world bank document · 2016-07-14 · 5. between 1997-2001, the overall portfolio size was fairly...
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.INDIA
COUNTRY PORTFOLIO PERFORMANCE REVIEW
FY .2.00I
Joint R~port of .. . __ Tbe Worfo Bank Ana Government of lnoia .
October 2.001 ·
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INDIA
C01JNTRY PORTFOLIO PERFORMANCE REVIEW
FY 2001
Joint Report of Tbe Wor[o Bank Ano Government of Inoia
Inoia Countr~ Department South Asia Region Tl?e w or[o Bank
Department of Economic Affairs Ministr~ of Finance
Government of Inoia
INDIA
COUNTRY PORTFOLIO PERFORMANCE REVIEW
FY 2001
Foreword
The India Country Portfolio Performance Review (CPPR) is an annual report on the World Bank assistance program to India. It describes the composition and quality of the portfolio for the year, and reviews conducted jointly by the Department of Economic Affairs (DEA) and the World Bank with implementing agencies. The CPPR process represents a continuing commitment by the Government of India and the World Bank to find ways to improve the quality, implementation and sustainable outcomes of Bank-assisted projects in India.
The attached report presents the findings and recommendations of the CPPR for the Bank fiscal year from July 2000 to June 2001. The quality of the portfolio improved considerably in FYO 1, with an historically high disbursement ratio and low proportion of problem projects. Actions required to sustain these improvements are given in Annex 1, and will be monitored closely by DEA and the Bank during the coming year.
_fo Edwin Lim Country Director, India World Bank
Adlarsh Kishore Additional Secretary Department of Economic Affairs Ministry of Finance, GOI
Table of Contents
Foreword
Summary Report A. Introduction B. Size ofthe Portfolio C. Quality ofthe Portfolio D. Overview of the Portfolio E. Portfolio Action Plan : Summary of Conclusions and Agreements
Tables Table 1. Size ofPortfolio, 1997-2001 Table 2. Projects at Risk and Disbursement Ratio at end of Fiscal Year, FY96-01 Table 3. Composition of Portfolio in FY01 Table 4. Composition of the Portfolio by State in FY01 Table 5. Changes in the Portfolio in FY01 Table 6. New Projects Approved in FY01 Table 7. Projects Closed in FY01 Table 8. Development Outcome Ratings for projects closing in FY01 Table 9. Cancellations in FY01 (excluding cancellations at closing) Table 10. Projects Extended in FY01
Figures Figure 1. Percentage of Projects at risk in the Portfolio Figure 2. Trends in Disbursement Ratio, FY96-01 Figure 3.% of Satisfactory Development Outcomes (PSR, OED, and disconnect) Figure 4. FYO 1 Portfolio -by sector Figure 5. Allocation of Portfolio among States, FY97-01
Annexes Annex 1. Portfolio Action Plan Annex 2. Status of agreed actions in FYOO CPPR Annex 3. Problem Projects at start ofFY01 (as on June 30, 2000) Annex 4. Problem Projects at start ofFY02 (as on June 30, 2001) Annex 5. Trends in Commitments and Disbursements FY95-01 Annex 6. List ofiBRD Loans and IDA Credits in the Portfolio, June 30, 2001 Annex 7. CPPR Review Meeting with DEA October 5, 2001
Summary of Discussions, Recommendations and Agreements Annex 8. Minutes of Multi-sectoral Portfolio Reviews with States Annex 9. Minutes of Sectoral Portfolio Reviews with DEA
Page No. 1 1 2 4 11
2 2 4 7 8 9 9 10 11 11
2 3 4 5 8
12 15 20 22 23 24 26
29 31
INDIA COUNTRY PORTFOLIO PERFORMANCE REVIEW
FY 2001
Summary Report
A. Introduction
1. The annual India Country Portfolio Performance Review (CPPR) is based on a continuous review of portfolio performance and implementation issues at the state and national levels. It involves, at different times, reviews conducted jointly with implementing agencies, officials ofthe Department of Economic Affairs (DEA), other central and state government officials and World Bank staff. The main features of CPPR discussions are: (a) project by project discussion of outcomes, implementation and technical, financial and administrative problems; and (b) development of these discussions into a review of systemic issues for further action.
2. For the CPPR for fiscal year 2001 (July 1, 2000 to June 30, 2001), several review meetings were held with DEA and state governments. Some of these were: • Sector specific joint review meetings with DEA and implementing agencies : Transport,
October 17, 2000, Urban Water and Urban Development, October 18, 2000, Forestry, September 4, 2000 and February 20, 2001, ICDS, March 26, 2001 and Highway, Railways, Telecom and Cyclone Rehabilitation, August 30-31, 2001.
• State level multi-sectoral reviews: Uttar Pradesh, August 29, 2000, Karnataka December 13, 2000, Rajasthan September 11, 2000 and the Western Region, August 22, 2001.
• Specific topics with DEA : Slow disbursement ofiDA projects (August 9, 2000) • The final review meeting was held on October 5, 2001 Minutes of some of these meetings are given in Annex 7-9.
3. This report discusses the status of the portfolio at the end ofFYOl and summarizes the main recommendations agreed with the Government oflndia for improving portfolio quality.
B. Size of the FYOl Portfolio
4. Size and Composition. The FYOl portfolio at June 30, 2001 comprised 76 projects with loans/credits (net of cancellation) amounting to US$ 13.4 billion, of which approximately$ 6.3 billion was IBRD loans and$ 7.0 billion was IDA credits. Annex 6 gives a complete list of projects included in the FYOl portfolio.
5. Between 1997-2001, the overall portfolio size was fairly stable (Table 1). Net commitments rose from $ 13.3 billion to $ 15.1 billion, while the number of projects under supervision at some time during the year decreased marginally from 90 to 89.
Country Portfolio Pe1jormance Review FY 2001 Page 1
Table 1. Size of Portfolio, 1997-2001 (commitments net of cancellations for all projects supervised in the FY )
Year
1997 1998 1999 2000 2001
Number of Projects
90 87 81 86 89
IBRD (US$m)
6,102 5,638 5,792 6,032 7,690
C. Quality of the Portfolio
Problem Projects and Projects at Risk
IDA (US$m)
7,204 7,542 8,403 7,956 7,468
Total (US$m) 13,306 13,180 14,195 14,133 15,106
6. Both projects-at-risk and commitments-at-risk declined sharply to 8% in FY01, as compared to 25% and 29% respectively in FYOO (Table 2, Figure 1 ). At the end of FYO 1 there were a total of 6 projects at risk, compared to 20 at the end of FYOO. The high number in FYOO partly reflected an unexpected fiscal crisis in a number of states, and the turnaround in FYO 1 was assisted by close attention of both the Bank and DEA to timely restructuring and close monitoring of projects at risk. Annexes 3 and 4 provide a summary of action status on projects at risk at the start of FYO 1 and FY02 respectively.
Table 2. Projects at Risk and Disbursement Ratio at end of fiscal year, FY96-01
FY96 FY97 FY98 FY99 FYOO FY01
Actual Problem Projects (Unsatisfactory DO/IP) 16 9 9 5 10 6
Potential Problem Projects (3 or more risk flags) 0 3 2 3 10 0
Total Projects at Risk (actual+ potential) 16 12 11 8 20 6 Commitments at risk as a% ofTota1 Portfolio 18.0% 14.7% 10.1% 15.4% 29:-J% 8.0%
Projects at Risk as a% of Total Portfolio 20.8% 15.6% 14.9% 11.4% 27.0% 8.0%
Disbursement ratio 13.9% 16.4% 16.4% 16.1% 17.9% 20.9%
Figure 1 : Percentage of Projects at Risk in the Portfolio
30%
25%
20%
15%
10%
5%
0%
FY96 FY97 FY98 FY99 FYOO FY01
Country Portfolio Performance Review FY 2001 Page2
Disbursements
7. New commitments in FY01 were US$ 2.5 billion, as compared to US$ 1.8 billion in FYOO, US$ 1.05 billion in FY99 and US$ 2.1 billion in FY 98. The disbursement ratio has risen steadily over the years from 14% in FY96 to 16% in FY97-99 to 20.9% in FYOl. This progressive increase represents a substantial improvement in utilization of World Bank funds in India and can be attributed to more early attention to restructuring and reallocations, tirriely cancellation where funds cannot be used, and improved project design to ensure readiness for implementation.
Figure 2: Trends in Disbursement Ratio, FY96-01
FY96 FY97 FY98 FY99 FYOO FYOl
Outcomes
8. The improvement in portfolio performance is reflected in the higher percentage of satisfactory project development outcomes reported in final Project Supervision Reports (PSRs), and assessed independently in the Implementation Completion Report and reviewed by the Operations Evaluation Department (OED) some time later. Historically, supervision teams were much more optimistic than subsequent reviewers, hence the high "disconnect" between the two. This disconnect appears to be reducing now. It is not expected that all projects can have satisfactory outcomes, but the Bank and DEA agreed on a target of more than 90% satisfactory as confirmed by OED. This will be pursued through closer attention to project ratings and clear and measurable action plans when problems are identified. Of the 13 projects that closed in FY01 (and the one ICR carried over from FYOO), OED ratings are available for eight projects (Figure 3, Table 8). The OED and PSR rating for all eight projects is the same, and there is no disconnect.
Count!)' Portfolio Performance Review FY 2001 Page 3
Figure 3 : Percentage of Satisfactory Development Outcomes (PSR, OED, and disconnect)
100.0% -r------------------90.0% -·-------------
80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0%
Analysis by Sector
FY95 FY96 FY97 FY98 FY99
[• PSR • OED D Disconnect I
D. Overview of the Portfolio
FYOO FYOl
9. In FYO 1, the three big sectors in terms of commitment value were Infrastructure, with loans and credits worth US$ 3.2 billion (24%), Rural Development with US$ 2.8 billion (21 %) and Health, Nutrition and Population with US$ 2.5 billion (19%).
Table 3. Composition of Portfolio in FYOl (Commitments net of cancellations as of June 30, 2001, US$ million)
Sector Number of IDA mRD Other* Total Percent of Projects total
Infrastructure 13 283.0 2,900.1 3,183.1 24% Rural Development 21 2,338.2 489.1 2,827.3 21% Health Nutrition & Population 16 2,491.9 2,491.9 19% Energy 8 165.0 1,980.0 2,145.0 16% Education 7 1,244.9 1,244.9 9% Povetiy Reduction & 3 361.9 376.3 738.2 Economic Management 6% Finance 2 445.7 445.7 3% Environment 4 75.0 77.2 133.0 152.2 1% Social Development 2 76.4 76.4 1% TOTAL 76 7,036.3 6,268.4 133.0 13,304.7 100% *Other: Two Montreal Protocol (MPT) projects for the reduction of Ozone Depleting Substances.
Count1y Portfolio Performance Review FY 2001 Page4
10. Infrastructure. The largest sector in the FY01 portfolio, Infrastructure had thirteen projects with loans I credits amounting to US$ 3.2 billion, of which US$ 283 million was IDA and US$ 2.9 billion was IBRD. Although these projects represented only 17% ofthe portfolio in number, they amounted to 24% in terms of total commitments. Three new projects were approved in FY01 in the sector: Grand Trunk Roads (US$ 589 million), Kamataka Highways (US$ 360 million) and Gujarat Highways (US$ 381 million). The sector includes projects in transport, water supply and urban development.
11. Rural Development. The second largest sector in the portfolio, Rural Development had 21 projects in FYO 1, comprising 28% of the total number of projects and 21% of total net commitment. The sector includes irrigation and rural water supply, agriculture and forestry, sustainable natural resources and development of rural areas. In FY01, three new projects worth US$ 276 million were added to the portfolio and six projects worth US$ 420 million were closed.
Figure 4 : FYOl Portfolio by Sector (Commitment value as percent of total)
Rural Development
24%
Poverty Reduction and Economic Management
6%
Education 9%
Social Development 1%
Population 19%
12. Health, Nutrition and Population. The third largest sector in the portfolio this year, all projects in this sector are all IDA funded and have three focus areas: (a) disease control and health systems development; (b) nutrition projects linked with education, health and social welfare services; and (c) population-related projects to reduce unwanted fertility and to control fertility through education and employment opportunities for girls and women. The sector had 16 projects in FY01, comprising 19% in commitment value and about 21 %of total projects. One project was approved in FY01 (Leprosy II, US$ 30 million) and one project closed (Leprosy I, US$ 76.3 million).
Count!)' Portfolio Perforrnance Review FY 2001 Page 5
13. Energy. The Bank's assistance strategy in India includes major state level reforms in the power sector as a key focus. At the central level, emphasis is on key central utilities, with ongoing certain projects seeking to address the problems of infrastructure bottlenecks. In FYO 1, Powergrid II (US$ 450 million) and Rajasthan Power I (US$ 180 million) were approved, and four projects worth US$ 974.8 were closed in the sector. This sector's share in the portfolio was 11% in terms of the number of projects and 16% in terms of commitment value.
