Government of Andhra Pradesh

Abstract I & CAD Department Andhra Pradesh Irrigation and Livelihood Improvement Project (Phase 1) with Japan Bank for International Cooperation (JBIC) assistance Implementation & fund flow arrangements Orders - Issued ------------------------------------------------------------------------------------------------------G.O. Ms. No 35 (PW-EA) Department . Dated: 14 - 2-2007 Read the following 1. 2. Note from Commissioner, CADA No. 020692/Reforms/06, Dated 25-9-2006 G.O.Ms.No. 289, Finance(TFR.II) Dept. Dated 04-10-2006

ORDER: 1. The Background- The Government of Andhra Pradesh has initiated the process of providing a substantive and enabling role to farmers benefiting from irrigation projects for management, operation and maintenance of the irrigation infrastructure. After the passage of the APFMIS Act 1997, I&CAD Department carried out minimum rehabilitation of the minor irrigation tanks and modernization of the major irrigation projects for future maintenance by WUAs. Performance evaluation of the WUAs highlighted the need of investment in institution building process for enabling and facilitating WUAs for infrastructure management. This process has now been simultaneously initiated as part of the ongoing sector reform process. While the new infrastructure creation is main agenda of the irrigation, the reform process and facility management is agenda of the CAD wing of the I& CAD department under the flagship Jalyagnam program of government..

2. Andhra Pradesh Irrigation and Livelihood Improvement Project (Phase 1): The Government of Andhra Pradesh has negotiated a project with JBIC with objective to increase the agricultural production in the state by constructing new MI tanks in water surplus basins and rehabilitating Medium irrigation projects, improving water management and agriculture practices, and thereby increasing agricultural income. This project titled as Andhra Pradesh Irrigation and Livelihood Improvement Project (Phase 1) would be implemented in three batches over a period of 6 years during 2007-2013. The project comprises of following components i) Civil Works a) Formation of 59 New Minor Irrigation tanks to create new Irrigation Potential of 30,521 Ha b) Rehabilitation 11 Medium Irrigation Projects to stabilize ayacut of 69,900 Ha WUA Component Sector Reforms Consultancy Services

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3. The Commissioner, CADA & Principal Secretary I&CAD Department has proposed establishment of a Project Management Unit (PMU) for the purpose of over all project management, coordination, supervision and monitoring with implementation through the Chief Engineer Medium and Minor Irrigation through Sub Project Implementation Unit (SPIU) at district level to enable the project mode functioning following the step by step guidelines and time schedules. This is also proposed that, based on implementation experience, further modifications to the arrangements could be considered for more effective implementation. Subsequent orders could be issued as and when found necessary. 4. The Government after careful consideration of the proposal hereby issues the following orders for the implementation arrangement and fund flow arrangement, to be adopted for the proposed Project. Project Implementation Arrangement State Level Implementation Arrangement 5. Project Steering Committee- A Project Steering Committee with Chief Secretary as the Chairperson will review the project, at state level. The Project Coordinator (Commissioner CADA and Principal Secretary, I&CAD Department) will be the Convener of the Project Steering Committee. The other members of the Project Steering Committee will be: Principal Secretary Finance (Works & Projects) Principal Secretary, Agriculture Principal Secretary, Rural Development Principal Secretary, Animal Husbandry Principal Secretary, Fisheries Secretary, Institutional Finance Secretaries of Irrigation Department Chief Engineer, Minor Irrigation Director, Groundwater State Project Director The committee will provide strategic guidance to the project, ensure coordination of the participating department. The committee would also review the efficacy and adequacy of the implementation, fund flow arrangements and would also make necessary changes for achieving the project objectives. 6. Project Coordinator- The state level agency responsible for implementation of the project will be the Command Area Development Authority (CADA) in the I&CAD Department, Government of Andhra Pradesh. The Commissioner CADA and Principal Secretary, I&CAD Department will be the Project Co-coordinator for the project. He would approve the annual action plan of the project for enabling the PMU for day to day functioning, direction and flexibility of operation. He would review the project at least bi-annually. The Project Coordinator (Commissioner

