INDIA: Integrated Coastal Zone Management Project · INDIA Integrated Coastal Zone Management Project (P007985) Aide Mémoire: Sixth Implementation Review Mission, January 30 –

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INDIA: Integrated Coastal Zone Management Project Sixth Implementation Review Mission: January 30 – February 20, 2014

Aide Memoire

A. Introduction, Objectives, Acknowledgements and Schedule

1. The Sixth Implementation Review mission of this project was undertaken during January 30 – February 20, 2014. During the site visits and discussions, the World Bank team1 was joined by officials and staff of the SICOM (the national project management unit or NPMU) and the State Project Management Units from Gujarat and Odisha. This aide memoire also summarizes findings of the various technical discussions and field visits of the Bank task team during October – December 2013.

2. Objectives of the mission included: (a) review the status of actions agreed during the mid-term review (MTR) mission of May-June 2013; (b) detailed review of the status of procurement in the light of actions agreed during the MTR mission, and to reach agreements on actions relating to pending procurements, if any; (c) review of disbursement progress since the MTR mission, to agree on clear estimates of expenditures, budget allocations and disbursement projections; and to agree on actions to further improve the disbursement in the project; (d) assessing the need for partial cancellation of credit amount, based on procurement and disbursement reviews (in the light of agreed actions relating to procurement during MTR mission), if necessary; (e) if partial cancellation is necessary, agreement on restructuring requirements (including any changes, if required, on the scope, design and components of the project), and initiation of restructuring process; (f) reviewing fulfillment of the covenants applicable to implementation of the Project, including legal covenants; and (g) reviewing the operation of financial management system, procurement management system including dissemination of procurement related information, environmental and social impact management processes, grievance redress processes, and the roll-out of the communication strategy and plans.

3. During the mission, discussions were held with the National Project Director and the staff of SICOM, State Project Directors and the staff of the State Project Management Units (SPMUs) in Gujarat and Odisha, all the Priority Investment Executing Agencies (PEAs) involved in implementation of the Project in the National Components and in the Project States of Gujarat and Odisha. Based on a request from the Department of Economic Affairs (DEA) of the Ministry of Finance the mission cancelled the visit to West Bengal (which was planned at the start of the mission); but review of the progress of the West Bengal State Component was undertaken during the several meetings in New Delhi along with SICOM. The mission had wrap-up meetings with the Secretary, Ministry of Environment and Forests, Government of India (MoEF) on February 19, 2014; the Additional Chief Secretary (Forests and Environment), Government of Gujarat on January 31, 2014; and the Principal Secretary (Environment), Government of Odisha on February 06, 2014. The mission debriefed the DEA on February 20, 2014. The list of officials and prominent stakeholders met during the mission is presented in Annex 1.

1 The World Bank team consisted of A S Ramakrishna (Senior Environmental Specialist and Co-Task Team Leader), Parthapriya Ghosh (Senior Social Development Specialist), Thomas Kwasi Siaw Anang (Procurement Specialist), S. Krishnamurthy (Senior Financial Management Specialist), Om Prakash (Consultant, Procurement Specialist), Moushumi Chatterjee (Consultant, Museologist), Nidhi Batra (Consultant, Urban Designer), Genevieve Maria Dutta (Program Assistant ), and Tapas Paul (Senior Environmental Specialist and Task Team Leader).

INDIA Integrated Coastal Zone Management Project (P007985)

Aide Mémoire: Sixth Implementation Review Mission, January 30 – February 20, 2014

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B. Key Project Data

Project Data Project Performance Ratings

Board Approval June 15, 2010 Summary ratings Last Now

Effectiveness Date September 22, 2010 Achievement of PDO MS MS

Original Closing Date December 31, 2015 Implementation Progress MS MS

MTR Date June 30, 2013 Financial Management MS MS

Procurement S S

Original Credit Amount US$ 221.96 million Project Management S MS

Amount Disbursed US$ 49.10 million (+2.8 million)

Counterpart Funding S S

Monitoring and Evaluation MS MS

C. Achievement of Development Objectives

4. The Project Development Objectives are to assist GOI in (i) building national capacity for implementation of

comprehensive coastal management approach in the country, and (ii) piloting the integrated coastal zone

management approach in states of Gujarat, Odisha and West Bengal.

5. Institutional Capacity: The appropriate national institutional structure for guiding and coordinating implementation of ICZM approaches has been established including the national, state and district level coastal zone management authorities, the Society for Integrated Coastal management (SICOM), and the National Centre for Sustainable Coastal Management (NCSCM). As reported during the MTR, NCSCM is now functioning effectively, even if further expansion is proposed during 2014 (and it already has appropriate recognition as per the CRZ Notification 2011). MoEF has recently taken up the issue of permanence of the SICOM and the NCSCM (to receive internal government approval for sustaining these institutions after the close of the project, even if such sustenance was the intent at the start of the project) and a formal decision is expected within June 2014. Although the national and state coastal zone management authorities (NCZMA and SCZMAs) have been functioning as planned, there is a need that all SCZMAs should build the requisite technical secretariat. The MoEF has mandated SICOM for overall coordination of the coastal zone program in the country, but formal authorization of SICOM as the technical secretariat of the NCZMA is yet to be notified. Other than Odisha, there has not been any noticeable progress in Gujarat and West Bengal to mandate the SPMUs as the secretariat of the SCZMAs. Formation of the district level coastal zone management authorities (DCZMAs) is yet to cover all coastal districts, and building their capacities continues to remain a challenge for the NCZMA and the MoEF.

6. Improving Knowledge Base: There has been noticeable progress on the knowledge agenda. All these knowledge products are available in public domain, such as at websites. Since the MTR, noticeable augmentation of the knowledge agenda includes the following:

a. As part of the National Component, (i) supplementary measurement of astronomical tides is nearly complete for an additional 35 locations (14 locations are now proposed to be deleted of the intended 49 locations) by the Survey of India; and therefore the analysis of tidal data has been completed for all major, minor and supplementary ports in the mainland coast of India; (ii) an improved advanced draft of the potential of offshore wind energy in India, taking into consideration the daily, weekly and monthly variability; (iii) initiated an aassessment of coastal and marine ecosystem goods and services for the country; (iv) initiated an assessment of resource dependency and social capital among the coastal communities; (v) substantially progressed in the assessment of the ‘blue carbon’ sequestration in the coastal and marine ecosystems; (vi) initiated the establishment of ‘sentinel sites’ for coastal management; (vii) substantially progressed on the study on the impacts of seaweed cultivation on



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coastal environment and on the development of models for seaweed cultivation outside marine protected areas; and (viii) has launched the national database and field identification toolkits for coastal and marine biodiversity resources, called ‘coastal and marine biodiversity integration network’ or ‘CoMBINe’ (http://166.78.150.138/).

b. As part of the Gujarat State Component: (i) Bhaskaracharya Institute Space Application and Geo-Informatics has completed the coastal atlas – including atlas of mangroves, corals, saltpans, low tide line, high tide line; (ii) a GIS for coastal zone decision-making is nearing completion; (iii) finalized protocols for two models of coral transplantation; and (iv) analytical summary of sea water quality monitoring for 2011-13 has been completed.

c. As part of the Odisha State Component: (i) two new novel species of bacteria (Streptomyces

chilikensis and Streptomyces barkulensis) have been discovered; and (ii) a GIS describing macrophyte vegetation of the Chilika lagoon has been prepared.

7. Policy and Regulation: Gujarat had undertaken a number of district level workshops, since the MTR, to explain in detail the intent and scope of the 2011 Coastal Zone regulation Notification. However, since August 2012, there continues to be no progress related to the two proposed regulations: the proposed River Zone Regulation for conservation of estuaries, and the proposed Fisher Persons' Rights Bill2. As noted in the aide memoires of the earlier implementation support missions and the MTR, these proposed policy instruments will take time to move to the next step of being placed for legislative approval, and formal legislation will be very difficult to achieve before the close of the project.

8. Replication: As reported at MTR, since May 2013, the government had initiated preparation of integrated island plans for two union territories – the Lakshadweep Island, and the Andaman and Nicobar Islands. Further, Tamil Nadu and Puduchchery have also initiated preparation of integrated coastal zone management plans. Preparation of all these plans have adopted processes similar to the ones being used in the project, and as such based on the guidelines prepared by NCSCM. No such plan is yet final.

Likelihood of achieving Project Development Objective

9. The project has already benefitted 588,408 persons directly (284,137 or 48% of whom are women), equal to 54% of the targeted direct beneficiaries (see Annex 7 for details). Based on the progress, continued public and stakeholder engagement, and support at the highest policy-levels in GOI and the three state governments, the achievement of the PDOs in the remaining project period is possible. In case of West Bengal, though the implementation is delayed, government support continues for improving the overall performance.

10. In respect of building national capacity for coastal management approach, the revised draft guidelines for ICM plan preparation are available and the supporting activities such as hazard line mapping, erosion mapping, etc. are progressing. There has been substantial progress in the setting up of the institutions, knowledge benchmarks and services have shown improvement, and the policy reforms are in place. Process of formal approval initiated to sustain the capacities created (notably SICOM and NCSCM) beyond the project. Activities relating to preparation of ICZM plans in Gujarat and Odisha are given priority, while the delay in preparation and hence implementation of many of the pilot activities, especially in West Bengal may impair the focus on larger ideas. The inadequate project management capacity in West Bengal, if not addressed on priority, preparation and adoption of ICZM plans and further augmentation of the institutions and knowledge under Component 4 will be at risk of being not achieved. Given this, part of the PDO relating

2 These two instruments (the proposed River Zone Regulation for conservation of estuaries, and the proposed Fisher Persons'

Rights Bill) were not part of the agreed outcomes. These were proposed by MoEF later to respond to the evolving needs for conservation of the coastal and marine resources.



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to West Bengal will not be achieved unless greater attention is paid to preparation and adoption of the ICZM plans.

11. As agreed during the MTR, a complete package of monitoring data is now available for the ongoing project activities which are in different stages of implementation. For some of the completed activities, such as part of the mangrove plantations in Gujarat (about 4,000 Ha.), third party evaluation is completed. However, the proposed overall third party evaluation agreed during the MTR is yet to be completed. Since stakeholder satisfaction surveys from the third party evaluation are objective means to ascertain the PDO achievement, it was agreed to complete evaluation before October 2014. In absence of such evaluation, although the monitoring data reflects improvement, the achievement of development objectives in the project is rated as moderately satisfactory.

Likelihood of Achieving Intermediate Outcomes

12. Following is a summary discussion on the likelihood of achieving the intermediate outcomes.

Component

Planned Intermediate Outcome

Up to the MTR

Major achievements since the Mid-Term Review

Overall Remarks

One National Capacity Built for guiding and coordinating ICZM Coastal Management Areas Demarcated and Verified

Likely to be achieved

Highly Likely to

be achieved

Revised draft of guidelines for ICZM plan preparation available. The process of ICZM Plan preparation initiated in Gujarat and Odisha. Process for formal approval initiated to sustain the capacities created (notably SICOM and NCSCM) beyond the project. NCSCSM research program has gathered momentum. Parts of the large capacity building program are now being implemented. However, no further progress in augmentation of SCZMAs and DCZMAs. Aerial photography earlier completed. Photogrammetry works progressing slowly. Measurement of tides and flood levels complete. Detailed erosion mapping should be completed by June 2014. Works progressing satisfactorily for Vedaranyam ESA, and Dandi

ESA progressing albeit slowly. Work on identification of all other ESAs delayed.



Two Gujarat state and other stakeholder’s capacity built in implementing ICZM approaches

Highly Likely

The project and the ICZM agenda continue to receive attention at the highest policy levels. Very good results already achieved at the village community level. Most pilot activities progressing with excellent communication.

Highly Likely to be

achieved

Three Odisha state and other stakeholder’s capacity built in implementing ICZM approaches

Highly Likely

The project and the ICZM agenda continue to receive attention at the highest policy levels. A number of knowledge, capacity building and communication activities initiated. Most pilot investments progressing well.

Highly Likely to be

achieved

Four West Bengal state and other stakeholder’s capacity built in implementing ICZM approaches

Somewhat at risk

Implementation (which slowed down since March 2013) has not accelerated. Procurement further delayed, and a number of pilot investments are unlikely to be completed within the project period. No noticeable progress on the ICZM agenda since MTR.

Likely to be achieved if Proj. Mgt. capacity is

improved on priority

Overall Building national capacity for implementation of comprehensive coastal zone management approaches


MoEF stewardship for the coastal zone and marine area management has been good. Overall interest from stakeholders including civil society has been good.

Likely to be achieved (except in

West



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Component

Planned Intermediate Outcome

Up to the MTR

Major achievements since the Mid-Term Review

Overall Remarks

Bengal)

13. Key Implementation Issues: At present the major challenges are:

(a) Procurement: 112 contracts out of 196 contracts (which were all expected to be awarded by December 2013, and later by March 2014 at the request of West Bengal) are ready for award, but could not be awarded due to the issue of the EFC/CCEA approved ceiling cost of project (in INR terms, of INR1153 crore), as SICOM is not authorized to commit expenditure above INR1153 crore. 84 contracts (worth INR 146 crore) are yet not advertised. Majority of these (63 contracts worth INR115 crore) are in West Bengal.

(b) Lack of Progress of West Bengal Component: West Bengal awarded only 8 of the agreed 73 contracts and some of the awarded contracts have not been signed. The progress of awarded contracts is very slow and the FY 14 expenditure had also been slow (less than 50% of other state components). West Bengal SPMU has indicated intention of either discontinuing or dropping the knowledge and capacity building activities and progress is not noticed in initiating ICZM Plan Preparation

(c) Increased Project Cost: While the current estimated cost of the project is INR 1786 crore, the original cost estimate was INR 1335 (INR 1153 crore at 2009 prices + physical and fiscal contingencies of INR 180 crore), EFC/CCEA approval was given for INR 1153. MOEF expressed the intent solicit EFC/CCEA approval. The revised cost (with EFC/CCA approval), including utilization of project savings due to currency fluctuation within the allowable expenses under different components to be provided to the Bank.

(d) Budget: For FY14, the budget allocation was sufficient, but in December 2013, the budget of the MoEF was curtailed. As a result, MoEF could not provide INR75 crore for January-March 2014. For March 2014 alone, there is a shortfall of INR41 crore. Further, for FY15, MOEF got a budget allocation of INR140 crore for this project (where the budget requirement is INR551 crore, and INR 140 crore is required for the 3 months of April-June 2014).

D. Current Progress of Implementation

14. Following is a summary discussion on (i) actions taken by NPMU and SPMUs and the PEAs based on agreements reached at the MTR (June 2013); and (ii) the current progress of implementation.

15. Progress on Agreements during the Last Mission: Overall, the progress on the actions agreed during the last mission had been good for the Gujarat and Odisha State Components, fair for the National Component, and poor for the West Bengal State Component. See Annex 5 for details.

a. Disbursement related agreements. The following are the current status, and projections for the remainder of the FY14:

i. For FY14, the quarterly disbursement estimates were US$3.2 - 3.5 million (First Quarter), US$7.1 – 8.2 million (Second Quarter), US$15.8 – 19.8 million (Third Quarter), US$18.4 – 25.8 million (Fourth Quarter); and overall for the FY14 US$44.4 – 57.3 million (FY14). Against this target, the actual disbursement has been US$1.3 million (First Quarter), US$4.5 million (Second Quarter) and US$4.5 million (so far in the Third Quarter) or overall US$10.4 million so far in FY14.

ii. Part of the above shortfall is due to DEA decision to withhold a portion of the disbursement request to adjust against the fixed advance received in the project in 2010. So far in FY14, such amount adjusted against the fixed advance is US$3.8 million.



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iii. Part of the shortfall is due to slack of expenditure in the project. The MTR estimate for project expenditure in FY14 until January 2014 was INR 173 crore, whereas only INR139 crore (80% of the estimate) has been spent until January 2014.

iv. Expenditure (in INR crore) and disbursement projections (in US$ million) for the months of January to June 2014 are as follows:

Project Component Jan 14 Feb 14 Mar 14 Apr 14 May 14 Jun 14 Total

National Component 2.5 16.4 16.9 5.4 15.2 25.8 82.2

Gujarat Component 7.5 13.0 13.0 14.2 10.7 21.0 79.4

Odisha Component 11.5 16.5 19.5 18.0 18.0 19.0 102.5

West Bengal Component 6.0 7.3 10.4 8.0 8.0 8.0 47.7

Total Expenditure (INR Cr)

27.5 53.2 59.8 47.2 51.9 73.8 313.4

Expenditure for Quarter (INR Crore)

140.5 172.9 -

Disbursement Estimate (US$ million)

Remaining Third Quarter – FY14

Fourth Quarter – FY14 Until Now

Total FY14

As per Expenditure Plan 12.5 19.9 10.4 42.8

With all risks unmitigated 10.2 13.9 10.4 34.5

Adding the adjustment against fixed advance by CAAA for the entire FY14

As per Expenditure Plan 10.4 46.7

With all risks unmitigated 10.4 38.4

v. Therefore, it could be seen that the FY14 disbursement estimate (low-medium) made at MTR (June 2013) is possible and likely to be met. At the Tripartite Review, SICOM and MoEF had agreed to ensure the minimum disbursement of US$15 million for the Third Quarter. The current disbursement in the Third Quarter is US$4.5 million, and it is likely that the target of US$15 million will be met.

vi. However, in the Fourth Quarter, there will be risks of low disbursement. These are related to the following issues:

a. The GC of SICOM and the MoEF has suggested the SPMUs and the national level PEAs to cap their procurement to the respective base cost approved in 2010. Therefore, a number of contracts are awaiting award, and the estimated expenditure against these may not materialize. This could reduce the disbursement in FY14 (mostly in the Fourth Quarter) by at least US$2.5 million.

b. MoEF is currently experiencing a shortfall of budget for the month of March 2014 (same as most other ministries of GOI after the revised budget allocations of December 2013). The project has a budget shortfall of INR41 crore, which is essential to meet it planned contract commitments. MoEF assured the mission that the best possible budget will be made available to the project (diverting the savings in other projects, if any). However, it is unlikely that all of INR 41 crore will be available. In that case, the planned expenditure of March 2014 will only be spent in April 2014.



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c. Against the requirement of INR 551 crore during Financial Year 2014-15, the budget allocation to the project is INR 140 crore. The vote-on-account has provided MOEF with a limited budget, and it is unlikely that any additional allocation to the project can be made until the budget proposal for GOI is passed in June-July 2014 (after the general elections). MoEF assured the mission that adequate budget provision (INR450 crore or more) will be made for the Financial Year 2014-15. However, the initial shortage of budget, along with the shortfall in March 2014, may reduce the project expenditure by about INR50 crores, and consequently the FY14 disbursement may be reduced by as much as US$6 million.

d. Further, if MoEF and SICOM GC (or the Expenditure Finance Committee or EFC) take the decision to cap the INR cost of the project for the remaining of the project period (and especially for the State Components of Gujarat and Odisha), disbursement in FY15 or FY16 will also not meet the MTR estimates.

e. In light of the above possibility of capping expenditure (to the original INR cost of 1135 crore approved by EFC), the revised procurement plan prepared in November 2014 has not been approved by the GC of SICOM.

vii. Notwithstanding the above, since the MTR the following improvements could be noted:

a. Several actions were taken such that the expected disbursement in FY14 (US$42.8 million) will be about 19% of the total credit (disbursement ratio of 22%). This is more than double of what was achieved in FY13 (US$20.8 million, which itself was more than double of the disbursement in FY12).

b. The targets for awarding contracts (by December 2013, later extended to March 2014 as agreed between SICOM and DEA) were nearly achieved by the Gujarat and Odisha State Components, with some slack in the National Component3.

viii. The NPMU and SPMUs in Odisha and Gujarat had monitored intermediate steps (milestones) in the procurement processes for each of the contracts.

ix. For the contracts that are already awarded, the NPMU and the SPMUs had monitored the completion of the contracts vis-à-vis the contract milestones, and had taken measures to ensure that the implementation of these contracts did not slip further)4.

x. MoEF had ensured that there is no shortage of budget allocation for the project during July-October 2013. There has been shortage since November 2013, and MoEF has released budget in the recent past on a monthly basis. [Even if MoEF sees this the best possible way, this lack surety of budget availability has affected expenditure.] It is expected that during FY15 (especially after the GOI budget allocation in June-July 2014) there will be no shortage of budget.

3 However, the West Bengal Component failed to meet the targets for award of contracts; and it is likely that not more than a small part of the expected award since MTR (10% by number, and 35% by value) will actually be awarded by March 2014.

4 Exceptions include (i) the contract for the Jamnagar sewage treatment plant in Gujarat State Component, where the contractor’s mobilization has been delayed owing to a disagreement on performance bond; (ii) contracts in West Bengal State Component where the pace of implementation has slowed further.



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b. Agreements on the planned knowledge program at NCSCM. As agreed, all research programs had started and a few of these have already shown good progress. However, the dialogue with the Partnership for Environmental Management in the Seas of East Asia (PEMSEA) for technical cooperation has not progressed as anticipated, and no action has yet been taken to formally partner with international research facilities (other than the Maryland University which is supporting preparation of the ecosystem health cards).

c. Agreements related to the terms of reference for preparation of ICZM plans, and preparation of the ICZM plans for the identified stretches. The NCSCM have revised the draft guidelines, taking into consideration World Bank comments on integrating environmental and social assessments as part of the plan preparation process itself. The revised guidelines also considered the inputs from national and international experts. Gujarat SPMU had tried to select consultants for supporting preparation of ICZM Plan for the Gulf of Kachchh. First round of selection process did not yield proposals from any suitably qualified consultants; and a second round of selection process was undertaken; and it is expected that negotiation (under quality-based selection procedure) will be completed soon. The Odisha SPMUs has also prepared terms of reference for preparation of the relevant ICZM Plan, although the selection process has yet not started (owing to the limitation in budget, as described earlier).

d. Agreements related to implementation of the national and state level capacity building and training plans. SICOM has prepared a draft of the revised national building plan. However, this has not yet been approved by the GC of SICOM. Gujarat SPMU has revised the state capacity building plan, but is awaiting approval.

e. Agreements related to capacity augmentation at SICOM and other SPMUs: In December 2013, a senior subject expert was appointed as additional project director at SICOM (which concluded a long pending issue). SICOM GC has advised that recruitment of the head of HR and administration function, and additional technical specialists at this late stage of the project is not advisable. The processes for appointing consultants to (i) installing an effective performance management and human resources management process; and (ii) real-time monitoring system has been delayed; but are in the final stages of award, and could be expected to be completed in another month. However, no progress has been made with respect to augmentation of the communication cell of SICOM (which is defunct). Looking at the importance of communication (especially as activities such as hazard line mapping start providing outputs), it is more important now to have an effective communication cell at SICOM; and it was agreed that augmentation of the communication cell will be attempted before April 2014. It is also important that the head of finance at NCSCM is also promptly recruited. Recruitment process for subject experts has been completed by SPMUs in Gujarat and Odisha. The technical capacity of the West Bengal SPMU remains inadequate with specific reference to preparation of ICZM Plan.

f. Agreements related to the sustainability of institutional arrangements beyond the duration of the project need to be initiated. SICOM GC and MoEF are initiating the process of formal recognition of SICOM and NCSCM to ensure their continuity beyond the project. It is expected that formal approval of these will be available before June 2014. However, there has not been any noticeable progress on the issue of recognizing the Gujarat SPMU or the West Bengal SPMU as permanent secretariat of the respective SCZMAs.

g. Agreements related to appointment of evaluation consultants. The first round of selection process did not yield any result. Thereafter SICOM has undertaken a second round to select an expert agency on a single-source basis (as per the approved Procurement Plan). It is expected that selection of such an agency will be completed soon, and the selected consultants will mobilized in about two months. Even a best case scenario will mean that the first evaluation report will be delayed by at least six months compared to what was anticipated at the MTR.



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16. Component One - National ICZM Capacity Building (Bank Finance: US$ 67.8; Disbursed: US$ 12.4)

a. Sub-component (1A) Hazard Mapping has progressed slowly since the MTR. Analysis of tidal data was completed including the additional work of collecting primary data of astronomical tides from 35 of the agreed 49 additional places (in 14 places this additional survey of astronomical tides was discontinued as it was found to be of marginal utility) by the Survey of India (SOI). Aerial photography contract, covering about 78,000km2 of area was completed in December 2012; but it was found that 2 small patches the quality of the output was low due to cloud cover (although it might not affect the use of these outputs for hazard mapping); re-flying is planned as per the contract conditions, but is delayed due to delay in getting clearance from the Ministry of Defense. Contracts for digital photogrammetry have progressed slowly, and SOI has been requested by the SICOM GC to ensure that the following three milestones are met: (i) work of pilot areas by each of the three contractors should be completed by March 2014, (ii) final output of hazard mapping should be available by June 2014 for the 3 areas where Gujarat, Odisha and West Bengal have to prepare ICZM Plans, this will also mean that erosion mapping by NCSCM for such areas should be concluded and available to the SOI before May 2014; and (iii) all outputs for the entire country should be completed by the contractors by June 2015. The work of erosion mapping by NCSCM has started, and it is agreed that NCSCM will complete the work for the entire country by September 2014.

b. Sub-component (1B) Identification and mapping of three ecologically sensitive areas (ESAs) such as Dandi in Gujarat and Vedaranyam in Tamil Nadu has been completed; mapping of the third, the Vembanad Lake in Kerala has started. Some planned work and community participation activities at Dandi and Vedaranyam is complete.

i. Plan preparation for the Dandi area is now delayed by at least 6 months compared to what was estimated at the MTR (September 2013); and this will require additional focus of SICOM and Gujarat Ecological Commission.

ii. Tasks for the Vedaranyam ESA is now progressing very well; and are on schedule to be completed by June 2014. However, the expansion of the activities and consequent enhancement of funding proposed by the PEA is yet to be accepted by SICOM.

iii. There was no progress with respect to the mapping of the Vembanad ESA since the Fourth Implementation Support Mission (and the MTR). Given this delay, it is likely that neither preparation of any management plan nor implementation of any part of the management plan will be possible within the remaining project period. SICOM should make a clear decision if continuing with this activity (currently, only the mapping and baseline collection) will be worthwhile, or otherwise discontinue this activity.

iv. The activities related to mapping ESAs for the entire country has now started by NCSCM. Methods and guidelines for mapping all types of ESAs were completed including on-schedule expert consultations in September-October 2013. Two works – related to mapping of turtle nesting sites, and mapping of bird nesting sites had been started. However, due to the issue of budget ceiling, the work of mapping the other ESAs has not started. A final schedule for delivery is yet to be finalized, and it is unlikely that the work for the entire country will now be completed before end 2014 (with a delay of at least 6 months compared to what was anticipated at the MTR). SICOM and NCSCM should strive to sign contracts with NGOs or other suitable alternative agencies by March 2014, such that all contracts could aim to finish the requisite mapping of the remaining types of ESAs by September 2014.

c. Sub-component (1C) the entire work of mapping of coastal sediment cells and sub-cells is now completed. NCSCM and SICOM will now use this work to inform all consequent planning and knowledge activities in the project.



