Document of The World Bank Report No: 67667 v1 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF HYDROLOGY PROJECT PHASE II PROJECT LOAN (LN. 4749-IN) July 19, 2004 TO THE REPUBLIC OF INDIA March 25, 2012 Extension of Closing Date – Restructuring Paper INDIA — HYDROLOGY PROJECT PHASE II P084632 (LN. 4749-IN) 1. The closing date for India, Hydrology Project PHASE II, [LN. 4749-IN], P084632 is proposed to be extended from June 30, 2012 until May 31, 2014. 2. The management and development of the water sector in India (including all waterrelated sub-sectors such as urban, irrigation, hydropower, environment, and disaster risk management) is only possible with reliable, quality, timely, and public water information and data. The Hydrology 2 Project aims to support this. The project development objective is to extend and promote the sustained and effective use of Hydrology Information Systems (HIS) from data collection (often in real-time), to validation and storage, to public dissemination to a wide range of stakeholders (both government and non-government) for various uses and knowledge creation (e.g. planning, research). The project includes implementing agencies (IAs) in 13 States and 8 Central Agencies1 and is one of the few multi-state water projects in the Bank portfolio. The project builds upon the satisfactory earlier Hydrology 1 Project 3. The project implementation progress has been steadily improving over the past year, despite initial delays with the mobilization of key support consultancies and delayed effectiveness. Achievement of the development objective remains highly likely. Areas of recent implementation progress include the following. First, 8 real-time data acquisition systems (for both hydrology and climate) are near the final stages of procurement (with those systems for BBMB and Maharashtra being installed). These systems will provide real-time hydrologic and climatologic information to support operations of reservoirs and enhance flood management. Second, the decision support systems models for each of the nine selected states are in the final customization stages. This work is now demonstrating their usefulness for planning purposes to a wide set of stakeholders (including the State Secretaries in some cases). Third, most research studies under the project (numbering over 30) will be completed in the next few months. The findings from these are of great interest to many water managers. Fourth, the new data centers and monitoring networks in three of the four new states (Goa, Pondicherry, and Himachal Pradesh) are well in place and beginning to function. Finally, all IAs report continued successful training and capacity building opportunities. It is worthwhile to note that the investments currently being made under the Hydrology 2 Project are also directly providing support and analysis to various water-related World Bank projects and programs throughout India. More detailed information is provided in the Memorandum to the Country Director. 4. The proposed extension is necessary to complete those activities already started and committed and to focus on providing technical support to ensure long-term 1 These are Andhra Pradesh, Gujarat, Maharashtra, Karnataka, Kerala, Madhya Pradesh, Chhattisgarh, Orissa, and Tamil Nadu, Himachal Pradesh, Goa, Pondicherry, Punjab, Ministry of Water Resources (MoWR), Central Water Commission (CWC), Central Groundwater Board (CGWB), National Institute of Hydrology (NIH), Central Water and Power Research Station (CWPRS), India Meteorological Department (IMD), Central Pollution Control Board (CPCB), and Bhakra-Beas Management Board (BBMB). 2 sustainability of project outputs in the 13 States and eight Central agencies. This strategy allows for sufficient time for all agencies to troubleshoot the newly installed hardware and software systems and tools with continued access to technical support by the Project Coordination Secretariat (PCS), the Technical Management Consultancy (TMC) and Bank teams. The generation of public awareness (through agency websites and various forums) and the consolidation of various research studies will also be critical during this extension period to ensure full impact. A work program of about Rs. 275 crore (about USD50 million including incremental staff costs of about Rs. 60 crore) is currently outstanding and committed and will be completed during the extension period. There is an additional Rs. 50 crore (about USD10 million) that may be taken on depending on the availability of resources and in the case of any slippage in the program. These amounts under the final program are very likely to be expended by the end of the extension period (May 31, 2014) and would thus exhaust the Project loan. 5. This will be the first extension of the project. 3