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CADA & Principal Secretary I&CAD Department) would be the competent authority in terms of G.O. Ms. No. 289, Finance (TFR.II) Dept. dated 0410-2006 for hiring of the consultancy services. 7. Project Management Unit- A Project Management Unit (PMU) will be the administrative unit of the project and would coordinate all operations of the executive agencies under the project. The PMU will be headed by a State Project Director of the rank of a Commissioner / from IAS. i) The PMU will consist of two Technical Unit(with departmental staff), one each for medium and minor irrigation projects, Institutional development Unit( 1expert), Agribusiness Unit( 1 expert1), M&L Unit (1expert), AP Info Resource Center ( 2 experts), Coordination Unit ( 1 Deputy director from government) and Finance and Procurement Unit ( government staff). The details of these units are provided in organogram annexed to this order. These units and subject matters experts will report to Project Director. ii) The Technical Unit of the PMU will consist of a Superintending Engineer, 2 Executive Engineers, 4 Deputy Executive Engineers, 1 Deputy / Assistant Director (Ground Water) and 12 Assistant Executive Engineers / Assistant Engineers. The Chief Engineer, Minor Irrigation, and Medium Irrigation will lead the dedicated Technical Unit for implementation of the project and would be responsible to PMU to the extent of this project. The engineering staff of the Technical Unit will be earmarked from the Irrigation Department exclusively for implementation of this Project. The Principal Secretary (I&CAD) would issue the orders accordingly. iii) The posts of Deputy Project Director and Finance & Procurement Manager will be filled with regular government employees. The subject matter experts of the PMU for Institutional Development unit, Agribusiness Unit, M&L unit and AP Info Resource Center will be hired on contract basis from open market following the guidelines of Finance Department in G.O. 2nd read above. iv) General administrative and accounting staff including clerks, computer operators, office subordinates, etc will support the PMU. The Principal Secretary (I&CAD) would designate some of the staff from the department for this purpose and augment it through contractual services as and when required with in the administrative ceiling of the project. District Level Implementation Arrangement 8. District Level Implementation Committee- The project at the district level will be reviewed by a District Level Implementation Committee (DLIC) with the District Collector as the Chairperson. The Vice Chairperson of the DLIC will be nominated from among the Support Organizations assisting project implementation in the district. The District Project

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Director (Executive Engineer) will be the Member Secretary of the DLIC. The other members of the DLIC will be: Chief Executive Officer, Zilla Parishad Divisional Forest Officer Joint Director Agriculture Joint Director Animal Husbandry Joint Director Horticulture Project Director District Water Management Agency Project Director District Rural Development Agency Assistant Director, Fisheries District Public Relations officer Deputy Director, Groundwater Two representatives Water Users Associations (To be nominated by District Collector on annual rotation basis)

9. Sub-Project Implementation Unit (SPIU) will be set up for the purpose of implementing the Project at sub-project level. SPIU will be headed by the concerned Executive Engineer of the concerned district and consist of several sub-units. The Executive Engineer should be from the Irrigation Department only. The SPIU will consist of a Technical Unit and other project officers in subject matters such as social mobilization, agriculture extension, agri-business development, monitoring & learning, MIS and finance & procurement officer, who all will report to the Executive Engineer. i) The Technical Unit of the SPIU will be headed by Executive Engineer and consisting of I&CAD staffs and individual consultants, for the implementation of civil works. The Project Coordinator (Principal Secretary, I&CAD/ Commissioner CAD) would review the necessity to hire technical staff on contract to augment the strength of the DPU/PMU Technical Unit whenever required in case of non availability of required government staff. ii) The post of Finance & Procurement Officer will be filled up with regular government employee. The other subject matter project officers of the SPIU of Institutional Unit, Agribusiness Unit and M&L unit would be hired on contract basis from open market. The Project Coordinator (Commissioner CADA & Principal Secretary I&CAD Department) would be the competent authority for decisions of hiring of consultants in terms of G.O. Ms. No. 289, Finance (TFR.II) Dept. dated 0410-2006. iii) The organogram of the project management structure is appended to this Order. Fund Flow and Audit Arrangements 10. The project consists of four components as mentioned in para 2 of this order. Some of these activities are to be implemented through the WUAs,

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NGOs while the major portion would be civil works pertaining to tank restoration through the contractors. The productivity enhancement, capacity building related activities or the WUA and NGO level activities would require small advances for implementation of the project activities. Therefore the fund flow arrangements are accordingly devised to facilitate these objectives. The item wise fund flow for these components would be as follows: i) Component I Civil Works- This component covers all civil works related to restoration of tanks (catchment area, tank and command area). The entire expenditure under this component will be incurred at district level. The funds for this activity will follow the direct transfer procedure from JBIC to the contractors. All the Bills for the civil works should be presented in the Pay and Accounts Officer for pre-audit before bills are sent for reimbursement to Govt. of India / JBIC. The GoAP would provide its share through normal budget provisions to meet the liabilities of taxes etc as agreed under the project. The funds may be drawn by state and district unit as per the geographical location of the activity at district following the existing norms.

