FOR OFFICIAL USE ONLY Report No: ICR00005733 IMPLEMENTATION COMPLETION AND RESULTS REPORT IDA-64630, IDA-64640 ON A CREDIT IN THE AMOUNT OF SDR 115.2 MILLION AND US$90.4 MILLION (US$250 MILLION EQUIVALENT) TO INDIA FOR THE FIRST RESILIENT KERALA PROGRAM DEVELOPMENT POLICY OPERATION June 13, 2022 Urban, Resilience, and Land Global Practice South Asia Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) CURRENCY EQUIVALENTS (Exchange Rate Effective March 28, 2022) Currency Unit = Indian Rupees (INR) US$1 = INR 76.2065 INDIA GOVERNMENT FISCAL YEAR April 1 – March 31 Regional Vice President: Hartwig Schafer Country Director: Hideki Mori Regional Director: John A. Roome Practice Manager: Abhas Kumar Jha Task Team Leaders: Elif Ayhan, Deepak Singh, Balakrishna Menon Parameswaran ICR Main Contributors: Yoko Okura, Illika Sahu The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank AEU Agroecological Unit AEZ Agroecological Zone AF Additional Financing AFD French Development Agency (Agence Française de Développement) AIIB Asian Infrastructure Investment Bank AMRUT Atal Mission for Rejuvenation and Urban Transformation CEO Chief Executive Officer CPF Country Partnership Framework CRN Core Road Network CSO Civil Society Organization DoA Department of Agriculture DPO Development Policy Operation GIS Geographic Information System GoI Government of India GoK Government of Kerala ICR Implementation Completion and Results Report IDFC Infrastructure Development Finance Company IFC International Finance Corporation IPF Investment Project Financing ISR Implementation Status and Results Report JRDNA Joint Rapid Damage and Needs Assessment KfW German Development Bank (Kreditanstalt für Wiederaufbau) KIIFB Kerala Infrastructure Investment Fund Board KWA Kerala Water Authority LSGD Local Self-Government Department O&M Operation and Maintenance OPCS Operations Policy and Country Services PD Program Document PDNA Post-Disaster Needs Assessment PDO Program Development Objective PforR Program-for-Results PRICE Project Information and Cost Estimation PWD Public Works Department RBCMA River Basin Conservation and Management Authority RKDP Rebuild Kerala Development Programme RKI Rebuild Kerala Initiative SCD Systematic Country Diagnostic SDMA State Disaster Management Authority SPF State Partnership Framework TA Technical Assistance ULB Urban Local Body WRD Water Resources Department The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) TABLE OF CONTENTS DATA SHEET ......................................................................................................................... 1 I. PROGRAM CONTEXT AND DEVELOPMENT OBJECTIVES ............................................... 5 II. ASSESSMENT OF KEY PROGRAM DESIGN AND OUTCOMES.......................................... 9 III. OTHER OUTCOMES AND IMPACTS ............................................................................ 23 IV. BANK PERFORMANCE............................................................................................... 26 V. RISK TO SUSTAINABILITY OF DEVELOPMENT OUTCOMES .......................................... 27 VI. LESSONS AND NEXT PHASE ....................................................................................... 28 ANNEX 1. RESULTS FRAMEWORK ........................................................................................ 30 ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION PROCESSES...... 41 ANNEX 3. BORROWER, CO-FINANCIERS, AND OTHER DEVELOPMENT PARTNERS’/STAKEHOLDERS’ COMMENTS ........................................................................... 45 ANNEX 4. SUPPORTING DOCUMENTS ................................................................................. 54 ANNEX 5. DPO1 PRIOR ACTIONS AND INDICATIVE TRIGGERS FOR DPO2 .............................. 57 ANNEX 6. WORLD BANK AND STATE OF KERALA REFORM TRAJECTORY TOWARDS DISASTER AND CLIMATE RESILIENCE ................................................................................................... 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) . . DATA SHEET BASIC INFORMATION Product Information Project ID Program Name P169907 First Resilient Kerala Program Development Policy Operation Country Financing Instrument India Development Policy Lending DPF Options Programmatic Regular Deferred Drawdown Option Catastrophic Deferred Drawdown Option No No No Crisis or Post Conflict Sub-National Lending Special Development Policy Lending Yes Yes No Organizations Borrower Implementing Agency India State of Kerala Program Development Objective (PDO) Program Development Objective (PDO) The Program Development Objective (PDO) is to enhance the State of Kerala's resilience against the impacts of natural disasters and climate change. PROGRAM FINANCING DATA (USD) FINANCE_TBL Approved Amount Actual Disbursed World Bank Administered Financing 90,400,000 90,400,000 IDA-64640 Page 1 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) 159,600,000 158,035,968 IDA-64630 Total 250,000,000 248,435,968 KEY DATES Concept Review Decision Review Approval Effectiveness Original Closing Actual Closing 07-Mar-2019 02-May-2019 27-Jun-2019 21-Aug-2019 01-Feb-2021 30-Jun-2021 RATINGS SUMMARY Program Performance Overall Outcome Relevance of Prior Actions Achievement of Objectives (Efficacy) Satisfactory Highly Satisfactory Satisfactory Bank Performance Satisfactory RATINGS OF PROJECT PERFORMANCE IN ISRs Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 19-Dec-2019 Satisfactory Satisfactory 248.21 02 14-Nov-2020 Satisfactory Moderately Satisfactory 248.21 03 22-Mar-2021 Satisfactory Satisfactory 248.21 SECTORS AND THEMES Sectors Mitigation Co- Adaptation Co- Major Sector/Sector (%) benefits (%) benefits (%) SECTOR0_TBL Agriculture, Fishing and Forestry 13 6.50 6.50 Other Agriculture, Fishing and Forestry 13 50 50 Page 2 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) SECTOR0_TBL Public Administration 50 0.00 47.00 Sub-National Government 12 0 75 Other Public Administration 38 0 100 SECTOR0_TBL Transportation 12 0.00 12.00 Rural and Inter-Urban Roads 12 0 100 SECTOR0_TBL Water, Sanitation and Waste Management 25 0.00 18.75 Other Water Supply, Sanitation and Waste 25 0 75 Management Themes Major Theme/ Theme (Level 2)/ Theme (Level 3) (%) Finance 25 Finance for Development 25 Disaster Risk Finance 13 Agriculture Finance 13 Human Development and Gender 13 Gender 13 Urban and Rural Development 88 Urban Development 25 Urban Planning 25 Disaster Risk Management 88 Disaster Risk Reduction 63 Disaster Preparedness 38 Environment and Natural Resource Management 91 Climate change 91 Mitigation 6 Adaptation 84 Water Resource Management 25 Water Institutions, Policies and Reform 25 Page 3 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) ACCOUNTABILITY AND DECISION MAKING Role At Approval At ICR Regional Vice President: Hartwig Schafer Hartwig Schafer Country Director: Junaid Kamal Ahmad Hideki Mori Director: Ede Jorge Ijjasz-Vasquez John A. Roome Practice Manager: Christoph Pusch Abhas Kumar Jha Elif Ayhan, Deepak Singh, Elif Ayhan, Balakrishna Menon Task Team Leader(s): Balakrishna Menon Parameswaran Parameswaran . Page 4 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) I. PROGRAM CONTEXT AND DEVELOPMENT OBJECTIVES 1. This Implementation Completion and Results Report (ICR) evaluates the first operation of an intended programmatic series of two Development Policy Operations (DPOs) 1 , designed to provide support to the State of Kerala, India, on policy and institutional reform to enhance the state’s resilience against the impacts of natural disasters and climate change. DPO2 was dropped following a change in the financing strategy of the Government of India (GoI) in 2020 to shift from state-level DPOs to other financing instruments. DPO2 was replaced by the Resilient Kerala Program for Results (PforR, P174778) in 2021 and a successive Additional Financing (AF, P177980), currently under preparation. A. Context at Appraisal Overall context 2. At appraisal, the State of Kerala faced challenges in building communities and infrastructure resilient to the impacts of natural disasters and climate change. The state was vulnerable to the increasing intensity and frequency of flooding during the monsoon period, rising urban temperatures, and coastal erosion along the highly populated coastline. Kerala had high average annual precipitation of around 3,000 millimeters and experienced 90 percent of the rainfall during two monsoon periods in a year. The state’s diverse topography and drastic elevation difference, ranging from high mountain ranges to lowland coastal areas three meters below sea level, caused peak runoff. Rapid flooding was a significant risk with water flowing into the flat terrain in the western coast. 3. The heavy monsoons of 2018 led to the worst flooding in Kerala in nearly a century, affecting almost 5.4 million people or one-sixth of the state’s population. A Joint Rapid Damage and Needs Assessment (JRDNA) was conducted in September 2018 by the Government of Kerala (GoK), supported by the World Bank and the Asian Development Bank (ADB). The JRDNA informed a comprehensive Post- Disaster Needs Assessment (PDNA)2, led by the United Nations in October 2018, which estimated the total recovery needs at US$4.4 billion. Insufficient institutional and financial capacities and mechanisms to deal with disasters and climate change, especially for key infrastructure and services, magnified the flooding impact. Moreover, inadequate water resource management, poor early warning systems and protocols, unplanned development in disaster-prone areas, and poor-quality infrastructure amplified the losses. The sectors that suffered the worst damages were transport, infrastructure, livelihoods, and housing. 4. Following the 2018 floods and needs assessments, the GoK established the Rebuild Kerala Initiative (RKI), a dedicated state-level institutional agency led by the Chief Minister, to formulate and coordinate interventions that enhance the state’s resilience to natural disasters and climate change. The 2018 floods gave the GoK momentum to act on long-pending policy and institutional reforms necessary to address the drivers of disaster and climate change risks faced by the state. The RKI was tasked with coordinating the transformational shift of the state from reactionary initiatives post disasters toward risk-informed sustainable development through policies, institutions, and systems. 5. The RKI, with support from the World Bank, developed the Rebuild Kerala Development Programme (RKDP) in 2019, a comprehensive government program to address the key drivers of natural disasters and climate change and strengthen the state’s preparedness against future disasters and 1The first and second operations of the DPO series are hereby referred to as DPO1 and DPO2, respectively. 2 UNDP. 2018. Kerala Post Disaster Needs Assessment. October 2018. https://www.undp.org/publications/post-disaster-needs- assessment-kerala Page 5 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) climate change impacts. The development of the RKDP was informed by the JRDNA and PDNA and benefited from extensive public consultations. The RKDP laid out GoK’s roadmap of cross-cutting and sector-based policy, regulatory, and institutional actions necessary for a resilient and sustainable recovery. The RKDP prioritized the most affected sectors, such as integrated water resource management, water supply and sanitation, urban, transportation, forestry, agriculture, animal husbandry, fisheries, livelihoods, land, as well as cross-cutting areas of disaster risk management and resilience, environment and climate change, institutional efficiency and resilience, and open data. It further outlined priority activities under these sectors and areas, implementation modalities, and financing and partnership needs. Rationale for Bank Support 6. This DPO series was designed to support the RKI in operationalizing the GoK’s RKDP, through reforms across key sectors such as finance, disaster risk management, water resource management, agriculture, roads, land, urban, and water supply and sanitation. The World Bank’s close engagement in developing the JRDNA and RKDP strongly positioned it to support the RKDP’s operationalization by building on accumulated knowledge and relationships. The GoK and World Bank decided to focus the DPO series on critically affected sectors identified in the RKDP where the World Bank had previous engagements and context-specific expertise, as detailed below. The World Bank financed complementary Bank-executed programmatic technical assistance (TA)3 to support implementation. 7. The preparation of the DPO catalyzed the development of a State Partnership Framework (SPF)4 between the GoK and the World Bank in 2019. The framework was the first of its kind between the World Bank and an Indian state, under the World Bank Group’s Country Partnership Framework (CPF) for India for FY18–22 (Report No. 126667-IN). The CPF positioned the development of state partnerships as a critical approach to improve the GoI’s project and policy implementation capability and address state- specific development priorities by using a state-level programmatic approach. State partnerships were envisioned to be underpinned by core partnership operations, such as a DPO series, and/or comprehensive TA with interventions across multiple sectors. The DPO series served as the core partnership operation for Kerala as it aimed to address cross-cutting themes and priority sectors to build systems of resilience against natural disasters and climate change. 8. The DPO series supported the key objectives of the CPF, built on and complemented the World Bank’s previous and ongoing engagements, and supported the implementation of international and national policies for disaster risk management. The DPO directly contributed to the CPF objectives of improving disaster risk management and resilience to climate change (Objective 1.5) and improving living conditions and sustainability of cities (Objective 1.2) through policy reforms that strengthened disaster and climate resilience and improved urban planning and infrastructure. The DPO further contributed to the objectives of increasing resilience of the financial sector and financial inclusion (Objective 2.2) and improving connectivity and logistics by making the transport systems more climate and disaster resilient (Objective 2.3) by increasing farmers’ access to agriculture insurance, supporting the GoK to access diverse finance sources to fund recovery activities, and introducing road construction standards that considered climate and disaster risk. The DPO built on previous and ongoing World Bank engagements with the GoK, including the India Dam Rehabilitation and Improvement Project (P089985), which aimed to improve the safety and operational performance of selected existing dams in the participating states including Kerala; 3 The programmatic TA was a group of Trust Fund (TF)-funded TAs that supported the GoK in implementing the DPO reforms across all of the sectors in the Program. Further details on activities supported are listed in section III. 4 The SPF was developed jointly by the GoK and the World Bank to structure future engagements in the State of Kerala. It has not been converted to an official World Bank document. Page 6 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) the National Hydrology Project (P152698), which aimed to improve the extent, quality, and accessibility of water resources information and strengthen the capacity of targeted water resource management institutions in Kerala; and the Second Kerala State Transport Project (P130339), which aimed to improve condition, traffic flow, and road safety with a focus on vulnerable road users on selected roads in Kerala and enhance resilience to climate change and disaster risk. Finally, the DPO supported the United Nations Office for Disaster Risk Reduction's Sendai Framework for Disaster Risk Reduction 2015–2030 endorsed by GoI, which emphasized the need to ‘build back better’ in disaster recovery, and national policies such as the National Disaster Management Policy (2009) and National Disaster Management Plan (2016), which identified disaster governance, resilient recovery, and disaster risk financing as priority reform areas. 9. The programmatic DPO series was chosen as the most appropriate financing mechanism to simultaneously respond to the 2018 flood emergency and address the complex policy and institutional cross-sectoral reforms necessary for disaster and climate resilience. This was a shift from the use of the traditional Investment Project Financing (IPF) instrument to support reconstruction or cash assistance for emergency relief and early recovery. The intended DPO series allowed high-level policy and institutional reforms across sectors as well as fast disbursement, which were both critical after the 2018 floods, facilitated by the GoK’s readiness and capacity to implement the Prior Actions and envisioned reforms. A sub-national Catastrophe Deferred Drawdown Option was not requested by the GoK due to the availability of a State Disaster Response Fund and National Disaster Relief Fund. Given the emergency nature of the project, the DPO was approved 10 months after the August 2018 floods. 5 Macroeconomic Policy Framework 10. India’s macroeconomic policy framework was considered adequate for the DPO series. Economic growth was robust with initial disruptions caused by demonetization and introduction of Goods and Services Tax overcome. The economy was assessed to be resilient to external shocks. Structural reforms, including initial efforts to address financial sector weaknesses, were also expected to pay off over time. While fiscal consolidation was proving to be slower than anticipated, it was noted that states had been increasingly prudent fiscally in recent years. Debt and deficit levels were assessed as relatively high with ample domestic funding and moderate refinancing risks. 11. Kerala’s macroeconomic policy framework was also considered adequate for the DPO series. The ratio of debt to gross state domestic product was expected to fall over the medium term with respectable economic growth and gradual fiscal consolidation. Positive medium-term outlook was deemed as subject to several downside risks contingent on sustained economic growth, significant improvements in revenue collection, and continued efforts at fiscal consolidation. The state’s Medium- Term Fiscal Policy framework (a) explicitly acknowledged that the past patterns of relative fiscal profligacy—while once justified in light of social spending priorities and adverse shocks—had to be reversed; (b) provided for detailed measures to improve revenue collection; and (c) built in margins of maneuver to further cut noncommitted recurrent and capital expenditures, should revenue targets not be met or committed expenditure growth exceed stated goals. Original Program Development Objective(s) (PDO) (as approved) 12. The PDO of DPO1 is to enhance the State of Kerala's resilience against the impacts of natural disasters and climate change.6 5 The concept review, decision meeting, and project approval took place in March 2019, May 2019, and June 2019, respectively. 6 As stated in the Program Document (PD) (Report No. PGD77). Page 7 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) Original Policy Areas/Pillars Supported by the Program (as approved) 13. DPO1 supported two pillars:  Pillar 1: Enhancing Kerala’s Institutional and Financial Capacity for Managing Disaster Risks and Climate Change  Pillar 2: Mainstreaming Disaster and Climate Resilience into Critical Infrastructure and Services. 14. Pillar 1 supported the (a) enhancement of the GoK’s institutional and financial capacity for disaster recovery, risk reduction, and climate resilience and (b) establishment of innovative sources of financing for disaster and climate resilience. The pillar supported the identification and implementation of key disaster and climate resilience activities identified through RKDP by the RKI in key areas such as roads rehabilitation and livelihood recovery (Results Area 1), the financing of these activities by the state (Results Area 2), and institutional capacity development of the State Disaster Management Authority (SDMA) to better prepare for future disasters and climate change impacts by updating and operationalizing of disaster risk management plans and protocols (Results Area 3). Pillar 1 was to enable sector-specific activities under Pillar 2. 15. Pillar 2 supported the mainstreaming of disaster and climate resilience into critical areas of infrastructure development and service delivery by strengthening policies and program design of relevant sectors. This pillar operationalized the reforms identified in the RKDP for key areas of infrastructure development and service delivery. Specifically, the pillar supported resilient infrastructure development and service delivery through the development of river basin management plans for priority river basins by the Water Resources Department (WRD) (Results Area 4); climate-resilient agriculture and irrigation practices through the development of AEZ-based plans and increase in agriculture insurance take-up by the Department of Agriculture (DoA) (Results Area 5); adoption of climate and disaster-resilient design and performance standards for core roads by the Public Works Department (PWD) (Results Area 6); creation of unified and gender-disaggregated land records in high-disaster-risk areas by the Department of Revenue, Survey Land Records Department, and Department of Registration (Results Area 7); enabling risk-informed planning and multiyear infrastructure investments for urban local bodies (ULB) by the Local Self-Government Department (LSGD) (Results Area 8); and improvement of water supply and sanitation services by the WRD and Kerala Water Authority (KWA) (Results Area 9). 