Ex-Ante Evaluation (for Japanese ODA Loan)
1. Name of the ProjectCountry: India
Project: Rajasthan Water Sector Livelihood Improvement Project (I)Loan Agreement: March 31, 2017
Loan Amount: 13,725 million yen
Borrower: The President of India
2. Background and Necessity of the Project(1) Current State and Issues of Agriculture and Irrigation Sector Development in India
Economic growth has been strong in India in recent years and the number of people
living in poverty is getting lower. Nevertheless, 270 million people accounting for 21.9%of the total population (2011) continue to live below the poverty line, and about 220
million of the poverty class, corresponding to 81%, live in farming villages. The
agricultural sector account for 13.9% of India’s GDP (2013), but about half of the entire
working population is engaged in agricultural work and about 46% of the land area isfarmland. As such, development of agriculture and farming villages is essential forbalanced socioeconomic development and eradication of poverty.
The climate in India varies by region, and crops that match the respective climate arecultivated. Wet season crops are mostly cotton, peanuts, and grains, and dry season
crops are mostly wheat and beans. Crop productivity depends on seasonal fluctuationsin amount of rainfall and amount of river water and is affected by the floods anddroughts caused by uneven distribution or instability in amount of rainfall due to climatechange in recent years. In addition, although the agricultural sector (irrigation) accounts
for 83% of total usage of the water resources in India, demand is expected to increasein municipal and industrial water as the economy grows, which will likely result in astrain on water resources. Meanwhile, water seepage due to aging or deterioration offacilities and supply water losses due to improper water supply management haveresulted in a low water-use efficiency (irrigation efficiency) of 38%. As much as 62% ofwater resources for irrigation water depend on groundwater, and excessive water
pumping has caused serious problems such as a reduced groundwater level anddepletion of groundwater. More widespread application of irrigation agriculture
practices that use water resources more efficiently is needed to achieve stable crop
productivity. About 46% of workers in the agriculture sector are women and women
have a pivotal role in agricultural production processes and maintenance andmanagement of irrigation facilities. Despite this, women have only limited access toirrigation water and farming support services and they cannot participate in farming
associations or water user associations, so women’s needs are not being reflected.
Rajasthan that is the target site for this Project is located in northeast India and is thestate with the largest land area in the country. It has the 7th largest population in India,

at 68.55 million people (2011), and 10.29 million live in poverty, which is 14.7% of thestate’s population. About 8.42 million of them, corresponding to 82%, live in farming
villages. Furthermore, the farming population comprises 62% of the entire working
population in the state, so that 21% of total production in Rajasthan is made up offarming or related industries. Rajasthan also receives limited annual rainfall, at only584 mm that is about half the national average of 1,083 mm. (It is particularly low in thewestern arid region, at only 322 mm.)
To use these limited water resources effectively, irrigation facilities have beendeveloped starting about the 18th century, primarily in the eastern part of the state, andthere are over 3,900 irrigation areas in Rajasthan. Existing irrigation facilities that use
surface stream water cover 25% of all irrigation areas in the state, but many haveproblems, such as aging, damage, and seepage due to improper maintenance andmanagement. The remaining 75% of all irrigation areas are covered by groundwater,
but groundwater supplies are under strain with the marked increase in population andgrowth of the economy in recent years. Because of this, areas with existing irrigation
facilities (areas that can use surface stream water) urgently need to increase water use
efficiency by fixing existing irrigation facilities, improving water supply, and improving
maintenance and management and to better control groundwater use in those areasand increase farming productivity. Many women are involved in agricultural production
activities and maintenance and management of water routes in rural areas ofRajasthan. However, they have only limited opportunities to participate in workshops toobtain proper water management or farming skills or skills to maintain and manage
irrigation facilities as well as in decision making processes carried out by associations
that include formulating farming plans or water management plans. Equal participation
by men and women in workshops and association activities is required in order to raise
agricultural productivity based on sustainable operation, maintenance, andmanagement of existing facilities and fair and efficient water use.
(2) Development Policies for Agriculture and Irrigation Sector Development in India
and the Priority of the ProgramIndia established a five-year plan in 1951 aimed at achieving food self-sufficiency
and improving and stabilizing the lives of citizens. The target average real GDP growthrate for the agricultural sector is currently set to 4%, and effective use of resources,
widespread use of sustainable technologies, responses to climate change, andincreased productivity have been given as priority issues to address in order to achievethat target. Particular emphasis has been given to increasing irrigation farming
productivity through efficient use of water resources. Increasing productivity byrepairing aging irrigation facilities, carrying out proper facility management, andimproving inefficient water resource usage that is carried out in this Project will help
increase farmers’ income and reduce poverty and is therefore a major pillar in this plan,and so the Project is in line with the plan.

