 farm unite.]/ Marginal cost of electricity generation and transmission is estimated at Re 1.03 per khh. The SSRS tariff for

agriculture (Sept 1985 weas R 0.35/kgh..4/ Pumping capacity 150 a /hr.

-65-

Tab le T-14

INDIA

=BIHAR PUBLIC TUIEWELL PROJECT

Present Watet Charges _,

Part A. Public TubevellsNo. of Water Charges

Season Poliot Irrigation go/ha

Kharif June 25 - Oct. 25 Paddy 3 126Kharif June 25 - Oct. 25 Paddy 1 48Rabi Oct. 26 - Mar. 25 Wheat, Pulses 2 96Other than Rabi - Potatoes 1 78Other than Rabi - Potatoes 9 270Zaid Mar. 26 - June 24 Sugarcane 1 96Zaid Mar. 26 - June 24 Sugarcane 4 222Zaid Mar. 26 - June 24 Other than

Sugarcane 2 96

Part B. Surface Irritation Schemes

WaterSourc Season Water Charges 2J

Perennial Kharif 90.5Perennial Rabi 47.5Non-Perennial Kharif 47*5Non-Perennial Rabi 38.5

1/ As of September 1985.2/ Charges are for the season, regardless of the number of irrigations;

Source Irrigation Department, Bihar, February 1986.

an F stc umu Ea

NMIt mmii simm vsk cm inisn

I 2 3 4 1 6 1 0 9 10 11 12 13 *411-*7 3 15-21 22 23 24 2a

a_ 11n ot u ffF rwii cuu

0-i OS Sc a mSt - 3 1t 23 42 63 E 106 117 M M 123 1 2 In U3 I I 123 52_11111, " owl ulssn - - 3 IS 37 n ij as IE9 2o 2z 22 2 220 220 20 220 220 m 22 20

-mtMtu O lInu 21220 mm 2 17 4 -101 1o 23 2S W MS M m 23 23 25 2M n m M M M Ms

_ m I- -E_ 1115- 2 23 7S 16 270 3m U 12 6a5 636 63 46 66 63 43 6U J626 436 43 4U

011 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~0%Ch~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~0

1inIy33 J IS 3 S J1IUSIU In O IIIS - 2a 23 23 3 D3 33 - - - 2 3 3 - - 9 t0 to 15 1U1= ES1 UI S It 25 3 37 ? 3? - - - - 2 1 0 a - 20 25 295

_51UDthl ims 16 23 36 22 21 - a 13 14 14 12 * - - 3 6 35 Is A 35

_inin~ U 2*SEuM M ULIS ON UREIAS 3 4 4 S a 2 - - - - - - - - -. .1_1" t t 5 0 9 - - - - - - * t _ _ a 9 _ _

ianuDt1 ru 20 A 3t 46 40 21 2 - - - - - - - -

_ 63D11 * in Iium 1 2 3 1 I 1 1 - - - - - - - - - -

_rnia0u u umaU I 1 6 2 1 1 1- - - - - - - - -n iwUtin to 3 to 20 3 4 1 2 - - - - - * - -_

cm LU 3515 - * 2 4 7 10 13 17 17 3? 17 37 17 17 17 17 1? 17 I? 17 17MM= llAm1 - t 4 9 13 to 23 22 22 22 22 22 22 22 2V 2 22 22 22 22

_ t_Ulin - 0 It 31 43 S3 62 62 62 62 62 62 62 62 62 42 Q 62 612 62 U

_u _ c 5? *3 136 1u 232 1111 1$5 114 Us5 Its 117 109 la 113 IV I" t54 I" Ut

am _ T nWIT t- -12 -1 -312 -71 97 20 403 460 54 3S2 11 52 24 452 470 402 470 6f* 4s-~~ ~~ ~ ~ _ _ _ _* _ _ _i n _ _ _

INDIABIHAR PUBLIC TUBEWELL PROJECT

Number d Public TubowesPrsenr Sikfl and Pv4xned Pn*d ActMNs

tt SOUIIWJO

in 1 6 Iowo oIsfa lWbch

2t6? -J144 NxirOpo*402.b23 Wdh (Afbtuoon 9i bm16 93I W%l DdxO &Sony4 t 2 btO Etiwgloed

139 -*At*EnSt%

tO2E EXCLUDEDFOMb 9M PROJECT PROJECT FROJtCt(ft$Wved tm fukM boolo~~~~~ PmgKoft) ~ACIMltES CW

&~~~~~~~~~~~~~~~~~~~~ 1 t 4 xZt2inif4PIWS 5ISWIltlowaDo

I ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~O MaSdwsOO2 ttsiOft" alfs to Do . t

cfbitcect .eotdeCarntOdto

k.t'.t, Conrwocteto L_ .wda'Iw _towet

Wffthslut ~ ~ ~ vm Ihtt taI e-un I W. t4 Prft l

9t.,~ ~ ~~~~~ftl J, WS#$htt,sy$

-4 P. 844 .qM .LMLb- Pr-Ws

14Ws Pu*jK ki~s 1'tmot 0I24.W

ASceK MWim kIIIWWWI owaU#4o . , S 1 wAu%utw' M6 wo .'*x -. *

.~~~~~~~~~~~~~~~~~~~~~~~~~~~~iSN .301

-68-Chart C-2

INDIABIHAR PUBLIC TU8EWELL PROJECT

Typicol Tubewell Design

CtoV Gde 'SuDoonf 45 c.m Atoove G LCoLCre'eP Pn?t .

G L.

300 mm 00 Cosing for600 mm Oiometer DOlWt Mole_ '50 m3: h *lel

(-educc 300/200 mm

200 mrn 00 S9ofe Cosng

450 mm ,noter o0Ueo Mole S

_ L _ 200 mm 003 St CaC sng

ant=traws5 :r. Cees

T:; !00.150m

WC= BOnk -:Z.

Chart C-3

INDIABMAR PUBUC TUBEWELL PROJECT

Sc,ematc Lacot for a Dlnbutiv sbtm ftoTpicol fmprod Standard Tubewe* Command

(150 m3/h ens 100 ha through a two loop stems)

IV'

