The World Bank IN National Ganga River Basin Project (P119085) REPORT NO.: RES47446 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF IN NATIONAL GANGA RIVER BASIN PROJECT APPROVED ON MAY 31, 2011 TO INDIA WATER SOUTH ASIA Regional Vice President: Hartwig Schafer Country Director: Junaid Kamal Ahmad Regional Director: John A. Roome Practice Manager/Manager: Michael Haney Task Team Leader(s): Xavier Chauvot De Beauchene, Upneet Singh The World Bank IN National Ganga River Basin Project (P119085) ABBREVIATIONS AND ACRONYMS COVID Novel Coronavirus Disease DO Development Objective HAM Hybrid Annuity Model IP Implementation Progress MS Moderately Satisfactory NGP Namami Gange Program NGRBA National Ganga River Basin Authority NGRBP National Ganga River Basin Project NMCG National Mission for Clean Ganga PPP Public Private Partnership SMCG State Mission for Clean Ganga The World Bank IN National Ganga River Basin Project (P119085) BASIC DATA Product Information Project ID Financing Instrument P119085 Investment Project Financing Original EA Category Current EA Category Full Assessment (A) Full Assessment (A) Approval Date Current Closing Date 31-May-2011 30-Dec-2021 Organizations Borrower Responsible Agency Ministry of Jal Shakti, Department of Water Resources, India River Development and Ganga Rejuvenation,National Mission for Clean Ganga Project Development Objective (PDO) Original PDO The objectives of the project are to support the National Ganga River Basin Authority (NGRBA) in: (a) building capacity of its nascent operational-level institutions, so that they can manage the long-term Ganga clean- up and conservation program; and (b) implementing a diverse set of demonstrative investments for reducing point-source pollution loads in a sustainable manner, at priority locations on the Ganga. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-80650 31-May-2011 14-Jun-2011 18-Aug-2011 30-Dec-2021 401.00 294.26 106.74 IDA-49550 31-May-2011 14-Jun-2011 18-Aug-2011 30-Dec-2021 199.00 179.41 0 The World Bank IN National Ganga River Basin Project (P119085) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Background 1. The National Ganga River Basin Project (NGRBP) was approved in May 2011 with the objectives of: (i) building institutional capacity for long-term clean-up and conservation of the river Ganga; and (ii) financing investments for reducing point-source pollution load at priority locations along the river. These investments are mainly focused on sewage networks and sewage treatment plants and are at varying stages of completion. The total World Bank commitment for the Project is US$600 million (US$401 million IBRD Loan and SDR123 million IDA Credit). As of June 24, 2021, the undisbursed balance under the Project amounts to US$ 106.74 million. The Project closing date is December 30, 2021. B. Implementation Arrangements 2. NGRBP is implemented by the National Mission for Clean Ganga (NMCG), under the Department of Water Resources, River Development and Ganga Rejuvenation of the Ministry of Jal Shakti. At the State level, State Missions for Clean Ganga coordinate implementation of activities and report to the State nodal departments (typically Urban Development or Water Supply). Executing Agencies at the State level implement specific infrastructure investments. C. Project Status 3. NGRBP is making progress towards the achievement of its Development Objective (DO), which has been assessed as Moderately Satisfactory (MS) since October 2019. The Project has supported NMCG and the States to adopt several innovations, including the development of a public-private partnership (PPP) model called the Hybrid Annuity Model (HAM) to attract long-term private financing to ensure sustainability of operation and maintenance of investments financed under the Project; development of network and non-network solutions to achieve universal coverage at city level; co-treatment of septage at existing sewage treatment plants; ensuring house connections to the sewer including for the poorest in the network coverage areas; systematic implementation of the “one city, one operator” model; and supported NMCG to engage in institutional development activities as it develops a roadmap to evolve into a river basin management agency. 4. The Project continues to show good implementation progress. 34 investments are underway, of which 15 are completed, six have achieved physical progress of over 90%, five have achieved physical progress of over 70%, and the balance are at various stages of completion. Disbursement stands at $473.67 million, or 81.2% of the Project funding. Exchange rate fluctuations reduced the effective value of the IDA Credit portion, which is fully disbursed, by about $20 million to $179.41 million. Implementing agencies at national and state levels are adequately staffed The World Bank IN National Ganga River Basin Project (P119085) and well positioned to take the Project forward, and investments implementation continues despite the disruptions caused by the ongoing COVID-19 pandemic. Implementation Progress remains Moderately Satisfactory. 