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d. Sub-component (1D) National Center for Sustainable Coastal Management (NCSCM) has been established, it already completed some significant activities, such as “national shoreline assessment”, mapping of sediment cells and sub-cells; but more significant activities remain.

i. Major procurements, such as the contract for the NCSCM building and laboratories, are awarded and work has started. Similarly, a number of goods contracts have been awarded, and a few delivered. The remaining awards include a number of smaller packages for equipment (which are awaiting award), two packages for equipment to be procured through international competitive bidding, and the works contract for interiors and furnishing of the NCSCM building and laboratories. Overall, procurement is in a satisfactory status now.

ii. The issue of the second batch of staffing is pending (although with the first batch of 35 staff and another 37 short-term staff are adequate at this moment to take forward the currently programmed research activities), and the recruitment process is not expected to start until the formal approval of NCSCM as the permanent body of GOI is received. However, recruitment of the head of the finance and administration wing, and the recruitment of the remaining division chairs are important, and the process should start immediately.

iii. The in-house research programs for NCSCM earlier approved by the high powered research steering committee has now progressed substantially and it is expected that all these will be delivered finally between June–December 2014. The four research program earlier approved by the high powered research steering committee had not yet started yet due to lack of internal clarity at SICOM and NCSCM. Recently, the SICOM GC has now accepted that these research programs can start now, and NCSCM is expected to notify the relevant national partner institutes and transfer funds for such research to those institutes by March 2014. It is also important for NCSCM to prepare a second set of research proposals and submit for approval of the high powered research steering committee by June 2014.

iv. As reported at the MTR, there was no progress related to setting up and operationalization of the National Centre for Marine Biodiversity. SICOM will decide by March 2014 if this sub-activity is best deleted from the scope of the project.

e. Sub-component (1E): a national capacity building plan was revised in November 2013, but is yet to be approved by the GC of SICOM. However, two small and discrete capacity building activities were organized in December 2013. It is now important that this revised capacity building plan is approved by GC at the earliest, and implementation SICOM should start by June 2014.

f. Sub-component (1F) Project management activities jostled with lack of clarity on several fronts. A senior technical specialist has joined as the additional project director. However, the augmentation of the communication cell, which is of great importance now, has not taken place. GC of SICOM advised that recruitment of other specialist positions at this late stage of the project is not going to be very useful, and the mission agreed. Overall, the project management has been less than adequate, especially in terms of guiding faster implementation. The lack of clarity at SICOM on the principles of project implementation (coupled with the fact that turnover of staff did not permit development of clear institutional memory), inability to prepare comprehensive documents for approval of SICOM has resulted in the following issues: (i) several SPMUs and national PEAs are now asked to withhold award of contracts as it is not clear how and when the increase over the initial base cost of the project will be approved; (ii) there are confusion about the intent and approval of the bid premium earlier accepted by the project; (iii) there is a confusion about whether cost ceiling is more important than achieving the project objectives and targets; (iv) there is a lingering discussion about whether the project is to be completed within the 2009 base cost approved, even if the basis of such a principle is not clearly refuted; (v) questions galore on approvals by earlier GC, and that of MoEF itself. While it is expected that all of these confusions and issues would be resolved once full, clear and comprehensive documentation is presented by SICOM to its GC, meanwhile precious time of two or



11

three months have been wasted (and at SPMU and PEA levels, there could be higher consequent waste of time).

g. The procurement cell continues to suffer from the lack of capacity. The contract of the ‘procurement and financial management support consultancy’ was extended by six months, but clarity is lacking whether SICOM will like to continue with the same consultants or go for a new selection process. Selection process for a consultant to set up the human resources and staff performance tracking and evaluation system has been delayed by 6 months (and is expected to be awarded by early March 2014). Similarly, the process of selection of consultants to set up the real-time project monitoring system has also been delayed (by at least 6 months) and it is unlikely that this system can be launched before June 2014 (even if consultants are in place by early March 2014). Procurement of evaluation consultants is delayed by 6 more months (resulting in an overall delay of more than 18 months now); SICOM agreed to complete the selection process by March 2014.

17. Component Two – Piloting ICZM Approaches in Gujarat (Bank Finance: US$ 57.6; Disbursed: US$ 17.3): Implementation of all planned activities, except the marine resources conservation institute and oceanarium (MRCI) which is scheduled to be initiated during May-June 2014, has started; and is satisfactory. Overall, all contracts to be awarded by December 2013 as per the MTR have either been awarded, or are ready for award (but could not be awarded due to the issue of cost ceiling to be resolved by SICOM).

a. Sub-component (2A). The first round of selection process failed to identify consultants to support preparation of the ICZM Plan. A second round is ongoing and nearing completion (negotiations with the highest ranked consultants selected through a quality-based procedure).

b. Sub-component (2B) Capacity building activities are progressing satisfactorily. Since the MTR, the several district level workshops for the judicial officers and district administration staff of the state were held and a large-scale program involving school children was initiated.

c. Sub-component (2C) Priority investments are progressing well, especially the livelihood enhancement related activities. More than 10,000ha of mangrove have been planted. Verification of the areas planted was completed; and for further monitoring and evaluation an expert agency –the Gujarat Institute of Desert Ecology has been selected. For livelihood improvement pilot investments, community mobilization is completed in 163 of the 164 targeted villages, and work is progressing well. The work of sewerage in Jamnagar under two contracts is 65% and 42% complete, and both contracts were extended up to June 2014. However, contractors for the sewage treatment plant are delayed in their mobilization (owing to a protracted discussion by the contractors on the issue of performance bond, and SPMU and JMC are urged to take a final decision on this as soon as possible, or consider remedies under the contract). Bidding process for the MRCI is delayed by about 3 months (and as expected will not be concluded before March 2014).

d. Sub-component (2D) Project management activities, including financial management and communication are progressing well. Contract period of the internal auditors was extended. SPMU is expected to select a new consultant for ‘procurement and financial management support consultancy’ by March 2014.

18. Component Three - Piloting ICZM Approaches in Odisha (Bank Finance US$ 38.3; Disbursed: US$12.2): This component, overall, has also progressed well, and the current achievements are highly satisfactory. All major procurement of works, goods and equipment are awarded (except the ones that cannot be awarded now due to the issue of cost ceiling and a final decision by SICOM). This is in spite of the delay caused by the cyclone Phailin (during and aftermath of which, works were slow for about 3 months). The assets created by the project did not suffer any major loss during the cyclone (and the repairs where needed will be covered by the current contracts without variation). The cyclone shelters constructed by the project, even if not complete, were used during the cyclone to provide shelter.

a. Sub-component (3A): Further expert consultations were organized on the scope of the ICZM Plan.

The SPMU has now drafted the terms of reference for plan preparation; and consultant selection



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process is to be initiated before March 2014. Data from the regional coastal processes had been compiled at the SPMU, and some work of shoreline management sub-plan had been initiated.

b. Sub-component (3B): The capacity building activities of the Chilika Development Authority are progressing very well. The Odisha State Pollution Control Board has continued with monitoring of sea water with the finalized protocols for sea water monitoring. The SPMU is now working efficiently as the secretariat of the state coastal zone management authority.

c. Sub-component (3C) Priority investments are progressing satisfactorily, especially the livelihood enhancement related activities. Additional mangrove plantation had been undertaken with support from two non-government organizations and community groups. The contract for solid waste management work in Paradip is awaiting award (due to the issue of cost ceiling and bid premium) even as the issue of ownership of the landfill site has now been fully resolved by the Odisha High Court. Odisha State Disaster Management Authority progressed very well and works of all 14 cyclone shelters are nearing completion and handover to the community groups. All other works are progressing well. Looking at the success of installation of solar dryers, other agencies of state government are converging their schemes to create comprehensive facilities for the fisherpersons around the project-installed facilities.

d. Sub-component (3D) Project management activities, including financial management and especially the communication and stakeholder engagement activities are progressing very well. SPMU has recruited professionals to fill gaps created by staff turnover. Contract period of the ‘procurement and financial management support consultancy’ was extended.

19. Component Four - Piloting ICZM Approaches in West Bengal (Bank Finance US$ 58.3; Disbursed: US$ 7.3): This Component continues to be slow; and the lack of momentum noted during the MTR has not improved. At the MTR, there was doubt whether the contracts will be awarded in September 2013 (as was expected during the Fourth Implementation Support Mission), or even by December 2013. The SPMU requested extension of the deadline for awarding contracts up to March 31, 2014, and this was agreed by SICOM and DEA. However, since the MTR only 5 of the 66 contracts (less than 10% by number) worth INR 24 crore (15% by value) were awarded or are ready for award. Therefore, 61 contracts (worth about INR145 crore) remain to be awarded (some of which do not yet have the regulatory CRZ clearances). For two contracts (value about INR 40 crore) bid are under evaluation, but other contracts (value about INR 107 crore) bid have not yet been advertised. It is therefore likely that such contracts can be awarded much later, and even if awarded, these contracts cannot be completed within the remaining project period.

a. Sub-component (4A): No noticeable progress has been made since the MTR with respect to preparation of the ICZM Plan. It will be important for the SPMU to take decisions regarding: (i) the process of plan preparation and approval; (ii) scoping of the plan; (iii) terms of reference for supporting studies, so that the process for procurement of consultants to support preparation of ICZM plan could be initiated as early as possible. This ICZM plan is an important deliverable for the project, and has the highest risk of failing to deliver among all project activities.

b. Sub-component (4B) the capacity building activities of Calcutta University are nearly complete; the University had proposed expansion of the work, which was agreed at the MTR, but the SPMU has decided that such expansion was not necessary. Similarly, SPMU has decided that the knowledge activities at the Institute of Environmental Sciences and Wetland Management (which were to support preparation of ICZM Planning process and to build up in-house capacity of the State at the long-term) are not viable. During the annual fair at Sagar Island and the beach festival at Digha, there had been two communication campaigns. Notwithstanding these, the communication activities also slowed down. Since the MTR, there has not been any progress on the revision and/or implementation of the state level capacity building plan. Given that the SPMU is not inclined to implement the capacity-building and the knowledge activities, this sub-component is unlikely to achieve the planned objectives.



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c. Sub-component (4C) Since the MTR, the progress of the priority investments has not improved. The works contract for comprehensive upgrade of the marine aquarium at Digha has been awarded but the contract is not signed yet several weeks after award (and the formal plan for operation, maintenance and revenue generation for the improved facility is awaited). The work of electricity distribution at the Sagar Island was expected to be completed by March 2014; but seems very unlikely to be completed even in another 6 months. After a delay of more than 18 months, the variation order (which is a large variation order) is yet to be approved. Due to the delay of issuing the variation order, now coupled with the question of time extension, may lead to additional contract liabilities. The works of the storm water drainage at Digha has slowed down, and it is important for the SPMU and the Digha-Shankarpur Development Authority (DSDA) to ensure that the contract management issues are resolved faster and the contract is completed as per the contract milestones. Pace of implementation for the contract of the sewerage and sewage treatment plant at Digha has not improved. However, bids for the beachfront development were advertised, and it is likely that these will be awarded before March 2014. The issues related to the proposed fish auction center (and its overall scope) has been partially resolved albeit with a delay of about six months: (i) after protracted discussions, SPMU dropped the idea of nominating the Fisheries Department as the PEA instead of the Fisheries Development Corporation; but the issue of the lack the expertise of the Fisheries Development Corporation; (ii) the SPMU and the PEA prepared a revised plan incorporating in the scope pollution management aspects; however, the issue of post-construction management and transfer of assets to the fisherpersons’ cooperative remains unaddressed; and there is no formal progress in terms of the capacity building activities or on the issue of certification of the entire facility; (iii) bids could be advertised and awarded if the proposed plan receives CRZ clearance in time. For the integrated ecotourism development in the Sagar Island, the PEA and the SPMU moved forward, in November-December 2013 after a delay of four months, in preparation of the ‘asset management plan’ (even if the details of community ownership and transfer remain unclear). Once the proposals receive CRZ clearance, these bids can also be advertised and awarded. (following the World Bank’s no-objection in December 201. The award of community contracts to support livelihood activities at the Sagar Island has moved slowly since the MTR (mainly as the SPMU decided first to curtail the scope of the activities and the targets, and later decided to retain the scope and the targets). Since the MTR, not a single community contract has been awarded (all packages pending at MTR, worth INR 26 crore, remains pending). Further, the activities related to the cyclone shelters, delayed by about 12 months at MTR have experienced further delays. The plans and designs prepared by the consultants have not been found acceptable by the World Bank, and the revised plans are awaited. Overall, it is unlikely that most of the contracts which are not yet advertised (worth INR 107 crore) are unlikely to be awarded before March 2014. None of these contracts could be completed in less than 18-24 months (given the two periods of monsoon that can be expected even if the contracts are awarded by March 2014). It is improbable that any of these contracts could be completed before closing date of the project (December 2015); and in that case, the SPMU may well drop these activities from the project, and concentrate on the contracts which are already awarded and could be awarded before March 2014, so that these contracts are indeed completed within the remaining project period.

d. Sub-component (4D) Project management activities has not experienced improvement since the MTR. Activities related to financial management have been adequate. SPMU has a stronger procurement cell now; SPMU has initiated recruitment of a few short-term contract staff, and recruitment process to address the cases of staff turnover. Activities of the communication cell and stakeholder engagement activities remain slow.

E. Environmental Management

20. The implementation plans for all activities included environment management measures, and monitoring measures to ensure that the issues avoided during design do not recur. The monitoring and evaluation



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processes for priority investments include plans, and third-party audits as relevant. The environment management measures have been adequately budgeted and staff has been designated to provide the required oversight. The SPMUs and PEAs are continuing to ensure that regulatory clearance requirements, such as the CRZ clearance are addressed adequately. The SPMUs have ensured that the relevant environmental management and mitigation measures are effectively integrated in construction contracts or bidding documents such as sewerage and sewage treatment works, building construction activities, etc.

21. With regard to institutional capacity for environmental management, the NPMU and SPMUs continue to have professionals with a good level of environment awareness and experience. Areas of importance where continued focus is needed:

a. In the Gujarat State Component: (i) the supervision consultants on behalf of the Jamnagar Municipal Corporation to enforce contract provisions for appropriate shoring and/or benching for excavations, especially for deep trenches and improved debris management, (ii) the SPMU to facilitate quick preparation of documentation required for CRZ clearances for the marine Interpretation center at Mandavi and the MRCI at Dwaraka;

b. In the Odisha State Component: (i) PEAs to continue documenting the status of environmental management measures as part of quarterly progress reports; and (ii) the relevant PEAs to continue monitoring on construction sites to ensure effective construction site management;

c. In the West Bengal State Component: (i) all PEAs to provide for effective supervision and submitting timely monitoring reports with respect to the environmental management actions; (ii) CRZ clearances for Fish Auction Centre at Digha and ecotourism investments at Sagar Island are pending. Procurement of contracts for these investments shall be subject to obtaining CRZ clearance;

d. In the National Component: (i) it is important to make the communication cell effective and implementing a package of activities for larger stakeholders communicating the benefits and the processes of mapping the hazard line and the ESAs and their intended use at policy and plan levels, (ii) the Environment, Health and Safety measures followed at NCSCM construction site are noteworthy and these measures may be documented appropriately including photo documentation.

22. Some of the PEAs (or the newer staff of PEAs joining implementation) however are yet to be fully aware of the precautionary environmental measures, mitigation and monitoring measures designed as an integral part of the project activities. NPMU and SPMUs are currently taking initiatives to build awareness and capacity of PEAs. The monitoring plan agreed earlier to be implemented during December 2012, is yet to be fully integrated with the proposed web-based real time monitoring system agreed during the MTR. This is expected to be completed during April, 2014.

F. Management of Social Issues and Impacts

23. In the National Component: The plan preparation works at Dandi ESA and the activities by MSSRF at Vedaranyam continues to be implemented with adequate attention to the social issues. The revised guidelines prepared by the NCSCM for ICZM Planning mainstreams assessment of social impacts as part of the plan preparation process. The planned exposure visit to Nepal (to learn the mechanism and practices adopted by users’ groups and the CBOs for long term sustenance in the Chitwan National Park) for social development staff of SICOM, SPMUs and CBO representatives from all the three Project States is delayed, and discussions are ongoing to take this up as soon as possible.

24. The mission was pleased to note the progress made in implementation of social aspects under the project in the Gujarat and the Odisha State Components. In the Gujarat State Component: community mobilization is completed in all 160 villages. Project has ensured that women constitute fifty percent of the total members of the CBO. One of the women is the signatory in the CBO account that helps women to take decisions. So far 33 entry point activities worth INR 222 lakhs have been completed. Out of targeted 480 SHGs (3 SHGs per village), 468 SHGs have been formed in the project villages and another 12 SHGs are under the process of



15

formation. PRA exercise has been completed for 159 villages. For all community groups, diverse and several capacity-building activities and training were organized. Several capacity building initiatives have been taken by SPMU including orientation / exposure visits for CBOs and EDCs and skill enhancement and administrative training for SHGs. Since September 2013, SPMU has initiated media monitoring on coastal ecology and environment related news. So far SPMU has tracked 448 news articles.

25. In the Orissa State Component: the community mobilization activities had progressed very well. Of the 600 SHGs involved in fish-based livelihood enhancement activities, skill-upgrading training has been provided to 598 SHGs at the village level, and to 294 of them at the national level. However, the formation of CBOs for ecotourism activities around the Chilika and Tampara lakes has been considerably delayed and consequently the special training on ecotourism and hospitality management for the villagers of the Tampara Lake too has been delayed. Of the 40 SHGs involved in coir-based livelihood enhancement, training program has been completed for 37 SHGs. All 40 artisans trained for construction of traditional temples have been absorbed by the Department of Culture on contractual basis, and some of them are working on the project. The Department of Culture has conducted community consultations in each of the heritage sites that will be conserved and improved under the project, and management committees have been formed (who have already generating revenues for solid waste management around the conservation sites). The Department of Fisheries has progressed very satisfactorily in convergence, including tie-ups with (i) a general insurance scheme and has enrolled all SHG members; (ii) provided Matsya Credit Card to the fisher households; (iii) the Department of Horticulture for provision of sapling for plantation of fruit bearing vegetables, plants; and training on horticulture; (iv) the Department of Urban Development for construction of approach roads and internal roads to the sites of project activities; (v) the Department of Energy for provision of electricity to the market complex at Gopalpur; (v) the Department of Revenue for provision of land for establishment of business units; (vi) the Department of Rural Water and Sanitation for provision of toilets; (vii) an NGO (Gram Vikash) for provision of water supply bore wells and overhead tanks to individual SHGs; and (viii) another NGO (the United Artists Association) to assist in marketing of dry fish and for value chain reinforcement. The land issue at the Kalijai Temple Island has been resolved. The legal issue (of vacating an earlier litigation at the High Court) for the landfill site at Paradip has now been finally resolved, with the High Court vacating the litigation.

26. The mission did not visit the sites of the West Bengal State Component. However, based on earlier technical visits, it appears that the SPMU has taken care of the issue of third-party damages (mostly boundary walls of private properties, public water supply pipes) caused by laying of the drainage works (and potentially in the upcoming sewer works) in Digha. The SPMU and DSDA notified the contractors that all such damages will be made good by the contractors, and the final payments will not be made unless DSDA confirms that all damages have been repaired.

G. Procurement

27. There was fairly satisfactory progress in hiring consultants; awarding major works and initiating goods procurement (see Annex 4). In the procurement of goods, a number of bids that were advertised did not receive responses and were subjected to rebidding, causing considerable delay in award or disbursement. Procurement capacity that had been augmented in line with earlier demands has been sustained. Further, a number of contracts are ready for award, but could not be awarded as awarding these will breach the GoI approved cost ceiling of the project (these can be awarded only after SICOM receives approval on the estimate of increased project cost).

28. Overall, a total of 196 activities (worth INR 432 crore as per bid prices, much higher than the estimated cost of INR 257 crore) remain to be awarded. Of these 48 contracts (worth INR 187 crore) is ready for award; and another 32 contracts (worth INR 89 crore) could be expected to be awarded by March 2014. However, a remaining 84 contracts (worth INR 146 crore) are unlikely to be awarded before March 2013, and many of these will probably need to be dropped from the project. This list of 84 contracts is made up of 26 goods, 20 works, 28 consultancies and 10 community contract packages. Fourteen out of these contracts are prior



16

review. Preparation of bidding documents on the for the marine oceanarium and research center to be developed on a public-private partnership model, is in progress and is expected to be awarded by June 2014. The notable achievements are the following:

a. As per the procurement plan approved in May 2013, there are a total of 706 activities valued at INR 1173 crore. Of these, 254 contracts (worth INR 121crore) have been completed by January 2014; and another 207 contracts are at various stages of completion.

b. Of the 183 works contracts, 105 worth INR 486 crore have been awarded by January 31, 2014 and 29 of these valued at INR 46 crore have been completed. The remaining ones – all small and post review contracts include a few ecotourism contracts in Odisha and Gujarat; similar but larger number of contracts in West Bengal – all expected to be awarded by the end of March 2014 (except in West Bengal). Of the 328 goods contracts, 258 contracts are awarded (value INR 146 crore), of these 190 have been completed. The remaining goods contracts (except in West Bengal) are scheduled to be awarded by the end of March 2014.

29. In spite of these modest achievements in procurement, disbursement is still slow (currently about US$50 million, based on the project’s total expenditure of INR 330 crore). This is expected to increase rapidly in the next six months, judging from the status of procurement.

30. The mission noted and agreed the exception of March 31st target for 29 contracts (2 works – one each in the national and the Gujarat state component; 18 consultancies across the components, and 9 community contracts – 8 in the national component and 1 in West Bengal state component) which were agreed earlier to be exempt from the requirement. There is a greater need to monitor the procurement closely to ensure that not only there is no slippage in the planned activities, but contract milestones are also to be closely monitored from now. These will ensure sufficient time being available for delivery of the contracted goods, works and services before the closing date of the project.

31. The Procurement Manual for the Project dated April 29, 2010 was revised in September 2013 mainly to reflect the application of Bank Procurement Guidelines 2011, in specific to reflect the agreement during the Fourth Implementation Support Mission to use force account procurement of satellite images, and the agreement during MTR with respect to the revised procurement thresholds. The Procurement Thresholds for the Project were defined in the Procurement Manual for the India ICZM Project dated April 29, 2010. Subsequently, the Procurement Thresholds were revised. The latest revisions in the Procurement thresholds (dated June 13, 2013) have been incorporated in the Revised Procurement Manual (dated September 2013).

32. The project is expected to submit a Revised Procurement Plan by October 2013 for clearance by the Bank. A revised Procurement Plan was prepared in November 2013, but this has not yet received approval from the GC of SICOM (owing to the issue of cost increase). Once the revised and increased cost of the project is approved, it is expected that the Revised Procurement Plan will also be quickly approved, and submitted to the World Bank for clearance.

33. The agreed details with respect to procurement management are in Annex 4, and supplementary disbursement related details as well as information on the progress made in procurement during July 2013 to January 2014 are available in Annex 5.

H. Financial Management

34. The overall accounting systems in SICOM and the project states of Gujarat, Odisha and West Bengal continue to work well. The project has submitting timely monthly IUFRs and has submitted the audit report also before the due date. In terms of accounting and reporting the project has done well. Most of the actions agreed in the last implementation review mission have been completed by SPMUs and NPMU. The mission recognizes the issue faced by SICOM and SPMUs in getting further releases from Finance Department (FD) due to less spending and non-submission of UC for the earlier budget released. Based on the above facts and review the FM rating is retained as Moderately Satisfactory (MS). The agreed actions for the project are



17

summarized in the FM annex. If these agreed actions are completed in the next mission, the rating of the project could be considered for an up gradation.

35. This year budget provision has been made for all SPMUs except West Bengal. In West Bengal no amount has been received this year, while in Gujarat only 50% of the budgeted amount has been drawn, leading to partial compliance to the budget legal covenant (i.e., budget has been allocated, but funds were not transferred due to low level expenditure and availability of cash balance from earlier years). All other financial covenants have been met by the project. The mission appreciated that SICOM and the SPMUs are unlikely to get further releases from finance departments due to low spending and non-submission of utilization certificates against the earlier budget released; and the only option for them is to improve expenditure and disbursement situations.

36. Staffing of the financial management cells at SICOM, the national level PEAs, the SPMUs, and the state level PEAs are as per agreed staffing pattern and plan. NCSCM has recruited a manager for the finance wing, but needs to urgently fill the position of the head of finance. SICOM and SPMU’s should provide refresher training to PEAs.

37. The internal audit contracts have been renewed for the next financial year (with some of their scope redefined). There has been improvement, but there are still delays of at least one quarter in submission of internal audit reports. The mission reiterated that internal audit reports should be submitted timely; and compliance to the finding of the internal audits will also need to be quick. The audit committees, in spite of the agreement reached during the MTR, are not meeting as frequently as. It was agreed that the NPMU will design and implement, by March 2013, a format to capture both qualitative and quantitative issues that arise from the internal audits, and monitor them on a regular basis.

38. The project has submitted the external audit report and audited accounts for Financial Year 2012-13, well in time, in September 2013. The World Bank has accepted the said external audit report and audited accounts for Financial Year 2012-13.

39. The contract for the external auditor is being extended for Financial Year 2013-14. This extension process needs to be completed before March 2014. The SICOM also needs to start the process of hiring an external auditor for the Financial Year 2014-15, and this process needs to be concluded before September 2014. Statutory audit for the NCSCM, as an independent entity is needed for the entire period since its initiation in 2011-12 (although internal audits of SICOM and the external audit for the project covered all income and expenditure by NCSCM – as NCSCM did not receive any money except from SICOM for the purpose of this project); and NCSCM agreed to quickly appoint an external auditor as per the applicable regulations. SICOM also agreed to help the NCSCM in identifying such an external auditor, and ensure that the audit backlog addressed at the earliest.

40. See Annex 3 for detailed discussions on financial management processes and systems in the project.

I. Revised Project Cost, Potential Utilization of IDA Credit and need for Cancellation

41. As per the estimates available at the time of the mission, the project cost, in INR terms, will be much higher than what was approved internally by the GOI (Expenditure Finance Committee, EFC and the Cabinet Committee on Economic Affairs, CCEA).