16. The results of DPO1 were to be advanced in DPO2 such as the updating and publishing of the State Disaster Management Plan (Results Area 3); submission of the draft RMCMA Act to the State Assembly (Results Area 4); adoption of performance-based management contract model for core road network (CRN) management (Results Area 6); and the reorganization of institutional arrangements to create a single land record and integrated map for Kerala (Results Area 7) (see annex 5 for further details). B. Significant Changes During Implementation 17. The DPO series was truncated following the decision by the GoI in June 2020 to no longer support DPOs at the sub-national level, due to a change in financing strategy as previously noted. Instead, and to continue the reform process, the GoI requested the World Bank to finance a PforR that built on DPO1 progress and DPO2 intended actions to strengthen foundational and crosscutting systems for resilience. Page 8 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) Revised Policy Areas/Pillars supported by the Program 18. Not applicable. Other Changes 19. The DPO1 closing date was extended in December 2020 by five months, from February 1, 2021, to June 30, 2021. The extension was necessary to compensate for the slowed pace of reforms due to the state’s COVID-19 response in 20207 and consequent restrictions that prevented in-field consultations with the public; on-the-ground technical activities, such as emergency management exercises with communities; and the approval of legislative acts, which required the Cabinet to be in session. II. ASSESSMENT OF KEY PROGRAM DESIGN AND OUTCOMES 20. A Theory of Change was constructed for this ICR on the basis of the Prior Actions, program activities, PDO, and Results Framework in the PD as a Theory of Change was not explicitly articulated at program appraisal. Overall, the assumption is that implementation of policy actions for the two program pillars contribute to the PDO of enhancing the State of Kerala’s resilience against the impacts of natural disasters and climate change. Figure 1 illustrates the Theory of Change. Figure 1. Overview of the Theory of Change for DPO1 21. The eight Prior Actions and nine Result Indicators included in the Policy Matrix of the PD were largely achieved (see Table 1). The Prior Actions and Results Indicators had a clear link to the PDO. 7The first COVID-19 case in India was reported in Kerala on January 30, 2020, and the state has since experienced many surges. Government resources and attention were consequently directed toward pandemic response. Page 9 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) Table 1. Prior Actions and Results8 Prior Actions Results Pillar 1: Enhancing Kerala’s Institutional and Financial Capacity for Managing Disaster Risks and Climate Change Prior Action 1: The GoK has Result Indicator 1: Resilient recovery from 2018 floods is implemented in line with adopted the Rebuild Kerala the RKDP priorities and guidelines and benefits women and children. Development Program for Baseline (2019): Recovery projects are not based on resilient recovery planning enhancing disaster and criteria. climate resilience through Target (2021): At least 25 percent of medium-term (1–3 years) resilient recovery policy, regulatory and activities are implemented as per RKDP priorities and programs; at least 1,000,000 institutional actions with women and children benefit from RKDP programs. inclusive and participatory Current status (April 2022): 25.06 percent of medium-term (1–3 years) resilient approaches. recovery activities were implemented as per RKDP priorities and programs, and 3,121,534 women and children benefitted from RKDP programs. Prior Action 2: The GoK has Result Indicator 2: Additional public and private financial resources are mobilized adopted the new flood Cess, for resilient recovery. with effect as of June 1, Baseline (2019): Recovery and resilience programs are financed through public 2019 for financing resilient finances. recovery efforts. Target (2021): At least $500 million of public and private financing is mobilized to finance recovery and resilience programs through cess, Masala and Diaspora Bonds. Current status (April 2022): $567.03 million of public and private financing mobilized through cess ($284.90 million) and Masala bonds ($282.13 million). Prior Action 3: The GoK has Result Indicator 3: Improved capacity for emergency, disaster, and climate risk adopted new protocols for management with outreach to vulnerable communities. enhancing emergency Baseline (2019): Weak coordination capacity among key agencies to respond to preparedness and response emergencies and weak outreach to vulnerable communities, as evidenced during capacity of various August 2018 Floods. departments. Target (2021): A State-wide emergency management exercise is satisfactorily completed as per updated State DRM Plan, which covers disaster and climate resilience and improved outreach, as evidenced by independent observer’s report. Current status (April 2022): A statewide emergency management exercise satisfactorily completed as per the updated State Disaster Risk Management Plan, which covers disaster and climate resilience and improved outreach, as evidenced by independent observer’s report. Pillar 2: Mainstreaming Disaster and Climate Resilience into Critical Infrastructure and Services Prior Action 4: The GoK has Result Indicator 4: Improved river basin planning and water infrastructure established a cross-sectoral operations management for climate resilience at the State level. State-level committee to Baseline (2019): Inadequate river basin planning and management functions at the draft a River Basin State level. Conservation and Target (2021): River basin management plans are developed for two priority river Management Authority Act basins (i.e. Pamba and Periyar river basins) by the River Basin Conservation and establishing a River Basin Management Authority. Conservation and Current status (April 2022): River basin management plans not developed for two Management Authority. priority river basins (i.e., Pamba and Periyar river basins) by the River Basin Conservation and Management Authority. 8As per the PD Policy and Results Matrix, verbatim. Annex 1 of this ICR presents indicators which are worded slightly differently that those presented in this table, as discussed in section IV. There is, however, no difference in the baselines, targets, and results noted in Table 1 and Annex 1 of the ICR. Page 10 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) Prior Actions Results Prior Action 5: The GoK has Result Indicator 5: More resilient and sustainable agriculture based on notified9 the establishment agroecological zones and enhanced agriculture risk insurance. of five agroecological zones Baseline (2019): (i) Climate and disaster vulnerable agriculture practices; (ii) Low and the reorganization of levels of agriculture risk insurance uptake at less than 10 percent. the Agriculture Department Target (2021): (i) Resilient and sustainable agroecological zone development plans along agroecological zones. are adopted for at least two agroecological zones; (ii) Agriculture risk insurance uptake is enhanced to at least 20 percent. Current status (April 2022): (i) Resilient and sustainable agroecological zone development plans adopted for five agroecological zones and (ii) 21.46 percent agricultural risk insurance uptake. Prior Action 6: The GoK has Result Indicator 6: Improved physical and institutional resilience of the core road notified the criteria for the network, including in hilly areas where most tribals are located. identification/determination Baseline (2019): (i) Road design and maintenance programs are not climate change of the core road network and disaster risk proofed; (ii) Road sector budget is not allocated according to the and mandated the review of priority of roads in the network. PWD road policies, Target (2021): (i) Performance-based management contract based on resilient construction codes and standards is adopted for maintenance of at least five key core road network manuals to ensure the corridors, including at least one in hilly areas where most of the tribal population is resilient design, concentrated; (ii) Share of budget allocation for the core road network is enhanced construction and by at least 20 percent from the 2018 budget allocation for the core roads. maintenance of core road Current status (April 2022): (i) Performance-based management contract based on network. resilient standards adopted for maintenance of eight key core road network corridors, including four in hilly areas and one where most of the tribal population is concentrated, and (ii) Share of budget allocation for the core road network enhanced by 56.09 percent from the 2018 budget allocation for the core roads. No Prior Action under Result Indicator 7: Unified and more up-to-date gender-disaggregated land records DPO110 in high-risk areas. Baseline (2019): Separate Deeds Registry, Record of Rights and Field Book (map) are maintained for land records. Target (2021): A program is implemented by Kerala Land Records Modernization Mission for single digital land record and map in at least two high-risk districts, providing gender disaggregated data on land ownership and transactions. Current status (April 2022): A program is implemented by Kerala Land Records Modernization Mission for a single digital land record and map in 87 villages across 12 of the 14 districts of Kerala, including two high-risk districts with high climate and disaster risk. Villages digitally resurveyed and data integrated with textual and sketched records. Gender disaggregated data not provided. Prior Action 7: The GoK has Result Indicator 8: Risk-informed master plans are notified and funds for multi- established a committee to year municipal infrastructure investments are allocated in annual plans by urban revise the Town and local bodies. Planning Country Act to Baseline (2019): (i) No urban local bodies have risk-informed master plans; (ii) No make master plans risk- plan funds assigned to multi-year infrastructure investments. informed and to revise the Target (2021): (i) Risk-informed master plans are prepared and notified by at least annual expenditure two urban local bodies; (ii) Multi-year municipal infrastructure investment planning planning and budget and budgeting is undertaken by at least two urban local bodies. guidelines for urban local 9 According to the PD, ‘notified’ under Prior Actions 5 and 6 means publicly declaring the Government decision specific to the subject matter. 10 This Prior Action was to be defined and implemented under DPO2. Therefore, this Prior Action is not assessed toward the achievement of the PDO and is only discussed in this ICR—as advised by the Operations Policy and Country Services (OPCS). Page 11 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) Prior Actions Results bodies to undertake multi- Current status (April 2022): (i) Risk-informed master plans prepared and notified year municipal by two urban local bodies, and (ii) Multi-year municipal infrastructure investment infrastructure investments. planning and budgeting undertaken by three urban local bodies. Prior Action 8: The GoK has Result Indicator 9: Improved water supply and sanitation services. established a cross-sectoral Baseline (2019): (i) Non-Revenue Water is 45 percent; (ii) O&M11 Cost Recovery is committee to prepare the 41 percent; (iii) No Annual Performance Report by KWA; (iv) 14.3 million policy and institutional population affected by poor sanitation and waste management services. program for strengthening Target (2021): (i) Non-Revenue Water reduction models are adopted in at least water supply and sanitation two Urban Local Bodies; (ii) O&M cost recovery is increased to at least 50 percent services and their resilience at state level; (iii) Annual Performance Report is publicly disclosed by KWA; (iv) to disasters and impacts of Cost-effective septage and sewerage programs are adopted in at least 5 Urban climate change. Local Bodies. Current status (April 2022): (i) Non-Revenue Water reduction models adopted in three Urban Local Bodies, (ii) O&M cost recovery increased to 57.58 percent at state level, (iii) Annual Performance Report publicly disclosed by the KWA, and (iv) cost-effective septage and sewerage programs adopted in 9 Urban Local Bodies. A. Relevance of prior actions Rating: Highly Satisfactory 22. A review of the PD, the RKDP, and other background documents reveals a clear relationship between the DPO series’ Prior Actions and two pillars. Prior Actions under Pillar 1 enhanced Kerala’s institutional and financial capacity to manage disaster risks and climate change through the adoption of a new resilience program (RKDP) and the implementation of a flood cess to finance the program activities. New protocols for emergency preparedness were also adopted to enhance institutional capacity across agencies on disaster risk management. Prior Actions under Pillar 2 mainstreamed disaster and climate resilience into critical infrastructure and activities through the establishment of new committees to revise critical laws, institutional reorganization of relevant government departments, and the adoption of new policy procedures. The Actions initiated some of the most pressing reforms recommended in the RKDP, such as establishment of a committee to revise the Town and Planning Country Act (2016) to make master plans risk- informed and the reorganization of the Agriculture Department along agroecological zones (AEZs). Finally, Prior Actions, that spanned 11 government agencies, were appropriately chosen to address the cross-sectoral reforms needed to achieve the PDO. All prior actions were also appropriate considering the emergency nature of the Program by providing initial steps that instigated necessary policy reforms. 23. The relevance of the Prior Actions is also evident by the continued engagement of the GoK in the resilience reform agenda in all of the DPO series’ policy tracks after the truncation. This policy reform dialogue between the state and World Bank continues to receive focus under the SPF through the ongoing state-level PforR operation with a PDO similar to the DPO series’ PDO; 12 similar sector-specific engagements, such as those supported by the Kerala Solid Waste Management Project (P168633); and national-level projects with a strong focus on Kerala’s resilience, such as the Second Dam Rehabilitation and Improvement Project (P170873), which finances the rehabilitation of 22 dams in Kerala, along with emergency action plans prepared in consultation with communities for resilience, and the National Cyclone Risk Mitigation Project Phase II (P144726), which finances early warning dissemination systems and 27 multipurpose cyclone shelters in Kerala in support of cyclone risk mitigation and coastal resilience. 11O&M = Operation and Maintenance 12The PforR’s PDO is to enhance the State Government of Kerala’s resilience against the impacts of climate change, natural disasters and disease outbreaks. Page 12 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) 24. The Prior Actions were selected and defined based on extensive analytics conducted after the 2018 floods; and in alignment with World Bank strategies, international frameworks to which India was party, and national and state plans. The JRDNA, PDNA, and RKDP directly informed the focus of the DPO series and the selection of specific Prior Actions. The CPF as noted, and the World Bank 2018 Systematic Country Diagnostic (SCD, Report No. 126284), which identified climate change and natural disasters as key risks to India’s development, further directed the type of reform and the interventions of the DPO series. The Prior Actions were also informed by the Sendai Framework for Disaster Risk Reduction 2015– 2030, which calls to strengthen disaster risk governance, invest in disaster reduction for resilience, enhance disaster preparedness for effective response, and build back better in recovery, rehabilitation, and reconstruction and the Sustainable Development Goals 2015–2030. National and state plans that informed the selection of the Prior Actions included the National Disaster Risk Management Plan (2016), the Kerala State Disaster Management Plan (2016), and the GoK’s Thirteenth Five-Year Plan 2017–2022. World Bank reports and papers such as the Flood Risk Management at River Basin Scale: The Need to Adopt a Proactive Approach13 and other external research.14 Pillar 1: Enhancing Kerala’s Institutional and Financial Capacity for Managing Disaster Risks and Climate Change Prior Action 1: The GoK has adopted the Rebuild Kerala Development Program for enhancing disaster and climate resilience through policy, regulatory and institutional actions with inclusive and participatory approaches 25. The adoption of the RKDP was foundational to achieve the PDO because it served as the GoK’s roadmap for enhancing Kerala’s resilience against natural disasters and climate change impacts. To address key risk drivers, the RKDP defined essential interventions in vulnerable sectors, such as undertaking a comprehensive disaster and climate risk assessment of the PWD’s road network. To address future risks, the RKDP defined a set of reforms to the state’s development framework by defining activities to mainstream disaster and climate resilience within policies, systems, and programs of relevant government agencies and devising financing plans and institutional modalities for implementation. 26. The RKDP was developed through online and in-person consultations with various stakeholders, such as communities, civil society organizations (CSOs), general public, private sector entities, and sector specialists. The RKI’s institutional framework, which includes the Council of Ministers, an Advisory Council, High-Level Empowered Committee, and an Implementation Committee, was utilized for the review and approval of the RKDP to ensure a ‘whole of government’ approach. Prior Action 2: The GoK has adopted the new flood cess, with effect as of June 1, 2019 for financing resilient recovery efforts 27. Mobilizing financial resources in a timely manner from various sources was necessary for the state’s resilient recovery efforts. The RKDP estimated key investment needs to rebuild Kerala to be around INR 365.07 billion (US$4.79 billion). To sustainably finance this scale of investment, the RKDP prescribed the implementation of a flood cess (tax). In June 2019, the GoK started the implementation of the flood cess, which levied an additional 1 percent tax on goods and services for luxury products and an additional 0.25 percent tax on gold and silver. 