14. Education. There were seven projects in the Education portfolio worth US$ 1.2 billion (all IDA) comprising 9% ofthe total number of projects as well total commitments. Two projects, Rajasthan DPEP II (US$ 74.4 million) and Technician Education III (US$ 69.4) were approved in FYO 1 and two projects amounting to US$ 224.4 were closed.
15. Poverty Reduction and Economic Management (PREM). In addition to two ongoing projects, the Karnataka Programmatic Structural Adjustment Loan worth US$ 150 million was approved in FYOI. The sector represented 4% in number and 6% in commitment value of the total FY01 portfolio.
16. Finance. This sector had two projects in the FY01 portfolio, amounting to 3% of total projects as well as total commitments.
17. Environment. The sector comprised four projects, which represented 5% in number and 1% in commitment value of the total portfolio. Of these, Montreal Protocol funded two projects - CFC Production Sector Closure ODS III (US$ 83 million) and ODS II -Consumption Fadeout (US$ 50 million).
18. Social Development. The Social unit managed two projects in FYOl that amounted to 3% in total number of projects and 1% in terms of total commitment value.
Analysis by States
19. Among the states, as given in Table 4, Andhra Pradesh, with 14.5% of total commitments, continued to be the largest state in the portfolio. Uttar Pradesh (8.4%) and Orissa (6.4%) underwent a slight fall in their share, but maintained their positions as the second and third largest states in terms of total net commitments. Karnataka rose to 6.3% of commitments with the approval of three projects in FY01- State Highways (US$ 360 million), Watershed Development (US$ 100.4 million) and Karnataka SAL I (US$ 150 million). Rajasthan too saw a rise in its share with the approval of two projects this year- Rajasthan Power I (US$ 180 million) and Rajasthan District Primary Education Program II (US$ 74.4 million).
Counliy Portfolio Pe1jormance Review FY 2001 Page6
Table 4. Composition of the Portfolio by State (Percent of commitments net of cancellations)
State 1997 1998 1999 2000 2001
Andhra Pradesh 3.6 13.9 15.7 19.4 14.5 2 Assam 1.7 1.7 1.9 1.8 1.5 3 Bihar 2.3 4.4 3.5 3.3 2.2 4 Gujarat 0.7 0.7 0.4 0.4 3.3 5 Haryana 3.4 3.9 4.3 3.9 2.6 6 Himachal Pradesh · 0.8 2 2.1 1.9 1.9 7 Karnataka 4.3 2.7 2.8 2.7 6.3 8 Kerala 1.2 1.8 1.8 1.8 1.9 9 Madhya Pradesh 3 3.7 3.3 3.9 2.9 10 Maharashtra 13.7 11 6.1 5.5 4.1 11 Orissa 7 7.7 7.8 8.25 6.4 12 Punjab 2.5 2.7 1.7 1.5 1.1 13 Rajasthan 2 2.6 2.7 1.8 4.1 14 Tamil Nadu 7.3 4.9 5.7 5.2 4.9 15 Uttar Pradesh 4.4 6.8 7.9 10.7 8.5 16 West Bengal 2.5 2.4 2.3 2 1.5 17 Other States 3.5 0 0.9 4.45 0.8
Subtotal: States 61.6 73 70.6 74.4 68.4
Private Sector 27.6 6.9 6.6 4.4 6.5 Government of India 10.8 21.2 22.8 21.2 , 25.1
Total 100 100 100 100 100
20. Of the 12 projects approved in FY01, eight were single state projects; ofthese, five projects went to non-focus states (Rajasthan, Gujarat, Kerala and Madhya Pradesh). The share of central projects, which had been stable in the past few years, rose to 25.1 %, mainly on account of the two large central projects that were approved in FY01- Grand Trunk Roads (US$ 589 million) and Powergrid II (US$ 450 million).
Country Portfolio Performance Review FY 2001 Page7
Figure 5: Allocation of Portfolio among States, FY97-01 (% of total commitments)
25.0 .-----------------------------
"' 20.0 ..... t:: 'l) e ..... ·6 15.0
e 0 u
] 10.0 0 ..... ..... 0
?J2. 5.0
0.0 AP Tamil Nadu
Main Changes in the Portfolio
jiiiFY97 .FY98 DFY99 IIFYOO .FYOll
UP Karnataka Orissa Rajasthan Others
21. There were 77 projects in the portfolio at the beginning ofFYOl to which 12 new projects were added during the year giving a total of 89 projects under supervision during FYOl. 13 projects closed during the fiscal year and at the end ofFYOl there were a total of76 active projects in the portfolio (Table 5). Of these, two projects were funded under the Montreal Protocol Treaty.
Table 5. Changes in the Portfolio (FYOl) {Number of projects)
Sector July 1, Approved Total in Closed June 30, 2000 Supervision 2001
Education 7 2 9 2 7 Energy 10 2 12 4 8 Environment 4 0 4 0 4* Finance 2 0 2 0 2 Health, Nutrition & Population 16 1 17 1 16 Infrastructure 10 3 13 0 13 Rural 24 3 27 6 21 Social 2 0 2 0 2 PREM 2 1 3 0 3 Total 77 12 89 13 76
*Two Montreal Protocol (MPT) projects for the reduction of Ozone Depleting Substances.
Country Portfolio PerformanceReview FY 2001 PageS
22. Twelve new projects were added to the portfolio in FYOl. These amounted to a total of US$ 2.5 billion, ofwhich US$ 2.03 billion was IBRD and US$ 520 million was IDA.
Table 6. New Projects Approved in FYOl
Sector Project
Project Name Board Date Closing
Net Commitment ($m) ID Date
IDA IBRD Total
1 SASEI P071244 Grand Trunk Road 21-Jun-01 31-Dec-06 0 589.0 589.0
2 SASEI P070421 Karnataka Highways 24-May-01 31-Dec-06 0 360.0 360.0
3 SASE I P035173 Powergrid II 3-May-01 30-Jun-06 0 450.0 450.0
4 SASEI P038334 Rajasthan Power I 18-Jan-01 30-Jun-05 0 180.0 180.0
5 SASE I P010566 Gujarat Highways 5-Sep-00 31-Dec-05 0 381.0 381.0
6 SASHD P055455 Rajasthan Dist. Prim Education II 21-Jun-01 31-Dec-06 74.4 0 74.4
7 SASHD P067543 Leprosy II 27-Mar-01 31-Dec-04 30.0 0 30.0
8 SASHD P050658 Technician Education III 7-Sep-00 30-Jun-06 64.9 0 64.9
9 SASPR P055490 Karnataka SAL I 21-Jun-01 31-Dec-01 75.0 75.0 150.0
10 SASRD P067216 Karnataka Watershed Dev 21-Jun-01 31-Mar-07 100.4 0 100.4
11 SASRD P059242 MP District Poverty 7-Nov-00 30-Jun-06 110.1 0 110.1
12 SASRD P055454 Kerala Rural Water 7-Nov-00 31-Dec-06 65.5 0 65.5
520.3 2,035.0 2,555.3
23. Thirteen projects amounting to US$ 1.6 billion closed in FYO 1. On average, these projects had disbursed 93 % of total net commitments at closing.
Table 7. Projects Closed in FYOl
Board Closing Net Cancell. at Total o;o
Project Name Commt. closing ($m) cancel. disbursed Date Date
($m) ($m) at closing
I Coal Sector Rehabilitation 9-Sep-97 30-Jun-03 262.7 6.5* 269.2 89% 2 Haryana Power APL I 15-Jan-98 31-Dec-00 60 7.7** 7.7 87% 3 Northern Region Transm. 26-Jun-90 30-Sep-00 350.1 99.9 134.9 100% 4 Powergrid System 23-Mar-93 31-Dec-00 275 47.6 122.6 83% 5 Nat Leprosy Elimination 29-Jun-93 30-Sep-00 76.3 0.01 8.7 97% 6 UP Basic Education II 4-Dec-97 30-Sep-00 59.4 0.07 0.07 99% 7 UP Basic Education 10-Jun-93 30-Sep-00 165 0 0 99% 8 Agri Dev Project-Rajasthan 12-Nov-92 30-Sep-00 106 7.1 7.1 90% 9 AP Forestry 24-Feb-94 30-Sep-00 77.4 0.3 0.3 98%
10 Karnataka Water & Sanitation 20-Apr-93 30-Sep-00 92 0 0 99%
11 Rubber 2-Jul-92 30-Sep-00 55.4 6.2 42.9 87%
12 Shrimp & Fish Culture 14-Jan-92 31-Dec-00 35 9.8 59.8 75%
13 UP Sodic Lands 10-Jun-93 31-Mar-01 54.7 0 0 100% *Yet to be cancelled; undisbursed amount is $29.2 million, of which $22.6 million is for special commitments. **Yet to be cancelled; appearing as undisbursed balance.
CounllJJ Portfolio Performance Review FY 2001 Page 9
24. Project Outcomes. Implementation Completion Reports (ICRs) for 14 projects have to be completed in FYOI- for the 13 projects that closed in FYOI and for UP Fiscal & Governance, which closed in FYOO but its ICR will be finalized in FYOI. Ofthese 14 projects, ICRs have been finalized for 13, and of these, 12 projects have been rated as Satisfactory and one as Unsatisfactory. OED evaluation has been carried out for 8 of these 14 projects, and 7 have been rated Satisfactory, giving 87.5% satisfactory outcome, with no disconnect.
Table 8. Development Outcome Ratings for Projects closing in FYOl
Project Project Name Revised LastPSR ICR OED
ID Closing Date Rating Rating Rating
P009979 Coal Sector Rehabilitation 30-Jun-03 u 2 P035160 Haryana Power APL I 31-Dec-00 u u MU
3 P009982 Northern Region Transm. 30-Sep-00 s s s 4 P010416 Powergrid System 31-Dec-00 s s s 5 P010424 National Leprosy Elimination 30-Sep-00 s s 6 P050638 UP Basic Education II 30-Sep-00 s s 7 P009955 UP Basic Education 30-Sep-00 s s 8 P010407 Agri Dev Project -Rajasthan 30-Sep-00 s s s 9 P010449 AP Forestry 30-Sep-00 s HS HS
10 P010418 Karnataka Water Supply 30-Sep-00 s s s 11 P009959 Rubber 30-Sep-00 s s s 12 P009921 Shrimp & Fish Culture 31-Dec-00 s s 13 P009961 UP Sodic Lands 31-Mar-01 s s 14 P065471 UP Fiscal & Governance* 30-0ct-00 s s s
*Project closed in FYOO. ICR for all structural adjustment loans is 6 months from closure. HS: Highly Satisfactory, S- Satisfactory, MU- Moderately Unsatisfactory, U- Unsatisfactory
25. Cancellations (Table 9). Cancellation ofiDA and IBRD funds in FYOl was US$ 302.8 million from eight projects. In addition, there were cancellations at closure for ten of the thirteen projects that closed in FY01 (Table 7). Thus, in FY01, total cancellations, including cancellations at closing, were US$ 488 million.
Counliy Portfolio Pe1jormance Review FY 2001 PagelO
Table 9. Cancellations in FYOl (excluding cancellations at closing)
Project Name Original Cancellations Net Commitment o;o Commitment (US$m) (US$m) cancelled
(US$m)
IDA IBRD In FYOl Total to IDA IBRD date
Industrial Pollution Prevention 25.0 143.0 64.2 65.8 23.4 78.8 39.2%
Financial Sector Development 0 700.0 15.0 316.3 0 383.7 45.2% Blindness Control 117.8 0 10.0 10.0 107.8 8.5% ILFS- [nfrastructure Finance 5.0 200.0 168.9 168.9 5.0 31.1 82.4% Bombay Sewage Disposal 25.0 167.0 10.0 10.0 25.0 157.0 5.2% AP Emergency Cyclone 100.0 50.0 9.0 9.0 91.0 50.0 6.0% Hydrology 142.0 0 19.6 19.6 122.4 0 13.8% Coal Env & Social Mitigation 63.0 0 6.1 6.1 56.9 0 9.7%
26. Project Extensions (Table I 0). Ten projects were extended in FYOl.
Table 10. Projects Extended in FYOl
Original Project Board Closing Revised No. of
ID Project Name Date Date Closing Date Extns
P010410 Renewable Resources 17-Dec-92 31-Dec-99 31-Dec-0 1 2 2 P009870 Container Transport 9-Jun-94 31-Dec-99 31-Dec-01 2
3 P009946 National Highways II 12-May-92 30-Jun-01 31-Dec-02 4 P043310 Coal Env & Social Mitigation 16-M?y-96 30-Jun-01 30-Jun-02
5 P009963 Population VIII 18-Jun-92 30-Jun-01 30-Jun-02 2 6 P009977 Integrated Child Dev II (Bihar & MP) 9-Mar-93 30-Sep-00 30-Sep-02
7 P010455 Blindness Control 12-May-94 30-Jun-01 30-Jun-02 8 P009964 Haryana Water Restructuring 29-Mar-94 31-Dec-00 31-Dec-01 9 POI0448 Forestry Research Education 24-Feb-94 31-Dec-99 31-Dec-0 1 2 10 P010503 Agri Human Resource Devt. 30-Mar-95 31-Dec-00 31-Dec-01
E. Portfolio Action Plan : Summary of Conclusions and Agreements
27. A meeting was held with DEA on October 5, 2001 to review the portfolio and to develop a forward-looking action plan. The minutes of the meeting are given in Annex 7. Key issues that substantially impede project implementation and achievement of development objectives have been identified, and a joint action plan has been developed in Annex 1. A review of current status of actions agreed in the previous Portfolio Review is presented in Annex 2.
