FOR OFFICIAL USE ONLY Report No: RES45415 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT RESTRUCTURING PAPER ON A PROPOSED PROGRAM RESTRUCTURING OF IN SWACHH BHARAT MISSION SUPPORT OPERATION APPROVED ON DECEMBER 15, 2015 TO INDIA Water Global Practice South Asia Region Regional Vice President: Hartwig Schafer Country Director: Junaid Kamal Ahmad Regional Director: John A. Roome Michael Haney Practice Manager: Task Team Leader(s): Raghava Neti, Xavier Chauvot De Beauchene Regional Vice President: Hartwig Schafer Country Director: Junaid Kamal Ahmad The World Bank IN Swachh Bharat Mission Support Operation (P153251) Regional Director: John A. Roome Practice Manager: Michael Haney Task Team Leader(s): Raghava Neti, Xavier Chauvot De Beauchene The World Bank IN Swachh Bharat Mission Support Operation (P153251) ABBREVIATIONS AND ACRONYMS DEA Department of Economic Affairs PDO Project Development Objective PforR Program for Results Financing SBM-G Swachh Bharat Mission – Gramin SBMSO Swachh Bharat Mission Support Operation The World Bank IN Swachh Bharat Mission Support Operation (P153251) DATA SHEET (IN Swachh Bharat Mission Support Operation - P153251) BASIC DATA Project ID Financing Instrument IPF Component P153251 Program-for-Results Financing Yes Original Environmental Assessment Category (IPF Current Environmental Assessment Category (IPF Component) Component) Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 15-Dec-2015 31-Jan-2021 Organizations Borrower Responsible Agency Ministry of Jal Shakti, Deparment of Drinking Water and Department of Economic Affairs Sanitation Program Development Objective(s) This Operation provides support to the Swachh Bharat Mission – Gramin (SBM-G) national program, the new rural sanitation flagshipprogram launched by the Prime Minister in September, 2014. The Program Development Objective of the Swachh Bharat Mission Support Operation ( SBMSO) is to: to reduce open defecation in rural areas, and strengthen MDWS capacity to manage the national SBM-G program. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Approval Effectiveness Closing Ln/Cr/TF Signing Date Commitment Disbursed Undisbursed Date Date Date IBRD-85590 15-Dec-2015 30-Mar-2016 27-Apr-2016 31-Jan-2021 1266.23 1266.21 .02 Policy Waiver(s) Does the Program require any waivers of Bank policies applicable to Program-for-Results operations? No Page 1 of 12 The World Bank IN Swachh Bharat Mission Support Operation (P153251) The World Bank IN Swachh Bharat Mission Support Operation (P153251) I. PROGRAM STATUS AND RATIONALE FOR RESTRUCTURING The Program's Progress towards Achievement of the PDO is currently rated Satisfactory. The Program has achieved both its PDO indicators. Following the cancellation of USD 233.77 million in July 2020 at the Government of India's request (savings accrued due to exchange rate fluctuations), the remaining net commitment of USD 1,266 million has been almost fully disbursed. The Program is scheduled to close on January 31, 2021. On January 26, 2021, the Department of Economic Affairs (DEA), Ministry of Finance, has requested five months extension to the Program closing date. The requested extension enables the states to spend the remaining INR 1913 Cr (USD 262 million equivalent) of incentive funds disbursed to them, which remained unspent to date. As per the Bank Policy on PforR, if by the end of the PforR Program, the PforR Financing amount disbursed exceeds the total amount of PforR Program expenditures, the Borrower refunds the difference to the Bank. The Program faces this situation currently due to the unspent balances remaining under the incentive funds. The proposed extension will help resolve the issue. DEA has also requested for cancellation of about USD 7 million of the Loan from the PforR component, which was already disbursed to the Government of India (GoI). This amount remained in excess with the Department of Drinking Water Supply and Sanitation (DDWS), Ministry of Jal Shakti (the implementing entity) due to exchange rate differences, compared to the actual utilization (in INR) by the DDWS. To cancel this