LOW AMC A s- - - toDAl

- L_ - - o >oo

La= A C 1 23

/ u ,av II 2. 3.2

SoI~g VI 78.9 10 \Al

- 0D - - LOOID~ BMOn-0 A

\unagy VII *1'Q10" 1610,xt,^p=

~~~~~~~~~~~~~~- -O- _ -Out..... el V<7ve C A Wrea$ A 8 are Supotoa\ lil I l_[ ~~~~~~~~~~~~~~~Simltloneouiro wvtm 0 7e CIJ#D Eocrs

< ~ ~ ~ ~ ~ ~ ~ ~~~~~s -o-_~ Stor=ssloe

*---D mmo DfrCKT,on S.js erms-ur ea P V C

AMo DM/ .- m - v Ore Ouraa ot Areo Dav -- ,sfxr4wns

UOO A coo b

v _ ~~~1.2.3 23TUOSO 0 2.3 3.4 0

_T eo IVN 3S.o6 78_

Flo . V 107 5AZ-7.10

VI 7.8.9 9.1o0on

SO*M ^ii to 19 10 r 160Voa ow=

-70- Chat C4

IIIDIA


Pfoiect Implementstion Schedule

Numberof Work, Prgg

Project Comnonent Unit 2 P3 iect 6 -

1 2 3 4 5 6 ------- -(Cumulative) -----

A. Irrigation Components

1. NkeyTubewells

- Well Point 500 - 60 130 200 300 400 500- Pipe Distribution System 500 - 60 130 200 300 400 500- Energization 500 - 60 130 200 300 400 500

2. Modernized Tubewells

- Replacement and/or RepairElements in the Well 1,000 - 60 200 400 600 800 1,000

- Pipe Distribution System 1,000 - 60 200 400 600 800 1,000- Energization 1,000 - 60 200 400 600 800 1,000

3. Rehabilitated Tubewells

- Replacement and/or RepairElements in the Well 3,712 470 1,460 2,450 3,130 3,712 - -

- Pipe Distribution System 1,313 200 500 bOO 1,100 1,313- Energization 3,712 470 1,460 2,480 3,130 3,712

B. Other Components

4. Management Improvement X 0 O1005. Buildings 0 1006 O&M1 Manual 0 _1007. Agro-economy Baseline Study 1/ A _ C8. Project Mid-Term Review

1/ Part A - Initial Baseline Study; Part B - Routine M&E of activities undtinitial baseline study; Part C - Final Baseline Study.

PWUR_IRARPROJEC -Fb_hg- bD_-

ftoposedOqbAw Ch

64_

U~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-'

coru I .~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

s"E Cbds . enMa U:re

(K) (6) (4) (3E) _ (4)

.0

mom{w E A. A . 1 li

(13) ~~~~~~~~~~Al 4 g

|~~~~~~~~~~~~~~~~~~& 1 r hUa|

X, d X,M%C- MAv , W_ | {~~~~7U5 ) (1.146) ( 804) (811t) I (46) I I (844)

)MwIiw~U~~s : } 04OtB t4 (U , I I .

WS-dC_n~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~'td n r _ teW~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~I

*f_bS_h_/nht , d-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

-72-

BlEA PUBLIC TUBEVELL PROJECT

Documentas Available in Project File

General Documents

1. Seventh Five Year Plan (1985/90) Irrigation Department; GOB 1985

2. Ansual Plan (1915/86); Irrigation Department; GOB 1985

3. Seventh Five Year Plan (1985/90); Planning Department; GOB 1985

4. Annual Plan (1985/86); Planning Department; GOB 1985

Aaricultrn

5. ICAR - IBRD National Agricultural Research Project Report;Research Review Committee for Rajendra Agricultural University and BiharAgricultural University; Indian Council of Agricultural Research (ICAR). 1982

6. Agricultural Productivity in Eastern India, Volume II, Part IV -Bihar; (Senn) Committee on Agricultural Productivity inEastern India; Reserve Bank of India. 1984

7. Bihar Agricultural Extension and Research Project, ProjectCompletion Report; Department of Agriculture; GOB. 1985

Proiect Preparation

8. Bihar Public Tubewell Project; Agricultural Finance Corporation(AFC) Limited; Bombay (prepared for Minor Irrigation Department; GOB). 1985

'An

9. Bihar Irrigation Laws (A compilation of relevant Irrigation Acts);Malhotra Bros; Patna; Bihar. 1/ 1985

.1/ This document contains: The Bengal Irrigation Act, 1976; The BiharIrrigation Field Channels Act, 1965; The Bihar Public Irrigation andDrainage Works Act, 1947; and Bihar Lift Irrigation Act, 1956.

-73- AnnL".

INDIA

SISAl PUBLIC TUBBWLL PIJDCT

A5ssUUtion for Financial and 3conomic Analysis

Tgble of Contents

Financial Prices

Bconomic Prices

- Economic Prices for Traded Comodities.- Economic Prices for Ron-Traded Commodities- Economic Prices for Agricultural Inputs- Economic Prices for Project Investment Costs

Financial Analysis

Economic Analysis

List of Tables

I. Derivation of Economic Prices for Traded Commodities2. Financial and Economic Prices of Outputs and Inputs3. Crop Yields and Input Assumptions4. Individual Crop Budgets in Financial Prices5. Models of Cropping Patterns for the Financial Analysis6. Summnry of Farm Unit Budgets at Financial Prices

-74- Page I

INDIA


Assamt ions -for Financial and Economic Aalaysis

Financial Prices

1. The financial p'rices used in the financial analysis are theprevailing farmgate prices as recorded and calculated by the appraisalmission team in September 1985. For traded comnodities,-the recommendedfloor prices paid to farmer (fixed government prices), were quoted as thefarmgate prices; for non-traded commodities and farm inputs, the averagewholesale market prices in the major marketing ceuters of Bihar for thepreceding year to September 1985 were quoted. Farmgate prices of both thetraded and non-traded commodities were then calculated by subtracting themarketing margin of about 301 from the wholesale prices. The farmgateprices of both the traded and non-traded commodites, were verified duringfield visits and interviews with farmers in September 1985, and then havebeen updated to April 1986 prices.

Economic Prices

2. Economic Prices for Traded Commodities. The economic price oftraded agricultural outputs and inputs (at farugate) were derived from theIBRD projected 1990 and 1995 world market prices 11. Adjustments were madefor quality, freight, insurance, handling, local transport and processing.A standard exchange rate of Rs 13.0 - US$1.00 was applied to convert pricesexpressed in US dollars to local currency values. Table 1 of this Annexpresents the derivation of economic prices for the traded commodities(including fertilizers).

3. Economic Pgrices for Non-Traded Commodities. These have beenderived from the financial prices using conversion factors. Since thefinancial prices are considered to be a poor estimate of the economicvalue, a Standard Conversion Factor (SCF) of 0.8 has been used to establisheconomic prices of the non-traded goods. It has been assumed that theseeconomic value would remain unchanged over the project period.

4. A somewhat different approach has been used to derive the economicprices of oilseeds and pulses. In the case of oilseeds, a comparison wasmade with the price of imported palm oil; in the case of pulses, the com-pari.on was with the price of imported soybeans. A conversion factor of0.95 was calculated for both commodities.

lJ. Macro and Financial Assumptions and Half Yearly Revision of CommodityPrice Forecasts; IBRD; July 31, 1985.

75 ANNEX Pasge 2

5. Financial and Economag Price8 for Agricultural InoutI. Theeconomic prices of fertiliaer nutrients were derived in the same manner asfor other traded commodities (para 3 and Table 1 of this Annex). Theeconomic price of agro-chemicals was derived by applying the SCF. Thefinancial price of hired agricultural labor in Bihar has been taken asabout Rs 10.5 per day of which Rs 8.5 is paid in cash and about Rs 2.0 isgiven in benefits such as food and permission to collect farm produceduring post-harvest. However, analysis of farm labor supply and demand inthe State indicates that alternative labo,r opportunities are very few andthe conversion factor is correspoudiugly:low at 0.5. Given the highpopulation growth rate, an increase i-n the economic wage rate has not beenassumed to occur during the project period. The conversion factor for thecost of draft animal work is estimated to be 0.80. A summary of financialand economic prices for outputs and inputs is given in Table 2 of thisAAnex.

6. Economic Prices of the Proiect Investment Costs. The constructionof the project requires the use of equipment, materials, skilled andunskilled labor. The proportion and the degree of price distortion ofthese costs vary, depending on proportion of foreign exchange, taxationsubsidies and other forms of support. In order to adjust for cost pricedistortions, a Construction Conversion Factor (CCF) has been applied asfollows:

Cstexorv CCF

Civil Works -0.75Equipment 0.80Materials 0.80Imported Equipment 1.00

linancial Analysis