42. Following are the summary of the estimates of project cost (which is being examined by the GC of SICOM and the MoEF):



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Table 3: Current Estimate of Project Cost (and Increase over Original Estimate)5

Component Originally Approved Ceiling Current Estimate of Project Cost

As per MoEF Estimate (INR Crore, 2009 Prices)

Total Cost (as per Project

Agreement) (April 2010 Exchange Rate)

Total Cost (Current Prices, INR Crore)

Total Cost (Current Prices, US$ m)

Increase (%)INR Total Cost (Base Cost)

Increase (%) in Total Cost in US$ m

Base Cost Approved by EFC/CCEA

Contingency

INR Crore US$ m

National Component

355.41 50.72 406.13 87.3 516.24 83.3 27.1 % (45.3 %)

- 4.6 %

Gujarat Component

298.34 48.52 346.86 74.1 416.39 67.2 20.0 % (39.6 %)

- 9.4 %

Odisha Component

201.62 29.60 231.22 49.3 444.53 71.7 92.3 % (120.5%)

45.4 %

W. Bengal Component

300.27 50.73 350.99 75.0 391.36 63.1 12.1 % (31.2 %)

-15.8 %

Total Project

1155.64 179.57 1335.52 285.7 1786.54 285.2 32.7 % (53.3 %)

- 0.16%

43. It is to be noted that the estimates for the Odisha State Component includes a few items of additional work, where the need has arisen after the Cyclone Phailin6. These include 15 additional cyclone shelters, additional plantation of mangroves and coastal shelterbelt. Separately, Odisha wants to include the solid waste management activity for the coastal town of Puri. Gujarat also plans to expand the mangrove plantation target by an additional 3,000ha. Otherwise, most of the increase in the cost of the project is due to (a) inflation; (ii) excess bid premium received and accepted as part of the open competitive bidding procedures; (iii) instances of under-estimation7 in a few cases at the time of project preparation, and (iv) devaluation of the Indian Rupee against most major foreign currency, which impacted procurement of good and equipment which are not manufactured (and only supplied) in India.

44. The Indian Rupee to US$ exchange rate has also undergone a rapid change since approval of the project (it was 1US$=INR44.37 in April 2010, went to 1US$=INR68 in 2013, and now is about 1US$=INR62 ). Therefore, the increase of estimate of project cost in INR is not reflected in US$ terms. Even if the above estimate, in its whole, is approved by EFC/CCEA, the project size in US$ terms will remain at US$285.7 million. Consequently, the IDA credit will also remain at US$221.96 million).

5 Note: (1) The estimate of base cost and contingency was prepared by MoEF using 2009 prices. The estimate of base cost was submitted to EFC/CCEA for approval. (2) Total cost is estimated now at 2013 price levels, indicating that there might be further requirement of contingency to cover for inflation during the remaining project period; (3) The estimate of total cost in US$ might experience slight changes due to fluctuation in currency exchange rates, and based on the exchange rate of amount already disbursed versus remaining disbursements.

6 This is as per the discussions between the Government of Odisha and the DEA.

7 Some of these instances of underestimation were known throughout the project preparation and implementation. Several PEAs are bound to use the “schedule of rates” knowing fully well that these “schedules of rates” do not correspond to the market prices, or even do not reflect the steep increase in the cost of labour in the past few years.



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45. While MoEF expressed the need for additional project cost considering the estimated cost presented in table 3 above, and cancellation was not indicated. MoEF and SICOM GC are now examining the revised estimates of the revised project cost estimates are yet to be finalized. As part of this exercise, MoEF will examine the realism in the estimates in expenditure in the project (and consequent disbursement) by December 2014 and June 2015.

46. Upon finalization of revised costs, MOEF will solicit EFC/CCEA approval. The mission requested SICOM to inform the World Bank about the final revised estimates forwarded for consideration by the EFC/CCEA. It is agreed that MoEF will ensure that the proposals for EFC/CCEA approval is submitted by early March 2014.

J. Agreed Next Steps and Mission

47. The next implementation support mission will be held in May-June 2014. It is proposed that it will be a joint mission, with official from SICOM and each of the Project States participating in site visits and discussions in other Project States and for the national component. It is expected that the evaluation consultants (expected to be procured by March 2014) will also form part of the mission team.

48. Following is a list of major agreed actions required from the national and the state project management units (or the MoEF and the State Governments, as applicable) to be undertaken and completed within the next six months, several of them had already been agreed at MTR but have not been completed. A number of other issues were discussed and actions agreed during the MTR mission. See Annex 6 for a full list of all agreed actions.

Main Issues Agreements on Next Step Responsibility Due Date

(Due date as of MTR)

Ov

era

ll P

roje

ct

Slow Disbursement: Current disbursement remains lower than originally anticipated (US$49 m compared to US$114 m anticipated at approval of the project). It is important to achieve disbursement of US$44 m for FY14 including US$15.7 m during January-March 2014, and US$ 18.4 m during April-June 2014. The FY15 estimate of disbursement is US$54 m at minimum and US$70 m desired.

Budget: MoEF will (i) as far as possible, provide a budget of INR 41 crore to make payment against the contract commitments for the month of March 2014; (ii) ensure that an amount of INR140 crore is available to SICOM during April-June 2014; (iii) ensure that a total budget provision of INR 450 crore or more is made in the budget of 2014-15.

MoEF and SICOM

April 01, 2014

June 30, 2014

Expenditure in Q3 and Q4 of FY14: SICOM, the SPMUs and the PEAs will need to ensure total expenditure of INR 80 crore during January-March 2014, and 140 crore during April-June 2014.

SICOM and All SPMUs

March 15, 2014 and June 30, 2014

SICOM will submit an IUFR covering the period up to March 15, 2014 by March 20, 2014. The submission of monthly IUFR will continue.

SICOM and All SPMUs

March 15-20, 2014

Expenditure in FY15: The annual action plans will aim to spend INR 450 crore during FY2015. SICOM and SPMUs will ensure that monthly monitoring is done and no slag results.

SICOM and All SPMUs

Monthly during April 14 – March 15

Revision of Procurement Plan. Owing to the uncertainty of the cost ceiling for the project, the revised Procurement Plan prepared

SICOM will ensure that, other than for exceptions already listed, no award should be made for all items listed in the approved Procurement Plan (dated May 2013) after March 31, 2014.

SICOM March 31, 2014



20



in November 2013 remains unapproved by the GC of SICOM.

After receiving approval on the revised project cost from MoEF/EFC/CCEA, or based on the MoEF cleared revised cost estimate, the GC of SICOM will approve the Revised Procurement Plan.

SICOM April 01, 2014

While approving the Revised Procurement Plan, SICOM will ensure that for each contract not awarded by March 31, 2014, the following additional safeguards are incorporated:

• Implementation of these activities should be completed by September 2015.

• Activities should include provisions for AMC/CMC, and all operation and maintenance cost including AMC/CMC should be paid by the States/PEAs outside the project budget.

• States/PEAs to guarantee that payment for all contracts (if not finished by September 2015) that cannot be claimed before December 2015 will be made by the State/PEA.

SICOM, SPMUs

April 01, 2014

The revised Procurement Plan will be submitted to the World Bank for no-objection.


Increased Project Cost: MoEF and NPMU to finalize the estimate of revised project cost and submit for approval of the Expenditure Finance Committee and the Cabinet Committee on Economic Affairs.

Approval for Revised Project Cost: MoEF and SICOM GC will ensure that SICOM submits a proposal for EFC/CCEA approval in early March 2014 to receive approval of the revised cost of the project.

MoEF and SICOM

March 10, 2014

SICOM will inform the World Bank about the revised cost estimate submitted for EFC/CCEA approval.


Based on the revised estimate submitted for EFC/CCEA approval, SICOM will provide break up of cost estimates under different components

SICOM and World Bank

March 31, 2014

Co

mp

on

ent

1:

Na

tio

na

l C

om

po

nen

t

Slow Progress of major knowledge and capacity-building activities: The photogrammetry contracts managed by the Survey of India experienced very slow initiation threatening the inputs for ICZM planning. Research proposals for national partner institutions of NCSCM are inordinately delayed. Revised

Survey of India to ensure that, with respect to the photogrammetry contracts: (i) the current pilot work is completed by March 2014, (ii) for the identified areas of ICZM planning, the composite hazard line should be available by June 2014, and (iii) the entire mapping of composite hazard line should be completed by June 2015. NCSCM to ensure that the erosion estimates for the entire country is completed and available as input to the Survey of India by June 2014.

SICOM, Survey of India and NCSCM

June 30, 2014



21



national capacity building plan is not finalized and approved yet.

SICOM to ensure that the revised national capacity building plan is approved and implementation of the same starts.


NCSCM to release, immediately, funds to the national partner institutions, as per current approval, and agree on the revised delivery schedule.

NCSCM March 31, 2014

NCSCM to submit the second round of research proposals for HPSC approval

NCSCM June 15, 2014

Communication, Monitoring and Evaluation processes need augmentation. Implementation of the web-based real-time monitoring, recruitment of a suitable evaluation team is delayed, and must be completed.

[same as MTR] - The entire communication cell is defunct. At least 2 more staff including a head of communication cell should be appointed in time to ensure effective communication campaign before the first outputs of hazard mapping comes in.

SICOM May 31, 2014 (MTR=August 31, 2013)

[same as MTR] - HR systems including performance appraisal processes should be established.

SICOM March 31, 2014 (MTR=September 30, 2013)

[same as MTR] - Full operation a full-fledged web-based project monitoring system (after testing is complete in March 2014). All PEAs and SPMUs to be provided hands on training on this.

SICOM April 30, 2014 (MTR=August 31, 2013)

[same as MTR] - Procurement of the Evaluation Consultants to be completed by March 2014 (the first Evaluation Report should be available by September 2014).

SICOM March 31, 2014 (MTR=August 31, 2013)

Co

mp

on

ent

2:

Gu

jara

t S

tate

Co

mp

on

ent

Slow Expenditure; completing procurement; and efficient contract management. Contract management needs to be strengthened in light of delay in the contracts for sewerage.

SPMU and PEAs to ensure that contract milestones are achieved without further delay. This will include discussion with all PEAs to improve contract management (especially when large works contracts are involved), and preparing a plan to avoid time and cost overrun.

SPMU and all PEAs

Monthly –December 31, 2014

[same as MTR] - Finalize and advertise bidding documents (with expert inputs as needed) for the MRCI

SPMU March 31, 2014 (MTR=August 31, 2013)

With respect to the large contracts, especially the sewage treatment plant at Jamnagar, ensure that contractors do not delay, and impose contract conditions as required.

SPMU (and PEAs)

March 31, 2014

ICZM Plan: Support consultants are being selected (delayed since 2013 due to rebidding). The plan preparation process needs to be accelerated.

[same as MTR] - Support consultants will be selected and be in place at the soonest.

SPMU March 31, 2014 (MTR=September 30, 2013)



22



[same as MTR] - With help from the support consultants, a detailed schedule of plan preparation (including stakeholder engagement and specific studies) will be prepared and shared.

SPMU May 31, 2014 (MTR=September 30, 2013)

Co

mp

on

ent

3:

Od

ish

a S

tate

Co

mp

on

ent

Slow Expenditure; completing procurement; and efficient contract management: Contract management needs to be strengthened to avoid future delays.

SPMU with help of the State Steering Committee will resolve the issue of delay at the PEA levels in issuing clear directions to contractors for large contracts, such as the installation of geo-tube at Pentha.

SPMU March 31, 2014

[same as MTR] - Discussion with all PEAs to improve contract management (especially when large works contracts are involved), and preparing a plan to avoid time and cost overrun.

SPMU (and PEAs)

April 30, 2014 (MTR=September 30, 2013)

ICZM Plan: Draft ToRs are available. Scope of work for preparation of shoreline management plans has been prepared. The plan preparation process needs to be accelerated.

[same as MTR] - A detailed schedule of plan preparation (including stakeholder engagement and specific studies) will be prepared and shared.

SPMU March 31, 2014 (MTR=September 30, 2013)

[same as MTR] - Selection of specialized consultants now should be completed at the earliest.

SPMU May 31, 2013 (MTR=October 31, 2013)

Co

mp

on

ent

4:

Wes

t B

eng

al

Sta

te C

om

po

nen

t

Slow Expenditure; completing procurement; and efficient contract management: A major concern is the relative lack of completion of procurement. It will be a challenge to complete the scheduled procurement by March 2014 (or even afterwards).

Contract management needs to be strengthened in light of delay in the contracts for sewerage, drainage and electricity distribution.

Monitoring and ensuring that the planned procurement including award of community contracts. Contracts where bids have not been advertised by February 2014 (and cannot be awarded before June 2014 now) should be dropped for all cases, where the contract period is over 12 months.

SPMU and all PEAs

March 31, 2014

[same as MTR] - Whenever the progress of procurement is not sufficient to achieve the target above, all procurement will be cancelled and the activities dropped from the project. This is especially with respect to the activities where large procurement is remaining. The PEAs involved specifically are the Department of Disaster Management, Department of Fisheries (or the Fisheries Development Corporation), the ZSI, the Sundarban Infrastructure Development Corporation.

SPMU (and PEAs)

March 15, 2014 (MTR=December 31, 2013)

No contract will be advertised with respect to the physical works (such as buildings in the coast) until the required CRZ clearance is available.

SPMU Regular

Prepare monthly expenditure projections for FY14-15, and submit to SICOM; and ensure performance on expenditure as per the projections.

SPMU April 14, 2014



23



With respect to the planned cyclone shelters, where plans, designs and BoQ are not yet ready (and has not been cleared by World Bank) should be revised and submitted for clearance of the World Bank 9as per discussion with the ICZM and the NCRMP task teams from the World Bank). If these cannot be implemented as part of the ICZM Project (as the time remaining before close of the project will not permit completion), these could be taken up under the NCRM project.

SPMU (and PEA – Disaster Management Department)

March 31, 2014

The known variation order for the contract for electrification at Sagar Island is now delayed by over 18 months. Needs to be submitted immediately.

SPMU (and PEA - WBSEDCL)

March 15, 2014

[same as MTR] - Discussion with all PEAs to improve contract management (especially the large works contracts – sewerage at Digha, drainage at Digha, electrification at Sagar Island), and preparing a plan to avoid time and cost overrun.

SPMU (and PEAs)

April 30, 2014 (MTR=September 30, 2013)

Knowledge and capacity Building Activities. There has not been any progress for about a year on these. These are critical for achieving objectives of the Project.

SPMU will need to prepare and share with SICOM and World Bank alternative plans (as it is clear that the activities and plans originally proposed by the State are not of interest to the State/SPMU). The plans should indicate how SPMU/State will achieve the project objectives of improvement of knowledge and improved capacity of the State for integrated management of the coastal and marine areas.

SPMU June 15, 2014

ICZM Plan: No progress since the MTR. The plan preparation process now needs to be initiated.

[same as MTR] - A detailed schedule of plan preparation (including stakeholder engagement and specific studies) will be prepared and shared.

SPMU April 30, 2014 (MTR=September 30, 2013)

[same as MTR] - Procurement of specialized consultants, if planned should be initiated.

SPMU May 30, 2014 (MTR=October 31, 2013)

49. The following annexes are part of this aide memoire.

Annex 1 - List of Officials and Resource Persons met during the Mission

Annex 2 - Management of Social Safeguards and Social Development Processes

Annex 3 - Financial Management Systems and Performance

Annex 4 - Procurement Management Systems and Performance

Annex 5 - Disbursement Performance and Procurement Schedule

Annex 6 - Detailed List of Agreed Actions

Annex 7 - Activity-wise Progress of reaching Beneficiaries in the Project

Annex 1

List of Officials and Resource Persons met during the Mission

24

Government of India and Stakeholders for the National Component

1. Dr. V. Rajagopalan, Secretary, Ministry of Environment and Forests

2. Mr. Shashi Shekhar, Additional Secretary, Ministry of Environment and Forests

3. Ms. Vandana Agarwal, Economic Advisor, Ministry of Environment and Forests

4. Prof. M.S. Swaminathan, Founder, MSSRF

5. Dr. Harapanahalli, National Project Director, SICOM

6. Dr. A. Senthilvel, Additional National Project Director, SICOM

7. Mr. Pushkal Upadhyay, Finance Director, SICOM

8. Dr. Swarna Subba Rao, Surveyor General of India

9. Major General M. Mohan, Project Director, Survey of India

10. Mr. S. K. Sinha, Deputy Surveyor General of India

11. Dr. Ajay Parida, Executive Director, MSSRF, Chennai

12. Dr. V. Selvam, Program Director, Coastal Systems Research, MSSRF, Chennai

13. Dr. R. Ramesh, Director, NCSCM

14. Dr. Purvaja Ramachandran, Scientist G & Division Chair, FTR Division, NCSCM

15. Dr. Ramachandra Bhatta, Scientist G & Division Chair, ISE Division, NCSCM

16. Dr. B. R. Subramaniam, Senior Scientific Consultant, NCSCM

17. Dr. Chitra K, Scientific Consultant, NCSCM

18. Dr. Chandramohan D, Senior Scientific Consultant, NCSCM

19. Dr. Kannan V, Scientific Consultant, NCSCM

20. Mr. Akash Sharma, Finance Officer, SICOM

21. Dr. Anjali Samal, Sociologist, SICOM

22. Mr. V S Krishnan, Procurement Officer, SICOM

23. Dr. D. Asir Ramesh, Scientist-E, NCSCM (and Senior Specialist at SICOM)

24. Dr. Veera Narayanan, Geologist, RS & GIS Specialist, SICOM

25. Dr. V. Pradeep, Economist, SICOM

26. Mr. Vinod K. Sharma, Public Relations Officer, SICOM

27. Dr. Shailesh.K. Dodia, Marine Biologist, SICOM

28. Mr. K.K. Malhotra, Procurement Consultant, SICOM

29. Mr. Sumeet Singh, Team Leader, PFM Support Consultant, SICOM

30. Dr. Sridhar R, Scientist E, IIM Division, NCSCM

31. Dr. Ajay Kumar Ray, Scientist E, CIA Division, NCSCM

32. Dr. Rajakumari S, Scientist E, GEO Division, NCSCM

33. Dr. Krishnan Pandian, Scientist E, CMR Division, NCSCM

34. Dr. Deepak Samuel V, Scientist D, CMR Division, NCSCM

35. Dr. Badarees K O, Scientist D, GEO Division, NCSCM

36. Dr. Gejo Anna G, Scientist D, GEO Division, NCSCM

37. Dr. Gurmeet Singh, Scientist C, FTR Division, NCSCM

38. Dr. Robin R.S, Scientist C, CMR Division, NCSCM

39. Dr. Dipnarayan Ganguly, Scientist C, FTR Division, NCSCM

40. Mr. Abhilash KR, Scientist C, CMR Division, NCSCM

41. Ms. Yogeshwari S, Scientist C, CIA Division, NCSCM

42. Mr. Muruganandam R, Scientist C, GEO Division, NCSCM

43. Mr. Debasis Tudu, Scientist C, CIA Division, NCSCM


Annex 1 to Aide Mémoire: Sixth Implementation Review Mission, January 30 – February 20, 2014

25

44. Ms. Mary Diviya Suganya G, Scientist C, GEO Division, NCSCM

45. Mr. Sachithanandam V, Scientist C, IIM Division, NCSCM

46. Mr. Sreeraj Chemmencheri Ramakrishnan, Scientist C, IIM Division, NCSCM

47. Mr. Subba Reddy Bonthu, Scientific Consultant, NCSCM

48. Mr. Saravanan Umapathy, Scientist B, CIA Division, NCSCM

49. Dr. Sarunjith KJ, Scientist B, GEO Division, NCSCM

50. Dr. Paneer Selvam A, Scientist B, FTR Division, NCSCM

51. Ms. Madhumitha Rajakanthan, Scientist B, GEO Division, NCSCM

52. Dr. Kakolee Banerjee, Scientist B, FTR Division, NCSCM

53. Dr. Shesdev Patro, Scientist B, CMR Division, NCSCM

54. Dr. Sankar R, Scientist B, CIA Division, NCSCM

55. Mr. Mageswaran T, Scientist B, IIM Division, NCSCM

56. Ms. Priya P, Scientist B, ISE Division, NCSCM

57. Ms. Deepika B, Scientist B, GEO Division, NCSCM

58. Mr. Manik Mahapatra, Scientist B, IIM Division, NCSCM

59. Mr. Sathishkumar S, Application Engineer, NCSCM

60. Ms. Ramya Sivagnanam, Junior Application Engineer, NCSCM

61. Mr. Madhava Rao Chennupati, Junior Software Engineer, NCSCM

62. Ms. Sathiyabama VP, Project Scientist – I, NCSCM

63. Ms. Thulasi Bai PD, Project Scientist – I, NCSCM

64. Mr. Rajaram P, Project Associate – II, NCSCM

65. Mr. Manodheepan KK, Project Associate – II, NCSCM

66. Mr. Arun Bharath Muthaiah M, Project Associate – II, NCSCM

67. Mr. Kumaran E, Project Associate – II, NCSCM

68. Ms. Sundari S, Project Associate – I, NCSCM

69. Ms. Mahalakshmi N, Project Associate – I, NCSCM

70. Mr. Arumugam T, Project Associate – I, NCSCM

71. Mr. Hariharan G, Project Scientist – I, NCSCM

72. Mr. Mohanraj C, Project Assistant, NCSCM

73. Mr. Naren P, Project Scientist – II, NCSCM

74. Mr. Prasun Sanyal, Project Assistant, NCSCM

75. Mr. Parthiban C, Project Assistant, NCSCM

76. Ms. K. Chamundeeswari, Project Assistant, NCSCM

77. Mr. V. Sekar, Project Assistant, NCSCM

78. Mr. N. Karthi, Project Assistant, NCSCM

Government of Gujarat and Stakeholders in Gujarat

1. Mr. A. K. Das, Principal Secretary, Forest & Environment Department

2. Mr. A. K. Verma, Member Secretary GEC, State Project Director, SPMU

3. Mr. A C Sampat, Additional Project Director, SPMU

4. Mr. Hardik Shah, Director (Environment), Government of Gujarat

5. Mr. D. K. Sharma, Chief Conservator of Forest, Kutch Forest Circle

6. Mr. R. D. Kamboj, Chief Conservator of Forest, Marine National Park, Jamnagar

7. Mr. Bharat Pathak, Director, Gujarat Ecological Education & Research (GEER) Foundation

8. Mr. K C Mistry, Nodal Officer, GPCB

9. Mr. Nischal Joshi, Head of Operation, Gujarat Ecology Commission



26

10. Mr. Lomesh Bhrambhatt, Field Manager, Gujarat Ecology Commission

11. Mr. Ishwar Desai, Social Scientist, Gujarat Ecology Commission

12. Ms. Krupa Jha, Botanist, Gujarat Ecology Commission

13. Mr. Ankur Patel, Botanist, Gujarat Ecology Commission

14. Mr. Rohit Pansare, Environmental Planner, Gujarat Ecology Commission

15. Mr. Manish Dohre, Manger Projects, Gujarat Ecology Commission

16. Mr. Mr. B.J.Vasavda, Procurement Consultant, Gujarat Ecology Commission

17. Mr. S.P.Patel, Dy Director, Gujarat Ecological Education & Research (GEER) Foundation

18. Mr. B B Rabari, Deputy Director, GEER Foundation

19. Mr. Dishant Parasharya, Project Coordinator-Coral & Coral Reef, GEER Foundation

20. Dr. Harshad Salvi, Scientist, Gujarat Ecological Education & Research (GEER) Foundation

21. Mr. K.C. Mistry, Nodal Officer, Senior Scientist, Gujarat Pollution Control Board (GPCB)

22. Mr. Ajay Patel, Project Manager, BISAG

23. Mr. Jaydeep Singh, Project Scientist, BISAG

24. Mr. Sumit Prajapati, Project Scientist, BISAG

25. Mr. Bhagitath Kansara, Project Scientist, BISAG

26. Mr. Bharat Pathak, Director, GEER Foundation

27. Ms. Sajitha Charles, Communication Expert, SPMU

28. Ms. Riddhima Mehata, Documentation Expert, SPMU

29. Ms. Rachana Mehata, Account Officer, SPMU

30. Ms. Bhumika Vaghela, Technical Assistant, SPMU

31. Dr. Marimuthu, Marine Ecologist, SPMU

32. Dr. Kajal Singh, Ecologist, SPMU

33. Mr. Mrunal Bhojak, Project Executive, SPMU

34. Ms. Himala Joshi, Project Executive, SPMU

35. Mr. Naveed Dadhan, Consultant, SPMU

36. Mr. Vikaram Singh, Manager, GEER Foundation

37. Mr. M M Bhalodi, Deputy Conservator of Forests, MNP & S

38. Mr. Vipul, Account Assistant, MNP & S

39. Mr. Yougesh Kumar, Scientist, ZSI

40. Mr. Anand Prakash, M & E Specialist, SPMU

41. Mr. Jitendra Mehata, Capacity Building Expert, SPMU

42. Mr. Ravi Upadhyay, GIS Expert, SPMU

43. Mr. Ajay Patel, Project Manager, BISAG

44. Mr. Vijay Singh, Project Manager, BISAG

45. Mr. M D Chatrala, Exe. Engineer, JMC

46. Mr. Pradeep Kumar, Team Leader, PMC, JMC

47. Mr. M Badhrecha, Technical Officer, GPCB

48. Mr. Swomya Prakash, Social Scientist, GEC

Government of Odisha and Stakeholders in Odisha

1. Mr. J.K Mahapatra , Development Commissioner and Additional Chief Secretary (Finance), Govt of Odisha

2. Mr. R.K Sharma, Commissioner cum Secretary, Forest & Environment Dept, Govt. of Odisha

3. Dr. Ajit Kumar Pattnaik, Project Director, ICZMP- Odisha

4. Mr B.K Samal, APD (F & A), ICZMP- Odisha



27

5. Mr. Dinakar, APD (Operations), ICZMP- Odisha

6. Mr. Manoj Mohanty, Procurement Officer, ICZMP, Odisha

7. Mr. Chitta Ranjan Mishra, Addl. Chief Executive, Chilika Development Authority

8. Dr. D.K. Rout, Nodal Officer, OSPCB

9. Mr J.K. Das, Sr. DMBD-II, OTDC

10. Mr. B.K. Das, Additional Director, DH & CI

11. Mr. P.K. Nanda, Coir Supervisor, DH&CI

12. Mr J.K. Tripathy, Executive Engineer, Aul Embankment Division ,Water Resources Dept,

13. Mr. A.C. Naik, Addl. Director, Fisheries& ARD Dept, Govt. of Odisha

14. Mr. S.K. Das, Nodal Officer Culture Department, GoO

15. Mr B.K. Das, Nodal Officer, DH & CI, GoO

16. Dr. R.K. Nayak, Executive Officer, Paradeep Municipality

17. Mr.P.K. Swain, CWLD, Balugaon

18. Dr. A.K. Sahu, Ecologist, ICZMP, Odisha

19. Dr. Debasish Roy, Sr. Scientist, Forest & Env, Dept., GoO

20. Dr. Mamata Mishra, RD Expert, ICZMP, Odisha

21. Dr. N.C. Biswal, Fishery Specialist, ICZMP, Odisha

22. Dr. S.S. Pati, STA, OSPCB

23. Ms Manaswini Mishra, Documentation Officer, ICZMP, Odisha

24. Mr. Biswajit Sahoo, Communication Officer, ICZMP, Odisha

25. Mr. Binayak Padhy, MIS Expert, ICZMP, Odisha

26. Ms Swapnadatta Mohanty, Architect, M/s. Nesters

27. Mr. Narayan Tripathy, Architect, M/s. Nesters

28. Mr.Deepak Panda, Architects’ Studio

Government of West Bengal (at meetings organized by the NPMU) 1. Mr. Trilochan Singh, Additional Chief Secretary, Environment Department

2. Dr. Subrat Mukherjee, State Project Director

3. Mr. Rohit Tiwary, State Additional Project Director

Annex 2

Management of Social Safeguards and Social Development

Processes

28

National Component

1. ICZM Plan: The NCSCM has prepared draft guidelines for preparation of ICZM plans describing a 5-stage process, and has finalized the guidelines after rounds of stakeholder consultation (in October 2013). These guidelines will be used for preparation of ICZM plans in the Project States (and elsewhere in India). The draft guidelines incorporate revolving multi-stakeholder consultation processes, an assessment of stakeholders (from an aim to determine who will be positively affected and who could potentially be negatively affected). The draft guidelines propose that all stakeholders among the coastal communities who could be negatively affected be consulted, in particular, during preparation of the sub-plans. As agreed during the MTR, the NCSCM has considered specifying a process step during the 4th stage (Plan Integration Stage) where a social impact assessment of each of the sub-plans will be undertaken, and the final integrated plan will consolidate not only the Sub-Plans but also the actions required to mitigate all negative social impacts.