Country Portfolio Performance Review FY 200 I Page II
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nclu
de d
isbu
rsem
ent r
atio
, di
sbur
sem
ent l
ag a
nd f
lags
on
proj
ects
wit
h la
gs o
f ove
r 24
mon
ths.
For
prob
lem
pro
ject
s, c
onsi
der
dow
nsiz
ing
or r
eall
ocat
ion
of f
unds
aw
ay f
rom
co
mpo
nent
s or
impl
emen
ting
age
ncie
s th
at a
re n
ot e
ffec
tive
ly u
tili
zing
fun
ds.
Rev
iew
dis
burs
emen
t re
adin
ess
of n
ew p
roje
cts.
CA
AA
mon
itor
ela
psed
tim
e fo
r pr
oces
sing
of r
eim
burs
emen
t cla
ims
wit
hin
MO
F, a
nd
shar
e in
form
atio
n w
ith
DE
A a
nd th
e B
ank.
Fur
ther
dis
cuss
ion
wil
l be
hel
d ab
out t
he r
elea
se o
f fun
ds f
rom
sta
te f
inan
ce d
epar
tmen
ts
to p
roje
cts.
DE
A h
as r
eque
sted
the
Ban
k's
advi
ce o
n fu
nds
flow
mod
els
used
in
othe
r co
untr
ies.
T
hese
wil
l be
dis
cuss
ed b
y O
ctob
er I
Nov
embe
r 20
01.
Dis
cuss
ions
wil
l be
hel
d be
twee
n th
e B
ank
and
DE
A o
n L
AC
I im
plem
enta
tion
and
re
com
men
dati
ons
for
chan
ges.
B
y en
d N
ovem
ber
2001
, the
Ban
k an
d D
EA
wil
l re
view
pr
ojec
ts f
or w
hich
LA
CI
impl
emen
tati
on is
in p
rogr
ess,
and
dis
cuss
ada
ptat
ion
and
mon
itor
ing
of i
mpl
emen
tati
on p
lans
. T
his
wou
ld in
clud
e id
enti
fica
tion
of f
ocus
pro
ject
s on
whi
ch p
roje
ct r
epor
ting
mec
hani
sms
wil
l be
pil
oted
.
Pag
e 12
Issu
e an
d it
s ef
fect
on
proj
ect
perf
orm
ance
S
taff
vac
anci
es/ h
igh
turn
over
in k
ey
posi
tion
s P
roje
ct a
ctiv
itie
s ar
e of
ten
unab
le t
o st
art o
r to
h...-
.. rn1n+n.~ ..
'\a
rl
;+D
+n
..f.f
';o
nrd
-;
• ...,
1"'\l
t:lr-
t::l.
;....,
t~mt:~
IJ.n
rJ
Ul,
.,
.:)U
.:)l
all
llr..
..-U
l.
l .:
)lU
Ll
l.J
ll
VL
1
11
_l
JlU
"'-'
"'-'
1
Ll
t..l
.Ll.
lV'
UL
LU
.
deci
sion
-mak
ing
can
stal
l if
seni
or p
osit
ions
ar
e un
fill
ed.
Del
ayed
dec
isio
ns
on p
ropo
sals
for
re
stru
ctu
rin
g or
rea
lloc
atio
n
Pro
cure
men
t de
lays
P
robl
em o
f maj
or p
roje
ct c
ompo
nent
s be
ing
subs
tant
iall
y de
laye
d by
slo
w p
rocu
rem
ent
proc
ess m
g.
Au
dit
Rep
orts
D
elay
in
the
rece
ipt
of a
udit
rep
orts
led
to
susp
ensi
on o
f dis
burs
emen
ts a
gain
st
Sta
tem
ents
of
Exp
endi
ture
s in
14
proj
ects
in
FY
01.
Inel
igib
le e
xpen
ditu
res
iden
tifi
ed i
n au
dit
repo
rts
led
to a
udit
dis
allo
wan
ces
that
res
ulte
d in
sub
sequ
ent r
ecov
ery
by t
he B
ank.
Cou
ntry
Por
tfol
io P
erfo
rman
ce R
evie
w F
Y 2
001
Act
ion
Pla
n
Bro
ad-b
ased
civ
il s
ervi
ce r
efor
m p
rogr
ams
at s
tate
lev
el i
nclu
de m
easu
res
to r
educ
e tr
ansf
ers.
Stat
e le
\'el ~¥
1edi
um T
erm
Fis
cal
Fram
ev·;o
rks
ensu
re a
dequ
ate
fund
ing
for
proj
ect
expe
ndit
ures
inc
ludi
ng a
ny n
ew s
taff
ing
posi
tion
s re
quir
ed.
Pro
ject
leve
l st
affi
ng p
robl
ems
that
sub
stan
tial
ly u
nder
min
e pe
rfor
man
ce o
ver
a lo
ng
peri
od w
ill
be f
lagg
ed f
or a
tten
tion
of D
EA
and
Ban
k m
anag
emen
t.
Iden
tify
nee
ds f
or r
estr
uctu
ring
or
allo
cati
on a
s ea
rly
as p
ossi
ble.
C
ance
l un
used
fun
ds w
here
tim
ely
rest
ruct
urin
g is
not
com
plet
ed.
Incr
ease
d en
forc
emen
t oft
he
Ban
k's
pro
cure
men
t gu
idel
ines
on
tim
ely
awar
d o
f con
trac
ts
wil
l co
ntin
ue.
Thi
s ha
s le
d to
the
Ban
k de
clar
ing
mis
-pro
cure
men
t or
decl
inin
g to
fin
ance
a
num
ber
of c
ontr
acts
. W
hile
the
se r
epre
sent
a t
iny
frac
tion
of c
ontr
acts
in
the
port
foli
o,
they
hav
e af
fect
ed m
any
sect
ors
and
impl
emen
ting
age
ncie
s an
d ha
ve l
ed to
a n
otic
eabl
e im
prov
emen
t in
proc
essi
ng ti
mes
of o
ther
pro
cure
men
t act
ions
.
The
ong
oing
Cou
ntry
Pro
cure
men
t Ass
essm
ent
Rep
ort
disc
ussi
ons
are
high
ligh
ting
fu
rthe
r ge
neri
c ac
tion
s th
at c
ould
be
take
n up
to
redu
ce p
robl
ems
in f
utur
e. D
iscu
ssio
ns
wil
l be
hel
d w
ith
the
Dep
artm
ent o
f Exp
endi
ture
on
poss
ible
use
ofT
A o
r gr
ant t
o ta
ke
this
fur
ther
. A
wor
ksho
p is
pro
pose
d to
dis
cuss
fin
ding
s ad
rec
omm
enda
tion
s o
f pha
se 2
o
f the
rep
ort
on th
ree
stat
e st
udie
s (T
N,
KN
, U
P).
Mee
ting
bet
wee
n B
ank,
DE
A a
nd C
AG
bef
ore
end
Nov
embe
r 20
01 t
o re
view
issu
es a
nd
iden
tify
nex
t st
eps.
Pro
ject
s w
ill
be e
ncou
rage
d to
pre
pare
ann
ual
fina
ncia
l st
atem
ents
and
res
pond
to a
nd
reso
lve
audi
t fi
ndin
gs i
n a
tim
ely
man
ner.
A w
orki
ng g
roup
wil
l be
est
abli
shed
wit
hin
the
Ban
k to
rev
iew
aud
it f
ollo
w-u
p pr
oced
ures
, an
d fi
ndin
gs a
nd r
ecom
men
dati
ons
wil
l be
sha
red
wit
h D
EA
by
end
Dec
embe
r 20
01.
Pag
e 13
Issu
e an
d it
s ef
fect
on
proj
ect
perf
orm
ance
F on
nat
and
cont
ent o
f the
ann
ual
fina
ncia
l st
atem
ents
and
aud
it r
epor
ts d
o no
t pr
ovid
e su
ffic
ient
com
fort
to t
he B
ank
on th
e us
e o
f pr
ojec
t fu
nds
or a
dequ
acy
of f
inan
cial
m
anag
emen
t.
Del
ays
in c
laim
ing
reim
burs
emen
ts f
or
proj
ect
expe
ndit
ure
lead
s to
und
er-u
tili
zati
on
of f
unds
com
mit
ted
in lo
ans
and
cred
its,
espe
cial
ly u
nder
cen
tral
ly s
pons
ored
pro
ject
s.
Pro
ject
des
ign
and
pre
par
atio
n
Man
y o
f the
abo
ve p
robl
ems
can
be r
educ
ed
by m
ore
thor
ough
pro
ject
pre
para
tion
, en
suri
ng i
mpl
emen
tati
on c
apac
ity
and
shar
ed
owne
rshi
p, a
nd b
ring
ing
forw
ard
key
acti
viti
es b
efor
e pr
ojec
t app
rova
l.
Cou
ntry
Por
tfol
io P
erfo
rman
ce R
evie
w F
Y 2
001
Act
ion
Pla
n
The
Ban
k w
ill
peri
odic
ally
sha
re a
sum
mar
y o
f aud
it d
isal
low
ance
s w
ith
DE
A a
nd w
ill
disc
uss
rem
edia
l m
easu
res.
T
he B
ank
wil
l sh
ift t
owar
ds r
eque
st f
or r
epay
men
t to
incr
ease
tr
ansp
aren
cy.
Per
iodi
call
y, a
lis
t pro
ject
s w
ith
upco
min
g cl
osin
g da
tes
or s
ubje
ct to
Ban
k re
med
ies
for
late
sub
mis
sion
of a
udit
rep
orts
wil
l be
sha
red
wit
h C
&A
G s
o th
at th
ese
audi
t ca
n re
ceiv
e pr
iori
ty a
tten
tion
.
CA
AA
and
the
Ban
k to
pro
vide
add
itio
nal
trai
ning
to p
roje
ct s
taff
on
disb
urse
men
t pr
oced
ures
, tar
geti
ng p
roje
cts
wit
h de
laye
d cl
aim
.
CA
A&
A to
tra
ck th
is d
ata
in th
eir
syst
em a
nd g
ener
ate
and
shar
e ex
cept
ion
repo
rts
for
dela
yed
subm
issi
on o
f cla
ims.
T
heir
sys
tem
cap
ture
s th
is i
nfor
mat
ion
alre
ady
but t
hey
are
not
usin
g th
is i
nfor
mat
ion
to g
ener
ate
this
exc
epti
on r
epor
t. B
ank
staf
f wil
l m
eet
wit
h C
i\A
A to
dis
cuss
whe
ther
they
can
take
on
a m
ore
dire
ct r
ole
in w
orki
ng w
ith
proj
ects
th
roug
h jo
int s
uper
visi
on o
f pro
ject
dis
burs
emen
t act
ivit
ies.
Agr
eem
ent
ofD
EA
and
key
cen
tral
min
istr
ies
to m
ake
mor
e us
e o
f up-
fron
t act
ions
pri
or
to l
oan
appr
oval
, an
d to
ade
quat
ely
fina
nce
proj
ect p
repa
rati
on e
.g.
thro
ugh
exis
ting
pr
ojec
ts, g
rant
s, t
echn
ical
ass
ista
nce
loan
s, b
ilat
eral
ass
ista
nce,
PP
F o
r S
tand
ing
Pro
ject
P
repa
rati
on C
redi
t on
the
line
s o
f TA
for
Eco
nom
ic R
efor
ms
I T
A f
or R
oads
Pro
ject
s.
Invo
lve
C&
AG
and
Fin
anci
al A
dvis
ors
in p
roje
ct p
repa
rati
on.
Incr
ease
d fo
cus
on u
p-fr
ont a
ctio
ns b
efor
e pr
ojec
t neg
otia
tion
s on
(i)
cle
aran
ces,
(ii)
ad
vanc
e pr
epar
atio
n ac
tion
s, (
iii)
pro
cure
men
t act
ions
and
(iv
) es
tabl
ishm
ent o
f pro
ject
im
plem
enta
tion
cap
acit
y.