13 Verwey, Adri, Yann Kerblat, and Brendan Chia. 2017. Flood Risk Management at River Basin Scale: The Need to Adopt a Proactive Approach. Washington, DC: World Bank. https://openknowledge.worldbank.org/handle/10986/27472 14 Over 30 analytical reports were used to design the project and set Prior Actions. These are summarized in the PD. Page 13 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) Prior Action 3: The GoK has adopted new protocols for enhancing emergency preparedness and response capacity of various departments 28. The RKDP highlighted the need for a paradigm shift within the GoK, including the Kerala SDMA, from a relief-centric approach to a proactive and comprehensive disaster risk management approach that addresses prevention, mitigation, preparedness, response, and recovery. A need for stronger coordination with clear delegation of roles and responsibilities among relevant agencies for issues such as disaster information management was evident. Therefore, new protocols for emergency preparedness and response across government departments were key to enhancing the state’s resilience. Important new protocols of the Kerala SDMA included the incorporation of an Incident Response System structure as a statutory requirement at the state and local government levels and an Emergency Support Functions Plan, which prescribes the responsibilities of agencies during an emergency. Pillar 2: Mainstreaming Disaster and Climate Resilience into Critical Infrastructure and Services Prior Action 4: The GoK has established a cross-sectoral State-level committee to draft a River Basin Conservation and Management Authority Act establishing a River Basin Conservation and Management Authority 29. The impact of the 2018 floods was exacerbated by poor management of Kerala’s water resources, including 58 hydropower dams managed by the Kerala State Electricity Board, 16 irrigation dams operated by the state’s WRD, and two water supply dams owned by the KWA. Although the 2008 Water Policy recognized the need for integrated water resource management, the policy had not been fully implemented by the state due to the absence of effective institutional mechanisms to bring together multiple line agencies. A lack of uncoordinated reservoir operations, poor O&M of infrastructure, and inadequate information systems, including for flood forecasting, exacerbated the 2018 flood impacts. The River Basin Conservation and Management Authority (RBCMA) Act and RBCMA served the role of facilitating the development and operationalization of integrated water resource management through data information systems for real-time river basin and water infrastructure monitoring, including during disasters; integrated planning at a basin or sub-basin levels that accounts for climate change; and improved systems for statewide flood forecasting and early warning systems. The cross-sectoral state- level committee, act, and authority with a river basin conservation and management mandate were therefore critical to enhance the resilience of the state. Prior Action 5: The GoK has notified the establishment of five agroecological zones and the reorganization of the Agriculture Department along agroecological zones 30. Approximately 50 percent of Kerala’s area is cultivated, and 17 percent of the population depends on the primary production sector, including crops, livestock, and fisheries. Estimated crop production losses following the 2018 floods were estimated at INR 35.58 billion (US$500 million) across 89,610 hectares. This Prior Action catalyzed a paradigm shift in agriculture practice in the state, from district-level resource allocation according to past cropping and expenditure patterns to a division along five AEZs (coastal plains, mid-land laterites, foothills, high hills, and Palakkad plains) based on agroclimatic parameters such as geomorphology, soil types, rainfall, temperature, and elevation. The AEZ-based approach enabled ecosystem-based adaptation of agriculture practices so that they are resilient to climate change and disasters. This division and subsequent restructuring of the DoA ensured that planning, resource allocation, and deployment of human resources improved farmers’ resilience to natural disasters and climate change, and the efficiency of their production practices. Page 14 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) Prior Action 6: The GoK has notified the criteria for the identification/determination of the core road network and mandated the review of PWD road policies, construction codes and manuals to ensure the resilient design, construction and maintenance of core road network 31. Resilient design, construction, and maintenance of the state’s CRN were key to its resilience as such roads are the dominant mode of transportation supporting agriculture, tourism, and socioeconomic activities. The state’s growing population and an annual growth rate of 12–14 percent in traffic, 15 combined with the poor quality and condition of the roads, had made the road network vulnerable to disaster and climate risks. The Prior Action helped the GoK strategically prioritize risk reduction investments in the CRN and define climate-resilient standards for road design, construction, and maintenance so that roads are built, operated, and maintained in a way that is more resilient to disaster and climate change impacts. Prior Action 7: The GoK has established a committee to revise the Town and Planning Country Act to make master plans risk-informed and to revise the annual expenditure planning and budget guidelines for urban local bodies to undertake multi-year municipal infrastructure investments 32. Kerala was the second-most rapidly urbanizing state in India between 2001 and 2011, with the percentage of the urban population nearly doubling in this period. The 2018 floods demonstrated the vulnerability of the state’s urban settlements due to a lack of risk-informed urban and spatial planning frameworks, poor quality and capacity of the municipal infrastructure, and insufficient waste management services. Urban planning was fragmented and based on discrete annual expenditure cycles, which prevented critical infrastructure investments, often requiring multiyear planning and funding. The revision of the Town and Planning Country Act to enable investments in infrastructure and key services based on multiyear and risk-informed planning, was long overdue. The revision of the annual expenditure planning and budget guidelines was also critical to allow ULBs to execute multiyear municipal infrastructure investments for climate and disaster resilience. The high-level committee was necessary for coordination across multiple government tiers and departments to enact enabling policies and laws and outline clear terms of reference, processes, and timelines to revise the Town and Planning Country Act. Prior Action 8: The GoK has established a cross-sectoral committee to prepare the policy and institutional program for strengthening water supply and sanitation services and their resilience to disasters and impacts of climate change 33. Inadequate piped water supply and sanitation services led to the contamination of drinking water sources during the 2018 floods, posing risks to public health and the environment. The Prior Action was important to enhance safe drinking water and the quality of household water and sanitation during climate-related disasters such as floods. The committee was established to recommend policies and institutional programs to strengthen water supply and sanitation services and their resilience to disasters and climate change impacts. B. Achievement of Objectives (Efficacy) Rating: Satisfactory 15 Government of Kerala, Rebuild Kerala Initiative. 2019. Rebuild Kerala Development Programme. May 2019. https://rebuild.kerala.gov.in/reports/RKDP_Master%2021May2019.pdf. Page 15 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) 34. Efficacy is assessed as Satisfactory, based on strong results achieved by DPO1 and the likelihood that the unachieved result would have been achieved had the series not been truncated. Seven of eight assessed results were achieved despite the truncation of the series. Under Pillar 1, all three results (Results Areas 1, 2, 3) were achieved or exceeded. Under Pillar 2, four results were achieved or exceeded (Results Areas 5, 6, 8, 9) and one was not achieved (Results Area 4). Had the series not been truncated, it is assessed that Results Area 4 (measured by the development of river basin management plans for Pamba and Periyar river basins by the RBCMA) would have been achieved by ICR completion of the intended series16 as evident in the progress that has been made on this result under the Resilient Kerala PforR since its approval in June 2021. As of the writing of this ICR, the RBCMA Act, which establishes the RBCMA and is a key step to developing the river basin management plans, is scheduled for discussion by the Cabinet of Ministers in late June 2022 according to the GoK. Once approved, the RBCMA will proceed to adopting integrated river basin management plans, including for Pamba and Periyar river basins, expected within the next few months under the PforR. This will be followed by the implementation of critical investments on water resource management, also under the PforR. Although Results Area 7 does not qualify for an assessment in this ICR17, the target was partially achieved as discussed below. In addition to the COVID- 19 constraints (for which a five-month extension was processed), the state experienced severe flood events in 2019, 2020, and 2021 and two election cycles (for local government in December 2020 and state government in April 2021), which temporarily slowed down the pace of reforms due to the Code of Conduct18 and government readjustments post-elections. 35. In spite of these challenges, the GoK stayed committed to result achievement. The achievements of this operation and the continued engagement of the GoK on disaster and climate resilience while responding to the COVID-19 pandemic, severe flood events, and during elections as noted, demonstrates the GoK’s commitment to the DPO series’ objective. The commitment supports the likelihood that the above steps required for the development of the river basin plans will be taken as scheduled and would have been implemented by the DPO series had DPO2 continued. This is further supported by the fact that during DPO2 preparations, eight of the nine intended Prior Actions under DPO2 were met by the GoK (see annex 5). 36. The Result Indicators were relevant for measuring the achievement of the PDO. For example, Result Indicator 5 measured agricultural insurance take-up as a critical risk mitigation action that enhances the resilience of farmers. The 2018 floods highlighted how the low take-up of farmers’ insurance (at around 10 percent) due to lack of awareness affected their ability to recover from shocks such as disasters. Result Indicator 6 measured improvement in the resilience of the CRN, which is a predominant means of transport in the state and required the largest proportion of recovery needs in the 2018 floods according to the PDNA. Measuring the share of budget allocation and adoption of resilient standards for these key roads, including ones that serve marginalized groups, addressed the most critical actions needed for the long-term resilience of the CRN. Result Indicator 9 measured the reduction in non-revenue water loss with the aim to encourage sustainable services and prevent water wastage in a state that regularly experiences droughts. The relevance of this indicator could have been further strengthened by also measuring the establishment of disaster and climate risk-informed standards for water wastage and sanitations systems. 16 DPO2 was to be a two-year operation, with a target date of February 2022 according to the Regional Operations Committee Decision Meeting Stage PD. ICR due a year after target date (i.e., February 2023). 17 As advised by OPCS, as Results Indicator 7 does not have a corresponding action under DPO1. 18 The Code of Conduct comes into force on the announcement of an election to ensure that ruling parties do not misuse their position of advantage to gain an unfair edge, and thus, announcements of new reforms/projects during this period are avoided to prevent unfairly influencing voters. Page 16 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) 37. Although a balance was necessary between speed and rigorous data collection considering the emergency nature of the Program, some of the targets could have been more ambitious or updated. For example, Results Indicator 1 had a target for ‘at least 1,000,000 women and children to benefit from RKDP programs’, which was modest given that Kerala’s population of women and children (under six years of age) was over 20 million at appraisal,19 and it was understood that disasters and climate change greatly affected women. Under Results Indicator 2, with the technical support of the World Bank during project preparation, the GoK issued the Masala bond in March 2019 and, due to high market interest, raised INR 21,500,000,000 (US$282.13 million) within days and before Program approval, warranting a higher target for this result or a different result. Under Result Indicator 9, one of the targets was ‘at least 50 percent O&M cost recovery’ while recent data (unavailable at appraisal) shows that the cost recovery was already 54 percent in the baseline year. Nonetheless, targets were set with minimum target values (“at least”) to accommodate higher results in case more data become available during implementation. 38. The measurability of some indicators could have been strengthened. Terms such as ‘resilient standards’, ‘resilient and sustainable plans’, ‘weak coordination’, and ‘improved outreach’ were not clearly defined, which made monitoring progress more open to interpretation. Further, some of the indicators’ baselines and corresponding targets were difficult to compare, which complicated progress monitoring. For example, Result Indicator 5 presented a baseline of “climate and disaster vulnerable agriculture practices” with a corresponding target of “resilient and sustainable agroecological zone development plans are adopted for at least two agroecological zones.” The baseline of Results Indicator 9 was “Non-Revenue Water is 45 percent,” while the corresponding target was “Non-Revenue Water reduction models adopted in three Urban Local Bodies,” along with a baseline of “14.3 million population affected by poor sanitation and waste management services” with a corresponding target of “cost- effective septage and sewerage programs are adopted in at least 5 Urban Local Bodies.” However, the GoK had a clear focus on achieving and measuring the targets, and the aforementioned weaknesses did not lead to lack of target achievement or measurement. Pillar 1: Enhancing Kerala’s Institutional and Financial Capacity for Managing Disaster Risks and Climate Change Result Indicator 1: Resilient recovery from 2018 floods is implemented in line with the RKDP priorities and guidelines, and benefits women and children 39. The target of at least 25 percent of medium-term (1-3 years) resilient recovery activities implemented as per RKDP priorities and programs was fully achieved.20 INR 74.16 billion (US$973.15 million) out of the INR 295.89 billion (US$3.882 billion) RKDP midterm investments were implemented in 2019–2021 (25.06 percent). Investments included the repair of 207 kilometers of flood-damaged roads, reconstruction of 29 Anganwadi Centers (childcare centers), and repair and strengthening of paddy cultivation infrastructure covering 4,000 hectares. 40. DPO1 exceeded the target of 1,000,000 women and children benefitting from RKDP programs, with a result of 3,121,534. RKDP programs targeting women and children were conducted through Kudumbashree, a community organization of neighborhood groups in Kerala. Programs that directly 19 Government of India, Ministry of Home Affairs, Office of the Registrar General & Census Commissioner. 2011. 2011 Census Data. https://censusindia.gov.in/census.website/. This is the latest State Census. 20 According to the GoK and World Bank task team, the target of 25 percent was to be calculated as the percentage of the RKDP’s midterm investment financing needs implemented. Page 17 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) benefitted women and children included the restoration of farm activities for women farmers through adoption of soil and water conservation methods and programs for skills training to increase the income of the poor affected by the 2018 floods. Result Indicator 2: Additional public and private financial resources are mobilized for resilient recovery 41. A total of US$567.03 million was mobilized through cess and Masala bonds, exceeding the target of US$500 million. The GoK introduced a flood cess in August 2019 for two years and collected INR 21.71 billion (US$284.90 million). The Masala bond, an Indian rupee-denominated bond issued outside India to mobilize additional local currency from foreign investors, was issued by the GoK through the Kerala Infrastructure Investment Fund Board (KIIFB) in March 2019, raising INR 21.5 billion (US$282.13 million). KIIFB became the first state-level entity to secure a public international credit rating and issue a Masala bond. The issuance of Diaspora bonds was put on hold in April 2021 in the context of the COVID- 19 pandemic and consequent unfavorable market conditions. Result Indicator 3: Improved capacity for emergency, disaster, and climate risk management with improved outreach to vulnerable communities 42. A statewide emergency management exercise was completed on March 10 and 16, 2022, in line with the updated State Disaster Risk Management Plan, covering disaster and climate resilience and improved outreach. The exercise was evidenced by a report by the National Disaster Management Authority (independent observer), meeting the target. The exercise was conducted as per the State Disaster Risk Management Plan’s Orange Book of Disaster Management 1—Kerala: Standard Operating Procedures and Emergency Functions Plan, which had been updated in 2019 following the 2018 floods and again in May 2020.21 The exercise comprised a table-top exercise and a field exercise, assuming floods and landslides. Each District Disaster Management Authority selected an area to conduct the field drill based on flood and landslide risk maps that considered climate change impacts. The disaster scenarios, such as the level of rainfall and timing of flooding and landslides, catered to each district’s vulnerability profile. A standardized survey addressing 38 questions, such as whether the exercise followed specific procedures outlined in the Orange Book, was submitted by 13 district and 14 taluk (subdistrict) Emergency Operations Centers. The National Disaster Management Authority’s independent observer report noted the overall high quality of the exercise and the disaster risk management procedures of the state, including the Standard Operating Procedures. Hazard maps for floods (including 1 in 10-year to 1 in 500- year floods) and landslides were readily available. The exercise included a systematic outreach exercise that engaged community members on activities such as evacuation and first-aid treatment, which had not been done systematically and at scale before. While not set as a target, local disaster risk management plans were developed by Kerala’s 14 district disaster management agencies and all its local governments. The local disaster management plans will be updated in 2022-23 by incorporating climate change assessments, further strengthening the disaster risk management capacities of the local governments. Pillar 2: Mainstreaming Disaster and Climate Resilience into Critical Infrastructure and Services Result Indicator 4: Improved river basin planning and water infrastructure operations management for climate resilience at the State level 21The 2019 and 2020 updates of the Orange Book - Kerala were informed by lessons learned from the 2018 floods and included an updated Incident Response System as well as new protocols for strengthening emergency preparedness and response capacity of various departments. Page 18 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) 43. River basin management plans were not developed for the Pamba and Periyar river basins by an RBCMA, not achieving the target. An RBCMA Act, which is necessary to establish the RBCMA, was not approved; therefore, the authority to develop and operationalize the river basin management plans was not in place. In September 2020, the Water Resource Department developed a draft river basin management plan for the Pamba river basin, with data for the key sectors of hydropower, flooding, and irrigation and water supply. However, the draft is in its early stages and does not yet provide sufficient recommendations and next steps necessary to comprise a river basin management plan. Result Indicator 5: More resilient and sustainable agriculture based on agroecological zones and enhanced agriculture risk insurance 44. AEZ-based development plans were adopted by the DoA for all the five AEZs in the state, exceeding the target of plan development in at least two zones. After the five AEZs were developed through the Prior Action, the Kerala Agricultural University conducted a study in January 2020 that further identified 23 AEUs within the AEZs as well as AEU-based cropping patterns. In April 2020, Government Order No. 393/2020/AGRI entrusted the Director of Agriculture to develop, plan, and budget AEZ- and AEU-based agriculture schemes. AEZ-based funds allocation and plans were applied to 11 crop-specific schemes for 2020–2021 in all AEZs. 45. The percentage of farmers covered by agricultural insurance was 21.46 percent, slightly exceeding the target of at least 20 percent. At closing, 427,739 farmers were covered by the State Crop Insurance Scheme, out of 1,993,000 farmers in the state (according to the state’s 2011 Census).22 The DoA took key initiatives to raise farmers’ awareness and encourage enrollment in national and state insurance schemes. July 1 was designated as Crop Insurance Day in 2021, and a two-week campaign was carried out with awareness raising programs and intensive enrollment campaigns in 1,076 locations as well as through online platforms, social media, and YouTube videos featuring a message from the Minister of Agriculture. A total of 25,000 booklets and 300,000 leaflets with information on insurance schemes and products were distributed during this period. Result Indicator 6: Improved physical and institutional resilience of the core road network, including in hilly areas where most tribals are located 46. The PWD adopted performance-based management contracts in 2021 for the maintenance of eight CRN corridors, including four in hilly areas and one where most of the tribal population is concentrated, exceeding the respective targets. The eight road network corridors are Kollam-Ayoor, Kayamkulam-Mavelikkara-Thiruvalla, KP Road-Kayamkulam to Adoor, Thrikkunnipuzha-Thattarambalam, Pandalam-Kaipattor, Ponkunnam-Thodupuzha, Munnar-Top Station, and Top Station-Vattavada, and the four hilly areas are located in the districts of Idukki and Pathanamthitta. The ‘Top Station-Vattavada’ road network in Idukki District serves an area with significant tribal population concentration. 23 The department further introduced the novel concept (in India) of performance-based long-term management contracts (i.e., Output and Performance-based Road Contracts) that incorporate climate and disaster resilience needs in service standards, contingency budgeting, and emergency response mechanisms. Due to the contracts having little precedence in India and uncertainties related to the pandemic, they were first met with low bidder interest and high bid prices. However, in August and 22 Government of India, Ministry of Home Affairs, Office of the Registrar General and Census Commissioner. 2011. 