7. Four indicative farm unit models were constructed to assess thefinancial impact of the project on individual farm unit. The followingassumptions have been used in formulating the farm unit models and theircrop patterns and budgets:

(a) farm size has been taken as 1.0 ha, which is the represeuting sizeof small farms in the project area;

(b) most units are 'subsistence' farms, selliug only small quantitiesin the market place and having additional source of income fromwork outside the farm unit.

(c) farmers with light soils, would follow under assured irrigation, amaize/wheat/pulses rotation and would reduce their rice productionarea;

-76-N M lPage 3

(d) paddywhheat would remain the mset dominant crop combination or, allfarms;

(e) under assured irrigation in vicinity of urban centers, farmerswould gradually increase production of vegetables;

(f) there would be minor differences in crop yields asmro the threeagro-climatic regions, however, it has been assumed ihat the fourindicative cropping models would have the same patterns for allagro-climatic zones and the same an average crop yields irrespec-tive of gone;

(g) crop yields and input application data would be as presented inTable 3 of this Annex;

(h) crop yields in the "future without" project si-zation are higherthan crop yields in the "present" situation. This assumption hasbeen msde, since crop productivities are expected to increasewithout the project because of the impact of the extension serviceand improvement in input supply and usage;

5i) it is expected that under the project, it will take six years fortypical farmers to reach projected crop yield levels; and

(j) in all farms there will be a surplus of labor power, orunder-employment, and farmers and their family members would seekother employment opportunities, even though these may be limited.

8. Individual crop budgets in financial prices are given in Tables 4a.b and c. The four models of cropping pattern for the financial analysisare presented in Table 5. The summary of the farm unit budgets ispresented in Table 6 which also records the gross margin and the net returnper farm unit. The return per capita has also been calculated. Calcula-tions of the financial rate of return were not included in the financialanalysis, eecause all investments in the project would be public invest-ments and not farmers' own investments.

BEOnomic Analysis

.1 In order to derive most accurate streams of benefits and cost to beused in the economic analysis, six unit activity models were applied (aunit activity is defined as a net area of 100 ha irrigated by onetubewell). The model of cropping patterns for each of the three agro-climatic zones are presented in Table T-5 of the Main Report.

10. The economaic anaLysis of the project is related to 5,212 tubewells,of which 500 are new tubewells; 1,000 are modernized tubewells (with newpipe distribution systems); and 3,712 rehabilitated tubevells (of which1,313 tubevells would include repairs of the distribution systems and 2,399

-77- ,P age 4

tubewells which would have some minor parts replaced but their existingdistribution system would be left unchanged).

11. The benefit and cost streams (Table T-15) assumed in the-economicanalysis iuclude:

(a) Benefits: all the incremental production resulting from theproject, net of v.n-farm production costs.

(b) Costs: (i) all direct investments in the tubewells and the dis-tribution systems; (ii) proportional investments (for the tubewellsincluded) in dedicated powerlines; (iii) proportional expenditurefor management improvements and institutional buildings; and (iv)all O&M costs for modernized and rehabilitated tubevells.

12. The following assumptions were used in constructing the cash flowstreams:

(a) Reulacement LifesDan

(1) well - 20 years(2) pump unit - 10 years(3) pump house and distribution chamber - 20 years(4) distribution system - 30 years(5) power system - not replaced as a cost to the project

(b) Knergv Consumption and Costs

(1) average well discharge - 150 m3 ;(2) average static water level - 6m;(3) average drawdown in the well - 5m;(4) average head loss in delivery - 2m;(5) delivery head above ground level - 4m;(6) total dynamic head (sum of 2-5) - 17m;(7) wire to water pump efficiency - 0.6;(8) energy consumption - 11.6 kWh/h of operation;(9) hours of pumping per ha per operation:

Kharif - 31 hoursRabi - 34 hoursZaid - 39 hours;

(10) marginal cost of energy geueration and transmission has beenestimated at Rs 1.03 per kWh. However, power tariff foragriculture is highly subsidized and, at present, the BSUB

charge the agricultural sector Rs 0.35/kWh.

-78- 2Page 5

(c) Qther O&N Costs

(1) operation and supervision(establishment and overheads) RB 5,000 per year per well;

(2) routine maintenance Rs 2,500 per year per vell.

13. To measure the impact of possible changes in the economic eaviron-meut on the project's stream of benefits and costs, several sensitivitytests were made including measurement of the economic rate of. return (forthe overall project and for individual components) under the followingassumptions:

(a) costs up by 502;(b) benefits down by 502;(c) costs up by 201, benefits down by 20%;(d) benefits lag by 3 years;(e) switching values at 12.0X; and(f) exclusion of dedicated power lines from the project when

power supply of only 4-6 hours per day would be available (instead ofuninterrupted supply of upto 16 hours per day with dedicatedpower line).

The results are snumarimed in the BAR.

-79-

Table I

INDIA

BIHAR PU8LIC TUSEWELL PROJECT

DerivAtiga of E0onomic Prices for Traded Commodities J(in 1985 constant prices)

Unit Paddy shaL Mai --aut Sular N P K

Projected Wor-ld Market Price(1985/86) U9S/t 225 158 114 502 87 172 123 87

Quality Adjustment i 75 95 100 100 98 100 100 100World Market Equivalent of 169.

Indian Product US5/t 169 I0 114 502 85 172 123 87freight and Inasurance US$/t - - - - 25 54 69 69Domestic Border Price (CIE or

F0B Calcutta) US$It 169 150 114 502 110 226 192 156Domestic Border Price iA

Local Currency U Rs/t 2,197 1,950 1,482 6 526 1,430 2,938 2.496 2,028Domestic handling & Transport 3/ Rs/t -64 -64 -64 64 -64 64 64 64Processing or Nutrient Ratio S 66 100 100 70 10 46 48 60Processing Cost 3/ Ra/t -110 - - 95 -94 - - -Whole.sle Price RsIt 1,298 - 1,418 4,708 43 6,526 5,333 3,487Transport to/froa Farm Rs/t -25 -25 -25 25 - 25 25. 250co3omic. Farm Gate Price as/t 1,273 1,861 1,393 4,733 43 6,551 5,358 3,512

Projected World MarketPrice 1990/95 U8$/t 333 151 113 269 293 230 143 96

Quality Adjustment 2 75 95 100 '100 98 100 100 100Vtird Market Equivalent of

Indian Product US9$t 250 143 113 269 287 230 143 96Froight and tnsuranee Us$/t - - - - 25 54 69 69Damestic Border Price

(CIF or 108 Calcutta) US$/t 250 143 113 269 312 284 212 165Domestic Border Price in

Local Currency Z/ Rs/t 3,250 1,859 1,469 3,497 4,056 3,692 2,756 2,145Dmestic Handling and

Transport J IRl/t -64 -64 -64 64 -64 64 64 64Processing or Nutrient

kantio 66 100 100 70 10 46 48 60Processing Cost ) Rs/t -110 - - 95 -94 - - -Wholesale Prito Rsat 1,993 1,795 1,405 2,588 305 8,165 5,875 3.682Transport to/from farm Rslt -25 -25 -25 25 - 25 25 25Economic Farm Gate Price Rs/t 1,968 1,770 1,380 2,613 305 8,190 5,900 3,707

.1 Pricing Basis:Paddy Rice: Thai, Killed 52 Broken, FOB Bangkok.Wheat: Canadian So. 1, Western Red Spring, FOB Thunder Bay.Maize: Us go. 2, Tellow, F0 Gulf Ports.Jute: Ba$glsdesh White D. FOS Chittagong/Chalua.Sugar: World, ISA Daily Price, FOB and stored at Creater Carribean Ports.Fertiliser - P: Urea, Any Origin Bagged, FOB !ortheast Europe.

- P: Triple Superphosphate, Bulk, F08 US Gulf.- K: Potassium Chlori4e, Bulk, FB Vancouver.

U Machnge rate: Be 13.0 - U081.003U Adjusted by SCF - .80

Source: World Bank: Price Prospects for Major Primary Commodities.Half Yearly Revision of Commodity Price Forecasts. July 31, 1985.

-80-Annex 2Table 2

INDIA


Financial and Economic Prices of Outputs and Inputs

Outputs Financial Prices Economic Prices1985/86 1985/86 1990195(Rs/ton) (Rs/ton)

