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Japanese ODA Loan
Ex-Ante Evaluation (for Japanese ODA Loan)
South Asia Division 1, South Asia Department
Japan International Cooperation Agency
1. Basic Information(1) Country: India(2) Project: Rajasthan Water Sector Livelihood Improvement Project (II)(3) Project Site / Target Area: 27 districts in State of Rajasthan with apopulation of approximately 54 million (2011 census)(4) Loan Agreement: March 29, 2023
2. Background and Necessity of the Project(1) Current State and Issues of the agriculture and irrigation Sector and thePriority of the Project in India
In India, agriculture and allied sectors are important industries, accounting forabout 17% of GDP and about 50% of the employment (World Bank 2021), andcrops are planted in different regions in response to diverse climates. The
growing season is divided into Kharif (Rainy) and Rabi (Dry) seasons, and cotton,
groundnuts and cereals are planted in Kharif season, and wheat and pulses areplanted in the dry season. Crop productivity depends on seasonal variations inrainfall and river water levels and is exposed to the effects of floods and droughts
resulting from uneven and unstable rainfall due to recent climate change. Anotherchallenge is the efficiency of water use in agriculture (irrigation efficiency) andwater distribution losses caused by leaks due to deterioration and damage tofacilities. Furthermore, 62% of the water source for irrigation depends on
groundwater, and problems such as the lowering of ground water level anddepletion of the groundwater due to excessive pumping are becoming more
serious. Therefore, there is a need to promote irrigated agriculture that uses water
resources efficiently to ensure stable crop productivity.
In addition, 80% of women living in rural areas in India are engaged in the
agricultural sector, and women play a vital role in the agricultural production
process and maintenance of irrigation facilities (NITI Aayog (2022)). On the other
hand, women's access to irrigation water, farming support services, etc. is limited,
and their needs are not reflected in the activities of Farmer’s Groups and Water
Users' Organizations.
The Doubling Farmers’ Income (2017) strategy document for the agricultural

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sector in India, developed by NITI Aayog, identifies the need to increase
agricultural productivity to double farmers' income from FY2015 to FY2022,
through efficient use of water resources and increasing the productivity ofirrigated agriculture. Improving the efficiency of use of water resources by
rehabilitating irrigation facilities and ensuring proper management of the facilities,
is one of the key pillars of the aforementioned strategy. Rajasthan is located innorthwestern India and is the country's largest state, and has the seventh largest
population (i.e. 68.55 million, 2011 census) in the country. The population
engaged in Agriculture sector accounts for 66% of the state's total workforce andagriculture and related industries account for 26% of GDP (Rajasthan Agriculture
Department (2015)), placing agriculture as an important sector in the state. On
the other hand, the Thar Desert covers three-fifths of the state's total area in thewestern part of the state, and annual rainfall is low at 584 mm (322 mm in thearid western part in particular), about half the national average of 1,083 mm in
India, making it necessary to make effective use of water resources. In Rajasthan,there are more than 3,900 irrigation blocks, and 25% of the total irrigated area isirrigated by using surface water, but many of these have problems such as
damage and leakage due to deterioration and improper Operation and
Maintenance. As a result, groundwater continues to be utilized as the source ofwater for many irrigation facilities that cover the remaining 75%, which has
contributed to factors such as the recent remarkable population growth andshortage of groundwater supply and demand due to economic growth. In fact,
over-pumping is now taking place in about 80% of the state's districts, and thesituation is so severe that groundwater levels continue to drop by 1-3 m per year
(Rajasthan Water Resources Sector Livelihood Improvement Project Preparatory
Survey Final Report (2017)). Therefore, there is an urgent need to improve
agricultural productivity in existing irrigated areas (areas where surface water isavailable) while controlling groundwater use in the area by improving irrigation
efficiency through rehabilitation of existing irrigation facilities, water distribution
and improved maintenance.
In addition, farmers do not have sufficient agricultural production technology andare not able to conduct market-oriented farming activities, which does not lead toincome from agricultural products and does not improve farmers' livelihoods.
Therefore, there is a strong need to transfer production technology to farmers
through training and to formulate and implement farming plans based on market
demand through marketing by the farmers themselves. Furthermore, while