5. The Project has been restructured five times since 2011. The first restructuring (June 2015) revised the Results Framework to better align it with Project activities. The second restructuring (December 2016) aligned the Project more closely with the Namami Gange Program of the Government of India by increasing the central share from 70% to 100%, increased the World Bank’s share of reimbursement of central share from 89% to 100%, and introduced a sub-component under Component 1 to support PPPs. The third restructuring (June 2017) reallocated proceeds across components to prioritize the use of the IDA Credit. The fourth restructuring (August 2019) extended the project closing date by two years to December 30, 2021 and effected a partial cancellation of $400 million thereby resizing the IBRD loan to $600 million. The Project was restructured a fifth time in October 2019 to revise the results framework to reflect the extension of the project closing date effected through the previous restructuring. D. Rationale for Restructuring 6. The Government of India, vide DEA’s letter dated June 24, 2021, requested the Bank to: (i) cancel US$60.7 of the IBRD loan on account of exchange rate savings; (ii) revise the Results Framework to reflect reduced targets; and (iii) re-allocate US$ 28.97 million from the Disbursement Category 1 (Institutional Development) to Disbursement Category 2 (Priority Infrastructure Investments as the current US$99.6 million allocation to Disbursement Category 1 (Institutional Development) exceeds the estimated need for external financing of activities under this component. 7. The loan proceeds which are being reallocated from the Disbursement Category 1 (Institutional Development) aim at reducing the amount under Disbursement Category 1 to the activities actually performed under the Institutional Development component of the NGRBP, which includes real-time water quality monitoring, communication and program management expenditures. This reallocation reflects the pragmatic reality that the amount originally allocated under this Disbursement Category cannot be used before the project closing date whereas there’s a need for more funds for the infra investments. However, the continuity of institutional development efforts will be assured under Ganga 2), which design took into consideration what could be implemented under the NGRBP and identified Institutional Strengthening activities which would be best implemented under the SNGRBP and which are currently under preparation. 8. The reallocation of loan proceeds will contribute to fund ongoing priority investments and not additional investments. The increased allocation to the Disbursement Category 2 (Priority Infrastructure Investments) will therefore not have additional environmental and social impacts and does not require the preparation of additional environmental and social safeguards instruments. Consistent with the terms of the Project Environmental and Social Management Framework (ESMF), adequate safeguards documents have been prepared for each investment and reviewed by the Bank and disclosed in keeping with Bank requirements. The World Bank IN National Ganga River Basin Project (P119085) II. DESCRIPTION OF PROPOSED CHANGES 9. The changes proposed under this restructuring are as follows: a. Cancel US$60.7 million of the IBRD Loan from Part A: Institutional Development b. Reallocate US$28.97 million from Disbursement Category 1 (Institutional Development) to Disbursement Category 2 (Priority Infrastructure Investments) c. Revise the Results Framework to reflect reduced targets d. Update the disbursement projections III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursement Estimates ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ PBCs ✔ Loan Closing Date(s) ✔ Disbursements Arrangements ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ The World Bank IN National Ganga River Basin Project (P119085) Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Component One: Institutional Component One: Institutional 200.00 Revised 10.00 Development Development Component Two: Priority Component Two: Priority 956.00 Revised 1116.00 Infrastructure Investments Infrastructure Investments TOTAL 1,156.00 1,126.00 OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation BORROWER' Disburs S REQUEST IBRD- 401,000,000.0 340,300,000.0 ing&Re USD 60,700,000.00 30-Jun-2021 FOR 80650-001 0 0 paying COUNTRY REASONS BORROWER' Disburs S REQUEST IDA-49550- 123,020,000.0 123,020,000.0 ing&Re XDR 0.00 30-Jun-2021 FOR 001 0 0 paying COUNTRY REASONS OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES The World Bank IN National Ganga River Basin Project (P119085) Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IBRD-80650-001 | Currency: USD iLap Category Sequence No: 1 Current Expenditure Category: Gds,Wks,Cons,Op Cst fr Prt A of Prj 99,673,350.00 2,096,466.15 10,000,000.00 100.00 100 iLap Category Sequence No: 2 Current Expenditure Category: Gds,Wks,Con,OpCst fr Prt B excl Lnd 299,324,150.00 290,157,897.94 328,297,500.00 100.00 100 iLap Category Sequence No: 4 Current Expenditure Category: Front End Fee 0.00 0.00 0.00 0.01 0 Total 398,997,500.00 292,254,364.09 338,297,500.