Paddy 1,400 1,270 1,970Wheat 1,450 1,860 1,770Maize 1,300 1,390 1,380Pulses 3,000 2,850 2,980Jute 2,270 4,730 2,610Vegetables (Kharif) 550 440 440Vegetables (Rabi) 650 520 520Mustard 4,200 3,990 3,680Moong 3,000 2,,850 2,980-Sugarcane 220 40 310Potatoes 750 600 600

Inputs

Fertilizer - N 5,000 6,550 8,190= F 5,000 5,360 5,900- K 3,000 3,510 3,710

Labor 10.5 1/ 5.0 1/ 5.0 1/Draft Animal (Bullock) 252/ 202/ 202/

1J Rs/Nan-day.2/ Rs/Pair-day.

BlHUPUflHD w fiJC

Croa Yields *nd Int Asasusmtion

Part A. Cgro Yields

Zone I ZoDe II Zone 111Future Future Future Future Future FutureWitbout witb Without with witbout Witb

n Se /so Present Proiect Proiect Preseng Pro Pro Pro ect Present Pgoiect Proiect

Y 0.9 1.2 2.25 0.6 1.0 2.0 0.9 1.2 2.25?iddy K 6 it l / 1.1 1.3 1.8 1.0 1.1 1.6 1.1 1.3 1.6Pulse. K 1.1 1.2 1.4 1.0 1.1 1.2 1.1 1.2 1.4Vegetables X 12.0 14.0 16.0 10.0 12.0 18.0 12.0 14.0 16.0Jute K 1.4 1.5 1.8 1.25 1.4 1.6 1.4 1.5 1.8Wheat 1 1.1 1.3 2.0 1.0 1.2 1.8 1.1 1.3 2.0Pulses 1 0.5 0.6 1.0 0.4 0.5 0.9 0.5 0.6 1.0Vegetables £ 6 2 - - 15.0 - - 13.5 - - 15.0

ustatrd R 0.5 0.6 1.2 0.4 0.5 1.1 0.5 t.6 1,2Potatoes R - - 15.0 - - 13.5 - - 15.0Fo0der a - - 15.0 - - 13.5 - - 15.0lbeng I & Z C/ 0.4 0.5 1.0 0.3 0.4 0.9 0.4 0.5 1.0sugarcane P - - 50.0 - - 45.0 - - 50.0

PArt 4. Lpt Asauriona

Seeds Fertilizer- Fertilir-P Frtilizg Ao l B a hbo-. O rat An1kg/ba kg/ha 41ba 41ba Rs/ba Han-days/ba Paii-Dayb/ba

Lssso A, / e it C A § A 1 C A A § °Paddy (ainfe4) K 40 40 40 25 30 30 - 10 10 5 5 100 150 150 125 125 135 22 22 25Paddy (lrrigated) K - - 40 - - 40 - 20 - 10 - - 300 - - 125 - - 22Raise K &11 20 20 20 30 30 40 15 15 40 5 20 100 150 300 50 50 65 12 12 15Pulsea (ainfed) K 15 15 15 10 15 15 5 10 10 - - 50 100 100 50 50 50 10 10 6Pules (Irrigated) K - 15 15 - - 20 - - 40 - 5 - - 200 - - 55 - - 8Vegetables K 8 8 8 50 70 90 30 40 50 25 25 30 250 35050 300 330 350 15 16 18Jute K 6 6 6 30 30 30 - 10 10 - - 5 150 200 250 220 220 260 22 22 24Wbeat R 80 85 90 20 25 40 - 10 20 - - 10 50 100 200 6 65 O11 24 24 26Pulses (lRinfed) a 15 15 15 - 10 10 - 5 5 - - - 50 50 35 35 35 6 6 6Pules (Irrigated) K - - 15 - - 10 - - 20 - 5 - - 100 - - 40 - - 6Vegetables K & Z - - 15 - - 90 - - 30 - 45 - - 500 - - 300 - - 20lbwtard (ainfed) 1 3 3 3 - 10 10 - 5 5 - - - 50 50 3) 35 35 101 0 10Muatard (Irrigated) K - - 3 - - 45 - - 25 - 5 - - 100 - - 40 - - 10Potatoes R 2 / 2 * 28/ 60 65 100 30 35 80 20 20 20 300 350 500 260 260 2SV 25 25 26Fodder 1 3 3 3 - 10 20 - - 30 - - - - - - 70 70 60 20 20 22MaOOg (Rainfed) R z 15 15 15 - 10 10 - 5 5 - - - - 50 50 30 30 30 7 7 7 ajoHoong (Irrigated) QR2 - - 15 - - .15 - - 30 - - 10 - - 50 - - 35 - - 7;iSugarcane P l e lo / - -120 - - 60 35 - 100 - - 200 - - 5

A/ K - Kbarif. R - Rabi, Z - Zaid, P - Perennial.h Ha1ize ia Rabi relates only to "future vith" project situation.£/ Moong in Zaid relates only to future with" project situation.

A A - prreant situation, a - "future witbout" project situation, C - "future vith" project situatzion.s/ ton/ha

*-82- Amuex 2

itam flaM~P~'7 !LCI, turnd tiws abrilleAt' h V ~ ! 9~ 'b~i 4' Gs ftuuth u (fit........ ..

Part A. Apro-climatic Zone I

I 6.9 t ,4* -so 1,541 140 136 I5 (25 t 8 fit 55 58t Nle g L.t 1,336 (2 3,55 t33 43 3e II 7t5 U too 43 VI v?Psl (Arba) I t1 3,6" n 3,3" 15 43 2 53 25 0 50 34 35 3,t65Jett K 1.4 2,76 3 3,171 36 I8 55 36 I I 153 40 618 1,65

"Ue bl In £ I2.1 56 1 6,043 453 si# 60 M 15 75 21 141 1,884 4,714Sat * 1.t l,46 361 I,m 32t 55 s If I I 5t 25 6r0 1, Pus(oual a 1.5 I,' 64 I,566 1i5 33 25 0 0 a 3 12 172 1,38815144d - 1.5 4,1 # 2,13 31 38 25 S e I 1 4 8 .2,011

1 1 * 4 3.3,3 t @ 1,238 I35 30 33 0 6 e 25 31 1 3

Pad * 1.2 1,40 320 2,130 141 116 55 150 5s Is 50 61 726 1,274haim U 1.3 1,3U6 13n 1,82e i3 43 33 153 75 35 I35 62 655 1,163psius (kW) l 1.2 3,1411 1t$ 3,703 is 43 25 45 5 I 1t6 42 43 3,23late £ (.5 ,27 6 3,465 36 (67 55 Iso 56 3 230 52 730 2,675voletls, 1 14.3 55 I 7,73 451 553 75353 260 75 356 2 2,179 5,521man It t 3 ,4. 33 2,2es in 55 63 125 5a I 16 71 71 1,424P.3mg (16m) t 3.6 3,6 76 I,m Iff 3e as 33 15 I 5D 24 279 1,5Ultd .. I 4 4,281 3 2,523 3 30 25 36 *13 I 5 15 195 2,325None a .5 3,"6 6 1,533 135 3e 36 5i 25 6 5e 31 351 1,149

f P" 1 2.25 1,466 653 3,811' 14 III 60 206 163 36 300 92 1,37 2,763Rin I1 1.8 I,3 33 2,54" 13 55 43 2t 203 6d 33 165 3,393 1,453Fe1ig 1 1.4 3,31 126 4,321 ISO 47 33 to6 20 a5 263 el 833 3,46"ueablo I 16.6 56 6 8,66 666 5 IsO 4# 250 9 3a 213 ,850 5,s95sIf" I 1(. 2,271 3 4,393 42 221 68 15s St Is 21 63 846 3,241ma I 2. e 1,45 64 3,5t636 68 4, no0 13 1 26e 102 I,68m 2,423Full" I 1t6 3, 1l6 3,U06 I3 34 25 50 t3o 15 1it 44 473 2,627FdW I 1$ 1 5.6 to 8 2,2 11 68 55 18 151 3 1 31 *415 1,835Ptetmi It 15. 756 Il 313 3,666 56 125 536 4 (23 5ee 617 5,762 5,40I11wrd * 1.2 4,21 a t5,366 31 35 3 u225 125 (5 I6o 63 62u 4,426VlIqtable (aIm) 14 15.1 65 1 6 t 9,7M 9f 1,51 60 4 t 1I 135 511 256 3,91 5,78goa ( S 1. 3,11 33,660 13i 33 33 75 150 1 1 53 m 2,447Iwcas* P 56.0 223 1,351 12,356 2,116 1,34 20 660 31 105 0e 4e 5,671 6,683

V Liwt css" b1g o hirtn 13 o f hr raeqe m et.,

If tled pir Ctst kW u l Mr9 Io lt lft Wtrmft.

F kber ests ielis qatkAies, trct ee s (e.g. MG, eatk etc.

4i 16mst at 12 or mmuss t , fertiftWe of e tness.

Id Ihef vqt8e- ciqu c ulil.

-83- A=iU 2Table 4b

!!~ fr.1 ' i gIgt Vw yA ta Ston !sL I Itr£S 31101 1341t I,AWrs miai I t ! 0{thet/Ig7j Yu toirthle I/ten............ ,, , I....s.ha

Part B. Agro-cliaatic Zone 1I

Pad~ K 1.0 1,41 M75 1395. 141 166 551 25 1 0 1it 55 Sol 814Itai K 1.0 1,3H III 1,410 t33 43 30 15e 75 1 Ill 43 VI 839Pulash ,fb4 ) K l.t 3,6 9 3,"9 15 43 25 55 25 1 51 34 385 2,715iate K t.25 2,271 2,8312 36 t18 55 15 1 e 155 41 -f618 2,221V.eeblej I I6.5 5M5 6 5,5IU 451 511 6e M50 in5 75 I's 141 1,086 5,414llit a 1.61,455 31t 1,755 326 55 61 1t0 I I 15 to ti 1,145PFll a 6.4 3,65 6 1,`26 155 30 2a 0 6 e 1 12 172 I,0mustid 1 6.4 4,266 I ,68 36 35 25 0 I I 6 4. 0 ,sntoq 1a 1.3 3,616 6 96 135 25 6 I 0 0 I 16 176 72

Fsts. 11thent frewet

fad" K 1.6 1,416 311 1,76 15 166 55 155 so 15 IS O 724 74lai- K 1.1 1,315 121 1,425 131 43 36 154 7n 15 151 62 655 765Puol (fer) t 1.1 3,66 I 3,406 158 43 25 45 50 I ISP *2 463 2,937loft t 1.4 2,27 6 3,171 36 187 55 151 0 0 206 52 730 2,445Igptable 1 12.6 556 6 6,666 456 55e 75 356 260 75 356 129 2,179 4,421Uhte t .2 1,45 3651 2,645 32 55 60 125 50 I 10 71 791 1,25?Pulg I .1.5 3,656 75 I,57m 1is 35 25 30 Is. 6 55 24 279 1,291estid e 1.5 4,215 1 2,151 31 35 25 35 t5 I Is l1 156 1,944kaq 1 6.4 3,68 I 1255 135 35 35 se i5 0 5s 31 351 o4

podd t 2.0 1,455 665 3,4tt 141 t1s 6 2eo to0 36 360 92 1,037 2,363Mii Kd 1.6 1,355 253 2,335 t13 55 45 2tt 206 6a 381 155 1,90 1,246Fulms (areth K 1.2 3,6 155 3,755 159 47 30 Ito 260 15 255 9 83 2,92lote K .6 2,27 5 3,632 42 221 610 Ise 15 2S 66 848 2,794'etabg K 11S.6 sst I 9,90 1 756 15 4;0 250 125 355 267 2,932 7,068am I 1.6 1,456 4 3,661 321 68 6 250 lot 30 2t6 162 1,590 1,915ulVI (Vint a 6.9 3,166 to 2,95 165 34 25 So In i5 is 44 473 2,327feKW a 13.5 151 1 ,625 it 68 55 lot 156 I 1 31 415 1,615tateu a 13.5 751 6 11,125 3,5l 5t 125 He 4t1 126 so 617 5,762 4,363NtWE a 1.1 4,260 65 4,685 Is 35 35 25 11 15 to6 66 620 4,065VeQetl nHB 13.5 6U 5 6,775 "I Im 6 ,51 0 456 It 135 506 256 3,961 4,814I5.q i 6.9 3,66 6 2,711 135 35 36 75 155 30 56 53 S53 2,147Suatai p 45.6 221 1,215 11,115 2,615 1,34 6 62 666 300 t15 31 405 5,676 5,439

V abe costs Mid 0 hit!" 1 at labotr reqvitemes.

I/ 11led Pa cnt bae en tbg 151 of daft mqtirmt.

5/ hfr coSts lecIl WOrC1f41CALs, trace elmuts .I(. nS04), Atats etc.

Y btrint at 1i p anm" e sd, fettlie ad teli costs.

1/ hlf upt atIls - aiwqln aid thlli.

-84- Annex 2Table 4c

>IOA

BIRAR - PUBLIC TUSEWELLS PROJECT

Individual Crop Budgets at Financial Prtses

iLid It k it!IIUP KI OL#_h.j/ to !a1/114 lgIton ., s ..

Part- C. Agro-climatic Zone III

*Padd - K 6.9 1,466 30 1,568 14t 131 65 125 1 9 li0 55 616 944K 1.1 1,366 121 1,551 131 S3 40 156 75 I 160 U3 59t 959

PpIwms (4Iiat) £ 1 . 3,l06 n .3,396 158 53 a0 53 25 0 50 34 400 2,96JUte K 1.4 2,276 1 3,178 36 231 65 151 6 0 150 46 672 2,516

Vuqaublu 5/ 1 12.6 5S6 6 6,601 450 631 70 258 t50 75 2S 141 2,116 4,584tOz?~t t1.1 1,456 360 1,'5 320 6U 7 lo I 0 S0 25 634 1,261