2. Overall exposure on community-based activities for long-term sustenance: During MTR it was agreed that NPMU will arrange for exposure visit to Nepal for social development staff of NPMU and SPMUs and CBO representatives from all the three states. The social development staff and CBO representatives will interact with (i) forest user’s group in the Chitwan National Park; and (ii) CBOs formed under World Bank funded Poverty Alleviation Fund project. The objective of exposure visit is to understand the mechanism and practice adopted by users groups and CBOs for long term sustenance. This visit is delayed, and SICOM has agreed to undertake this visit at the soonest, and before May 2014.

Gujarat State Component

3. The mission was pleased to note the progress made in implementation of social aspects under the project. GEC has completed inception meetings and baseline data collection for all the targeted villages. GEC had also completed secondary data collection of all coastal villages. Capacity building of the community is underway that includes information dissemination about the project, orientation, relevance of the project and importance of participation of the community in the project components. In order to mobilize community for mangrove plantation and its maintenance, 56 eco development committees (EDCs) and 104 community based organizations (CBOs) have been formed in all 160 target (see Table A2.1). Project has ensured that women constitute fifty percent of the total members of the CBO. One of the women is the signatory in the CBO account that helps women to take decisions.

Table A2.1: Details of community mobilization in Gujarat

Name of the Organization

Target (Village)

District wise Formation of CBOs and EDCs Completed

Jamnagar Gandhigram Naliya Total Eco Development Committee

56 56 11 12 56

Community Based Organization

104 0 44 60 104

Total 160 56 44 60 160 CBO/EDC registration 160 51 33 58 142 (Registration of

additional 17 CBOs under process)

MOUs signed with CBOs /EDCs

160 51 44 60 155 (MoU with additional 4 CBOs under process)



29

4. For livelihood improvement pilot investments, community mobilization is completed in all 160 villages, and progressing well in the remaining villages. So far 33 entry point activities worth INR 222 lakhs have been completed. Various types of EPAs carried out so far includes rain water harvesting structures; ground water recharging structures; stall feeding and promotion activities; construction of salinity privation band structures; fodder and fuel wood development & shelterbelt; construction of cyclone cum multipurpose building; and access road. Solar power at community level has been undertaken as a new activity under Alternative Energy Resources (see annex for details). The mangrove plantation has directly benefited over 1200 persons through employment and over 36000 persons indirectly. Approximately 50 percent of the both direct and indirect beneficiaries are women. Out of targeted 480 SHGs (3 SHGs per village), 468 SHGs have been formed in the project villages and another 12 SHGs are under the process of formation. SPMU has also carried out several activities in these villages for creating awareness towards mangroves.

Table A2.2: Details of Entry Point Activities

Main Activities

Revised target during MTR

Completed On going Technical Estimates submitted

Yet to be started *

Total

Works Budget Works Actual Cost

Works Actual Cost

Works Estimate Works Estimate Works Amount

Rain Water Harvesting structures

41 401.03 11 70.62 17 102.40 13 81.71 9 87.00 50 341.71

SMC work - Ground water recharging Structures

40 386.58 7 61.26 10 79.45 22 164.00 6 55.00 45 359.71

Construction of Salinity Prevention band structures

10 94.96 4 36.19 5 47.70 0 0 1 3.31 10 87.20

Stall feeding and promotion activities

11 110.00 1 10.38 6 41.62 0 0 8 58.18 15 110.18

Construction of cyclone cum multipurpose building

8 80.25 0 0 5 35.46 0 0 6 45.00 11 80.46

Small Village STP 2 80.00 0 0 1 4.00 0 0 2 73.00 3 77.00

Sanitation and Drainage

9 92.68 1 7.75 3 26.77 0 0 5 42.00 9 76.52

Solid waste management

2 22.5 0 0 0 0 0 0 0 0.00 0 0

Alternative Livelihood Activities

0 0 6 3.51 0 0 0 0 7 4.10 13 7.61

Sub-Total 123.00 1268.00 30 189.71 47 337.38 35.00 245.71 44 367.59 156.00 1140.39



30

Main Activities

Revised target during MTR

Completed On going Technical Estimates submitted

Yet to be started *

Total

Works Budget Works Actual Cost

Works Actual Cost

Works Estimate Works Estimate Works Amount

Fodder and Fuel wood Development & Shelter belt

20 Ha 20.00 2 10.93 0 9.06 0 0 0.00 0.00 2 19.99

Alternative Energy Resources Development

130 520.00 1 21.27 0 0.00 0 0 129.00 498.73 130 520.00

Total

1808.00 33 221.91 47.00 346.44 35.00 245.71 173.00 866.32 288.00 1680.38

5. So far PRA exercise for collection of baseline data has been completed for 159 villages out of total 160 identified villages. Out of these 159 PRA results, 40 have been uploaded on the GEC website. It was agreed that copy of village PRAs will be shared with the community. Project will also share success stories with the community.

6. Several capacity building initiatives have been taken by SPMU including orientation / exposure visits for CBOs and EDCs and skill enhancement and administrative training for SHGs. Recently project provided disaster risk management training to 147 villages. Five individuals were selected from each of these 147 villages on TOT basis. GSDMA along with Disaster Management Institute provided the training covering the issues of cyclone and flood management. These individuals will receive further long term training at DMI, Anand. Project also arranged for lobster orientation training for 12 villages. Detailed training will be provided by local NGO called UTTHAN in Bhavnagar. SPMU has identified 30 beneficiaries from 2 villages of Mandvi takuka. Post training, NGO will also connect them to market. UNNATI, the NGO that provided social audit training will now providing training to all CBOs on accounting and book keeping. The training will be provided through SATCOM using BISAG studio. A total of 13 clusters will be covered. This will be followed by a follow up training in all 160 villages. Under entrepreneurship training SPMU will conduct two batches of lobster training with UTTHAN, one village level training in animal husbandry in villages with existing dairy activity; and one block level seaweed cultivation in Mandvi Post training social audit has been carried out in 159 villages out of 160.

Table A2.3: Details of Training imparted by the Project Sr. No. Type of Training Coverage / Number of Beneficiaries 1 Social Audit Trainings at block level 608 community members trained from 160 villages

2 Disaster Management trainings at block level 682 community members trained from 147 villages

3 Advanced training on solar equipment 79 community members

4 Orientation training on solar equipment 313 community members

5 Handicraft training in Bhuj 18 community members from two villages

6 Procurement Manual training Community members from 160 villages

7 SHG formation training by AKRSP and SAYALA 51 SHG members from 13 blocks.

8 SHG/CBO formation orientation training Community members from all 160 villages

9 Exposure visit to AKRSP Mangrol 47 EDC members from Gandhidham cluster

10 Exposure visit to Kutch 42 EDC members from Jamnagar cluster

11 Exposure visit to Jamnagar MNP 45 EDC members from Naliya cluster

12 Orientation training on Lobster 12 villages

7. Since September 2013, SPMU has initiated media monitoring on coastal ecology and environment related news. So far SPMU has tracked 448 news articles.



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8. Agreed Actions: (A) SPMU now needs to expedite the implementation of EPAs. All EPAs should be completed by June 2014. (B) All PRAs to be uploaded on GEC website. Ten PRAs will be uploaded each week starting March 2014. (C) Copy of village PRAs and success stories to be shared with the community.

Orissa State Component

9. The community mobilization in Odisha has been very effective and project has made substantial progress in fisheries component of the project where 600 SHGs have been identified and selected for assistance under ICZMP. Accounting & Book-Keeping and Technical skill up gradation training completed for 598 SHGs at village level and 294 SHGs at National Institution level. Financial support has been given to all 600 SHG’s for carrying out their adopted alternate livelihood activities. The break down includes 211 SHGs for Integrated Pisciculture; 63 SHGs for Dairy; 88 for Poultry; 115 for Hygienic dry fish& value added product preparation; 75 for cold chain marketing and 48 for other ancillary fish business. More than 7500 fishing households and over 37,500 individual of which approximately 32 percent are women will benefit by this initiative. SPMU has also arranged for exposure visits at state level has been conducted for 175 and to national level institution for 294 SHGs to witness best practices. For the first time in the state, 115 solar driers have been planned to be installed in coastal districts for producing value added hygienic dry fish. The break down includes 94 in Ganjam; 8 in Puri; 9 in Khurda and 4 in Kendrapara. Contract has been awarded for procurement of 115 solar driers and 34 units of solar driers have been procured till January 2014. Department of fishery has taken advance possession of 82 government sites for installation. All these sites are free of encroachment and other encumbrances. As a special and unique initiative, SPMU has hired MART as a consultant for marketing linkages, packaging and branding of the dry fish products of the SHGs.

10. Promotion of community based Eco-tourism as sustainable livelihood option for local communities: In order to facilitate community based eco-tourism, initiatives have been taken up to provide alternate livelihood option for the community in and around Chilika. All these activities are under progress. The land issue in Kalijai Temple Island has been resolved. The island is under the control of district collector now. Under support to fisher Groups for small-scale community-based tourism activities, the Odisha State Tourism Development Corporation is preparing a capacity building plan for communities of villages Barkul and Tampara. However, the formation of CBOs for ecotourism activities around the Chilika and Tampara lakes has been considerably delayed and consequently the special training on ecotourism and hospitality management for the villagers of the Tampara Lake too has been delayed. Capacity building plan and identification of activities in villages near Barkul and Tampara is under progress. PRA exercise leading to household survey and identification of trades for training has been completed in Pathara (Badakul) & Humara (Tampara) villages. Plan & Design of Tampara has been submitted by OTDC to SPMU for approval. Further delay may lead to community unrest as several rounds of consultations have already been undertaken but things are yet to start on the ground.

11. Coir making as alternate livelihood option for fisherfolk; MSME department had identified 40 SHGs covering 600 artisans and has initiated skill training activities for coir products. Training program has been completed for 37 SHG. As a part of capacity building, 4 days training on Costing and Accounts Training was provided to 80 artisans from all 40 SHGs and 3 Cluster Managers in Bhubaneswar. Exposure visit of 9 days to Alleppey, Kerala was conducted for 13 artisans of 9 selected SHGs along with one Cluster Manager and one NGO. However, local exposure tour for one day to Teisipur, Satasankha and Sakhigopal area has been conducted for all artisans of 40 SHGs. Two day training for group leaders of all the 40 artisans was also organized. The progress of development of coir village however is extremely slow though lot of effort has been made to enhance skill of crafts man and women and SHG



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members. Community in Gola village has donated 0.8 decimal of land for construction of Common Facility Centre (CFC) where the contract for construction has been awarded. Site for training and production centre (TPC) and coir craft tourist village has been finalized, but construction is yet to start.

12. For marketing of the products, SHGs participated in different exhibitions such as Palishree Mela, Puri Ratha Yatra, IITF- New Delhi, Puri Beach Festival, Cuttack Baliyatra exhibition, Paradeep-2012 & 2013 and 1st MSME International Trade Fair-2013, Bhubaneswar, and Chilika Mahostava-2013. Mission was pleased to note that coir products by the SHGs were appreciated and there was demand for their products. Apart from selling their products in exhibitions, SHGs are also selling them locally and 8 SHGs supplied yarn used to prepare ropes for Holy Chariot of Lord Jaggannath in the Puri Car Festival, 2013.

13. Conservation and improvement of built maritime coastal heritage: Mission was pleased to note that all 40 artisans trained for construction of traditional temples have been absorbed by the department of culture on temporary basis and some of them are working on Bank assisted project. Department of Culture has conducted community consultations in each of the heritage sites that will be conserved and improved under the project and committees have been formed. The committees are collecting donation from shopkeepers for solid waste management. It was agreed that project will (i) put up information board having name of the committee members; and (ii) conduct monthly meeting with the committee. It was agreed that PEA will develop micro plans to involve community for each of the identified beneficiary villages under various eco / community based tourism initiatives.

14. Conservation of Biodiversity & Livelihood security through Ecotourism: Department of Forest and Environment is promoting community based nature tourism as a source of alternative livelihood in order to reduce the pressure on forest and other natural resources. However, department has not made any substantial progress. Recently land alienation was approved and department has obtained advance possession of land at both Buxipalli and Koilipur. The land identified is government land free of encroachment and other encumbrances.

15. For mangrove plantation, the Department of Forest and Environment has formed 32 eco development committees (EDCs. 21 EDCs out of 32 have completed plantation work in 18 hectares out of the total of 30 hectares. NGOs have also been engaged to assist SHGs to carry out mangrove plantation through community (through SHGs /Village committees) in Berhampur & Kendrapara region. About 1000 hectares of land has been reported to be identified. A technical Consultant has been engaged to carry forward the plantation work through community participation by identifying the suitable land and specific species for plantation.

16. Paradeep Solid Waste Management: The land identified for solid waste management in Paradeep is sub-judiced. The land provided for Paradeep solid waste management, belongs to IDCO. SPMU has also obtained the revenue records of the land.

17. Beneficiaries: The project will benefit approximately persons. Activity wise break down shows fisheries component alone will benefit 118,567 persons of which 59084 are women. The coir making component will benefit 11,144 persons (5499 women) and OTDC component will benefit over 5000 persons (2499 women). The project will also benefit over 1000 disabled persons.

18. Convergence with other departments: Department of fisheries has tied up with (i) General Insurance Scheme and has enrolled all SHG members. It has also provided Matsya Credit Card to the fisher households; (ii) Department of horticulture for provision of sapling for plantation of fruit bearing vegetables, plants, etc, and training on Horticulture; (ii) department of urban development for construction of approach road and internal road to the activity site; (iv) department of energy for provision of electricity to the market complex at Gopalpur; (v) department of revenue for provision of land for establishment of business units; (vi) department of rural water and sanitation for provision of toilets. It has also entered into an agreement with GRAM VIKASH (NGO) for provision of water supply



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bore well and over-head tank to individual SHGs. United Artists Association is assisting the department for marketing of dry fish and value chain reinforcement.

19. Agreed Actions: (A) Social screening of IIDCO land transferred to project for Paradeep SWM to identify any pending court cases against the land by March 15, 2014. (B) Micro plans for involvement of community members in eco and pro poor tourism to be completed by April 30, 2014.

Annex 3

Financial Management Systems and Performance

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Overall

1. The overall accounting systems in SICOM, Gujarat, West Bengal and Orissa are working well. The project has submitting timely monthly IUFRs and has submitted the audit report also before the due date. In terms of accounting and reporting the project has done well. All SPMUs have received the budgeted amounts from the respective project states for the last financial year.

2. This year budget provision has been made for all SPMUs except West Bengal. In case of West Bengal no amount has been received this year, while in Gujarat only 50% of the budgeted amount has been drawn, leading to partial compliance to the budget legal covenant8 (i.e. budget has been allocated, but funds were not transferred due to low level expenditure and availability of earlier year’s cash balance with the entities).

3. All other financial covenants have been met by the project. The mission appreciated that SICOM and the SPMUs are unlikely to get further releases from finance departments due to low spending and non-submission of utilization certificates against the earlier budget released; and the only option for them is to improve expenditure and disbursement situations. Some of the agreed actions in the last mission like internal audit compliance, staffing at West Bengal, and appointment of external auditor are yet to be completed and the mission requested the project to complete these actions on priority. Based on the above, the rating for financial management in the project is retained as Moderately Satisfactory (MS). The agreed actions for the project are summarized in the FM annex. If these agreed actions are completed in the next mission, the rating of the project could be considered for an upgrade in rating.

4. The following are the summary of discussions on financial management across SICOM and the SPMUs.

Budget

5. SICOM: The GOI and the Planning Commission agreed for a budget provision of Rs.480 crore for FY13-14, but the MoEF has provided only a budget allocation of Rs.125 crore for FY 13-14 (and suggested that the remaining may be budgeted during the process of Revised Budget Estimates, during November-December 2013 depending on actual expenditure). Out of the above, Rs.75 Crore has been drawn. The cumulative expenditure incurred in the national component up to January 31, 2014 is Rs. 71.1 crore. For FY 14-15 (interim vote-on-account), GOI has provided a budget of Rs.140 Crore. Funds to SPMUs need to be transferred based on usage and annual work plan.

6. Gujarat: The State provided a budget allocation of Rs.11 crore for FY 13-14, and Rs. 5.35 crore has been drawn. Cumulatively, Rs.107.57 crore has been spent till January 31, 2014. For FY 14-15, the state has provided a budget of Rs.13.7 crore.

8 The covenant requires budgetary allocation of 10% of the cost of the Annual Plan, as well as transfer of such amounts to the

SPMU.



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7. Orissa: The State provided a budget allocation of Rs.2.95 crore for FY 13-14, and this amount has been received to the SPMU. The cumulative project expenditure as on January 31, 2014 is Rs. 84.45 crore. For FY 14-15, the state has provided a budget of Rs.13.24 crore.

8. West Bengal: For the current year no provision has been made by the State. State indicated that excess amounts were released during the previous years which are yet to the spent by the project. Amounts related to previous financial years have been received by the SPMU. The total cumulative expenditure as on January 31, 2014 is Rs.45.12 crore. For FY 14-15, the state has provided a budget of Rs.17.50 crore.

Disbursements

9. The disbursement as per the Bank records is XDR 32 million including designated advances (DA) and XDR 2 million is in the pipeline. The overall disbursement percentage is 23% (including DA). Disbursements are on the slower side as compared to the projections.

(XDR Million) Component Allocated (XDR m) Disbursed (XDR m) Balance (XDR m) Disbursement % A 44.14 7.27 36.87 16 %

B 38.13 9.56 28.57 25 %

C 25.36 6.68 18.68 26 %

D 38.55 3.87 34.68 10 %

PPF advance 0.73 0.65 0.08 89 %

Sub-Total without DA 146.90 28.03 118.87 19 %

DA 3.75 - 3.75 -

Total 146.90 31.78 115.12 23%

2010-11 2011-12 2012-13 2013-14

FTY 12.5 5.4 20.8 10.4

CTD 12.5 17.9 38.7 49.1

12.5

5.4

20.8

10.412.5

17.9

38.7

49.1

0

10

20

30

40

50

60

US

D M

illi

on

Disbursement Graph



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10. The overall sources and uses for the project are exhibited in the table given below (as on January 31, 2014).

(Rs. Crore)

Sources NPMU Gujarat Orissa West Bengal Total 1. Received from GOI 354.00 - - - 354.00

2. Received from SICOM - 258.18 111.93 83.98 62.27 -

3. Received from State Govt. - 22.34 26.06 13.24 61.64

4. Interest on Bank deposit & other received 1.68 3.87 10.07 8.14 23.76

Total 97.50 138.14 120.11 83.65 439.40

Uses

5. Expenditure FY 2010-11 2.51 11.76 2.07 2.98 19.32

6. Expenditure FY 2011-12 8.42 24.17 11.86 6.45 50.90

7. Expenditure FY 2012-13 37.93 33.93 30.95 19.96 122.77

8. Expenditure FY 2013-14 (up to January 2014) 22.24 37.71 39.57 15.73 115.25

Cumulative Expenditure 71.10 107.57 84.45 45.12 308.24 Mobilization advance 6.65 8.67 2.44 4.18 21.94

Balance in Bank account NPMU/SPMU 2.59 10.34 19.83 29.83 62.59

Balance in Bank account PEA's 16.59 8.79 12.40 3.22 41.00

Other advances 0.57 2.77 0.99 1.30 5.63

Total 97.50 138.14 120.11 83.65 439.40

Accounting system

11. National Component: The SICOM has installed and operationalized a TALLY accounting system. The financial reports are being generated based on TALLY records. The SOI, the MSSRF and the NCSCM have also implemented TALLY accounting system. The project accounts have been updated till January 31, 2014. There were few classifications issues in the NCSCM which was highlighted by the mission and rectification has been carried out. The SICOM has conducted a finance and procurement workshop for all PEAs. The mission encourages SICOM to periodically carry out such workshops.

12. Gujarat State Component: TALLY has been installed and operationalized in the SPMU and in all PEAs; and are up to date. The project accounts have been updated till January 31, 2014. After the MTR, there has been improvement in the adjustment of CBO advance. However the mission reiterated that CBO advances from GEC, needs to be reviewed on a continuous basis and the mission requested GEC to review each case individually and take steps to either recover or get the UC for the advance. In the MTR, it was suggested the SPMU to maintain separate ledger accounts for large contractual payments so that TALLY can provide party wise ledger accounts which is yet to be done.

13. Orissa State Component: TALLY has been installed and operationalized in the SPMU and in all the PEAs; and are up to date. The project accounts have been updated till January 31, 2014. In the MTR, it was suggested that the SPMU maintain separate ledger accounts for large contractual payments so that TALLY can provide party-wise ledger accounts. This is yet to be fully completed. The mission reemphasized (as per agreement at MTR) that SPMU will continue to monitor bank guarantees (BGs) for all contracts; with an updated list of BGs available with the SPMU, so that it could be ensured that all BGs remain valid and properly regulated. Further, Also the SPMU should on a regular basis follow up on the Mobilization Advance (MA) given and follow the activities and ensure that the advances are adjusted on a regular basis.

14. West Bengal State Component: TALLY has been installed and operationalized in the SPMU and in all the PEAs; and are up to date. The project accounts have been updated till January 31, 2014. In the MTR,



37

it was suggested that the SPMU maintain separate ledger accounts for large contractual payments so that TALLY can provide party-wise ledger accounts. This is yet to be fully completed. The mission reemphasized (as per agreement at MTR) that SPMU will continue to monitor bank guarantees (BGs) for all contracts; with an updated list of BGs available with the SPMU, so that it could be ensured that all BGs remain valid and properly regulated. Further, Also the SPMU should on a regular basis follow up on the Mobilization Advance (MA) given and follow the activities and ensure that the advances are adjusted on a regular basis.

Project Cost

15. The project cost is undergoing a revision and it is expected to be finalized before March 2014. The mission requested the project to provide the details for the entire project so that the need for reallocation can be assessed. The project is required to work out the total amount of committed contracts, total amount of contracts in pipeline, total amount paid till date and the balance to be paid out of the project funds. This should be submitted to the Bank before March 31, 2014.

Staffing

16. National Component: Staffing at the SICOM and the SOI are as per agreed staffing pattern. The NCSCM has now recruited a finance manager and two more accounts officers. However, the NCSCM needs to recruit the head of the finance wing as soon as possible. SICOM should also provide refresher training to all PEAs.

17. Gujarat State Component: The SPMU staffing is complete and adequate. The project has imparted training for PEAs and similar training should be delivered/ conducted by the SPMU continuously.

18. Orissa State Component: The SPMU staffing is complete and adequate. The project has imparted training for PEAs and similar training should be delivered/ conducted by the SPMU continuously.

19. West Bengal State Component: Staffing at SPMU level is adequate and complete. However, in the case of the Forest Department, the position of the accountant is yet to be filled up. Training for PEAs should be delivered/ conducted by the SPMU continuously.

Internal audit

20. The internal audit contracts were renewed for the FY 2013-14.

21. The internal audit contracts have been renewed for the next financial year. The scope of the internal audits has been redefined and the auditors have been provided extensions. The mission understands that there has been improvement in the timeline for submission of audit reports by the auditors. However there still a delay of at least one quarter in submission of audit reports. The mission reiterated that internal audit reports should be submitted on a timely basis and project should follow up on the compliance on a timely basis. Another common issue among all the states is that the audit committees is meeting once in a year and if these meetings could be made half-yearly it would be beneficial for the project.

22. Currently the SPMUs request clarifications from the respective officers on receipt of the audit reports, and then the compliance are submitted to the auditors, who decide on accepting the compliance and records the same in the next audit report. However in this process, the overall status of compliance is not clear. As discussed in the last mission, internal audit compliance needs to be strengthened. Each SPMU should have record of issues identified and the actions taken to address these issues. The mission requested the



38

SICOM to design a format to capture both qualitative and quantitative issues and monitor them on a regular basis. This action is overdue and needs to be completed by 31st March 2014.

External audit:

23. The audit reports and audited accounts for FY 12-13 was completed and shared with the World Bank in time (by September 2013). These have been accepted by the World Bank.

24. The contract extension for the current external auditor for the FY 2013-14 is under process. This process needs to be completed before March 2014. The SICOM needs to start the process of hiring an external auditor for the next FY and that process needs to be concluded before September 2014.

Other FM Issues:

25. Procurement and Financial Management Support Consultancies (PFMCs): The PFM Support consultancy contracts were renewed for the NPMU/SICOM, for a period of 6 months. SICOM will need to either consider further extension until the end of the project, or start recruitment process for a new consultant by March 31, 2014. The PFM Support consultancy contracts were renewed for the SPMUs in Odisha and West Bengal. In Gujarat, the SPMU started a new selection process, which is expected to be completed by March 2014 and a new PFM Support consultancy firm should also be in place by March 31, 2014.

26. SICOM has indicated a possibility that it might propose addition of two new PEAs (National Informatics Centre and Science and Technology Park, Pune) to undertake expanded mandate of using the information collected, especially the geo-informatics information for multi-stakeholder use. Gujarat had earlier proposed that the Tourism Corporation of Gujarat Limited would be given the responsibility of managing the marine oceanarium and research center. West Bengal had discussed during the MTR for designating the State Fisheries Department as the PEA replacing the State Fisheries Development Corporation. For these and any new PEA to be added at the SICOM/SPMU levels, an assessment of financial management capabilities will need to be carried out; and the agreed actions will need to be discussed and agreed with such agencies. For such new PEAs, bank accounts will need to be created, agreed staffing will need to be in place, and TALLY accounting system will need to be set up. For each of such new PEAs and their respective activities, the cost table and the activities should be approved by the Bank. Till the time the cost tables are completed and agreed, the project is advised not to claim expenditure incurred by these agencies.