Pag
e 14
Ann
ex 2
. S
tatu
s o
f ag
reed
act
ions
in
FYO
O C
PP
R
I Iss
ue a
nd
its
eff
ect
on p
roje
ct
I Act
ion
Pla
n M
ay 2
001
I Sta
tus
Sep
tem
ber
2001
I
perf
orm
ance
U
nsat
isfa
ctor
y p
roje
ct
Gen
eric
act
ions
Ann
ual
team
sup
ervi
sion
str
ateg
ies
Com
plet
ed a
nd s
hare
d w
ith
DE
A S
ept 2
001
impl
emen
tati
on p
rogr
ess
or
wit
h a
spec
ial
focu
s on
pro
blem
pro
ject
s.
expe
cted
ach
ieve
men
t o
f de
velo
pmen
t obj
ecti
ves
Qua
rter
ly r
evie
ws
wit
h D
EA
. M
eeti
ngs
held
on
Aug
22,
200
1 on
Wes
tern
re
gion
pro
ject
s an
d on
Aug
3 0-
31,
2001
for
in
fras
truc
ture
and
dis
aste
r m
anag
emen
t pr
ojec
ts.
Pro
ject
-spe
cifi
c ac
tion
s M
onit
or a
ctio
n pl
ans
for
Ban
k re
port
s sh
ared
wit
h D
EA
eac
h m
onth
. pr
ojec
t im
prov
emen
t. C
onsi
der
rest
ruct
urin
g,
Mor
e de
cisi
ve a
ctio
ns b
eing
pro
pose
d an
d re
allo
cati
on,
dow
nsiz
ing.
N
on-p
erfo
rmin
g fu
nds
shou
ld
disc
usse
d.
be c
ance
lled
whe
re n
o co
nvin
cing
alt
erna
tive
use
is p
ut
in p
lace
(co
nsis
tent
wit
h pr
ojec
t obj
ecti
ves)
in
a ti
mel
y
I m
anne
r. I i
Low
dis
burs
emen
ts
Gen
eric
act
ions
Qua
rter
ly r
epor
t on
slow
dis
burs
ing
Dis
burs
emen
t tab
le s
hare
d m
onth
ly,
wit
h I
proj
ects
fl
ags
for
disb
urse
men
t la
gs o
f mor
e th
an 2
4 m
onth
s.
Pro
ject
-spe
cifi
c ac
tion
s C
onsi
der
dow
nsiz
ing
or
real
loca
tion
of f
unds
aw
ay f
rom
com
pone
nts
or
impl
emen
ting
age
ncie
s th
at a
re n
ot e
ffec
tive
ly u
tili
zing
fu
nds.
Cou
ntry
Por
tfol
io P
erfo
rman
ce R
evie
w F
Y 2
001
Pag
e 15
Issu
e an
d it
s ef
fect
on
proj
ect
perf
orm
ance
F
low
of f
unds
P
robl
ems
whe
re i
mpl
emen
ting
ag
enci
es a
re u
nabl
e to
sta
rt w
ork,
in
vite
bid
s, p
ay c
ontr
acto
rs.
Pro
ject
im
plem
enta
tion
is s
low
ed
dow
n an
d fu
nds
ofte
n en
d up
un
used
. P
robl
ems
espe
cial
ly
whe
n st
ate
budg
ets
are
in c
risi
s.
Act
ion
Pla
n M
ay 2
001
Gen
eric
act
ions
Mon
itor
ela
psed
tim
e fo
r pr
oces
sing
of
reim
burs
emen
t cl
aim
s.
CA
AA
now
mon
itor
ing
tim
e ta
ken
in M
OF,
and
wil
l sh
are
info
rmat
ion
wit
h D
EA
and
th
e B
ank.
N
ext
step
is
to m
onit
or r
elea
se o
f fun
ds f
rom
st
ate
fina
nce
depa
rtm
ents
to p
roje
cts
Stat
e le
vel
publ
ic e
xpen
ditu
re m
anag
emen
t ref
orm
s tr
ack
devi
atio
ns b
etw
een
budg
et a
nd a
ctua
l ex
pend
itur
es.
Pro
blem
s st
ill
exis
t and
no
com
preh
ensi
ve s
olut
ion
has
yet b
een
iden
tifie
d.
Pro
ject
-spe
cifi
c ac
tion
s St
ate
fina
nce
depa
rtm
ent
was
by
pass
ed i
n a
stat
e se
ctor
pro
ject
on
a tr
ial
basi
s fo
r O
riss
a C
yclo
ne c
ompo
nent
. O
n re
view
, D
EA
fou
nd
this
was
not
eff
ectiv
e or
app
ropr
iate
, an
d th
ere
are
no
plan
s to
con
tinu
e th
is p
ract
ice.
Mos
t cou
ntri
es e
stab
lish
Spe
cial
Acc
ount
s di
rect
ly a
t the
pr
ojec
t lev
el a
nd th
e B
ank
repl
enis
hes
to t
hem
. In
Ind
ia,
this
app
roac
h is
use
d fo
r di
rect
len
ding
to i
ndep
ende
nt
proj
ect e
ntit
ies
at th
e ce
ntra
l le
vel.
Thi
s co
uld
be
exte
nded
to s
tate
lev
el, w
ith
appr
opri
ate
stat
e an
d G
oi
guar
ante
es.
Dir
ect t
rans
fer
to s
peci
al a
ccou
nts
for
othe
r ca
ses
coul
d be
con
side
red
as p
art o
f im
plem
enta
tion
of L
AC
I.
Cou
ntry
Por
tfol
io P
erfo
rman
ce R
evie
w F
Y 2
001
I Sta
tus
Sep
tem
ber
200
1
CA
AA
is m
onit
orin
g.
Rec
ent
expe
rien
ce is
th
at t
here
app
ear
to b
e no
not
able
sub
stan
tial
de
lays
in
allo
cati
ons
from
Gol
to t
he s
tate
s.
e.g.
Und
er th
e U
P P
rogr
am L
oan,
che
ck
whe
ther
cou
nter
part
fun
ding
for
ext
erna
lly
aide
d pr
ojec
ts is
ide
ntif
ied
as '
Hig
h P
rior
ity
Dev
elop
men
t E
xpen
ditu
re'.
DE
A r
eque
sted
Ban
k ad
vice
on
mod
els
used
in
oth
er c
ount
ries
. T
hese
wil
l be
dis
cuss
ed b
y O
ctob
er I
Nov
embe
r 20
01.
Dis
cuss
ions
hel
d be
twee
n B
ank
and
DE
A o
n L
AC
I im
plem
enta
tion
and
rec
omm
enda
tion
s fo
r ch
ange
s.
DE
A p
arti
cipa
ted
in a
te
leco
nfer
ence
wit
h th
e B
ank'
s F
inan
cial
M
anag
emen
t Anc
hor,
and
pro
vide
d de
tail
ed
wri
tten
com
men
ts
Pa
gel
6
Issu
e an
d it
s ef
fect
on
proj
ect
Act
ion
Pla
n M
ay 2
001
Stat
us S
epte
mb
er 2
001
per
form
ance
S
taff
vac
anci
es/ h
igh
tu
rnov
er
Gen
eric
act
ions
Bro
ad-b
ased
civ
il s
ervi
ce r
efor
m
Mea
sure
s be
ing
deve
lope
d to
red
uce
in k
ey p
osit
ions
· pr
ogra
ms
at s
tate
lev
el i
nclu
de m
easu
res
to r
educ
e un
nece
ssar
y tr
ansf
ers,
e.g
. K
arna
taka
P
roje
ct a
ctiv
itie
s ar
e of
ten
unab
le
tran
sfer
s.
(e.g
. U
P, K
amat
aka)
to
sta
rt o
r to
be
sust
aine
d if
staf
f is
not
in
plac
e in
tim
e, a
nd
Sta
te le
vel
Med
ium
Ter
m F
isca
l F
ram
ewor
ks e
nsur
e de
cisi
on-m
akin
g ca
n st
all
if
adeq
uate
fun
ding
for
pro
ject
exp
endi
ture
s in
clud
ing
any
Bei
ng t
aken
up
for
new
pro
ject
s e.
g. i
n K
N,
seni
or p
osit
ions
are
unf
ille
d.
new
sta
ffin
g po
siti
ons
requ
ired
. U
P,K
E,M
A.
Com
mit
men
t to
proj
ect
obje
ctiv
es
is o
ften
dim
inis
hed
if th
ere
are
Pro
ject
-spe
cifi
c ac
tion
s P
roje
ct s
taff
ing
prob
lem
s th
at
num
erou
s su
cces
sive
cha
nges
in
subs
tant
iall
y un
derm
ine
perf
orm
ance
ove
r a
long
per
iod
Spe
cifi
c ca
ses
bein
g ta
ken
up
wit
h D
EA
in
I
key
staf
f.
will
be
flag
ged
for
atte
ntio
n o
f DE
A a
nd B
ank.
ai
de-m
emoi
res,
fol
low
-up
lett
ers
and
revi
ews.
.
Del
ayed
dec
isio
ns o
n P
roje
ct-s
peci
fic
acti
ons
Iden
tify
nee
ds f
or
Bot
h D
EA
and
the
Ban
k ha
ve b
een
mor
e re
stru
ctur
ing
or r
eall
ocat
ion
re
stru
ctur
ing
or a
lloc
atio
n as
ear
ly a
s po
ssib
le.
proa
ctiv
e w
ith
rest
ruct
urin
g an
d ca
ncel
lati
on
I
prop
osal
s ha
ve s
ubst
anti
ally
pr
opos
als.
di
min
ishe
d op
port
unit
ies
for
Can
cel u
nuse
d fu
nds
whe
re t
imel
y re
stru
ctur
ing
is n
ot
mak
ing
bett
er u
se o
f non
-co
mpl
eted
. pe
rfor
min
g or
unu
sed
fund
s in
a
num
ber of
p~oj
ects
_._
---
....
.. '
---
-----~ ··
----
----
-----·-
L ..
. ---
---------
Cou
ntry
Por
tfol
io P
erfo
rman
ce R
evie
w F
Y 2
001
Pag
e 17
Issu
e an
d it
s ef
fect
on
pro
ject
pe
rfor
man
ce
Pro
cure
men
t de
lays
P
robl
em o
f maj
or p
roje
ct
com
pone
nts
bein
g su
bsta
ntia
lly
dela
yed
by s
low
pro
cure
men
t pr
oces
smg.
Au
dit
del
ays
Thi
s le
d to
sus
pens
ion
of
disb
urse
men
ts a
gain
st S
tate
men
ts
ofE
xpen
ditu
res
unde
r 10
pro
ject
s in
Feb
ruar
y 20
01 w
ith
a fu
rthe
r fo
ur l
ikel
y in
May
-Jun
e 20
01.
Lac
k o
f res
pons
e to
aud
it
disa
llow
ance
s fo
r F
Y 1
998-
99
resu
lted
in
subs
eque
nt r
ecov
ery
by t
he B
ank
ofR
s 12
9 cr
ore
($28
m
illi
on)
unde
r 28
pro
ject
s.
Act
ion
Pla
n M
ay 2
001
Gen
eric
act
ions
A
n im
port
ant r
emed
ial
acti
on h
as b
een
incr
ease
d en
forc
emen
t of t
he B
ank'
s pr
ocur
emen
t gu
idel
ines
on
tim
ely
awar
d o
f con
trac
ts.
Bet
wee
n Ju
ly
2000
and
Apr
il 2
001
the
Ban
k ha
s de
clin
ed to
fin
ance
ab
out
15 c
ontr
acts
for
thi
s re
ason
. W
hile
the
se r
epre
sent
a
tiny
fra
ctio
n o
f con
trac
ts i
n th
e po
rtfo
lio,
the
y ha
ve
affe
cted
man
y se
ctor
s an
d im
plem
enti
ng a
genc
ies
and
have
led
to a
not
icea
ble
impr
ovem
ent
in p
roce
ssin
g ti
mes
of o
ther
pro
cure
men
t act
ions
.
Pro
ject
-spe
cifi
c ac
tion
s M
ore
thor
ough
ass
essm
ent
of
proc
urem
ent
capa
city
, pre
para
tion
of p
rocu
rem
ent p
lans
an
d up
-fro
nt p
rocu
rem
ent
acti
ons
duri
ng p
roje
ct
prep
arat
ion.
Tra
inin
g on
pro
cure
men
t pro
cedu
res
in B
ank
fina
nced
pr
ojec
ts.
Use
of p
rocu
rem
ent a
gent
s
Gen
eric
act
ions
Ban
k an
d C
&A
G to
arr
ange
w
orks
hops
at
stat
e le
vel o
n co
mm
on a
udit
issu
es.
Ban
k an
d C
&A
G to
rev
iew
Ter
ms
of R
efer
ence
of
audi
t fo
r B
ank-
fina
nced
pro
ject
s.