PJISuS (qra) tI 6.5 3,111 66 l,56U 105 37 35 1 0 0 12 14 203 1,357Nustrd I 1.5 4,216 1 2,106 36 37 35 0 0 0 4 4 11I 1,991'Atow R 16.4 3,n0 61,201 135 37 30 1 I t Z5 31 258 942

?a" K 1.2 1,4U6 326 2,000 140 131 65 1o s 50 15 15 it 761 t,299IbUtt I 1.3 1,36, 130 1,926 13 53 40 I50 7S 15 tS0 62 675 1,145ulsug Wthar) I 1.2 3,01 1le 1,700 t58 53 30 45 5s I 1o 4 478 3,2lute I 1.5 2,27 0 1,40S 36 231 65 156 1 0 216 52 784 2,621egtablfs 1 14.1 556 I 7,701 450 1t 70 250 151 75 29 141 2,096 5,604

W;eN t 1.3 1,450 320 2,205 320 69 70 125 50 I I00 71 805 t,466P,lgs (C. 0 6.6 3,066 70 1,876 105 37 35 31 6 0 50 24 296 1,s74Nustard 1 8.6 4,201 6 2,520 36 37 35 36 15 I 15 11 173 2,347Neet 11 6.5 3,100 1 1,501 t35 37 30 50 25 1 50 31 358 1,142

PIdd, £ 2.25 1,401 650 ,960 240 141 75 201 too 31 308 92 1,678 2,722bain K1.6 1.8 1,301 200 2,546 136 68 so 2le 201 61 360 165 1,113 I,427

Pulss atth.) K 1.4 3,666 120 4,32 15e 58 55 I60 200 rs 201 86 86 3,454lute I 1.8 2,M 8 4,696 42 m 70 151 50 IS 250 60 909 3,191

ItabIus t 16.6 536 0 8,906 556 84 106 350 20 100 35 186 1,920 6,9961e1n 2 2.0 1,450 610 3,500 320 42 75 200 100 M 2tt 102 1,669 2,431Pu1lus (qran) I 1.6 3,000 10 3,100 l05 42 31 50 I't 15 t oo i4 487 2,o13Fsddb 25.6 ISO 1 2,251 it 64 68 100 I51 a 1 31 444 1,806Potates 6 15. 756 6 t1,251 3,160 615 154 5110 46 121 560 617 5,906 5,344MQNstad 1 1.2 4,200 61 5,106 36 43 37 22S 125 15 1in 61 635 4,465Veqetables (suet t4H 15.0 651 6 9,756 90 1,87 74 450 tse II s50 256 4,322 5,428tOs"a 643 1.0 3,011 1 3,10 135 37 3 75 Ito 36 S0 53 567 2.433svq,al' p 50.6 *21 1,351 12,356 2,806 1,648 769 600 360 105 360 410 6,122 6,221

IOa klaif; I * lat.; ,NS * it Sujsoe (aid); P a seruial.

J/ Labor costs baw onf hiriq lIt of looter reqirelSt.

21 b.leck pair cust baed sf hiriuq 101 ol draft rsqSrefent.

3/ Itharl Csts Imnl. Wirst"Cils, trace elgmns (e.g. ZoSO41, suks etC

4/ Itfrtift it tfl W M i sn Swt4, fertihtir aid ot er COSts.

5I Oanf esetabls - aatwqngm od chilli.

-85-Tabl 5

INMIA

SIMl! PVULIC TUIEVILL PROJECT

Modele of Cro n Sin PatteMn for the Financ£l A1 alxgi7Net Far Size Area 1.0 ha)

Hodel 1. S avw Soils

Seaaon Present and FWV 1/ -w FI"rOa Cro

EhJrif Paddy 1.00 Paddy (8.F) ZI .35Uharif - - Paddy .65Rabi Wheat .30 Wheat .72Rabi Pulses i .10 Phaees 1/ .14Rabi Mustard 0s Nustard .02

Total Crop Area 1.42 1.88

Hodel 2. mixed Crog,ins

Season Present and PVW I/ iv 1/Creu hi Cron ho

be!rif Paddy 85 Paddy (R1.) 21 .25harif - - Paddy .50ha!if Maize .15 maise .25Rabi Wheat .15 Wheat .50Rabi - - Maize .2SRabi Pulses / .10 Pulses 1/ .14Rabi mustard 02 Mustard .02


Modal 3. Liaht Soill

season Present an I PWO 1/ FW 1/Croo ha c

thain Paddy .75 Paddy (R.F) 2 .40nthif - - Paddy .20tbai i *sise .25 Maize .30Khnif - Pulses 4/ .10Rabi Wheat .15 Wheat .60Rabi - - Maize .10Babi Pulses 31 .10 Pulses I/ .10Rabi Mustard 02 Mustard .02

Total Crop Ares 1.27 1.82

lodel 4. Uixed CropPinA With Vecetables

8sea Ptecent and PIV 1 N l/Cm ha la

henif Paddy .75 Paddy (R.F) Vj .30ha"if - - Paddy .45sharif aize .20 Maize .17thuai Vegetables 3 .05 Vegetables 5j .08

Rabi 1heat .15 Wheat .50Rabi - - maire .10tabi - - Vegetables 6/ .07labi Pulses .05 Pulses 3 .09tabi Mustard .02 Mustard .02Zaid - - Vegetables / 08


11 MO - Future 'Witbout Project"' YW - Future "With Project".ain! .d Paddy, all other crops are under irrigation.Mainly armMainly ArbarMainly inbenrji and Chilli

ainly Onions

INDIA

B3IA. PUBLIC TUBEWELL PROJECT

Sumary of Fati Unit Eudcets at Finanisia Prices 1J(in Ruppees)

Model 4: Mixed CroppingModel 1: Heavy Soils Model 2: Mixed Crouping Model 3: Ligbt So,is With Veletabkes

* IWO 2/ j/ V ~Incremental F lacremental FLa 2I WO_ 21 1114 kcmal 2 NX4/ P Incr =wiMal(a) Gross Value of Production

- Main Crop 2,063 5,363 3,300 1,837 5,144 3,307 1,845 4,831 2,986 2.065 6,937 4,872- Ay-Product 491 1.182 691 402 964 562 384 912 528 368 974 __MTotal Value of Production 2.554 6,545 3,991 2,239 6,108 3,869 2,229 5,743 3,514 2,433 7,911 5,478

(b) Production Onerating CoAts- Purchased Inputs 985 1,811 826 869 1,973 1,104 871 1,850 979 956 2,407 1.451

(c) Grose N&Uain 1,569 4,734 3,165 1,370 4,135 2,765 1,358 3,893 2,535 1,477 5,504 4,027

(d) Value of Pamily Labor andDra£^t Auiwl- Family Labor 3J 1,561 2,081 520 1,341 1,883 542 1,262 1,708 446 1,390 2,590 1,200- Draft Animal /J 750 1.120 370 623 1.008 385 598 950 352 595 1.05 5

Sub-Total 2,311 3,201 890 1,964 2,891 927 1,860 2,658 798 1,985 3,685 1,700Z .m 6f ..m wi- ...a.. m...... nm .m.. * u.n.W

(e) Met Return to Fa1il Farm 51 -742 1,533 2,275 -594 1,244 1,838 -502 1,235 1,737 -508 1,819 2,327

IJ Unit Size: 1.0 ba.,I IWO - *future witbout" project; FW - "future with" project.I/ At financial price of Rs 10.50/Work-day.A/ At financial price of Rs 2 5.00/Pair-day.2/ Negative sign indicates that return for labor is less than the market

wage rate of Rs 10.50 per vork day.

-87-

Annex 3

INDIA


Detailed Cost Estimates and Schedules for Provisionof Principal Materials

List of Tables

I. New Tubewell Systems

2. tModernized Distribution Systems on Existing Tubewell Systems

3. Rehabilitation of Existing Tubewell, Systems

4. Dedicated Power Supply

5. Management Improvements

Note: All costs in this Annex are based on unit rates as of September 1985.

-88-

f. PORIMP 101-0 Me 1316 Tabe 3

& us ilt 4 0.5 s 264 36 W-0 -0 US-0 12-6 At-( 1314 '4 42

Lommm i~ ~ ~~~sa 2 3 4 a1to M 1to , W 4424 M4 no- 0i- M. aiL 30- 1OO

46"Mvjmoom a~~~4 44 2.9 WM 5491 1440 344 341 I 44,4 744 74L 16.9% 44a n. I13.s#.u

2a0.4W 44~~~~~~~~~~~~~~C 48 4 4. 14 US 14 34.11 LIS '4. MAl. an.. Is.# 44 rA.0 ?.aegm a541gm"mi LS isis to toa. to - mj m2. * 4.. wu.a 13. z.13 a,454.j 4.046 IWM NM Ls 0 70 M M I* M M 1.1 M~~~~~~~~~~~~~~~- 934 1.13. blI1. 3,14 1,111.1 .,,34.4 '.441.4

. . ,a ba. IA 4.u I2o.6 I,$* b=. 4MWO La4 1.4 61.2.1 Om5.. In.$3 am*in a.m. 3.341.# OAS5

I 1MMAN11 $&aOm L it is 34 to4 444 to4 34 I. 604 MA. 99.0 74.4 3.ak tooA .440.45 4I. gm pm Mai N MIINVn a a* x a im 3iwi. m %A sIn 464 4.44 de 24 4 3. )., 1m 1 .,0 I . 1 0.6 La

WMOM M~~~~~~~M u5 2.a lea 2445 M. 3.54 21W 37454 LS ]M 1234 a 42 43. 914 1 1.13. 46am a

t-Is. Am 11 UU" 4W Ls 4 it54 7 to4 to 1to W4 13 I-JI I 4 1294- 246.4 3-444 14.34. 145.4 4.6 UIXI. mmuNW 45 m * 14 LSa .41 M.6 16 203 26, LS2 V"54 744 76.4 M.$5. .499" Og.m.* .. 4. 44 4LOLOW11811MOMM is~~4 a4 le la to4 to to4 M 4.S MA. 33.4 31.4 5.43L 31.* 54.4 a". 4.

6,49,11111111 M Laa l- o o t 54614 334.0.1 4.07.17,121. 91 4 0.a71 4.4 OA4

5. Ls6U-1 44 le le 144 W4 M4 M3 I. ao11 49". 441. t54.9 43 95.4 MA 4.44 4,u.inSWnM 2 9 7 4 45 14 I . 44 34 .4 5.4 64 4. 314 44

ON&11KMgM Le4 4. 14 l4 1to to4 to4 so Ws - I-M.A 134154 174*4.4 7494 144.4 ?.nM. 4.6*

4.~~~~W14ah31W 45 44~~~~~~~~i if 540 too W6 to4 M1 3 - 24 t.13L 014 2. " 1 A

I.4 i * 5 - 4 4 7. 144 1W to M4 4. Ime414 142 111, I.Mf, 1.454. 1,.13. G.311 46

LMMWUMOMM .~~~I loa mm 54e 1446 46m 56M UMNO --W. 2144 22.4U. 1173'.4 I2544 13.4M M.04 4.44 4.5.LUW U 15 - ha 290 494 145 444 444 1-4 24 -15445, 2409. 13.w 3 2.6 .4O a4144 4M4. am -15 Is 44 29 T. M4 M 444 IN 3. MA 1. 245.4 14.4 3154. 314.4 1-3.4 4.6SM16 11 s w 1 Ng 1141 MM SWS 4441 445 16W INM 41- WA. 44 9614 WM*13. .13.94.544.4 $.134 4am5

F. 11 w ufuwuin M* 164W 14.411 1.40 SON44 3346439.6 1.4M 46 1. 46.47,41346.4 I.51.434,2.6444.ij7241,=4 it.4g.4 041 4a.0164 456 1 11 .1 .4 .4 264 26 1.4 4. .4144 294 194.4 2 -49. M4.4 134 0.4.

1.. 0 1 a mm w * 1 a& MM 54X0 40401 344W MAN &b 34 1-61*4 2144 214.4 134 MM.4 t,d*.o 1..4 4.64.1. Comm= 4p AM in B 134 To.4 1.15324 M12.444o 3.6 4.1,6 .6 . 12.94 3L 4. ,3756431.0 1431,14 MILO1 4.S64

04.aa aeG m 9 246434 514 . 4.W 4MW 29M 44 - 241I 34.s 7 ~ 237 ~.gj 1.37 11 8.L 4 4111.64

4. U- -~ ~ ~~ ~~ ~ Z- I. 6451w 446)4 U4W 443 2.314 .4W 3.414 .459 2.45 2.64 14.44 4.1 - 34.4 *.ftt 'M, *Oft 444. 445"9 3M 544 .4

B1IL PUBILIC JUERllLL P"=VmonI RD DSthITUTIOn SYSTE ON UISTiWG TUD1Um.S

DtaUed Cost Table(RUPS '000)

0 .mstltu ,a COS44 Pb.IAt 1 2 3 4 5 7 TO cot 1 2 3 4 5 6 7 To u .

A. DI MO c- o1. 311313111 ams