27. Entity audit backlog for PEAs: The entity external audit for NCSCM (since its inception in 2011) should be completed by March 31, 2014. Although all funds and expenditure of NCSCM is for the project, and as such has been already accounted and audited, the NCSCM needs to submit an external audit as per applicable regulation. The SICOM will help the NCSCM in identifying an appropriate external auditor and to ensure that this audit backlog is addressed before March 31, 2014.

28. Cross learning: The MTR mission suggested further visit of each SPMU accounting team to SICOM and other SPMUs for cross learning as well as training. The mission also suggested that the SICOM should conduct workshops for SPMUs as well as PEAs to support cross learning in the accounting and financial management of the project. Both these actions are pending, and this mission reiterated that the same should be completed by May 2014 (and continued).

29. Working of the NCSCM Consortium Institutes: The NCSCM will be working in consortium with 14 universities-consortium partners (UCPs). The mission understands that an MOU would be signed between each of these UCP and NCSCM. In terms of expenditure, the mission understands that assets (except for those procured using shopping method, such as computers and laboratory consumables) would be purchased by NCSCM and then transferred to these UCP if required. Payments for IOC, small purchases



39

using shopping procedures, and salaries of researchers would be transferred by NCSCM to these UCP who will make the payments. As the total amount for each UCP would be limited for IOC and salaries, a simplified accounting system was agreed which will be used by NCSCM and the UCPs.

30. Observation on the accounting and financial management processes of the NCSCM: The mission suggested the following areas of improvement: (a) documentation was inadequate and needs to be improved; (b) cases of wrong classification of expenditure as per the chart of accounts were identified and rectified during the mission; the NCSCM will work with SICOM to rework the chart of accounts as required, and to ensure such wrong classification do not recur; (c) the cases of contracts of the individual procurement consultant, the individual consultant for supporting accounts team, which were selected on single source basis needs to be closed by March 2014, and any new contracts for such positions and/or similar should, hereafter, be selected on a competitive basis .

31. Observation on the accounting and financial management processes of the Survey of India: The mission found that accounting is being carried out by the Survey of India as per the agreed SOP, and it is working fine. The mission requested the Survey of India to review the SOP with SICOM for further improvement, if any, and implement such improvement across all cost centers of the Survey of India.

Agreed Actions

32. The following actions were agreed.

N Action to be taken By Whom By When

1. Staffing to be completed West Bengal June 2014

2. Adequate Funds to be transferred to SPMU from respective State budget and from SICOM

Gujarat and Bengal December 2013

3. Compliance to Internal Audit SICOM March 2014

4. Information on the revised Project Cost, Current and Upcoming Commitments

SICOM March 2014

5. Completion of Entity External Audit for NCSCM (2011 onwards)

NCSCM and SICOM March 2014

6. Accounts and finance workshop for PEAs and SPMUs

SICOM and all SPMUs Continuous- every 6 months

7. Cross learning event SICOM and all SPMUs September 2014

8. Selection of new External Auditors firm FY 2013-14 FY 2014-15

SICOM March 2014 September 2014

9. TALLY accounts to be modified Gujarat SPMU March 2014

Annex 4

Procurement Management Systems and Performance

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1. General: A summary of the status of procurement performance for SICOM and the SPMUs reveals that awarded contracts now is worth INR 787 crore, but another 195 contracts (worth between INR 257 crore and INR 432 crore) remain to be awarded. Of these, 48 contracts are ready for award but could not be awarded due to the issue of ceiling of project expenditure at GOI level. However, 84 contracts worth INR 146 crore is yet not advertised (63 of these are in West Bengal worth INR 115 crore). It is unlikely that these contracts could be awarded in the project, or could be completed even if awarded. Given the numbers, variety and newness of a number of activities in the Project, the procurement risk is “Substantial”.

2. After the MTR, based on the existing procurement plan, 561 out of the total of 706 contracts have either been completed, awarded or is ready for award (pending approval of cost ceiling). This implies that disbursement is expected to be accelerated in the next six months.

3. Revised Procurement Manual: Procurement Manual for the Project dated April 29, 2010 is was revised in September 2013 mainly to reflect the application of Bank Procurement Guidelines 2011, in specific to reflect the agreement during the Fourth Implementation Support Mission to use force account procurement of satellite images, and the agreement during MTR with respect to the revised procurement thresholds. The revised Procurement Manual took into consideration changes in the Procurement Thresholds effective June 13, 2013. It is to be noted that: (i) procedures for expenditures related to incremental operating costs as per State and GOI norms could apply in the project; and the World Bank has no particular view as long as GOI and/or State Government standards and norms are complied with, and these could be appended to the Procurement Manual; (ii) procedures for dealing with bid premium will continue and the World Bank has no particular view as long as project implementation is not hampered or delayed.

4. Procurement Plan and its Revision: The submission of up-dated procurement plans for both NPMU and the SPMUs are overdue. It is expected that ICB bids that received no responses after a number of attempts and were to be undertaken under shopping conditions will be indicated in the plans appropriately. The plans are expected to reflect the new thresholds and the revised Procurement Manual. The SICOM/SPMUs prepared a revised Procurement Plan in November 2013, which is yet to be approved by the GC of SICOM owing to the uncertainty of the ceiling cost of the project. Once the MoEF and SICOM GC agrees on a particular ceiling cost (based on which submission will be made to EFC/CCEA for approval), SICOM should quickly revise the plan prepared in November 2014, and submit to World Bank for clearance.

5. While preparing the Revised Procurement Plan, it was agreed that SICOM and SPMUs will specifically address the following issues:

a. All contracts as per the Approved Procurement Plan (dated May 2013) which were not advertised by February 15, 2014 will be dropped, as it is unlikely that these could be awarded before June 2014 and consequently it is unlikely that these could be completed before September 2015.

b. For all contracts to be included in the upcoming Revised Procurement Plan, the following conditions should be satisfied:

i. Only those contracts should be included where there is a realistic chance of contract completion by September 2015. This will mean (if the Revised Procurement Plan is prepared by May 2014):

a. No contract with contract period of more than 12 months could be included;

b. Payment related to default liability period cannot be made by the project and should be taken up by the national PEA or the State as relevant; and



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c. Consideration should be given to actual availability of “construction season”, as in the coastal areas, a number of months could be lost due to monsoon or extreme weather events.

ii. All contracts included in the Revised Procurement Plan should include provisions for annual and comprehensive maintenance (AMC/CMC) or defects liability; and separately an estimate of all operation and maintenance costs.

a. The cost of AMC/CMC, defects liability, and operation and maintenance cannot be paid by the project;

b. The SPMU (or PEAs as relevant) will submit written confirmation from the State Steering Committee that all costs of (i) AMC/CMC, (ii) defects liability, and (iii) operation and maintenance will be paid by the States (or PEAs as relevant) outside the project budget.

iii. As the project closes in December 2015, there is a chance of slippage in the contracts (as has been seen in the contracts awarded so far in the states, especially for the works contracts). The Revised Procurement Plan will include contracts only when there is a reasonable guarantee that these contracts will not remain unfinished. SICOM will ensure that contracts are included only when:

a. The SPMU (or PEAs as relevant) will submit written confirmation from the State Steering Committee that in the event that: (i) contracts are not completed by September 2015, (ii) when contract payments cannot be made by December 2015, which will mean (iii) reimbursements against contract payments cannot be claimed from the World Bank, all remaining contract payments will be made and guaranteed by the States (or PEAs as relevant) and each of these contracts will be completed.

6. Once reviewed and agreed by the World Bank, the NPMU and SPMUs should publish the revised Procurement Plans in their respective websites replacing their older version and the Bank will also simultaneously publish it on its website. The mission advised the SICOM and the SPMUs to closely monitor the procurement activities so that there is no slippage with respect to the updated Procurement Plan as agreed with the Bank.

7. Procurement Thresholds: The Procurement Thresholds for the Project was defined in the Procurement Manual for the India ICZM Project dated April 29, 2010. Subsequently, the Procurement Thresholds were revised during the Third Implementation Support Mission and became effective from August 26, 2012. During the MTR Mission, the National and State Project Management Units (NPMU and SPMUs) and the World Bank Team discussed and agreed on the need to revise the Procurement Thresholds further such that implementation of the project activities is hastened and consequently the disbursement performance. Based on the discussions and agreements, the Procurement Thresholds were revised effective June 13, 2013. These are now reflected in the Revised Procurement Manual (dated September 2013).

8. The prior review thresholds will continue to be reviewed (based on the actual progress and improvements noted as implementation of the project also progresses) to ensure procurement management is carried out appropriately. As of now, the SICOM and the SPMUs are comfortable with the prior review thresholds.

9. All contracts not subjected to prior review will continue to be subjected to post review on an annual basis by the World Bank. Any contract that does not follow the agreed methods or standard bidding procedures or standard bidding documents or are unique in its nature will also be subjected to prior review by the World Bank, irrespective of the value. Such contracts will continue to be identified as prior review in the Procurement Plan.



42

10. Procurement disclosure management: Disclosure of procurement information has remained satisfactory. The summary is given below; the table shows the current status compared to status during the MTR of June 2013 (in brackets):

Table A4.1: Disclosure of Procurement Information in the Project

Disclosure Agreed in the Project website NPMU (SICOM)

SPMU, Gujarat

SPMU, Odisha

SPMU, W. Bengal

Procurement plan and updates Yes (Yes) Yes (Yes) Yes (Yes) Yes (Yes)

Specification for goods and equipment as soon as these are prepared

Yes (Yes) Yes (Yes) Yes (Yes) Yes (Yes)

Invitation for bids for goods and works for all ICB and NCB contracts


Request for expression of interest for selection/hiring of consulting services


Contract awards of goods and works procured following ICB/NCB procedures


List of contracts/purchase orders using shopping procedure on a quarterly basis


Short list of consultants Yes (Yes) Yes (Yes) Yes (Yes) Yes (Yes)

Contract award of all consultancy services Yes (Yes) Yes (Yes) Yes (Yes) Yes (Yes)

Brief description of activity and amount sanctioned for CBOs using community contracting method

No (NA) Yes (Yes) Yes (Yes) Yes (NA)

Brief description of activity, amount sanctioned and details of expenditure using force account

No (NA) Yes (No) Yes (Yes) NA (NA)

List of contracts following DC or CQS or SSS on a quarterly basis

No (NA) Yes (Yes) Yes (Yes) Yes (Yes)

Action taken report on the complaints received on a half yearly basis

No (NA) Yes (Yes) Yes (Yes) Yes (Yes)

11. There is scope for improvement in disclosure of the procurement information at SICOM or the National Component as a whole. The issue is in fact regarding the lack of effective operation of the SICOM website, and the lack of capacity of the SICOM communications cell. The mandatory requirements are being fulfilled by posting the bid advertisement in the MoEF or the NCSCM website, but larger disclosure requirements, such as for community contracts and for quarterly disclosure, etc., are not being done regularly. It is important that SICOM quickly improves the capacity of its communications cell and the SICOM webpage be improved (if necessary through a new contract).

12. Procurement staffing. The quality of procurement functions and systems had been fairly satisfactory. The NPMU and SPMUs have sufficient procurement personnel to support implementation of the Project. Overall staffing for procurement functions is adequate. However, it is worth noting that NPMU Procurement Cell has been unable to provide guidance and strategic advice to the Project States (and restricted itself to review functions only), and further capacity augmentation at NPMU is in order to be able to match future demand for procurement system improvement (for the overall SICOM/MoEF program, beyond the project).

13. Results of Procurement Post-Review for the Year 2013-14. The Bank has contracted M/s Global Procurement Consultants Ltd. to undertake post-procurement review on contracts awarded in the Project between July 1, 2012 and June 30, 2013. The review is in progress and the findings will be reported in the AM to be issued in the next Implementation Support Mission.



43

14. Current Status of completion of procurement: The progress of procurement made so far, expected level of procurement till March 31, 2014 as per the current Procurement Plan - unit wise as also category wise (i.e. separately for goods, works, community contracts, and consulting services) is described in Table A5.2 (see Annex 5). Following is a summary.

Table A4.2: Summary of Procurement Status (As of January 31, 2014)

(NOTE: This Summary excludes 29 contracts worth – mainly for ICZM Plans, other consultancies and the MRCI in Gujarat, which were always agreed to be awarded later)

Type of Procurement Packages

Procurement Plan (May 2013)

Contracts Already Awarded

(January 2014)

Contracts Ready to be awarded by March 2014

Contracts which are Uncertain

No. INR Lakh No. INR Lakh No. INR Lakh No. INR Lakh

Overall Project

Total 706 117,264.7 481 78,709.96 80 27,698 84 14,616.23 Goods 328 22,064.9 258 14,629.24 30 7,616 26 915.47

Works; S & I 183 72,489.7 105 48,659.72 42 17,171 20 9,292.30

Consultancies 129 14,514.1 76 7,236.10 6 1,185 28 4,072.46

Comm. Contract 66 10,258.6 42 8,184.90 2 1,727 10 336.00

Component 1 (National)

Total 139 28,019.3 79 15,226.33 26 8,747 13 2,004.46 Goods 60 7,310.2 40 2,253.57 13 5,062 - -

Works; S & I 29 4,643.6 17 11,277.19 11 3,640 - -

Consultancies 32 5,038.0 12 1,038.07 2 45 13 2,004.46

Comm. Contract 18 1,027.5 10 657.50 - - - -

Component 2 (Gujarat)

Total 175 35,974.8 147 27,734.90 20 3,821 1 1,000.00 Goods 98 5,681.5 90 4,526.50 8 1,555 - -

Works; S & I 34 25,872.8 24 17,116.30 8 902 1 1,000.00

Consultancies 26 2,160.1 18 2,072.50 2 1,060 - -

Comm. Contract 17 2,260.3 15 4,019.60 2 304 - -

Component 3 (Odisha)

Total 267 24,539.8 200 20606.43 32 9,638 7 28.67 Goods 115 7,542.3 99 7,178.17 9 999 - 8.67

Works; S & I 92 11,422.8 56 8,520.23 22 8,629 - -

Consultancies 46 3,990.9 34 2,965.53 1 10 7 20.00

Comm. Contract 14 1,583.8 11 1,942.50 - - - -

Component 4 (West Bengal)

Total 125 28,730.8 55 15,142.30 2 5,493 63 11,583.10 Goods 55 1,530.9 29 671.00 - - 26 906.80

Works; S & I 28 20,550.6 8 11,746.00 1 4,000 19 8,292.30

Consultancies 25 3,325.0 12 1,160.00 1 70 8 2,048.00

Comm. Contract 17 3,324.3 6 1,565.30 - 1,423 10 336.00

15. The project has almost completed all major procurement. The remaining procurements are all post-review, except one major works contract (marine oceanarium and research center to be developed on a public-private partnership model, which is expected to be awarded by May 2014; the project financing allocated is US$7 million out of the expected total cost of the activity being as high as US$80 million9).

16. There is a need to monitor the procurement closely to ensure that not only there is no slippage in the planned activities, but contract milestones are also to be closely monitored from now. These will ensure

9 The estimate is not yet final; and it is possible that the estimated cost will be lower. Bank is ready to consider a prior review

threshold of US$40 million in this case, provided it is bid using international competitive bidding.



44

sufficient time being available for delivery of the contracted goods, works and services before the closing date of the project.

17. Targets for Procurement: The target remains to complete award of all contracts by March 2014. All contracts that are not awarded by March 2014 should be dropped. In the Revised Procurement Plan, any contract should be included only when there is a realistic chance of completing the contract by September 2015.

18. List of Key Actions to be taken in next 6 months: The project, especially the West Bengal Component has missed the December 2013 deadline which was critical to achieve success in the project. Based on a request from the West Bengal SPMU, the deadline was extended by SICOM and DEA to March 2014. Even that will be missed. Therefore, less than optimum results are to be foreseen. There is very little chance that all activities in the project (especially in the West Bengal component) will now be completed satisfactorily. The following actions, therefore, are important:

a. Drop the contracts which are not realistically expected to be completed by September 2015. Most of these will be in West Bengal component.

b. Revise the Procurement Plan keeping the target of completion (September 2015 at the latest) in mind, and only when the contract completion and comprehensive contract payment is guaranteed by the States.

c. Gujarat SPMU to ensure award for the MRCI at the earliest (by May 2014).

d. All SPMUs to award the remaining consultancies, and most importantly the ICZM Plan preparation consultancy at the earliest 9and before June 2014).

e. More specifically, each of the implementing agencies and the associated PEAs will need to monitor and take corrective actions so as to be able to ensure there is no slippage (from the targets set by the upcoming Revised Procurement Plan. And procurement processes should be discontinued for contracts which are delayed in any of the intermediate process milestones (advertising, bid evaluation, etc.).

Annex 5

Disbursement Performance & Procurement Schedule

45

1. Disbursement has been slow; but picking up. Disbursement in the Project has been slow (even if by several other measures the project is achieving the intended outcomes). The original disbursement estimates was 3%, 14%, 17% and 21% in FY11, FY12, FY13 and FY14, totaling 53% or US$118 million by end of Q3-FY13. The actual disbursement was 20% by the end of Q2:FY14, and will reach 26% by Q3:FY14. Overall, the shortfall in disbursement is 27% or US$59 million. However, in FY13 and FY14, there were signs of a turnaround. The disbursement in FY13 was more than the combined disbursement in FY11 and FY12. Similarly, the expected disbursement in the first 3 quarters of FY14 will exceed the disbursements of FY13.

2. MTR agreements for improving disbursement are being met. The agreement in the MTR was to improve project expenditure in FY14 to about INR 290 crore so that disbursement of US$44 million could be achieved. Apparently, the expenditure target is being met by the project (but may experience issues in March and April 2014 due to budget constraints). If budget is available, it is likely that all expenditure and disbursement targets will be met.

Table A5.1: FY14 Expenditure and Disbursement Performance 3.

Q1-FY14

Q2-FY14

Q3-FY14 Q4-FY14

Total FY14

Expected Project Expenditure (INR Crore)

21.38 56.35 121.29 93.30 292.32

Actual Project Expenditure (INR Crore) 24.71 50.87 89.12 (+ March 14)

(Likely) 115

(Likely) 299.7

Expected Disbursement (US$m)@77.7 % 3.20 7.05 15.76 18.36 44.37

Actual Disbursement (US$ m) @77.7 % 1.31 4.54 4.5 + (+2.8+7.2)

Remarks/Risks ~US$4 million adjusted against DA

by DEA/CAAA

Budget shortage (of INR41 crore) is a constraint in March

2014

Delayed budget in

April 2014

4. It was possible to further improve the project expenditure (and consequent disbursement). However, two developments in December 2013 prevented a better performance. First, the overall budgetary environment in the GoI was such that MoEF budget (along with almost all other ministries) was curtailed by about 25% during budget revision of November-December 2013. MoEF, in turn, could not provide the expected budget to the project (is now releasing budget on a monthly basis). This created a bit of slowdown in expenditures (especially in Gujarat and Odisha, where more expenditure was possible). Second, the SICOM GC and the MoEF took the view that the estimated increase in cost of the project (and even the cost of the components) will need to receive approval of EFC/CCEA, rather than approval of the MoEF (which is thought to be permitted to the extent of 20% of the earlier EFC/CCEA approved cost of the project). This prevented award of as many as 112 contracts (worth INR 290 crore), and a potential additional expenditure of INR 30 crore (equivalent to a further additional disbursement of about US$4 million).

5. Given that 22 months remain in the project (and 26 months for disbursement), the average disbursement required from now on is US$ 6.2 million/month (or US$ 19 million/Quarter). This is expected to be achieved in Q4 of FY14.

6. The NPMU and SPMUs together have prepared an Annual Plan for FY15 to spend a sum of INR 551 crore. In that case, disbursement of US$56 million to US$70 million is possible in FY15. However, this



46

will be subject to two significant processes: (i) approval of increased project cost; and (ii) availability and timeliness of sufficient budget releases. Both of these issues are discussed below.

Revised Project Cost, Potential Utilization of IDA Credit/need for Cancellation

7. As per the estimates available at the time of the mission, the project cost, in INR terms, will be much higher than what was approved internally by the GOI (Expenditure Finance Committee, EFC and the Cabinet Committee on Economic Affairs, CCEA).

8. Following are the summary of the estimates of project cost (which is being examined by the GC of SICOM and the MoEF):

Table A5.2: Current Estimate of Project Cost (and Increase over Original Estimates)10

Component Originally Approved Ceiling Current Estimate of Project Cost

As per MoEF Estimate (INR Crore, 2009 Prices)

Total Cost (as per Project

Agreement) (April 2010 Exchange Rate)

Total Cost (Current Prices, INR Crore)

Total Cost (Current Prices, US$ m)

Increase (%)INR Total Cost (Base Cost)

Increase (%) in Total Cost in US$ m

Base Cost Approved by EFC/CCEA

Contingency

INR Crore US$ m

National Component

355.41 50.72 406.13 87.3 516.24 83.3 27.1 % (45.3 %)

- 4.6 %

Gujarat Component

298.34 48.52 346.86 74.1 416.39 67.2 20.0 % (39.6 %)

- 9.4 %

Odisha Component

201.62 29.60 231.22 49.3 444.53 71.7 92.3 % (120.5%)

45.4 %

W. Bengal Component

300.27 50.73 350.99 75.0 391.36 63.1 12.1 % (31.2 %)

-15.8 %

Total Project

1155.64 179.57 1335.52 285.7 1786.54 285.2 32.7 % (53.3 %)

- 0.16%

9. It is to be noted that the estimates for the Odisha State Component includes a few items of additional work, where the need has arisen after the Cyclone Phailin11. These include 15 additional cyclone shelters,

10 Note: (1) The estimate of base cost and contingency was prepared by MoEF using 2009 prices. The estimate of base cost was submitted to EFC/CCEA for approval. (2) Total cost is estimated now at 2013 price levels, indicating that there might be further requirement of contingency to cover for inflation during the remaining project period; (3) The estimate of total cost in US$ might experience slight changes due to fluctuation in currency exchange rates, and based on the exchange rate of amount already disbursed versus remaining disbursements.



47

additional plantation of mangroves and coastal shelterbelt. Separately, Odisha wants to include the solid waste management activity for the coastal town of Puri. Gujarat also plans to expand the mangrove plantation target by an additional 3,000ha. Otherwise, most of the increase in the cost of the project is due to (a) inflation; (ii) excess bid premium received and accepted as part of the open competitive bidding procedures; (iii) instances of under-estimation12 in a few cases at the time of project preparation, and (iv) devaluation of the Indian Rupee against most major foreign currency, which impacted procurement of good and equipment which are not manufactured (and only supplied) in India.

10. The Indian Rupee to US$ exchange rate has also undergone a rapid change since approval of the project (it was 1US$=INR44.37 in April 2010, went to 1US$=INR68 in 2013, and now is 1US$=INR62 or around). Therefore, the increase of estimate of project cost in INR is not reflected in US$ terms. Even if the above estimate, in its whole, is approved by EFC/CCEA, the project size in US$ terms will remain at US$285.7 million. Consequently, the IDA credit will also remain at US$221.96 million).

11. While MoEF expressed the need for additional project cost considering the estimated cost presented in the table above, and cancellation was not indicated. MoEF and SICOM GC are now examining the revised estimates of the revised project cost estimates are yet to be finalized. As part of this exercise, MoEF will examine the realism in the estimates in expenditure in the project (and consequent disbursement) by December 2014 and June 2015.

12. Upon finalization of revised costs, MOEF will solicit EFC/CCEA approval. The mission requested SICOM to inform the World Bank about the final revised estimates forwarded for consideration by the EFC/CCEA. It is agreed that MoEF will ensure that the proposals for EFC/CCEA approval is submitted by early March 2014.

Projected Disbursement Performance

13. At the MTR the Disbursement Lag was near 9 months; it was expected not to exceed 9 months by the end of FY14. The MTR estimate was as presented below.

Table A5.3: Disbursement Estimates in the MTR Mission (June 2013)

Originally Estimated Disbursement (USD m)

Up to FY13-Q4 FY14-Q1 FY14-Q2 FY14-Q3 FY14-Q4

80.40 21.38 11.87 4.55 9.10 Expected Expenditure (INR Cr) – as per the Fourth Implementation Support Mission, February 2013

186.27 24.51 101.27 121.29 93.30 143 50.51 5.19 21.71 23.47 18.05 13

64.97 6.59 27.12 34.35 26.43 21

46.49 6.18 21.25 3216 24.76 32

24.27 6.55 31.19 31.18 24.09 76

Expected Disbursement (USD m) 40.87 3.20 7.05 15.76 18.36 Anticipated Disbursement Lag (USD m) - 39.53 - 59.05 - 63.87 - 52.66 - 43.40

Anticipated Disbursement Lag (months) 9 months 16 months 17 months 11 months 9 months

11 This is as per the discussions between the Government of Odisha and the DEA.

12 Some of these instances of underestimation were known throughout the project preparation and implementation. Several PEAs are bound to use the “schedule of rates” knowing fully well that these “schedules of rates” do not correspond to the market prices, or even do not reflect the steep increase in the cost of labour in the past few years.



48

14. The expected expenditure was met in the first quarter of FY14, but fell slightly short of what was expected in the second quarter. The third quarter expenditure will be close to expectation. The expenditure in the fourth quarter is expected to be INR 140 crores, more than the target of INR 93 crore. Overall, expenditure in FY14 will be as anticipated during the MTR.

15. However, the entire result of this improved expenditure is yet not visible as far as disbursement is concerned. Following is a summary of the actual and currently estimated disbursement versus the estimate made at the MTR.

Table A5.4: Current Disbursement Actuals and Estimates (February 2014) Compared to the MTR Estimates (June 2013)

Originally Estimated Disbursement (USD m)

Up to FY13 Actual FY14-Q1

Actual FY14-Q2

FY14-Q3 FY14-Q4

80.40 21.38 11.87 4.55 9.10 Expected Expenditure (INR Cr) – Confirmed in the MTR Mission

Total (INR Cr) 186.27 24.71 spent

against a target of

21.38

50.87 spent

against a target of

56.35

89.12 spent by February against

target of 121.29. Remaining will be achieved in

March 2014

Expected that the target of

93.30 will be met

National 50.51

Gujarat 64.97

Odisha 46.49

West Bengal 24.27

Disbursement (USD m) Actual & Expected 40.87

1.31 + DA Adjustment

(3.20)

4.54 + DA Adjustment

(7.05)

4.5+2.8+7.2 = 14.5 +DA Adjustment

(15.76)

Full Expected

(18.36) Disbursement Lag (USD m) Actual & MTR Estimate - 39.53

- 61.68 - 69.01 Current – 69.72 Expected – 60.72

(- 52.66)

- 56.88 (- 43.40)

Disbursement Lag (month) Actual & MTR Estimate

9 months 15 months (16 months)

15 months (17 months)

Currently 17 Months, should

become 13 months after Q3 FY14 (11 months)

Possible 10 months after

Q4-FY14 (9 months)

16. The reason for all expenditure not translating directly in disbursement is that starting late Q1-FY14, DEA and Bank agreed (with respect to the India Portfolio) to adjust reimbursement claims to reflect against the DA. Consequently, an amount of US$ 3.8 million was not forwarded by DEA/CAAA for reimbursement from the World Bank.