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Component II WUA Component- This component covers NGO cost, WUA facilities, farmers field school, information kiosks, costs of the consultants, survey equipments, environmental monitoring and baseline surveys. The expenditure under this component will be incurred at state and district level. The funds will be allocated through LOC system to concerned PAO. The Account Officer CAD or the Executive Engineer, as per geographic location, would present the work bills to the concerned PAOs and disburse. The facility of AC bills may also be utilized as per the norms for these activities. The expenditure under this component would be reimbursed by the JBIC therefore the CAD would request for annual budget provision according to the activity schedule. Component III Sector Reform -The component involves activities like capacity building of I&CAD staff, WUAs of major and medium irrigation projects, data base of the tanks, studies, seminars, MIS and infrastructure cost of WALMTARI and exposure visits etc. The funds may be drawn by state and district unit as per the geographical location of the activity either at state head quarter or at the district, through the AC bills following the existing norms. Component IV- Project Consultancy Services-This component involves cost of project management consultancies. This would be paid through letter of

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commitment procedure of JBIC in local and foreign currency as the case may be.

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The district unit are allowed to draw up to Rs Three Lakhs and the PMU can draw up to Rs Ten Lakhs in one instance through AC Bills for the aforesaid components and should render the accounts for the latest expenditure before preferring the next AC bill. Audit- The accounts and vouchers would be audited by the AG and through the internal audit as per the existing norms of government. However the accredited chartered accountants can also audit the accounts as the AG audit report may not be available within six months of the closure of a financial year.

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11. The PMU through I & CAD department would request for annual budget provision on the basis of assessment of the action plans. The government would create the necessary budget provision through a new Head of Account (for both GoI and GoAP share) to be operated by the Commissioner CAD. 12. These orders would come in to immediate effect as the land acquisition and SID activities are to be implemented during the current year itself. Budget requirement for the project preparation activities will be met from the funds available with CAD and expenditure on the land acquisition will be met from the budget available with Chief Engineer (Minor Irrigation) and the Chief Engineer (Medium Irrigation). 13. This order issues with the concurrence of Finance (PMU) Department vide their U.O.NO.44/PMU/07, dated 05-02-2007. (BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)

J. HARINARAYAN CHIEF SECRETARY TO GOVERNMENT To The The The The The The The The

Commissioner, CADA, Jalasoudha Buildings, Errummanzil, Hyderabad. Engineer-in-Chief, (Administration Wing ) I & CAD Department, Hyderabad. Engineer-in-Chief, (Irrigation) I & CAD Department, Hyderabad. Chief Engineer, Major Irrigation, I & CAD Department, Hyderabad. Chief Engineer, Medium Irrigation, I & CAD Department, Hyderabad. Chief Engineer, Minor Irrigation, I & CAD Department, Hyderabad. Chief Engineer, Central Designs Organisation, Hyderabad. Chief Engineer, Hydrology, Hyderabad.

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The Director, Ground Water, BRKR Building, Tank Bund, Hyderabad. The Accountant General, Andhra Pradesh, Hyderabad. The Director of Treasuries and Accounts, A.P, Hyderabad. The Director (Works Accounts), Hyderabad. The Pay and Accounts Officer, Hyderabad. The Commissioner of Fisheries, AP, Hyderabad. The Director of Animal Husbandary, AP, Hyderabad. The Deputy Finance Advisor, Finance (PMU) Department All District Collectors All District Treasury Officers // FORWARDED BY ORDER// SECTION OFFICER

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Annexure to G.O.Ms. No.35

State Level

CADA Project Co-ordinater - Commissioner CADA & Principal Secretary (I&CAD)

Project Management Unit State Project Director - Commissioner

Technical Unit R / R SE-2 EE4 D.D./A.D (GW) Dy E E 4 A E E / A E - 12

Institutional Development Unit Institution Development Expert - 1 NGO Coordinator -1 Capacity Building Expert -1

Agri -Business Unit Agri-Business Expert - 1 Agri-Extension Expert (Agri / Horti) - 1 Live stock and Fishery Expert

M & L Unit M&E Expert - 1 Research & Documentation Expert - 1

AP Info Resource Centre MIS Manager - 1 GMIS Manager - 1

Co-ordina Unit Deputy Pro Director - 1

District Level

District Level Implementation Committee Chairperson District Collector

District Project Unit District Project Director Executive Engineer

Technical Unit Dy E E 3 A E E / A E - 10

Institutional Development Unit A.P.D. - I D - 1

Agri -Business Unit A.P.D Agri-Extension -1 A.P.D Agri-Business (where required) - 1

M & L Unit A.P.D M&E 1 A.P.D MIS - 1

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