. RC KPE LS - 60 140 200 200 200 200 2.000 3 - 190.0 420.0 600.0 00.0 60. 600.0 o# 0. 02. Lim 5 LS - 60 140 200 20 200 200 140 2 - 200 20 400.0 4000 40.0 400.0 M.0004 0.05 03. FMhW N mmIC LS - 60 t1 200 200 200 200 1.000 1.5 - 90.0 210.0 300.0 100.# 300.0 00.0 400.0 0A 04. _ CU5 1 U CUE Ls - 60 t4 200 200 200 200 10too 12 - 720.0 1690.0 2*400 2,400.0 2oa.0.0 2#00 t1200.0 0.05 0

e-tal SmDtI5 cIWB -- 1110.0 2s90e0 3.700*0 3ttoi00 3700,0 h7t.0 0.01. PMK 3 PSIDIIU SYSTi

1. W 2010 PK PIK1 a - 2360 Z5.230 78.900 71.900 78#900 70O900 Memo 0.044 - 1041.5 24.1 3.47n.6 3,471.4 3,4n76 34t1.6 1720.B0 9.1 0o42. OKIr c 161 e P0 PPIK - 220.00 S100X 7N0NW0 740.500 740.00 740.500 3.M700.O o.02 - 6.300.0*5.02.0 21.474. 21474. 21W4.5 21,44.5 *07,100.9 0o1 0.63. SlfPLT U *6110ue PMC RISEI 13M29 - 1.200 2.800 4.000 4.000 4.000 4.000 2000 0.05 * 60.- 140.0 200.0 200.4 20o. 200. 1400.04 0-05 0.64. WIE 1 FM1 LM * 60 140 200 200 200 200 l.o0 3 - 100.0 4 0 600* 600 60.0 600.0 3.000.9 0.0 0. cos. WIBI 03 - 132.600 312200 446.200 446.280 446.210 446.200 2.230.000 0.005 6 663.4 14561.0 2231,4 2231.4 24211,4 3.211.4 1150.0 0.05 06. LOW MM FnILII PVt - 230a000 560.O 800.500 00.500 000.500 0050o0 40.0 0.001 - 238.0 560.0 800.5 800.5 100.5 O.s 4., 0.0e 5 0

S-TOa P11 SIurtI mmT

8*.562-9 20.W1.1 287110 20718.07 23.020 278 14.00.0C. WILIUT 0815

1. SPPI.! IJ4L*L 0011 11 - 1.200 2.800 4.000 4.0to 40ee 4.0P0 2e.eoo 0.3 - 360.0 t40e0 1.200.0 1.200 1.200.0 2,200.0 0.000. 0.05 02. 1193511 OF5C801 1t1I - I200 2a00t 400o0 4.000 4.000 4*.00 20.000 1.1 - 2,2.0 3,060.0 4.400.94.40.0 4#.4* 4.400.0 700.0 005 0

liTOta 11115 08013 1,660.0 3I92.0 30400.9 544.400 5.4000 1.600*4 21,00.

1. CeT IM f Wmm C aS$ 0 W.00 0 o l.t0 0750 .1071000 1.170.0 ll.O170A 5e400 .00 - 1.0710- 2.50.0 345123 3.5224 3.5*2.3 3W13 V7A 0 04. 0

l otaW mm Ol7BSE - 1*07 o 2.*0. 3512 3,512. 3 52.3 1w. 7640.0

.. _ME ,i86313T

1. 10t U TWTA mm S LS - ,21 2,52 4.10 400 410 40 4.200 20.784 1 - 1.2-0 291.01t 4.13.0 4,10.0 4.1890 410*. 20.34.0 0.05 0

otA-Totl IIBIIEI As 601lltStWII - 1.23.0 21.5.0 418.04 14.1.0 413.0 4.1800 20.34.0

tal lS'aJIINt Wls -3.636.9 32.014.1 45773.1 .570.3 457*3 45oM.3 . W23 .71e.

Total t 13.636.932.034.1 45.770345.77 J 445.770,77 0o 5 2 0 4 5 .3 2*

tNDILABINIR PUBLIC TU8EFLL tDOJECT

RERABILTATION OF EXISTING TUrEWELL SYSTESDetailed Cost Table

(RUPEES '000)

ats.aft

_______________ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ *1co . for.

thut 1 2 a 4 5 6 7 TOtal 03tCca 1 2 -3 4 S 6 7 41 8 .

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4. 191Y OF 200 0 3 CASINs N 1.225 2.625 2.450 1575 1.610 - - 9.4A5 0.3 367.5 787.5 7m.0 472.5 43. - - 2v45 0.05 0

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6. RWRfY 1E MKI1S IrEN 350 750 700 450 460 - - 2.710 0l.s 52,5 112.5 105.0 67,5 69.0 - 406.5 0.05 0

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8. UIU 1TB LS 35 75 70 45 46 - - 271 2.5 87.S 1%7.5 175.0 112.5 115.4 - 677.5 0.05 07

9. Ni M WIESF FOR EI SET MRS 20 600 560 360 360 - - 2.168 0.05 14.0 30.0 0.e0 18.0 18.4 - - 108.4 0AS 0

t0. F OFJEL il3 t.225 2,625 2M450 1,575 1.610 - - 9.485 0.25 146.3 6U6.3 62 5 393.8 402.5 * - 2,371.3 0.05 0

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13. NIIM DES FOR FEW ~ S ESING EBMIIT C11 N S 1.750 3,750 3.5OO 2.250 29300 - - 13.#5 0.2 350.0 750.0 700. 450.0 40.0 - 2,710.0 0.05 0

14. -KCN PUPS LS 25 50 75 75 50 - - 275 25 625.0 1,250.0 1.85,0 1.75,0 250.4 - 6h75.0 0.5 0

15,18IS. FCR 1AINSIM.lATION Ls 25 5s 75 75 50 - - 275 1 25.0 50.0 75.0 7LO 50.0 - - 275.0 0.05 0

1S. IEU SlFTA mm S 00 B00 800 M@ 573 - - 3sn7 3 I#W.0 2#400.0 2Co-o. 2*6400. Jzn9.0 - 41. - 0 .es o

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is. TT8r3 MS IHSA.TION LS 50 100 1oo t0o 59 - - 409 I 50.0 100.0 too.0 100.0 59.0 - - 409.0 0.5 0

19. NUWP NE CWUPTE LS 13 425 400 120 133 - - 1.213 14.5 1,957.5 bo162.3 MOM80 1740.0 19929.5 - 17.38.5 0.95 0

lotl KACM nSf 901.3 ;9.606.3 1437.5 13,06.3 10-56.0 - 72,047.3

8. WAI Sf135

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2. fewAI OF WINI CNI S1ISE L5 200 300 N00 300 213 - 1313 25 MOMo 7,500.0 7t50.0 7500.e0 5.325. - 32,35.0 0.85 0

568Totl 11873 5wJ 5S00.0 0.700o 70e0.o 8,700.0 6809o * - 38,709.0

C. am am W EXSTIINS gtS

3. 145 FE AM" 40 80 120 120 40 - - 400 30 1.200,0 2.400O0 3.60.0 3h00.0 1200.0 - - J2000.0 4.05 0

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6-Totl MCCES NMS TO EXISTINI IELLS 1,W.0 3.274,0 4s.11 -0 9 1. *37,0 - - 1h30.0

D. ES111EtIB An A8rNINSTrATION

1. 105 OF 0AL COSTS LB 1.649 3.150 3.305 2.7l 1.932 - - 12.715 1 1s49.0 3,158.0 3.15.0 2U710o 1.932.0 - - J2#715." 0-05 0

Sub-to.l FIE E11INB MS AINISISTBATIO 1.649,0 3#158.0 13,3.0 2,671.0 1.932,0 - - 171540

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-931-

INDIA

AIlAR PUBLIC TUBIVELL PRO3JCT

Draft Terms of &efgrezce - Tuewll Wing (MID) Manaaamant Study

Table of C,onptaxts

latroduction.- Background.

*- Study Objectives- Management StudyManagement Study DeterminantsInformation Management- Background- Project RecommendationsFinancial Management- BackgroundRecommendation- Financial MonitoringOrganization- Background- Consultants' TasksMonitoring and Evaluation- Consultants' TasksTraining- Consultants' TasksWater Charges- Consultants' TasksConditions of Employment

Annex 4-94- Page 1

INDIA


Draft Terms of Reference - Tubewell Wing (MID) MnaMement Study

Introduction

1. Background. The project introduces improved technology for new andmodernized tubewell systems which will make the irrigation service moreefficient and, provide public tubwell systems which are predictably m-anage-able. In addition, the project includes a comprehensive program forrehabilitating and modernizing ezisting public tubewells and provision ofdedicated power lines to most public tubewells in the State. Under theproject, public tubewells will be operated as clusters and thus the organiza-tion. procedures for monitoring and evaluating performance, and assessmentand collection of water charges would be changed compared to present prac-tices as undertaken under the Bihar Water Development Corporation.

2. The GOB has recognized that when the existing technologies have beensubstantially improved. potential benefits can only be fully obtained ifmanagement can be made more effective and efficient. Since, the new tech-nologies provide a predictable service, performance of management staff canbe systematically evaluated and beneficiaries can assess whether they aregetting the service promised. In particular. management improvements can bestructured to focus on specific measures which set standards of responrsibility and accountability and may also introduce incentives in the manage-ment procedures. Thus. GOB plans to: (i) strengthen the agencies responsiblefor execution and management of the public groundwater development;(ii) establish procedures to use and take full advantage of the tubewellusers' organization at individual tubewell and tubewell cluster levels par-ticularly given the history and problems which have affected the performauceof the BWDC; (iii) establish procedures to monitor progress of projectimplementation, the irrigation service provided and realization of projectbenefits; and (iv) formalize the linkages between the Tubewell Wing (MID) andother agencies (particularly the BSEB and Bihar agricultural extension serv-ices) so that the implementation and performance of public tubewells can beeffectively and systematically monitored.

3. Already the GOB has taken far reaching organizational changes aimedat winding up the BWDC and replacing It with a line organization which willbe appropriately staffed and provided w;t- -he necessary services andfacilities to undertake its responsibilitie*. Considerable progress has beenmade in identifying areas where the new TW en be strengthened compared withthe erstwhile BWDC. However, the GOB h.e -- :ognized that there are limits-tions to management improvements which can be generated from within anorganization particularly given the history and problems which have affectedthe performance of the BWDC. The GOB believe that there will be considerable