amount, the Bank has to have sufficient undisbursed balance in the Loan account, which requires the GoI to first refund the amount to the Bank. Therefore, it is planned to proceed with extending the Loan Closing Date under this restructuring. Through a subsequent restructuring subsequent to GoI’s refund of the amount, partial cancellation will be affected, using the value date when the refund is received by the Bank. II. DESCRIPTION OF PROPOSED CHANGES The proposed change is to extend the Program closing date to June 30, 2021. The proposed extension of the closing date meets the requirements set out in Paragraph 20 of the Bank Policy on Program-for-Results Financing (OPS5.04-POL.107). There are no changes in the Results Framework and the Program Action Plan presented in Annex 1 and 2, respectively. These are automatically populated by the system and may be ignored for the present purposes. The World Bank IN Swachh Bharat Mission Support Operation (P153251) III. SUMMARY OF CHANGES Changed Not Changed Change in Loan Closing Date(s) ✔ Change in Implementing Agency ✔ Change in Program's Development Objectives ✔ Change in Program Scope ✔ Change in Results Framework ✔ Change in Cancellations Proposed ✔ Reallocation between and/or Change in DLI ✔ Change in IPF Component ✔ Change in Disbursements Arrangements ✔ Change in Disbursement Estimates ✔ Change in Systematic Operations Risk-Rating Tool ✔ (SORT) Change in Safeguard Policies Triggered ✔ Change in EA category (IPF Component) ✔ Change in Legal Covenants ✔ Change in Institutional Arrangements ✔ Change in Technical Method ✔ Change in Fiduciary ✔ Change in Environmental and Social Aspects ✔ Change in Implementation Schedule ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) The World Bank IN Swachh Bharat Mission Support Operation (P153251) OPS_DETAILEDCHANGES_COMPONENTS_TABLE OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/TF Status Closing Date Closing(s) Date Closing Date for Withdrawal Applications IBRD-85590 Effective 31-Jan-2021 30-Jun-2021 30-Oct-2021 . The World Bank IN Swachh Bharat Mission Support Operation (P153251) ANNEX 1: RESULTS FRAMEWORK . . Results framework Program Development Objectives(s) This Operation provides support to the Swachh Bharat Mission – Gramin (SBM-G) national program, the new rural sanitation flagshipprogram launched by the Prime Minister in September, 2014. The Program Development Objective of the Swachh Bharat Mission Support Operation ( SBMSO) is to: to reduce open defecation in rural areas, and strengthen MDWS capacity to manage the national SBM-G program. Program Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target Reduce open defecation in rural areas PDO Indicator 1: Reduction in the prevalence of open defecation 334,121,773.00 239,121,773.00 (Number) Strengthen MDWS capacity to manage SBM-G program PDO Indicator 2: National annual sanitation survey conducted No Yes and results published (Yes/No) PDO Table SPACE Page 6 of 12 The World Bank IN Swachh Bharat Mission Support Operation (P153251) Intermediate Results Indicators by Result Areas RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Result Area 1: Increased access to safe and functional sanitation facilities Intermediate Results Indicator 1: Increase in the rural population having access to safe and functional sanitation facilities 57.60 88.10 (beneficaries) (Percentage) Intermediate Results Indicator 2: Percent of female beneficiaries 47.80 47.80 (Percentage) Intermediate Result Indicatior 3: Increase in the percentage of poor and vulnerable (PAV) rural population having access to safte 66.10 88.10 and functional sanitation (Percentage) Result Area 2: Sustaining community - wide ODF status Intermediate Results Indicator 4: Sustaining ODF status in villages 89,790.00 137,790.00 (Number) Result Area 3: Increased population with solid and liquid waste management (SLWM) Intermediate Result Indicator 5: Rural population with SLWM 255,782.61 371,782.61 (Number (Thousand)) Intermediate Result Indicator 6: Number of villages with SLWM 227,754.00 311,754.00 (Number) Result Area 4: Strengthened capacity of