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women are involved in agricultural production activities and canal maintenancework, opportunities for their participation in training on appropriate water
management, farming techniques and irrigation facility maintenance, and in theorganizations’ decision-making process on the development of farming and water
management plans are extremely limited. In order to ensure sustainable
operation and maintenance of irrigation facilities and increase agricultural
productivity based on fair and efficient water use, it is important to realize equal
participation and involvement of men and women in training and Groups activities.
In response to this situation, Rajasthan state has developed the State Agriculture
Policy 2013 (State Agriculture Policy 2013, latest.) with the goal of ensuring a real
GDP growth rate of 4% in the agricultural sector, as well as food and nutrition
security and strengthening the economic capacity of the agricultural sector
through increased agricultural production. The strategy includes thedissemination of water-saving irrigation, development of irrigation facilities, andincreasing farmers' income through crop diversification and higher value addition.
In addition, the state, which has extremely scarce water resources, hasdeveloped a State Water Policy (State Water Policy 2010, latest.), emphasizes
on maintenance of existing irrigation facilities, improvement of irrigation efficiency
and proper allocation of water.
The Rajasthan Water Sector Livelihood Improvement Project ('the Project') is
positioned as a priority project that is in line with these policies, as it aims to
improve irrigation efficiency and agricultural productivity by rehabilitating irrigation
facilities and supporting farmers based on market demand, including bypromoting the participation of women in agriculture.
(2) Japan’s and JICA’s Cooperation Policy and Operations in the Agriculture andirrigation Sector
The Country Development Cooperation Policy for India (2016) identifies 'support
for sustainable and inclusive growth' which contributes Poverty reduction andSocial sector development, as a priority issue, and states that the country will
work on programmes to increase the incomes of the poor (including improving
small-scale infrastructure, increasing agricultural productivity, and building foodvalue chains). In addition, the JICA Country Analysis Paper to India (2018) sets'inclusive growth in rural areas' as one of the development challenges andanalyses those farmers' income should be increased through improving
agricultural productivity, and this Project is in line with these policies and analyses.
Furthermore, in "Agriculture and Rural Development (Sustainable Food System)"Ver 202208

of JICA's Global Agenda (issue-specific project strategies), the Project aims to
reduce poverty in rural areas through improving farmers' income and revitalizing
the rural economy, and to ensure food security through stable production andsupply of food. In terms of yen loans to India, as of December 2022, a total of 23
projects amounting to approximately JPY 231.4 billion had been approved for the
agriculture and irrigation sector. In Rajasthan, the Government has also
implemented a yen loan project "Rajasthan Small Scale Irrigation Improvement
Project" (approved in 2005) between 2005 and 2015. In the first phase of the
project (Loan Agreement signed in March 2017), JPY 13,725 million was provided.
(3) Other Donors’ Activities
The World Bank has made long-term efforts to rehabilitate irrigation facilities,
strengthen farming capacity and reform the irrigation and water resources sectorin Rajasthan through the 'Rajasthan Water Resources Sector Rehabilitation
Project' (2002-2013). Furthermore, through the 'Rajasthan AgriculturalCompetitiveness Enhancement Project' (2012-2019), the World Bank supported
efficient water resources management to improve agricultural productivity, as wellas providing support for agribusiness planning and business matching activities.
The target irrigation districts of the Project are different irrigation districts from thisproject and there is no overlap.
3. Project Description(1) Project Description① Project Objective
The Project aims to improve livelihoods of farmers as well as promote
gender mainstreaming in agriculture and irrigation sector in the State ofRajasthan, by improving water use efficiency and agriculture productivity,
through improvement of existing irrigation facilities and agriculture support
services based on participation of both male and female farmers, thereby
contributing to socio-economic development in the State.
② Project Components(a) Participatory irrigation rehabilitation work(b) Fostering and Capacity Enhancement of Water Users Organizations
Farming support (crop diversification, marketing, etc.)(c) Improvement of Agriculture Practices and Marketing Capacity (e.g.,
formation of women's groups in water user organizations, support for selfhelp groups, nutritional improvement)

Ver 202208(d) Gender Mainstreaming in Agriculture and Water Sector(e) Enhancement for Project Implementation(f) Consulting services (construction supervision, procurement support,
technical guidance, etc.)③ Project Beneficiaries（Target Group）
Direct beneficiaries: users of the improved irrigation facilities(approximately 760,000 people)
Final beneficiaries: consumers who will benefit from increased crop yields
and lower prices (approximately 54 million people)(2) Estimated Project Cost
40,807 million Yen (Japanese ODA loan: 18,894 million Yen)
(3) Schedule
March 2017- March 2028 (133 months)
Completion of all activities, including consultancy services (March 2028) is
considered as the completion of the Project.
(4) Project Implementation Structure1) Borrower: President of India
2) Guarantor: N/A
3) Executing Agency: Water Resources Department, Government ofRajasthan (WRD)
4) Operation and Maintenance System: Responsibility for operating andmaintaining the irrigation facilities and related infrastructure will betransferred from the Water Resources Department (WRD) to the water
users’ organization upon completion of the rehabilitation. As part of the
Project, the water users’ organizations will receive technical training andsupport to develop maintenance and management plans, thereby
enhancing their capacity for maintenance and management.
Furthermore, the non-governmental organization (NGO) and the water
users’ organization Support Task Force, established within the ProjectManagement Unit (PMU) of the implementing agency, will provide
assistance to the water users’ organizations during the project period.
After the completion of the Project, the WRD responsible for supportingwater users’ organization, which was reorganized from the existing task
force in the WRD, will continue to support continuously. Once the transfer
is completed, the water users’ organization itself will collect fees for water
usage and remit them to the state government. The state government