17. As per the DEA/CAAA, the current amount unadjusted against DA is US$6.2 million. Therefore, in Q3 and Q$ of FY14, small reductions in disbursement is expected (to the tune of US$1 million) when compared with project expenditure. The project has committed to a disbursement of US$15 million during the Q3 FY14, and due to the said adjustment by CAAA, the actual disbursement could be slightly lower, say, US$14 million.

18. There is reason (as per the contract commitments) that the disbursement target in Q4-FY14 will be achieved. The risk will be the current uncertainty about the ceiling cost of the project, which will need to be resolved by MoEF and the GC of SICOM latest by March 2014.

19. The expected disbursement in FY15, as per the MTR estimates were as follows (see Table A5.7):

a. Q1-FY15: Between US$ 12.56 million and US$ 20.58 million

b. Q2-FY15: Between US$ 15.87 million and US$ 19.91 million

c. Q3-FY15: Between US$ 15.32 million and US$ 17.57 million

d. Q4-FY15: Between US$ 11.20 million and US$ 12.76 million

e. Total FY15: Between US$ 54.97 million and US$ 70.81 million



49

20. During the current mission, reexamination of the expected disbursement profile was undertaken. Based on this review, there is no change in the expected estimate of expenditure and disbursement (see Table A5.7).

21. However, looking at the current uncertainties in the project – especially the delay in award of contracts owing to the issue of cost ceiling in the project – it appears that the low estimates, rather than higher estimates will actually materialize in FY15.

22. Further, if MoEF (or EFC/CCEA) decides to cap the ceiling cost of the project to any of the Scenario 1 or Scenario 2 (see Paragraph 10 above), there will be a drastic reduction in expenditure and reduction.



50

Table A5.5: Disbursement Performance –February 2013

Disbursement by Quarter Cumulative Disbursement

Quarter Original(US$) By FY

(US$ m) REVISED

FY Projection

Actual(US$) By FY

(US$ m)

Original (US$ m)

ACTUAL (US$ m)

Forecast (Original)

Forecast (Revised)

ACTUAL

Q2-FY-2011 - - 11,007,229

- 11.01 - - -

Q3-FY-2011 2,580,000 - - 2.58 11.01 1.16% - 4.96%

Q4-FY-2011 5,150,000 7.73 - 15.0 1,590,444 12.60 7.73 12.60 3.48% - 5.68%

Q1-FY-2012 11,590,000 - 979,809 19.32 13.58 8.70% - 6.12%

Q2-FY-2012 6,430,000 - 847,033 25.75 14.42 11.60% - 6.50%

Q3-FY-2012 4,040,000 - 2,011,457 29.79 16.44 13.42% - 7.40%

Q4-FY-2012 8,080,000 30.14 - 10.0 1,498,108 5.34 37.87 17.93 17.06% - 8.08%

Q1-FY-2013 18,180,000 - 2,809,068 56.05 20.74 25.25% - 9.35%

Q2-FY-2013 10,100,000 - 3,603,366 66.15 24.35 29.80% - 10.97%

Q3-FY-2013 4,750,000 - 8,833,616

70.90 33.18 31.94% - 14.95%

Q4-FY-2013 9,500,000 42.53 - 20.0 5,604,309 20.85 80.40 38.78 36.22% - 17.47%

Q1-FY-2014 21,380,000 - 1,315,741 101.78 40.10 45.86% - 18.07%

Q2-FY-2014 11,870,000 - 4,535,877

113.65 44.64 51.20% - 20.10%

Q3-FY-2014 4,550,000 - 4,525,145 + 10 million expected

118.20 Expected

59.16 53.25% - 22.15%

Q4-FY-2014 9,100,000 46.90 -

44.37 +18.7 million

127.30 Expected

77.87 57.35% -

Expected 35.08%

Q1-FY-2015 20,480,000 -

147.78 66.58% -

Q2-FY-2015 11,370,000 -

159.15 71.70% -

Q3-FY-2015 4,550,000 -

163.70 73.75% -

Q4-FY-2015 9,100,000 45.50 - 65.0

172.80 162.75 77.85% -

Q1-FY-2016 20,480,000 -

193.28 87.08% -

Q2-FY-2016 11,370,000 -

204.65 92.20% -

Q3-FY-2016 5,190,000 -

209.84 94.54% -

Q4-FY-2016 12,120,000 49.16 -

221.96 100.00% -

TOTAL 221,960,000 221.96 49,161,202

221.96 49.16 100.00% 100.00% 22.15%



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Table A5.6: Progress on Procurement – as of February 15, 2013

Page 1/2


Total Procurement Total Contracts

Awarded by MTR (July 2014)

Total Contracts Already Awarded by January 2014

Contracts to be Awarded after

April 2014 (January 2014 as

per MTR)

Contracts to be Awarded after

MTR and before March 31, 2014

Contracts Awarded Since

MTR

MTR Agreed Contracts NOT

AWARDED

(A) (B) (C) (D) (E) = (A)-(B)-(D) (F) = (C) - (B) (G) = (E) – (F)

N INR Lakh N INR Lakh N INR Lakh N INR Lakh N INR Lakh N INR Lakh N INR Lakh

Overall Project

Total 706 120,464.64 376 51,944.30 481 78,709.96 29 17,106.83 301 52,480.76 105 26,765.66 196 25,715.10

Goods & Equipment 328 22,064.93 217 7,807.00 258 14,629.24 - - 70 7,435.69 41 6,822 70 5,074.52

Works; S & I; CC 183 75,689.78 70 34,025.00 105 48,659.72 2 10,500 76 16,530.06 35 14,635 76 18,002.18

Consultancies 129 14,514.03 60 5,480.10 76 7,236.10 18 6,037 35 1,241.10 16 1,756 35 2,806.50

Comm. Contracts 66 8,195.90 29 4,632.20 42 8,184.90 9 570 15 (559.00) 13 3,553 15 (168.10)


Total 139 28,019.34 54 9,707.50 79 15,226.33 14 4,809.83 71 11,671.79 25 5,518.83 46 6,152.96

Goods & Equipment 60 7,310.23 28 850.50 40 2,253.57 - - 32 5,056.66 12 1,403 20 3,653.59

Works; S & I; CC 29 14,643.58 11 7,588.60 17 11,277.19 1 2,500.00 17 4,555.00 6 3,689 11 866.41

Consultancies 32 5,038.03 9 1,027.40 12 1,038.07 5 1,939.83 18 2,060.13 3 11 15 2,049.46

Comm. Contracts 18 1,027.50 6 241.00 10 657.50 8 370.00 4 - 4 417 - (416.50)


Total 175 35,974.70 129 20,222.40 147 27,734.90 6 9,513.00 40 8,031.30 18 7,512.50 22 518.80

Goods & Equipment 98 5,681.50 90 2,877.80 90 4,526.50 - - 8 1,155.00 - 1,649 8 (493.70)

Works; S & I; CC 34 25,872.80 15 13,371.30 24 17,116.30 1 8,000.00 18 5,647.00 9 3,745 9 1,902.00

Consultancies 26 2,160.10 13 719.50 18 2,072.50 5 1,513.00 8 160.00 5 1,353 3 (1,193.00)

Comm. Contracts 17 2,260.30 11 3,253.80 15 4,019.60 - - 6 1,069.30 4 766 2 303.50


Total 267 24,539.80 146 9,976.10 200 20,606.43 4 860.00 117 12,597.57 54 10,630.33 63 1,967.24

Goods & Equipment 115 7,542.30 70 3,407.70 99 7,178.17 - - 45 4,778.30 29 3,770 16 1,007.83

Works; S & I; CC 92 11,422.80 40 3,449.10 56 8,520.23 - - 52 8,012.60 16 5,071 36 2,941.47

Consultancies 46 3,990.90 29 2,632.20 34 2,965.53 4 860.00 13 165.37 5 333 8 (167.96)

Comm. Contracts 14 1,583.80 7 487.10 11 1,942.50 - - 7 (358.70) 4 1,455 3 (1,814.10)


Total 125 31,930.80 47 12,038.30 55 15,142.30 5 1,924.00 73 20,180.10 8 3,104.00 65 17,076.10

Goods & Equipment 55 1,530.90 29 671.00 29 671.00 - - 26 906.80 - - 26 906.80

Works; S & I; CC 28 23,750.60 4 9,616.00 8 11,746.00 - - 24 14,422.30 4 2,130 20 12,292.30

Consultancies 25 3,325.00 9 1,101.00 12 1,160.00 4 1,724.00 12 2,177.00 3 59 9 2,118.00

Comm. Contracts 17 3,324.30 5 650.30 6 1,565.30 1 200.00 11 2,674.00 1 915 10 1,759.00



52

Table A5.6: Progress on Procurement – as of February 15, 2013

(Continued) Page 2/2


Total Procurement

Total Contracts

Already Awarded

by January 2014

MTR Agreed

Contracts NOT

AWARDED

Of These Remaining Contracts (G) the Status on February 15, 2014

Bid Evaluation Complete. Ready

for award.

Bid Received, Evaluation

Underway. Likely to be awarded by early March 2014

Bid Advertised, Bids to be

Received & to be awarded by 31st

March 2014

Bids not Advertised by

February 15, 2014

(A) (C) (G) = (E) – (F) (G1) (G2) (G3) (G4)

N INR Lakh N INR Lakh N INR Lakh N INR Lakh N INR Lakh N INR Lakh N INR Lakh

Overall Project

Total 706 120,464.64 481 78,709.96 196 25,715.10 35 14,637.37 13 4,156.85 32 8,904.25 84 14,616.23

Goods & Equipment 328 22,064.93 258 14,629.24 70 5,074.52 15 3,468.36 3 533.80 12 3,614.20 26 915.47

Works; S & I; CC 183 75,689.78 105 48,659.72 76 18,002.18 15 10,270.51 8 1,630.05 19 5,270.05 20 9,292.30

Consultancies 129 14,514.03 76 7,236.10 35 2,806.50 3 595.00 2 570.00 1 20.00 28 4,072.46

Comm. Contracts 66 8,195.90 42 8,184.90 15 (168.10) 2 303.50 - 1,423.00 - - 10 336.00


Total 139 28,019.34 79 15,226.33 46 6,152.96 7 2,112.20 - 70.00 19 6,565.00 13 2,004.46

Goods & Equipment 60 7,310.23 40 2,253.57 20 3,653.59 6 2,087.20 - 70.00 7 2,905.00 - -

Works; S & I; CC 29 14,643.58 17 11,277.19 11 866.41 - - - - 11 3,640.00

Consultancies 32 5,038.03 12 1,038.07 15 2,049.46 1 25.00 - - 1 20.00 13 2,004.46

Comm. Contracts 18 1,027.50 10 657.50 - (416.50) - - - - - - - -


Total 175 35,974.70 147 27,734.90 22 518.80 16 2,920.50 1 500.00 3 400.00 1 1,000.00

Goods & Equipment 98 5,681.50 90 4,526.50 8 (493.70) 5 1,155.00 - - 3 400.00 - -

Works; S & I; CC 34 25,872.80 24 17,116.30 9 1,902.00 8 902.00 - - - - 1 1,000.00

Consultancies 26 2,160.10 18 2,072.50 3 (1,193.00) 1 560.00 1 500.00 - - - -

Comm. Contracts 17 2,260.30 15 4,019.60 2 303.50 2 303.50 - - - - - -


Total 267 24,539.80 200 20,606.43 63 1,967.24 11 5,604.67 11 2,093.85 10 1,939.25 7 28.67

Goods & Equipment 115 7,542.30 99 7,178.17 16 1,007.83 4 226 3 463.8 2 309 - 8.67

Works; S & I; CC 92 11,422.80 56 8,520.23 36 2,941.47 6 5,369 8 1630.05 8 1,630 - -

Consultancies 46 3,990.90 34 2,965.53 8 (167.96) 1 10 0 0 - - 7 20.00

Comm. Contracts 14 1,583.80 11 1,942.50 3 (1,814.10) - - 0 0 - - - -


Total 125 31,930.80 55 15,142.30 65 17,076.10 1 4,000.00 1 1,493.00 - - 63 11,583.10

Goods & Equipment 55 1,530.90 29 671.00 26 906.80 - - - - - - 26 906.80

Works; S & I; CC 28 23,750.60 8 11,746.00 20 12,292.30 1 4,000.00 - - - - 19 8,292.30

Consultancies 25 3,325.00 12 1,160.00 9 2,118.00 - 1 70.00 - - 8 2,048.00

Comm. Contracts 17 3,324.30 6 1,565.30 10 1,759.00 - - - 1,423.00 - - 10 336.00



53

Table A5.7: Expenditure & Disbursement Projections

Component Expenditure Head

Estimated Contract

Amount as per PP

Contracted Amount for

actual contracts awarded

Difference of Contract Price and Estimates

Estimated Cost of

Contracts to be

awarded

Actual for Awarded + Estimates for Other Contracts

Payments Made up to 31st March

2013

Total expenditure

to be incurred

after March 2013

National

Works 15,581.08 7,664.13 -8.59 7,672.72 15,572.49 3,057.13 12,515.36

Goods 7,400.23 754.69 -38.12 792.81 7,362.11 461.54 6,900.57

Consultancy 5,038.03 679.92 -271.48 951.40 4,766.55 102.01 4,664.54

Delivery Linked IOC - - - - 10,177.16 1,141.90 9,035.26

Project Management IOC - - - - 2,863.62 405.45 2,458.17

Total 28,019.34 9,098.74 -318.19 9,416.93 40,741.93 5,168.03 35,573.90

Gujarat

Works 28,133.16 15,934.71 3,293.06 12,641.65 31,426.22 3,640.67 27,785.55

Goods 5,681.51 2,923.70 1,693.28 1,230.42 7,371.79 704.18 6,640.51

Consultancy 2,160.14 719.54 -5.07 724.61 2,155.07 515.24 1,639.83

Delivery Linked IOC - - - - - - -

Project Management IOC - - - - - - -

Total 35,974.81 19,577.95 4,981.27 14,596.68 40,953.08 4,860.09 36,065.89

Odisha

Works 12,398.11 323.11 22.29 300.82 12,420.40 1,176.11 10,924.29

Goods 8,140.76 3,081.07 154.00 2,927.07 8,294.76 1,235.27 7,057.49

Consultancy 3,990.92 2,479.25 24.58 2,454.67 4,010.50 1,333.74 2,676.76

Delivery Linked IOC - - - - 2,126.45 260.09 1,866.36

Project Management IOC - - - - 2,089.28 461.69 1,627.59

Total 24,529.79 5,883.43 200.87 5,682.56 28,941.39 4,466.90 24,152.49

West Bengal

Works 25,000.50 9,675.74 -988.58 10,664.32 24,074.66 1,083.49 22,991.17

Goods 1,530.93 813.25 74.13 739.12 1,559.66 632.80 926.86

Consultancy 3,125.03 1,252.60 172.57 1,080.03 3,227.60 260.20 2,967.40

Delivery Linked IOC - - - - - 548.20 1,704.88

Project Management IOC - - - - - 412.06 1,600.56

Total 29,656.46 11,741.59 -741.88 12,483.47 28,861.92 2,936.74 30,113.91

Overall Project

Works 81,112.85 33,597.69 2,318.18 31,279.51 83,493.77 8,957.40 74,216.37

Goods 22,753.43 7,572.71 1,883.29 5,689.42 24,588.32 3,033.79 21,525.43

Consultancy 14,314.12 5,131.31 -79.40 5,210.71 14,159.72 2,211.19 11,948.53

Delivery Linked IOC - - - - 12,303.61 1,950.19 12,606.50

Project Management IOC - - - - 4,952.90 1,279.20 5,686.32

Total 118,180.40 46,301.71 4,122.07 42,179.64 139,498.32 17,431.76 125,906.19

Disbursement Scenarios (Definitions)

Best Case - No slippage from procurement schedule for all contracts, and all contracts milestones

Second Best - Some slippage from procurement schedule, but no slippage on contract milestones

Most Probable - Substantial slippages on procurement schedule, some recovered through improved contract management

Low Case - Substantial slippages on procurement schedule; low recovery through contract management

Lowest Deemed Case - Substantial slippages on procurement schedule, and very low recovery through contract management



54

(Continued/Page 2) Table A5.7: Expenditure & Disbursement Projection


Total expenditure

to be incurred

after March 2013

Q4-FY13 Up to FY13

Q1-FY14 Q2-FY14 Q3-FY14 Q4-FY14 FY14

National

Works 12,515.36 139.03 3,196.16 465.07 697.01 1,318.18 1,556.80 4,037.06

Goods 6,900.57 196.44 657.98 139.85 1,195.88 614.10 2,179.43 4,129.26

Consultancy 4,664.54 18.52 120.53 72.01 140.31 562.87 1,128.47 1,903.66

Delivery Linked IOC 9,035.26 249.96 1,391.86 749.87 749.87 749.87 795.98 3,045.59

Project Management IOC 2,458.17 68.84 474.29 206.53 206.53 206.53 217.42 837.01

Total 35,573.90 672.79 5,840.82 1,633.34 2,989.61 3,451.54 5,878.10 13,952.59

Gujarat

Works 27,785.55 345.68 3,986.35 1,177.24 2,441.39 5,198.48 4,897.38 13,714.51

Goods 6,640.51 26.47 730.65 238.19 2,845.73 2,714.44 14.68 5,813.04

Consultancy 1,639.83 - 515.24 72.02 310.55 540.14 265.85 1,188.56

Delivery Linked IOC - - - - - - - -

Project Management IOC - - - - - - - -

Total 36,065.89 372.14 5,232.23 1,487.46 5,597.67 8,453.06 5,177.91 20,716.11

Odisha

Works 10,924.29 218.15 1,394.26 724.96 1,228.71 1,861.92 1,661.20 5,476.79

Goods 7,057.49 72.81 1,308.08 423.55 914.79 2,787.55 733.58 4,859.46

Consultancy 2,676.76 140.08 1,473.82 437.55 383.01 261.97 519.60 1,602.14

Delivery Linked IOC 1,866.36 44.54 304.63 133.63 133.63 133.63 149.25 550.14


Total 24,152.49 431.04 4,897.94 1,586.06 2,526.51 4,911.44 2,914.38 11,938.39

West Bengal

Works 22,991.17 472.44 1,555.93 1,617.98 3,228.30 5,445.73 4,679.11 14,971.11

Goods 926.86 4.47 637.27 50.11 547.46 87.70 42.36 727.63

Consultancy 2,967.40 33.37 293.57 100.11 139.56 168.38 386.98 795.03



Total 30,113.91 510.28 3,447.02 1,999.06 4,146.19 5,932.67 5,354.70 17,432.63

Overall Project

Works 74,216.37 1,175.30 10,132.70 3,985.25 7,595.41 13,824.31 12,794.49 38,199.47

Goods 21,525.43 300.18 3,333.97 851.71 5,503.86 6,203.78 2,970.05 15,529.39

Consultancy 11,948.53 191.97 2,403.16 681.70 973.43 1,533.36 2,300.90 5,489.39

Delivery Linked IOC 12,606.50 334.20 2,284.39 1,002.60 1,002.60 1,002.60 1,072.27 4,080.07

Project Management IOC 5,686.32 153.72 1,432.92 461.16 461.16 461.16 478.76 1,862.23

Total 125,906.19 1,986.25 19,418.02 6,705.92 15,259.97 22,748.72 19,325.09 64,039.71

Disbursement Scenarios (in US Dollars)

Best Case

4.12 38.74 4.12 8.68 28.52 24.97 79.99

Second Best

4.12 38.74 3.92 8.49 20.49 27.20 60.10

Most Probable

4.12 38.74 3.51 8.22 19.79 25.77 57.29

Low Case

4.12 38.74 3.20 7.43 18.40 22.77 51.79

Lowest Case

4.12 38.74 3.20 7.05 15.76 18.36 44.37



55



Total expenditure

to be incurred

after March 2013

Up to FY13

FY14 Q1-FY15 Q2-FY15 Q3-FY15 Q4-FY15 FY15

National

Works 12,515.36 3,196.16 4,037.06 1,693.10 1,643.12 1,552.09 1,242.97 6,131.28

Goods 6,900.57 657.98 4,129.26 1,755.82 83.98 174.86 560.21 2,574.87

Consultancy 4,664.54 120.53 1,903.66 1,063.55 962.05 709.48 7.28 2,742.37

Delivery Linked IOC 9,035.26 1,391.86 3,045.59 888.18 888.18 888.18 868.02 3,532.56


Total 35,573.90 5,840.82 13,952.59 5,639.86 3,816.54 3,563.82 2,912.98 15,933.19

Gujarat

Works 27,785.55 3,986.35 13,714.51 3,436.57 2,744.26 2,306.84 2,160.36 10,648.04

Goods 6,640.51 730.65 5,813.04 801.00 - - - 801.00

Consultancy 1,639.83 515.24 1,188.56 194.55 127.14 50.41 26.70 398.80



Total 36,065.89 5,232.23 20,716.11 4,432.12 2,871.41 2,357.25 2,187.06 11,847.84

Odisha

Works 10,924.29 1,394.26 5,476.79 1,491.14 1,386.58 1,201.13 650.16 4,729.01

Goods 7,057.49 1,308.08 4,859.46 1,168.50 138.51 787.55 3.07 2,097.62

Consultancy 2,676.76 1,473.82 1,602.14 452.43 295.50 61.86 51.06 860.85



Total 24,152.49 4,897.94 11,938.39 3,112.07 1,820.58 2,050.53 704.29 7,687.48

West Bengal

Works 22,991.17 1,555.93 14,971.11 2,735.85 2,249.34 1,257.98 528.15 6,771.33

Goods 926.86 637.27 727.63 89.83 42.37 62.57 - 194.77

Consultancy 2,967.40 293.57 795.03 384.16 382.53 316.70 293.78 1,377.17



Total 30,113.91 3,447.02 17,432.63 3,486.89 2,951.29 1,914.30 1,148.16 9,500.63

Overall Project

Works 74,216.37 10,132.70 38,199.47 9,356.67 8,023.30 6,318.04 4,581.65 28,279.66

Goods 21,525.43 3,333.97 15,529.39 3,815.14 264.85 1,024.97 563.28 5,668.25

Consultancy 11,948.53 2,403.16 5,489.39 2,094.68 1,767.23 1,138.45 378.83 5,379.19

Delivery Linked IOC 12,606.50 2,284.39 4,080.07 1,211.60 1,211.60 1,211.60 1,224.37 4,859.18

Project Management IOC 5,686.32 1,432.92 1,862.23 513.97 513.97 513.97 541.07 2,082.97

Total 125,906.19 19,418.02 64,039.71 16,670.93 11,459.82 9,885.90 6,952.49 44,969.14


Best Case

38.74 79.99 22.18 14.84 12.80 9.00 58.82

Second Best

38.74 60.10 24.37 23.33 20.10 14.71 82.51

Most Probable

38.74 57.29 20.58 19.91 17.57 12.76 70.81

Low Case

38.74 51.79 16.26 17.76 16.40 11.96 62.38

Lowest Case

38.74 44.37 12.56 15.87 15.32 11.22 54.97



56



Total expenditure

to be incurred

after March 2013

Up to FY13

FY14 FY15 Q1-FY16 Q2-FY16 Q3-FY16 and Q4-

FY16 FY16

National

Works 12,515.36 3,196.16 4,037.06 6,131.28 828.00 828.00 552.00 2,207.99

Goods 6,900.57 657.98 4,129.26 2,574.87 - - - -

Consultancy 4,664.54 120.53 1,903.66 2,742.37 - - - -

Delivery Linked IOC 9,035.26 1,391.86 3,045.59 3,532.56 827.68 827.68 551.79 2,207.15


Total 35,573.90 5,840.82 13,952.59 15,933.19 1,880.75 1,880.75 1,253.83 5,015.33

Gujarat

Works 27,785.55 3,986.35 13,714.51 10,648.04 2,033.60 1,034.50 9.23 3,077.33

Goods 6,640.51 730.65 5,813.04 801.00 - - - -

Consultancy 1,639.83 515.24 1,188.56 398.80 23.58 17.33 11.56 52.47



Total 36,065.89 5,232.23 20,716.11 11,847.84 2,057.18 1,051.83 20.79 3,129.80

Odisha

Works 10,924.29 1,394.26 5,476.79 4,729.01 240.40 169.87 90.06 500.33

Goods 7,057.49 1,308.08 4,859.46 2,097.62 27.60 - - 27.60

Consultancy 2,676.76 1,473.82 1,602.14 860.85 39.30 21.13 13.27 73.69



Total 24,152.49 4,897.94 11,938.39 7,687.48 307.30 191.00 103.33 601.63

West Bengal

Works 22,991.17 1,555.93 14,971.11 6,771.33 291.11 291.11 194.07 776.29

Goods 926.86 637.27 727.63 194.77 - - - -

Consultancy 2,967.40 293.57 795.03 1,377.17 293.78 282.99 185.06 761.83



Total 30,113.91 3,447.02 17,432.63 9,500.63 1,009.49 998.69 662.19 2,670.37

Overall Project

Works 74,216.37 10,132.70 38,199.47 28,279.66 3,393.10 2,323.48 845.36 6,561.94

Goods 21,525.43 3,333.97 15,529.39 5,668.25 27.60 - - 27.60

Consultancy 11,948.53 2,403.16 5,489.39 5,379.19 356.66 321.45 209.88 887.99

Delivery Linked IOC 12,606.50 2,284.39 4,080.07 4,859.18 1,249.89 1,249.89 833.26 3,333.04

Project Management IOC 5,686.32 1,432.92 1,862.23 2,082.97 595.27 595.27 396.85 1,587.40

Total 125,906.19 19,418.02 64,039.71 44,969.14 5,254.71 4,122.28 2,040.14 11,417.13


Best Case

38.74 79.99 58.82 6.80 5.34 -14.60 -2.46

Second Best

38.74 60.10 82.51 11.17 8.78 -26.21 -6.25

Most Probable

38.74 57.29 70.81 9.71 7.57 -9.02 8.26

Low Case

38.74 51.79 62.38 9.05 7.05 6.09 22.18

Lowest Case

38.74 44.37 54.97 8.41 6.60 22.00 37.01

Annex 6

Detailed List of Agreed Actions

57

1. The main text of the Aide Memoire presents (in Section J, paragraph 47-48) the major agreements. During the MTR several other smaller agreements were reached, which were not fully completed at the time of the Sixth Implementation Review mission. Consequently, there is an urgent need to complete these actions as soon as possible. All these agreements (major or minor) are described below.

Table A6.1. Agreements on the Overall Project (All Components)

Issues MTR Agreements during MTR [Due Date]

Status of the Actions Agreed at MTR

Agreements on Next Steps (Sixth Implementation Review Mission)

Responsibility Due Date

Implementation Delays: Several activities in the Project were delayed compared to original schedule.

All activities (even with the past delay) could still be completed by December 2014, or latest by March 2015. There is a clear need to maintain recent improvement in project performance.