Ban
k w
ill p
erio
dica
lly
shar
e a
sum
mar
y o
f aud
it
disa
llow
ance
s w
ith
DE
A a
nd w
ill
disc
uss
rem
edia
l m
easu
res.
T
he B
ank
wil
l sh
ift t
owar
ds r
eque
st f
or
repa
ymen
t to
inc
reas
e tr
ansp
aren
cy.
Pro
ject
-spe
cifi
c ac
tion
s P
roje
cts
wil
l be
enc
oura
ged
to
resp
ond
to a
udits
.
Cou
ntry
Por
tfol
io P
erfo
rman
ce R
evie
w F
Y 2
001
Stat
us S
epte
mb
er 2
001
The
exa
mpl
e ef
fect
of t
his
has
been
ver
y po
siti
ve.
The
ong
oing
Cou
ntry
Pro
cure
men
t A
sses
smen
t R
epor
t di
scus
sion
s ar
e hi
ghli
ghti
ng f
urth
er g
ener
ic a
ctio
ns th
at c
ould
be
tak
en u
p to
red
uce
prob
lem
s in
fut
ure.
Thi
s is
bei
ng d
one
for
new
pro
ject
s.
Tra
inin
g re
gula
rly
prov
ided
thr
ough
cou
rses
at
AS
CI
and
Nat
iona
l In
stit
ute
of F
inan
cial
M
anag
emen
t. T
wo
half
-day
tra
inin
gs u
sual
ly
held
for
all
proj
ects
dur
ing
appr
aisa
l/ la
unch
. W
orks
hops
als
o he
ld o
n a
case
-by-
case
bas
is.
Pre
lim
inar
y di
scus
sion
s he
ld b
etw
een
Ban
k an
d C
&A
G.
Inst
itut
iona
l D
evel
opm
ent
Fund
gr
ant f
or C
&A
G w
as a
ppro
ved
by th
e B
ank
in
June
.
Las
t do
ne in
May
200
1.
The
Ban
k is
fol
low
ing
up t
hrou
gh p
roje
ct
supe
rvis
ion
repo
rts
and
mee
ting
s w
ith s
ecto
r te
ams.
Pag
e 18
Issu
e an
d it
s ef
fect
on
proj
ect
Act
ion
Pla
n M
ay 2
001
Stat
us S
epte
mb
er 2
001
per
form
ance
D
elay
s in
cla
imin
g G
ener
ic a
ctio
ns A
fter
the
init
ial
budg
et a
lloc
atio
n o
f re
imb
urs
emen
ts f
or p
roje
ct
the
fisc
al y
ear,
som
e de
part
men
ts m
ake
subs
eque
nt
expe
ndit
ure
lead
s to
und
er-
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util
izat
ion
of f
unds
com
mit
ted
in
clai
ms.
T
his
crea
tes
ince
ntiv
es f
or t
imel
y cl
aim
s bu
t can
lo
ans
and
cred
its,
esp
ecia
lly
add
new
obs
tacl
es to
tim
ely
flow
of f
unds
. un
der
cent
rall
y sp
onso
red
proj
ects
. C
AA
&A
to t
rack
this
dat
a in
thei
r sy
stem
and
gen
erat
e M
eeti
ngs
held
wit
h D
EA
on
stre
amli
ning
ex
cept
ion
repo
rts
for
dela
yed
subm
issi
on o
f cla
ims.
pr
oces
sing
of w
ithd
raw
al a
ppli
cati
ons.
T
heir
sys
tem
cap
ture
s th
is i
nfor
mat
ion
alre
ady
but t
hey
are
not u
sing
thi
s in
form
atio
n to
gen
erat
e th
is e
xcep
tion
re
port
.
Pro
ject
-spe
cifi
c ac
tion
s C
onsi
der
dow
nsiz
ing
or
Exa
mpl
es :
Env
iron
men
t C
apac
ity
Bui
ldin
g re
allo
cati
on o
f fun
ds a
way
fro
m c
ompo
nent
s or
T
A p
roje
ct.
impl
emen
ting
age
ncie
s th
at a
re n
ot e
ffec
tive
ly u
tili
zing
fu
nds.
F
ocus
on
the
heal
th s
ecto
r.
Pro
ject
des
ign
and
prep
arat
ion
Gen
eric
act
ions
Agr
eem
ent
ofD
EA
and
key
cen
tral
N
ew p
roje
cts
bein
g m
ore
clos
ely
mon
itor
ed.
Man
y o
fth
e ab
ove
prob
lem
s ca
n m
inis
trie
s to
mak
e m
ore
use
of u
p-fr
ont
acti
ons,
and
to
be r
educ
ed b
y m
ore
thor
ough
ad
equa
tely
fin
ance
pro
ject
pre
para
tion
e.g
. th
roug
h pr
ojec
t pr
epar
atio
n, e
nsur
ing
exis
ting
pro
ject
s, t
echn
ical
ass
ista
nce
loan
s, b
ilat
eral
im
plem
enta
tion
cap
acit
y an
d as
sist
ance
or
Pro
ject
Pre
para
tion
Fac
ilit
ies.
sh
ared
ow
ners
hip,
and
bri
ngin
g ,,
forw
ard
key
acti
viti
es b
efor
e In
volv
e C
&A
G a
nd F
inan
cial
Adv
isor
s in
pro
ject
pr
ojec
t ap
prov
al.
prep
arat
ion.
Pro
ject
-spe
cifi
c ac
tion
s U
p-fr
ont a
ctio
ns b
efor
e pr
ojec
t ne
goti
atio
ns o
n (i
) cl
eara
nces
, (i
i) a
dvan
ce p
repa
rati
on
acti
ons,
(ii
i) p
rocu
rem
ent a
ctio
ns a
nd (
iv)
esta
blis
hmen
t o
f pro
ject
im
plem
enta
tion
cap
acit
y.
Clo
se a
tten
tion
to p
roje
ct d
esig
n to
ens
ure
stro
ng
evid
ence
of "
owne
rshi
p"
Cou
ntry
Por
tfol
io P
erfo
rman
ce R
evie
w F
Y 2
001
Pag
e 19
Annex 3. Problem Projects in FYOO CPPR (as on June 30, 2000)
Name of Project and Status as on June 30,2000 Status as on June 30,2001 I Coal Sector Rehabilitation Project closed unsatisfactory following Gol
Development Objective: Unsatisfactory; request for cancellation of$ 265 million. Implementation Progress: Unsatisfactory Flags : Effectiveness delays, Environment/ resettlement problems.
2 Haryana Power APL-I Closed, unsatisfactory. Development Objective: Unsatisfactory; Implementation Progress :Unsatisfactory Flags : legal covenants, Financial covenants, Project management, Critical risk rating
3 Environment Cai_:lacity Building T A Out of risk status following restructuring with Development Objective : Unsatisfactory; dropping of non-performing components and Implementation Progress : Unsatisfactory cancellation of $30 million. Flags : Legal covenant, Slow Disbursements Flags: Procurement, Slow Disbursements
4 Industrial Pollution Prevention Development Objective : Unsatisfactory Development Objective : Unsatisfactory; Implementation Progress : Unsatisfactory. Implementation Progress : Unsatisfactory This long-standing problem project has been Flags : Counterpart funds extended for 12 months, with partial cancellation
of$18 million, to finance an investment component that is showing improved performance. Project scheduled to close in March 2002.
5 Population IX Out of risk status. US$ I 0 million reallocated for Development Objective: Unsatisfactory; emthquake reconstruction in Gujarat. Implementation Progress : Satisfactory Flags : Procurement, Project management
6 Container Transport Out of risk status Development Objective: Satisfactory; Implementation Progress : Unsatisfactory Flags : Procurement
7 Ecodevelopment Out of risk status following Mid Term Review in Development Objective : Unsatisfactory; May 2000. Implementation Progress : Unsatisfactory Flags : Legal covenants, Counterpart funds, Monitoring & Evaluation, Project management
8 Coal Environment & Social Mitigation Out of risk status. Development Objective : Unsatisfactory; Flags : Environment/ resettlement problems, Slow Implementation Progress: Unsatisfactory disbursements Flags : Procurement, Environment/ resettlement problems, Monitoring & Evaluation
Country Portfolio Performance Review FY 2001 Page 20
Name of Project and Status as on June 30, 2000 Status as on June 30, 2001 9 Reproductive Health 1 Out of risk status. US$ 30 million reallocated
Development Objective : Satisfactory; for earthquake reconstruction in Gujarat. Implementation Progress : Unsatisfactory Flags : Project Management
10 Women & Child Development Out of risk status following restructuring, Development Objective: Unsatisfactory; with reallocation of US$ 60 million for Implementation Progress : Unsatisfactory earthquake reconstruction in Gujarat. Flags : Effectiveness delays, Project Management, Counterpart Funds, Monitoring & Evaluation
11 UP Diversified Agricultural Services Project Out of risk status Development Objective : Satisfactory; Implementation Progress : Unsatisfactory Flags: Legal covenant, Procurement, Financial covenant, Project management
12 Orissa Power Restructuring Project Development Objective: Unsatisfactory; Flags: Counterpart funding, financial covenants Implementation Progress : Unsatisfactory
Flags : Counterpart Funds, Financial Covenants Downgraded to Problem status in June '01.
13 Blindness Control Out of risk status Flags : Counterpart funding, Slow disbursements Flags : Slow disbursements
$20 million reallocated to Gujarat earthquake
14 Tuberculosis Control Out of risk status. Flags : Project management, Slow disbursements. Flags : Legal covenants, Slow disbursements
15 Agricultural Development Project- Raja;;than Closed, satisfactory. Flags : Counterpart funding, Slow disbursements.
16 Hydrology Project Out of risk status. $19m cancelled. Flags : Project management, Slow disbursements Flags : Procurement
17 Orissa Water Restructuring Out of risk status Flags : Legal covenant compliance, Procurement Flags : Legal covenants
18 Tamil Nadu Water Restructuring Out of risk status Flags : Legal covenants, Environment I Flags : Legal covenants resettlement problems, Slow disbursements
19 Rural Women's Development Out of risk status Flags : Project management, Slow disbursement
20 AP Economic Restructuring Project Out of risk status Flags : Counterpart funding, financial covenants Flags : Financial Covenants
Coun{Jy Portfolio Performance Review FY 2001 Page 21
Annex 4. Problem Projects at start ofFY02 (as on June 30, 2001)
Project Status as on June 30, 2001 Actions planned and Status Update, August 2001
1 Industrial Pollution Prevention This long-standing problem project was extended to Problem Project for 17 months at start of FYO 1. finance an investment component that is showing Development Objective : Unsatisfactory; improved performance. Project is scheduled to Implementation Progress : Unsatisfactory close in March 2002.
2 Orissa Power Project was suspended on July 11, 2001. Future Development Objective: Unsatisfactory; success will depend on state commitment to timely Implementation Progress : Unsatisfactory funds flow and policy decisions. Flags : Counterpart Funds, Financial Covenants
3 AP Emergency Cyclone Project was extended by one year to July 31, 2002 Development Objective: Unsatisfactory; to allow completion of important disaster Implementation Progress : Unsatisfactory monitoring and forecasting activities. Project Flags : Legal Covenants, Management Problems upgrading I restructuring expected in early
December 2001.
4 UP Health Systems Out of risk status Development Objective: Satisfactory; Positive actions taken by GoUP to achieve June 30 Implementation Progress : Unsatisfactory benchmarks led to project being upgraded in Flags: Procurement Problems July '0 1.
5 District Primary Education Project III {Bihar) Previously at risk- was downgraded in June '01. Development Objective: Unsatisfactory; Various remedial actions are being considered, and Implementation Progress: Unsatisfactory action benchmarks are being set. Flags: Legal covenants, Project Management, Slow Disbursements.
6 Malaria Control Project The mid-term review in October 2001 will be Development Objective: Unsatisfactory; important for resolving future direction for the Implementation Progress: Unsatisfactory project. The supervision plan for the coming year Flags: Monitoring & Evaluation, Management includes continuous attention beginning with early Problems, Slow Disbursements, Procurement. follow-up in August.