In the state’s 12th five-year plan (2012 to 2017), the Rajasthan state government
aims to guarantee stable food provisions and nutrition, strengthen the economic
leverage of the agricultural sector, and expand agricultural production, and formulated
the State Agriculture Policy 2013. Strategies proposed within this plan aim to increaseuse of water-saving irrigation, develop irrigation facilities, and increase income of far ofcrops and creation of high added value. The state that is extremely poor in water
resources has been carrying out a Rajasthan Minor Irrigation Improvement Project(RAJAMIIP; approved for 11.555 billion yen) as an ODA project from 2005. While some
improvement has been seen, further repair of irrigation facilities, more widespread useof proper water supply systems, and improvement in water use efficiency are needed.
The State Water Policy established by Rajasthan in 2010 aims to improve maintenanceand management of existing irrigation facilities and increase irrigation efficiency as wellas ensure proper water supply. This Project is in line with these policies. In addition, thestate’s 12th five-year plan aims to encourage social participation by women to achieve
gender equality, and multi-faceted support is provided to grant rights to women andincrease their involvement in decision-making processes at the policy level.
(3) Japan and JICA’s Policy and Operations in India’s Agriculture and Irrigation SectorJapan’s Country Assistance Policy for India (March 2016) states that ‘supporting
sustainable and inclusive growth’ is a priority and that the government will provide thetype of support that will help reduce poverty and develop the social sector, for example
with programs to increase income to the poverty class (including programs to improvesmall-scale infrastructure, strengthen agricultural productivity, and build food value
chains). Also, JICA’s Country Analysis Paper for India (March 2012) identified priority
areas as using limited water resources effectively, securing water for agricultural use,and increasing agricultural productivity through efficient use of resources in order toincrease the food supply to match the increase in population and reduce poverty infarming villages. This Project is in line with these policies and analyses. JICA
previously received authorization to provide ODA loans to India for the agriculture andirrigation sector of the amount of 257.5 billion yen for 26 projects in February 2017.
Rajasthan has the experience of carrying out RAJAMIIP from 2005 to 2015.
(4) Other Donors’ Activities
The World Bank has been active for many years with projects to restore irrigation
facilities, support in farming capacity building, and reform of the irrigation and water
resource sector through the Rajasthan Water Sector Restructuring Project. Moreover,through the Rajasthan Agriculture Competitiveness Project, activities are being carriedout to efficiently manage water resources, increase agricultural productivity, support theestablishment of agribusiness plans, and carry out business matching, for example.
The target irrigation areas of that project differ from those of this Project, and so there isno overlap.