Mid-Term Evaluation Reports from SICOM and SPMUs suggested a few small deletion of activities, without affecting the Project Objectives and targets for beneficiaries. All were agreed by the World Bank. SICOM GC to formally endorse these. [August 31, 2013]

These deletions were presented to SICOM GC at the 6th and the 7th GC meeting. GC has advised further scrutiny, which is pending.

These decisions may be taken together with the approval of the Revised Procurement Plan (subject to EFC/CCEA approval of increased project cost in INR terms - see below).

GC of SICOM.

March 31, 2014

The above deletions (or reduction of scope of activities) will be reflected in the Revised Procurement Plan. [September 30, 2013]

Approval of the GC on the Revised Procurement Plan (draft prepared in October 2013) is pending (due to the issue of increase of the overall project cost).

MoEF and SICOM GC needs to take a quick decision regarding the issue of increase of project cost (see below). Based on this, the Revised Procurement Plan will need to be approved by the SICOM GC.

SICOM (with approval from MoEF and GC)

As per EFC decision (see below)

No procurement award will be made in the project after December 2013 (except for the MRCI works in Gujarat, and several agreed consultancies/studies). [Monthly -December 30, 2013]

Based on requests from West Bengal and Odisha, DEA and SICOM/MoEF agreed to move the deadline to March 31, 2014.

SICOM will communicate clearly (as agreed in the 6th and the 7th GC meeting) to all PEAs and SPMUs that (i) other than for exceptions already listed, no award should be made for all items listed in the approved Procurement Plan (dated May 2013) after March 2014; (ii) the procurement process of all items of the approved Procurement Plan dated May 2013, except for the cases of national shopping and the agreed list of exceptions, where bids have not been advertised by February 15, 2014 should be discontinued, as there contracts cannot be awarded before March 31, 2014.

SICOM February 28, 2014.

[The deadline for award of contracts, other than for the list of agreed exceptions is March 31, 2014]



58





Focus on timely completion of contracts already awarded (worth US$ 140 m), and ensure that no slippage in contract progress happens. [Monthly -March 31, 2014]

SPMUs, PEAs and NPMU have undertaken several activities to ensure that contracts progress without slippage.

NPMU, PEAs and SPMUs to continue close monitoring of the performance of contracts.

NPMU and SPMUs will identify a list of major contracts (cost-wise), to be reviewed monthly, starting from April 2014.

SICOM, all SPMUs, all PEAs

Monthly –June 30, 2014

Slow Disbursement: Current disbursement remains lower than originally anticipated (US$39 m compared to US$80 anticipated at approval of the project). Although disbursement in FY13 (US$21m) has been an improvement, this is yet not able to bridge the disbursement lag created due to earlier slow implementation.

Project should aim to implement without any delay the current annual plan for FY13-14 which envisages an expenditure of INR 480 crores. The desired and minimum disbursement estimate for FY14 is US$ 57m and US$ 45m respectively. [Quarterly-December 30, 2013]

Project expenditure during the months of July-October had been as expected (meeting the low estimates). Project expenditure during November 2013 -January 2014 has been lower than the low estimates for the month (mainly due to the decisions to withhold award of contracts; and some cash flow issues). Consequently, only the low estimate of disbursement appears likely to be met.

MoEF to ensure that the cash flow needs of March 2014 (about Rs.41 crore) to be met.

MoEF and SICOM GC to allow the PEAs (of national Component) and the SPMUs to award the contracts which are pending due to the uncertainties regarding overall increase in project cost.

NPMU, SPMUs and PEAs to ensure that the monthly expenditure targets for February to June are met [but this is dependent on MoEF and SICOM GC agreeing to permit award of contracts in view of the overall increase of the project cost]

SICOM (with approval from MoEF and GC) and All SPMUs

Quarterly-June 30, 2014

Monitoring and ensuring that all agreed procurement actions are completed as per the procurement schedule agreed in February 2013; including close monitoring of intermediate steps for procurement. [Monthly -September 30, 2013]

SICOM and SPMUs had partial success in completing procurement as per the approved procurement schedule. [Odisha had a cyclone, which meant a period 3 months of disruption].

All awards for items included in the Approved Procurement Plan dated May 2013 (except the list of agreed exceptions) should be completed by March 31, 2014.

Procurement process for the contracts which cannot be awarded by March 31, 2014 should be discontinued.

SICOM and All SPMUs

Monthly -March 31, 2014

World Bank to revise and communicate the Value thresholds and prior-review thresholds for procurement of works, goods and services. [June 15, 2013.]

Completed on June 17, 2013. These were reflected in the Revised Procurement Manual of the Project in November 2013.

No further actions needed. - -



59





Price and Physical variation: The initial estimates of physical and price variation were $6.24m and $20.87m respectively. The procurement plan items alone have experienced price variation of $23m by March 2013. Current physical variation is $ 6m. These already use the planned contingencies (in INR). Further physical variations have been proposed.

Additional list of physical variation, indicating the order of priorities will be prepared and submitted for SICOM GC and State Government approval. [August 15, 2013]

This list of additions and physical variations was presented to the 6th and 7th meeting of the GC.

No further actions needed (other than including these in the new revised procurement plan after approval of increased project cost).

- -

The project was planned for US$285.67 m (with World Bank reimbursing US$222 m @77.7%). Based on the currency rate fluctuation, additional physical variations proposed by the 3 SPMUs and SICOM up to an amount of INR 360 crore can be added within the project size (US$285.67m). [August 31, 2013]

Although the project size is US$285.67 m (or about INR 1775 crore at the current exchange rate), SICOM has the approval within a ceiling of INR 1153 crore (contingency amounts were not initially approved by EFC/CCEA); and therefore cannot approve any more award of contracts (even if the expected revised project cost now is near about INR 1800 crore).

SICOM through MoEF will submit requisite documentation to EFC/CCEA for approval of the revised project cost.

In the meantime, SICOM GC and MoEF may decide to permit the national level PEAs (NCSCM in particular) and the SPMUs to award the contracts which are pending for some time (within the ceiling of 20%), such that these contracts could be awarded before the “period of election code of conduct” (expected to start by around March 10, 2014).

MoEF / SICOM GC

February 25, 2014 (for submission to EFC); March 13, 2014 (for receiving EFC clearance).

Interim approval for the contracts awaiting award by February 25, 2014.

MoEF/SICOM GC shall review and approve the list of additional physical variation, based on information provided by SICOM and the 3 SPMUs.[ August 31, 2013]

MoEF and SICOM GC decided that such approval is not possible without approval for increased project budget from EFC/CCEA.

-As above -

Once approved by SICOM GC, the additional items should be reflected in the next revision of the Procurement Plan, and submitted to Bank for no-objection. [September 30, 2013]

A draft of the Revised Procurement Plan was prepared in October 2013, but could not be approved due to reasons described above.

In the event EFC approval on the increase in project cost is obtained, SICOM GC may approve the Revised Procurement Plan subject to the following additional safeguards for the all new or reinserted (after deletion due to the March 31, 2014 deadline):

• Implementation of these activities should be completed by September 2015

• Activities should include provisions for AMC/CMC, and all operation and maintenance cost including AMC/CMC




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should be paid by the States outside the project budget.

• States to guarantee that payment for all contracts (if not finished by September 2015) that cannot be claimed before December 2015 will be made by the State.

Need to reaffirm objectives of the project among all PEAs. Many PEA officials are not aware of the purpose and objectives of the project (possibly owing to staff turnover issues); and are implementing the project activities in routine sector-specific manner.

SICOM to take lead and organize orientation of all new staff of PEAs. SICOM should depute a team consisting of communication specialists and subject specialists to organize monthly review meetings and quarterly orientation sessions with all PEAs. [Monthly -December 31, 2013]

Although there was no organized re-orientation or orientation training, there had been a series of interactions between SICOM and the PEAs and SPMUs. SICOM technical specialists participated in regular review meetings. SICOM communication cell being understaffed could not participate.

SICOM to augment its communications cell (absence of the properly functioning communication cell will affect the implementation of the project more in the coming months when outputs start pouring in from the “hazard line mapping”, and from the different stages of preparation of ICZM plans). Before communication for supporting the larger goals of the project is launched, the augmented communication cell may focus on orientation and re-orientation training.

SICOM (Communication Cell)

Monthly -December 31, 2014

Additional round of dissemination of project objectives, scope of the project including the very important “integration objectives”. [September 30, 2013]

Gujarat and Odisha SPMUs undertook an additional round of dissemination (including organization of a series of workshops) by December 2013. Both are focusing more on the “integration objectives”.

West Bengal SPMU to undertake an additional round of dissemination of project objectives, scope of the project including the very important “integration objectives”.

West Bengal SPMUs

March 31, 2014

Budget and annual plan of expenditure in FY13-14. The current budget allocation is only INR 125 crores although the planned expenditure is INR 480 crores. The current contract

MoEF/SICOM GC needs to facilitate sufficient budget release to SICOM (including for onward fund flow to SPMUs). The current plan for seeking additional budget at RE stage (November 2013) is not sufficient. The current budget is sufficient to pay for contracts up to September 2013, and additional budget is required starting from September 2013. [November

For the Fiscal Year 2013-14, the total fund available was seen to be adequate. Overall, INR 200 crore was made available to the project till January 2014. However, since November 2013, the availability of funds had been reduced. After follow-up by SICOM, the MoEF is now releasing funds from a month-to-month basis. Given the current situation, the shortfall is about INR 50 crore. Unless this money is made available, contracts payments

MoEF may ensure that the requisite funds to service the ongoing contracts and IOC for the Month of March 2014 are available. [The low estimate of this shortfall in March 2014 is INR 41 crore).

Budget request of INR 140 crore had been made for the project for the period of April-June 2014. MoEF to reconfirm that such budget has been approved. MoEF may release the entire amount to SICOM, as the estimated expenditure during April-June 2014 exceeds INR 140 crore.

SICOM GC / MoEF

March 01, 2014

March 01, 2014 (based on the approved interim budget)



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commitments cannot be serviced.

30, 2013] cannot be made in March 2014. MoEF needs to make provision for the budget of an additional INR 325 crore for the remaining of the Financial Year 2014-15, as the estimated expenditure for the project for the entire year will be between INR 416 core (low estimate) and INR 497 crore (medium estimate).

June 15, 2014 (or as per the budget process)

Table A6.2. Additional Specific Agreements on Component 1 (National Component)





Completing the Mid-Term Evaluation Report(s). There is a delay in preparing and sharing the MTE Report for the national component and for the project as a whole.

SICOM will prepare and share with World Bank, the Mid-Term Evaluation report for Component 1. [June 2013.]

Completed in June 2013. No further action. - -

Review comments on SICOM’s mid-term evaluation report will be shared with SICOM. [Within 7 days from receiving the Report from SICOM.] [June 27, 2013.]


Based on Mid-Term Evaluation Reports for all 4 components of the Project, a consolidated overall mid-term evaluation report will be prepared and shared with the World Bank (and also on the websites of the 4 implementing agencies). [July 10, 2013.]

Completed in July, 2013. No further action. - -



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Capacity of the SICOM: Several positions at SICOM remain vacant; and there is need for additional capacity. The most important issues are: (i) absence of an additional project director, (ii) absence of the head of HR and administration functions, (iii) non-performance of the communication unit, (iv) lack of an HR appraisal system, and (v) additional requirement of subject specialists.

An additional project director should be appointed to support the National Project Director. This has already been much delayed in spite of repeated agreements. [August 31, 2013]

Additional Project Director has joined in December 2013.

No further action. - -

A senior officer/professional to be recruited to head the administration and HR function (potentially through the HR services agency). [August 31, 2013]

Not initiated. SICOM GC has advised that a new head of the administration and HR function is not required at this stage. World Bank agreed that it is too late to appoint such a head of administration and HR (even if initiated now, s/he may join only by June 2014).

If SICOM receives approval for continuation beyond the closing date of the current project (December 2015), which is expected along with the EFC approval of the revised cost, SICOM will quickly initiate the process of recruitment of the head of the administration and HR functions.

SICOM June 30, 2014

HR systems including performance appraisal processes should be established. For this, SICOM will hire HR consultants’ services. [September 30, 2013]

This was initiated in July 2014; but procurement process took a long time. Contract award expected in February.

SICOM to ensure no further delay in award of this contract.

SICOM February 28, 2014

The entire communication cell is defunct. At least 2 more staff including a head of communication cell should be appointed (through the HR services agency). [August 31, 2013]

Not initiated. SICOM has opined that the new staff at this point of time may not be useful for the project. However, looking at the importance of communication in relation to the objectives of the project, the need is more acute now than ever.

SICOM should ensure that professionals (individuals) are in place (even if on short contract basis) to be able to launch communication activities before outputs from ‘hazard line’ and similar other important activities where clear communication is important is available.


Additional professional staff, if approved by SICOM GC to be recruited (through the HR services agency). [September 30, 2013]

SICOM decided that additional professionals now are not useful to the project. This will not receive GC approval unless permitted by EFC/CCEA.




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ICZM Plan process guidelines: The draft guidelines need to be finalized, and communicated to the states.

NCSCM has undertaken substantial efforts in recent months to prepare the guidelines. NCSCM to finalize the guidelines, including incorporating World Bank comments related to (i) inserting assessment of the environmental and social impacts of the plan itself, and (ii) generation of resources and money for conservation of the ecological resources. [August 31, 2013.]

Draft guidelines were prepared. National and international level peer review process completed. A revised draft has been prepared. World Bank comments had been incorporated.

The Revised Draft Guidelines have been shared with the project states.

NCSCM and SICOM will now organize formal consultation with all coastal states and union territories (governments and the stakeholder groups).

[This does not delay the 3 project states, who can go ahead in the process of ICZM plans for the identified stretches taking into consideration the ideas and elements included in the revised draft of the guidelines).

NCSCM / SICOM

June 30, 2014 (with an aim to finalize the Guidelines for use in the entire country by July 2014).

Expert Panel on ICZM Planning: While preparation and adoption of ICZM Plans is the work of the State Governments, there is a need to engage internationally renowned experts (other than who are already engaged) to advise the officials of the States with case studies of successful implementation elsewhere in the World.

NCSCM will identify a list of international experts along with a list of the best known success stories of adoption and implementation of the ICZM approaches. In discussion with SICOM, a panel of experts will be contracted to advise the state teams engaged in preparation and adoption of ICZM plans. [December 31, 2013]

A number of names identified. No one contracted yet.

NCSCM will identify a list of international experts along with a list of the best known success stories of adoption and implementation of the ICZM approaches. In discussion with SICOM, a panel of experts will be contracted to advise the state teams engaged in preparation and adoption of ICZM plans.

NCSCM May 31, 2014

Terms of reference for the expert advisory panel will be prepared, and will include provision of expert support to MoEF on a variety of CRZ cases. [November 30, 2013]

No progress yet. Terms of reference for the expert advisory panel (both national and international experts) will be prepared, and will include provision of expert support to MoEF on a variety of CRZ cases.

NCSCM May 31, 2014



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Mapping of ESAs: NCSCM has started the work in May 2013 as agreed, with an aim to deliver the outputs starting from September 2013, but completion schedule is not clear.

NCSCM should prepare and implement a schedule for completing the ESA mapping works for the entire country, including procurement of consultants (institutions and NGOs). [August 31, 2013]

Schedule prepared. Detailed planning exercises undertaken. A series of expert consultation completed to finalize technical details.

Two contracts are ready for award for mapping (i) turtle nesting grounds; (ii) endemic bird areas. Remaining contracts cannot be initiated in light of the overall cap on the INR spending on the project.

All contracts for ESA mapping should be awarded within a week of the (i) interim approval of MoEF for the contracts awaiting award, or (ii) EFC/CCEA approval of the increased project cost, whichever is earlier and applicable.

NCSCM March 01, 2014 or April 01, 2014.

Implementation delays related to research by partner institutions of NCSCM. As an added activity, given the need and interest in the country, NCSCM will need to undertake additional research on the environmental/ecological impacts from large-scale sea weed cultivation.

NCSCM has reviewed, appraised and agreed to the research proposals from 4 partner institutions. Transferring the first tranche funds for these should be completed without any further delay (also ensuring that these partner institutions implement all agreed financial management norms and standards). [August 31, 2013]

Transfers to the 4 national partner institutions were further delayed, as the issue had to be discussed at the 6th and the 7th meeting of the SICOM GC. The 7th meeting of the SICOM GC agreed that NCSCM may now release the funds. However, availability of funds has become the issue now.

NCSCM should release the funds as soon as possible (and discuss with the 4 national partner institutions the need to use the money as well as complete the research in the quickest possible time).

NCSCM and National Partner Institutions of NCSCM

February 28, 2014

The remaining planned research activities (over and above the current research activities) of NCSCM by itself and through national partner institutions will start immediately, so that the first tranche of funds could be transferred to these partner institutions. [August 31, 2013]

No progress, as there remained doubts about the process of clearance of the research proposals and the funding. Finally clarified at the 7th meeting of the SICOM GC.

NCSCM will now prepare the next round of research proposals in active participation of all the national partner institutions. NCSCM will organize a meeting of the HPSC (June 2014 is now the earliest opportunity) to get approval on the next round of research programs.

NCSCM July 31, 2014



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NCSCM will prepare a plan and schedule for assessing impacts of sea weed cultivation; and share with SICOM and the World Bank. [August 31, 2013]

Completed. Studies (including consulting contracts) initiated. Progress is satisfactory as in January 2014. Substantial outputs expected by April-May 2014.

Based on the results from the study, NCSCM is encouraged to start a process of peer review; and a process of dissemination of the results.

NCSCM June 30, 2014

Implementation progress of MSSRF has not been adequate and needs closer monitoring.

MSSRF has prepared a revised plan showing the expected dates of completion for each of the tasks and sub-tasks. This needs to be closely monitored to ensure that no further delay takes place. [Monthly – up to December 31, 2013]

Completed. The works progressed as planned under good monitoring.

Continue monitoring to avoid any delay. MSSRF and SICOM

Monthly – up to June 30, 2014

Implementation progress of the Dandi ESA (by GEC) needs to be closely monitored to avoid any delay including in the outputs of the consultants preparing the plan.

The consultants need to be supported and encouraged to deliver outputs of high quality in time. Otherwise, it will be impossible to undertake the planned activities during the remaining project period. [Monthly – up to September 30, 2013]

Consultants’ work progressing slowly. To facilitate closer monitoring by GEC, the entire sub-component has been transferred to GEC. However, it is unlikely that plan preparation will be completed by June 2014. [There will be a need to add a component to satisfy the regulatory requirements of the final plan as the ICZM Plan.].

Further, expenditure on this component will now be subject to receiving EFC/CCEA approval for increased project cost.

SICOM will need to fix the final timelines for the different stages of the plan preparation, and the follow-up investments.

SICOM with GEC

March 31, 2014

As far as possible, procurements (based on the plan to be agreed among all stakeholders) to be initiated before December 2013. [December 31, 2013]

It is now unlikely that any procurement for this could happen before June 2014.

Procurement will now be based on the approval by EFC/CCEA. SICOM and GEC will need to take up only those elements which will be completed by September 2014 and are financially sustainable. [This being a part of the national component, it is unlikely that the State will guarantee payments in case of delay.]

SICOM with GEC

December 31, 2014



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National Capacity Building Plan: Although discrete capacity building activities and training programs are being organized, there is a need to revise and prepare a full-fledged National Capacity Building Plan and implement it.

SICOM should prepare a comprehensive national capacity building plan, by revision of the current plan and covering all national and state government officials who are involved in management of the coastal and marine areas. [August 31, 2013]

A revision of the current plan had been drafted. Not yet finalized and approved by the SICOM GC.

SICOM should quickly finalize the revised national capacity building plan.


If needed for the above, SICOM should engage expert consultants. [August 31, 2013]

This was not required. Nil. - -

For implementation of the revised national capacity building plan, SICOM will engage a consultancy firm or institution on a long-term basis. This will be over and above engagement of the NCSCM partner institutions for organizing training and workshops (which are part of the plan). [August 31, 2013]

Two small consultancies were awarded to national institutions of repute (especially for training). But further long-term consultancies will now be subject to (i) finalization of the revised plan; and (ii) approval of increased project cost.

After requisite approvals, SICOM will engage a consultancy firm or institution on a long-term basis. This will be over and above engagement of the NCSCM partner institutions for organizing training and workshops (which are part of the plan).


Monitoring and evaluation processes need augmentation. Recruitment of a suitable evaluation team is delayed, and must be completed.

SICOM will continue regular project monitoring activities including verification of progress of implementation at sub-project sites. [Monthly –December 31, 2013]

SICOM undertook continuous monitoring.

Continue the current level of monitoring. SICOM Monthly –December 31, 2014

Full operation of a comprehensive web-based project monitoring system (after testing is complete in August 2013). All PEAs and SPMUs to be provided hands on training on this. [September 30, 2013]

This has been delayed due to the complexity of the procurement process. Contract is now likely to be awarded by February 28, 2014. Therefore, full operation is expected only by May 2014.

SICOM to ensure (i) no further delay in contract of this consultancy; (ii) that the consultants provide hands-on training to all SPMUs and PEAs on this during the month of May 2014; (iii) that the SPMUs and PEAs share data to be put into the system to make it functional (and not subjected any debate at this stage).

SICOM May 31, 2014



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Procurement of the Evaluation Consultants to be completed by September 2013 (the first Evaluation Report should be available by December 2013). [September 30, 2013]

This is delayed, as the first round of procurement failed. At the second round, the identified institute (IISc) expressed inability to take up this work. Discussions ongoing to select an agency (single-source selection) by end February/early March 2014.

SICOM should ensure that an agency with acceptable qualifications and resources is selected; and the selection process is completed by early March 2014.


Table A6.3. Additional Specific Agreements on Component 2 (Gujarat State Component)





Finalizing the mid-term evaluation reports. Draft reports have been prepared, and need to be finalized incorporating suggestions from the World Bank.

Finalizing the mid-term evaluation report (including the list of activities that should be considered for dropping or reduction in scope). [June 30, 2013. Done.]


A generic template for proposing activities to be expanded or included in the Project should be prepared and shared with the SPMU. [June 15, 2013. Done.]


Preparing a list of activities, in order of priorities of the Governments, that should be considered for expansion or inclusion in the project. [July 15, 2013. Done.]




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Reports from individual PEAs to be revised and finalized (including details of community contracts). [August 15, 2013]


Slow Expenditure; completing procurement; and efficient contract management: Current expenditure remains lower than originally anticipated (INR 64 crore compared to INR 225 crore anticipated at approval of the project). The planned expenditure in FY13-14 is INR 112 crore. This needs to be ensured.

Except for the marine oceanarium and the agreed

[Same as agreed in February 2013] Monitoring and ensuring that the planned procurement including award of community contracts (with cumulative targets of awards worth US$54m by May 2013, US$73m by September 2013, and US$90m by December 2013/ January 2014). [Monthly –December 31, 2013]

SPMU undertook substantial monitoring of procurement performance (and had been able to close the gaps substantially)

Continue to ensure that no award (other than the agreed exceptions) is planned after March 31, 2014.

SPMU and all PEAs

March 31, 2014

SPMU will ensure that all procurements are completed by December 2013, and except for the case of the Marine Oceanrium and the specialized consultancies, no procurement will happen after December 2013. [Monthly – up to December 31, 2013]

Award of contracts have been substantially completed. The remaining contracts are ready to be awarded by March 31, 2014.

[Agreed exceptions such as MRCI and a few consulting studies, and some small shopping will be awarded after March 31, 2014]

Complete award (other than exceptions) by March 2014 (subject to SICOM/MoEF agreeing to such awards).

SPMU and all PEAs

March 31, 2014

[Same as agreed in February 2013] Finalize bidding documents (with expert inputs as needed) and organize prospective bidders' meet for the MRCI. [September 30, 2013]

Draft bidding documents have been prepared. Discussions with a number of prospective bidder, but the “prospective bidders' meet” yet to be organized.

SPMU to advertise the bid document (and given the period of code of conduct for the election, plan for two substantial pre-bid meets)

SPMU March 10, 2014



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special consultancies later, all major procurement ($70m) is completed by June 2013.

Contract management needs to be strengthened in light of delay in the contracts for sewerage.

Discussion with all PEAs to improve contract management (especially when large works contracts are involved), and preparing a plan to avoid time and cost overrun. [September 30, 2013]

Substantial discussions took place (especially for the large contracts) to agree on ways to avoid cost and time overrun.

As many of the contracts were awarded recently, there is a need to continue the regular discussions on ways to avoid time and cost overrun. May now form an input to the Steering Committee meetings.

SPMU (and PEAs)

Quarterly until June 2015, 2013

Prepare monthly expenditure projections for FY13-14, and submit to SICOM to accelerate the process of transfer of funds to SPMU. [August 31, 2013]

Completed. No further actions required.

[But the process of preparation, submission and monitoring of monthly expenditure projections should continue as part of the preparation and monitoring of the annual action plan]

SPMU Regular

ICZM Plan: Draft ToRs are available. Support consultants are being selected (and will be in place by July 2013). The plan preparation process now needs to be accelerated.

Support consultants will be selected and be in place. [September 30, 2013]

First round of selection process failed. A second round of selection was undertaken, and negotiations with the top ranked consultant (under quality-based selection procedure) is underway. Possible to conclude negotiations during February and award the contract.

SPMU to ensure that the negotiations are completed at the soonest, and contract awarded.

SPMU March 15, 2014

With help from the support consultants, a detailed schedule of plan preparation (including stakeholder engagement and specific studies) will be prepared and shared. [October 30, 2013]

Dependent on the selection, award and mobilization of the consultants.

After the consultants are selected, this should be asked as part of their inception report.

SPMU April 30, 2014



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Additional target for mangrove plantation. The concerned PEAs have already progressed very well in terms of achieving the current target of 16,500ha. An additional target of 10,000ha can be achieved.

SPMU will discuss with the relevant agencies the plans for planting additional areas. The World Bank had already agreed to the proposal from SPMU to include areas in the Gulf of Khambat and on the Suarashtra coast to be considered for this purpose, using community engagement and community contract processes similar to what has been adopted for the Gulf of Kachchh. [August 31, 2013]

SPMU with support for the relevant agencies have already taken this up. State Steering Committee has approved this. Forwarded to SICOM for inclusion in the revision of project cost.

No further action required.

- -

SPMU will formally allocate works to PEAs for achieving additional targets in the Gulf of Khambat and on the Suarashtra coast. [September 30, 2013]

Completed. Some notable physical progress (about 1,000ha) already made. However, further work stopped as per the need to get EFC/CCEA approval for expanding target and cost. [In the event such approval is not given, SPMU will readjust this additional plantation within the existing target of the project).


[However, if EFC/CCEA approval is obtained for the expansion, SPMU to work with the relevant PEAs to achieve the target well within the project closing date.]

- -

MNP will prepare an evaluation report of mangrove plantation (result, processes, and adherence to cost norms) undertaken using force account. [August 31, 2013]

MNP has prepared a report (this is under finalization).

Separately, a third-party consultant has been engaged to evaluate the performance.