2011 Census Data. https://www.censusindia.gov.in/2011-Common/CensusData2011.html 23 As confirmed by the RKI and the Kerala Tourism Department. Page 19 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) November 2021, two contracts covering the eight corridors were successfully awarded. Building on this success, the PWD further surpassed the target by initiating detailed project report preparation and bidding processes for several new road contracts. The enhancement of roads standards 24 included in the contracts has been supported by the recent constitution of the Kerala Highway Research Institute as a Center of Excellence. This Center of Excellence is an initiative of the GoK and World Bank for improving the physical resilience of the state’s road networks through sectoral research and training, including by performing laboratory and field tests of roadway materials. 47. The result for the increased share of budget allocation for the state’s CRN exceeded the target. With the CRN only established in 2020 (comprising approximately 4,293 km of state highways and 2,707 km of major district roads), the baseline budget allocation was determined by the GoK on the basis of expenditures in the roads sector in FY18–19 as a proxy for budget allocation—a baseline that is likely higher than the assumed budget allocation baseline given the GoK’s overspending in the sector after the 2018 floods.25 Analysis found that in FY20–21, there was a 56.09 percent increase in expenditures for state highways and major district roads compared to the baseline (INR 25.95 billion [US$340.52 million] compared to INR 16.62 billion [US$218.15 million]). Expenditures in the critical CRN were likely higher.26 48. To triangulate this data, the ICR team further analyzed road-related billing details through the PWD Project Information and Cost Estimation (PRICE) software.27 As this system was put in place in June 2019, comparable billing data are unavailable for 2018–19 and incomplete for 2019–20. Therefore, mixed methodologies were used by the ICR team. The DPO PD described that during the baseline year (FY18– 19), approximately INR 350,000 (US$5,000) per kilometer were budgeted by the state for development and maintenance of state highways and major district roads. The software shows expenditure of INR 5.8 billion (US$76.16 million) on the CRN in FY20–21. This translated to approximately INR 829,142 (US$10,880) spent per kilometer on development and maintenance, which is 117.6 percent higher than the baseline expenditure noted in the PD. In summary, the two analyses found that the results exceeded the minimum set target of a 20 percent increase, attributed in large part to the Department of Finance allowing the PWD to exceed budget estimates for the three years following the 2018 floods. Result Indicator 7: Unified and more up-to-date gender-disaggregated land records in high-risk areas 49. This result was linked to a Prior Action in DPO2 and was partially achieved during DPO1. Although this Results Indicator does not qualify for an assessment in this ICR as it does not have a corresponding Prior Action under DPO1, the GoK has made some noteworthy progress in this reform area. The 2018 and 2019 floods highlighted the challenges of Kerala's resilience and disaster risk management readiness due to incomplete, inconsistent, and institutionally fragmented legal records on land and 24 New resilient service standards include rectifying surface defects, drainage of pavement, surface drain cleaning, culvert and pit cleaning, river and stream maintenance, bridge and culvert maintenance, land slip clearing, and emergency works and services. Initial works include constructing retaining structures, rehabilitation of damaged sections, and laying of bituminous concrete with natural rubber binder providing higher waterproofing. Additionally, as part of the contracts, a provisional sum is reserved to deal with emergency works from natural climate events. 25 Kerala has a road density of 390 km per 100 km 2, roughly three times the national average. As noted in the RKDP, the road sector experienced the largest total recovery needs across sectors, by a clear majority. Road transport is also the state’s dominant transport mode. The PWD spent 50 percent more in 2018–19 after the Department of Finance allowed it to exceed budget estimates for three years following the 2018 floods. 26 The CRN constitutes roughly 16 percent of total road network; however, it carries 80 percent of road traffic. By definition, the CRN is more critical than the rest of the network and was selected by a Government Order based on economic importance, connectivity to economic growth centers and strategically important corridors, traffic volume, share of commercial vehicles, public transport routes, disaster relief, and climatic resilience functionalities. Therefore, expenditures after the 2018 floods focused first on supporting the rehabilitation of the CRN. 27 The software is PWD’s online data management platform used to manage its assets, such as roads, bridges, and buildings. It is also used for expenditure tracking, contractor management, estimation of preparation times for works, and online approvals. Page 20 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) outdated non-digital cadastral maps. Comprehensive and secure land records offer critical protections of rights when a population is displaced by disasters. Out of the 1,666 villages in the state, the Department of Revenue, the Survey and Land Records Department, and the Department of Registration completed a digital survey to integrate maps of 87 digitally resurveyed villages, with textual records of the Revenue Department and the Registration Department’s sketched maps through an e-maps portal (https://emaps.kerala.gov.in). This covered 12 of the 14 districts in the state (Pathanamthitta and Wayanad Districts were not covered), including two districts with high climate and disaster risk, given their topography and location as well as previous incidences of disaster referenced in Kerala SDMA’s Hazard Maps. This unification exercise between the three departments was implemented by the Kerala Land Records Modernization Mission.28 However, the data was not disaggregated by gender. Additional land recording is being carried out by the GoK to cover all of the state’s villages and establish a statewide digital survey with unified land records.29 Result Indicator 8: Risk-informed master plans are notified and funds for multi-year municipal infrastructure investments are allocated in annual plans by urban local bodies 50. The targets under this results area were achieved and exceeded. In June 2021, the two ULBs of Chengannur and Mananthavady prepared risk-informed master plans with the technical support of the Department of Town and Country Planning. These risk-informed master plans analyzed hazards, vulnerability, risk, and mitigation proposals. The new plans were subsequently notified in the Official Gazette of the GoK on June 30, 2021, meeting the target. A revised Town and Planning Country Act was approved by the GoK on November 14, 2021, stating that all further master plans should be risk informed and prepared on the basis of a ‘situational analysis in respect of hazard, vulnerability, risk, and proposals for mitigation and resilience’. Multiyear municipal infrastructure investment planning and budgeting was undertaken by the three ULBs of Mananthavady, Kollam, and Kozhikode, surpassing the target of two ULBs. Multiyear investment projects cover new works as well as maintenance and rehabilitation. The 13 th Five-Year Plan of the State (2017-2022) includes a November 2021 revision of ULBs’ annual planning guidelines by incorporating mandatory earmarking of funds for multiyear infrastructure projects identified as priorities in the cities’ master plans. To ensure that multiyear investment planning is well embedded in the state’s 14th Five-Year Plan (2022-2027), the State Planning Board is forming a State Resource Group that will be integrated into the plan’s preparation team and will be responsible for this aspect, further demonstrating the effectiveness of this reform. Result Indicator 9: Improved water supply and sanitation services 51. For the first time in the state, non-revenue water reduction models were adopted in 2020 and their implementation is under way through programs in three major cities (Thiruvananthapuram, Kochi, and Kozhikode), exceeding the target of two ULBs. Non-revenue water is water that has been produced and ‘lost’ before it reaches the customer and cannot be billed by meter. Water utilities bear large financial costs from treating and pumping non-revenue water. Reductions in this wasted water decrease revenue losses and support better cost recovery capture. Water reduction activities included installation of bulk 28 The mission is aimed at digital survey of the state, computerization of land records across Registration, Survey and Revenue Departments and integrated online delivery of services related to land. The governing body for the mission consists of Chief Minister as the Chairman, the Ministers for Revenue and Registration as Vice-Chairmen, Revenue Secretary as the Mission Secretary, and Commissioner for Land Revenue as the Mission Director. 29 To further establish a statewide digital resurvey and unified land records, in August 2021, the Government accorded an administrative sanction for the first phase of the ‘Digital Resurvey of 1,550 villages in the State’ at a cost of INR 3.39 billion (US$44.54 million) under the RKI. The resurvey will be completed over three years and integrates land records management of Revenue, Survey, and Registration Departments, covering all 14 districts of the state. The remaining 29 villages in the state are in the midst of a conventional hard-copy resurveying by the Department of Survey and Land Records. Page 21 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) and smart flow meters, replacement of faulty meters, geographic information system (GIS) asset mapping, pipe replacement, active leakage repairs, anti-water theft squad institutionalization to counter commercial pipes tapped illegally, reduction of unbilled connections, and development of accessible billing platforms. The non-revenue water reduction programs resulted in non-revenue water levels of 37 percent, 33.83 percent, and 36 percent in Thiruvananthapuram, Kochi, and Kozhikode, respectively, compared to the baseline of 45 percent. 52. The KWA reported O&M cost recovery of 57.58 percent in FY21 at the state level, exceeding the minimum set target of 50 percent. However, as noted earlier, this indicator’s baseline value (41 percent) relied on unaudited data, while audited data made available later showed a baseline of 54 percent, rendering the increase smaller than planned. The KWA is further increasing O&M cost recovery and own source revenue. In January 2022, the agency issued an order for a tariff increase by 5 percent (the first increase since 2014), effective from April 1, 2022. 53. The KWA has begun publicly disclosing annual performance reports on its website,30 starting with the 2019–2020 Performance Report and the 2020–2021 Provisional31 Performance Report in April 2021 and June 2021, respectively, achieving the target. These performance reports cover details on GoK budget allocations versus actual release and actual expenditure incurred at the year’s end. The reports provide detail on these capital expenditure figures by showing funded investment schemes and noting respective achievements. Salary, O&M, establishment expenses, and power charge payments are quantified separately. This is the first public reporting of the KWA—an important achievement of the Program because it supports an institutional framework for accountable and efficient water supply, which, in turn, improves the resilience of water supply infrastructure and enhanced access to safe water and improved public health, especially during disasters. In addition, the KWA has initiated activities to improve and publicly report performance by setting up a consumer portal for digital payment, AQUALOOM portal for consumer complaint redressal, SMS alert services, a service interruption information system, a digital document e-filing system, and a contractor’s license management system. Such digital public interface reforms are a crucial first step toward professionalizing and improving water supply services. 54. The result for adoption of cost-effective septage and sewerage programs exceeded the target. These programs were taken on by the centrally sponsored Atal Mission for Rejuvenation and Urban Transformation (AMRUT) scheme. AMRUT prepared a roadmap for statewide urban liquid waste sanitation improvements, which it submitted to the LSGD in October 2020. On this basis, in August 2021, the KWA embarked on a topographical survey in 28 ULBs for the preparation of Detailed Engineering Reports, which informed bid preparations following the GoK’s administrative sanctions, including cost- effective review of options. Currently, 18 sewage and six septage treatment plants are under construction under this AMRUT scheme across nine ULBs.32 Additionally, the RKI and KIIFB’s Investment in Municipal and Panchayath Asset Creation for Transformation (IMPACT) scheme is supporting three sewage and three septage treatment plants in six additional ULBs33 (currently at the preconstruction stage). These new plants will increase service standards and coverage, a crucial component in treating wastewater during floods, maintaining sanitation, and preventing pollution of water resources. 30 KWA website. https://kwa.kerala.gov.in/en/performance-report/. 31 Pending final verification and revenue/expenditure data review. 32 Alappuzha, Guruvayur, Kannur, Kollam, Kochi, Kozhikode, Palakkad, Thrissur, and Thiruvananthapuram. 33 Cherthala, Kunnamkulam, Ottapalam, Vadakara, Varkala, and Wadakanchery. Page 22 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) C. Overall Outcome Rating and Justification Rating: Satisfactory 55. The Satisfactory outcome rating is based on a Highly Satisfactory relevance rating and a Satisfactory efficacy rating. Implementing cross-sectoral reforms across 11 agencies to strengthen disaster and climate resilience under one of two DPO series planned was a challenge which the GoK largely met and at times exceeded. Of the eight assessed Results Areas, seven were achieved or exceeded. The unmet result (Results Area 4) did not compromise the achievement of the overall PDO because numerous achievements in the finance, disaster risk management, and sectors that are key to the state and communities’ resilience against the impacts of natural disasters and climate change were completed satisfactorily and carried forward by the state and local governments; and river basin management plans are expected to be developed in the coming months once the RBCMA is established. The GoK’s institutional and financial capacity for managing disaster risks and climate change (Pillar 1) was improved through the adoption and implementation of the RKDP as an overarching strategy and program for the GoK to address disaster and climate resilience, private financing for resilient infrastructure investment, and improved capacity to respond to disasters through updated disaster risk management plans. The mainstreaming of disaster and climate resilience into critical infrastructure and services (Pillar 2) was achieved through the establishment of AEZs and reorganization of the DoA, approval of a revision to the Town and Planning Country Act to make urban master plans risk informed and enable multiyear municipal infrastructure investments, performance-based contracting for resilient road management, and improved water supply and sanitation services. All Results Areas and Prior Actions continue to remain highly relevant to the GoI, GoK, and the World Bank, and further work is being implemented by the World Bank and other development partners to take forward the reforms that this operation generated. III. OTHER OUTCOMES AND IMPACTS A. Poverty, Gender, and Social Impacts 56. Worldwide, women are disproportionately affected by disasters, including higher rates of mortality.34 Gender-differentiated impacts of disasters can exacerbate gender inequality, which in turn can worsen resilience to disasters.35 By strengthening the resilience of the state to disasters and climate change, including through key sectors such as disaster risk management and agriculture that directly serve vulnerable populations, the DPO likely had positive poverty, gender, and social impacts, although these impacts were not measured. Moreover, under Pillar 1, the DPO sought to ensure that activities benefitted women and children by supporting initiatives such as livelihood recovery and skills training under Kudumbashree. Further, the operation enhanced the state’s institutional and financial capacity to protect the assets and livelihoods of poor and vulnerable groups through an inclusive and participatory approach for program and policy development. For example, the revision of the GoK’s Disaster Risk Management Strategy, which included outreach to vulnerable groups, is expected to help protect the elderly, women, children, and persons with disabilities, from disaster impacts. The resources mobilized under this DPO were used to implement RKDP activities that supported marginalized groups, such as skills training for women affected by flooding, and participatory fish production programs targeting scheduled tribes and scheduled castes. Pillar 2 focused on improving the livelihoods of vulnerable groups by mainstreaming 34 Neumayer, Eric, and Thomas Plümper. 2007. “The Gendered Nature of Natural Disasters: The Impact of Catastrophic Events on the Gender Gap in Life Expectancy, 1981–2002. Annals of the Association of American Geographers 97 (3): 551–566. 35 Erman, Alvina, Sophie Anne De Vries Robbe, Stephan Fabian Thies, Kayenat Kabir, Mirai Maruo. 2021. Gender Dimensions of Disaster Risk and Resilience: Existing Evidence. Washington, DC: World Bank. https://openknowledge.worldbank.org/handle/10986/35202. Page 23 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) risk-based considerations into critical infrastructure and services. The DPO also had positive spillover impacts for gender and social standards for government activities. For example, the roads and bridges sector managed by the PWD adopted impartial gender standards for wages to workers. B. Environmental, Forests, and Natural Resource Aspects 57. The GoK systematically adopted environmental safeguards introduced by the World Bank, such as Environmental and Social Impact Assessments and Environmental Management Plans, for all externally funded projects. By strengthening the resilience of the state to disasters and climate change, including through key sectors that affect Kerala’s natural resources, such as agriculture, urban, and water, the Program likely had positive environmental impacts, although these impacts were not measured. Additionally, through the programmatic TA that the World Bank provided to the GoK, a study for an “actionable roadmap for mainstreaming climate actions and disaster risk management” was carried out by the World Resources Institute, identifying a roadmap of environmental actions for the GoK’s line departments. This study informed the updating of the state’s Action Plan on Climate Change. 58. The World Bank programmatic TA support linked to this Program laid the groundwork for the World Bank Kerala Solid Waste Management Project (approved in FY21), which aims to develop an integrated solid waste management system. Poor garbage and plastic waste disposal exacerbated the 2018 floods due to blockages of drains and dams. Openly dumped waste increased the flood retention period and lack of processing and disposal facilities led to a public hygiene problem. In May 2020, the GoK adopted a new Integrated Solid Waste and Plastic Waste Management Strategy, outlining institutional, policy, service delivery, and infrastructure improvements for better solid waste management. The new project focuses on the financial, operational, and environmental sustainability of the state’s solid waste management system and supports performance-based incentive grants for cities. C. Institutional Change/Strengthening 59. The DPO, by design, brought transformational change to how the government plans and implements programs that enhance the resilience of the state to natural disasters and climate change. As described in sections I and II, the DPO supported the implementation of cross-sectoral reforms deemed necessary in the RKDP. Multiple government agencies were involved in embedding resilience into key affected sectors, and agencies that historically operated in a fragmented manner began to coordinate with a shared understanding of roles and responsibilities. 60. The DPO leveraged institutional support from the World Bank programmatic TA and the SPF. The TA financed analytics that underpinned major policy and institutional reforms, international technical expertise, just-in-time support, capacity building of counterpart agencies, stakeholder consultations, and partnerships. 