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2011 0.00 0.00 2012 44,363,821.98 44,363,821.98 2013 578,723.56 578,723.56 2014 17,795,953.00 17,795,953.00 2015 112,685.60 112,685.60 2016 1,438,019.22 1,438,019.22 2017 24,965,647.22 24,965,647.22 2018 94,895,730.21 94,895,730.21 2019 110,119,419.21 110,119,419.21 2020 140,000,000.00 97,000,000.00 The World Bank IN National Ganga River Basin Project (P119085) 2021 140,000,000.00 80,500,000.00 2022 25,730,000.00 67,530,000.00 . The World Bank IN National Ganga River Basin Project (P119085) . Results framework COUNTRY: India IN National Ganga River Basin Project Project Development Objectives(s) The objectives of the project are to support the National Ganga River Basin Authority (NGRBA) in: (a) building capacity of its nascent operational-level institutions, so that they can manage the long-term Ganga clean-up and conservation program; and (b) implementing a diverse set of demonstrative investments for reducing point-source pollution loads in a sustainable manner, at priority locations on the Ganga. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline End Target Building institutional capacity New Programme institutions are set up & are effectively 0.00 6.00 functioning (Number) Sanitation Operators with O&M management plan and related staff capacity building program approved and under 0.00 4.00 implementation (Number) Reducing point source pollution load Direct project beneficiaries (number in million) (Number) 0.00 3.57 Action: This indicator has been Revised Amount of BOD pollution load abated by sewage treatment 0.00 16,500.00 plants built or rehabilitated under the Project (Metric tons/year) Action: This indicator has been Revised Households connected to network sanitation systems under the 0.00 325,000.00 Project (Number) The World Bank IN National Ganga River Basin Project (P119085) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline End Target Action: This indicator has been Revised Volume of untreated wastewater prevented from entering the 0.00 386.00 Ganga due to project interventions (MLD) (Number) Action: This indicator has been Revised PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 Component One : Institutional Development Capacity building plan for regulators approved and under No Yes implementation (Yes/No) Number of Water quality monitoring stations generating real 0.00 36.00 60.00 70.00 70.00 time data (Number) Action: This indicator has been Revised Common data platform for water quality and flow monitoring is No Yes developed and generates monthly reports (Yes/No) Action: This indicator has been Marked for Deletion The World Bank IN National Ganga River Basin Project (P119085) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 Long-term plan to strenghten NMCG’s role for River Basin Management is prepared, adopted No Yes and under implementation (Yes/No) Action: This indicator has been Marked for Deletion Grievance Redressal System in place at the national level, in each 0.00 6.00 State and at sites of each sub- project (Number) Percentage of planned professional staff positions filled in NMCG 5.00 100.00 central and state-level institutions (Percentage) Number of ULBs with an approved plan for covering the O&M costs of 0.00 4.00 the sanitation service beyond the project period (Number) Number of cities where community outreach campaigns are being implemented to promote 0.00 4.00 household connections to sewer networks (Number) Share of grievances addressed within 30 days from receipt 0.00 80.00 (Percentage) The World Bank IN National Ganga River Basin Project (P119085) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 Number of investments funded under the Project showing physical 0.00 80.00 completion rates of 70% or more (Percentage) Action: This indicator has been Revised Component Two : Priority Infrastructure Investments Share of BOD pollution load from point source in priority locations 0.00 70.00 abated under the Project (Percentage) % of targeted river front management investments 0.00 100.00 completed (Percentage) Wastewater treatment capacity 0.00 344.00 created (per day) (Liters (Million)) Action: This indicator has been Revised Number of cities/towns following the one-city one operator model 0.00 5.00 (Number) Action: This indicator has been Revised Infrastructure investments by value with 10 years or more of O&M including DBOT or PPP – Hybrid 0.00 95.00 Annuity under the Project (Percentage) The World Bank IN National Ganga River Basin Project (P119085) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 Length of sewerage network laid 0.00 2,700.00 under the Project (Kilometers) Action: This indicator has been Revised IO Table SPACE The World Bank IN National Ganga River Basin Project (P119085)