Country Portfolio Performance Review FY 2001 Page 22
Annex 5. Trends in Commitments and Disbursements, FY95-01 IBRD IDA Total
Commlitments (US$ Million) FY95 1,119 945 2,064 FY96 777 1,301 2,078 FY97 627 903 1,530 FY98 1,068 1,074 2,142 FY99 400 655 1,055 FYOO 934 866 1,800 FY01 520 2,035 2,555
Total FY95 to FYOl 5,445 7,779 13,224
Disbursements (US$ Million) FY95 793 990 1,783 FY96 567 742 1,309 FY97 671 892 1,563 FY98 574 800 1,374 FY99 537 900 1,437 FYOO 749 949 1,698 FY01 613 1,031 1,644
Total :FY95 to FYOl 4,504 6,304 10,808
Repayments (US$ Million) IBRD IDA Total Interest Total Principal & Fees
FY95 862 201 1,063 FY96 920 229 1,149 884 2,033 FY97 833 237 1,070 790 1,860 FY98 893 254 1,147 706 1,855 FY99 856 301 1,157 671 1,828 FYOO 1,165 336 1,501 646 2,147 FY01 723.8 385.3 1109.1 538.9 1,648
Total FY95 to FYOl 6,253 1,943 8,196 4,236 11,371
Country Portfolio Performance Review FY 2001 Page 23
Ann
ex 6
: L
ist o
f IB
RD
Loa
ns a
nd
ID
A C
redi
ts i
n th
e P
ortf
olio
, Ju
ne
30, 2
001
Sec
tor
Pro
ject
Nam
e O
rigi
nal C
om
mit
men
t C
ance
llat
ions
N
et C
omm
itm
ents
D
isbu
rsem
ents
T
otal
D
is b
. (U
S$m
) (U
S$m
) (U
S$m
) (U
S$m
) P
erce
nt
rati
o in
ID
A
IBR
D
Oth
er
FY01
T
otal
FY
01
To
tal
Dis
burs
ed
FY
OP
1
SASE
I A
P E
mer
genc
y C
yclo
ne
100.
0 50
.0
• 9.
0 9.
0 14
1.0
29.7
81
.0
57%
31
.6
2 SA
SEI
AP
Pow
er A
PL I
·
210.
0 -
• -
210.
0 38
.7
100.
8 48
%
26.1
3
SASE
I A
P St
ate
I--Iig
hway
s -
350.
0 -
--
350.
0 62
.8
129.
5 37
%
22.2
4
SASE
I B
omba
y Se
wag
e D
ispo
sal
25.0
16
7.0
-10
.0
10.0
18
2.0
21.7
10
7.1
59%
20
.8
5 SA
SEI
Con
tain
er T
rans
port
-
94.0
-
-15
.0
79.0
5.
0 39
.7
50%
11
.3
6 SA
SEI
Gra
ndT
runk
Roa
ds
-58
9.0
· •
-58
9.0
--
0%
na
7 SA
SEI
Guj
arat
I--Ii
ghw
ays
· 38
1.0
· -
-38
1.0
40.9
40
.9
11%
na
8
SASE
I IL
FS-I
n±ra
stru
ctur
e Fi
nanc
e 5.
0 20
0.0
-16
8.9
168.
9 36
.1
0.1
25.9
72
%
0.1
9 SA
SEI
Kam
atak
a I--
Iighw
ays
-36
0.0
--
-36
0.0
--
0%
na
10
SASE
I M
adra
s W
ater
Sup
ply
II
-27
5.8
--
189.
3 86
.5
16.7
67
.5
78%
46
.7
11
SASE
I N
athp
a Jh
akri
Hyd
ro
-48
5.0
--
-48
5.0
20.7
42
5.2
.88%
25
.7
12
SASE
I N
atio
nal I
--Iig
hway
s II
15
3.0
153.
0 -
--
306.
0 40
.2
274.
7 90
%
48.9
13
SA
SEI
Nat
iona
l I--
Iighw
ays
III
-51
6.0
-·
-51
6.0
43.9
43
.9
9%
8.5
14
SASE
I O
riss
a P
ower
-
350.
0 -
--
350.
0 51
.0
134.
8 39
%
19.2
15
SA
SEI
Pow
ergr
id I
I -
450.
0 •
--
450.
0 -
-0%
na
16
SA
SEI
Raj
asth
an P
ower
I -
180.
0 -
-·
180.
0 17
.0
18.5
10
%
na
17
SASE
I R
enew
able
Ene
rgy
II
50.0
80
.0
-·
130.
0 3.
0 3.
0 2%
2.
4 18
SA
SEI
Ren
ewab
le R
esou
ces
115.
0 75
.0
--
190.
0 27
.8
149.
6 79
%
45.6
19
SA
SEI
TA
±or
Sta
teR
oads
-
51.5
-
--
51.5
9.
9 41
.5
81%
49
.8
20
SASE
I T
amil
Nad
u U
rban
Dev
elop
men
t II
-
105.
0 -
--
105.
0 54
.7
70.1
67
%
61.1
,
21
SASE
I U
P P
ower
Sec
tor R
estr
uctu
ring
-
150.
0 -
--
150.
0 15
.9
15.9
11
%
10.6
i
22
SASE
S C
FC
Pro
dt O
osur
e O
DS
III
--
83.0
-
-83
.0
na
29.5
36
%
na
23
SASE
S C
oal E
nv &
Soc
ial M
itiga
tion
63.0
-
-6.
1 6.
1 56
.9
4.1
26.0
46
%
12
24
SASE
S E
nv C
apac
ity B
uild
ing
TA
50
.0
--
--
50.0
6.
8 12
.9
26%
17
.9
25
SASE
S In
dust
rial
Pol
luti
on P
reve
ntio
n 25
.0
143.
0 -
64.2
65
.8
102.
2 7.
5 31
.1
30%
5.
4 26
SA
SES
Ozo
ne D
eple
ting
Sub
stan
ces
II
--
50.0
-
-50
.0
na
19.5
39
%
na
• 27
SA
SES
Rur
al W
omen
's D
evel
opm
ent
19.5
-
--
-19
.5
0.3
2.1
11%
2
28
SASF
P Fi
nanc
ial S
ecto
r Dev
elop
men
t -
700.
0 -
15.0
31
6.3
383.
7 71
.5
377.
5 98
%
77.1
29
SA
SFP
Tel
ecom
Sec
tor
Re±
orm
TA
-
62.0
-
--
62.0
3.
8 3.
8 6%
6.
1 30
SA
SHD
2n
d N
atio
nal
HIV
AID
S 19
1.0
--
--
191.
0 38
.6
43.6
23
%
22.3
31
SA
SHD
A
P 1
st R
efer
ral H
ealt
h 13
3.0
-·
--
133.
0 17
.1
93.2
70
%
38.7
32
SA
SHD
B
lindn
ess
Con
trol
11
7.8
--
10.0
10
.0
107.
8 14
.3
59.1
55
%
21.1
33
SA
SHD
D
istr
ict P
rim
ary
Edu
cati
on P
rogr
am
260.
3 -
--
-26
0.3
22.9
16
9.2
65%
24
.3
34
SASH
D
Dis
tric
t Pri
mar
y E
duca
tion
Pro
gram
II
425.
2 -
--
-42
5.2
82.0
25
7.8
61%
39
.9
35
SASH
D
Dis
tric
t Pri
mar
y E
duca
tion
Pro
gram
III
(B
ihar
) 15
2.0
--
--
152.
0 7.
7 30
.0
20%
6.
4 36
SA
SHD
In
tegr
ated
Chi
ld D
ev S
ervi
ces
II (
Bih
ar &
MP)
19
4.0
--
--
194.
0 52
.9
146.
0 75
%
56.3
37
SA
SHD
Im
mun
izat
ion
Stre
ngth
enin
g 14
2.6
--
--
142.
6 29
.6
29.6
21
%
22.1
38
SA
SHD
L
epro
sy II
30
.0
--
--
30.0
-
-0%
na
g
p ''
D1s
burs
emen
t ra
uo
: d1
sbur
sem
ents
du
nn
er
cent
af!e
ot
und1
sbur
sed
ba a
nce
m b
ef!m
nmf!
ot
vear
. N
ot
ava!
la
e to
r th
e 12
oro
1ect
s'
~"~'
ects
1
''
~
pp
proJ
y
ty.
Cou
ntry
Por
tfol
io P
erfo
rman
ce R
evie
w F
Y 2
001
Pag
e 24
Sec
tor
Pro
ject
Nam
e O
rig
inal
Co
mm
itm
ent
Can
cell
atio
ns
Net
Co
mm
itm
ents
D
isb
urs
emen
ts
To
tal
Dis
b.
(US
$m)
(US
$m)
(US
$m)
(US
$m
) P
erce
nt
rati
o in
ID
A
IBR
D
Oth
er
FY
01
To
tal
FY
01
To
tal
Dis
bu
rsed
FY
or:-
39
SA
SH
D
Mah
aras
htra
Hea
lth
Syst
ems
134.
0 -
--
-13
4.0
4.9
8.3
6%
4.1
;
40
SA
SH
D
Mal
aria
Con
trol
16
4.8
--
--
164.
8 15
.0
36.6
22
%
11.5
41
SA
SH
D
Ori
ssa
Hea
lth
Syst
ems
76.4
-
--
-76
.4
, A
"7
/
10f}b
<;:
J.'
t I
.0
..J
42
SA
SH
D
Pop
ulat
ion
IX
88.6
-
--
-88
.6
12.7
56
.0
63%
32
.2
43
SA
SH
D
Pop
ulat
ion
VII
I 79
.0
--
--
79.0
14
.5
48.8
62
%
35.2
44
SA
SH
D
Raj
asth
an D
istr
ict P
rim
ary
Edu
cati
on P
rogr
am
85.7
-
--
-85
.7
3.6
7.1
8%
4.7
45
SA
SH
D
Raj
asth
an D
istr
ict P
rim
ary
Edu
cati
on P
rogr
am I
I 74
.4
--
--
74.4
-
-0%
na
46
SA
SH
D
Rep
rodu
ctiv
e &
Chi
ld H
ealt
h 24
8.3
--
--
248.
3 46
.4
96.3
39
%
25.7
47
SA
SH
D
Sta
te H
ealt
h Sy
stem
s II
35
0.0
--
--
350.
0 58
.6
176.
2 50
%
31.1
48
SA
SH
D
Tec
hnic
ian
Edu
cati
on I
II
64.9
-
--
-64
.9
3.1
3.1
5%
na
49
SA
SH
D
Tub
ercu
losi
s C
ontr
ol
142.
4 -
--
-14
2.4
20.4
26
.9
19%
17
.3
50
SA
SH
D
UP
Dis
tric
t Pri
mar
y E
duca
tion
Pro
gram
III
18
2.4
--
--
182.
4 36
.0
36.0
20
%
21.6
51
SA
SH
D
UP
Hea
lth
Syst
ems
110.
0 -
--
-11
0.0
2.9
2.9
3%
2.8
52
SA
SH
D
Wo
men
& C
hild
Dev
elop
men
t 30
0.0
--
--
300.
0 28
.1
38.1
13
%
10.4
53
SA
SP
R
AP
Eco
nom
ic R
estr
uctu
ring
24
1.9
301.
3 -
--
543.
2 68
.3
204.
3 38
%
17.2
54
S
AS
PR
K
amat
aka
SA
L I
75
.0
75.0
-
--
150.
0 -
-0%
na
55
S
AS
PR
T
A to
r E
con
Ref
orm
45
.0
--
--
45.0
1.
5 1.
5 3%
3.
6 56
S
AS
RD
A
gric
ultu
ral H
um
an R
esou
rces
Dev
elop
men
t 59
.5
--
--
59.5
11
.9
48.4
81
%
67.5
57
S
AS
RD
A
P D
istr
ict P
over
ty In
itia
tive
s P
rogr
am
111.
0 -
--
-11
1.0
4.2
4.2
4%
4.1
58
SA
SR
D
AP
Irr
igat
ion
III
150.
0 17
5.0
--
325.
0 34
.7
119.
9 37
%
14.9
59
S
AS
RD
A
ssam
Rur
al I
nfra
stru
ctur
e 12
6.0
--
--
126.
0 25
.9
51.2
41
%
32.7
60
S
AS
RD
E
code
velo
pmen
t 28
.0
--
--
28.0
3.
8 10
.2
36%
20
.4
61
SA
SR
D
For
estr
y R
esea
rch
Edu
cati
on
47.0
-
--
-47
.0
7.1
39.9
85
%
53.4
62
S
AS
RD
H
arya
na W
ater
Res
ourc
es C
onso
lida
tion
25
8.0
--
--
258.
0 60
.1
213.
2 83
%
61.3
63
S
AS
RD
H
_Xdr
olog
y P
roje
ct
142.
0 -
-19
.6
19.6
12
2.4
15.4
60
.3
49%
21
.1
64
SA
SR
D
Kam
atak
a W
ater
shed
s 10
0.4
--
--
100.
4 -
-0%
na
65
S
AS
RD
K
eral
a F
ores
try
39.0
-
--
-39
.0
4.3
14.5
37
%
15.9
66
S
AS
RD
K
eral
a R
ural
Wat
er S
uppl
y an
d S
anit
atio
n 65
.5
--
--
65.5
2.
5 2.
5 4%
na
67
S
AS
RD
M
P D
istr
ict P
over
ty In
itia
tive
s P
rogr
am
110.
1 -
--
-11
0.1
3.5
3.5
3%
na
68
SA
SR
D
Nat
iona
l Agr
icul
tura
l Tec
hnol
ogy
100.