(5) Necessity of the ProjectThis Project is congruent with the development tasks and policies of the Indian
government and Japan’s and JICA’s assistance policies and may help achieve SDG 2
to achieve food security and promote sustainable agriculture and SDG 5 to achieve
gender equality and empower all women and girls. It is therefore strongly necessary for
JICA to assist in the implementation of this project.
3. Project Description(1) Project Objective
The project will rehabilitate deteriorating irrigation facilities and provide agricultural
technical support based on the needs of domestic market with consideration forparticipation of both male and female farmers to improve water use efficiency andagricultural productivity, thereby improving farmers’ livelihoods and promoting gendermainstreaming in the agriculture and irrigation sectors in Rajasthan State.
(2) Project Site/Target Area
The target is 27 of the 33 districts in Rajasthan, excluding the 6 in desert areas.
(3) Overview of Project1) Upgrade participation-based irrigation facilities
2) Capacity building of water user associations
3) Farming support (diversification of crops cultivated and marketing)4) Gender mainstreaming in the farming and irrigation sector (e.g. formation ofwomen’s sub-committees in water user associations, assistance from Self HelpGroups)5) Strengthening of implementation system
6) Consulting services (e.g. construction supervision, procurement support, technicaladvice)(4) Project Cost
35,468 million yen (Loan amount: 29,763 million yen)
(5) Project Implementation Schedule
March 2017 to March 2025 (97 months in total). The Project is complete with thecompletion of all activities, including consulting services (March 2025).
(6) Project Implementation Structure1) Borrower: The President of India
2) Executing Agency: Water Resources Department, Government of Rajasthan3) Operation and Maintenance System:
Responsibility for the operation, maintenance, and management of irrigation facilities
and adjoining facilities restored in this Project shall be borne by the water userassociation after restoration. For that reason, technical workshops related tomaintenance and management and support in formulating maintenance andmanagement plans are carried out for the water user associations to strengthen theircapacity. In addition, the water user association support task office within the ProjectManagement Unit (PMU) for NGOs and Executing Agencies provides support for thewater user association during the Project period and the same task office will continue
to provide such support after the completion of Project after being reorganized into a
department in charge of association support within the Water Resources Department.
Costs for maintenance and management of irrigation facilities are covered by 50% of
the irrigation use levies collected that are returned to the water user association by thestate government for operation, maintenance, and management expenses, and costs
for large-scale repairs following a natural disaster or other incident that cannot becovered by the water user association shall be borne by the Water Resources
Department.
(7) Environmental and Social Considerations/Poverty Reduction/Social Development
1) Environmental and Social Considerations① Category: B② Reason for Categorization: This project does not correspond to a sector orcharacteristics that easily have an impact or areas that are easily impacted
listed in the JICA Guidelines for Environmental and Social Considerations (putinto effect in April 2010) and has therefore been deemed not to have asignificant negative effect on the environment.
③ Environmental permissions: Indian law requires the creation of environmental
impact assessment (EIA) reports pertaining to sub-projects to restore existing
irrigation facilities that are targeted in this Project.
④ Pollution control measures: Emission standards and environmental standards
for India shall be met for air quality, water quality, noise and vibrations during
construction by isolating sprinkling water, materials, machinery, and fuel fromrunning water and restricting construction hours and for water quality following
the start of operation by conducting maintenance on irrigation channels.
⑤ Natural environment: Target sites for the Project do not correspond to nationalparks or other areas that are easily impacted or nearby areas, and negative
effects on the natural environment are expected to be minimal.
⑥ Social environment: At this Project involves restoring existing irrigation facilities,
no new land acquisition or involuntary resettlement is required. There may beforest dwellers in the target sites for this Project. Sub-projects where forest
dwellers have been confirmed shall be given proper considerations by creatinga plan for indigenous people based on the indigenous person framework
created for this Project.
⑦ Other/Monitoring: Contractors and Sub-PMUs established on a district level are
primarily the ones in charge of monitoring air quality, water quality, noise, andvibrations during construction, and state-level PMUs are primarily the ones incharge of monitoring water quality, soil contamination, and effects on aboriginal
people after the start of operation.

2) Promotion of Poverty Reduction
Many minor and small-scale farmers carry out irrigation farming in the target areas
for irrigation restoration in this Project, and activities to support their farming efforts arebeing carried out through this Project, thereby improving their livelihood.
3) Promotion of Social Development:
Traditionally, land ownership was not recognized for women and they could notparticipate in water user association activities. However, with revision of the law being
carried out alongside the Project, spouses of landowners can now qualify as membersof the association, and one female association member is scheduled to be selected tobe part of the executive committee. In this Project, to encourage participation by female
farmers in associations that became possible with the revision of the law, a women’s
sub-committee was established within the water user association with support fromNGOs, and an environment where female association members can work easily isbeing developed. Also, participation by women in decision-making processes in wateruser associations is being encouraged through these types of activities in an effort
towards gender mainstreaming in the irrigation sector. In addition, as an entry point toactivities by the women’s sub-committee, facilities that incorporate genderconsiderations will be designed and constructed based on the needs of the women’ssub-committee as one part of the irrigation facility restoration construction work,
thereby developing female farmers’ ownership of irrigation facilities. Moreover,farming-related technical support and nutrition improvement workshops will be
provided to Self Help Groups established by female farmers separately from theassociation.
(8) Collaboration with Other Donors: None in particular.