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will refund 50% of these fees as operation and maintenance fees to cover
the costs associated with running and maintaining the facilities. In caseof significant damage to the facilities resulting from disasters or othercauses, where the water users’ organization alone cannot afford therepair costs, the WRD will be responsible for repairing the damages.
(5) Collaboration and Sharing of Roles with Other Donors
1) Japan’s Activity: The Project plans to introduce the Smallholder Horticulture
Empowerment & Promotion (SHEP) approach in training for staff ofimplementing agencies and farmers as part of the support for marketing,aiming at improving farmers' income through the development of marketoriented farming and marketing plans and strengthening farmers' ownershipof farming operations. The SHEP approach aims to promote agriculture asa business and to change the mindset of farmers from "grow and sell" to"grow to sell". It is expected that the staff of the implementing agencies willcontinuously participate in training courses for the Asian region, etc., andreturn the knowledge and learning gained in the dissemination of the SHEP
approach in the Project.
2) Other Donors ‘Activity: N/A(6) Environmental and Social Consideration① Category: B② Reason for Categorization: The Project is not located in a sensitive area, nor
has sensitive characteristics, nor falls into sensitive sectors under the JICA
guidelines for environmental and social considerations (April, 2010), and its
potential adverse impacts on the environment are not likely to be significant.
③ Environmental Permit: An Environmental Impact Assessment (EIA) report forthe sub-projects under the Project, which will rehabilitate existing irrigation
facilities, is not required under the country's national law and no otherenvironment-related permits or approvals are required.
④ Anti-Pollution Measures: During construction, air quality, water quality, noiseand vibration are expected to meet national emission and environmental
standards for air quality, water quality, noise, and vibration by sprinklingwater, isolating materials, equipment, and fuel from water flow, restricting
construction hours, etc. During operation, water quality is expected to meetnational emission and environmental standards through regular irrigation
canal maintenance.
⑤ Natural Environment: The Project site does not fall in or around sensitive

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areas such as national parks, etc., and undesirable effects on the naturalenvironment are assumed to be minimal.
⑥ Social Environment: As the Project is to rehabilitate existing irrigation
facilities, no additional land acquisition or involuntary resettlement will occur.
It is also confirmed that the Project area does not include areas where there
are residents who may fall under the category of indigenous peoples, suchas Forest Dweller.
⑦ Other/Monitoring: Monitoring of air quality, water quality, noise and vibration
during construction will be conducted by the contractor and Sub-PMUs, while
monitoring of water and soil pollution during service will be conducted by thestate-level PMUs.
(7) Cross-Sectoral Issues:① Climate change measures: the Project will contribute to climate change
measures (adaptation) because the improvement of irrigation facilities
through the Project is expected to enable stable agricultural production in
response to reduced rainfall and changes in rainfall patterns, thereby
reducing the negative impacts of climate change.
② Poverty Alleviation: the Project is categorized as a 'Poverty alleviation
project' because about 60% of the irrigation rehabilitation target areas of the
Project are occupied by small and marginal farmers and the livelihoods ofthese farmers will be improved through the Project.
③ Prevention of AIDS/HIV and Other Infectious Diseases : As part of the effort
to prevent the spread of the novel coronavirus infection, a list of measures(36 in total) to be implemented by the executing agency during the formationand implementation of the project was agreed upon at the time of appraisal.
This agreement has clarified relevant activities including development of
epidemic prevention materials and equipment, improvement of the working
environment including the code of conduct, work supervision, andawareness raising. Appropriate monitoring with a constant focus on theimpact of the novel coronavirus will be made by receiving quarterly reportson the status of implementation of these items from the executing agency
in order to allow the executing agency to take flexible and suitable actions.
In addition, HIV/AIDS measures for construction workers will be
implemented by construction contractors during the construction phase.
(8) Gender Category: Gender Informed (Significant)[GI(S)]<Details of Activities/Reason for Categorization>