0 96
.8
--
-19
6.8
32.5
41
.6
21%
17
.9
69
SA
SR
D
Ori
ssa
Wat
er R
esou
rces
Con
soli
dati
on
290.
9 -
--
-29
0.9
35.3
16
9.0
58%
28
.6
70
SA
SR
D
Raj
asth
an D
istr
ict P
over
ty In
itia
tive
s P
rogr
am
100.
5 -
--
-10
0.5
3.7
3.7
4%
4 71
S
AS
RD
T
amil
Nad
u W
ater
Res
ourc
es C
onso
lida
tion
28
2.9
--
--
282.
9 31
.4
126.
1 45
%
22
72
SA
SR
D
UP
Div
ersi
fied
Agn
cult
ure
Pro
ject
50
.0
79.9
-
--
129.
9 11
.1
23.7
18
%
9.7
73
SA
SR
D
UP
For
estr
y 52
.9
--
--
52.9
7.
1 21
.4
40%
19
.8
74
SA
SR
D
UP
Rur
al W
ater
-
59.6
-
-7.
2 52
.4
9.6
24.5
47
%
25.7
75
S
AS
RD
U
P S
adie
Lan
ds I
I 19
4.1
--
--
194.
1 18
.3
30.6
16
%
11
76
SA
SR
D
Wat
ersh
ed M
anag
emen
t Hill
s II
50
.0
85.0
-
--
135.
0 15
.1
28.6
21
%
12.7
T
OT
AL
fo
r In
dia
70
72
6964
.9
133.
0 30
2.8
817.
2 13
437.
7 14
82.3
4,
887.
2 36
%
20.9
''D
is b
urse
men
t ra
tio:
dis
burs
emen
ts d
urin
g ye
ar a
s a
perc
enta
ge o
f un
disb
urse
d ba
anc
e at
beg
innm
g ot
yea
r. N
ot
avau
at e
to
r th
e 12
.,..
.....,r
......
l
. '
n .,..
g
ot
yc pr
oJ
pp
proJ
y
ty.
Cou
ntry
Por
tfol
io P
erfo
rman
ce R
evie
w F
Y 2
001
Pag
e 25
Annex 7: CPPR FYOl Review Meeting with DEA New Delhi, October 5, 2001
Summary of Discussions, Recommendations and Agreements
1. Dr. Kishore noted the significant improvement in the quality of the portfolio during FY01, and said all efforts must be made by DEA and the Bank to ensure that this satisfying per£ormance is sustained.
2. Mr. Garg highlighted some ofthe main achievements of the portfolio as listed in the FY01 CPPR. The projects at risk, in number and commitments, have declined dramatically during FYO 1; the disbursement ratio for the year is the highest on record; and there is no disconnect in outcome ratings. He noted the steady increase over time in total commitments and size of the India portfolio, with IDA lending being more or less stable in the last three years, while IBRD has been somewhat more volatile. He also noted the timeliness of this year's report, and that action has been initiated on every point listed in Annex 2. He said that Annex 1 has been jointly discussed by DEA and the Bank to target improvement in performance by ensuring that all existing weakness are incorporated.
3. Mr. Garg said that DEA has two concerns regarding portfolio composition. The first is sectoral lopsidedness, with three sectors - financial and private sector development, environment and social development- having very few projects compared to the rest of the sectors. Mr. Lim clarified that the sectoral division given in the CPPR is as per Bank administrative requirements, and in fact, sectors like social and environment have a component in almost every Bank project. DEA's second concern is regarding state lopsidedness. Mr. Lim said the Bank would like to expand the scope of its support in India, and requested assistance of DEA in identifYing suitable programs in states, keeping in mind that larger states like Maharashtra have a greater potential for Bank investment, and will also create a demonstration effect for the other states.
4. Mr. Lim noted that overall implementation progress is satisfactory, and the portfolio is performing well as per most Bank indicators like projects at risk, disbursements etc. He highlighted two areas of concern for the Bank. The first is the similarity between Annex 1 and 2, and that the same fundamental, systemic problems are persisting every year, suggesting that the symptoms rather than the disease are being addressed. Similarly, in Annex 4, there are a basic few projects that have been on the list of projects at risk for some time now. Mr. Hoban added that it is important to keep up with the close attention that was paid to the portfolio last year in terms oftimely supervision, restructuring etc, and also give close attention to projects under preparation.
5. Mr. Hoban went through Annex 1 and 4, and highlighted some important persisting issues that need further discussion and action. In Annex 1, he mentioned funds flow problems, which have been continuing in several projects in Rajasthan and in the DPEP projects; and the problem of staffing, which is acute in several projects in Bihar. In Annex 4, the status of projects at risk was discussed as below : • Industrial Pollution Prevention- seems to be moving; mission in end-Oct
Country Portfolio Performance Review FY 2001 Page 26
• Orissa Power- problems are well know; not much can be done at the moment • AP Emergency Cyclone- needs immediate action; tripartite meeting was held last week
between DEA, AP government and World Bank, and another meeting is scheduled for Oct 12
• UP Health Systems - out of risk status • DPEP III Bihar- good local level and weak at state level; downsizing is one option • Malaria control- Oct mission will take decision on project
6. On funds flow, Mr. Bhatnagar said the flow from central government to the states has improved and funds are being transferred quickly, and the flow from states to the projects now needs a similar level of attention. On the funds flow problem faced by centrally sponsored projects, he mentioned that DEA is closely involved this year in the discussions between the Planning Commission and the central ministries on budgetary allocation for externally aided projects. It was noted that the District Primary Education Program has had persistent funds flow issues identified in the previous two aide memoires. Mr. Shankar said that funds are supposed to be released within 15 days by the state to the project authorities, and CAAA is looking into ways this can be monitored. DEA reiterated their interest in discussing alternative funds flow arrangements, and said that they are awaiting the Bank's paper on the experience of other countries, which the Bank will send to them shortly. One idea put forward by CAAA was second generation special accounts (in rupees) held at the project level; the cash could flow directly from the central government to the project bank account, and the state would still be kept informed and involved; a similar arrangement is in place for ADB financing in Gujarat.
7. Dr. Kishore identified the need to address weaknesses in audits. Mr. Shankar said CAAA would like to start monitoring receipt of audit reports to better manage the discontinuation of the use of the Special Account and SOEs. CAAA would also like to monitor disallowances arising from audit reports, including following up with projects on the settlement of audit observations so that the findings do not have to be refunded to the Bank, and tracking the refunds/recoveries made by the Bank to ensure that funds are claimed when the observation is settled. CAAA mentioned that it might be useful to talk again about the use of private auditors.
8. Mr. Garg said that the average age of Bank projects is 7 years, and DEA and the Bank must jointly look into ways to reduce this. Mr. Lim agreed with Mr. Garg and said that shorter projects are most efficient ion allowing increased utilization ofiDA funding. Ms. Shah suggested that extensions should also be considered during restructuring.
9. Other issues • CAAA said that they are monitoring the time lag between the period covered by the claim
and the date when the claim is submitted to CAAA, and they will start sharing these reports with the Bank.
• DEA was pleased to hear that the Bank is planning to identify a few existing projects to implement PMR-based disbursements.
• As suggested by Mr. Bhatnagar, it was agreed to incorporate disbursement ratios for projects in the FYO 1 CPPR.
Country Portfolio Performance Review FY 2001 Page 27
10. In conclusion, Dr. Kishore made the following points : • To sustain the FYOl portfolio performance, DEA to prepare a program for the country for
discussion with the Bank within the next 3 months. • DEA to arrange joint meeting within the next three months with the state government and
project authorities of the five projects at risk to take a decision on each project- close, restructure, accelerate etc.
• DEA to give increased attention to de-bottlenecking of obstruction in smooth flow of funds, both from center to states and from states to project authorities, within next three months.
• DEA to identify areas for Bank support for diversification ofbeneficiaries (sector and state) and a dispersal of benefits, not by bringing down lending to some, but by increasing it to others.
• DEA to discuss its IDA13 strategy with the Bank, and also to ensure that as much as possible of IDA12 is utilized this year.
• Dr. Kishore will review the persisting portfolio issues highlighted by the similarity between Annex 1 and 2.
11. It was agreed that DEA and the Bank would make a joint presentation on the FYOl portfolio to the Finance Minister by October 20, 2001.
Participants
DEA Adarsh Kishore, Additional Secretary K Shankar, Controller of Aid Accounts and Audit (CAA&A) Subhash Garg, Director Rahul Bhatnagar, Director Smljeev Kumar, Director Rachna Shah, Deputy Secretary Geeta Narayan, Under Secretary
World Bank Edwin Lim Christopher Hoban Robert Saum Mandakini Kaul
Counfly Portfolio Performance Review FY 2001 Page 28
Annex 8 : Minutes of Portfolio Reviews with States
As agreed in the FYOO CP P R, the first regional review for states was held for the Western region on August 22, 2001 in New Delhi. Minutes for this meeting, prepared by DEA, are given below.
The review meeting of World Bank assisted projects in the Western Region was coordinated by Director (FB), Department of Economic Affairs, on 22nd August, 2001. Officials from State Governments ofMaharashtra and Gujarat (except officials relating to Maharashtra State Health System Project) and sectoral officials ofthe World Bank were present. This list of participants is placed at F I A.
1. Gujarat State Highways Project:
The Gujarat State Highway Project with the World Bank assistance ofUS$381 million became effective on 28.11.2000. It was reported that the project on the whole was progressing satisfactorily. The main issue related to diversion ofUS$97 million from Gujarat State Highway Project to Gujarat Earthquake Project Phase-I. The officials from GOG informed that the project would need the whole ofUS$381 million for the proper completion of the project. They also agreed that the recoupment of the diverted funds should be made from the Gujarat Earthquake Phase-II project funds. It was emphasized that eligible expenditure under Gujarat Earthquake Project may first be withdrawn from available IDA agreements and only when the IDA funds get exhausted, IBRD amount ofUS$97 million (diverted from State Highway Project) would be considered for withdrawal. The officials from GOG gave an assurance that the Institutional Development Study would be completed on time.
2. Gujarat Earthquake Project (Phase-!):
It was indicated by Gujarat that till date Rs.267 crores have been spent on the earthquake relief. Rs. 104 crores has been disbursed by the World Bank and an amount ofRs. 44 crores has been claimed. Gujarat officials indicated that 18 months for completing Phase-! would be sufficient. The matter regarding allocation of funds between World Bank assistance and ADB assistance on housing will be worked out and the World Bank informed accordingly. It was emphasized by the World Bank officials that proper documentation between ADB and World Bank assistance needs to be maintained to avoid future complications. The World Bank officials flagged the slow progress of rehabilitation in the health and education component and the GOG officials promised that needful will be done. It was also apprehended by the World Bank officials the PhaseII loan may have to be downsized in view of some of the components being funded by other bilateral agencies. It was indicated by the Gujarat officials that by middle of September 2001 they may be able to bring out a clear picture of physical as well as financial progress achieved under Phase-I of the project so far. The matter regarding audit has to be decided by the Gujarat Government with the C&AG oflndia was agreed by the officials of the World Bank and Government of Gujarat. The representative from Gujarat were informed by Director (FB) that all matter regarding irrigation and dam safety component ofPhase-I ofthe project should be carried out in consultation with the Ministry Water Resources.
Count1y Portfolio Pe1jormance Review FY 2001 Page 29
3. Bombay Sewage Disposal Project:
Representative from Mumbai Municipal Corporation informed that State Government has released the outstanding amount ofRs.SO crores to the Municipal Corporation of greater Mumbai (Project Authority). It was informed that project would disburse about $40 million during the current year as against DEA's target of $30 million. This would leave about US$34 million to be disbursed between 1.4.2002 and 31.12.2002 (Project closing date). Savings in the project would be exactly estimated only by November end, 2001. The World Bank also informed that a Mission would be fielded in November 2001 and additional activities to be taken up would be finalized at that time. The BMC official informed that out of 19 pending audit notes, 4 have been dropped and the rest 15 would be settled by October end, 2001. Revenue collection has increased from 60% to 90% as a result of computerization and decentralization of revenue billings.
4. Maharashtra State Health System Project:
Director (FB-RB) in the absence of the State Government officials briefly summarized the status of the project. He indicated the disbursement ofthe project is not satisfactory and also felt that the backlog on disbursement may not be able to be covered up in the remaining period of the project. He expressed that he would be reviewing the project in September in detail to know about the exact position on the disbursement side as well as progress made in the completion of SuperSpecialty Hospital as well as PMR-based disbursement and the extension to the consultant appoint for this purpose.
3. The meeting ended with Director (FB) expressing thanks to the state Government and World Bank officials who were present.