4. Targeted Outcomes(1) Quantitative Effects
1) Outcomes (operation and effect indicators)
Indicators*1

Target (2027)
Baseline[2 years after project(Recorded in 2017)
completion]

Irrigation area served (ha)-360,000*2

Irrigation use levy collection rate (%)*360

Production output per major crop (t/year)*3*3Per unit yield per major crop (t/ha)*3*3Gross agricultural income per household(rupees/year/household)*3*3

Ratio of women in the Irrigation Association
Executive Committee (%)*325*1 In addition to the above indicators, irrigation efficiency (water use efficiency) and farming areas by major crop will also be monitored as reference
values. Although irrigation efficiency is the main purpose of this Project, it will only be used as a reference value due to the great difficulty of precise
measurement. In addition to reports from the Executing Agencies, qualitative checks must also be carried out during ex-post evaluation. Main crops
are expected to be wheat, barley, corn, chickpeas, and rape plants.
*2 Total planned irrigation area in which all channels from main channels to branches are being repaired and efficient water use made possible.
*3 Baseline surveys will be carried out and finalized by water user associations sampled after the start of the Project with assistance from project
supervision consultants.

(2) Qualitative Effects E.g. establishment and development of water user associations
and farmer groups, greater voice of women in water user associations and increased
participation in meetings, better nutrition (women and children), greater understanding
and awareness with regards to gender of farmers and of farming work, response toclimate change.
(3) Internal Rate of Return
Based on the following preconditions, the economic internal rate of return (EIRR) of theProject is 13.2%. As making profit was not the purpose of this Project, the financial rateof return (FIRR) was not calculated.
[EIRR]
・ Cost: Project cost (excluding tax), O&M cost・ Benefits: Increase in output of major crops due to increase in cultivation acreageand per unit yield・ Project Life: 30 years
5. External Factors and Risk Control
Political and economic deterioration as well as natural disasters in India and the areasurrounding the project sites.

6. Lessons Learned from Past Projects and Application to this Project(1) Lessons Learned from Past Projects
We learned in ex-post monitoring for India’s Upper Kolab Irrigation Project (ODAloan) that support for non-construction activities should be carried out from early stages
for irrigation projects, as a suitable period of time is required until the regularly planned
form of utilization is fully established, including knowledge in beneficiaries andunderstanding about the activities of the water user association. As for lessons fromother irrigation projects in India, for projects with many sub-projects spread out over awide area, it is difficult for district-level PMUs alone to carry out adjustments for support
for non-construction activities of the spread out sub-projects such as construction
supervision and farming support. To prevent delays in the project, we learned that it isnecessary to establish state-level Sub-PMUs and to divide the project into stages andcarry it out incrementally.
(2) Use of Lessons for the ProjectAn aim of this Project was to achieve project continuity, and the project is connectedto the progress of civil engineering work in each sub-project, capacity building of wateruser associations, and farming support activities. In addition, the Project area will beseparated into five areas with a Sub-PMU designated for each, and the activities of
those Sub-PMUS will be divided into three groups for stepwise implementation andmonitoring.
7. Plan for Future Evaluation(1) Indicators to be Used
1) Irrigation area served (ha)2) Irrigation use levy collection rate (%)3) Production output per major crop (t/year)
4) Per unit yield per major crop (t/ha)5) Gross agricultural income per household (rupees/year/household)6) Ratio of women in the Irrigation Association Executive Committee (%)7) Economic internal rate of return (EIRR) (%)(2) Timing of the next evaluation
Two years after project completion.
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