~~~ _95_ ~~~~~~~Anuez 4Page 2

advantages in having independent consultants to assist the new TW in theanalysis of the management problems within the public tubewell sector overthe last decade. Such consultants would provide a group of experiencedmulti-disciplinary professionals who are not burdened with routineadministrative duties and who can evaluate the organization and managementproblems of the TW from an outside perspective.

Study Objectives

4. The basic objectives of the study would be to provide the TW withrecommendations on mAnagement improvements to improve the effectiveness andefficiency of the existing TW administration and to ensure that project (andexisting) works can be managed to achi2ve projected benefits.

MaMnaement Study

5. The GOB would retain the services of a Consultant Group experiencedin all aspects of management consultancy relevant to the needs of theTubewell Wing. In addition to technical and management expertise, the Con-sultants would need to be familiar with the practices and procedures of theBihar Government Departments, particularly the minor irrigation sub-sector(including legislation related to land and irrigation). The study wouldfirst undertake a preliminary review of the problems which caused shortfallsin performance of the erstwhile BWDC. the present structure of the new TWorganization, and predicted workload over the project period. This would befollowed by an in-depth study of the main areas for possible organizationaland management improvements identified under the preliminary review. Thein-depth studies would result in a comprehensive report which would recommendpractical improvements, and detail procedures and arrangements to implementsuch improvements. The Consultants would have only an advisory role; respon-sibility for deciding what would and should be done, and a timetable formaking changes, would rest with the TW/GOB.

6. The existing and proposed organization structure and staffing underthe project are summarized in para 6.03 of the Staff Appraisal Report (SAR).The Management Study would review, evaluate and make recommendations in thefollowing main areas:

(a) Review the objectives and recommendations outlined in the SAR andSupplementary Data Volume (SDV) dealing with management and technicalimprovements under the project and any other information made avail-able by the GOB, and evaluate what changes can be made given practi-cal constraints inherent in the existing organization structure*staffing levels, and Government/management procedures, and rules andregulations governing the operation of a line Government Departmentin the State.

(b) Identify, evaluate and recommend changes which could be made in themanagement and organization structure of the TW to enable it to moreefficiently implement the construction for new works to the agreedschedule and undertake effective operation and preventive maintenanceof new and existing works under the project up to about March 1994.In particular, the study would identify and review existing proposalsfor establishing organization structure and staffing requirements and

-96- -Anes 4Page 3

evaluate whether the existing workload norms are realistic given thepractical, physical, technical and legal determinants which affectpublic tubewell development and management in the project area.

(c) Formulate guidelines and identify categories of data collectionrequired to monitor, evaluate and compare various aspects of manage-ment performance both in terms of physical and financial parameters.

Cd) Undertake preliminary review of the following management problemsor issues identified at appraisal: (i) changes in the organizationstructure or work units which will result from the introduction ofimproved public tubewell technology and dedicated power lines inBihar; Cii) separation of construction and O&Z activities; (iii)arrangements and procedures for using tubewell users' associations inthe managemant of individual tubewell units; (iv) problems related tounionization or any other special interest group affecting staffwithin the TW, particularly where such grouping affects staff manninglevels; (v) legislation. including terms and conditions of staffemployment, as a constraint to organization and staffing changes;and (vi) assessment, billing and collection of water charges.

(e) Review of existing procedures for various work activities as prac-tised under the BWDC and the effectiveness of these procedures infixing responsibility and accountability of staff; evaluation of theTW accounting procedures including identification of shortcomings andrecommend changes so that costs of TW operations can be broken downin sufficient detail to enable sound financial management.

(f) Review present,management training provisions and recommend improve-ments.

Management Study Determinants

7. In identifying and evaluating proposals to improve the managementcapability of the TW, the following determinants would need special atten-tion:

Information ManaSement

8. Backaround. Over the last decade, the performance of publictubewells in Bihar under the management of BWDC has deteriorated such thatthe main actions tend to be curative primarily to keep as many tubevells inoperation as possible. The magnitude of problems (particularly at fieldlevel) has been such that systematic information required by management haseither not been collected regularly or is incomplete such that appropriatemanagement decisions cannot be made. The consequences of these shortcomingshave been insufficient information at management level to identify the causesof problems and thus an inability by public tubewell authorities to present acomprehensive case supporting essential actions needed either withia thatorganization or by Government.

9. Project Recommendations. Formulate a comprehensive but simplereporting procedure for all work units in the TW organization so that: (i)each unit cat quantify its performance and requirements on a continuousbasis; (ii) information can be passed up the management structure in such

_97_ Annex 4Page 4

format and in a timely manner so that managers at all levels can effectivelyundertake their duties; and (iii) present data in guch a format that it canbe processed quickly and cross-checked (where possible) for accuracy andconsistency. In addition. procedures at each management level for reviewinginformation and for taking appropriate action need to be formalized; suchprocedures would include provisons for enacting any management decisionparticularly those which affect project performance and need to be monitoredat the next higher level in the management structure.