Participants 1. Mr. P.K. Mishra, CEO, Gujarat State Disaster Management Authority (GSDMA), Government
ofGujarat 2. Mr. M. Sahni, Additional CEO, GSDMA & Secretary (R&R), Government of Gujarat 3. Mr. H.P. Jamdar, Principal Secretary, Government of Gujarat 4. Mr. R.B. Panpit, Under Secretary (WB Projects), R&B DGH 5. Mr. S. Sarkar, Senior Sanitary Engineer, World Bank 6. Mr. Robert Maurer, Principal Urban Specialist, World Bank 7. Mr. Chris Hoban, Operations Advisor, World Bank 8. Ms. Mandakini Kaul, Operations Analyst, World Bank 9. Ms. Preeti Kudesia, Senior Public Health Specialist, World Bank 10. Mr. R.K. Bhatia 11. Mr. S.C. Garg, Director (FB), Department of Economic Affairs 12. Mr. Rahul Bhatnagar, Director (FB), Department ofEconomic Affairs 13. Mr. V. Vumlunmang, Deputy Secretary (FB), Department of Economic Affairs 14. Ms. Geeta Narayan, Under Secretary (FB), Department of Economic Affairs 15. Mr. V. J ayaraman, Deputy Director (FB ), Department of Economic Affairs
Country Portfolio Pe1jormance Review FY 2001 Page 30
Annex 9 : Minutes of Sectoral Portfolio Reviews with DEA
Several sectoral review meetings were held during FY01. Ofthese, the minutes of the following meetings are available in the FYOO CPPR document: Transport, October 17, 2000, Urban Water and Urban Development, October 18, 2000, Forestry, September 4, 2000 and February 20, 2001, and !CDS, March 26, 2001. Included here are the minutes, prepared by DEA,for the following meetings: Infrastructure and Transport, August 30-31, 2001 and Telecom Sector, August 31, 2001.
I. Infrastructure and Transport, August 30-31, 2001
1. Container Transport Logistics Project
(i) A meeting was held on 30111 August 2001 at 11.00 AM to review the disbursement performance of World Bank assisted Container Transport Logistics Project (Loan No.3753-IN). The meeting was chaired by Mr. Vumlunmang, Deputy Secretary (FB) and attended by the officials of the World Bank, Container Transport Corporation of India Ltd. and CAA&A.
(ii) World Bank has provided a loan of US$ 94.00 million for Container Transport Logistics Project (Loan No.3753-IN) being implemented by Container Corporation oflndia Ltd.(CONCOR). The Government of India has guaranteed the above loan. The loan agreement was signed on 29.8.94 and the project became effective on 31.1.95. The original closing date of the project was 31.12.99 and this was extended twice up to 31.12.2001. Out ofthe total loan ofUS$ 94.00 million, US$ 15.00 million has been cancelled due to savings. Now the loan stands at$ 79 million. The cumulative disbursement up to 31.07.2001 is US$ 39.66 million leaving an undrawn balance ofUS$ 39.34 million.
(iii) On the issue of slow disbursement under the project. Mr. Birkhe Ram, Director (Finance) from CONCOR informed that this is due to delay in the supply of freight wagons by the contractors under Tranche-! and II. He informed that up to March 2001, 1455 wagons have been delivered by the contractor under Tranche-! and the remaining 270 wagons would be supplied by the end of September, 2001. He further informed that the company to which the contract is awarded for Tranche-II was able to deliver only 180 wagons when the contract was cancelled due to sickness of the company (SIMCO). CON COR has now awarded the contract for remaining 1320 wagons to HEC in April2001. However, due to court cases, the company is not able to deliver the supply of wagons according to the agreed delivery schedule. The case is likely to be sorted out soon and the company would be able to commence the delivery of wagons by December 2001 and the delivery of all the wagons is expected to be completed by the end of December 2002 against the present loan closing date of 31.12.2001.
Country Portfolio Performance Review FY 2001 Page 31
(iv) It was generally agreed by the World Bank, CONCOR and DEA that in spite of the delay the wagons supplied were of high quality and helped reduce the transport time substantially.
(v) The CONCOR has informed that they would be able to utilize only$ 16.00 million during the current financial year of2001-2002 against the Budget provision of$ 27.00 million.
(vi) CONCOR was asked to give details of their payments towards guarantee fee to Govt. of India.
(vii) CON COR has stated that statutory audit was done and the audit certificates for the year 2000-2001 would be sent to the Bank shortly.
(viii) World Bank team has informed that they would field a mission in October, 2001 to review the project and consider the further extension of the project as requested by CONCOR.
List of Participants (i) Mr. V. Vumlunmang, Deputy Secretary (FB), DEA- in chair
(ii) Ms. Geeta Narayan, Under Secretary (FB), DEA (iii) Dr. (Ms.) G. Madhumathi, Section Officer (FB-VI), DEA (iv) Mr. Birkhe Ram, Director (Finance), CONCOR. (v) Mr. Harihamath, Accounts Officer, CAA&A
(vi) Mr. Chris Hoban, Operations Advisor, World Bank (vii) Ms Mandakini Kaul, Operations Analyst, World Bank
(viii) Mr. Alok Bansal, Senior Transport Planner, World Bank
2. Orissa Emergency Cyclone Project
(i)
(ii)
(iii)
A meeting was held on 30th August 200 l at 4.00 PM to review the disbursement , performance of World Bank assisted Orissa Emergency Cyclone Project. The meeting was chaired by Mr. Vumlunmang, Deputy Secretary (FB) and attended by the officials of the World Bank, Govt. of Orissa and CAA&A.
Orissa Emergency Cyclone project was signed as an amendment to the Orissa Water Resources Consolidation project with in IDA credit of US$ 46 million. An intermediate phase Orissa Emergency Cyclone and Reconstruction project is proposed in continuation to the immediate phase.
0/o CAA&A confirmed that an amount of$ 10 million has been drawn for special account an amount of 2.3 million claims have been submitted to CAA&A but the claim has been disallowed due to some procedural requirements. The expenditure till date is US$ 4 million. The full utilization ofthe amount is expected to be by September 2002.
Country Portfolio Pe1jormance Review FY 2001 Page 32
(iv) Out of a total of 586 packages tenders have been obtained for 408 packages and 253 have been finalized. The remaining would be finalized by end of September 2001. The Govt. of Orissa has informed that there had been no proper bidder for cyclone shelters due to the locational problems and requested World Bank that the qualifying criteria may be revised. World Bank has pointed out that the coordination between OSDMA and Line Departments needs to be improved.
(v) Govt. of Orissa informed that the Disaster Management Framework has been prepared and send to the World Bank for approval. The implementation plan has been prepared. World Bank showed concern that the quality design and the social impact assessment have not been achieved. The World Bank reiterated that the environmental and social screening are the most activities and have to be achieved expeditiously to finalizedis the bid documents.
(vi) Govt. of Orissa explained that the slow progress in the immediate phase was due to the recurring calamities in Orissa and the unique locational and environmental problems of the State of Orissa. The Managing Director, OSDMA assured that every effort would be taken to expedite the project. The World Bank and OSDMA officials agreed to have another meeting in World Bank Office to discuss other related issues.
List of Participants
(i) Mr. Vumlunmang, Deputy Secretary (FB), DEA- in chair (ii) Ms. Geeta Narayan, Under Secretary (FB), DEA
(iii) Mr. Chris Hoban, Operations Advisor, World Bank (iv) Ms. Mandakini Kaul, Operations Analyst, World Bank (v) Mr. Robert Maurer, Principal Urban Specialist, World Bank
(vi) Mr. Sujit Das, Senior Highway Engineer, World Bank (vii) Mr. Aurobindo Behura, Managing Director, OSDMA
(viii) Ms. Sucharita Sarangi, 0/o Resident Commissioner, Government of Orissa (ix) Mr. Ullas Kumar Das, Joint Secretary, Finance Department, Government of Orissa (x) Mr. Krishan Chand, Senior Accounts Officer, CAA&A.
3. State Road Infrastructure Technical Assistance Project
(i) A meeting was held on 31st August, 2001 at 11.3 0 AM to review the disbursement performance of World Bank assisted State Road Infrastructure Technical Assistance Project. (Ln.4114-IN). The meeting was chaired by Mr. Vumlunmang, Deputy Secretary (FB) and attended by the officials of the World Bank, Govt. of Kerala and Tripura only. Representatives from Rajasthan, Tamil Nadu, Uttar Pradesh, Manipur, Mizoram, Orissa, West Bengal and Madhya Pradesh did not attend.
(ii) The World Bank provided a loan of US$ 51.5 million to assist the State in preparation of high priority road investments and to promote the carrying out of the policy reforms by the participating State in the provision, financing and maintenance of Road Infrastructure. The
Countly Portfolio Peiformance Review FY 2001 Page 33
loan closing date is 31.12.2001. The cumulative disbursement till 31.7.2001 is US$ 41.499 million.
(iii) Govt. ofKerala has informed that the expenditure till February 2001 US$ 3.01 million. GOK projected an expenditure of US$ 5.09 million till December 2001 and requested for an additional amount of US$ 0.6 million above the allocated amount of US$ 4.5 million. World Bank assured that the project would be appraised as and when it is ready.
(iv) Govt. ofTripura has informed that there are no pending claims for reimbursement. It requested for an extension of the project as only detailed feasibility studies could be completed by December 31 5
\ 2001 and engineering studies can not be completed but the World Bank informed that the Govt. had taken a long time in the initial stages ofthe project and now it can not be extended as the project can not be taken up for a full-fledged project.
(v) Department of Economic Affairs informed that it would consider World Bank's suggestion to hold a workshop on the project in January/February, 2002.
List of Participants (i) Mr. Vurnlunmang, Deputy Secretary (FB), DEA- in chair
(ii) Ms. Geeta Narayan, Under Secretary (FB), DEA (iii) Mr. Chris Hoban, Operations Advisor, World Bank (iv) Ms. Mandakini Kaul, Operations Analyst, World Bank (v) Mr. Alok Bansal, Senior Transport Planner, World Bank
(vi) Mr. Guang Zhe Chen, Senior Economist, World Bank (vii) Mr. A.K. Swaminathan, Senior Highway Engineer, World Bank
(viii) Mr. N. Dushantha Kumar, Project Director, PWD, Government ofKerala (ix) Mr. B.N. Majumdar, Project Director, PIU, PWD, Government ofTripura (x) Mr. Harihamath, Accounts Officer, CAA&A.
II. Telecom Sector, August 31, 2001
Telecom Sector Reform Technical Assistance Project
(i) A meeting was held on 30th August, 2001 at 11.30 AM to review the disbursement performance of World Bank assisted Telecom Sector Reform Technical Assistance Project (Loan No.4555-IN). The meeting was chaired by Mr. Vumlunmang, Deputy Secretary (FB) and attended by officials of the World Bank, Department of Telecom and CAA&A. The list of participants is attached.
(ii) The World Bank has provided a loan of US$ 62 million for the Telecom Sector Reform Technical Assistance Project (Loan No.4555-IN). The loan agreements were signed on 11.6.2000 and became effective on 29.08.2000. The closing date of the project is
Country Portfolio Performance Review FY 2001 Page 34
31.12.2005. The cumulative disbursement up to 31.07.2001 is$ 3.758 million.
(iii) At the outset, DS (FB) enquired about the various components of the telecom reform project. DOT informed that the bidding documents for the procurement of equipment for upgrading the spectrum management capabilities ofthe Department of Telecom were issued in October 2000 and were sent to the Bank in June, 2001 for their approval. The final contract is likely to be awarded in mid-February, 2002 and the supply of equipment would be completed in 18 months. This is the major component ofthe project and the equipment is to be located in over 20 sites nations vide. The importance of ensuring timely completion of the procurement formalities and completion of site selection and preparation was duly stressed.
(iv) DOT has further informed that they would be able to utilize only$ 5.59 million against the budgetary provision of$ 15.00 million for the current financial year of2001-2002.
(v) Representatives of DOT were also advised to obtain prior clearance of Department of Economic Affairs for all training programmes as per existing norms of the government.
List of Participants (i) Mr. V. Vumlunmang, Deputy Secretary (FB), DEA- in chair
(ii) Ms. Geeta Narayan, Under Secretary (FB), DEA (iii) Dr. (Ms.) G. Madhumathi, Section Officer (FB-VI), DEA (iv) Mr. R.P. Aggarwal, Joint Wireless Advisor, DOT (v) Mr. M.L. Malhotra, Director (Finance), DOT.
(vi) Mr. R.B. Singh, Deputy Wireless Advisor, DOT (vii) Mr. Chris Hoban, Operations Advisor, World Bank
(viii) Ms. Mandakini Kaul, Operations Analyst, World Bank (ix) Mr. Harihamath, Accounts Officer, CAA&A
Countly Portfolio Pe1jormance Review FY 2001 Page 35
For information contact: Tbe Worfo Bank 701 Looi Estate
New Delhi -110 0031 Inoia Tel: +91 II 4619491 Pax :+91 II 4619393 Il1terl1et: www.worlobank.org.in