36 Under the SPF, the World Bank leveraged US$6.77 million of TA from the German Development Bank (Kreditanstalt für Wiederaufbau, KfW) focused on institutional enhancements in the roads, urban, and water supply sanitation sectors and US$0.56 million of TA from the French Development Agency (Agence Française de Développement, AFD) focused on institutional strengthening for urban 36To date, the World Bank has mobilized US$2.66 million for functional reviews and human resource diagnostics of the DoA and PWD, initiation of city-level multi-hazard risk assessments, development of a roadmap for land administration system modernization, household surveys, drafting of a State Sanitation Strategy, a fiscal sustainability analysis, assistance on Diaspora bond structuring, development of a disaster risk financing framework, development of a state-level social protection platform, assistance for drafting the River Basin Conservation and Management Act, workshops and technical backstopping on performance-based contracting and annual planning guidelines, background studies for a State Water Supply Policy, and assistance on environmental and social analysis of the potential impact of the policy reforms. Page 24 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) reforms. The SPF further facilitated innovative partnerships between the GoK and national think tanks to support institutional capacity building of key state departments and agencies. Significant institutional changes supported by the DPO and TA are summarized in Table 2. Table 2. Institutional Changes Supported by the Program and TA Department Institutional Change RKI Chief DPO1 strengthened the capacity of the RKI to carry out reforms, which strengthened disaster and Executive climate resilience across agencies through daily interactions, dialogue, and negotiations with Officer (CEO) sectoral agencies, development partners, and the World Bank. A memorandum of understanding / Secretariat was signed between the GoK and the Infrastructure Development Finance Company (IDFC) Foundation in 2019, whereby IDFC provided sector experts, capacity support, and management expertise to the GoK in priority sectors over two years. Department World Bank TA supported debt sustainability analysis, studies on stamp duty, and provided policy of Finance advice, which informed the shaping of the GoK’s 2019–2020 state budget. WRD The Kerala Water Resources Information System was introduced as a decision support system for integrated river basin management and flood risk management. The system allows for real-time, evidence-based decision-making during floods and droughts and transforms department planning, investing, and management. Kerala DPO1 supported the development of local disaster management plans for 14 districts and all local SDMA governments, institutionalizing disaster preparedness, response, and recovery protocols for the first time at the local levels. DoA The division of the state into five AEZs and reorganization of the DoA was a significant institutional reform which supported the consideration of ecological variance and climate risks in the agriculture sector. Strengthening e-governance, including an online migration of department services and a comprehensive online database on farmers, supported the streamlining of administrative processes and provided more time for officials to attend field-oriented activities. LSGD The revised Town and Planning Country Act was approved by the GoK on November 14, 2021, ensuring that all future master plans are risk-informed through ‘situational analysis in respect of hazard, vulnerability, risk, and proposals for mitigation and resilience.’ The legal basis is expected to bring foundational change in city planning which previously did not fully consider climate risk. PWD The introduction of considering climate risks, as well as economic, environmental, and social factors in the CRN; and long-term performance-based contracts that address climate and disaster resilience needs, contingency budgeting, and emergency response mechanisms, were fundamental shifts from traditional reactive asset management to proactive asset management. The Kerala Highway Research Institute was restructured as a Centre of Excellence with latest technological instruments to ensure quality of road construction and maintenance. A Road Maintenance and Management System through database collection and software is now being utilized with division offices equipped with e-portal file management systems. D. Other Unintended Outcomes and Impacts 61. The preparation of the DPO series led to the development of the SPF, codifying a long-term resilience agenda into consequent World Bank and other partner engagements in Kerala . The SPF has paved the way for sector-level lending in the state that strategically builds on the reforms of the DPO. The clear and common framework has also facilitated collaboration among development partners, industry, and think tanks through a common understanding of key challenges and goals for GoK’s development. The main donor-supported partnership that emerged was between the World Bank and KfW, which retroactively provided parallel financing of a €100 million loan to DPO1; this loan was disbursed in March 2021 (one year and seven months after IDA disbursement in August 2019). The SPF has also facilitated KfW’s contribution for further resilience investments following DPO1, such as €170 million for resilient roads investment and €5 million of grant resources to support the resilience agenda in the urban, water Page 25 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) service delivery, and roads sectors. The ongoing World Bank-financed Solid Waste Management Project received US$105 million in co-financing from the Asian Infrastructure Investment Bank (AIIB) to strengthen institutional and service delivery systems for solid waste management. The Resilient Kerala Program for Results PforR benefits from AIIB co-financing of US$125 million and AFD co-financing of €100 million due to the overall framework and agenda set by the SPF. AFD additionally contributed €500,000 in grant resources toward resilient urban planning. 62. The strong dialogue and partnership between the GoK and World Bank have facilitated a ‘whole of Bank’ approach under the SPF. Approved on July 9, 2021, a US$150 million green loan was provided by the International Finance Corporation (IFC) to the KIIFB to finance critical green infrastructure for the state. Funds were deployed across two components: (a) construction of four new water supply projects and (b) construction of four hospital expansions which are to be Excellence in Design for Greater Efficiencies (EDGE) certified. The IFC team is also working with the Multilateral Investment Guarantee Agency to bring in commercial banks to finance part of this loan. IV. BANK PERFORMANCE Rating: Satisfactory Design/Preparation 63. The design and preparation of the DPO series were supported by real-time and relevant analytical underpinnings. The design was informed by the JRDNA, PDNA, and RKDP, which relied on extensive analytics, fieldwork, and dialogue undertaken by the World Bank and GoK departments. 37 The RKDP was finalized following statewide workshops and consultations with government agencies, CSOs, academia, and the general public. This provided extensive and real-time information about reform needs of the different sectors. As noted, some of the information used to set the baselines and targets of DPO1 was incomplete or missing during preparation. 64. The World Bank appropriately assessed the overall risk of the operation as Substantial and set strong mitigation measures. A key risk identified was political economy, considering the nature of the DPO in addressing legacy challenges across multiple departments. This was largely mitigated by continuous dialogue with the RKI and relevant agencies, supported by two dedicated World Bank team members of the Program based in Kerala. 65. The DPO series built on lessons learned from previous World Bank engagements in Kerala and India more broadly 38 as well as the CPF and SCD. Previous DPO series and projects that addressed cross- sectoral reforms such as the First, Second, and Third Fiscal Consolidation, Sustainable Energy and Competitiveness DPF (P157704, P161228, P164079) and the Andhra Pradesh Economic Reform Program II (P075191) informed the overall design of the DPO series, particularly the design of complex cross- 37 A wide array of sources was utilized from the GoK, the National Government, the World Bank, and ADB. Consultations were conducted with a broad range of stakeholders, including state, district, and local governments; affected local communities; vulnerable groups such as women, the elderly, scheduled castes/tribes; private sector, and CSOs. These consultations helped identify (a) transformational policy and institutional reforms for strengthening resilience in sectors, (b) immediate and critical sector studies, and (c) priority investments. In March 2019, the GoK conducted a number of statewide workshops and consultations, both face-to-face and online, to obtain public feedback on the RKDP. The design of reforms in the agriculture, roads, and urban sectors was guided by several workshops and stakeholder consultations across the state with the Local Self- Government Institutions, CSOs, private sector, and academia. 38 Previous engagements in the state were the Second Kerala State Transport Project, the National Dam Rehabilitation and Improvement Project (P089985), the National Hydrology Project, and the National Cyclone Risk Mitigation Project Phase 2. Page 26 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) sectoral reforms. Moreover, the World Bank Independent Evaluation Group report, ‘World Bank Engagement at the State Level’, 39 which examined lessons learned from state engagements in other countries such as Brazil, informed the structuring of state-specific engagements and programs. 66. The DPO series was developed through adequate coordination with other development partners. Partnership consultations were organized with ADB, the Japan International Cooperation Agency, KfW, AFD, and AIIB to discuss how each agency could support the recovery and development agenda of the GoK. This process helped shape the DPO series and ultimately led to the provision of the co-financing noted earlier. Development partners held monthly meetings to coordinate actions, TA, missions, and operations. Joint preparation missions for DPO2 were carried out by KfW and the World Bank, in support of co-financing the project. 67. As noted earlier, a weakness during preparation was the setting of some indicators, baselines, and targets with room for interpretation. Inconsistencies existed between the phrasing of the indicator names in the PD’s Policy and Results Matrix and those entered in the World Bank automated system and later reflected in the Implementation Status and Results Reports (ISRs). However, the baselines and targets of these indicators were mostly identical, 40 and therefore, project performance and results achievement were not affected. Implementation 68. The World Bank took an adaptive approach to facilitate the achievement of results. After DPO2 was truncated, the World Bank quickly agreed with the GoK to pivot to a PforR. The World Bank team also ensured that the initiated institutional reforms to enhance resilience to natural disasters and climate change in DPO1 where to be further progressed through the PforR. To address implementation delays caused by the noted COVID-19 externalities, the World Bank authorized an extension of the closing date. The World Bank ensured continuous implementation support by conducting virtual missions, meetings, TA, and monitoring and evaluation. 69. The World Bank fulfilled its fiduciary role. Missions took place at an average rate of five per year with a diverse team of specialists in all technical and operational aspects of the operation. Missions included both high-level and technical meetings with stakeholders and partners and, when possible, field visits to key sites to monitor progress toward the achievement of the PDO, ensure compliance with fiduciary and safeguards aspects, and resolve issues as needed. The missions resulted in comprehensive Aide Memoires, Management Letters, and ISRs, which provided frank evaluation of progress and issues and communicated to the GoK. V. RISK TO SUSTAINABILITY OF DEVELOPMENT OUTCOMES 70. DPO1 enhanced Kerala’s resilience to the impacts of natural disasters and climate change by strengthening systems for resilience and embedding resilience in key sectors. The achieved reforms are expected to be sustained due to the policies and institutional reforms instigated in DPO1; the continued 39 World Bank Independent Evaluation Group. 2010. World Bank Engagement at the State Level. Washington, DC: World Bank. https://ieg.worldbankgroup.org/sites/default/files/Data/reports/sle_full_eval_0.pdf 40 While indicators in the PD’s Policy and Results Matrix were written descriptively and framed as outcomes, indicators entered in the World Bank Operations Portal system were phrased in a more measurable manner. Discussions with the team indicate that this difference arose from inconsistent guidelines between the PD Result Matrix and the Operations Portal datasheet. Page 27 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) existence of the RKI as a nodal agency for the implementation of the RKDP mandate and Kerala’s disaster and climate resilience initiatives; and the ownership and commitment of the GoK on the resilience agenda, which has remained consistently strong amid challenges such as the COVID-19 pandemic. 71. The sustainability of development outcomes has further been supported through follow-on operations as noted in section VI.B and programs by development partners as detailed in section III.D VI. LESSONS AND NEXT PHASE A. Lessons Learned 72. Disasters can provide an opportunity to engage and support governments to integrate disaster and climate resilience into sectoral policies. The 2018 floods were a turning point for Kerala—the RKDP developed following the JRDNA and PDNA led to a shared ‘whole of government’ understanding on the needs and necessary action steps to strengthen disaster and climate resilience—an issue which the state had faced for several years. The timing of World Bank’s support, which started in the initial stages of the disaster assessment, contributed to a strong relationship with GoK. This momentum, backed by evidence- based and actionable recommendations, enabled the state to address long-standing legacy challenges such as reorganization of the DoA across AEZs and revision of the Town and Planning Country Act to allow for risk-informed urban planning. Incomplete data during the design of an emergency operation can be gathered during implementation and adjusted as needed to fulfill evaluation requirements. 73. Ensuring legitimacy of the coordinating agency within the government and among partners and structuring reforms around a policy document endorsed by relevant agencies is critical for cross-sector reforms. The GoK established the RKI as the state-level entity, led by the Chief Minister, in charge of formulating and coordinating the implementation of resilience reform programs. A Cabinet meeting held on March 5, 2019, directed the RKI and GoK departments to take necessary steps to implement the reforms and comply with the requirements of the proposed operation, giving the RKI legitimacy as the coordination agency and the DPO series as a key implementation mechanism. Support to the RKI from the World Bank and other development partners further strengthened its status as the nodal agency. The RKI facilitated the achievement of PDO through relying on its formal mandate to convene multiple ministries under the resilience agenda and informal buy-in and respect from sectoral ministries. The RKDP, the main policy document emerging from the 2018 floods and formulated with the support of the World Bank, brought a shared understanding among the various agencies in the GoK on the challenges facing the state and directed a coherent path to addressing these challenges. 74. Adaptive and cross-sectoral program management is especially critical for conducting policy reforms across multiple sectors with institutional challenges. Despite the change in the GoI’s financing strategy and truncation of the DPO series, the GoK continued the reform process through a PforR, directly building on the outcomes of this DPO operation. This was possible due to the World Bank’s ability to adapt rapidly to the client’s priorities and the existence of a multisectoral state agency (RKI) specifically tasked with interagency coordination, which was critical to adapt quickly to an evolving environment. 75. The DPO can be an effective and timely financing instrument for comprehensive post-disaster policy reforms that addresses the underlying drivers of disaster and climate vulnerability. Due to the emergency nature of disaster response, the DPO series was approved 10 months after the floods. Creating Page 28 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) sustainable statewide impact across 11 different government departments and nine different sectors, by using a PforR or IPF operation would not have allowed the World Bank to respond as rapidly to the GoK in its time of need. Further, the DPO series facilitated an innovative approach to disaster response and recovery, moving away from the usual focus on early recovery and reconstruction towards addressing the underlying institutional vulnerabilities that exacerbate disaster impacts. This DPO played the appropriate role of an emergency response that addressed the key policy changes required for an ambitious resilience reform agenda, in turn setting a strong institutional foundation for future infrastructure investments that support physical resilience to natural disasters (as taken forward by the follow-on PforR operation). 76. A state-level partnership framework with clear objectives endorsed by the government, the World Bank, and development partners, can support a holistic and wide-ranging approach to long-term and cross-sectoral reforms within a state. For a long-term and complex challenge such as disaster and climate resilience, sector-specific projects by the World Bank or other partners alone do not suffice. The government, multilateral banks, and development partners must all work together to leverage expertise and financing instruments with a shared understanding of a state’s needs and objectives. In this regard, the World Bank can play a convening role under a common framework, such as the SPF. B. Next Phase 77. The World Bank continues to work with the GoK on the resilience agenda. The ongoing Resilient Kerala PforR (US$125 million, 2021–2026) and its AF (US$150 million, 2022–2026, under preparation) directly follow DPO1 and take forward the DPO reforms (see annex 6). The PforR’s Pillars and Result Indicators directly build on DPO1 outcomes. Follow on sector-specific operations include the Kerala Solid Waste Management Project (IPF, US$105 million, 2021–2027), which aims to develop an integrated solid waste management system for cities, and the Kerala Climate Resilient Agri-value Chain Modernization Project (PforR, P178254, 2023–2027, under preparation), which aims to develop inclusive and competitive climate-resilient agri-food value chains in all AEZs of Kerala, were initiated following this DPO. Page 29 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) ANNEX 1. RESULTS FRAMEWORK . RESULTS INDICATORS Pillar: Enhancing Institutional and Financial Capacity for Managing Disaster Risks and Climate Change Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Percentage of medium-term (1- Percentage 0.00 25.00 25.06 3 years) resilient recovery activities implemented as per 27-Jun-2019 30-Jun-2021 01-Apr-2022 RKDP priorities and programs. Comments (achievements against targets): Target achieved (100%). INR 74.16 billion (US$973.15 million) out of the total INR 295.89 billion (US$3.88 billion) of the RKDP’s mid-term investments were implemented in 2019-2021, comprising 25.06%. Investments included the repair of 207 km of flood-damaged roads, reconstruction of 29 Anganwadi Centers (childcare centers), repair and strengthening of paddy cultivation infrastructure covering 4,000 hectares - all incorporating disaster and climate resilient standards on design and construction. Information source: Review of Government Orders relevant to the RKDP’s investments. Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Number of women and Number 0.00 1,000.00 3,121.53 children benefitting from RKDP (Thousand) programs. 27-Jun-2019 30-Jun-2021 01-Apr-2022 Page 30 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) Comments (achievements against targets): Target exceeded (312%). RKDP programs benefited 3,121,534 women and children in 2019-2021. The RKDP programs that women and children benefited from included community micro-irrigation, skills building, and infrastructure for paddy cultivation. The result was calculated estimating the number of women and children per the census and district population data against total beneficiary numbers. Information source: State of Kerala 2011 Census (most recent census) and government-provided data on implemented programs. Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Additional public and private Amount(USD) 0.00 500,000,000.00 567,034,308.00 financial resources are mobilized for resilient recovery 27-Jun-2019 30-Jun-2021 01-Apr-2022 Comments (achievements against targets): Target exceeded (113%). A total amount of US$567.03 million was mobilized through flood cess and Masala bonds, exceeding the target of US$500 million. A flood cess was introduced by the State Goods and Services Tax Department in August 2019 for two years. When it closed, it had collected INR 21.71 billion (US$284.90 million). The Masala bond was issued in March 2019 through the Kerala Infrastructure Investment Fund Board through a Medium-Term Note Program. It raised INR 21.5 billion (US$282.13 million). The issuance of the Diaspora bond was put on hold in April 2021 in the context of the COVID-19 pandemic and unfavorable market conditions. Information source: Government Order for the flood cess, Kerala Infrastructure Investment Fund Medium-Term Note Programme Document, and Kerala Infrastructure Investment Fund bank statement. Page 31 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Improved capacity for Text Weak coordination A State-wide emergency A state-wide emergency emergency, disaster, and capacity among key management exercise is management exercise satisfactorily climate risk management with agencies to respond to satisfactorily completed completed as per the updated State outreach to vulnerable emergencies and weak as per updated State Disaster Risk Management Plan, communities. outreach to vulnerable DRM Plan, which covers which covers disaster and climate communities, as disaster and climate resilience and improved outreach, as evidenced during August resilience and improved evidenced by independent observer’s 2018 Floods. outreach, as evidenced report. by independent observer’s report. 27-Jun-2019 30-Jun-2021 01-Apr-2022 Comments (achievements against targets): Target achieved (100%). A statewide emergency management exercise was completed on March 10 and 16, 2022 according to the updated State Disaster Risk Management Plan, covering disaster and climate resilience and improved outreach to communities. The exercise was further evidenced by an independent observer’s report by the National State Disaster Management Authority. The exercise was conducted as per the State Disaster Risk Management Plan’s Orange Book of Disaster Management 1—Kerala: Standard Operating Procedures and Emergency Functions Plan, which had been updated following the 2018 floods in 2019 and again in May 2020. The independent observer’s report noted the high quality of the exercise and the disaster risk management procedures of the state, including the Standard Operating Procedures. Hazard maps for floods (including 1 in 10 year to 1 in 500 year floods) and landslides were readily available. The exercise improved outreach by proactively and systematically engaging community members in activities such as evacuation and first-aid treatment. Information source: The State Disaster Risk Management Plan’s Orange Book of Disaster Management 1—Kerala: Standard Operating Procedures and Emergency Functions Plan, report by the Kerala State Disaster Management Agency on the State-wide emergency management exercise, which included photos, and an independent observer’s report by the National Disaster Management Authority on the exercise. Page 32 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) Pillar: Mainstreaming Disaster and Climate Resilience into Critical Infrastructure and Services Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Improved river basin planning Text Inadequate river basin River basin management River basin management plans not and water infrastructure planning and management plans are developed for developed for two priority river operations management for functions at the State two priority river basins basins (i.e. Pamba and Periyar river climate resilience at the State level. (i.e. Pamba and Periyar basins) by River Basin Conservation level. river basins) by River and Management Authority. Basin Conservation and Management Authority. 27-Jun-2019 30-Jun-2021 01-Apr-2022 Comments (achievements against targets): Target not achieved. River basin management plans were not developed for the two priority river basins by the River Basin Conservation and Management Authority. Information source: RKI. Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Number of agroecological Number 0.00 2.00 5.00 zones adopting resilient and sustainable agroecological zone 27-Jun-2019 30-Jun-2021 01-Apr-2022 development plans. Comments (achievements against targets): Target exceeded (250%). AEZ based development plans were adopted by the DoA for all the five AEZs (AEZ I, coastal plains; AEZ II, midland laterites; AEZ III, foothills; AEZ IV, high hills; and AEZ V, Palakkad plains). After the five AEZs were developed, in January 2020, the Kerala Agricultural University conducted a Page 33 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) study that further identified 23 AEUs within the AEZs, as well as AEU-based cropping patterns. In April 2020, a Government Order (No.393/2020/AGRI) entrusted the Director of Agriculture to develop, plan, and budget AEZ and AEU based agriculture schemes. AEZ-based funds allocation and plans were applied to 11 crop-specific schemes for 2020-2021 in all AEZs. Information source: Six Government Orders and AEZ based development plans. Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Percentage of agriculture risk Percentage 10.00 20.00 21.46 insurance uptake 27-Jun-2019 30-Jun-2021 24-Feb-2021 Comments (achievements against targets): Target exceeded (107%). At Program closing, 427,739 farmers were covered by the State Crop Insurance Scheme, out of 1,993,000 farmers in the state (according to the 2011 Census). The DoA took key initiatives to raise farmers’ awareness of insurance schemes and encourage enrollment in national and state schemes. Information source: Two related Government Orders and detailed insurance enrollment numbers (by insurance product type and crop) provided by the DoA and RKI. Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Number of key core road Number 0.00 5.00 8.00 network corridors adopting performance-based 27-Jun-2019 30-Jun-2021 01-Apr-2022 Page 34 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) management contract based on resilient standards Comments (achievements against targets): Target exceeded (160%). The eight road network corridors that adopted performance-based management contract based on resilient standards are Kollam- Ayoor, Kayamkulam-Mavelikkara-Thiruvalla, KP Road-Kayamkulam to Adoor, Thrikkunnipuzha-Thattarambalam, Pandalam-Kaipattor, Ponkunnam- Thodupuzha, Munnar-Top Station, and Top Station-Vattavada. The four hilly areas are located in the districts of Idukki and Pathanamthitta. The ‘Top Station-Vattavada’ road network in Idukki District serves an area with significant tribal population concentration. These contracts were awarded in 2021 and incorporated climate and disaster resilience needs in service standards, contingency budgeting, and emergency response mechanisms. Building on this success, the PWD has opened bidding on two additional contracts, which are expected to be tendered soon. Information source: Review of the GoK's output- and performance- based road contracts. Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Increased share of road sector Percentage 0.00 20.00 56.09 budget allocation for the core road network from the 2018 27-Jun-2019 30-Jun-2021 01-Apr-2022 budget allocation for the core roads Comments (achievements against targets): Target exceeded (280%). The result is based on a comparison of actual expenditures on state highways and major district roads in FY18-19, FY19-20, and in FY20-21 as a proxy for the budget allocation for the core road network. PWD analysis found that in FY20-21, there was a 56.09% increase in state highways and major district roads expenditure compared to the expenditures in the baseline year. To triangulate this data, road-related billing details were analyzed through the PWD’s PRICE software for billing data in FY20-21. As this system was put in place in June 2019, comparable billing data is unavailable for 2018-19 and incomplete for 2019-20. The PD described that in FY18-19, approximately INR 350,000 (US$5,000) per km was budgeted by the state for development and maintenance of state highways and major district roads. The software shows Page 35 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) expenditure of INR 5.8 billion (US$76.16 million) on the CRN in FY20-21. This translated to approximately INR 829,142 (US$10,880) spent per km on development and maintenance, which is 117.6% higher than the baseline expenditure per km noted in the PD. In summary, the two analyses found that the results exceeded the minimum set target of a 20% increase, attributed in large part to Department of Finance allowing the PWD it to exceed spending on budget estimates for three years following the 2018 floods. Information source: Review of the Government Order, correspondence, and documentary evidence of expenditure provided by the PWD. Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Number of high-risk districts Number 0.00 2.00 0.00 implementing a Kerala Land Records Modernization Mission 27-Jun-2019 30-Jun-2021 01-Apr-2022 program for single digital land record & map, providing gender disaggregated data on land ownership & transaction Comments (achievements against targets): Target partially achieved. The Department of Revenue, the Survey and Land Records Department, and the Department of Registration completed a digital survey to integrate maps of 87 digitally resurveyed villages across 12 of the 14 districts in the state with existing textual records and sketched maps. The 12 districts included 2 high-risk districts that have high climate and disaster risk given their topography and location as well as previous incidences of disaster. The exercise was integrated with textual data and published on an e-maps portal (https://emaps.kerala.gov.in). However, data were not disaggregated by gender. Information source: Review of the Government Order and website (https://emaps.kerala.gov.in). Page 36 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Number of urban local bodies Number 0.00 2.00 2.00 preparing and notifying risk- informed master plans 27-Jun-2019 30-Jun-2021 01-Apr-2022 Comments (achievements against targets): Target achieved (100%). In June 2021, the two ULBs of Chengannur (flood risk) and Mananthavady (landslide risk) prepared risk-informed master plans with the technical support of the Department of Town and Country Planning. These risk-informed master plans analyze hazards, vulnerability, and risk as well as proposals for mitigation and resilience. The publication of the new Plans were subsequently notified in the Official Gazette of the GoK on June 30, 2021. A revised Town and Planning Country Act was approved by the Governor of Kerala on November 14, 2021, stating that all further master plans should be risk- informed, i.e., prepared on the basis of a ‘situational analysis in respect of hazard, vulnerability, risk, and proposals for mitigation and resilience’. Information source: Review of two Government Orders by the LSGD. Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Number of urban local bodies Number 0.00 2.00 3.00 undertaking multi-year municipal infrastructure 27-Jun-2019 30-Jun-2021 01-Apr-2022 investment planning and budgeting Comments (achievements against targets): Target exceeded (150%). Multi-year municipal infrastructure investment planning and budgeting was undertaken by the three ULBs of Mananthavady, Kollam, and Kozhikode. The state's 13th Five-Year Plan (2017-2022) includes a November 2021 revision of ULBs’ annual planning guidelines by incorporating mandatory earmarking of funds for multi-year infrastructure projects identified as priorities in the cities’ master plans and other evolving priorities. To ensure that multi-year investment planning is well embedded in the state’s 14th Five-Year Plan (2022-2027), the State Planning Board is formulating a State Page 37 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) Resource Group that will be incorporated into the preparation team of the plan and will be responsible for this aspect, further demonstrating the effectiveness of this reform. Information source: Review of three Government Orders by the LSGD, budget for Mananthavady multi-year municipal planning and budgeting, and project details of the Kozhikode Municipal Corporation. Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Number of urban local bodies Number 0.00 2.00 3.00 adopting non-revenue water reduction models 27-Jun-2019 30-Jun-2021 01-Apr-2022 Comments (achievements against targets): Target exceeded (150%).Non-revenue water reduction models were adopted in 2020 and are underway in three major cities: Thiruvananthapuram, Kochi, and Kozhikode. Reduction activities included installation of bulk and smart flow meters, replacement of faulty meter, GIS asset mapping, pipe replacement and active leakage repairs, institutionalization of an anti-water theft squad to counter commercial pipes that were tapped illegally, reduction of unbilled connections, and development of more accessible billing platforms. The non-revenue water reduction programs have already resulted in non-revenue water levels of 37%, 33.83%, and 36% in the Thiruvananthapuram, Kochi, and Kozhikode ULBs, respectively, compared to a baseline of 45%. Information source: Review of KWA report. Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Percentage of O&M cost Percentage 41.00 50.00 57.58 recovery at state level for 27-Jun-2019 30-Jun-2021 01-Apr-2022 Page 38 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) improved water supply and sanitation services Comments (achievements against targets): Target exceeded (115%). The KWA reported O&M cost recovery of 57.58% in FY21 at the state level. However, this indicator’s baseline value (41%) relied on unaudited data, while audited data made available later showed a baseline of 54%, rendering the increase smaller than planned. To further increase O&M cost recovery and own source revenue, in January 2022, the KWA issued an order for a tariff increase by 5% with effect from April 1, 2022. Information source: Review of two O&M cost recovery related correspondence by the KWA. Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Annual Performance Report is Text No Annual Performance Annual Performance Annual Performance Report is publicly disclosed by KWA. Report by KWA Report is publicly publicly disclosed by the KWA. disclosed by KWA. 27-Jun-2019 30-Jun-2021 01-Apr-2022 Comments (achievements against targets): Target achieved (100%). The KWA has begun publicly disclosing annual performance reports on its website (https://kwa.kerala.gov.in/en/performance- report/), starting with the 2019-2020 Performance Report and the 2020-2021 Provisional Performance Report in April 2021 and June 2021, respectively. These performance reports cover details on GoK budget allocations versus actual release and actual expenditure incurred by the KWA at the year’s end. The reports further provide detail on these capital expenditure figures by showing which investment schemes they funded and noting the respective achievements. Salary, O&M, establishment expenses, and power charge payments are quantified separately. In parallel, the KWA has initiated activities to improve and publicly report its performance by setting up a consumer portal for digital payment, AQUALOOM portal for consumer complaint redressal, SMS alert services, service interruption information system, a digital document e-filing system, and a contractor's license management system. Information source: Review of the report provided by the KWA. Page 39 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Number of urban local bodies Number 0.00 5.00 9.00 adopting cost-effective septage and sewerage programs 27-Jun-2019 30-Jun-2021 01-Apr-2022 Comments (achievements against targets): Target exceeded (180%). In August 2021, the KWA embarked on a topographical survey in 28 selected ULBs for preparation of Detailed Engineering Reports, which in turn informed bid preparations. Bids followed the GoK’s strict administrative sanctions, including cost-effective review of technical options. Currently, 18 sewage and six septage treatment plants are under construction in the AMRUT scheme across the nine ULBs of Alappuzha, Guruvayur, Kannur, Kollam, Kochi, Kozhikode, Palakkad, Thrissur, and Thiruvananthapuram. Additionally, the RKI and KIIFB’s IMPACT scheme are supporting three sewage and three septage treatment plants in six additional ULBs (Cherthala, Kunnamkulam, Ottapalam, Vadakara, Varkala, and Wadakanchery), which are at a pre-construction stage (approved or have technical designs under preparation). Information source: Review of three Government Orders by the RKI, KWA, and LSGD, report provided by the KWA, and status update by the KWA on AMRUT progress. . Page 40 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION PROCESSES A. TASK TEAM MEMBERS Name Role Preparation Elif Ayhan, Deepak Singh, Balakrishna Menon Task Team Leaders Parameswaran Christoph Pusch, Catalina Marulanda, Michael Haney, Practice Managers Kathryn Hollifield, Shomik Raj Mehndiratta, Chakib Jenane Sumila Gulyani Program Leader Heenaben Yatin Doshi Senior Procurement Specialist Bernadeen Enoka Wijegunawardene, Supriti Dua, Bogdan Senior Financial Management Constantin Constantinescu Specialists Pedro Arizti Senior Public Sector Specialist Nagaraja Rao Harshadeep Lead Environment Specialist Dilip K. Ratha, Qaiser M. Khan Lead Economists Pawan G. Patil, Aurelien Kruse, Sebastian S. James, Dhruv Senior Economists Sharma Rangeet Ghosh Economist Halla Maher Qaddumi Senior Water Economist Vinaya Vittal Vemuri, Heather Sophia Fernandes Senior Program Assistants Lilian MacArthur, Vidya Mahesh Program Assistant Smita Misra Lead Water Supply and Sanitation Specialist Anju Gaur, Abedalrazq F. Khalil, Chabungbam Rajagopal Senior Water Resources Management Singh Specialists Fatima Zehra Shah Senior Operations Officer Arnab Bandyopadhyay Lead Transport Specialist Uri Raich Senior Urban Specialist Harsh Goyal Urban Development Specialist Vinayak Narayan Ghatate Senior Rural Development Specialist Mehul Jain Climate Change Specialist Hemang D. Karelia Senior Disaster Risk Management Specialist Atishay Abbhi, Naho Shibuya, Masatsugu Takamatsu Disaster Risk Management Specialists Page 41 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) Harjot Kaur Senior Social Development Specialist Ambrish Shahi Social Protection Specialist Illika Sahu ET Consultant/Disaster Risk Management Specialist Anil S.V. Das Consultant/Water Resources Management Specialist Vaideeswaran Sankaran Consultant/Environmental Specialist Indranil Bose Consultant/Transport Specialist Karthik Laxman Consultant/Livelihoods Specialist Paramveer Singh Consultant/Agriculture Specialist Tanvir Malik Consultant/Economist Wei Yan Young Professional/Transportation Specialist Ella Jisun Kim Young Professional/Disaster Risk Management Specialist Supervision/ICR Elif Ayhan, Deepak Singh, Balakrishna Menon Task Team Leaders Parameswaran Abhas Kumar Jha, Catalina Marulanda, Michael Haney, Practice Managers Kathryn Hollifield, Shomik Raj Mehndiratta Sumila Gulyani Program Leader Heenaben Yatin Doshi Senior Procurement Specialist Supriti Dua, Vijayasekar Kalavakonda Senior Financial Management Specialists Arnab Bandyopadhyay Lead Transport Specialist Fabian Seiderer Lead Public Sector Specialist Nagaraja Rao Harshadeep Lead Environmental Specialist Mika-Petteri Torhonen Lead Land Administration Specialist Dilip K. Ratha Lead Economist Aurelien Kruse, Pawan G. Patil, Sebastian S. James, Dhruv Senior Economists Sharma Shrayana Bhattacharya Senior Social Protection Economist Valens Mwumvaneza Senior Agriculture Economist Halla Maher Qaddumi Senior Water Economist Heather Sophia Fernandes Senior Program Assistant Vidya Mahesh Program Assistant Page 42 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) Ambrish Shahi Social Protection Specialist Anup Karanth Senior Disaster Risk Management Specialist Naho Shibuya, Masatsugu Takamatsu Disaster Risk Management Specialists Uri Raich Senior Urban Specialist Harsh Goyal Urban Development Specialist Mehul Jain Climate Change Specialist Srinivasa Rao Podipireddy, Smita Misra Senior Water Supply and Sanitation Specialists Anju Gaur, Chabungbam Rajagopal Singh Senior Water Resources Management Specialists Vinayak Narayan Ghatate Senior Rural Development Specialist Balakrishnan Madhavan Kutty Rural Development Specialist Mathews K. Mullackal Water Supply and Sanitation Specialist Pedro Arizti Senior Public Sector Specialist Illika Sahu ICR Author/ET Consultant/Disaster Risk Management Specialist Vaideeswaran Sankaran Consultant/Environmental Specialist Anil S.V. Das Consultant/Water Resources Management Specialist Indranil Bose, Sony Thomas Consultants/Transport Specialists Paramveer Singh, Shashank Jayakumar Consultants/Agriculture Specialists Tanvir Malik Consultant/Economist Vikrant Panwar Consultant/Disaster Risk Financing Specialist Yoko Okura ICR Author/Young Professional/Disaster Risk Management and Climate Specialist . B. STAFF TIME AND COST Staff Time and Cost Stage of Project Cycle No. of staff weeks US$ (including travel and consultant costs) Preparation Page 43 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) FY19 86.227 732,480.57 FY20 1.200 9,244.14 Total 87.43 741,724.71 Supervision/ICR FY20 85.574 623,774.13 Total 85.57 623,774.13 . Page 44 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) ANNEX 3. BORROWER, CO-FINANCIERS, AND OTHER DEVELOPMENT PARTNERS’/STAKEHOLDERS’ COMMENTS Verbatim comments received from the Government of Kerala The Government of Kerala is pleased to acknowledge and study the Implementation Completion and Results Report (ICR) for the 1st Resilient Kerala Program Development Policy Operation (DPO1). We appreciate the World Bank’s detailed assessment of the relevance of the Prior Actions and the efficacy of