10. Consultants' Task. The existing information procedures used bymanagement would be reviewed and assessed as to their value as a managementtool. The data requireiments for effective management of the TW in terms oftechnical, operational. financial and administrative determinants would beidentified and appropriate information systems formulated trz'ether withdetailed formats to gather and present information required. Special atten-tion would be given to: (i) the amount and frequency of data collection sothat only the information required at each management level is processed; and(ii) the type of data collected to ensure that all data required to make amanagement decision is available and that full advantage can be taken of anydata collection exercise (i.e. management information program should betested against routine monitoring and evaluation activities (para 14) toensure that full use can be made of any data collected and duplicated datacollection is avoided).

Financial Management

11. Background. The GOB did not make adequate budget provisions to theBWDC to enable it to operate as a financially viable organization. One ofthe reasons for this shortcoming is thought to be the poor quality of finan-cial monitoring and accounting within the BWDC. Sufficient information maynot have been available for the BWDC to formulate a comprehensive managementplan which could be translated into a request to Government for the necessaryfunds to undertake the responsibilities assigned to the authority for publicgroundwater development.

Recommendation

12. Financial Monitoring. To enable the project management to finan-cially monitor O&M activities. the existing accounting procedures in the TW(and the MID) need to be strengthened. The Consultants would formulateprocedures to collect and present data to support the O&M budget request ofthe TW to Government so as to enable public tubewell systems to be effec-tively and efficiently operated and maintained to such standards thatpredicted benefits can be achieved. The Consultants will not be responsiblefor deciding the cost norms for the various activities of the TW which willbe decided by the TI technical staff and management. Thus, in this respect.the Consultants would formulate procedures and data presentation formats suchthat establishment, energy and maintenance costs can be accounted for underseparate headings and processed so that O&H costs for individual tubewellsand by tubewell clusters. O&M divisions and circles can be identified.Accounting procedures would also be structured to enable OM costs for exist-ing and new works to be separated so that costs can be analyzed. This willenable the GOB to establish what portion of O&M costs can be attributed toinefficiencies in management and what portion relates to technical or otherlimitations. The GOB would then have data to assess the cost of the various

-98- Alne.4Page 5

activities under the TW and the cost of any inefficiencies. The Consultantswould also recommend how accounts can be kept so that GOB/TW can identifycosts of managing new and modernized tubewells and rehabilitated tubewells tobe constructed under the project as well as the costs of the overall publictubewell irrigation program. The procedures should be such that, the MIDwill have a basis for estimated realistic O&M budget requests for the variousexisting and new works. Finally. the Consultants would formulate proceduresand detail data collection methods so that the TW can collect revenuereceived from water charges on a seasonal basis and relate revenue assessmentand collection to O&M costs of tubewell operatior. through an annual irriga-tion cycle. -

Organization

13. Background. In the setting up of the new TW. the organizationalstructure of the BWDC will be considerably strengthened; at headquarters newcentrally managed units will be established and at field leve, operation andmaintenance (particularly below the sub-divisional level) will be improvedand tubewell users' associations will be set up. The changes proposed underthe project will introduce new or improved organizational linkages comparedto those within the BWDC structure.

14. Consultants' Tasks. Review and evaluate the present (and/orproposed) organization structure of the TW and arrangements and timing forintroducing the changes agreed under the project. In particular, they willreview and, if necessary, advise on the proposed arrangements for linkagesbetween TW staff and tubewell users' organization so that: (i) works can beimplemented effectively and users are fully informed of the proposed workprogram; (ii) users understand their responsibility and procedures for theirrole under the project include cost recovery; and (iii) specific and detailedprocedures are available for O&M at individual tubewell level.

Monitoring ad Evaluation

15. The project provides staff and facilities for M&E of agricultural,technical and socio-economic performance in the project area. The existingTraining and Monitoring and Evaluation Unit (TMEU) would be strengthened atheadquarters of the TW with three field units set up at regional level. TheTMEU would be responsible for collecting and analyzing data on projectimplementation and performance, particularly with respect to the quantity andquality of the irrigation service. The operator of each tubewell or riverlift system would assist the TMEU by keeping certain daily and seasonalrecords which reflect aspects of agricultural performance to be monitored bythe M&E Unit to be established in the Planning Department of the StateSecretariat.

16. Consultants' Task. In the course of all studies undertaken by theConsultants, they would identify activities which need to be monitored andevaluated on a regular basis to enable management performance to beevaluated. In particular. they would make recommendations on: (i) theformat and how much data need be collected so that any task to be monitoredcan be statistically analyzea; and (ii) recommend how. when. and in whatform, the monitoring data should be made available to various levels ofmanagement. Thus, once the task to be monitored has been identified, the

_99_ - Annex 4Page 6

Consultants would assist the TW in the preparation of necessary data collec-tion sheets; frequency of collection of data; method of evaluation; howmanagement can use the processed data; and what feedback procedures should beinstituted to pass results back through the various levels of TW staff downto the data collectors. The specific management aim of monitoring andevaluation would be to provide a data base to enable introduction of account-ability fo-v physical or financial performance of public tubewell developmentand any other activities undertaken by TW management.

Training

17. At present, there are no formal management training courses in theTW. It is assumed that as technical staff are promoted, they will learnmanagement techniques on the job. The consequence of this practice has beenlittle or no chdnge of management procedures compared to long establishedpractises in force in typical line departments of GOB (as used in the BWDC).Since senior TW staff have no formal training in modern management techniques(particularly financial management), without any specialized advice anaassistance, it is likely that they may only be able to make limited improve-ments (accepted with or without modifications by GOB) to present managementeffectiveness.

18. Consultants' Task. The project provided funds for management train-ing for senior TW staff. When the review work under the Management Study hasbeen completed and the recommendations of the study generally agreed byW/GOB, the Consultants will prepare the curricula for short managementcourses for Senior TW staff (and other staff if requested). The outlinecurricula for the courses will be presented in the Final Report to beprepared by the Consultants. If requested by GOB. and under separate termsof reference, GOB may request the consultants to assist in the organizationand running of training courses recommended under the study.

Water CharRes

19. The procedures followed under the BWDC for the assessment. billingand collection of water charges are inefficient, time-consuming and difficultfor management to monitor. The present procedures have been based on thoseused by Revenue authorities within the Irrigation Department ror surfaceirrigation systems and have not been amended to meet the special requirementsof public tubewells. In addition. the BWDC staff responsible for collectionhave not been given the legal power vested in Irrigation Revenue staff andtake appropriate action against farmers who default in payment of watercharges. Present procedures are detailed in Annex 10 (SDV). Cost recoveryunder the project are summarized in paras 8.10 to 8.19 of- the Main Report.

20. Consultants' Tasks. The consultants will review the existing proce-dures for assessing, billing and collecting water charges for irrigationservices provided by public tubewells. identify the shortcomings in thepresent system, and formulate proposals to streamline and simplify theseprocedures such that:

(i) Assessments can be made and checked in a logicel and timely mannergiven the system adopted by the TW for charging for water (i.e. ifwater is to be charged on the basis of irrigated area by crops, theCons'iltants will identify what data needs to be collected by TW and

Annex 4Page 7

establish the time schedule within which can such data be collectedby the tubewell operators or other TW staff).

(ii) Farmers can be billed for irrigation service within whatever periodthe consultants deem to be practical from the end of a crop season orthe date when an assessment can be made (i.e. for changes which arenot related to full crop seasons).

(iii) Collection of water charges can be made promptly by whateverauthority is given the responsibility for making such collection.

tiv) Farmers know of the procedures for appealing against assessment suchappeal procedures so that appeals can be heard and decided timely.

(v) The status of water charge assessment. billing and collection can bemonitored and evaluated by the TW in a timely manner so that manage-ment can be kept informed of progress and appropriate action takenshould collection deteriorate from agreed norms, set both in terms oflevel and timeliness of recovery.

In addition. the consultants would assess and recommend what data should becollected and/or monitored by the TW for the study of the system of watercharges to be undertaken under the project (para 8.15 of the Main Report).

Conditions of Employment

21. The Consultant Group would be responsible to the Chief Engineer. TWand would be directed on a day-to-day basis through the Project Co-ordinatoror another suitable qualified and senior officer designated by the CE (TW).A Management Study Committee, including Senior TW Officers and other repre-sentatives nominated by GOB, would be set up and meet on a regular basis todirect and to maintain close liaison with the Consultants as the studyproceeds. The Consultants are expected to be retained by December 31, 1986.Subject to the indings of the Preliminary Report to be prepared by June 30.1987 and the detailed tasks that GOB/TW would like the Consultants to reviewand evaluate, the Consultants would prepare a draft Final Report by December31, 1987. The date of the Final Report will be dee-ided after finalizing theConsultants work program. The draft Final Report would be sent to IDA forits review and comments, and taking into account IDA's comments, the G0B/TWwould take appropriate decisions including an agreed timetable. Thetimetable would be made available to IDA for its review and coments by aboutJune 30. 1988.

22. The staffing of the the Consultant Group would consist of qualifiedprofessionals in the field of Management Studies, sufficient to undertake thetasks outlined in these draft Terms of Reference. In addition to generalmanagement skills, the Consultants would require specialists in the field oflaw; administration; office equipment and facilities; organization of Govern-ment departments, particularly those following the Bihar Public Work Depart-ment procedures; and monitoring and evaluation.

-101- Annex 4Page 8

23. The Consultants would be provided with sufficient transportation*equipment and facilities to efficiently undertake the studies; the costs ofthese requirements would be included in the fees agreed for the Consultancy.The TW would provide the necessary assistance to enable the Consultant Groupto undertake its tasks and fulfill its obligations.

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