MNP and SPMU will share with SICOM and World Bank the evaluation reports from the third-party monitoring consultants (as per delivery milestones of the consultants).

MNP and SPMU

-



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Based on the review of the evaluation report from MNP, World Bank will agree to cover an additional 3,000ha of mangrove plantation within the MNP where remoteness prevents community contracting. [September 15, 2013]

The decision is dependent on the MNP sharing the MNP’s own finalized report. [However, given the issue of cost increase in the project, a decision cannot be taken before EFC/CCEA approval is available.]

MNP to submit the “own in-house” (separate from the consultants’ monitoring report). Thereafter, based on review of the report, the World Bank will agree to cover an additional 3,000ha of mangrove plantation through force account within the MNP where remoteness prevents community contracting.

MNP March 31, 2014

SPMU capacity needs augmentation. Several positions remain vacant due to staff turnover and related issues.

SPMU will revise the salary package to be offered for each staff/consultant position to reflect the market better. [August 31, 2013]

Completed. No further action required.

- -

SPMU will send a list of positions to be recruited through the SICOM appointed HR service consultants, if needed. [August 31, 2013]

SPMU has completed the requisite recruitment. No further recruitment is planned.


- -

The proposed HR and performance appraisal system of SICOM will be replicated for the SPMU. [October 31, 2013]

Waiting development of this by SICOM (which is delayed by about 6 months).

Once SICOM develops this, the proposed HR and performance appraisal system of SICOM will be replicated for the SPMU (with suitable modifications as required).

SPMU April 30, 2014.

Post-review of procurements during FY12-13 has pointed out certain systematic issues which need to be addressed, especially at the PEA level.

World Bank will share detailed findings of the post-review process for procurements that took place in FY12-13. [June 20, 2013. Done.]


- -

SPMU will respond to the findings, and as applicable strengthen the procurement processes at SPMU and at PEAs. [August 31, 2013]

Completed. No further action required, except that monitoring compliance to the Procurement Manual and Guidelines should be a routine process.

- -



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Table A6.4. Additional Specific Agreements on Component 3 (Odisha State Component)






Finalizing the mid-term evaluation report (including the list of activities that should be considered for dropping or reduction in scope). [June 30, 2013. Done.]


A generic template for proposing activities to be expanded or included in the Project should be prepared and shared with the SPMU. [June 15, 2013. Done.]


Preparing a list of activities, in order of priorities of the Governments, that should be considered for expansion or inclusion in the project. [July 15, 2013. Done.]






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Almost all major procurement ($44m) is complete, except a case of rebidding for sea vessel.

Contract management needs to be strengthened to

[Same as agreed in February 2013] Monitoring and ensuring that the planned procurement including award of community contracts (with cumulative targets of awards worth US$34m by March 2013, US$50m by June 2013, US$51m by September 2013 and US$52m by December 2013). [Monthly –December 31, 2013]

SPMU undertook substantial monitoring of procurement performance (and had been able to close the gaps substantially). This is commendable, as Odisha had lost about 3 months during and at the aftermath of Cyclone Phailin.

Several awards remain pending due to the need of approval for increased project cost.

Continue to ensure that no award (other than the agreed exceptions and the new activities subject to approval of the EFC/CCEA) is planned after March 31, 2014.

SPMU and all PEAs

March 31, 2014

SPMU will ensure that all procurements are completed by December 2013, and no procurement will happen after December 2013. [Monthly –December 31, 2013]

Award of contracts have been substantially completed. The remaining contracts are ready to be awarded by March 31, 2014.

[Agreed exceptions such as a few consulting studies, and some small shopping will be awarded after March 31, 2014]. Odisha SPMU has also decided to drop 18 contracts as these cannot be awarded before March 31, 2014.

Complete award (other than exceptions) by March 2014 (subject to SICOM/MoEF agreeing to such awards).

SPMU and all PEAs

March 31, 2014

Discussion with all PEAs to improve contract management (especially when large works contracts are involved), and preparing a plan to avoid time and cost overrun. [September 30, 2013]

Substantial discussions took place (especially for the large contracts) to agree on ways to avoid cost and time overrun.

As many of the contracts were awarded recently, there is a need to continue the regular discussions on ways to avoid time and cost overrun. May now form an input to the Steering Committee meetings.

SPMU (and PEAs)

Quarterly until June 2015, 2013


Completed. No further actions required.

[But the process of preparation, submission and monitoring of monthly expenditure projections should continue as part of the preparation and monitoring of the annual action plan]

SPMU Regular



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avoid future delays.

In view of repeated cases of unreasonable delay in awarding contracts after bid evaluation –SPMU should prepare a clear communication for PEAs (referring to the MoU between SPMU and PEAs), to be sent by the Steering Committee. [August 31, 2013]

Completed. As a result, cases of unreasonable delay between bid evaluation and award of contract have not recurred.

No further actions required.

- -

ICZM Plan: Draft ToRs are available. Scope of work for preparation of shoreline management plans has been prepared. The plan preparation process now needs to be accelerated.

A detailed schedule of plan preparation (including stakeholder engagement and specific studies) will be prepared and shared. [September 30, 2013]

SPMU has prepared a draft schedule. This needs to be finalized once consultants are in place.

With help from the support consultants, a detailed schedule of plan preparation (including stakeholder engagement and specific studies) will be prepared and shared.

SPMU May 30, 2014

Procurement of specialized consultants, if planned should be initiated. [October 31, 2013]

The ToR has been drafted (and being finalized along with the ICZM Plan Guidelines drafted by NCSCM). Actual bidding process yet to start.

Initiate selection process for the specialized ICZM Plan preparation consultants.

SPMU March 31, 2014




- -



- -



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There had been a case of “price negotiation” and there are associated issues involved in this case. SPMU will respond specifically along with PEAs as to why this should not be treated as a case of mis-procurement. [August 31, 2013]


- -

Table A6.5. Additional Specific Agreements on Component 4 (West Bengal State Component)






Finalizing the mid-term evaluation report (including the list of activities that was agreed during the MTR discussions to be considered for dropping or reduction in scope). [April 30, 2013.]

Done in June 2013. Thereafter further items were also proposed to be dropped. World Bank and SICOM opined that a few of the activities (knowledge development and capacity development of IESWM, continuation of the work of the Calcutta University, reduction of livelihood activities at Sagar Island) are central to the objective of the Project. Consequently, the idea of reduction of the livelihood activities at Sagar Island was restored. Remaining issues were agreed to be discussed between SICOM/MoEF and SPMU/GoWB.

Clear alternatives for the activities proposed to be dropped (with respect to PEAs – IESWM and Calcutta University) are required. Without capacity-building of the state agencies and knowledge activities that contribute to the ICZM process, it is uncertain if the project objectives will be met.

SPMU March 31, 2014

A generic template for proposing activities to be expanded or included in the Project should be prepared and shared with the SPMU. [June 15, 2013.]

Completed in June 2013 [no expansion proposed].




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Preparing a list of activities, in order of priorities of the Governments, that should be considered for expansion or inclusion in the project. [July 15, 2013.]

Completed in June 2013 [no expansion proposed].





A major concern is the relative

[Same as agreed in February 2013] Monitoring and ensuring that the planned procurement including award of community contracts (with cumulative targets of awards worth US$28m by March 2013, US$38m by June 2013, US$53m by September 2013 and US$61m by December 2013). [Monthly –December 31, 2013]

No significant improvement in procurement (and award). During July-December, only 7 contracts with value of INR 24 crore was awarded while 66 contracts worth 170 crore remain to be awarded (on December 31, 2013).

The deadline of December 31, 2013 was extended by MoEF/DEA to March 31, 2014 at the specific request of the West Bengal SPMU.

SPMU to ensure that all contracts are awarded before March 31, 2014.

SPMU and all PEAs

March 31, 2014

Finalize bidding documents, agree on the sustainability model, and initiate bidding process for the ZSI museum. [August 31, 2013]

Completed in October 2014. However, the sustainability model is yet to be finalized and formally accepted by the ZSI.

ZSI should approve the sustainability model (as the work is progressing now) well before the museum is operational.

ZSI and SPMU

June 30, 2014

Finalize the design and soil testing arrangements for the cyclone shelters, such that the requisite works could be completed by July 31, 2013 (see below). [August 15, 2013]

Designs remained inadequate. It is now agreed between SPMU and SICOM to drop the cyclone shelters from the project (can be taken up under the World Bank financed NCRM project) if the designs, BOQ and bid documents are finalized and are acceptable to the NCRM project.

No further action required. - -



77





lack of completion of procurement. The current award is worth $28 million, while about $35m is yet to be awarded. Potential further procurement delays need to be proactively avoided. It will be a challenge to complete the scheduled procurement by September and December2013.

Contract management needs to be strengthened in light of delay in the contracts for sewerage, drainage and

Advertise bids for the works of the 25 cyclone shelters by September 30, 213. [September 30, 2013]

See above. No further action required. - -

SPMU will inform the World Bank if the above is achievable, otherwise these cyclone shelters will be dropped from the project. [August 31, 2013]

SICOM and SPMU have agreed to drop this from the project (as bidding cannot take place in foreseeable time).


SPMU would confirm that the pending cases of bid evaluation and award for equipment for IESWM were completed in time. [August 31, 2013]

SPMU has confirmed that the GoWB does not wish to purchase the equipment.

A Bid Cancellation Report should be prepared; and submitted for no-objection from the World Bank; and afterwards should be published. SPMU will also need to inform the evaluated lowest responsive bidder accordingly.

SPMU March 31, 2014

The designs, scope of work, and sustainability plans for the Fish Auction Centre at Digha Mohana will be finalized reflecting the need to achieve certification standards for all aspects of handling, storage, auction and transport of fish (and not only the auction hall) in final agreement with the Fisheries Department and the Fisherpersons’ Cooperative. [September 30, 2013]

Improved designs were prepared (although all aspects are not covered). While World Bank agreed that the bidding process could go ahead, the remaining aspects need to be planned, agreed and documented clearly.

SPMU and PEA will prepare documentation: (i) describing how the proposed design will achieve the certification standards, such as Marine Stewardship Council certification for all aspects of handling, storage, auction and transport of fish (and not only the auction hall); (ii) final agreement on the transfer of assets to, and operation and maintenance by the Fisherpersons’ Cooperative; (iii) the process of achieving the certification for the entire facility and processes.

SPMU, Fisheries Department (or the PEA)

March 31, 2014



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electricity distribution.

World Bank already agreed during MTR that the Fisheries Department (or any other suitable agency of the State Government) can be nominated as PEA in place of the Fisheries Development Corporation. SPMU will need to send a communication to Bank formally attaching details of the relevant financial management arrangements. [September 30, 2013]

SPMU has now dropped the idea. SPMU and the PEA to provide evidence that the entire work and process (of certification and agreement with the Fisherpersons’ cooperative for transfer of ownership, operation and maintenance responsibilities) could be taken up by the Fisheries Development corporation.

SPMU, Fisheries Department (or the PEA – Fisheries Development corporation)

March 31, 2014

An agreement will be signed among SPMU, (the Fisheries Department and or the PEA) and the Fisheries Cooperative describing the objectives of attaining environmental certification for the entire facility, environmental goals, respective responsibilities and arrangements for implementation, operation and maintenance (after these are agreed by SICOM and the World Bank). [August 15, 2013]

Not yet done. No known progress. An agreement will be signed among SPMU, (the Fisheries Department and or the PEA) and the Fisheries Cooperative describing the objectives of attaining environmental certification for the entire facility, environmental goals, respective responsibilities and arrangements for implementation, operation and maintenance (after these are agreed by SICOM and the World Bank).

SPMU, Fisheries Department

March 31, 2014

Based on agreeable plans and agreements above (to be reviewed and confirmed by World Bank), the bids for works contracts should be advertised without delay. [August 31, 2013]

No progress other than improvement in the plans and designs of the works contract.

While bidding process could go on, the above agreements and formal documentation are needed before award of the work.

SPMU, Fisheries Department

August 31, 2013



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SPMU will inform the World Bank if the above is achievable, otherwise the Fish Auction Centre will be dropped from the project. [August 31, 2013]

SPMU has informed that the above is doable.

SPMU need to share the above mentioned documents and agreements before the work contract starts to be implemented on ground. Otherwise, this activity should be dropped from the project.

SPMU March 31, 2014

SPMU will reconfirm the targets for livelihood activities in Sagar Island; and prepare (with support from the partner NGOs) a schedule and plan for completing CBO contracts (tripartite contracts) with all CBOs (covering at least 15,000 households) by December 2013. [August 31, 2013]

SPMU has reconfirmed the targets for the livelihood activities at Sagar Island.

Plans and schedules completing CBO contracts are not yet prepared and/or shared.

SPMU and prepare (with support from the partner NGOs) a schedule and plan for completing CBO contracts (tripartite contracts) with all CBOs (covering at least 15,000 households) by March 2013; and thereafter completion of the activities well ahead of the project closing date.

SPMU March 31, 2014

Damages to private and public assets created (even if unavoidable) by the drainage contracts need to be repaired and reinstated. SPMU will instruct the PEA to this effect. [June 15, 2013. Done.]

SPMU has taken adequate and appropriate actions to ensure that the damages to private and public assets created (even if unavoidable) by the drainage contracts will be repaired and reinstated as part of the contracts.



Prepared. However, as contracts were not awarded, there is a gap between projections and actual expenditure.

Prepare revised (and realistic given the progress of procurement, and performance of the contracts already awarded) monthly expenditure projections for FY14-15, and share with SICOM.

SPMU April 30, 2014

ICZM Plan: The plan preparation process now needs to be initiated.

A detailed schedule of plan preparation (including stakeholder engagement and specific studies) will be prepared and shared. [September 30, 2013]

No progress yet. In light of the limited time remaining in the project, this has become very crucial.

A detailed schedule of plan preparation (including stakeholder engagement and specific studies) will be prepared and shared.

SPMU March 31, 2014



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Procurement of specialized consultants, if planned should be initiated. [October 31, 2013]

No progress yet. Based on the above schedule, procurement of specialized consultants to be expedited.

SPMU April 30, 2014




- -



- -

SPMU capacity needs augmentation. Several positions remain vacant due to staff turnover and related issues.

SPMU will revise the salary package to be offered for each staff/consultant position to reflect the market better. [August 31, 2013]


- -

SPMU will send a list of positions to be recruited through the SICOM appointed HR service consultants. [August 31, 2013]

No progress [while some recruitment had been completed by SPMU].

SPMU will send a list of positions to be recruited through the SICOM appointed HR service consultants. Alternatively, SPMU will inform SICOM that the planned recruitments can be completed by SPMU.

SPMU March 31, 2014.

The proposed HR and performance appraisal system of SICOM will be replicated for the SPMU. [October 31, 2013]

Waiting development of this by SICOM (which is delayed by about 6 months).

Once SICOM develops this, the proposed HR and performance appraisal system of SICOM will be replicated for the SPMU (with suitable modifications as required).

SPMU April 30, 2014.

Annex 7

Activity-wise Progress of reaching Beneficiaries in the Project

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1. The project has a target to directly benefit 1.1 million people, of which 50% are to be women. Target for benefits induced by knowledge activities are much higher – 7.65 million directly, and 35 million people indirectly.

2. The following is a summary of direct beneficiaries of the project, based on the reports from individual activities. The overall progress is 588,408 persons of which 270,902 are women (46%). The project has already reached 54% of the targeted direct beneficiaries.

Table A11.1: Activity-wise Summary of Beneficiaries in the Project at MTR

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Target Achievement

Remarks

Total Women Total Women

National Component 65,780 33,285 17,712 8,111 26.9 % of target (45.8% women)

Gujarat State Component 735,758 360,386 409,378 186,989 55.6 % of target (45.7% women)

Odisha State Component 222,034 111,032 90,091 57,870 40.6 % of target (64.2% women)

West Bengal State Component 331,722 165,449 71,227 17,932 21.5 % of target (25.2% women)

Total Project 1,084,235 569,628 588,408 270,902

Total project target is 80% of the sum of all the components.

Activity-wise Details of All Project Components are as below.

1 A 1 A: Levelling surveys 80 0

B: Aerial Photography 10 0

C: Shoreline Change maps 25 10

D: Collation of satellite imageries 5 0

E: Detailed erosion mapping 50 20

170 30

1 A 2 A: Tidal data surveys for major and minor ports

50 0

B: Astronomical tide surveys at intermediate minor ports

35 0

C: Final analyses 0 0 Yet to start

85 0

1 A 3 A: Photogrammetry and DEM 600 120 About 20% women

B: Hazard Line 25 10 25 persons at NCSCM

C: Ground marking Hazard Lines 0 0 Yet to start 625 130

Sub-Component 1A – Sub-Total 12.500 6,250 880 160

1 B 1 A: Identification of ESAs 6,150 3,010 150 20 Capacity building and expert consultations

B: Ground surveys/verification 0 0 Yet to start

C: Analysis, mapping 0 0 Yet to start

150 20

1 B 2 A: Planning and management of Dandi ESA

5,850 3,675 3,937 1,772 - 14 CBO/SHG with 15 members with a family size of 5.5 each. 60 village solar lights. 125 locals given solar training. 60 households connected to water pipe. Includes other activities. Final number without overlap.

B: Planning and management of Vedaranyam ESA

16,480 7,970

11,630 5,757 308 families and 1445 salt workers benefitted through livelihood activities; 3400 persons covered by improved access to health



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Sub-Activity


Target Achievement

Remarks


facilities; 600 fishers and 200 farmers with daily weather reports and early warning; 469 families with common fund for income generation; 67 solar lights. 2 EDCs (16 and 18 members) plantation. Final number without overlap.

C: Planning and management of Vembanad ESA

0 0 2 0 Yet to start

22,330 11,645 15,569 7,529

Sub-Component 1B – Sub-Total 28,480 14,655 15,719 7,549

1 C 1 Mapping of coastal sediment cells and sub-cells

800 380 435 185 125 employed; 280 participants in knowledge building workshops; 20 trained onsite

800 380 435 185

Sub-Component 1C – Sub-Total 800 380 435 185

1 D 1 Establishment and Operation of NCSCM

10,000 5,000 503 165 200 persons in plan and design stage; 223 in construction; 80 staff.

10,000 5,000 503 165

1

D 2 A: Research program entirely by NCSCM

1,000 500 175 52 75 researchers; 100 persons trained and involved in surveys and local workshops

B: Research Program of NCSCM with Calcutta University

1,000 500 0 0 Yet to start

C: Research Program of NCSCM with KIIT

1,000 500 0 0 Yet to start

D: Research Program of NCSCM with Andhra University

1,000 500 0 0 Yet to start

E: Research Program of NCSCM with MSSRF

1,000 500 0 0 Yet to start

F: Research Program of NCSCM with Anna University

1,000 500 0 0 Yet to start

G: Research Program of NCSCM with CESS

1,000 500 0 0 Yet to start

H: Research Program of NCSCM with Karnataka Fisheries University

1,000 500 0 0 Yet to start

1D2I: Research Program of NCSCM with Goa University

1,000 500 0 0 Yet to start

J: Research Program of NCSCM with Mumbai University

1,000 500 0 0 Yet to start

K: Research Program of NCSCM with Gujarat Vidyapeeth

1,000 500 0 0 Yet to start

L: Research Program of NCSCM with CEPT University

1,000 500 0 0 Yet to start

12,000 6,000 175 52

Sub-Component 1D – Sub-Total 22,000 11,000 175 52

1 E 1 A: National Capacity Building Plan

8,250 4,125 397 51 12 trainings/workshops. Additional 80 fisherpersons. Training of trainers. Social audit training for 17

8,250 4,125 397 51

Sub-Component 1E – Sub-Total 8,250 4,125 397 51

Component 1 - Total 65,780 33,285 17,712 8,111 Disregarding all overlaps.



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Target Achievement

Remarks


2 A 1 ICZM Plan 5,000 1,300 60 18 Workshops

5,000 1,300 60 18

Sub-Component 2A – Sub-Total 5,000 1,300 60 18

2 B 1 Capacity building of Gujarat Pollution Control Board

250 125 25 5 4 staff and 25 persons engaged.

2 Capacity building of Gujarat Environment and Ecology Research Foundation

126 63 470 90 43 staff. 405 in construction work. 20 boatmen hired.

3 Capacity building of Bhaskaracharya Institute of Space Application and Geo-Informatics

6 3 15 3 15 staff

382 191 510 98

Sub-Component 2B – Sub-Total 382 191 510 98 Without overlap.

2 C 1 A: Marine Oceanarium at Dwarka, by the Forest and Environment Department

10,000 5,000 0 0 Yet to start

B: Mangrove plantation by Gujarat Ecology Commission

170,321 85,161 40,159

7,863 All workers involved in 10,000ha + mangrove plantation. 5 persons for surveys. 55 EDCs. 605 people trained. 71 staff in training. 271 participants in workshops. Final number without overlap.

C: Mangrove and shelterbelt plantation by Kachchh Circle

D: Mangrove and shelterbelt plantation by Marine National Park & Sanctuary (MNPS)

3,785 1,893

E: Coral reef generation by the Forest and Environment Department

5,800 2,900 20 0 10 boatmen, 10 researchers

189,907 94,954 40,180 7,864

2 C 2 A: Preparation and implementation of oil spill management plan for the Gulf of Kachchh – Gujarat Maritime Board


B: Environmental sanitation of Jamnagar city, by the Jamnagar Municipal Corporation

476,377 230,695 277,190 133,291 Assuming 65% completion of sewerage; STP yet to start. 1500 construction workers.

476,377 230,695 277,190 133,291

2 C 3 A: Eco-tourism and related livelihood improvement activities by the Marine National Park


B: Livelihood improvement activities by the Gujarat Ecology Commission

64,038 32,019 91,438 45,719 SHGs, 160 CBOs. . Data includes community mobilisers, staff

64,092 32,046 91,438 45,719

Sub-Component 2C – Sub-Total 730,376 357,695 408,808 186,873

Component 2 - Total 735,758 360,386 409,378 186,989 Disregarding all overlaps.

3 A 1 A: ICZM Plan 2,502 (revised:

3,150,338)

1250 (revised:

1,574,687)

5 0 Yet to start

2502 1250 5 0

Sub-Component 3A – Sub-Total 2502 1250 5 0

3 B 1 Capacity building for Odisha State Pollution Control Board

136 (revised:

68 (revised:

150 55 12 staff employed out of 50 assuming out of which 30% are



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Target Achievement

Remarks


(OSPCB) 159) 23) women. 7 out of 37 short term engagement generated by construction of green building out of which 2 are women

136 68 150 55

2 Capacity building of Chilika Development Authority (CDA)

846 (revised: 20,016)

423 (revised: 10,004)

10,012 4503 Research persons. Community and fisherpersons benefited.

846 423 10,012 4503

3 Regional Coastal Process Studies (Activity)

187 (revised:

45)

71 (revised:

14)

187 71

187 71 187 71

Sub-Component 3B – Sub-Total 1,169 562 10,349 4,629

3 C

1 A: Protection of Olive Ridley Turtles & other Aquatic Wildlife by Chilika Development Authority

2,00 1,450 554 90 30 boatmen. 5 researchers. Construction workers. Protection squads.

B: Conservation of archaeological and cultural heritage

10,485 5,243 6,000 2,000 Workers. 40 masons trained. Communities benefited.

C: Shoreline protection at Pentha village by the Water Resources Department

15,873 7,975 300 60 50 persons during planning and design. 250 in construction.

D: Mangrove plantation by Forest and Environment Department

5,000 2,500 1,742 866 21 EDCs and workers.

E: Mangrove plantation by Community Groups

5,650 2,825 12 0 Only NGO staff as of now.

39,908 19,993 8,608 3,016

3 C 2 Environmental sanitation of coastal town of Paradip by Paradip Municipal Corporation

75,343 37,672 260 20 Surveyors, planners, designers. Constructors of boundary wall.

75,343 37,672 260 20

3

C 3 A: Provision of cyclone shelters by Disaster Management Authority

22,071 11,036 21,000 10,395 Villages covered. Community groups. Volunteers. Construction workers.

B: Support to fishing communities in coir activities by the EP&M, Office of the Director of Industries

6,683 3,341 3,713 3,300 40 SHGs. Data includes community mobilisers and trainers

C: Livelihood improvement support by the Fisheries Department

49,940 24,970 41,877 34,800 637 SHGs. Data includes community mobilisers and short term laborers.

D: Biodiversity and sensitive habitat based livelihood improvement by Forest Department

14,080 7,040 603 85 550 employed in design and construction. 52 boatmen.

E: Support to fisher people groups in small-scale tourism activities by the Tourism Department

10,338 5,169 3,676 1,625 40 SHGs. Data includes community mobilisers and staff.

103,112 51,556 70,869 50,205


Component 3 –-Total

222,034 111,032 90,091 57,870 Disregarding all overlaps



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Target Achievement

Remarks


4 A 1 ICZM Plan 2,600 1,300 0 0 Yet to start

2,600 1,300 0 0

Sub-Component 4A – Sub-Total 2,600 1,300 0 0

4 B 1 Capacity Building of Bio-Chemistry Department, Kolkata University

20 10 20 7 Staff only.

20 10 20 7

2 Capacity Building for IESWM 2,600 1,300 10 1 Staff only

2,600 1,300 10 1

Sub-Component 4B – Sub-Total 2,620 1,310 30 8

4 C 1 A: Mangrove plantation by Forest Department

1,804 902 5082 2237 1000 members in FPC/EDCs.

B: Rehabilitation of Marine Aquarium at Digha by the ZSI

903 452 158 17 5 trainings organized

2,707 1,354 5,240 2,254

4 C 2 A: Sewerage system and environmental sanitation of Digha by the PHED

40,795 19,985 4,080 1,799 Based on 10% progress of work. 170 persons in construction.

B: Cleaning and improvement of Digha beach

4,990 2,495 131 4 Staff, consultants and construction workers.

C: Solid Waste Management System at Digha

20,693 10,347 20 2 In planning and design.

D: Drainage System at Digha 30,540 15,270 4,581 2,291 Based on 13% progress of work.

E: Fish auction center at Digha by the Fisheries Development Corporation

1,040 520 1 0 Yet to start

F: Distribution of grid electricity in Sagar Island by the SEDCL

185,100 92,532 31,400 18,226 5700 connections provided. 50 persons in installation.

225,895 112,535 40,212 18,226

4 C 3 CBO coordinated livelihood improvement and market access for Sagar Island

47,100 23,550 25,695 11,563 9180 SHG members. Training completed for all, but actual livelihood activities are only initiated. Data includes community mobilizers

Sundarban Affairs Department- Environmental Improvement of Sagar


Sundarban Affairs Department- Other Ecotourism Activity at Sagar Island


Construction of multipurpose cyclone shelter by DMD


97,900 48,950 25,745 11,574


Component 4 – Total 331,722 165,449 71,228 32,062 Disregarding all overlaps.

Documents

INDIA: Integrated Coastal Zone Management Project · INDIA Integrated Coastal Zone Management Project (P007985) Aide Mémoire: Sixth Implementation Review Mission, January 30 –