achievement of objectives, and acknowledge the ‘Satisfactory’ outcome rating awarded. The support extended by the World Bank and KfW through DPO1 has been instrumental in facilitating multi-sectoral and multi-dimensional institutional and policy reforms towards strengthening the disaster and climate resilience of the State of Kerala which is highly vulnerable to natural disasters and changing climatic dynamics. DPO1 has significantly enhanced the State’s institutional and financial capacities for effective and timely responses to disaster-related adversities and climatic shocks. It has also enabled the mainstreaming of disaster and climate resilience across the key sectors of land, water resources, fisheries, water supply and sanitation, roads and bridges, livelihoods, agriculture and allied domains. The endline targets have been achieved and/or exceeded for 7 out of the 8 assessed result areas of the DPO1. We have fallen short of the full/complete achievement of the Results Indicator on ‘ Improved river basin planning and water infrastructure operations management for climate resilience at the State level ’ despite our active efforts on constitution of a State-level Committee for drafting the River Basin Conservation and Management Authority (RBCMA) Act and securing stakeholder consensus on the provisions of the Act. However, we reiterate our commitment towards notification of the RBCMA Act at the earliest. We shall further build on the policy and institutional reforms established as part of DPO1 and translate these reforms into implementation of on-ground actions during the ongoing Resilient Kerala Program for Results (PforR) operations. The lessons learnt and experiences gained from the implementation of DPO1 are valuable to us and shall guide our planning and evidence-based decision making. We would like to once again thank the World Bank and the other development partners for coming forward to support the State at a critical time when the State was hit by the most devastating and catastrophic floods and landslides since 1924. We remain committed to rebuilding the State while ensuring sustainability, equity, inclusiveness and effectiveness. We present below, in brief, the evolution of the Rebuild Kerala Development Program (RKDP) and the various interventions being facilitated by the Rebuild Kerala Initiative (RKI) for mainstreaming disaster resilience and climate resilience in the State. The Floods of 2018 and the Genesis of the Rebuild Kerala Initiative (RKI) 1. During June – August 2018, Kerala went through the worst ever floods in history since 1924. One sixth (about 5.4 million people) of the State’s population were affected. The floods and the accompanying landslides were catastrophic in terms of loss of lives, livelihoods, property and infrastructure. The floods highlighted a number of structural constraints that left Kerala unprepared for major natural disasters or climate change shocks. These include (i) inadequate policies and institutional frameworks to manage and monitor critical natural resources such as water and land, (ii) absence of risk-informed spatial and sectoral planning policies and frameworks that led to extensive urban sprawl, unmanaged construction in hazard prone areas and exclusion of disaster risk preparedness in key socioeconomic sectors, (iii) gaps in basic Page 45 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) infrastructure in urban areas along with aging and poorly maintained infrastructure, (iv) weak capacity of institutions to anticipate and respond to extreme events, (v) poor availability and sharing of reliable data for disaster risk planning and management due to inadequate hydro-met system, and (vi) limited fiscal resources as well as absence of ex ante financing modalities for risk pooling and sharing. 2. Following the disaster, the Government of Kerala felt that there was a need to go beyond traditional approaches to recovery and reconstruction to not only recover fully from the current disaster but also to prepare better for future disasters . The Rebuild Kerala Initiative (RKI) was thus born out of the VISION that floods should be taken as “a challenge and an opportunity to rebuild the State to ensure better standards of living to all sections of the society”. The RKI was established to drive the State towards resilience and risk-informed disaster preparedness. It is the dedicated State-level institutional modality for formulating and coordinating the implementation of a resilient Kerala, and is mandated to develop, coordinate, facilitate and monitor the Rebuild Kerala Development Programme (RKDP) through a participatory and inclusive process. The Rebuild Kerala Development Program 3. The Rebuild Kerala Development Program (RKDP) outlines a roadmap for realizing a Nava Keralam that is more resilient, green, inclusive and vibrant. The RKDP offers a paradigm shift in the approach to towards post-disaster recovery, rebuilding and resilience. It also offers the design blueprint for a new development thinking for Kerala, one that is embedded in the principles of sustainability, equity, inclusiveness and effectiveness. The RKDP encompasses key sectors of Kerala’s economy – (i) Agriculture, (ii) Animal husbandry, (iii) Fisheries, (iv) Forestry, (v) Land, (vi) Livelihoods, (vii) Roads and bridges, (viii) Transportation, (ix) Urban services and infrastructure, (x) Water supply and sanitation, and (xi) Water resources management. Additionally, it also addresses crosscutting priorities – (i) Disaster risk management and resilience, (ii) Environment and climate change, (iii) Strengthening institutional efficiency and resilience, and (iv) Open data. With the above sectors and cross-cutting priorities, the RKDP covers policies, institutions and investments towards building the foundation for the Nava Keralam. Page 46 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) The First Development Policy Operation 4. The first Development Policy Operation (DPO1) supporting the State Partnership with World Bank was approved in June 2019, with the Project Development Objective (PDO) of enhancing the State of Kerala’s resilience against the impacts of natural disasters and climate change. Development assistance of US$ 250 million was fully disbursed in August 2019. In November 2019, agreements were executed with KfW for financing of EUR 170 million for climate-resilient reconstruction of roads. KfW parallel financing of EUR 100 million to DPO1 was fully disbursed in March 2021 5. DPO1 has been instrumental in accelerating the Government of Kerala’s drive towards establishing a resilient, self-sufficient, and inclusive ‘Nava Keralam’. Resilient recovery activities are being implemented in line with the priorities outlined in the RKDP, with a special focus on women, children, marginalized communities and vulnerable groups. Public and private financing was mobilized for enhancing the State’s financial capacities for resilient recovery. A State-wide emergency management exercise was undertaken in alignment to the updated State Disaster Risk Management (DRM) Plan, which covers disaster and climate resilience and improved outreach. Sustainable, climate-resilient and disaster- resilient agriculture is being promoted through the establishment of agroecological zones and enhancement of the outreach and uptake of agricultural risk insurance. Adoption of performance-based road design and maintenance programs and enhanced fund allocation for core roads shall enhance the physical and institutional resilience of the core road network. Risk-informed master plans have been prepared and notified by two urban local bodies. The achievement of results outlined against 8 Prior Actions of DPO1 have been examined in detail in the World Bank’s Implementation Completion and Results Report (ICR). 6. Prior Action 4 on GoK’s establishment of a cross-sectoral State-level committee to draft a River Basin Conservation and Management Authority Act establishing a River Basin Conservation and Management Authority could not be achieved within the stipulated timeframe . As on 5th May 2022, the Government of Kerala has constituted the State Level Committee (SLC) for reviewing the River Basin Conservation and Management Authority (RBCMA) Act and submission of the draft Act to the Government. A Drafting Committee has been constituted for drafting the RBCMA Act. Administrative Sanction (AS) was issued towards the initial operation/consulting expenses of the RBCMA. The Government is actively pursuing actions to notify the Act, after incorporation of the insights and inputs from all concerned stakeholder Departments. The Rebuild Kerala Initiative’s interventions for disaster resilience across sectors 7. Catalyzed by the DPO1, the RKI has facilitated State-wide reforms with far-reaching impact through several multi-sectoral and multi-departmental projects with the objective of enhancing climate- and disaster resilience of the State. These projects span across sectors and are anchored by more than 14 Departments. As on 30th April 2021, the RKI has accorded Administrative Sanction (AS) for resilience projects worth INR 7944.55 crores. Page 47 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) 8. In the roads and bridges sector, RKI has facilitated the reconstruction and rehabilitation of 1288 km of flood-damaged roads and bridges. This includes 29 flood-damaged State Highways and Major District Roads (MDR), 163 rural roads, and 6 bridges. The reconstruction involves approaches that build resilience to natural calamities like floods through elevating flood-prone road sections, drainage improvement, slope stabilization, landslide protection, and bio-engineering techniques. Incorporating cost-effective disaster-resilient principles will improve the long-term sustainability of the reconstructed critical public infrastructure. A major example is the upgradation of the Alappuzha-Changanassery Road into a semi-elevated highway through the establishment of embankments and adoption ground improvement techniques such as geo-composite encased stone columns and prefabricated vertical drains to counter serious inundation issues at the time of heavy monsoons and floods. Reconstruction works of 29 flood-damaged roads are being implemented Approaches adopted to build resilience in roads & with scientific and cost-effective approaches bridges backed by sound structural assessments, Flood-prone geological and hydrological surveys, a range of Road sections 0 km improved technical measures, and environmental Drainage and social safeguards. 163 roads managed by the improvement LSGD are being upgraded through enhancement of KPMG Slope geometrics while retaining the horizontal stabilization Environmental & Social alignment, through advanced road construction safeguard and efficient techniques such as Mixed Seal Surface (MSS), engineering Bio- contract Pavement Quality Concrete (PQC) with White techniques Landslide management Topping, use of Geotextile and Vegetative Turfing protection for embankment protection. Effective asset Cost-effective & Disaster management is ensured through provision of 5 resilient techniques years maintenance period within the contracts for 1288 km all road projects. 9. Livelihood opportunities have been created for crisis-affected, flood-impacted and vulnerable groups as part of RKI-supported interventions. Disaster relief measures for 25,000 flood-affected Neighbourhood Groups (Ayalkootams) were facilitated through disbursing funds through the Crisis Management Fund & Vulnerability Reduction Fund. Skill development and training for family members of women SHGs are being facilitated through (i) Yuvakeralam project targeted towards skill training and placement for wage employment, (ii) ‘Skilling to Connect to Work’ program targeted towards improving soft skills, and (iii) Acquiring Resilience and Identity through Sustainable Employment (ARISE) program for providing entrepreneurship training and subsequent formation of Multi-Task Teams of entrepreneurs with skillsets across multiple job-roles. Livelihood opportunities were especially for the tribal communities at Athirappally and Attapady is being facilitated through sustainable farming, value addition and market linkages in agriculture. 77000 animal husbandry farmers benefitted from the livelihood support package supported by RKI while 70 fishermen folk from the scheduled tribe communities were supported to undertake fish production in cages. Community Micro Irrigation (CMI) projects have also helped to supplement agricultural livelihoods in select rain-shadow areas in the State Page 48 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) 10. Agriculture projects facilitated by the RKI involve AEZ approaches, infrastructure development, soil and water conservation, integrated farming systems, integrated pest management, agri-business and value addition, institutional resilience building, food security, enabling livelihoods, technology enablement, and knowledge management. Infrastructure development works undertaken in flood-hit areas of Chengannur Samrudhi, Pampoorichal Padasekharam in Ramamangalam Panchayath in Ernakulam, and Thrissur Ponnani Kole Lands have significantly enhanced the capacity to respond to disasters and extreme climate impact, as evidenced by reduced losses and damages in the floods and landslides of 2020 floods compared to the 2018 floods. Eco-restoration of flood/landslide affected areas through soil and water conservation measures is being undertaken to rejuvenate around 22134 hectare of land worst affected by flooding, soil erosion and siltation. As part of sustainable development of the Kuttanad rice ecosystem, construction of Kerala Centre for Pest Management (KCPM) is in progress and extension activities are being undertaken. Development of Kaippad Organic Tided wetlands of Northern Kerala is being Major focus areas of facilitated through mechanized farming, RKI-funded rice germplasm conservation and agriculture biodiversity-based farming. Enhancing projects livelihood security, especially for the tribal communities at Athirappally and Attapady, is being facilitated through sustainable farming, value addition, and market linkages. Page 49 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) 11. In the Integrated Water Resources Management (IWRM), water supply, and sanitation sectors, RKI-supported projects have been designed to facilitate effective water resource and reservoir management, integration of reservoir operations, adequate infrastructure for septage management, strengthened information and analytic systems, and delivery of reliable, efficient and sustainable piped water. Repair and maintenance of 55 dams/ regulators/ canals/ irrigation structures which were severely damaged, silted and/or destroyed in the floods have been completed, and reconstruction works of 40 are in progress. Community Micro Irrigation (CMI) projects are being implemented for enabling micro-irrigation technology through surface water to a large community of 356 farmers spread across 972 acres of agricultural land in major rain shadow areas, in the districts of Palakkad and Wayanad, resulting in enhanced water-use efficiency, higher crop yields, and higher incomes. As a first step towards the implementation of Room for River projects for flood protection, the Indian Institute of Technology in Madras has been engaged to conduct a hydro-dynamic study; based on the interim findings, a DPR has been prepared for the construction of groynes at the mouth of the Thottappally pozhy to reduce the severity of floods. Completion of water supply schemes, energy optimization and replacement of inefficient pumping systems, DPR preparation and topographical surveys for sewage and septage management in for ULBs and Municipal Corporations, and establishment of sewage and septage treatment plants are being undertaken to expand coverage and improve resilience of water supply infrastructure, enhance quality of service delivery and devolution of service delivery to local level, and strengthen the resilience of the networks and treatment plans through improved standards. A Kerala Water Resources Information System (KWRIS) has been developed as a digital platform with unified database and optimum real-time decision support modules (Water Budgeting and Auditing, Water Conservation Management, Flood Management, etc.). The web-enabled platform enables integration of all data related to water and its allied sectors, and extracting required information of different parameters of weather, water availability (surface and ground Water), and water demand from the integrated data. 12. To address issues of poor infrastructure for solid waste management and disposal, especially in the context of clogging of large amounts of debris in water bodies during heavy monsoons and floods , the RKI is supporting projects which enhance capacities of local governments to fully manage the non- biodegradable solid waste using the most appropriate technologies and techniques . Specific interventions are being implemented towards (i) setting up of Material Collection Facility (MCF) in all government offices for collection and temporary storage before sending to non-biodegradable wastes processing unit; (ii) setting up of district level sorting & segregation facilities; (iii) setting up glass waste recycling facility; and (iv) construction of integrated plastic waste management facility. Page 50 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) 13. In the environment and forestry sector, RKI is emphasizing on conservation of ecologically sensitive zones, habitat improvement, consolidation of forest cover and biodiversity rejuvenation. Relocation of 78 families has been completed as part of relocation of Key Focus Areas in private settlements from forests to address the larger issue Environment & Forestry projects of arresting forest fragmentation and consolidating the  Conservation of ecologically sensitive zones forest cover. Relocation of close to 600 families are in  Habitat Improvement progress. Other interventions for acquisition of private  Consolidation of forest cover estates from within forest areas, consolidation of  Biodiversity rejuvenation Mangroves, establishing a database of tradeable/commercially potential bio-resources, riverine biodiversity rejuvenation, and conservation of agrobiodiversity are in progress. Moreover, scoping studies on developing people-inclusive livelihood- based governance strategy for the long-term conservation of mangrove forests of Kerala and, also assessing the hydrological services provisioned by the forest ecosystems of Kerala are being conducted. 14. In the animal husbandry, dairy, and fisheries sector, RKI’s focus has been on developing veterinary services, improvements in livestock and poultry development, strengthening R&D and fostering innovative technologies, increasing fish production, river training works, livelihood generation for the fishermen community and animal husbandry farmers, and promotion of integrated farming systems. A livelihood support package specifically for animal husbandry has created viable livelihood opportunities for 77000 farmers through its project components of cattle rearing, heifer rearing, assistance for establishing hygienic cattle shed, cattle feed subsidy programme, mechanization support programme for commercial dairy farms, fodder plot development, goat rearing, backyard poultry rearing, pig rearing, and duck rearing. Two Mobile Tele-Veterinary Units (MTVUs) are providing veterinary services to farmers at their doorstep; the operationalization of twelve more MTVUs have been initiated to ensure services across the State. A pilot project for implementation of GIS mapping and RFID tagging has been launched enable geo-mapping of farmers and their cattle. Fodder hubs are being established in select flood- prone areas in Malabar Region. Ninety fishermen/scheduled tribes families residing around the Banasurasagar reservoir area in Wayanad were supported to implement cage farming technology for fish production in one of the most successful interventions supported by the RKI, leading to income generation and social empowerment of tribal communities. A project for river training works at Puthiyangadi and Shiriya locations has been initiated to provide perennial opening of estuary to avoid flooding up on the upstream side of river/ creek; the major project components include construction of breakwaters, riverbank protection works, and construction of access road to breakwaters to benefit more than 1400 active fishermen and close to 30000 people residing in the adjoining fishermen villages. Page 51 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) 15. The first phase of the digital re-survey of 1550 villages in Kerala is being facilitated by RKI, towards integration of the land records management of the three Departments which hold data related to land records. With the use of latest survey technology [Continuously Operating Reference Station (CORS), Real Time Kinematic (RTK) rover, and Robotic - Electronic Total Station (R – ETS)], integration of land records of the Revenue Department, Department of Survey and Land Records, and Department of Registration shall be facilitated to enable access to authentic and accurate land records for all landholders in the State. 