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The results of the gender analysis identified gender-based issues related to
women's participation in decision-making processes. This is because the Project
has a plan to implement the formation of women's groups in water users’organizations, support for self-help groups and nutritional improvement, and has
set indicators such as the percentage of women on water users’ organization
boards, their right to speak up and improve their participation in meetings.
In Rajasthan, women were not traditionally allowed to own land and could notparticipate in the activities of water users' organization. However, with theamendment of the “Participatory Irrigation Act”, spouses of landowners are now
eligible to become members, and one female officer is appointed to the union's
board of directors. As a result, one female officer has been elected in each of the
204 unions established. In the first phase, through these initiatives, the Project
promoted women's participation in the decision-making process in water userorganizations and gender mainstreaming in the irrigation sector.
In addition, the Project has organized 'women's sub-committees' within water
users’ organizations to promote women's participation, which was made possibleby the amendment of the aforementioned act. In addition, facilities that also meetthe needs of the women's sub-committee are designed and constructed as partof the irrigation facility renovation works to foster women's ownership of irrigation
facilities. In addition, farm technical support and training for improved nutrition areprovided to women-organized self help groups, which are separate from thecooperative.
(9) Other Important Issues
In Rajasthan, through the yen loan project "Rajasthan Minor Irrigation
Improvement Project" (approved in 2005), manuals and guidelines on appropriate
water resources management, etc. were prepared and reviewed as part ofcapacity building of water users’ organizations and support to farming operations,in addition to the rehabilitation of irrigation facilities. These manuals andguidelines are also being used in the Project, and it is expected that the water
users’ organizations established through the Project will promote sustainable useof water resources.
4. Targeted Outcomes(1) Quantitative Effects
1) Outcomes (Operation and Effect Indicators)

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Baseline (Actual
value in 2017)

Indicators ※1
Beneficiary irrigated area (ha)*2

Target (2030) [2years after projectcompletion]-

470,000

40

60

Maize

20,90027,200Wheat

75,10097,600100

150

Mustard56,20073,000Chickpeas34,60045,000Maize

31,30042,800Wheat

278,800

398,500

Exotic vegetables (broccoli, Chinese
cabbage, mushrooms, etc.)

2,000

3,200

Mustard85,500116,500

Chickpeas

31,50045,00072,000140,000

0

25

Collection rate of irrigation water tariff /charge (%)
Cultivated area by major crops (ha)Exotic vegetables (broccoli, Chinese
cabbage, mushrooms, etc.)

Production volume of major crops (ton/year)

Gross annual average farm income(INR/year/ household)Female

ratio

in

water

usage

organization Management Committee*1 In addition to the above indicators, irrigation efficiency (water use efficiency) ismonitored as a reference value.
*2 Total irrigated area is the one rehabilitated from trunk to branch lines to enable efficientwater use.

(2) Qualitative Effects
Organizing and fostering water users’ organizations and farmers' groups,
increasing women's voice and promoting a participation in meetings in water
users’ organizations, diversification of local agriculture with the introduction ofirrigated agriculture, improvement of nutrition (women and children),improvement of gender and farming knowledge, adaptation to climate change.
(3) Internal Rate of Return
Based on the following assumptions, the economic internal rate of return (EIRR)Ver 202208

for the Project is 16.7%. Although the Project collects water user fees fromusers, the financial internal rate of return (FIRR) is not calculated as the Project
costs are not collectable.
【EIRR】
Cost：Project costs (excluding taxes etc.), operation and maintenance costs
Benefit：Increase output of main crop due to increasing cropping area andyield
Project Life：30 years
5. External Factors and Risk Control(1) Preconditions: N/A(2) External Factors: N/A
6. Lessons Learned from Past Projects
The ex-post monitoring of the “Upper Kolab Irrigation Project”, taught that
irrigation projects, it generally requires a certain period of time for establishment
of beneficiaries' knowledge of water resources management and understandingof the activities of water users’ organizations, therefore the Capacity building
support should be incorporated at an early stage. From other irrigation projects
in India, as a large number of sub-projects are located in a broad area, it wasdifficult for the state-level Project Management Units (PMUs) to coordinate every
support only by themselves such as construction supervision of scattered subprojects, capacity building of water users’ organizations and support to farming
operations, and it was found that it was necessary to establish a sub-ProjectManagement Unit (Sub-PMU) at the district level for preventing Project delays,
and that the Project should be implemented in some Project phases.
In the Project, the progress of civil works in each Sub-PMU will be linked to water
users’ organization capacity strengthening and farmers' support activities, withthe aim of ensuring sustainability of the Project. In addition, five Sub-PMUs willbe established in the state to implement and monitor these activities in threestages.
7. Evaluation Results
In addition to meeting India's development challenges and policies, and Japan's
and JICA's cooperation policies and analyses, there is a high need to support theimplementation of this project as it is considered to contribute to Goal 1 (Nopoverty), Goal 2 (Zero hunger), Goal 5 (Achieve gender equality) and Goal 13(Climate Action) of the SDGs (Sustainable Development Goals).

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8. Plan for Future Evaluation(1) Indicators to be Used
As indicated in Sections 4.
(2) Future Evaluation Schedule
Ex-post evaluation: Two years after the project completion