MDWS in program management, advocacy, monitoring and evaluation (M&E) Intermediate Result Indicator 7: Program management unit No Yes strengthened and functional (Yes/No) Intermediate Result Indicator 8: Monitoring and Evaluation Unit No Yes strengthened (Yes/No) Intermediate Result Indicator 9: IMIS improved and functional Yes Yes (Yes/No) Page 7 of 12 The World Bank IN Swachh Bharat Mission Support Operation (P153251) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Intermediate Result Indictor 10: BCC campaign implemented at Yes Yes national level (Yes/No) Intermediate Result Indicator 11: Report on grievances received Yes Yes and addressed (Yes/No) Intermediate Result Indicator 12: Report on annual program No Yes performance (Yes/No) IO Table SPACE Disbursement Linked Indicators Matrix DLI IN00951349 ACTION DLI 1 DLI#1: Reduction in the prevalence of open defecation Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Number Intermediate Outcome Yes 730.12 0.00 (Thousand) Period Value Allocated Amount (USD) Formula Baseline 0.00 March 31, 2016 0.00 March 31, 2017 182.53 March 31, 2018 182.53 March 31, 2019 182.53 Page 8 of 12 The World Bank IN Swachh Bharat Mission Support Operation (P153251) March 31, 2020 95,000.00 182.53 DLI IN00951350 ACTION DLI 2 DLI#2: Sustaining ODF status in villages Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Number 464.63 0.00 Period Value Allocated Amount (USD) Formula Baseline 155,002,809.00 March 31, 2016 0.00 March 31, 2017 116.16 March 31, 2018 116.16 March 31, 2019 116.16 March 31, 2020 221,002,809.00 116.15 DLI IN00951351 ACTION DLI 3 DLI#3: Increase in rural population with SLWM Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Number Outcome Yes 132.75 0.00 (Thousand) Period Value Allocated Amount (USD) Formula Baseline 255,782.61 Page 9 of 12 The World Bank IN Swachh Bharat Mission Support Operation (P153251) March 31, 2016 0.00 March 31, 2017 33.19 March 31, 2018 33.19 March 31, 2019 33.19 March 31, 2020 371,782.61 33.18 DLI IN00951352 ACTION DLI 4 DLI#4: Operationalization of Performance Incentive Grant Scheme by MDWS Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Process No Yes/No 147.50 100.00 Period Value Allocated Amount (USD) Formula Baseline No March 31, 2016 147.50 March 31, 2017 0.00 March 31, 2018 0.00 March 31, 2019 0.00 March 31, 2020 0.00 Page 10 of 12 The World Bank IN Swachh Bharat Mission Support Operation (P153251) ANNEX 2: PROGRAM ACTION PLAN . . PAP_NOT_CHANGE_TBL Action Description Source DLI# Responsibility Timing Completion Measurement Appoint an agency to conduct an annual National Rural Sanitation Survey to measure the performance of the States and publicly report the findings of the The data of the National Annual survey. Make Rural Sanitation Survey (NARSS) disbursements are made public every year. based on the Performance grants (based on results of the survey results) are announced survey. Other Client Recurrent Yearly and disbursed to states. MDWS, shall roll out fiduciary management practices and ensure that annual audits of accounts are conducted by states in Annual Progress Reports, Annual accordance with Audit Reports during the Program SBM-G guidelines Fiduciary Systems Client Recurrent Yearly Period Update BCC strategy and implement annual action plans at the Annual Progress Reports, national level. Other Client Recurrent Yearly assessment reports Strengthen citizen-feedback mechanisms of SBM-G program. Other Client Recurrent Continuous Annual Progress Reports Initiate Social Audit of SBM-G in Environmental and Social States and UTs. Systems Client Recurrent Continuous Annual Progress Reports Enhance existing Grievance Management systems for efficient and Assessment and Annual Audit timely redress. Other Client Recurrent Continuous Reports Strengthen SBM- Environmental and Social Client Recurrent Continuous Annual Progress Reports Page 11 of 12 The World Bank IN Swachh Bharat Mission Support Operation (P153251) G program by Systems incorporating environmental management considerations in the design and implementation of safe sanitation technologies. . Page 12 of 12