16. A MAPATHON project is being implemented for participative development of the detailed and localized map of Kerala in Open Street Map (OSM) Platform. The project mapping of rivers, streams, roads, hospitals, quarries, schools, ponds, offices, local government institutions, and other local assets and resources on OSM platform to enable easy public access and map reliable data for efficient planning and implementation of disaster resilience programmes in Kerala The Second Development Policy Operation 17. With due acknowledgement of the GoK’s commitment towards building disaster resilience and the satisfactory progress towards meeting the development objectives of DPO1, the World Bank expressed its willingness to support DPO2 as the 2nd phase of its partnership with the Kerala State. Although majority of the policy actions outlined under DPO2 were achieved by the GoK by March 2020, the outbreak of COVID-19 and a change in GoI’s strategy in using World Bank financing led to the reconfiguration of the proposed DPO2 to a Program for Results (PforR) operation. The Resilient Kerala Program for Results 18. Building upon the institutional and policy reforms achieved as part of DPO1, the GoK is currently implementing the Resilient Kerala Program for Results (PforR) which links the policy and institutional shifts with enhanced capacities, real expenditures, and verifiable results on the ground . The scope and boundaries of the ongoing PforR are mentioned below:- Project Development To enhance Kerala’s resilience against the impacts of climate change, natural Objective disasters and disease outbreaks Sectors Agriculture, Disaster Risk Financing & Insurance (DRFI), Disaster Risk Management (DRM), Fiscal & Governance, Health, Road, Urban, Water Resource Management Duration 5 years (FY21-22 to FY25-26) Financing (in millions) US$125 (IBRD), US$125 (AIIB), Euro 100 {~US$120 equivalent} (AFD), and US$160.02 (GoK) Geographical Four districts at Pamba Basin (Kottayam, Idukki, Alappuzha and Coverage Pathanamthitta) The RKI is currently facilitating actions related to activities on (i) Sustainable fiscal and debt management, (ii) Comprehensive disaster risk finance and social protection system, (iii) Risk-informed urban master plans for cities and towns, (iv) Risk-informed local Disaster Risk Management Plans, (v) Resilient public health systems, (vi) Integrated and sustainable water resources management, (vii) Sustainable and resilient agriculture systems, and (viii) Climate resilient road infrastructure. Page 52 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) Verbatim comments received from KfW Development Bank (Kreditanstalt für Wiederaufbau) KfW appreciates the excellent compilation and preparation of the ICR. We share the transparent assessment of the program’s success as well as identification of shortcomings and room for improvements reflected in the different chapters in the ICR. The quality and professional preparation of the ICR reflects the outstanding initiative and mirrors the excellent cooperation that could be established between the World Bank, the Government of Kerala, KfW and other development partners. We strongly agree that the Government of Kerala needs to be congratulated for facilitating such a bold initiative and paving the way for a long-standing transformative agenda. To precise the different statements in the ICR about KfW’s involvement, we would like to clarify that the support of KfW to the Government of India and the Government of Kerala in particular, was provided on behalf of the German Federal Government as part of the Indo-German development cooperation. The broader support to the Government of Kerala composes of a 170 Mio. EUR loan for the climate-resilient reconstruction of road infrastructure in addition to a 3 Mio. EUR grant for accompanying measures in the road sector (capacity building), as well as a 100 Mio. EUR loan parallel-financing the first phase of the World Bank First Resilient Program Development Policy Operation in addition to a 2 Mio. EUR grant for accompanying measures related to capacity building activities in the urban planning, water supply and disaster-risk financing sectors. The later mentioned accompanying measures grant is still under implementation and it is worthwhile to note that the activities financed can play a transformative role in the DPO/PforR-Nexus. Throughout 2019 and 2020, additional 400.000 EUR (provided by the German Federal Government) were utilized to mobilize international and national experts in the sectors of urban planning, water supply and disaster risk-financing to support the Government of Kerala for the preparation and implementation of the envisaged reform agenda. For the short- to medium-term time horizon, we agree that the new PforR established between the Government of Kerala, the World Bank, AIIB and AFD is pivotal for continuing the transformative agenda. The implementation period can be used to institutionalize and pilot many of the initiated reforms and ensure that climate-resilience is mainstreamed across different sectors sustainably. The PforR also offers the opportunity to continue the spirit that has been developed during the DPO phase, e.g. inter and intra departmental coordination, change management within the relevant departments, as well as the careful balancing of the priorities of the Government of Kerala vis-à-vis other stakeholders such as the private sector, Kerala citizens and civil society. Page 53 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) ANNEX 4. SUPPORTING DOCUMENTS Erman, Alvina, Sophie Anne De Vries Robbe, Stephan Fabian Thies, Kayenat Kabir, and Mirai Maruo. 2021. Gender Dimensions of Disaster Risk and Resilience: Existing Evidence. Washington, DC: World Bank. https://openknowledge.worldbank.org/handle/10986/35202. GoK. 2020. Agriculture (PPM Cell) Department. Designating the Director of Agriculture to Plan, Develop and Budget the Agriculture Schemes Based on Agro Ecological Units (AEUs) – Sanctioned – Orders issued. Government Order (Rt) No.393/2020/AGRI dated 22/04/2020. GoK. 2022. Correspondence from Chief Engineer Projects, Kerala State Transport Project to The Secretary, Kerala Public Works Department. Documentary evidence of expenditure made by PWD. No. KSTP/530/2021/AE2. GoK. Joint initiative of Revenue, Survey and Registration Department. e-Maps Effective Mapping Application Package for Surveying. Kerala Land Records Modernization Mission. https://emaps.kerala.gov.in GoK, Kerala State Disaster Management Authority. Guidelines. https://sdma.kerala.gov.in/guidelines/ GoK. 2022. Kerala Water Authority. O&M Cost Recovery Calculation for FY 2018–19, 2017–18, and 2016– 17 – Clarification. Correspondence No. 0077/2020/AMIII/FIN/KWA. 04/01/2022. GoK. 2021. Kerala Water Authority. O&M cost recovery-Details-Submitting. Correspondence No. 0077/2020/AM-III/FIN/KWA. 27/10/2021. GoK. 2022. Local Self-Government Department. Budget for Mananthavady multi-year municipal planning and budgeting 2021–22. 19/02/2021. GoK. 2021. Local Self-Government Department. Chengannur Town Publication of Draft Master Plan as per section 36(3) of Kerala Town and Country Planning Act 2016 – Sanction accorded – Orders issued. Government Order (Ms) No.116/2021/LSGD dated 25/06/2021. GoK. 2021. Local Self-Government (EWB) Department. Construction of Septage Management facilities in Local Self-Government Institutions under Rebuild Kerala Initiative – IMPACT Kerala Ltd. as implementing Agency – Approved – Orders issued – reg. Government Order (Rt.) No. 269/2021/LSGD. 01/02/2021. GoK. 2021. Local Self-Government Department. Guidelines for preparing multi-year plans. Government Order (K) No. 4/2021/LSGD dated 11/1/2021. GoK. 2021. Local Self-Government Department. Issuance including the provision of preparing multi-year plans in the 13th five-year plan of the State. Government Order (K) No. 76/2020/LSGD dated 14/05/2020. GoK. 2022. Local Self-Government Department. Kollam budget: In-principle Sanction and project report. Government Order (Rt) No. 87/2022/LSGD dated 12/01/2022. Page 54 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) GoK. 2021. Local-Self Government Department. Mananthavady Town – Publication of Draft Master Plan as per section 36(3) of Kerala Town and Country Planning Act 2016 – Sanction accorded – Orders issued. Government Order (Ms) No.115/2021/LSGD dated 25/06/2021. GoK. 2019. Minutes of the Meeting of the High Level Empowered Committee (HLEC) of RKI (various). GoK. 2022. Multi Year Project Details – Kozhikode Municipal Corporation. 23/02/2022. GoK. 2021. Planning and Economic Affairs (RKI) Department. Administrative Sanction accorded for the proposal from KWA - Topographical Survey in 28 Selected ULBs and DER Preparation including Topographical Survey for 4 Municipal Corporations, viz., Kollam, Kochi, Kozhikode and Kannur, for Implementing Sewerage System at an estimated amount of INR 6 crore- Orders issued. Government Order (Rt) No. 352/2021/P&EA. 16/08/2021. GoK. 2021. Planning and Economic Affairs (RKI) Department. Project Proposal of the Revenue Department, viz., ‘Digital Resurvey of 1550 villages in the State’ - Administrative Sanction accorded to Phase-1 for an amount of Rs. 339.438 crore - Orders issued. Government Order (Rt) No. 364/2021/P&EA; including Annexure II: Action Plan Digital Re-survey of 1550 Villages in 3 Years 8 Months. GoK. 2020. Planning and Economic Affairs (RKI) Department. Project proposal submitted by Kerala Water Authority (KWA) under the Water Resources Department- Preparation of Detailed Engineering Report/ Detailed Project Report for rehabilitation of existing sewerage system and providing sewerage/septage management system for uncovered areas of Thiruvananthapuram Corporation- Administrative Sanction accorded - Orders issued. Government Order (Rt.) No.371/2020/P&EA. 01/10/2020. GoK. 2020. Public Works (H) Department Notification on Prioritization of Road Network. Government Order (P) No.1/2020/PWD dated 07/04/2020. Government of Kerala, Asian Development Bank, and World Bank. 2018. Kerala Floods and Landslides 2018, Joint Rapid Damage and Needs Assessment Report. GoK, Rebuild Kerala Initiative. 2019. Rebuild Kerala Development Programme. May 2019. https://rebuild.kerala.gov.in/reports/RKDP_Master%2021May2019.pdf GoI. 2021. Atal Mission for Rejuvenation and Urban Transformation (AMRUT) 2021. Status of Sewage and Septage Plants in Kerala under AMRUT as on 08/11/2021. GoI, Ministry of Home Affairs, Office of the Registrar General and Census Commissioner. 2011. 2011 Census Data. https://censusindia.gov.in/census.website/ KWA. 2022. Report provided to the World Bank, IT Initiatives for Improvement of Service Delivery Parameters. KWA. 2022. Report provided to the World Bank, Non-Revenue Water Report: Actions and Methodology. KWA. 2022. Report provided to the World Bank, Sewage and Septage Management Plan of KWA. Page 55 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) Neumayer, Eric, and Thomas Plümper. 2007. “The Gendered Nature of Natural Disasters: The Impact of Catastrophic Events on the Gender Gap in Life Expectancy, 1981–2002.” Annals of the Association of American Geographers 97 (3): 551–566. Output and Performance based Road Contract for the Maintenance of Roads under Package 02 in Ponkunnam-Thodupuzha, Vattaveda - Top Station Munnar from Top Station to Munnar in Kottayam- Idukki Districts of Kerala, Contract No. KSTP/OPBRC-02. Agreement No. 370/KSTP/PMT/PWD/2021 dated 02/11/2021. Output and Performance based Road Contract for the Maintenance of Roads under Package 03 in Kollam- Ayoor, Kayamkulam-Mavelikkara-Thiruvalla, K P Road from Kayamkulam to Adoor, Thrikkunnipuzha- Thattarambalam, Pandalam-Kaipattor in Kollam, Alappuzha, Pathanamthitta Districts of Kerala, Contract No. KSTP/OPBRC-03. Agreement No.366/KSTP/PMT/PWD/2021 dated 12/08/2021. UNDP (United Nations Development Programme). 2018. Kerala Post Disaster Needs Assessment. https://www.undp.org/publications/post-disaster-needs-assessment-kerala. Verwey, Adri, Yann Kerblat, and Brendan Chia. 2017. Flood Risk Management at River Basin Scale: The Need to Adopt a Proactive Approach. Washington, DC: World Bank. https://openknowledge.worldbank.org/handle/10986/27472. World Bank. 2019–2021. Aide Memoires and Management Letters (various): The First Resilient Kerala Program Development Policy Operation - P169907. World Bank. 2019. Appraisal Stage Program Information Document (PID). Report No. PIDA26752. World Bank. 2019. Concept Stage Program Information Document (PID). Report No. PIDC26205. World Bank. 2019. Financing Agreement: Financing Agreement for Credits 6463-IN and 6464-IN (Closing Package). World Bank. 2019–2021. Implementation and Implementation Status and Results Report (various): The First Resilient Kerala Program Development Policy Operation - P169907. World Bank. 2019. Project Document: First Resilient Kerala Program Development Policy Operation. Report No. PGD77. World Bank. 2021. Project Document: Resilient Kerala Program Program-for-Results Project. Report No. PAD4250. World Bank Group. 2018. India Country Partnership Framework (CPF) for FY18–FY22 . Report No. 126667- IN. Washington, DC: World Bank Group. World Bank Group. 2018. India Systematic Country Diagnostic (SCD): Realizing the Promise of Prosperity. Report No. 126284-IN. Washington, DC: World Bank Group. World Bank, Independent Evaluation Group. 2010. World Bank Engagement at the State Level. Washington, DC: World Bank. https://ieg.worldbankgroup.org/sites/default/files/Data/reports/sle_full_ eval_0.pdf Page 56 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) ANNEX 5. DPO1 PRIOR ACTIONS AND INDICATIVE TRIGGERS FOR DPO2 1. The below table aims to highlight the intended policy pathway of the DPO series. Due to DPO2 being dropped prior to its Decision Meeting there is an absence of a final and publicly available PD for DPO2, which would detail the medium-term policy tracks and ambition of the series. Some of DPO1 Prior Actions are preliminary in nature, intending to respond to the emergency situation and lay the foundation for the more substantiative policy measures under the following DPO2. Therefore, in the absence of this detailed information on DPO2, the indicative triggers for DPO2 (as noted in DPO1 PD) help explain the intended policy pathway and impact of the DPO series. Prior Actions under DPO1 Indicative Triggers for DPO2 Pillar 1: Enhancing Kerala’s Institutional and Financial Capacity for Managing Disaster Risks and Climate Change Objectives: (i) to enhance technical and institutional capacity; and (ii) to establish innovative sources of financing for disaster risk reduction and climate resilience Prior Action 1: The GoK has adopted the Rebuild Kerala Development Program for Trigger 1: The GoK has issued guidelines for project selection, enhancing disaster and climate resilience through policy, regulatory and institutional preparation and budgeting, including criteria for project readiness, actions with inclusive and participatory approaches. feasibility and resilience, for the RKDP. Coordination: RKI CEO Prior Action 2: The GoK has adopted the new flood Cess, with effect as of June 1, Trigger 2: The GoK has issued legal instructions for mobilizing private 2019 for financing resilient recovery efforts. institutional and retail finance for financing resilient recovery efforts. Coordination: Finance Department Prior Action 3: The GoK has adopted new protocols for enhancing emergency Trigger 3: The GoK has updated and published the State Disaster preparedness and response capacity of various departments. Management Plan, incorporating disaster risk reduction and climate Coordination: KSDMA resilience principles and policies and including emergency management and outreach to vulnerable communities. Pillar 2: Mainstreaming Disaster and Climate Resilience into Critical Infrastructure and Services Objective: to mainstream disaster risk reduction and climate resilience into critical infrastructure development and service delivery Prior Action 4: The GoK has established a cross-sectoral State-level committee to Trigger 4: Draft RBCMA Act has been submitted to the State Assembly draft a River Basin Conservation and Management Authority Act establishing a River for approval. Basin Conservation and Management Authority. Coordination: WRD Prior Action 5: The GoK has notified the establishment of five agroecological zones Trigger 5: The GoK has instituted/amended policies, guidelines and and the reorganization of the Agriculture Department along agroecological zones. programs for expansion of agriculture risk insurance uptake. Coordination: DoA Prior Action 6: The GoK has notified the criteria for the identification/determination Trigger 6: The GoK has adopted performance-based management of the core road network and mandated the review of PWD road policies, contract model for managing the core road network, incorporating construction codes and manuals to ensure the resilient design, construction and design and performance standards and disaster-related emergency maintenance of core road network. response module. Page 57 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) Prior Actions under DPO1 Indicative Triggers for DPO2 Coordination: PWD Trigger 7: The GoK has undertaken institutional streamlining in the roads sector to address institutional and resource fragmentation and to strengthen core sector institutions. No specific Prior Action 41 Trigger 8: The GoK has reorganized institutional arrangements to create a single land record and integrated map for Kerala unifying the Coordination: Department of Revenue, Survey Land Records Department and current Deeds Registry, Record of Rights and Field Book (map) records Department of Registration and services. Prior Action 7: The GoK has established a committee to revise the Town and Trigger 9: The GoK has amended TCP Act for risk-informed master Planning Country Act to make master plans risk-informed and to revise the annual planning. expenditure planning and budget guidelines for urban local bodies to undertake Trigger 10: The GoK has revised annual expenditure planning and multi-year municipal infrastructure investments. budget guidelines for urban local bodies to undertake multi-year Coordination: LSGD/State Planning Board municipal infrastructure investments. Prior Action 8: The GoK has established a cross-sectoral committee to prepare the Trigger 11: The GoK has adopted the policy and institutional program policy and institutional program for strengthening water supply and sanitation for strengthening water supply services including service delivery services and their resilience to disasters and impacts of climate change. models, O&M cost recovery, MIS and Grievance Redress Mechanism. Coordination: WRD, LSGD, KWA, Kerala Rural Water Supply and Sanitation Agency Trigger 12: The GoK has adopted a State Sanitation and Waste Management Strategy, incorporating cost-effective septage and waste management models. 2. Prior to truncation, during the DPO2 preparation, the GoK achieved eight of the nine planned Prior Actions under DPO2, further showcasing their strong commitment to the resilience agenda. Under Pillar 1, these comprise: Strengthening of the state’s fiscal sustainability through guidelines for building valuations to limit fee evasion and raise land fair value and designating of a nodal agency for mobilizing private retail finance for resilient recovery; Declaration of the COVID-19 pandemic as a State Specific Disaster and approving of the norms for relief assistance; and a Government Order providing policy directions to develop a comprehensive disaster risk financing framework to strengthen social safety nets, a single beneficiary data platform, and pilot parametric-based insurance for loss of livelihood/assets during disasters. Under Pillar 2, these met prior actions comprise: Submission of the draft RBCMA Act to the State Assembly; The realignment of fund allocations along AEZs and agroecological units (AEUs); Adoption of performance-based management contracts for CRNs and institutional streamlining in the roads sector through liquidation of certain nonessential road sector agencies; Amendments to the Town and Country Planning Act for risk-informed master planning and issuance of a Government Order revising annual planning guidelines to finance priority multiyear municipal infrastructure projects; and a mandate for the establishment of COVID-19 cells in all government departments to coordinate preparedness and response and issuance of respective guidelines for teams responsible for pandemic containment. 41Does not qualify for an assessment in this ICR as it does not have a corresponding action under DPO1. The Land Prior Action under DPO2 was intended to be the entry point to accelerate Result Indicator 7 reforms through providing funding and technical support focused on land reforms. Page 58 of 59 The World Bank The First Resilient Kerala Program Development Policy Operation (P169907) ANNEX 6. WORLD BANK AND STATE OF KERALA REFORM TRAJECTORY TOWARDS DISASTER AND CLIMATE RESILIENCE 1. Under the DPO, the state initiated institutional reforms to enhance resilience to natural disasters and climate change which it continues to carry out through the Resilient Kerala Program for Results (PforR) and proposed AF under the auspices of the SPF. The PforR builds on the reforms and actions of DPO1 to further develop and imbed resilience across key sectors. This includes demonstrating a model of multisectoral resilience by utilizing the major river basin of Pamba to translate state-level policy gains into institutional actions and tangible results at the local level. The AF (under preparation) aims to expand and deepen the efforts toward multisectoral resilience, through the inclusion of coastal zone management and expansion of the geographic focus of the engagement. Page 59 of 59